Slide 1: First six months 2018
First six months 2018 August 17, 2018
Slide 2: The NNIT Presenting Team
The NNIT Presenting Team Per Ove Kogut Chief Executive Officer Carsten Krogsgaard Thomsen Chief Financial Officer Klaus Hosbond Skovrup Head of Investor Relations 2
Slide 3: Agenda
Agenda Highlights for first six months 2018 Sales and backlog Financial performance Outlook for 2018 3
Slide 4: Forward looking statements
Forward looking statements This presentation contains forward-looking statements. Words such as ‘believe’, ‘expect’, ‘may’, ‘will’, ‘plan’, ‘strategy’, ‘prospect’, ‘foresee’, ‘estimate’, ‘project’, ‘anticipate’, ‘can’, ‘intend’, ‘outlook’, ‘guidance’, ‘target’ and other words and terms of similar me
Slide 5: Q2 2018 at a glance
Q2 2018 at a glance Revenue Operating profit Operating profit margin DKK 753m DKK 75m 9.9% +8.3% +22% +1.1pp -0.3pp F/X +6.1pp F/X +0.5pp F/X Net profit Order backlog addition Free cash flow DKK 57m DKK 195m DKK -85m +21% -23% DKK +59m 5
Slide 6: First six months 2018 at a glance
First six months 2018 at a glance Revenue Operating profit Operating profit margin DKK 1,451m DKK 135m 9.3% +2.9% -0.6% -0.3pp -0.7pp F/X +4.1pp F/X +0.5pp F/X Net profit Order backlog for 2018 Free cash flow DKK 102m DKK 2,682m DKK 58m -0.3% +0.4% +204% 6
Slide 7: Major wins and GDPR
Major wins Amount Length Contract Segment Client (DKK million) (years) Extension of IT infrastructure collaboration with effect Enterprise Vestas Not disclosed 5 from January 2019 (Press release June 8, 2018) Q2 Extension of IT infrastructure operations contract (see Danish Agency for Public High do
Slide 8: Backlog development, current year
Backlog development, current year Beginning of quarter DKKm +0.4% Backlog for 2018 is DKK 2,682m, which 3,000 (+10) 2,710 2,682 is an increase of 0.4% compared to 2,673 2,487 same time in 2017. 2,500 2,419 2,213 • The Novo Nordisk backlog declined 2,127 with 8.3%, while other customers 2,000 1,556 1
Slide 9: Backlog development, following two calendar years
Backlog development, following two calendar years Beginning of quarter DKKm +1.1% 3,000 (+30) The backlog for 2019 and 2020 2,824 2,712 2,742 increased 1.1% y-o-y to DKK 2,742m. 2,564 2,500 2,324 • Several large outsourcing contracts 2,046 2,129 expire in 2019 and 2020 and are 2,000 1,471 1,595 1,56
Slide 10: Financial statement Q2 and 6M 2018
Financial statement Q2 and 6M 2018 DKK million Q2 2018 Q2 2017 Change 6M 2018 6M 2017 Change Revenue 752.6 695.1 8.3% 1,451.1 1,410.2 2.9% Cost of goods sold 617.5 572.8 7.8% 1,196.7 1,152.4 3.8% Gross profit 135.0 122.3 10.4% 254.4 257.8 -1.3% Gross profit margin 17.9% 17.6% 0.3pp 17.5% 18.3% -0.7p
Slide 11: Segment development
Segment development DKKm Q2 2018 Q2 2017 Change 6M 2018 6M 2017 Change Novo Nordisk Group 278.4 267.2 4.2% 534.5 588.1 -9.1% Other Life Sciences 101.7 97.4 4.5% 201.0 186.0 8.1% Enterprise 206.2 164.5 25.3% 393.4 315.5 24.7% Public 103.9 95.6 8.6% 203.3 181.8 11.8% Finance 62.3 70.4 -11.5% 118.9 138
Slide 12: IT Operation Services
IT Operation Services DKKm Q2 2018 Q2 2017 Change 6M 2018 6M 2017 Change Revenue Novo Nordisk Group 189.2 180.2 5.0% 359.1 405.2 -11.4% Non-Novo Nordisk Group 269.1 260.2 3.4% 524.9 507.9 3.3% Total 458.3 440.4 4.1% 884.0 913.1 -3.2% Costs 415.7 396.0 5.0% 809.0 817.8 -1.1% Operating profit 42.7 44.
Slide 13: IT Solution Services
IT Solution Services DKKm Q2 2018 Q2 2017 Change 6M 2018 6M 2017 Change Revenue Novo Nordisk Group 89.2 87.0 2.6% 175.4 182.9 -4.1% Non-Novo Nordisk Group 205.0 167.7 22.2% 391.7 314.2 24.7% Total 294.2 254.7 15.5% 567.1 497.1 14.1% Costs 262.3 238.0 10.2% 506.8 456.3 11.1% Operating profit 31.9 16.
Slide 14: Currency development and hedging
Currency development and hedging CNY PHP CZK CNY appreciated in the beginning of CNY/DKK PHP/DKK CZK/DKK 105 16.0 30 Q2 2018 but has depreciated again 15.5 29 100 15.0 95 14.5 14.0 28 versus DKK, whereas USD and PHP 13.5 27 have appreciated and seem to have 90 13.0 12.5 26 found new levels. CZK has
Slide 15: Net Financials
Net Financials Net financials 6M 2018 6M 2017 Change DKKm Net financials for 6M 2018 were DKK - Net loss on Novo Nordisk shares* 0.0 -1.6 1.6 3.5m, which was DKK 3.6m better than Dividends received from Novo Nordisk shares 0.0 0.2 -0.2 6M 2017. Total Novo Nordisk share related items 0.0 -1.4 1.4 Cur
Slide 16: Employee development
Employee development FTEs Number of employees increased by 5.3% +5.3% (+157) to 3,122 FTE end of June 2018. This 3,500 increase was primarily driven by Philippines 3,030 3,101 3,122 (91 FTEs), China (80 FTEs) and Czech 2,965 2,999 3,000 2,868 Republic (30 FTEs) in-line with the long- term offshoring
Slide 17: Balance sheet
Balance sheet Assets Equity and liabilities 6M 2018 6M 2017 6M 2018 6M 2017 DKKm DKKm Intangible assets 209.3 207.8 Share capital 250.0 250.0 Tangible assets 1 924.8 876.2 Treasury shares -4.7 -6.6 Contract assets 168.2 153.1 Retained earnings 684.5 612.6 Deferred tax 59.2 58.7 Other reserves 12.0 7
Slide 18: Cash flows
Cash flows Cash flow 6M 2018 6M 2017 Cash flow from operating activities was DKKm Change DKK 140m, which was DKK 110m lower than 6M Net profit for the period 102.4 102.7 -0.3 2017 due to lower effect from changes in working Reversal of non-cash items 177.5 145.7 31.8 capital primarily due to trade r
Slide 19: Outlook
Outlook 2018 Previous guidance Revenue Constant currencies: 3-6% Constant currencies: 3-6% growth* Reported currencies: 0.3pp lower Reported currencies: 0.3pp lower The expectations for growth in revenue is based on the restated IFRS 15 revenue of DKK 2,851m. Operating Constant currencies: 10-10.5%
Slide 20: Closing remarks
Closing remarks • Revenue growth of 8.3% and an operating profit margin of 9.9% in Q2 2018 partly due to the timing of Easter • Strong growth from particularly the enterprise and international life sciences customer groups • Continued strong performance by SCALES • Maintained revenue growth guidance
Slide 21: Investor contact information
Investor contact information Upcoming events August 22, 2018: Interim dividend ex dividend date August 23, 2018: Interim dividend record date August 24, 2018: Interim dividend payment date October 25, 2018: Interim report for the first nine months of 2018 Investor contact NNIT A/S Østmarken 3A 2860