Slide 1: First nine months 2018
First nine months 2018
Slide 2: The NNIT Presenting Team
The NNIT Presenting Team PER OVE KOGUT CARSTEN KROGSGAARD KLAUS HOSBOND SKOVRUP Chief Executive Officer THOMSEN Head of Investor Relations Chief Financial Officer 2
Slide 3: Agenda
Agenda 01 Highlights for the first nine months of 2018 02 Sales and backlog 03 Financial performance 04 Outlook for 2018
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: Q3 2018 at a glance
Q3 2018 at a glance Revenue Operating profit Operating profit margin DKK 733m DKK 66m 9.0% +10.8% (5.6%) +135% (8.1%) +4.8pp (0.2pp) +0.1pp F/X +2.5pp F/X +0.1pp F/X Net profit Order backlog addition Free cash flow DKK 48m DKK 164m DKK 58m +109% (-14%) +344% DKK +91m Numbers in (x) are adjusted for
Slide 6: First nine months 2018 at a glance
First nine months 2018 at a glance Revenue Operating profit Operating profit margin DKK 2,184m DKK 201m 9.2% +5.4% +23% +1.3pp -0.5pp F/X +3.9pp F/X +0.3pp F/X Net profit Order backlog for 2018 Free cash flow DKK 151m DKK 2,846m DKK 116m +20% +5.0% n/a 6
Slide 7: Major contracts renewed
Major contracts renewed Amount Length Contract Segment Client (DKK million) (years) Extension and expansion of IT infrastructure Q3 collaboration with effect from January 2019 (Press Finance PFA Around half a billion 5 2018 release October 3, 2018) Q2 Extension of IT infrastructure collaboration wit
Slide 8: Valiance - a successful growth engine
Valiance - a successful growth engine 15 years of 40% annual On the list of US’ Supported experience in the growth over the 5000 fastest largest pharma market past three years growing companies companies 8
Slide 9: Why acquire Valiance?
Why acquire Valiance? Accelerate Scale Strategy NNIT’s international NNIT as a SaaS (i.e. Veeva, NNIT as a leading IT transformation growth journey SpartaSystems etc.) transformation partner to global life sciences partner to life sciences 9
Slide 10: Organizing for Digital Innovation
Organizing for Digital Innovation Stage Gate Approach Partner Approach Business Investigative Onboarding Execution Build & Launch & Phase- development Idea Initiate Analyze Execute Market Out G0 G1 G2 G3 G4 G5 Does the partner meet Where is the max How do we executive to Is it a relevant partner? fo
Slide 11: Backlog development, current year
Backlog development, current year Beginning of quarter DKKm +5.0% (+136) 3,000 2,846 2,673 2,710 2,682 2,419 2,487 2,500 2,127 2,213 2,000 +13.6% 1,556 1,566 1,779 1,659 (+213) 1,378 1,543 1,500 1,157 1,362 1,000 1,117 1,144 -6.7% 500 970 1,041 944 1,024 1,067 851 (-77) 0 Q1-17 Q2-17 Q3-17 Q4-17 Q1-
Slide 12: Backlog development, following two calendar years
Backlog development, following two calendar years Beginning of quarter DKKm +9.8% 3,500 (+278) 3,102 3,000 2,824 2,742 2,712 2,564 2,500 2,324 2,046 2,129 +13.7% 1,814 2,000 1,471 1,595 1,566 (+219) 1,448 1,235 1,500 1,284 1,337 1,000 +4.8% 1,241 1,229 1,089 1,116 1,176 1,288 (+59) 500 792 762 0 Q1-
Slide 13: Financial statement Q3 and 9M 2018
Financial statement Q3 and 9M 2018 DKK million Q3 2018 Q3 2017 Change 9M 2018 9M 2017 Change Revenue 733.2 661.5 10.8% 2,184.3 2,071.7 5.4% Cost of goods sold 611.7 571.0 7.1% 1,808.4 1,723.5 4.9% Gross profit 121.5 90.4 34.4% 375.9 348.2 8.0% Gross profit margin 16.6% 13.7% 2.9pp 17.2% 16.8% 0.4pp
Slide 14: Segment development
Segment development DKKm Q3 2018 Q3 2017 Change 9M 2018 9M 2017 Change Novo Nordisk Group 266.6 278.9 -4.4% 801.1 866.9 -7.6% Other Life Sciences 99.6 93.2 6.9% 300.6 279.2 7.7% Enterprise 198.3 177.5 11.7% 591.7 493.0 20.0% Public 103.3 57.1 80.9% 306.6 238.9 28.4% Finance 65.4 54.8 19.2% 184.2 193
Slide 15: IT Operation Services
IT Operation Services DKKm Q3 2018 Q3 2017 Change 9M 2018 9M 2017 Change Revenue Novo Nordisk Group 181.5 192.6 -5.8% 540.6 597.8 -9.6% Non-Novo Nordisk Group 273.8 245.7 11.4% 798.6 753.6 6.0% Total 455.3 438.3 3.9% 1,339.2 1,351.4 -0.9% Costs 413.9 391.1 5.8% 1,222.9 1,209.0 1.2% Operating profit
Slide 16: IT Solution Services
IT Solution Services DKKm Q3 2018 Q3 2017 Change 9M 2018 9M 2017 Change Revenue Novo Nordisk Group 85.1 86.2 -1.3% 260.5 269.1 -3.2% Non-Novo Nordisk Group 192.9 136.9 40.8% 584.5 451.1 29.6% Total 278.0 223.2 24.6% 845.1 720.2 17.3% Costs 253.3 242.3 4.5% 760.1 698.6 8.8% Operating profit 24.7 -19.
Slide 17: Currency development and hedging
Currency development and hedging CNY/DKK CNY PHP/DKK PHP CZK/DKK CZK 105 16.0 30 15.5 29 100 15.0 14.5 28 CNY continues the depreciating trend versus DKK, 95 14.0 13.5 27 whereas the rest of the key currencies have found 90 13.0 12.5 26 stable levels. 85 12.0 25 11.5 80 11.0 24 We see currency tailw
Slide 18: Net Financials
Net Financials Net financials 9M 2018 9M 2017 Change DKKm Net loss on Novo Nordisk shares* 0.0 0.2 -0.2 Net financials for 9M 2018 were DKK -3.7m, which Dividends received from Novo Nordisk shares 0.0 0.3 -0.3 was an improvement of DKK 3.3m compared to 9M Total Novo Nordisk share related items 0.0 0
Slide 19: Employee development
Employee development FTEs +5.2% Number of employees increased by 5.2% (+156) to 3,155 FTE end of September 2018. This increase 3,500 3,122 3,155 was primarily driven by Philippines (92 FTEs), China 2,999 3,030 3,101 2,868 2,965 (66 FTEs) and Czech Republic (23 FTEs) in-line 3,000 with the long-term
Slide 20: Balance sheet
Balance sheet Assets Equity and liabilities 9M 2018 9M 2017 9M 2018 9M 2017 DKKm DKKm Intangible assets 213.0 207.2 Share capital 250.0 250.0 Tangible assets 928.0 914.9 Treasury shares -4.6 -6.6 Contract assets 120.7 94.9 Retained earnings 737.4 640.7 Deferred tax 53.1 61.9 Other reserves 7.7 5.0 D
Slide 21: Cash flows
Cash flows Cash flow Cash flow from operating activities was DKK 207m, which 9M 2018 9M 2017 DKKm Change was DKK 107m lower than 9M 2017 due to lower effect from Net profit for the period 150.8 125.9 24.9 Reversal of non-cash items 249.0 212.4 36.6 changes in working capital driven by work in progre
Slide 22: Outlook
Outlook 2018 Previous guidance Revenue Constant currencies: 4-7% Constant currencies: 4-7% 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 and includes additional revenue from Val
Slide 23: Closing remarks
Closing remarks • Revenue growth of 11% in Q3 2018, and 5.6% adjusted for the one-off settlement in Q3 2017 • Operating profit margin of 9.0% in Q3 2018 • Strong growth within international life sciences, enterprise, finance and public customer groups • Maintained revenue growth guidance of 4-7% for
Slide 24: Investor contact information
Investor contact information Upcoming events Investor contact November 22, 2018: • Økonomisk Ugebrev Seminar November 28, 2018: • SEB IT seminar December 4, 2018: • Danske Bank Copenhagen Winter Seminar January 8, 2019: KLAUS HOSBOND SKOVRUP Head of Investor Relations • SEB Nordic Seminar January 30