Slide 1: We Bring Digital Transformation to Life
Together we make a mark in business and society We Bring Digital Transformation to Life Annual Report 2021 NNIT A/S, Oestmarken 3A, DK-2860 Soeborg • CVR no. 21 09 31 06
Slide 2: Table of Contents
Table of Contents Management's Review Financial Statements 2021 The Bigger Picture Our Business Governance Statements The NNIT Group at a Glance 4 Market Trends 19 Corporate Governance 44 Management’s Statement 58 Words from the Chairman of the Board 6 Business Model 21 Risk Management 47 Independen
Slide 3: The Bigger Picture
The Bigger Picture The NNIT Group at a Glance 4 Words from the Chairman of the Board 6 Words from the CEO 8 Commercial Highlights 2021 10 Acquisition: SL Controls 11 Financial Highlights 2021 12 2021 Financial Performance 13 Five-year Performance Highlights 16 Outlook 2022 17 NNIT Annual Report 2021
Slide 4: The NNIT Group at a Glance
The Bigger Picture The NNIT Group at a Glance NNIT is a leading provider of digital transformation services and Making a mark in business and society is part of our DNA and directly linked to solutions to international life sciences companies and for the Danish our aspiration, strategy, and values.
Slide 5: We develop, implement, operate, and advise on digital solutions
The Bigger Picture We develop, implement, operate, and advise on digital solutions across industries in Europe, North America and Asia We trace our origins to the Novo Nordisk Group, and for more than 25 years, we have utilized our deep roots and vast experience in the life sciences industry to spec
Slide 6: Words from the Chairman of the Board
The Bigger Picture Words from the Chairman of the Board 2021 saw NNIT enter the next phase in its development For a couple of years, NNIT has been in transition – on a strategic journey with the goal of improved growth and profitability. In 2021, some progress was made despite outside market pressur
Slide 7: Chairman's letter (continued)
The Bigger Picture To counter this development, NNIT launched sev- to support the future growth of the company, eral initiatives in the second half of 2021, including promote customer centricity even further and the ongoing consolidation of its IO business into a increase financial transparency. ded
Slide 8: Words from the CEO
The Bigger Picture Words from the CEO All sales start with quality in deliveries As our Chairman outlines, 2021 was a mixed year, we must find ways to better balance less profitable quality in NNIT’s deliveries – as further evidenced with some positives and some negatives. As men- contracts with mor
Slide 9: CEO letter (continued)
The Bigger Picture I approach 2022 with great positivity, confident in Sustainalytics® low risk score of 13.3 compared to the measures we have implemented throughout 17.1 in 2020. the second half of 2021. Nevertheless, I feel we could do more across all Making a mark on business and society of our f
Slide 10: Commercial Highlights 2021
The Bigger Picture Commercial Highlights 2021 JANUARY / ACKNOWLEDGEMENT FEBRUARY / CONTRACT MAY / NEW CEO JULY / ACQUISITION NNIT and SCALES win two awards NNIT and SCALES initiate New CEO to drive NNIT’s contin- NNIT further strengthens its at Microsoft Partner Awards 2021 a contract with Norlys ue
Slide 11: Acquisition: SL Controls
The Bigger Picture ACQUISITION SL Controls – an NNIT Group Company On July 5, 2021, the NNIT Group and Ireland- and system support, and has strong relation- based SL Controls agreed to join forces to ships with some of the largest pharmaceutical further strengthen NNIT’s Production IT offer- and med
Slide 12: Financial Highlights 2021
The Bigger Picture Financial Highlights 2021 Growth in Life Sciences Operating profit margin Financial strength Free cash flow International Before special items Net debt to EBITDA ratio DKK million 56% 4.9% 2.0 34 Revenue Average number of employees DKK million Full-time 3,007 3,058 2,877 3,237 2,8
Slide 13: 2021 Financial Performance
The Bigger Picture 2021 Financial Performance Revenue increase of 1.7% to DKK 2,877 million and an operating profit margin before special items of 4.9% in 2021. NNIT concluded 2021 in-line with the financial Gross profit, costs and operating profit Net financials and tax an increase of 46.5pp compar
Slide 14: Life Sciences International
The Bigger Picture Life Sciences International activities in mainly the Public segment. The acquisition of SL Controls, payment of holiday countered by a decrease in lease assets and Revenue from Life Sciences International increased COVID-19 situation continued to impact perfor- funds to Feriefonde
Slide 15: Equity, backlog and events after balance sheet date
The Bigger Picture At December 31, 2021 equity amounted to DKK hold more than at least 33% of the issued share Group declined by 7.6%, mainly due to the renego- Events after the balance sheet date 1,142 million which is a increase of DKK 8 million capital. tiated infrastructure agreement in 2021. Th
Slide 16: Five-Year Performance Highlights
The Bigger Picture Five-Year Performance Highlights 2020 2020 DKK million 2021 2020 2019 2018 2017 -2021 DKK million 2021 2020 2019 2018 2017 -2021 Financial performance Financial ratios Revenue: Change Revenue growth 1.7% -7.5% 1.7% 5.5% 3.1% 9.2pp Novo Nordisk Group 605 732 955 1,124 1,185 -17.3%
Slide 17: Outlook 2022
The Bigger Picture Outlook 2022 In 2022, growth is expected to return driven by Life Summary of current expectations Currency sensitivities Sciences International and continued traction in Current Estimated annual impact on NNIT’s operating profit of a 10% Hedging period Winning Solutions. The backl
Slide 18: Our Business
Market Trends 19 Business Model 21 Our Strategy 22 Our Organization 25 The Industries and Customers We Serve 26 Customer Experience 27 Case story: From Spreadsheet to Batch Release Dashboard in just six weeks 28 Our The NNIT Team 29 Our People Highlights 33 Our Responsibility 34 Business Update on E
Slide 19: Market Trends
Our Business Market Trends Accelerated digital NNIT’s focused strategy is strongly aligned with key market trends. transformation in NNIT’s core industries Sustainability Digital trust and cybersecurity Digital leaders have an important enabling role in enter- With the increase in remote work and th
Slide 20: Key market trends
Our Business Key market trends You can read more about the NNIT Expectation Barometer and key market trends on www.nnit.com New ways of working Next generation cloud computing Skills shortage With COVID-19 lockdown restrictions being eased, organi- The proportion of enterprise IT spending on public
Slide 21: Business Model
Our Business Business Model CORE BUSINESS RESOURCES ADVISE VALUE CREATION Deep understanding of digital solutions and business Aspiration, Strategy Digital Transformation & Culture CUSTOMER Job Creation & Financial Strength Competence Building SUPPORT BUILD Brand & Relations Offer a broad Develop and
Slide 22: Our Strategy
Our Business Our Strategy Strong focus on our customers, Winning Solutions and a strong heritage are key elements in the NNIT strategy for the coming period. During 2021, we took steps to further improve our Strategy highlights: strategy. The cornerstones remain focus on our • Customer focus is the
Slide 23: Value Creation
Our Business Value Creation Customer Centricity Proven concept Fit for purpose First time right Winning Customers need a fast and Customers need to-the- Customers expect a Solutions safe implementation with point solutions, without solution that remedies less risk of delay or redun- any unnecessary
Slide 24: Our Solutions
Our Business Clinical Our Solutions Accelerate your clinical Quality transformational To enable fast value creation progress with emerging Management and drive digital transformation, technologies. Gain a competitive edge with our intelligent Quality our customers can choose any Management solutions
Slide 25: Our Organization
Our Business Our Organization New and optimized business unit structure implemented to increase focus on NNIT's unique position and solutions, while improving financial transparency. At the end of 2021, with reporting effect from Janu- The unit structure will be supplemented by incen- ary 1, 2022, N
Slide 26: The Industries and Customers We Serve
Our Business The Industries and Customers We Serve Our customers around the world are ambitious organizations focused on driving sustainable business change and results. To that end, NNIT makes a mark by successfully delivering a broad range of solutions to enable our customers to reap the benefits
Slide 27: Customer Experience
Our Business Customer Experience The true demonstration of our success is when our customers are happy and stay with us. This is how we can succeed in a world of increased opportunity and competition. A common denominator for all NNIT’s customers In addition to the Customer Feedback Program, is the
Slide 28: From Spreadsheet to Batch Release Dashboard in Just Six Weeks
Our Business CASE STORY From Spreadsheet to Batch Release Dashboard in Just Six Weeks In just six weeks, NNIT designed and implemented a new batch release dashboard for the healthcare manufacturer Lonza. It reduces Lonza’s daily batch release management tasks from several hours to a few minutes. A r
Slide 29: The NNIT Team
Our Business The NNIT Team IT starts, runs and ends with people. NNIT people are highly specialized and motivated, collaborating across borders and time zones to serve our customers. While IT and digital tools can be used to develop We also set personal targets for our development. and improve busin
Slide 30: NNIT People Making a Mark across the Globe
Our Business NNIT People Making a Mark across the Globe “As part of driving the system validation effort for “This past year, I’ve had the privilege of leading a Veeva Safety Vault for one of our customers, I adopted team of eight young professionals in NNIT to start up a Cell an even-keeled approac
Slide 31: Diversity & Inclusion
Our Business Diversity & Inclusion We believe that embracing diversity and having an inclusive work environment create the best prerequisites for our employees to make a mark through their contributions at work. In 2021, we increased focus on being a diverse and one experiences discrimination of any
Slide 32: Graduate Programs
Our Business Graduate Programs NNIT has a long history of welcoming young talents to develop through our graduate programs. 2021 was no different, as we added more than 30 graduates to our workforce. “Being a Graduate in NNIT meant that Part of our sustainable business conduct is name some of the ar
Slide 33: Our People Highlights
Our Business Our People Highlights Nationalities Number of employees Gender distribution Number of certificates Promotions at year-end in NNIT held by employees +60 3,130 F 32% M 68% 4,871 13,2% Employee turnover Overview of employees' education Employee satisfaction score % % Target: 4.0 (Scale 1-5
Slide 34: Our Responsibility
Our Business Our Responsibility To us, contributing to a more sustainable future is an essential part of good IT and business practice. In 2021, we continued to operate responsibly, seeking to make a more positive mark on our surroundings. In 2021, we saw increased focus on sustainability In 2022, w
Slide 35: Our Commitment to the UN Sustainable Development Goals
Our Business Our Commitment to the UN Sustainable Development Goals In 2021, we further increased our focus on contributing to the UN Sustainable Development Goals. Our Corporate Responsibility Policy is closely linked to the UN Sustainable Development Goals (SDGs). We have identified four SDGs wher
Slide 36: 2021 SDG Milestones
Our Business 2021 SDG Milestones “I'm happy to get the opportunity to inspire young people and demystify the perception of what a tech geek works with. It's not easy choosing your educational direction, and many young people believe they make a choice for the rest of their life. I'd like to Guiding
Slide 37: Focusing on supporting our customers' sustainability journey
Our Business Focusing on supporting our A sustainable IT industry Our CO2 emissions Handling e-waste customers’ sustainability The IT industry continues to be a big contribu- During the year, we made an effort to collect data As an IT company, the required quality standard journey tor to the world s
Slide 38: Our Footprint
Our Business Our Footprint In 2021, we began measuring and reporting on our greenhouse gas emissions on a global scale. We analyze our emissions based on the inter- Our emissions our data centers and offices in Denmark. In effect, Location-based tCO2e emissions national standard the Greenhouse Gas P
Slide 39: Update on ESG
Our Business Update on ESG In 2021, we enhanced our work with ESG reporting and are now audited annually by Morningstar company Sustainalytics with the objective of continuously improving the way we operate and impact our surroundings. With a score of 13.3, NNIT is rated as a low-risk company. NNIT
Slide 40: EU Sustainability Taxonomy
Our Business EU Sustainability Taxonomy Starting in 2021, NNIT has adopted the EU taxonomy to contribute to transparency on sustainable economic business activities. The European Green Deal and EU taxonomy data hosting in own data centers as taxonomy The EU Commission has adopted the European eligib
Slide 41: Equity Story
Our Business Equity Story >20% historical organic revenue growth outside Denmark Successful acquisition Previous three years’ Strong employer brand Top three Danish track record performance in Life Sciences NNIT was named the most attractive IT market leader International. Based on average workplace
Slide 42: The Promising Potential of Mixed Reality
Our Business CASE STORY The Promising Potential of Mixed Reality Mixed Reality has already proven to bring signifi- cant value to a wide range of industries, compa- nies, and consumers. However, 2021proved in many ways to be a groundbreaking year for Mixed Reality. The continued COVID-19 pandemic ma
Slide 43: Governance
Corporate Governance 44 Risk Management 47 Remuneration50 Governance Shareholder Information 51 Board of Directors 53 Group Management 56 NNIT Annual Report 2021 43
Slide 44: Corporate Governance
Governance Corporate Governance The Board of Directors of NNIT has a continued focus on good governance practices. NNIT is in full compliance with suggested recommendations except for a separate nomination committee, the role of which is handled by the Chairmanship. Governance structure independent
Slide 45: Corporate governance documentation
Governance At the March 2021 Annual General Meeting, the Remuneration Committee conducted three meet- Diversity shareholders re-elected the chairman, Carsten ings. All members of the Remuneration Committee Pursuant to section 99 b of the Danish Financial Corporate governance Dilling, independent, an
Slide 46: Risk management and control activities
Governance them. In that regard, NNIT considers whether Compliance with corporate governance the use of personal information can be justified, recommendations and that processing is compatible with what can As a publicly listed company, NNIT is subject to the be expected in a free and democratic soc
Slide 47: Risk Management
Governance Risk Management Operating in a highly competitive and rapidly changing global marketplace, a structured approach to risk management that is applied consistently across the organization is essential for profitable growth. In NNIT, risk management consists of four ele- submitted to Group Ma
Slide 48: Service level agreement profitability under pressure; Innovative services
Governance Service level agreement Innovative services Business with the profitability under pressure Novo Nordisk Group Risk description: Risk description: Risk description: SLA revenue constitutes around half of NNIT's total revenue. In order to grow NNIT’s business in general and grow business In
Slide 49: Legal risks, Cybersecurity, Attracting and retaining talent
Governance Legal risks, contract management Cybersecurity Attracting and retaining and data ethics/GDPR policies required talent Risk description: Risk description: Risk description: Protecting NNIT’s long-term business interests is vital to its contin- Cybersecurity remains one of NNIT’s top risks.
Slide 50: Remuneration
Governance Remuneration NNIT has adopted a Remuneration Policy covering and the updated Remuneration Policy was put compensating for the fact that a major contributor Executive Management and the Board of Directors. forward at the Annual General Meeting in March to the overall remuneration will ceas
Slide 51: Shareholder Information
Governance Shareholder Information NNIT shares were priced at DKK 114,80 per share Share capital and ownership • Novo Holdings A/S, Gentofte, Denmark 33.50% Treasury shares at December 31, 2021, for a market capitalization NNIT’s share capital amounts to DKK 250,000,000 directly and 51.00% through i
Slide 52: Shareholder overview
Governance Shareholder overview Due to low leverage and negative cash flow genera- Communication with shareholders NNIT Investor Relations contact information: % tion, the Board of Directors intends to propose to NNIT aims to give investors the best possible in- Pernille Fabricius 3.2% 0.1% 2.7% the
Slide 53: Board of Directors
Governance Board of Directors Carsten Dilling Peter Haahr Anne Broeng Chairman of the Board Deputy Chairman of the Board Chairman of the Audit committee Member of the Remuneration Member of the Remuneration Committee Committee Personal and educational background Personal and educational background P
Slide 54: Board of Directors (continued)
Governance Christian Kanstrup Anders Vidstrup Camilla Krabbe Member of the Audit Committee Employee-elected Kongsted Christensen representative Employee-elected representative Personal and educational background Personal and educational background Personal and educational background Born 1972. Danis
Slide 55: Board of Directors (continued)
Governance Eivind Kolding Caroline Serfass Trine Io Bjerregaard Chairman of the Board Member Employee-elected Remuneration Committee representative Member of the Audit Committee Personal and educational background Personal and educational background Personal and educational background Born 1959. Dan
Slide 56: Group Management
Governance Group Management Niels Svenningsen Brit Kannegaard Pernille Fabricius Pär Fors Kasper Søndergaard Ricco Larsen Johannessen Andersen Senior Vice President, Senior Vice President, People, Executive Vice President and President and CEO, Member of Senior Vice President, Cloud & Senior Vice Pr
Slide 57: Financial Statements 2021
Financial Financial Statements 2021 Management’s Statement 58 Independent Auditor’s Report 59 Consolidated Financial Statements 63 Statements 2021 Parent Company Financial Statements 102 Location / Addresses of NNIT’s offices globally 115 NNIT Annual Report 2021 57
Slide 58: Management's Statement
Financial Statements 2021 Management's Statement The Board of Directors and the Executive Manage- December 31, 2021 and of the results of the Soeborg, January 28, 2022 ment (the “Management”) have today discussed Group’s and Parent Company’s operations and and approved the annual report of NNIT A/S
Slide 59: Independent Auditor's Reports
Financial Statements 2021 Independent Auditor's Reports To the Shareholders of NNIT A/S Report on the audit of the Financial Statements Our opinion In our opinion, the Consolidated Financial State- Moreover, in our opinion, the Parent Company What we have audited The Parent Company Financial Stateme
Slide 60: Key Audit Matter: Revenue recognition
Financial Statements 2021 Key Audit Matter How our audit addressed the Key Audit Matter Revenue recognition Such re-assessments result in revisions to revenue Our audit procedures in regard of revenue recog- assessment of stage of completion. During the We focused on revenue recognition related to a
Slide 61: Auditor's responsibilities for the Audit of the Financial Statements
Financial Statements 2021 Auditor’s responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance • Evaluate the appropriateness of accounting poli- We communicate with those charged with govern- about whether the Financial Statements as a whole cies us
Slide 62: Report on compliance with the ESEF Regulation
Financial Statements 2021 Report on compliance with the ESEF Regulation As part of our audit of the Financial Statements ESEF Regulation based on the evidence we have we performed procedures to express an opinion obtained, and to issue a report that includes our on whether the annual report of NNIT
Slide 63: Consolidated Financial Statements
Consolidated Financial Statements Consolidated Financial Statements NNIT Annual Report 2021 63
Slide 64: Income Statement and Statement of Comprehensive Income
Consolidated Financial Statements Income Statement Statement of Comprehensive Income for the year ended December 31 for the year ended December 31 DKK million Note 2021 2020 DKK million Note 2021 2020 Revenue 2.1 2,877 2,830 Net profit/(loss) for the year (7) 76 Cost of goods sold 2.2, 2.3, 2.4, 5.1
Slide 65: Balance Sheet
Consolidated Financial Statements Balance Sheet as of December 31 ASSETS EQUITY AND LIABILITIES DKK million Note 2021 2020 DKK million Note 2021 2020 Intangible assets 3.1, 5.5 945 781 Share capital 4.2 250 250 Tangible assets 3.3 483 552 Treasury shares 4.2 (2) (3) Lease assets 4.3 173 227 Retained
Slide 66: Statement of Cash Flows
Consolidated Financial Statements Statement of Cash Flows for the year ended December 31 DKK million Note 2021 2020 The changes in cash flow cannot all be derived Net profit for the year (7) 76 directly from the income statement and balance sheet. Reversal of non-cash items 5.3 335 228 Interest paid
Slide 67: Statement of Changes in Equity 2021
Consolidated Financial Statements Statement of Changes in Equity as of December 31 . DKK million Other reserves Exchange Total Share Treasury Retained rate Cash flow other Proposed 2021 Note capital shares earnings adjustments hedges Tax reserves dividends Total Balance at the beginning of the year
Slide 68: Statement of Changes in Equity 2020
Consolidated Financial Statements Statement of Changes in Equity as of December 31 DKK million Other reserves Exchange Total Share Treasury Retained rate Cash flow other Proposed 2020 Note capital shares earnings adjustments hedges Tax reserves dividends Total Balance at the beginning of the year 25
Slide 69: Notes to the Consolidated Financial Statements
Consolidated Financial Statements Notes to the Consolidated Financial Statements 1. Basis of preparation 3. Operating assets and liabilities 5. Other disclosures 1.1 Summary of significant accounting policies 70 3.1 Intangible assets 81 5.1 Long-term incentives 96 1.2 Summary of key accounting estim
Slide 70: 1. Basis of preparation
Consolidated Financial Statements 1. Basis of preparation 1.1 Summary of significant accounting policies The consolidated financial statements are prepared NNIT has two different types of businesses – 'projects' Service Level Agreements (SLA) Transformation in accordance with International Financial
Slide 71: 1.1 Summary of significant accounting policies – continued
Consolidated Financial Statements 1.1 Summary of significant accounting policies – continued 1.3 Changes in accounting policies, estimates and disclosures tion adjustment under financial income or financial forecasted transaction is ultimately recognized in the Adoption of new or amended IFRSs oped
Slide 72: 1.4 General accounting policies
Consolidated Financial Statements 1.4 General accounting policies Principles of consolidation If the initial accounting for business combination can balance sheet date are translated at the exchange rate ties and are non-recurring of nature. Such costs and be determined only preliminary by the end o
Slide 73: 1.4 General accounting policies – continued
Consolidated Financial Statements 1.4 General accounting policies – continued tlement of the deferred tax liability. Any changes to other costs that can be directly attributed to NNIT the building and are depreciated over the period until are leases with a term of 12 months or less. Low-value deferr
Slide 74: 1.4 General accounting policies – continued
Consolidated Financial Statements 1.4 General accounting policies – continued Equity of plan assets by applying the projected unit credit settled arrangement and will be charged to the income Cash flow from operating activities Treasury shares method. Plan assets, if any, are measured at fair statem
Slide 75: 1.5 Financial definitions
Consolidated Financial Statements 1.5 Financial definitions Operating profit margin = Operating profit x 100 Non-IFRS financial measures Revenue In the Annual Report, NNIT discloses certain finan- Backlog Gross profit margin = Gross profit x 100 cial measures of the Group's financial performance, Th
Slide 76: 2. Results for the year
Consolidated Financial Statements 2. Results for the year 2.1 Segment information NNIT delivers services and solutions through two business units, Life sciences and Private & Public, each respon- sible for delivering a number of services to customers. The Life sciences business unit delivers to both
Slide 77: 2.2 Employee costs
Consolidated Financial Statements 2.2 Employee costs 2.2 Employee costs – continued DKK million 2021 2020 Group Management's remuneration and share-based payment 2021 Employee costs comprise: Other Wages and salaries 1,711 1,563 members of Share-based payments 8 14 Executive Group Pensions - defined
Slide 78: 2.2 Employee costs – continued; 2.3 Development costs
Consolidated Financial Statements 2.2 Employee costs – continued 2.3 Development costs Short-term incentive program (STIP) DKK million 2021 2020 Group Management and certain other employees participate in a STIP program, which entitles each participant to receive an annual performance-based cash bon
Slide 79: 2.5 Special items; 2.6 Income taxes
Consolidated Financial Statements 2.5 Special items 2.6 Income taxes DKK million 2021 2020 DKK million 2021 2020 Special items relates to: Current tax 8 33 Impairment of assets 56 - Deferred tax (17) (10) Redundancy cost related to Group Management 25 1 Adjustments recognized for current tax of prio
Slide 80: 2.6 Income taxes – continued
Consolidated Financial Statements 2.6 Income taxes – continued Deferred taxes Lease receivables Share Intangible Tangible Current and based Cash DKK million assets assets assets liabilities programs flow hedges Provisions Total 2021 Deferred tax asset At the beginning of the year (19) 52 (44) 8 (3)
Slide 81: 3. Operating assets and liabilities
Consolidated Financial Statements 3. Operating assets and liabilities 3.1 Intangible assets IT Other IT development intangible development projects under DKK million Goodwill assets projects construction 2021 2021 Cost at the beginning of the year 690 33 95 62 880 Additions 120 1 7 27 155 Transfer -
Slide 82: 3.1 Intangible assets – continued
Consolidated Financial Statements 3.1 Intangible assets – continued IT Other IT development intangible development projects under DKK million Goodwill assets projects construction 2020 2020 Cost at the beginning of the year 448 34 105 28 615 Additions from business combinations 266 2 - - 268 Additio
Slide 83: 3.2 Impairment test
Consolidated Financial Statements 3.2 Impairment test A sensitivity analysis has not been carried out, as negative changes in the fundamental assumption Goodwill that will result in impairment of goodwill, are considered unlikely to become a reality. The carrying amount of goodwill is impairment tes
Slide 84: 3.3 Tangible assets
Consolidated Financial Statements 3.3 Tangible assets Payments on account and Land and Other Leasehold assets under DKK million buildings equipment improvements construction 2021 2021 Cost at the beginning of the year 386 734 55 26 1,201 Additions 4 33 4 6 47 Disposals - (99) - (1) (100) Transfer -
Slide 85: 3.3 Tangible assets – continued
Consolidated Financial Statements 3.3 Tangible assets – continued Payments on account and Land and Other Leasehold assets under DKK million buildings equipment improvements construction 2020 2020 Cost at the beginning of the year 373 781 55 46 1,255 Additions 13 56 - 26 95 Disposals - (148) - - (148
Slide 86: 3.4 Contract balances
Consolidated Financial Statements 3.4 Contract balances Transition cost relates to capitalized cost incurred for preparatory projects in relation to transition or set-up Contract assets and liabilities activities required to enable delivery of the service. The cost will be amortized over the operati
Slide 87: 3.5 Deposits; 3.6 Trade receivables
Consolidated Financial Statements 3.5 Deposits 3.6 Trade receivables – continued DKK million 2021 2020 DKK million 2021 2020 Cost at the beginning of the year 33 34 Aging of non-impaired trade receivables: Additions 1 - Non-invoiced trade receivables 238 136 Disposal - (1) Not due at balance sheet d
Slide 88: 3.7 Employee benefit obligations; 3.8 Contingent consideration
Consolidated Financial Statements 3.7 Employee benefit obligations 3.7 Employee benefit obligations – continued Defined benefit pension obligations 2021 2020 DKK million Pension liability Plan asset Net liability Assumptions used for valuation1 Discount rate 0.61% 0.37% 2021 Price inflation 0.91% 0.
Slide 89: 3.8 Contingent consideration; 3.9 Provisions
Consolidated Financial Statements 3.8 Contingent consideration – continued 3.8 Contingent consideration – continued The contingent consideration is reassessed at least once a year in connection with the approval of the budgets SL Controls for the coming year. Overperformance compared to the targets
Slide 90: 4. Capital structure and financing items
Consolidated Financial Statements 4. Capital structure and financing items 4.1 Financial income and expenses 4.2 Share capital, distribution to shareholder and earnings per share – continued DKK million 2021 2020 Earnings per share and diluted earnings per share are calculated in accordance with IAS
Slide 91: 4.3 Leases
Consolidated Financial Statements 4.3 Leases 4.3 Leases – continued Lease assets Lease liabilities Rental of IT- Company Lease liabilities expiring within the following periods from the balance sheet date: DKK million premises equipment cars 2021 2021 DKK million 2021 2020 Costs at the beginning of
Slide 92: 4.4 Financial assets and liabilities
Consolidated Financial Statements 4.4 Financial assets and liabilities Depending on the purpose of each asset and liability, NNIT classifies these into the following categories: • Cash and cash equivalents • Cash flow hedging instruments at fair value • Financial assets at amortized cost • Financial
Slide 93: 4.4 Financial assets and liabilities – continued
Consolidated Financial Statements 4.4 Financial assets and liabilities – continued 4.4 Financial assets and liabilities – continued Financial liabilities Financial liabilities Bank Lease Long-term at fair value through measured at DKK million overdraft1 liability loan Total DKK million Profit and lo
Slide 94: 4.4 Financial assets and liabilities – continued
Consolidated Financial Statements 4.4 Financial assets and liabilities – continued 4.4 Financial assets and liabilities – continued Fair value measurement hierarchy As of December 31, 2021 NNIT A/S' net balance position (trade receivables minus trade payables) divided on Financial assets and liabili
Slide 95: 4.4 Financial assets and liabilities – continued
Consolidated Financial Statements 4.4 Financial assets and liabilities – continued 4.4 Financial assets and liabilities – continued As of December 31, 2021 NNIT A/S' hedge contracts covered the period from January 2022 to November 2022. Capital management Taking into account contracts affecting othe
Slide 96: 5. Other disclosures
Consolidated Financial Statements 5. Other disclosures 5.1 Long-term incentives Long-term share-based incentive program Group Management and the Vice Presidents are included in a long-term share-based incentive program. For more information regarding the long-term share-based incentive program, plea
Slide 97: 5.2 Fee to statutory auditors; 5.4 Cash flow specifications
Consolidated Financial Statements 5.2 Fee to statutory auditors 5.4 Statement of cash flows - specifications DKK million 2021 2020 DKK million 2021 2020 Statutory audit 2.2 1.9 Changes in working capital Audit-related services 0.1 0.2 Increase/(decrease) in current receivables less tax receivables (
Slide 98: 5.5 Acquisition of subsidiaries
Consolidated Financial Statements 5.5 Acquisition of subsidiaries The fair value of net assets acquired and goodwill at the date of acquisition is Acquisitions during 2021 summarized below: On July 5, 2021, NNIT acquired full ownership and control of SL Controls (SLC), a company focusing on Life Sci
Slide 99: 5.6 Contingent liabilities; 5.7 Related party transactions
Consolidated Financial Statements 5.6 Contingent liabilities, other contractual obligations and legal proceedings 5.7 Related party transactions and ownership Ownership NNIT has entered into short-term and low-value lease agreement for printers, coffee makers, watercoolers and NNIT A/S is controlled
Slide 100: 5.7 Related party transactions and ownership – continued
Consolidated Financial Statements 5.7 Related party transactions and ownership – continued 5.7 Related party transactions and ownership – continued DKK million 2021 2020 Companies in the NNIT Group: Year of Percentage Liabilities to related parties incorporation/ Share of shares Novo Nordisk Group -
Slide 101: Parent Company Financial Statements
Parent Company Financial Statements Parent Company Financial Statements NNIT Annual Report 2021 101
Slide 102: Income Statement
Parent Company Financial Statements Income Statement for the year ended December 31 DKK million Note 2021 2020 Revenue 2,039 2,255 Cost of goods sold 2.1 1,969 2,014 Gross profit 70 241 Sales and marketing costs 2.1 95 127 Administrative expenses 2.1 62 99 Operating profit before special items (87)
Slide 103: Balance Sheet
Parent Company Financial Statements Balance Sheet as of December 31 ASSETS EQUITY AND LIABILITIES DKK million Note 2021 2020 DKK million Note 2021 2020 Intangible assets 3.1 101 89 Share capital 250 250 Tangible assets 3.2 477 548 Retained earnings 515 643 Lease assets 4.3 136 182 Reserve IT-develop
Slide 104: Statement of Changes in Equity 2021
Parent Company Financial Statements Statement of Changes in Equity as of December 31 DKK million Reserve Reserve IT- cash Share Treasury Retained development flow Proposed 2021 capital share earnings projects hedges dividends Total Balance at the beginning of the year 250 (3) 649 69 (3) 25 987 Net p
Slide 105: Statement of Changes in Equity 2020
Parent Company Financial Statements Statement of Changes in Equity as of December 31 DKK million Reserve Reserve IT- cash Share Treasury Retained development flow Proposed 2020 capital share earnings projects hedges dividends Total Balance at the beginning of the year 250 (4) 675 46 7 49 1,023 Net p
Slide 106: Notes to the Parent Company Financial Statements
Parent Company Financial Statements Notes to the Parent Company Financial Statements 1. Basis of preparation 4. Capital structure and financing items 1.1 Accounting policies 108 4.1 Financial income and expenses 112 4.2 Proposed allocation of Net profit for the year 112 4.3 Leases 112 2. Results for
Slide 107: 1. Basis of preparation; 2. Results for the year
Parent Company Financial Statements 1. Basis of preparation 2. Results for the year 1.1 Accounting policies 2.1 Employee cost The parent company financial statements are presented in accordance with The Danish Financial Statements DKK million 2021 2020 Act (class D) and other accounting regulations
Slide 108: 3. Operating assets and liabilities
Parent Company Financial Statements 3. Operating assets and liabilities 3.1 Intangible assets IT development IT development projects under DKK million projects construction 2021 2020 Cost at the beginning of the year 95 62 157 133 Additions 7 27 34 40 Disposals - - - (16) Transfer 62 (62) - - Cost a
Slide 109: 3.2 Tangible assets
Parent Company Financial Statements 3.2 Tangible assets Payments on account and Land and Other Leasehold assets under DKK million buildings equipment improvements construction 2021 2020 Cost at the beginning of the year 386 729 39 26 1,180 1,233 Additions 1 33 4 6 44 94 Disposals - (99) - (1) (100)
Slide 110: 3.3 Financial assets; 3.4 Provisions
Parent Company Financial Statements 3.3 Financial assets 3.4 Provisions Investment in DKK million Deposits subsidiaries 2021 2020 DKK million 2021 2020 Cost Provision for refurbishment obligation (non-current liabilities) Cost at the beginning of the year 26 406 432 390 At the beginning of the year
Slide 111: 4. Capital structure and financing items
Parent Company Financial Statements 4. Capital structure and financing items 4.1 Financial income and expenses 4.3 Leases DKK million 2021 2020 Lease assets Rental of IT- Company Financial income DKK million premises equipment cars 2021 Dividends from subsidaries 52 81 Realized/Unrealized loss on cu
Slide 112: 4.3 Leases; 4.4 Derivative financial instruments
Parent Company Financial Statements 4.3 Leases - continued 4.3 Leases Rental of IT- Company Lease liabilities DKK million premises equipment cars 2020 Lease liabilities expiring within the following periods from the balance sheet date: 2020 DKK million 2021 2020 Costs at the beginning of the year 57
Slide 113: 5. Other disclosures
Parent Company Financial Statements 5. Other disclosures 5.1 Fee to statutory auditors 5.2 Contingent liabilities, other contractual obligations and legal proceedings – continued DKK million 2021 2020 DKK million 2021 2020 Statutory audit 1.7 1.5 Other assurance engagements 0.1 0.1 Other contractual
Slide 114: Design and production: Mindshare
Design and production: Mindshare