Slide 1: First nine months 2020
First nine months 2020 October 29, 2020
Slide 2: The NNIT Presenting Team
The NNIT Presenting Team PER OVE KOGUT PERNILLE FABRICIUS JENS BINGER Chief Executive Officer Chief Financial Officer Head of Investor Relations & Treasury 2
Slide 3: Agenda
Agenda 01 Highlights for the first nine months of 2020 02 Financial performance and cost restructuring plan 03 Balance sheet and cash flow 04 Outlook for 2020 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: Q3 update
Q3 update • COVID-19 continued to impacted NNIT’s business in Q3 2020. Projects and tenders was postponed to a higher degree than expected • NNIT has handled the COVID-19 situation since February 2020. NNIT has a robust global delivery model and is prepared if or when a second wave should course loc
Slide 6: Q3 2020 at a glance
Q3 2020 at a glance Revenue Operating profit* Operating profit margin* DKK 658m DKK 25m 3.8% -14% -64% -5.2pp -0.6pp F/X +1.2pp F/X +0.2pp F/X Net profit Free cash flow DKK 9m DKK 7m -82% DKK +10m *Before special items 6
Slide 7: First nine month 2020 at a glance
First nine month 2020 at a glance Revenue Operating profit* Operating profit margin* DKK 2,081m DKK 110m 5.3% -7.8% -30% -1.7pp -0.1pp F/X -0.2pp F/X 0.1pp F/X Net profit Free cash flow DKK 58m DKK 184m -53% DKK +254m *Before special items 7
Slide 8: Key contract wins
Key contract wins Amount Length Contract Segment Client (DKK million) (years) Several agreements within winning solutions SAP, New and existing Life Sciences Mid double-digit n.a. Data&AI, Hybrid Cloud and Veeva customers Q3 Copenhagen 2020 Service desk operations and monitoring Enterprise Mid doubl
Slide 9: Financial statement Q3 and 9M 2020
Financial statement Q3 and 9M 2020 • Revenue decreased by 14% in Q3 2020 to DKK DKK million Q3 2020 Q3 2019 Change 9M 2020 9M 2019 Change 658m, mainly impacted by the expected decline Revenue 658.4 763.2 -13.7% 2,081.4 2,256.9 -7.8% from the Novo Nordisk group (-27%) and the Cost of goods sold 578.3
Slide 10: Status on implementation of cost restructuring plan
Status on implementation of cost restructuring plan Cost reductions Accumulated cost reductions DKKm Description of main initiatives Progress Q3 2020 achieved in 2019 2020 2021 Project utilization impacted by - Increase billable utilization by 4pp Utilization 10 55 75 COVID-19 with an effect of - In
Slide 11: Life Sciences
• Total Life Sciences revenue decreased by 8.3% Life Sciences in Q3 2020 compared to the same period last year due to the expected decline from the Novo Nordisk Group (-27%) • Life Science international showed strong growth of 29%. In Q3 2020 the Chinese DKKm Q3 2020 Q3 2019 Change 9M 2020 9M 2019 C
Slide 12: Private & Public
Private & Public • Revenue from Private & Public customers decreased by 19% in Q3 2020 compared to the same period last year DKKm Q3 2020 Q3 2019 Change 9M 2020 9M 2019 Change • Revenue on projects in the private & Enterprise 164.1 211.6 -22.5% 540.3 600.0 -10.0% Public 91.2 98.0 -6.9% 303.0 284.0 6
Slide 13: Net Financials
Net Financials • Net financials in Q3 2020 were negative Net financials Q3 2020 Q3 2019 Change 9M 2020 9M 2019 Change with DKK 9m, which is a decrease of DKKm DKK 16m compared to Q3 2019 Currency hedge gains 1 5 -4 9 16 -7 Currency gains (losses) -7 5 -11 -7 5 -13 Total currency related items -6 9 -
Slide 14: Employee development
Employee development • As a consequence of the cost restructuring program and the loss of business with the Novo Nordisk Group and Pandora the number of employees decreased by 246 FTEs corresponding to -7.5% compared to the same time last year • The decrease was driven by China (-117 FTEs), Denmark
Slide 15: Balance sheet
Balance sheet Equity and liabilities Sep 30, 2020 Sep 30, 2019 Dec 31, 2019 Assets Sep 30, 2020 Sep 30, 2019 Dec 31, 2019 DKK million DKK million Share capital 250 250 250 Treasury shares (3) (4) (4) Intangible assets 519 525 524 Retained earnings 888 839 860 Tangible assets 558 607 576 Other reserv
Slide 16: Cash flows
Cash flows DKK million Q3 2020 Q3 2019 9M 2020 9M 2019 12M 2019 Net profit for the period 9 50 58 125 183 • The free cash flow for Q3 2020 was positive Reversal of non-cash items 78 89 282 256 439 DKK 7m which was DKK 10m above Q3 2019 Interest paid -3 -3 -11 -10 -16 due to lower investments and an
Slide 17: Backlog development, current year
Backlog development, current year Beginning of quarter • At the beginning of Q4 2020, NNIT’s order entry backlog for 2020 amounted to DKK 2,691 million, which was a decrease of 7.9% compared to last year • The backlog from life sciences customers, excluding the Novo Nordisk Group, increased by 23% d
Slide 18: Outlook
Outlook Previous 2020 guidance Constant currencies: -4% to -8% Revenue Around -8% • COVID-19 continues to impact growth Around 0.2pp lower Around 0.2pp higher our business negatively by Reported currencies: delaying project work and Around 6% excl. special tenders and we now expect Constant currenci
Slide 19: Closing remarks
Closing remarks • NNIT’s financial performance for the first nine months of 2020 was below our expectations as project work and tenders has been delayed and postponed to an extend that was not predictable • Continued solid revenue and order intake growth in life sciences international in all regions
Slide 20: Investor contact information
Investor contact information Upcoming events Investor contact January 26, 2021 • Deadline for NNIT shareholders to submit resolutions to be considered by the Annual General Meeting January 29, 2021 • Annual report 2020 March 10, 2021 • Annual General Meeting May 7, 2021 • Interim report for the firs