Slide 1: Full year 2020
Full year 2020 NNIT A/S January 29, 2021
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 Q4 2020 and full year 2020 02 Financial performance and cost restructuring plan 03 Balance sheet and cash flow 04 Outlook for 2021 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: Business update
Business update • 2020 was a challenging year with an organization adapting to a revised strategy while struggling with a global pandemic • NNIT concluded 2020 in-line with the latest financial guidance despite continued impact from COVID-19 • The business and cost restructuring plan has been execut
Slide 6: Q4 2020 at a glance
Q4 2020 at a glance Revenue Operating profit* Operating profit margin* DKK 749m DKK 55m 7.3% -6.5% -32% -2.7pp -0.9pp F/X -1.2pp F/X -0.1pp F/X Net profit DKK 18m -69% *Before special items 6
Slide 7: Full year 2020 at a glance
Full year 2020 at a glance Revenue Operating profit* Operating profit margin* DKK 2,830m DKK 165m 5.8% -7.5% -31% -2.0pp -0.3pp F/X +0.0pp F/X +0.0pp F/X Net profit Free cash flow DKK 76m DKK 143m -59% DKK -99m *Before special items 7
Slide 8: Key contract wins
Key contract wins Amount Length Contract Segment Client (DKK million) (years) Global top-10 pharma Veeva Regulatory Information Management (RIM) Life Sciences High double-digit 4 company Q4 End-to-end IT services including application maintenance Life Sciences Orifarm High double-digit 5 2020 and in
Slide 9: Update on ESG principles
Update on ESG principles • In January 2021, NNIT completed a comprehensive rating process with independent ESG and corporate governance research and rating company Sustainalytics • NNIT received a low-risk rating confirming NNIT’s focus on environmental awareness, social responsibility and strong in
Slide 10: Financial statement Q4 and 2020
Financial statement Q4 and 2020 • In Q4 2020, revenue decreased by 6.5% to DKK 749m. Revenue from Life Sciences international and Life Sciences Denmark increased by 37% and 4.7% respectively but could not offset the DKK million Q4 2020 Q4 2019 Change 2020 2019 Change expected decline from the Novo N
Slide 11: 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 Q4 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 12: Life Sciences
• Total Life Sciences revenue increased by 3.0% compared to Q4 2019 and by 6.3% compared to 2019 Life Sciences • Revenue from Life Science international has showed strong growth throughout 2020 with growth of 37% in Q4 and 26% in 2020 driven by Veeva related projects, digitalization of clinical tria
Slide 13: Private & Public
Private & Public • Private & Public revenue decreased by 16% in Q4 2020 and by 8.7% in 2020 • As expected, the phasing out of the DKKm Q4 2020 Q4 2019 Change 2020 2019 Change Pandora contract impacted revenue Enterprise 171.0 203.0 -15.8% 712.0 802.0 -11.2% and profitability from second half of Publ
Slide 14: Net Financials
Net Financials Net financials • Net financials was negative by DKK 20m Q4 2020 Q4 2019 Change 2020 2019 Change DKKm compared to DKK +16m in 2019 Currency hedge gains 1 5 -3 10 21 -11 Currency gains (losses) 6 -4 10 -2 1 -2 Total currency related items 7 0 7 9 22 -13 • The negative development in 202
Slide 15: Employee development
Employee development • Since Q4 2019, the number of employees in NNIT’s international offices increased by 60% (111 FTEs) due to the strong growth in Life Sciences international and the acquisition of Excellis. • In Denmark and the global sourcing centers the number of FTE’s decreased by 5% (83 FTE’
Slide 16: Balance sheet
Balance sheet Assets Dec 31, 2020 Dec 31, 2019 Equity and liabilities Dec 31, 2020 Dec 31, 2019 DKK million DKK million Intangible assets 781 524 Share capital 250 250 Tangible assets 552 576 Treasury shares (3) (4) Retained earnings 855 860 Lease assets 227 316 Contract assets 75 69 Other reserves
Slide 17: Cash flows
Cash flows • In Q4 2020, the free cash flow was negative by DKK million Q4 2020 Q4 2019 12M 2020 12M 2019 DKK 40m which was DKK 352m below Q4 Net profit for the period 18 58 76 183 2019, mainly due to the acquisition of Excellis and lower net profit Reversal of non-cash items -53 183 228 439 Interes
Slide 18: Proposed dividend
Proposed dividend • Proposed dividend for 2020 of DKK 25m equal to DKK 1.00 per share DKKm 2017 2018 2019 2020 Dividends 105 113 98 74 • This brings NNIT’s total dividend for the financial Dividend per share 4.30 4.60 4.00 3.00 year 2020 to DKK 74m equal to DKK 3.00 per Payout ratio 48.4% 48.4% 53.9
Slide 19: Backlog development, current year
Backlog development, current year Beginning of quarter • At the beginning of Q1 2021, NNIT’s order entry backlog for 2021 amounted to DKK 1,999 million, which is a decrease of 2.0% compared to last year • At the same time last year, the considerable price reduction on the prolonged operation mainten
Slide 20: Outlook
Outlook • In 2021, the growth is expected to return 2021 driven by Life Sciences international including the acquisition of Excellis and traction in Winning Solutions Revenue Reported currencies: 1-4% growth • The Private & Public segment seems to continue to be impacted by COVID-19 and is expected
Slide 21: Closing remarks
Closing remarks • NNIT concluded 2020 in-line with the financial guidance with revenue growth of -7.5% to DKK 2,830 million and an operating profit margin before special items of 5.8%. • Life Sciences international continued the strong growth in 2020 with revenue increasing 26% • Excellis was acquir
Slide 22: Investor contact information
Investor contact information Upcoming events Investor contact March 10, 2021 • Annual General Meeting May 7, 2021 • Interim report for the first three months of 2021 August 12, 2021 • Interim report for the first six months of 2021 Jens Binger November 3, 2021 Head of Investor Relations • Interim re