Slide 1: Annual Report 2022: Bringing Digital Transformation to Life
Annual Report 2022 Bringing Digital Transformation to Life NNIT A/S, Oestmarken 3A, DK-2860 Soeborg • CVR no. 21 09 31 06
Slide 2: Table of Contents
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 2 Table of Contents The Bigger Picture Our Business Governance Financial Statements The NNIT Group at a Glance 4 Strategy13 Corporate Governance 23 Consolidated Financial Statements Words from Management 5 Outloo
Slide 3: The Bigger Picture
NNIT Annual Report 2022 3 The Bigger Picture The NNIT Group at a Glance Words from Management Highlights Key Events Financial Performance Key Figures
Slide 4: The NNIT Group at a Glance
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 4 The NNIT Group NNIT provides a wide range of IT and consulting services internationally. We advise, build, operate and support, enabling digital transformation and customers to reap the full potential of their
Slide 5: Enabling Future Growth
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 5 WORDS FROM THE CHAIRMAN OF THE BOARD AND THE CEO Enabling Future Carsten Dilling, Chairman of the Board Pär Fors, CEO Growth Divesting half of the business and staff is a major change and undertaking. In NNIT’s
Slide 6: Words from Management (continued)
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 6 During 2022, we built up our capabilities by in both revenue and earnings. By Q2, “In 2023, NNIT will be more asset light, and in the second half of approx. 400 FTEs in the Philippines to allow we began to see
Slide 7: Highlights
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 7 Highlights In 2022, we focused on strategy execution with the aim of righting our business and creating value for our stakeholders. Divestment Consolidation Infrastructure Operations Global Delivery Capabilitie
Slide 8: Key Events
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 8 Key Events JAN FEB MAR Outsourcing contract with Full-service contract for Bane the Nordic Regional Security danmark’s administrative IT systems Acquisition of Consolidation of Global Coordinator prime4service
Slide 9: Financial Performance
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 9 Financial Performance Continued and discontinued operations Gross profit, costs and operating profit benefit costs as part of contingent consideration agree- On June 22, 2022 the Board of Directors announced it
Slide 10: Financial Performance (continued)
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 10 not envisage undue problems in refinancing. Please refer to section 1.6 on page 51. Events after the balance sheet date Referring to company announcement 4/2023, NNIT has issued a restatement of the annual fin
Slide 11: Key Figures
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 11 Key Figures Financial key figures for 2021 and 2022 is excluding discontinued operations, while 2018 - 2020 is including discontinued operations. DKK million 2022 2021 2020 2019 2018 DKK million 2022 2021 2020
Slide 12: Our Business
NNIT Annual Report 2022 12 Our Business Strategy Outlook 2023 Life Sciences Solutions Cloud & Digital Solutions Markets and Customers People and Sustainability
Slide 13: Strategy
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 13 Strategy We conducted a strategic review in 2022, leading to the decision to divest our Life Sciences infrastructure operations to enable a sharper focus on our core strengths in The Life Sciences Solutions bu
Slide 14: Outlook 2023
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 14 Outlook 2023 After expected completion of the divestment of NNIT’s infrastructure operations, the Group will leverage its sharpened focus on its two core business units with the ambition to significantly stren
Slide 15: Currency sensitivities and key currency assumptions
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 15 Currency sensitivities Key currency assumptions The profitability level in 2023 will be Estimated annual impact on NNIT’s operating Rate impacted by a higher cost base in the first profit of a 10% increase in
Slide 16: Life Sciences Solutions
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 16 Life Sciences Revenue Gross Profit Gross Margin Operating Profit Solutions 873 DKKm 158 DKKm 18% 7 DKKm The Life Sciences Solutions business The revenue in Q4 amounted to DKK 221m strengthened Its strong posit
Slide 17: Cloud & Digital Solutions
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 17 Cloud & Digital Revenue Gross Profit Gross Margin Operating Profit Solutions 853 DKKm 137 DKKm 16% 64 DKKm The Cloud & Digital Solutions unit Higher Education and Science, which has a During Q4, CDS continued
Slide 18: Markets and Customers
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 18 Markets and Customers Customer satisfaction (from 1-5, 5 being NNIT will increase its position as a strong player with significant the best) international presence in the life sciences market and in Denmark wi
Slide 19: Key market trends are favorable to the solutions NNIT offer
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 19 Key market trends are favorable to the solutions NNIT offer Digital Transformation Cybersecurity and Regulation Continued cloud migration Talent Scarcity and Sustainable IT Automation, Data and AI of Industrie
Slide 20: People and Sustainability
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 20 People and Sustainability Together, our aspiration, our values, Gender distribution in NNIT and our strategy outline the way Top Management we work in NNIT. Working in NNIT means being part of an international
Slide 21: Sustainability
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 21 Sustainability Unit 2022 2021 2020 The role of IT in a sustainable transition of society and the sustainability Environment data1 of our own operations are responsibilities that have matured in our Global elec
Slide 22: Governance
NNIT Annual Report 2022 22 Governance Corporate Governance Risk Management Board of Directors Group Management Shareholder Information
Slide 23: Corporate Governance
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 23 Corporate Governance The Board of Directors of NNIT has a continued focus on Governance structure tors consisted of six shareholder-elected good governance practices and complies with all suggested Annual gene
Slide 24: Corporate Governance (continued)
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 24 Pursuant to the Articles of Association, board tasks, such as planning board meetings to The Audit Committee The Remuneration Committee members must retire at the first Annual ensure a balance between overall
Slide 25: Board evaluation and Data Ethics Policy
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 25 Board evaluation The Board found that: Data Ethics Policy Every year, the Board of Directors conducts a 1) T he workload for Group management is At NNIT, we process large amounts of data Corporate governance s
Slide 26: Compliance with corporate governance recommendations
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 26 In NNIT, the type off data we process is Compliance with corporate part of our data ethical considerations, as governance recommendations Risk management and control activities security measures must correspon
Slide 27: Risk Management
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 27 Risk The key risks are assessed for likelihood and impact. HIGH Management New strategy and new customer engagements After the divestiture of the infrastructure business, NNIT will be operating in a highly com
Slide 28: Risk Management (continued)
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 28 to continue to deliver high quality solutions ESG Performance in joint deliveries is a notable risk. NNIT has always had a strong focus on the ESG agenda – clearly visible in e.g. in New Strategy and New our S
Slide 29: Board of Directors
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 29 Board of Directors Carsten Dilling Eivind Kolding Anne Broeng Chairman Deputy Chairman Board Member Committee Member of the Remuneration Committee Chairman of the Remuneration Committee Chairman of the Audit C
Slide 30: Board of Directors (continued)
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 30 Caroline Serfass Christian Kanstrup Nigel Govett Board Member Board Member Board Member Committee Member of the Audit Committee Member of the Audit Committee Member of the Remuneration Committee Personal and B
Slide 31: Employee-elected representatives
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 31 Anders Vidstrup Kenn Kikkenborg Jensen Trine Io Bjerregaard Employee-elected representative Employee-elected representative Employee-elected representative Committee Personal and Born 1962. Danish citizen. Gra
Slide 32: Group Management
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 32 Group Management Pär Fors Carsten Ringius Pernille Fabricius Camilla G. Møhl Ricco Larsen Kasper Søndergaard Andersen President and CEO, Member of Executive Vice President and Executive Vice President Senior V
Slide 33: Shareholder Information
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 33 Shareholder Information NNIT shares were priced at DKK 65.7 per Share capital and ownership 51% of the share capital was directly or Share information share on December 31, 2022, for a market NNIT’s share capi
Slide 34: Shareholder overview and dividend policy
The Bigger Picture Our Business Governance Financial Statements NNIT Annual Report 2022 34 Shareholder overview Dividend policy and capital structure Further, the Board of Directors intends announcements, press releases, historical % NNIT aims to deliver a competitive return to to propose the re-ele
Slide 35: Financial Statements
NNIT Annual Report 2022 35 Financial Statements Consolidated Financial Statements Parent Company Financial Statements Statements
Slide 36: Consolidated Financial Statements
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 36 Consolidated Financial Statements Income Statement Statement of Comprehensive Income Balance Sheet Statement of Cash Flows Statement of Changes in Equity Notes
Slide 37: Income Statement and Statement of Comprehensive Income
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 37 Income Statement Statement of Comprehensive Income for the year ended December 31 for the year ended December 31 DKK million Note 2022 2021 DKK million Note 2022 2021 Revenu
Slide 38: Balance Sheet
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 38 Balance Sheet as of December 31 ASSETS EQUITY AND LIABILITIES DKK million Note 2022 2021 DKK million Note 2022 2021 Intangible assets 3.1, 5.5 706 703 Share capital 4.2 250
Slide 39: Statement of Cash Flows
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 39 Statement of Cash Flows for the year ended December 31 DKK million Note 2022 2021 DKK million Note 2022 2021 Net profit/(loss) for the year (202) (49) Dividends paid - (25)
Slide 40: Statement of Changes in Equity
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 40 Statement of Changes in Equity as of December 31 Other reserves Share Treasury Retained Exchange rate Cash flow Total other Proposed DKK million Note capital shares earnings
Slide 41: Statement of Changes in Equity
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 41 Statement of Changes in Equity as of December 31 Other reserves Share Treasury Retained Exchange rate Cash flow Total other Proposed DKK million Note capital shares earnings
Slide 42: Notes to the Consolidated Financial Statements
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 42 Notes to the Consolidated Financial Statements 1. Basis of preparation 3. Operating assets and liabilities 5. Other disclosures 1.1 Summary of significant accounting policie
Slide 43: 1. Basis of preparation
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 43 1. Basis of preparation 1.1 Summary of significant accounting policies The consolidated financial statements are prepared Restatement Measurement basis the ability to direct
Slide 44: 1.1 Summary of significant accounting policies – continued
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 44 1.1 Summary of significant accounting policies – continued Contracts where the recognized revenue from Transition phase will take place in parallel with the transition or lo
Slide 45: 1.2 Key accounting estimates; 1.3 Changes in accounting policies
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 45 1.2 Summary of key accounting estimates 1.3 Changes in accounting policies, estimates and disclosures The preparation of financial statements under IFRS as well as the legal
Slide 46: 1.4 General accounting policies
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 46 1.4 General accounting policies Principles of consolidation Identifiable intangible assets are recognized if they NNIT completed a major organizational change to Realized an
Slide 47: 1.4 General accounting policies – continued
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 47 1.4 General accounting policies – continued Administrative expenses amount that can be allocated to the net profit for Intangible assets costs include salaries, amortization
Slide 48: 1.4 General accounting policies – continued
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 48 1.4 General accounting policies – continued asset or recognized as a separate asset, where ment under cost of goods sold, sale and marketing Inventories “held for sale”. Ass
Slide 49: 1.4 General accounting policies – continued
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 49 1.4 General accounting policies – continued When calculating the net present value NNIT has statement. Actuarial gains and losses are recog- following which the RSU’s are re
Slide 50: 1.5 Financial definitions
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 50 1.5 Financial definitions Operating profit margin = Operating profit x 100 Non-IFRS financial measures related to members of Group Management, impair- In the Annual Report,
Slide 51: 1.6 Going Concern
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 51 1.6 Going Concern Management has adopted the going concern basis Closing not reached for preparing these financial statements and has In the unlikely event that closing will
Slide 52: 2. Results for the year
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 52 2. Results for the year 2.1 Segment information NNIT completed a major organizational change to create three distinct business units as disclosed in company Allocated to ann
Slide 53: 2.2 Employee costs
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 53 2.2 Employee costs DKK million 2022 2021 Group Management's remuneration and share-based payment 2022 Employee costs comprise: Other members Wages and salaries 1,701 1,764 E
Slide 54: 2.2 Employee costs – continued; 2.3 Development costs
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 54 2.2 Employee costs – continued Short-term incentive program (STIP) The shares allocated to the members of Group Management that are fully vested, will be released to the ind
Slide 55: 2.4 Amortization, depreciation and impairment losses; 2.5 Special items
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 55 2.4 Amortization, depreciation and impairment losses 2.5 Special items DKK million 2022 2021 DKK million 2022 2021 Amortization 29 25 Special items relates to: Depreciation
Slide 56: 2.6 Income taxes
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 56 2.6 Income taxes DKK million 2022 2021 DKK million 2022 2021 Current tax (47) (3) Tax (payable)/receivable Deferred tax 12 (22) Tax (payable)/receivable at the beginning of
Slide 57: 2.6 Income taxes – continued
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 57 2.6 Income taxes – continued Lease Intangible Tangible Current receivables Share based Cash flow DKK million assets assets assets and liabilities programs hedges Provisions
Slide 58: 3. Operating assets and liabilities
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 58 3. Operating assets and liabilities 3.1 Intangible assets Other IT IT development intangible development projects under DKK million Goodwill assets projects construction 202
Slide 59: 3.1 Intangible assets – continued
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 59 3.1 Intangible assets – continued Other IT development intangible IT development projects under DKK million Goodwill assets projects construction 2021 2021 Cost at the begin
Slide 60: 3.2 Impairment test
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 60 3.2 Impairment test Goodwill The expected growth in revenue is based on historical performance, expected development in the market in The carrying amount of goodwill is impa
Slide 61: 3.3 Tangible assets
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 61 3.3 Tangible assets Payments on account and Land and Other Leasehold assets under DKK million buildings equipment improvements construction 2022 2022 Cost at the beginning o
Slide 62: 3.3 Tangible assets – continued
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 62 3.3 Tangible assets – continued Payments on account and Land and Other Leasehold assets under DKK million buildings equipment improvements construction 2021 2021 Cost at the
Slide 63: 3.4 Contract balances
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 63 3.4 Contract balances Transferred Contract assets and liabilities, continuing operations to liabilities Revenue directly DKK million 2022 2021 recognized Revenue associated
Slide 64: 3.4 Contract balances; 3.5 Deposits; 3.6 Trade receivables
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 64 3.4 Contract balances – continued 3.5 Deposits Transferred DKK million 2022 2021 Amortized to assets cost from Amortized classified Cost at the beginning of the year 34 33 O
Slide 65: 3.6 Trade receivables; 3.7 Employee benefit obligations
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 65 3.6 Trade receivables – continued 3.7 Employee benefit obligations To minimize credit losses NNIT makes a credit evaluation before entering into a contract with a new custom
Slide 66: 3.7 Employee benefit obligations; 3.8 Provisions
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 66 3.7 Employee benefit obligations – continued 3.8 Provisions DKK million 2022 2021 DKK million 2022 2021 Assumptions used for valuation1 Provision for onerous contracts/proje
Slide 67: 3.9 Discontinued operations
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 67 3.9 Discontinued operations June 22, 2022 it was announced that NNIT was divesting the infrastructure operations (Hybrid Cloud Solutions Assets held for sale and selected pa
Slide 68: 4. Capital structure and financing items
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 68 4. Capital structure and financing items 4.1 Financial income and expenses 4.2 Share capital, distribution to shareholder and earnings per share DKK million 2022 2021 DKK mi
Slide 69: 4.2 Share capital – continued; 4.3 Leases
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 69 4.2 Share capital, distribution to shareholder and earnings per share – continued 4.3 Leases Number Lease assets Nominal Market value As % of of shares Rental of IT- Company
Slide 70: 4.3 Leases – continued
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 70 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
Slide 71: 4.4 Financial assets and liabilities, continuing operations
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 71 4.4 Financial assets and liabilities, continuing operations Depending on the purpose of each asset and liability, NNIT classifies these into the following categories: • Cash
Slide 72: 4.4 Financial assets and liabilities – continued
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 72 4.4 Financial assets and liabilities – continued Financial liabilities Financial liabilities DKK million Credit Facilities Lease liability Total at fair value through measur
Slide 73: 4.4 Financial assets and liabilities – continued
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 73 4.4 Financial assets and liabilities – continued Fair value measurement hierarchy DKK million 2022 2021 Financial assets at fair value through the income statement are categ
Slide 74: 4.4 Financial assets and liabilities – continued
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 74 4.4 Financial assets and liabilities – continued Trade Trade Net balance Transaction 10% As of December 31, 2022 NNIT A/S' has not entered into any hedge contracts. Million
Slide 75: 4.4 Financial assets and liabilities; 4.5 Derivative financial instruments
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 75 4.4 Financial assets and liabilities – continued 4.5 Derivative financial instruments Credit risk Current NNIT’s credit risk principally arises from trade receivables, which
Slide 76: 5. Other disclosures
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 76 5. Other disclosures 5.1 Long-term incentives Long-term share-based incentive program Outstanding restricted stock units (in NNIT shares): Group Management and the Vice Pres
Slide 77: 5.2 Fee to statutory auditors; 5.3 Reversal of non-cash items
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 77 5.2 Fee to statutory auditors 5.4 Statement of cash flows – specifications DKK million 2022 2021 DKK million 2022 2021 Statutory audit 5.3 2.2 Changes in working capital Aud
Slide 78: 5.5 Acquisition of subsidiaries
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 78 5.5 Acquisition of subsidiaries The fair value of net assets acquired and goodwill at the date of acquisition is summarized below: Restatement of earn out Referring to compa
Slide 79: 5.6 Contingent liabilities; 5.7 Related party transactions
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 79 5.6 Contingent liabilities, other contractual obligations and legal proceedings 5.7 Related party transactions and ownership – continued NNIT has entered into short-term and
Slide 80: 5.7 Related party transactions – continued; 5.8 Events after balance sheet date
The Bigger Picture Our Business Governance Financial Statements – Consolidated Financial Statements NNIT Annual Report 2022 80 5.7 Related party transactions and ownership – continued 5.8 Events after the balance sheet date Companies in the NNIT Group: Referring to company announcement 5/2023, follo
Slide 81: Parent Company Financial Statements
NNIT Annual Report 2022 81 Parent Company Financial Statements Income Statement Balance Sheet Statement of Changes in Equity Notes
Slide 82: Income Statement
The Bigger Picture Our Business Governance Financial Statements – Parent Company Financial Statements NNIT Annual Report 2022 82 Income Statement for the year ended December 31 DKK million Note 2022 2021 Revenue 476 531 Cost of goods sold 2.1 726 672 Gross profit (250) (141) Sales and marketing cost
Slide 83: Balance Sheet
The Bigger Picture Our Business Governance Financial Statements – Parent Company Financial Statements NNIT Annual Report 2022 83 Balance Sheet as of December 31 ASSETS EQUITY AND LIABILITIES DKK million Note 2022 2021 DKK million Note 2022 2021 Intangible assets 3.1 10 101 Share capital 250 250 Tang
Slide 84: Statement of Changes in Equity 2022
The Bigger Picture Our Business Governance Financial Statements – Parent Company Financial Statements NNIT Annual Report 2022 84 Statement of Changes in Equity as of December 31 2022 Reserve IT Retained development Reserve cash Proposed DKK million Share capital Treasury share earnings projects flow
Slide 85: Statement of Changes in Equity 2021
The Bigger Picture Our Business Governance Financial Statements – Parent Company Financial Statements NNIT Annual Report 2022 85 Statement of Changes in Equity as of December 31 2021 Reserve IT Retained development Reserve cash Proposed DKK million Share capital Treasury share earnings projects flow
Slide 86: Notes to the Parent Company Financial Statements
The Bigger Picture Our Business Governance Financial Statements – Parent Company Financial Statements NNIT Annual Report 2022 86 Notes to the Parent Company Financial Statements 1. Basis of preparation 4. Capital structure and financing items 1.1 Accounting policies 87 4.1 Financial income and expen
Slide 87: 1. Basis of preparation
The Bigger Picture Our Business Governance Financial Statements – Parent Company Financial Statements NNIT Annual Report 2022 87 1. Basis of preparation 1.1 Accounting policies The parent company financial statements are The parent company financial statements are contin- Supplementary accounting po
Slide 88: 2. Results for the year
The Bigger Picture Our Business Governance Financial Statements – Parent Company Financial Statements NNIT Annual Report 2022 88 2. Results for the year 2.1 Employee costs 2.2 Special items DKK million 2022 2021 DKK million 2022 2021 Wages and salaries 939 1,053 Special items relates to: Pensions 88
Slide 89: 3. Operating assets and liabilities
The Bigger Picture Our Business Governance Financial Statements – Parent Company Financial Statements NNIT Annual Report 2022 89 3. Operating assets and liabilities 3.1 Intangible assets IT development IT development projects under DKK million projects construction 2022 2021 Costs at the beginning o
Slide 90: 3.2 Tangible assets
The Bigger Picture Our Business Governance Financial Statements – Parent Company Financial Statements NNIT Annual Report 2022 90 3.2 Tangible assets Payments on account and Land and Leasehold assets under DKK million buildings Other equipment improvements construction 2022 2021 Costs at the beginnin
Slide 91: 3.3 Financial assets; 3.4 Trade receivables; 3.5 Provisions
The Bigger Picture Our Business Governance Financial Statements – Parent Company Financial Statements NNIT Annual Report 2022 91 3.3 Financial assets 3.4 Trade receivables Investments in DKK million Deposits subsidiaries 2022 2021 DKK million 2022 2021 Cost Total trade receivables (gross) 296 254 Co
Slide 92: 3.6 Discontinued operations
The Bigger Picture Our Business Governance Financial Statements – Parent Company Financial Statements NNIT Annual Report 2022 92 3.6 Discontinued operations June 22, 2022 it was announced that NNIT was divesting the infrastructure operations (Hybrid Cloud Solutions Assets held for sale and selected
Slide 93: 4. Capital structure and financing items
The Bigger Picture Our Business Governance Financial Statements – Parent Company Financial Statements NNIT Annual Report 2022 93 4. Capital structure and financing items 4.1 Financial income and expenses 4.2 Proposed allocation of Net profit for the year DKK million 2022 2021 DKK million 2022 2021 F
Slide 94: 4.3 Leases; 4.4 Derivative financial instruments
The Bigger Picture Our Business Governance Financial Statements – Parent Company Financial Statements NNIT Annual Report 2022 94 4.3 Leases Lease assets Lease liabilities Rental of IT- Company Lease liabilities expiring within the following periods from the balance sheet date: DKK million premises e
Slide 95: 5. Other disclosures
The Bigger Picture Our Business Governance Financial Statements – Parent Company Financial Statements NNIT Annual Report 2022 95 5. Other disclosures 5.1 Fee to statutory auditors 5.2 Contingent liabilities, other contractual obligations and legal proceeding DKK million 2022 2021 – continued DKK mil
Slide 96: Statements
NNIT Annual Report 2022 96 Statements Management's Statement Independent Auditor's Reports
Slide 97: Management's Statement
NNIT Annual Report 2022 97 Management's Statement Soeborg, March 23, 2023 The Board of Directors and the Executive 31, 2021 and of the results of the Group’s Management (the “Management”) have and Parent Company’s operations and cash NNIT A/S today discussed and approved the annual flows for the Gro
Slide 98: Independent Auditor's Reports
NNIT Annual Report 2022 98 Independent Auditor's Reports To the Shareholders of NNIT A/S Report on the audit of the Financial Statements Our opinion Our opinion is consistent with our Auditor’s Collectively referred to as the “Financial Code of Ethics for Professional Accountants In our opinion, the
Slide 99: Material uncertainty related to going concern; Key Audit Matters
NNIT Annual Report 2022 99 Material uncertainty related Key Audit Matters to going concern In addition to the matter described in We draw attention to Note 1.6 in the Finan- the material uncertainty related to going cial Statements, which describes that loan concern section, we have determined the f
Slide 100: Key Audit Matter: Revenue recognition
NNIT Annual Report 2022 100 Key Audit Matter How our audit addressed the Key Audit Matter Revenue recognition We focused on revenue recognition related to transformation projects and fixed fee We performed risk assessment procedures with the purpose of achieving an understanding projects,as the acco
Slide 101: Key Audit Matter: Discontinued operations
NNIT Annual Report 2022 101 Key Audit Matter How our audit addressed the Key Audit Matter Discontinued operations The Group announced on 22 June 2022 its intention to sell the infrastructure business to We examined the Share Purchase Agreements between the Group and the purchasers as Agilitas Privat
Slide 102: Statement on Management's Review
NNIT Annual Report 2022 102 Statement on Management's Review accordance with the Consolidated Financial In preparing the Financial Statements, from fraud or error and are considered Management is responsible for Manage- Statements and the Parent Company Finan- Management is responsible for assessing
Slide 103: Auditor's responsibilities for the audit
NNIT Annual Report 2022 103 • Obtain an understanding of internal disclosures in the Financial Statements group audit. We remain solely responsible ments of the current period and are there- control relevant to the audit in order to or, if such disclosures are inadequate, to for our audit opinion. f
Slide 104: Report on compliance with the ESEF Regulation
NNIT Annual Report 2022 104 the ESEF Regulation. This responsibility Our responsibility is to obtain reasonable • Evaluating the appropriateness of • Reconciling the iXBRL tagged data with includes: assurance on whether the annual report the company’s use of iXBRL elements the audited Consolidated F
Slide 105: Bringing Digital Transformation to Life
Bringing Digital Design og produktion: Noted Transformation to Life NNIT A/S Oestmarken 3A DK-2860 Soeborg Denmark Tlf.: +45 7024 4242 www.nnit.com NNITcontact@nnit.com CVR no. 21 09 31 06