Slide 1: NNIT First nine months 2017
NNIT First nine months 2017 October 26, 2017
Slide 2: The NNIT Presenting Team
The NNIT Presenting Team Per Ove Kogut Chief Executive Officer Carsten Krogsgaard Thomsen Chief Financial Officer Jesper Wagener Head of Investor Relations 2
Slide 3: Agenda
Agenda Highlights for first nine months of 2017 Sales and backlog Financial performance Outlook for 2017 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: First nine months of 2017 at a glance
First nine months of 2017 at a glance Revenue Operating profit Operating profit margin DKK 2,080m DKK 164m 7.9% +4.2% -16.6% -2.0pp +2.1% organic* -21.1% organic* -2.2pp organic* +2.2% acquisition +2.0% acquisition +0.0pp acquisition +0.0% F/X +2.5% F/X +0.2pp F/X Net profit Order backlog Free cash
Slide 6: Q3 2017 at a glance
Q3 2017 at a glance Revenue Operating profit Operating profit margin DKK 676m DKK 31m 4.5% +0.2% -56.2% -5.8pp -4.2% organic* -65.4% organic* +3.7pp organic* +4.6% acquisition +4.7% acquisition +0.3pp acquisition -0.3% F/X +4.5% F/X +0.5pp F/X Net profit Order backlog addition Free cash flow DKK 27m
Slide 7: Backlog development
Backlog development Backlog for 2017 is DKK 2,750m, which is an increase of 3.3% compared to same time in 2016. • SCALES accounts for 1.9pp of the backlog growth • The one-off settlement decreased the backlog with around 1.2pp. The underlying organic growth is thus 2.6%. The organic backlog growth i
Slide 8: Major wins
Major wins Amount Length Contract Segment Client (DKK million) (years) Extension of SAP outsourcing contract Enterprise Existing customer Mid-size double-digit 6 Infrastructure outsourcing agreement Life sciences New customer Mid-size double-digit 5 (Mentioned in Q2 2017 report) Infrastructure outso
Slide 9: Other business
Other business Settlement on an arbitration (company announcement 8/2017) • Arbitration case from 2014 • Settlement results in a one-time revenue reversal of DKK 33 million with similar impact on operating profit DSB • Tender according to public regulation • The negative impact is a minor double-dig
Slide 10: Financial statement 9M 2017
Financial statement 9M 2017 9M 2017 9M 2017 Change Settlement SCALES before 9M 2016 (reported) (reported) impact impact DKK million settlement Revenue 2,112.7 2,079.7 1,995.7 4.2% -1.7pp 2.2pp Cost of goods sold 1,731.0 1,731.0 1,616.6 7.1% 0pp 2.4pp Gross profit 381.6 348.6 379.1 -8.0% -8.7pp 1pp G
Slide 11: Financial statement Q3 2017
Financial statement Q3 2017 Q3 2017 Q3 2017 Change Settlement SCALES before Q3 2016 (reported) (reported) impact impact DKK million settlement Revenue 708.6 675.6 674.5 0.2% -4.9pp 4.6pp Cost of goods sold 582.3 582.3 543.8 7.1% 0pp 5.2pp Gross profit 126.3 93.3 130.7 -28.6% -25.3pp 2.5pp Gross prof
Slide 12: Segment development
Segment development Q3 2017 Q3 2016 Change 9M 2017 9M 2016 Change DKKm Life Sciences 386.5 386.8 -0.1% 1,165.5 1,165.9 0.0% Hereof Novo Nordisk Group 291.3 298.3 -2.3% 882.2 909.7 -3.0% Hereof other Life Sciences 95.2 88.6 7.5% 283.3 256.1 10.6% Enterprise 182.0 144.7 25.8% 496.2 375.2 32.3% Public
Slide 13: IT Operations
IT Operations DKKm Q3 2017 Q3 2016 Change 9M 2017 9M 2016 Change Revenue Novo Nordisk Group 203.5 203.0 0.2% 610.4 615.5 -0.8% Non-Novo Nordisk Group 247.6 244.1 1.5% 743.4 692.6 7.3% Total 451.1 447.1 0.9% 1,353.7 1,308.0 3.5% Costs 400.9 393.9 1.8% 1,209.9 1,168.9 3.5% Operating profit 50.3 53.1 -
Slide 14: IT Solutions
IT Solutions Settle- DKKm Q3 2017 Q3 2016 Change Scales ment Revenue Novo Nordisk Group 87.8 95.3 -7.8% 0pp 0pp Non-Novo Nordisk Group 136.7 132.1 3.5% -25.0pp 23.7pp Total 224.5 227.4 -1.2% -14.5pp 13.8pp Costs 244.2 210.8 15.9% 0pp 13.3pp Operating profit -19.7 16.6 n.a n.a. 19.7pp Operating profi
Slide 15: Currency development and hedging
Currency development and hedging Major currencies except CZK have all been depreciating lately versus the DKK. CZK appreciated against DKK. We see currency tailwind from the CNY and PHP compared to 2016, while we have currency headwind from CZK compared to 2016. 9M 2017 our operating profit margin t
Slide 16: Net Financials
Net Financials Net financials Net financials for 9M 2017 were DKK DKKm 9M 2017 9M 2016 Change Net gains on Novo Nordisk shares* 0.2 -3.7 3.9 0.8m, which was DKK 11.3m better Dividends received from Novo Nordisk shares 0.3 0.7 -0.4 than 9M 2016. Total Novo Nordisk share related items 0.5 -3.0 3.5 Cur
Slide 17: Employee development
Employee development Number of employees increased by 7.5% to 2,999 FTE end of September 2017. This is primarily driven by the acquisition of SCALES, which increased Western manning by 119 FTE. Excluding SCALES, the number of employees increased 3.1%. The increase was outside Denmark and in-line wit
Slide 18: Balance sheet
Balance sheet Assets Equity and liabilities DKKm 9M 2017 9M 2016 DKKm 9M 2017 9M 2016 Intangible assets 207.2 21.7 Share capital 250.0 250.0 Tangible assets 530.2 409.6 Treasury shares -6.6 -7.5 Deferred tax 53.0 28.4 Retained earnings 659.4 509.2 Other financial assets 32.5 28.7 Other reserves 4.8
Slide 19: Cash flows
Cash flows Cash flow Cash flow from operating activities was DKKm 9M 2017 9M 2016 Change DKK 249.6m, which was DKK 15.5m Net profit for the period 130.1 143.5 -13.4 Reversal of non-cash items 151.0 176.1 -25.1 higher due to positive development in Net interest and taxes paid -51.6 -38.8 -12.8 workin
Slide 20: Outlook
Outlook 2017 Previous guidance (6 months 2017) Constant currencies: 4-6% Constant currencies: 4-8% Revenue Constant currencies (organic): 1-3% Constant currencies (organic): 1-5% growth Reported currencies: 0.2pp lower Reported currencies: 0.2 pp lower Constant currencies: Around 9% Constant currenc
Slide 21: Closing remarks
Closing remarks • Continued growth in non-Novo Nordisk revenue • Uncertainty in revenue from Novo Nordisk persists • While uncertainty from Novo Nordisk may impact 2018, NNIT continues to believe that the long-term target of growing revenue by at least 5% is still achievable. • One-time impact in Q3
Slide 22: Investor contact information
Investor contact information Upcoming events December 12, 2017: Danske Bank Copenhagen Winter Seminar January 10, 2018: SEB Nordic Seminar January 25, 2018: Financial statement for the full year 2017 Investor contact NNIT A/S Østmarken 3A 2860 Søborg Denmark Jesper Wagener +45 3075 5392 jvwa@nnit.co