Slide 1: NNIT First six months 2017
NNIT First six months 2017 August 16, 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 six months 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 six months of 2017 at a glance
First six months of 2017 at a glance Revenue Operating profit Operating profit margin DKK 1,404m DKK 133m 9.5% +6.3% +5.3% -0.1pp +5.3% organic* +3.4% organic* -0.2pp organic* +0.9% acquisition +0.5% acquisition +0.0pp acquisition +0.1% F/X +1.4% F/X +0.1pp F/X Net profit Order backlog Free cash flo
Slide 6: Q2 2016 at a glance
Q2 2016 at a glance Revenue Operating profit Operating profit margin DKK 689m DKK 60m 8.7% +4.6% +6.6% +0.2pp +2.7% organic* +3.4% organic* +0.1pp organic* +1.8% acquisition +1.1% acquisition -0.1pp acquisition +0.1% F/X +2.1% F/X +0.2pp F/X Net profit Order backlog addition Free cash flow DKK 48m D
Slide 7: Backlog development
Backlog development Backlog for 2017 is DKK 2,659m, which is an increase of 5.4% compared to same time in 2016. The acquisition of Scales accounts for 2.0pp of the backlog growth 12.2% giving and organic backlog growth of 3.4%. The organic backlog growth is driven by: -2.5% • New customers in the en
Slide 8: Major wins
Major wins Amount Length Contract Segment Client (DKK million) (years) Global infrastructure agreement Life sciences Novo Nordisk Around one billion 6 (Company announcement 4/2017 5 May) Q2 2017 International onsite support Enterprise Pandora Mid-size double-digit 4 Upgrade of regulatory document sy
Slide 9: Life sciences
Life sciences The revenue growth of 12% in 6M 2017 for life sciences outside Novo Nordisk is primarily driven by international customers The primary growth within life sciences at the moment is within regulatory and compliance driven consulting services as well as application and infrastructure outs
Slide 10: Financial statement
Financial statement DKK million Q2 2017 Q2 2016 Change 6M 2017 6M 2016 Change Revenue 688.7 658.6 4.6% 1,404.0 1,321.3 6.3% Cost of goods sold 567.0 540.7 4.9% 1,148.7 1,072.9 7.1% Gross profit 121.7 117.9 3.2% 255.3 248.4 2.8% Gross profit margin 17.7% 17.9% -0.2pp 18.2% 18.8% -0.6pp Sales and mark
Slide 11: Segment development
Segment development Q2 2017 Q2 2016 Change 6M 2017 6M 2016 Change DKKm Life Sciences 364.6 386.5 -5.6% 779.0 779.0 0.0% Hereof Novo Nordisk Group 268.7 300.8 -10.7% 590.9 611.5 -3.4% Hereof other Life Sciences 96.0 85.7 12.0% 188.1 167.5 12.3% Enterprise 163.7 120.9 35.3% 314.2 230.5 36.3% Public 92
Slide 12: IT Operations
IT Operations DKKm Q2 2017 Q2 2016 Change 6M 2017 6M 2016 Change Revenue Novo Nordisk Group 180.8 199.8 -9.5% 406.9 412.5 -1.4% Non-Novo Nordisk Group 253.1 222.5 13.8% 495.7 448.5 10.5% Total 433.9 422.3 2.7% 902.6 861.0 4.8% Costs 389.7 389.3 0.1% 809.0 775.0 4.4% Operating profit 44.3 33.0 34.2%
Slide 13: IT Solutions
IT Solutions DKKm Q2 2017 Q2 2016 Change 6M 2017 6M 2016 Change Revenue Novo Nordisk Group 87.8 100.9 -13.0% 184.0 199.0 -7.5% Non-Novo Nordisk Group 166.9 135.4 23.3% 317.4 261.3 21.5% Total 254.8 236.3 7.8% 501.4 460.3 8.9% Costs 238.8 212.8 12.2% 462.0 420.0 10.0% Operating profit 15.9 23.5 -32.3
Slide 14: Currency development and hedging
Currency development and hedging Major currencies except CZK have all been depreciating versus the DKK lately. 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. 6M 2017 our operating profit margin t
Slide 15: Net Financials
Net Financials Net financials Net financials for 6M 2017 were DKK DKKm 6M 2017 6M 2016 Change Net gains on Novo Nordisk shares* 0.0 -2.7 2.7 -2.8m, which was DKK 5.0m better Dividends received from Novo Nordisk shares 0.2 0.5 -0.3 than 6M 2016. Total Novo Nordisk share related items 0.2 -2.2 2.4 Cur
Slide 16: Employee development
Employee development Number of employees increased by 13.3% to 2,965 FTE end of June 2017. This is partly driven by the acquisition of SCALES, which increased Western manning by 113 FTE. Excluding SCALES, the number of employees increased 9.0% primarily due to onboarding of new customers between Q2
Slide 17: Balance sheet
Balance sheet Assets Equity and liabilities DKKm 6M 2017 6M 2016 DKKm 6M 2017 6M 2016 Intangible assets 212.9 23.7 Share capital 250.0 250.0 Tangible assets 472.2 400.6 Treasury shares -6.6 -7.5 Deferred tax 51.0 39.9 Retained earnings 627.6 453.6 Other financial assets 32.1 28.4 Other reserves 7.2
Slide 18: Cash flows
Cash flows Cash flow Cash flow from operating activities was DKKm 6M 2017 6M 2016 Change DKK 208m, which was DKK 29m higher due Net profit for the period 103.4 92.5 10.9 to positive development in working capital. Reversal of non-cash items 104.1 113.0 -8.9 Net interest and taxes paid -49.3 -31.4 -1
Slide 19: Outlook
Outlook 2017 Previous guidance Constant currencies: 4-8% Constant currencies: 4-8% Revenue Constant currencies (organic): 1-5% Constant currencies (organic): 1-5% growth Reported currencies: 0.2pp lower Reported currencies: No impact Constant currencies: Around 10% Constant currencies: Around 10% Op
Slide 20: Closing remarks
Closing remarks • A solid financial performance for the first six month in-line with our expectations • Continued strong growth in non-Novo Nordisk revenue • Still uncertainty in full-year Novo Nordisk revenue • 2017 guidance is unchanged at 4-8% revenue growth with an operating profit margin around
Slide 21: Investor contact information
Investor contact information Upcoming events October 26, 2017: Interim report for the first nine months of 2017 December 12, 2017: Danske Bank Copenhagen Winter Seminar Investor contact NNIT A/S Østmarken 3A 2860 Søborg Denmark Jesper Wagener +45 3075 5392 jvwa@nnit.com 21