Slide 1: NNIT first three months 2016
NNIT first three months 2016 13 May 2016
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 three months of 2016 Sales and backlog Financial performance Outlook for 2016 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 three months of 2016 at a glance
First three months of 2016 at a glance Revenue Operating profit Operating profit margin DKK 663m DKK 70m 10.5% +7.7% +10.2% +0.2pp +7.7% organic* +7.9% organic* +0.0pp organic* Net profits Order backlog Free cash flow DKK 51m DKK 2,275m DKK 131m -11.8% +6.4% +DKK 97m *Organic is growth in constant c
Slide 6: Major wins
Major wins Contract Segment Client Amount Length (DKK million) (years) Extension of infrastructure outsourcing Public DSB Minor-three-digit 2 contract Housing and operation of supercomputer Enterprise Existing Medium-double-digit 5 Implementing SAP track and trace Life sciences Existing Minor-double
Slide 7: Backlog development
Backlog development Backlog for 2016 is DKK 2,275m, which is an increase of 6.4% compared to the start of 2015: • Expansion of contracts with existing customers in the enterprise and finance customer groups • New customers in the finance customer group • Extension and expansion of infrastructure and
Slide 8: Data center
Data center • NNIT initiates the planning of building a new data center due to client demand • Signing the recent two large contracts fills up our current data center and in order to continue our growth we need a new data center together with our current data center and the leased third- party facil
Slide 9: Financial statement
Financial statement Organic revenue growth of 7.7% DKK million Q1 2016 Q1 2015 Change Revenue 662.6 615.3 7.7% Sales and marketing costs increase by Cost of goods sold 532.1 494.5 7.6% 10.1% impacted by one-off charges Gross profit 130.5 120.8 8.0% related to the restructuring of the sales Gross pro
Slide 10: Segment development
Segment development Novo Nordisk revenue increased by 4.8% DKKm Q1 2016 Q1 2015 Change Life Sciences 392.6 378.2 3.8% Life sciences revenue outside Novo Nordisk Hereof Novo Nordisk Group 310.7 296.6 4.8% only grew by 0.3%. A number of new Hereof other Life Sciences 81.8 81.6 0.3% contracts and custo
Slide 11: IT Operations
IT Operations DKK million Q1 2016 Q1 2015 Change Revenue Novo Nordisk Group 212.6 196.6 8.1% Non-Novo Nordisk Group 226.0 210.9 7.1% Total 438.6 407.6 7.6% Costs 385.7 367.3 5.0% Operating profit 53.0 40.3 31.4% Operating profit margin 12.1% 9.9% 2.2pp Revenue growth of 8.1% driven by • Novo Nordisk
Slide 12: IT Solutions
IT Solutions DKK million Q1 2016 Q1 2015 Change Revenue Novo Nordisk Group 98.1 100.0 -1.9% Non-Novo Nordisk Group 125.9 107.8 16.8% Total 224.0 207.8 7.8% Costs 207.1 184.7 12.1% Operating profit 16.8 23.0 -26.9% Operating profit margin 7.5% 11.1% -3.6pp Revenue growth of 7.8% • The revenue increas
Slide 13: Currency development and hedging
Currency development and hedging Currencies that NNIT is exposed to have lately fallen into two categories: • CNY, USD, PHP have all been depreciating vs. the DKK • EUR, CZK. CHF have all been rather flat vs. the DKK We thus see a less dramatic currency impact on NNIT compared to one year ago And we
Slide 14: Net Financials
Net Financials Net financials Net financials for Q1 2016 are DKKm Q1 2016 Q1 2015 Change Net gains on Novo Nordisk shares* -2.2 6.6 -8.8 DKK -4.3m which is DKK 14.5m lower Dividends received from Novo Nordisk shares 0.5 0.7 -0.2 than Q1 2015 due to: Total Novo Nordisk share related items -1.7 7.3 -9
Slide 15: Employee development
Employee development Number of employees increased by 5.3% to 2,573 FTE end of March 2016 Growth came in low cost countries • Increase of 132 FTE (15.5%) compared to end of March 2015 Number of employees in western countries declined 2 FTE (-0.1%) based on demand from customers and our offshoring st
Slide 16: Balance sheet
Balance sheet Assets Equity and liabilities DKKm 2016 2015 DKKm 2016 2015 Intangible assets 25.6 33.5 Share capital 250.0 250.0 Tangible assets 404.5 426.0 Treasury shares -7.5 -7.5 Deferred tax 51.1 24.1 Retained earnings 452.1 321.1 Other financial assets 28.4 28.3 Other reserves 4.0 15.6 Total no
Slide 17: Cash flows
Cash flows Cash flow Cash flow from operating activities is DKKm Q1 2016 Q1 2015 DKK 177m, which is DKK 89m higher than Q1 Net profit for the period 51.3 58.1 2015 driven by a positive change in working Reversal of non-cash items 67.3 50.7 Net interest and taxes paid -32.0 -14.2 capital. Changes in
Slide 18: Outlook
Outlook 2016 Previous guidance 5-8% in constant currencies At least 5% in constant currencies Revenue Around 0.3pp lower Around 0.0pp lower in reported growth in reported currencies currencies 10-11% in constant currencies 10-11% in constant currencies Operating Around 0.6pp higher Around 0.3pp high
Slide 19: Closing remarks
Closing remarks • Continued solid overall results • Robust operating profit margins • Based on a strong cash flow NNIT expects to pay out interim dividend • Temporary dip in life sciences growth, but we expect to meet guidance • Major contract wins and extensions • Build of new datacenter due to maj
Slide 20: Investor contact information
Investor contact information Upcoming events August 16, 2016: Financial statement for the first six months of 2016 October 26, 2016: Financial statement for the first nine months of 2016 Investor contact NNIT A/S Østmarken 3A 2860 Søborg Denmark Jesper Wagener +45 3075 5392 jvwa@nnit.com 20