Slide 1: Annual Report 2020
Together we make a mark in business and society; bringing digital transformation to life. Annual Report 2020 NNIT A/S, Oestmarken 3A, DK-2860 Soeborg • CVR no. 21 09 31 06
Slide 2: Table of Contents
2 Annual Report 2020 Table of Management's Review Financial Statements 2020 Contents The Bigger Picture NNIT Group at a Glance 4 Statements Management’s Statement 52 Chairman & CEO letter 5 Independent Auditor’s Report 53 Main Highlights 2020 8 2020 Financial Performance 9 Consolidated Financial Fiv
Slide 3: The Bigger Picture
3 Annual Report 2020 Management's Review The Bigger The Bigger Picture NNIT Group at a Glance 4 Chairman & CEO letter 5 Picture Main Highlights 2020 8 2020 Financial Performance 9 Five-year Performance Highlights 12 Commercial Highlights 2020 13 Outlook 15 Excellis Health Solutions 16
Slide 4: NNIT Group at a Glance
4 Annual Report 2020 Management's Review NNIT Group at a Glance At NNIT, we believe that we can NNIT is a leading provider of IT transformation services make a mark in business and society and solutions to international life sciences companies together with our customers and and for the Danish priva
Slide 5: Resilience in a Year of Transformation and a Global Pandemic
5 Annual Report 2020 Management's Review Resilience in a Year of Transformation and a Global Pandemic 2020 was seen as a year of transformation, dedicated Focus on our strategy On November 9, we announced the acquisi- Throughout the year, the organization was tion of Excellis Health Solutions, deliv
Slide 6: Chairman & CEO letter (continued)
6 Annual Report 2020 Management's Review our solutions Veeva Powerhouse for Life Sci- especially with our customers. This is a big ences customers, D365 Solutions and Hybrid part of the NNIT culture. Cloud. In addition, NNIT has a strong conscience. Together with our customers, we aim to In 2020, we
Slide 7: Our transitional journey continues
7 Annual Report 2020 Management's Review Our transitional journey continues are tough. We appreciate the enormous ef- While 2020 was a difficult year and a year fort our employees put in daily and we want of transition, we strongly believe that our to take this opportunity to reassure them strategy
Slide 8: Main Highlights 2020
8 Annual Report 2020 Management's Review Main Highlights 2020 Growth in Life Sciences international Operating profit margin Financial strength Free cash flow Before special items Net debt to EBITDA ratio DKK million 26 % 5.8 % 1.2 143 Revenue Dividend payout Average number of full-time 74 DKK millio
Slide 9: 2020 Financial Performance
9 Annual Report 2020 Management's Review 2020 Financial Performance Revenue decrease of 7.5% to DKK 2,830 million and an operating profit margin before special items of 5.8% in 2020. NNIT concluded 2020 in-line with the finan- Novo Nordisk Group increased to 74% in Business and cost restructuring pl
Slide 10: Net financials and tax
10 Annual Report 2020 Management's Review Net financials and tax Life Sciences Denmark Enterprise Public Net financials showed an expense of DKK Revenue from customers in Life Sciences Revenue from Enterprise customers de- Revenue from Public customers increased 20 million in 2020 compared to an inc
Slide 11: Finance, free cash flow and order backlog
11 Annual Report 2020 Management's Review Finance Free cash flow The decrease was mainly due to payment the backlog. Corrected for that, the underly- Revenue from Finance customers decreased The free cash flow for 2020 was DKK 143 of dividends and a negative change in cash ing backlog has increased
Slide 12: Five-Year Performance Highlights
12 Annual Report 2020 Management's Review Five-Year Performance Highlights 2019 2019 DKK million 2020 2019 2018 2017 2016 -2020 DKK million 2020 2019 2018 2017 2016 -2020 Financial performance Financial ratios Revenue: Change Revenue growth -7.5% 1.7% 5.5% 3.1% 6.3% -9.2pp Novo Nordisk Group 732 955
Slide 13: Commercial Highlights 2020
s 13 Annual Report 2020 Management's Review Commercial Highlights JUNE / CONTRACT Seven-year agreement 2020 with Danish Defence Seven-year agreement, with the option to extend by up to three years, with Danish Defence, covering operation of the In 2020, we secured several new contracts, while also e
Slide 14: Commercial Highlights 2020 (continued)
14 Annual Report 2020 Management's Review JULY / PARTNERSHIP SEPTEMBER / CONTRACT NNIT becomes Veeva Premiere Copenhagen Airport Services Partner extends collaboration NNIT becomes one of the first Premiere Extension of agreement with JUNE / CONTRACT Services Partners – the highest partner Copenhage
Slide 15: Outlook 2021
15 Annual Report 2020 Management's Review Outlook 2021 In 2021, growth is expected to return driven Summary of current expectations Currency sensitivities by Life Sciences international and traction Estimated annual impact on NNIT’s Hedging in Winning Solutions. The backlog for 2021 Current operatin
Slide 16: Excellis Health Solutions – an NNIT Group Company
16 Annual Report 2020 Management's Review “We are extremely proud to join the NNIT Group and the journey they are on. By joining a global leading provider of IT services to the life sciences industry, the ACQUISITION Excellis team will have an opportunity to expand much faster, and we believe that t
Slide 17: Our Business
17 Annual Report 2020 Management's Review Our Business Market Trends18 Business Model19 Our The Industries and Customers We Serve20 NNIT Group Overview21 Strategy22 Our People25 Our Responsibility30 Business Update on ESG33 Customer Experience at the Core34 Equity Story35 Insights from the Digital E
Slide 18: Market Trends
18 Annual Report 2020 Management's Review Market Trends NNIT’s focused strategy is strongly aligned with key market trends. Accelerated digital transformation Digital trust and cybersecurity Pre-COVID-19, most organizations were scaling up their digital Data and insights transformation to grasp digi
Slide 19: Business Model
19 Annual Report 2020 Management's Review Business Model Make a mark on Customers Employees Society Shareholders business and society NNIT drives business change and NNIT creates jobs and develops At NNIT, we want to make a mark NNIT intends to deliver a com- transformation at a high pace while tale
Slide 20: The Industries and Customers We Serve
20 Annual Report 2020 Management's Review The Industries and Customers We Serve Our customers around the world are ambitious organizations focused on driving sustainable business change and results. To that end, NNIT makes a mark by successfully delivering a broad range of solutions to enable our cu
Slide 21: NNIT Group Overview
21 Annual Report 2020 Management's Review NNIT Group Overview Group Companies An NNIT Group Company An NNIT Group Company Europe North America Asia Poland USA Singapore Established: 2019 Established: 2001 Established: 2019 Ireland (Pennsylvania, New Thailand Established: 2018 Jersey and California)
Slide 22: Strategy
22 Annual Report 2020 Management's Review Strategy Value creation through customer centricity, Winning Solutions and a strong heritage are key elements in the NNIT strategy moving forward. We implemented several changes to our accelerate our Winning Solutions areas with existing strategy at the star
Slide 23: Value creation: Customer Centricity
23 Annual Report 2020 Management's Review Value creation Proven concept Fit for purpose First time right Customers need a fast and Customers need to-the- Customers expect a safe implementation with point solutions without solution that remedies less risk of delay or redun- any unnecessary features t
Slide 24: Winning Solutions
24 Annual Report 2020 Management's Review Employee Experience Enhance collaboration and Winning Solutions Microsoft Solutions efficiency with a modern digital Production IT workplace. Create a more agile business Ensure Pharma 4.0 readiness in To enable fast value creation with MS Dynamics 365, O365
Slide 25: Our People
25 Annual Report 2020 Management's Review Our People NNIT runs on people power. Together, we make the NNIT wheels spin, working in all time zones for customers around the world. As a business, we are highly dependent on Discover Your Leadership Potential (DYLP) is attracting and retaining the right
Slide 26: Our people are wired to make a mark
26 Annual Report 2020 Management's Review Our people are wired to make a mark The NNIT people are Working at NNIT means being part of an focused and friendly international team with talented colleagues In August 2020, one of our customers who all work 'The NNIT Way'; doing their participated in our
Slide 27: NNIT Leadership Values
27 Annual Report 2020 Management's Review NNIT Leadership Values All 250+ people managers in NNIT lead using three core principles: Inspire We challenge and support our people to make their mark in and with NNIT. Involve We respect and listen to our people. Lead We take the lead to drive our busines
Slide 28: Celebrating our people with Club One
28 Annual Report 2020 Management's Review Celebrating our people with Club One Once a year, 18 NNIT employees are se- or showing an exceptional NNIT attitude, lected to join Club One. Club One members for instance, can qualify you to become a are NNIT employees who deserve special member. recognitio
Slide 29: Our People Highlights
29 Annual Report 2020 Management's Review Our People Highlights Nationalities Number of Gender distribution at NNIT Number of Promotions employees at % certificates held % year-end by employees +60 3,171 32% 68% 5,060 14% Female Male (30% - 2019) Employee turnover Overview of employees' education Em
Slide 30: Our Responsibility
30 Annual Report 2020 Management's Review Our Responsibility To us, putting good IT into practice for our customers also means making a more positive mark on society. In 2020, we continued to be a responsible company, and we embarked on several new initiatives contributing to a more sustainable fut
Slide 31: 2020 Milestones
31 Annual Report 2020 Management's Review 2020 Milestones Helping school children Gender distribution in NNIT podcast: navigate in the digital world Discover Your Leadership Women in Tech NNIT is a founding partner of the Coding Class Potential In 2020, we introduced our podcast series initiative in
Slide 32: Supporting sustainable development in the IT industry
32 Annual Report 2020 Management's Review Supporting sustainable Lowering our CO2 emissions development in the IT In 2020, we began measuring our CO2 emissions industry on a global scale, with the intention of lower- ing them in 2021 and on beyond. This work is NNIT participates in networks and orga
Slide 33: Update on ESG
33 Annual Report 2020 Management's Review Update on ESG Environment Unit 2020 2019 2018 Global electricity consumption* kWh 18,672,030 No data No data Renewable energy share % 95% No data No data * Main office sites in China, Czech Republic, Denmark (incl. two data centers), the Philippines, and the
Slide 34: Customer Experience at the Core
34 Annual Report 2020 Management's Review Customer Experience at the Core In a world of increasing competition, the search for true Annual Experience Quarterly Ongoing End-User differentiation is greater than ever. At NNIT, we believe Survey Satisfaction Survey Survey that we can be different and ma
Slide 35: Equity Story
35 Annual Report 2020 Management's Review Equity Story >20% historical organic revenue growth outside Strong employer brand Denmark Rated as one of the most attractive Previous three years’ IT workplaces in Denmark. Ranked High dividend performance in Life Sciences number five in IT Company Rank 202
Slide 36: Insights from the Digital Engine Rooms
36 Annual Report 2020 Management's Review Insights from the “As the NNIT Expectation Barometer 2020 survey took place during the height of the Digital Engine Rooms coronavirus crisis, we saw some interesting shifts in the answers to several questions. The impact of the crisis has varied from industr
Slide 37: Governance
37 Annual Report 2020 Management's Review Governance Corporate Governance 38 Governance Risk Management 41 Remuneration 44 Shareholder Information 45 Board of Directors 47 Group Management 50
Slide 38: Corporate Governance
38 Annual Report 2020 Management's Review Corporate Governance The Board of Directors of NNIT has a continued Governance structure Both are regarded as representing the Annual general meetings interests of a controlling shareholder. The focus on good governance practices. NNIT is in full The shareho
Slide 39: Corporate governance documentation
39 Annual Report 2020 Management's Review Read more about the members of the Board ings. The members of the Audit Committee The annual self-assessment in 2020 included of Directors on pages 47-49. participated in all meetings in 2020. an assessment of strategy development and Corporate governance im
Slide 40: Risk management and control activities
40 Annual Report 2020 Management's Review gender on the Board. The Board of Direc- Today, NNIT adheres to all but the following tors remains committed to having interna- recommendation: tional members of the Board. Currently, one shareholder-elected Board member is of • 3.4.6 establishing a separate
Slide 41: Risk Management
41 Annual Report 2020 Management's Review Risk Management Operating in a highly competitive and rapidly changing global marketplace, a structured approach to risk management that is applied consistently across the organization is essential for profitable growth. In NNIT, risk management consists of
Slide 42: Key risks: SLA profitability, strategy transformation, Novo Nordisk
42 Annual Report 2020 Management's Review Service level agreement Transformation to the Business with the profitability under pressure revised strategy Novo Nordisk Group Risk description: Risk description: Risk description: SLA revenue constitues more than half of NNIT's total revenue. In order to
Slide 43: Legal risks, Cybersecurity, Talent
43 Annual Report 2020 Management's Review Legal risks, contract management Cybersecurity Attracting and retaining and GDPR policies Risk description: required talent Risk description: Cybersecurity remains one of NNIT’s top risks and could for Risk description: Protecting NNIT’s long-term business i
Slide 44: Remuneration
44 Annual Report 2020 Management's Review Remuneration NNIT has adopted a Remuneration Policy with the preparation of the annual remunera- remuneration components for Executive covering Executive Management and the tion report. Management, and, as a complement to this, Board of Directors Board of Di
Slide 45: Shareholder Information
45 Annual Report 2020 Management's Review Shareholder Information NNIT shares were priced at DKK 121.6 per Share capital and ownership • Novo Holdings A/S, Gentofte, Denmark Treasury shares share at December 31, 2020, for a market NNIT’s share capital amounts to DKK 33.50% directly and 51.00% throug
Slide 46: Dividends and communication with shareholders
46 Annual Report 2020 Management's Review Due to low leverage and positive cash flow Communication with shareholders vide other shareholders and prospective Weidekampsgade 14, 2300 Copenhagen S, generation, the Board of Directors intends to NNIT aims to give investors the best possible shareholders
Slide 47: Board of Directors
47 Annual Report 2020 Management's Review Board of Directors Carsten Dilling Peter Haahr Anne Broeng Chairman of the Board Deputy Chairman of the Board Chairman of the Audit committee Member of the Remuneration Member of the Remuneration Committee Committee Personal and educational Personal and educ
Slide 48: Board of Directors (continued)
48 Annual Report 2020 Management's Review Christian Kanstrup Anders Vidstrup Camilla Krabbe Member of the Audit Committee Employee-elected Kongsted Christensen representative Employee-elected representative Personal and educational Personal and educational Personal and educational background backgro
Slide 49: Board of Directors (continued)
49 Annual Report 2020 Management's Review Eivind Kolding Caroline Serfass Trine Io Bjerregaard Chairman of the Board Member Employee-elected Remuneration Committee representative Member of the Audit Committee Personal and educational Personal and educational Personal and educational background backg
Slide 50: Group Management
50 Annual Report 2020 Management's Review Group Management Jacob Hahn Brit Kannegaard Pernille Fabricius Per Kogut Kasper Søndergaard Ricco Larsen Kristian Lomholt Michelsen Johannessen Andersen Senior Vice President, Senior Vice President, Executive Vice President President and CEO, Senior Vice Pre
Slide 51: Financial Statements 2020
51 Annual Report 2020 Financial Statements 2020 Financial Financial Statements 2020 Management’s Statement 52 Statements 2020 Independent Auditor’s Report 53 Consolidated Financial Statements 56 Parent Company Financial Statements 98 Location / Addresses of NNIT’s offices globally 111
Slide 52: Management's Statement
52 Annual Report 2020 Management's Statement The Board of Directors and the Executive dated financial statements and the parent Soeborg, January 29, 2021 Management (the “Management”) have company financial statements gives a true today discussed and approved the annual and fair view of the Group’s
Slide 53: Independent Auditor's Report
53 Annual Report 2020 Independent Auditor's Report To the Shareholders of NNIT A/S Our opinion In our opinion, the Consolidated Financial Moreover, in our opinion, the Parent Com- What we have audited to 31 December 2020, pp. 98-111, comprise Statements give a true and fair view of the pany Financia
Slide 54: Key Audit Matter: Revenue recognition
54 Annual Report 2020 Key Audit Matter How our audit addressed the Key Audit Matter Revenue recognition which may result in a re-assessment of the We assessed the appropriateness of revenue completion. During the year, we reviewed We focused on revenue recognition related percentage of completion as
Slide 55: Auditor's responsibilities for the audit
55 Annual Report 2020 Auditor’s responsibilities for the Audit of the financial statements Our objectives are to obtain reasonable design audit procedures that are appropri- • Obtain sufficient appropriate audit evi- independence, and to communicate with assurance about whether the Financial ate in
Slide 56: Consolidated Financial Statements
56 Annual Report 2020 Consolidated Financial Statements Consolidated Financial Statements
Slide 57: Income Statement and Statement of Comprehensive Income
57 Annual Report 2020 Consolidated Financial Statements Income Statement of Statement Comprehensive Income for the year ended December 31 for the year ended December 31 DKK million Note 2020 2019 DKK million Note 2020 2019 Revenue 2.1 2,830 3,058 Net profit for the year 76 183 Cost of goods sold 2.2
Slide 58: Balance Sheet
58 Annual Report 2020 Consolidated Financial Statements Balance Sheet as of December 31 ASSETS EQUITY AND LIABILITIES DKK million Note 2020 2019 DKK million Note 2020 2019 Intangible assets 3.1, 5.6 781 524 Share capital 4.2 250 250 Tangible assets 3.3 552 576 Treasury shares 4.2 (3) (4) Lease asset
Slide 59: Statement of Cash Flows
59 Annual Report 2020 Consolidated Financial Statements Statement of Cash Flows for the year ended December 31 DKK million Note 2020 2019 The changes in cash flow cannot all be derived Net profit for the year 76 183 directly from the income statement and balance sheet due to the acquisition of subsi
Slide 60: Statement of Changes in Equity 2020
60 Annual Report 2020 Consolidated Financial Statements Statement of Changes in Equity as of December 31 DKK million Other reserves Exchange Total Share Treasury Retained rate ad- Cash flow other Proposed 2020 Note capital shares earnings justments hedges Tax reserves dividends Total Balance at the
Slide 61: Statement of Changes in Equity 2019
61 Annual Report 2020 Consolidated Financial Statements Statement of Changes in Equity as of December 31 DKK million Other reserves Exchange Total Share Treasury Retained rate ad- Cash flow other Proposed 2019 Note capital shares earnings justments hedges Tax reserves dividends Total Balance at the
Slide 62: Notes to the Consolidated Financial Statements
62 Annual Report 2020 Consolidated Financial Statements Notes to the Consolidated Financial Statements 1. Basis of preparation 3. Operating assets and liabilities 5. Other disclosures 1.1 Summary of significant accounting policies 63 3.1 Intangible assets 75 5.1 Long-term incentives 90 1.2 Summary o
Slide 63: 1. Basis of preparation
63 Annual Report 2020 Consolidated Financial Statements 1. Basis of preparation 1.1 Summary of significant accounting policies The consolidated financial statements are pre- NNIT has two different types of businesses – 'pro- Service Level Agreements (SLA) pared in accordance with International Finan
Slide 64: 1.1 Summary of significant accounting policies – continued
64 Annual Report 2020 Consolidated Financial Statements 1.1 Summary of significant accounting policies – continued 1.3 Changes in accounting policies, estimates and disclosures measured at fair value at the end of the report- When a hedging instrument no longer meets the Adoption of new or amended I
Slide 65: 1.4 General accounting policies
65 Annual Report 2020 Consolidated Financial Statements 1.4 General accounting policies Principles of consolidation If the initial accounting for business combination bles and liabilities in foreign currencies that have activities and are non-recurring of nature. Such can be determined only prelimin
Slide 66: 1.4 General accounting policies – continued
66 Annual Report 2020 Consolidated Financial Statements 1.4 General accounting policies – continued Deferred tax is measured on the basis of the Any development projects that do not meet the The depreciable amount of the assets is depreci- NNIT has three different types of leases: tax rules and tax
Slide 67: 1.4 General accounting policies – continued
67 Annual Report 2020 Consolidated Financial Statements 1.4 General accounting policies – continued Prepayments relevant NNIT employees provided the related an accustomed self-investment with reference Other current liabilities Prepayments comprise costs incurred for the next service. to the IPO Lau
Slide 68: 1.5 Financial definitions
68 Annual Report 2020 Consolidated Financial Statements 1.5 Financial definitions Operating profit margin = Operating profit x 100 Non-IFRS financial measures Revenue In the Annual Report, NNIT discloses certain Backlog Gross profit margin = Gross profit x 100 financial measures of the Group's finan
Slide 69: 2. Results for the year
69 Annual Report 2020 Consolidated Financial Statements 2. Results for the year 2.1 Segment information NNIT delivers services and solutions through two business units, Life sciences and Private & Public, each responsible for delivering a number of services to customers. The Life sciences business u
Slide 70: 2.2 Employee costs
70 Annual Report 2020 Consolidated Financial Statements 2.2 Employee costs 2.2 Employee costs – continued DKK million 2020 2019 Group Management's remuneration and share-based payment 2020 Employee costs comprise: Other Wages and salaries 1,563 1,629 members of Share-based payments 14 13 Executive G
Slide 71: 2.2 Employee costs – continued
71 Annual Report 2020 Consolidated Financial Statements 2.2 Employee costs – continued 2.3 Development costs Short-term incentive program (STIP) DKK million 2020 2019 Group Management and certain other employees participate in a STIP program, which entitles each participant to receive an annual perf
Slide 72: 2.6 Income taxes
72 Annual Report 2020 Consolidated Financial Statements 2.6 Income taxes DKK million 2020 2019 Current tax 33 47 Deferred tax (10) 4 Adjustments recognized for current tax of prior periods (11) (3) Adjustments recognized for deferred tax of prior periods 12 - Withholding tax not deductible 2 - Incom
Slide 73: 2.6 Income taxes – continued
73 Annual Report 2020 Consolidated Financial Statements 2.6 Income taxes – continued Deferred taxes Lease receivables Share Cash Intangible Tangible Current and based flow DKK million assets assets assets liabilities programs hedges Provisions Total 2020 Deferred tax asset At the beginning of the ye
Slide 74: 2.6 Income taxes – continued
74 Annual Report 2020 Consolidated Financial Statements 2.6 Income taxes – continued DKK million 2020 2019 Tax payable/receivable Tax payable/receivable at the beginning of the year 2 (6) Adjustment hereto - 2 Income tax paid during the year 46 47 Tax paid related to previous years (6) (1) Withholdi
Slide 75: 3. Operating assets and liabilities
75 Annual Report 2020 Consolidated Financial Statements 3. Operating assets and liabilities 3.1 Intangible assets IT Other IT development intangible development projects under DKK million Goodwill assets projects construction 2020 2020 Cost at the beginning of the year 448 34 105 28 615 Additions fr
Slide 76: 3.1 Intangible assets – continued
76 Annual Report 2020 Consolidated Financial Statements 3.1 Intangible assets – continued IT Other IT development intangible development projects under DKK million Goodwill assets projects construction 2019 2019 Cost at the beginning of the year 367 30 85 15 497 Adjustment to cost at the beginning o
Slide 77: 3.2 Impairment test
77 Annual Report 2020 Consolidated Financial Statements 3.2 Impairment test Goodwill The carrying amount of goodwill is impairment tested by comparison to the recoverable amount. The recoverable amount for Excellis is determined based on fair value less cost to sell. For the remain- ing CGU’s the fa
Slide 78: 3.3 Tangible assets
78 Annual Report 2020 Consolidated Financial Statements 3.3 Tangible assets Payments on account and Land and Other Leasehold assets under DKK million buildings equipment improvements construction 2020 2020 Cost at the beginning of the year 373 781 55 46 1,255 Additions 13 56 - 26 95 Disposals - (148
Slide 79: 3.3 Tangible assets – continued
79 Annual Report 2020 Consolidated Financial Statements 3.3 Tangible assets – continued Payments on account and Land and Other Leasehold assets under DKK million buildings equipment improvements construction 2019 2019 Cost at the beginning of the year 373 1,025 67 21 1,486 Adjustment (2) 2 - - - Add
Slide 80: 3.4 Contract balances
80 Annual Report 2020 Consolidated Financial Statements 3.4 Contract balances 3.4 Contract balances – continued Contract balances consist of customer-related assets and liabilities regarding service level agreements. Future contract obligations Below table shows performance obligations resulting fro
Slide 81: 3.6 Trade receivables, 3.7 Work in progress, 3.8 Employee benefits
81 Annual Report 2020 Consolidated Financial Statements 3.6 Trade receivables – continued 3.8 Employee benefit obligations NNIT applies the IFRS 9 simplified approach to measure expected credit losses, which uses a lifetime Defined benefit pension obligations expected loss allowance for all trade re
Slide 82: 3.8 Employee benefit obligations – continued
82 Annual Report 2020 Consolidated Financial Statements 3.8 Employee benefit obligations – continued 3.9 Contingent consideration – continued 2020 2019 SCALES In March 2020 the earn-out regarding SCALES was settled at an amount of DKK 55.8 million whereof Assumptions used for valuation1 DKK 51.6 was
Slide 83: 3.10 Provisions
83 Annual Report 2020 Consolidated Financial Statements 3.10 Provisions DKK million 2020 2019 Provision for onerous contracts/projects At the beginning of the year 4 - Additions - 6 Utilized (3) - Transferred to work in progress - (2) At the end of the year 1 4 Provision for onerous contracts/projec
Slide 84: 4. Capital structure and financing items
84 Annual Report 2020 Consolidated Financial Statements 4. Capital structure and financing items 4.1 Financial income and expenses 4.2 Share capital, distribution to shareholder and earnings per share – continued DKK million 2020 2019 Earnings per share and diluted earnings per share are calculated
Slide 85: 4.3 Leases
85 Annual Report 2020 Consolidated Financial Statements 4.3 Leases 4.3 Leases – continued Lease assets Lease liabilities Rental of IT- Lease liabilities expiring within the following periods from the balance sheet date: DKK million premises equipment Company cars 2020 DKK million 2020 2019 Costs at
Slide 86: 4.4 Financial assets and liabilities
86 Annual Report 2020 Consolidated Financial Statements 4.4 Financial assets and liabilities Depending on the purpose of each asset and liability, NNIT classifies these into the following categories: • Cash and cash equivalents • Cash flow hedging instruments at fair value • Financial assets at fair
Slide 87: 4.4 Financial assets and liabilities – continued
87 Annual Report 2020 Consolidated Financial Statements 4.4 Financial assets and liabilities – continued 4.4 Financial assets and liabilities – continued Financial liabilities Financial liabilities Bank Lease Contingent at fair value through measured at DKK million overdraft1 liability consideration
Slide 88: 4.4 Financial assets and liabilities – continued
88 Annual Report 2020 Consolidated Financial Statements 4.4 Financial assets and liabilities – continued 4.4 Financial assets and liabilities – continued Financial assets and liabilities at fair value through comprehensive income are categorized in the fair The isolated currency effect on profit bef
Slide 89: 4.4 Financial assets and liabilities – continued
89 Annual Report 2020 Consolidated Financial Statements 4.4 Financial assets and liabilities – continued 4.4 Financial assets and liabilities – continued As of December 31, 2020 NNIT A/S' hedge contracts covered the period from January 2021 to February Capital management 2022. Taking into account co
Slide 90: 5. Other disclosures
90 Annual Report 2020 Consolidated Financial Statements 5. Other disclosures 5.1 Long-term incentives Long-term share-based incentive program Group Management and the Vice Presidents are included in a long-term share-based incentive program. For more information regarding the long-term share-based i
Slide 91: 5.1 Long-term incentives – continued
91 Annual Report 2020 Consolidated Financial Statements 5.1 Long-term incentives - continued Outstanding restricted stock units (in NNIT shares) At the Value at beginning Forfeiture/ launch date Vesting Number '000 of the year Issued transferred Outstanding (DKK'000) year 2020 Shares allocated to Gr
Slide 92: 5.1 Long-term incentives – continued
92 Annual Report 2020 Consolidated Financial Statements 5.1 Long-term incentives - continued Outstanding restricted stock units (in NNIT shares) At the Value at beginning Forfeiture/ launch date Vesting Number '000 of the year Issued transferred Outstanding (DKK'000) year 2019 Shares allocated to Gr
Slide 93: 5.2 Board and Management holdings of NNIT shares
93 Annual Report 2020 Consolidated Financial Statements 5.2 The Board of Directors and Group Management's holdings of NNIT shares Sold/ At the Additions transferred At the Market beginning of during during end of value Number the year 1 the year the year the year (DKK'000) 2020 Carsten Dilling 2,740
Slide 94: 5.3 Auditor fees and cash flow specifications
94 Annual Report 2020 Consolidated Financial Statements 5.3 Fee to statutory auditors 5.5 Statement of cash flows - specifications DKK million 2020 2019 DKK million 2020 2019 Statutory audit 1.9 2.0 Changes in working capital Audit-related services 0.2 0.2 Increase/(decrease) in current receivables
Slide 95: 5.6 Acquisition of subsidiaries
95 Annual Report 2020 Consolidated Financial Statements 5.6 Acquisition of subsidiaries The fair value of net assets acquired and goodwill at the date of acquisition is Acquisitions during 2020 summarized below: On November 16, 2020, NNIT acquired full ownership and control of Excellis, a leading sp
Slide 96: 5.7 Contingent liabilities and related parties
96 Annual Report 2020 Consolidated Financial Statements 5.7 Contingent liabilities, other contractual obligations and legal proceedings 5.8 Related party transactions and ownership DKK million 2020 2019 Ownership NNIT A/S is controlled by Novo Holdings A/S, of which the Novo N ordisk Foundation is
Slide 97: 5.8 Related party transactions and ownership – continued
97 Annual Report 2020 Consolidated Financial Statements 5.8 Related party transactions and ownership – continued 5.9 Events after the balance sheet date DKK million 2020 2019 There have been no other events after the balance sheet date which would have a significant impact on an assessment of NNIT's
Slide 98: Parent Company Financial Statements
98 Annual Report 2020 Parent Company Financial Statements Parent Company Financial Statements
Slide 99: Income Statement
99 Annual Report 2020 Parent Company Financial Statements Income Statement for the year ended December 31 DKK million Note 2020 2019 Revenue 2,255 2,521 Cost of goods sold 2.1 2,014 2,218 Gross profit 241 303 Sales and marketing costs 2.1 127 113 Administrative expenses 2.1 99 90 Operating profit be
Slide 100: Balance Sheet
100 Annual Report 2020 Parent Company Financial Statements Balance Sheet as of December 31 ASSETS EQUITY AND LIABILITIES DKK million Note 2020 2019 DKK million Note 2020 2019 Intangible assets 3.1 89 63 Share capital 250 250 Tangible assets 3.2 548 571 Retained earnings 643 678 Lease assets 4.3 182
Slide 101: Statement of Changes in Equity 2020
101 Annual Report 2020 Parent Company Financial Statements Statement of Changes in Equity as of December 31 DKK million Reserve Reserve IT- cash Share Treasury Retained development flow Proposed 2020 capital share earnings projects hedges dividends Total Balance at the beginning of the year 250 (4)
Slide 102: Statement of Changes in Equity 2019
102 Annual Report 2020 Parent Company Financial Statements Statement of Changes in Equity as of December 31 DKK million Reserve IT- Cash Share Treasury Retained development flow Proposed 2019 capital share earnings projects hedges dividends Total Balance at the beginning of the year 250 (5) 668 26 5
Slide 103: Notes to the Parent Company Financial Statements
103 Annual Report 2020 Parent Company Financial Statements Notes to the Parent Company Financial Statements 1. Basis of preparation 4. Capital structure and financing items 1.1 Accounting policies 104 4.1 Financial income 108 4.2 Financial expenses 108 4.3 Leases 108 2. Results for the year 4.4 Deri
Slide 104: 1. Basis of preparation; 2. Results for the year
104 Annual Report 2020 Parent Company Financial Statements 1. Basis of preparation 2. Results for the year 1.1 Accounting policies 2.1 Employee cost The parent company financial statements are presented in accordance with The Danish Financial DKK million 2020 2019 Statements Act (class D) and other
Slide 105: 3. Operating assets and liabilities
105 Annual Report 2020 Parent Company Financial Statements 3. Operating assets and liabilities 3.1 Intangible assets IT development IT development projects under DKK million projects construction 2020 2019 Cost at the beginning of the year 105 28 133 100 Additions - 40 40 33 Disposals (16) - (16) -
Slide 106: 3.2 Tangible assets
106 Annual Report 2020 Parent Company Financial Statements 3.2 Tangible assets Payments on account and Land and Other Leasehold assets under DKK million buildings equipment improvements construction 2020 2019 Cost at the beginning of the year 373 775 39 46 1,233 1,464 Additions 13 55 - 26 94 134 Dis
Slide 107: 3.3 Financial assets; 3.4 Provisions
107 Annual Report 2020 Parent Company Financial Statements 3.3 Financial assets Investment in DKK million Deposits subsidiaries 2020 2019 Cost Cost at the beginning of the year 26 364 390 298 Additions - 12 12 92 Adjustment - 30 30 - Cost at the end of the year 26 406 432 390 Carrying amount at the
Slide 108: 4. Capital structure and financing items
108 Annual Report 2020 Parent Company Financial Statements 4. Capital structure and financing items 4.1 Financial income 4.3 Leases DKK million 2020 2019 Lease assets Rental of IT- Interest income from related parties 3 5 DKK million premises equipment Company cars 2020 Fair value adjustments of fin
Slide 109: 4.3 Leases – continued; 4.4 Derivative financial instruments
109 Annual Report 2020 Parent Company Financial Statements 4.3 Leases – continued Lease liabilities Lease liabilities expiring within the following periods from the balance sheet date: DKK million 2020 2019 Within 1 year 55 74 Between 1 and 5 years 152 194 After 5 years 4 1 Total lease liability, no
Slide 110: 5. Other disclosures
110 Annual Report 2020 Parent Company Financial Statements 5. Other disclosures 5.1 Fee to statutory auditors 5.2 Contingent liabilities, other contractual obligations and legal proceedings – continued DKK million 2020 2019 DKK million 2020 2019 Statutory audit 1.5 1.4 Other assurance engagements 0.
Slide 111: Headquarter and international offices
Headquarter International Design and production: MeyerBukdahl . Photography: Getty Images, iStock and NNIT NNIT A/S NNIT Switzerland AG NNIT (Tianjin) NNIT Czech Republic s.r.o Oestmarken 3A St. Alban-Vorstadt 94 Technology Co. Ltd. Explora Jupiter DK-2860 Soeborg CH-4052 Basel 20th floor, Building