Slide 1: NNIT full-year report 2015
NNIT full-year report 2015 27 January 2016
Slide 2: The NNIT Presenting Team
The NNIT Presenting Team Per Ove Kogut Carsten Krogsgaard Thomsen Chief Executive Officer Chief Financial Officer Jesper Wagener Head of Investor Relations 2
Slide 3: Agenda
Agenda Highlights for 2015 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: 2015 at a glance
2015 at a glance Constant Reported vs. 2014 vs. 2014 currencies currencies (constant curr.) (reported curr.) Revenue DKK 2,579m DKK 2,600m +7.0% +7.9% Operating profits DKK 300m DKK 269m +13.0% +1.4% Operating profit margin 11.6% 10.3% +0.6pp -0.7pp Net profits DKK 212m +1.5% Order backlog (2016) DK
Slide 6: Backlog development
Backlog development Backlog for 2016 is DKK 2,020m, which is an increase of 5.4% compared to the start of 2015: • New contracts with customers in the enterprise and finance customer groups • Extension and expansion of infrastructure and support agreements with Novo Nordisk • Partly countered by the
Slide 7: oeenee
oeenee Leadership Vision Mission Values principles NNIT Way Go to market Competitiveness : Global delivery capacity . . . Life sciences growth bf . TEETUSEUTUOTERTE TEE AUT UCU re PTRETTURETELEEL ELIE EE EEE es . TECEECTORCOCC OLE ee eee eee eee
Slide 8: Strategic optimization
Strategic optimization An organizational alignment to increase focus on Life Sciences Consolidate Target: Increase Life Science focus to enable larger deals and at a faster pace. International Life Sciences Solution: Consolidate International LS sales (excl. NN) and Cloud offerings into IT Solutions
Slide 9: Financial statement
Financial statement Pct/pp Pct/pp 2015 2015 DKK million 2014* Change Change (reported) (constant*) (reported) (constant) Revenue 2,600.3 2,579.0 2,410.4 7.9% 7.0% Cost of goods sold 2,083.0 2,036.3 1,930.7 7.9% 5.5% Gross profit 517.3 542.7 479.7 7.8% 13.1% Gross profit margin 19.9% 21.0% 19.9% -0.2
Slide 10: Segment development
Segment development Revenue Revenue Revenue Pct Change Pct Change DKKm 2015 2015 2014* (reported) (constant) (reported) (constant*) Life Sciences 1,649.7 1,629.1 1,546.8 6.7% 5.3% Hereof Novo Nordisk Group 1,315.8 1,304.5 1,260.3 4.4% 3.5% Hereof other Life Sciences 334.0 324.6 286.6 16.5% 13.3% Pub
Slide 11: Costs
Costs Total costs DKK 2,331m (8.7%) Currency headwinds influence costs of NNIT’s offshore delivery centers • 2015 impact DKK 52m In constant currencies costs increased 6.3% • Increased employee costs caused by revenue growth • IPO launch program (starting March 2015) • Expanded office facilities • S
Slide 12: IT Solutions
IT Solutions Pct/pp Pct/pp 2015 2015 2014* Change Change (reported) (constant*) DKK million (reported) (constant*) Revenue Novo Nordisk Group 425.9 424.3 393.1 8.3% 7.9% Non-Novo Nordisk Group 434.0 425.9 350.1 23.9% 21.6% Total 859.9 850.2 743.3 15.7% 14.4% Costs 763.0 748.5 666.3 14.5% 12.3% Opera
Slide 13: IT Operations
IT Operations Pct/pp Pct/pp 2015 2015 2014* Change Change (reported) (constant*) DKK million (reported) (constant*) Revenue Novo Nordisk Group 889.9 880.2 867.1 2.6% 1.5% Non-Novo Nordisk Group 850.5 848.6 800.0 6.3% 6.1% Total 1,740.4 1,728.8 1,667.1 4.4% 3.7% Costs 1,568.2 1,530.7 1,478.7 6.0% 3.5
Slide 14: Net Financials
Net Financials Net financials Net financials for 2015 are DKKm 2015 2014 Change Net gains on Novo Nordisk shares* 4.1 1.3 2.8 DKK 3.1m primarily due to: Dividends received from Novo Nordisk shares 0.7 1.1 -0.4 • Net gains on Novo Nordisk shares held Total Novo Nordisk share related items 4.8 2.4 2.3
Slide 15: Currency development and hedging
Currency development and hedging Avg. Rates Spot rates y-o-y Currencies that NNIT is exposed vs. DKK 12M 2015 9M 2015 6M 2015 3M 2015 31 Dec '15 30 Sep '15 30 Jun '15 31 Mar '15 change CHF 698,88 702,66 706,19 705,44 690,08 683,44 716,45 713,92 13,9% to are still significantly higher CNY 107,04 106,
Slide 16: Investments
Investments • Investments in 2015 were DKK 136.0m, which is DKK 19.2m lower than 2014 • Investments in 2015 were 5.2% of revenue 16
Slide 17: Data center
Data center • Throughout 2015 NNIT has worked on optimizing the capacity utilization of our own data center as well as achieving the optimal split between our own and rented data center capacity • Based on this, NNIT decided not to invest in a new data center in 2015 • A future decision on building
Slide 18: Employee development
Employee development Number of employees increased by 6% to 2,538 FTE end of December 2015 • Since September 30, 2015 manning was unchanged, however manning in low cost countries increased net 21 FTE Largest growth came in low cost countries • Increase of 1114 FTE (13.8%) compared to end of December
Slide 19: Balance sheet
Balance sheet Assets Equity and liabilities DKKm 2015 2014 DKKm 2015 2014 Intangible assets 27.6 35.4 Share capital 250.0 250.0 Tangible assets 402.2 401.3 Treasury shares -7.5 0.0 Deferred tax 43.9 5.6 Retained earnings 396.0 344.7 Other financial assets 28.3 22.3 Other reserves 5.4 5.8 Total non-c
Slide 20: Cash flows
Cash flows Cash flow Net cash flow is DKK 33m, which is DKKm 2015 2014 DKK 171m higher than 2014. Net profit for the period 212.4 209.3 Reversal of non-cash items 235.2 197.9 Net interest and taxes paid -80.5 -82.3 Cash flow from operating activities is Changes in working capital -10.4 -9.7 DKK 357m
Slide 21: Leadership
Leadership Vision Mission Values principles Go to market Global delivery capacity Life sciences growth ee ee ee ee
Slide 22: Operational Excellence
Operational Excellence 2015 • We have initiated several initiatives within IT Operations during 2015 as communicated in 6M Financial reporting in August 2015, and we are starting to see the effects in Q4 2015 • The delivery capacity is now calibrated to our 2016 expectations for IT Operations IT Ope
Slide 23: Leadership
Leadership Vision Mission Values principles Go to market Competitiveness Global delivery capacity ee ee ee ee
Slide 24: Three key areas will drive IT investments in the LS industry
Three key areas will drive IT investments in the LS industry Business and Technology trends Regulatory trends LS trends • The ”CFO” agenda is driving • ”The upgrading dilemma” is • Standardization and cost focus and focus on IT driving companies toward integration and business operational BPaaS and
Slide 25: Dynamic Regulatory Environment Drives Heavier IT Investments
Dynamic Regulatory Environment Drives Heavier IT Investments 25
Slide 26: Examples of regulatory driven offerings
Examples of regulatory driven offerings 26
Slide 27: Examples of regulatory driven offerings
Examples of regulatory driven offerings 27
Slide 28: Enterprise Hybrid Cloud
Enterprise Hybrid Cloud Security, integration and orchestration GxP Cloud Existing Private GxP Cloud Launched 2012 Next version Private NNIT + Public Microsoft Azure Public GxP Cloud Exp. Launch 2016 Hybrid Cloud combines Awarded Microsoft Cloud public cloud scale with Solution Provider status enter
Slide 29: Outlook
Outlook 2016 Long-term At least 5% in constant currencies Revenue Target average growth in revenue of growth Around 0.0pp lower in reported at least 5% in constant currencies currencies 10-11% in constant currencies Target average operating profit Operating Around 0.3pp higher in reported margin of
Slide 30: Closing remarks
Closing remarks • Solid overall results in-line with guidance • Revenue growth continued in 2015 • Strong operating profit margins despite currency headwinds • Dividends proposed of DKK 4.00 per share • In 2016 we expect revenue growth of at least 5% and 10-11% operating profit margin • Continued st
Slide 31: Investor contact information
Investor contact information Upcoming events March 11, 2016: Annual General Meeting May 13, 2016: Financial statement for the first three months of 2016 August 16, 2016: Financial statement for the first six months of 2016 Investor contact NNIT A/S Østmarken 3A 2860 Søborg Denmark Jesper Wagener +45