Slide 1: NNIT Q1 2018
NNIT Ql 2018 May 16, 2018 NNIT
Slide 2: The NNIT Presenting Team
The NNIT Presenting Team Per Ove Kogut Chief Executive Officer Carsten Krogsgaard Thomsen Chief Financial Officer Klaus Hosbond Skovrup Head of Investor Relations 2
Slide 3: Agenda
Agenda Highlights for first quarter 2018 Sales and backlog Financial performance Outlook for 2018 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: Q1 2018 at a glance
Q1 2018 at a glance Revenue Operating profit Operating profit margin DKK 699m DKK 61m 8.7% -2.3% -19% -1.8pp -1.1pp F/X +2.4pp F/X +0.3pp F/X Net profit Order backlog for 2018 Free cash flow DKK 46m DKK 2,487m DKK 143m -18% +2.8% -12% 5
Slide 6: Major wins
Major wins Amount Length Contract Segment Client (DKK million) (years) Infrastructure and application maintenance outsourcing STARK Danmark Lower medium-size Enterprise 4 contract, (Press release February 22, 2018) A/S three-digit New infrastructure outsourcing contract Enterprise Existing customer
Slide 7: STARK Danmark A/S contract
STARK Danmark A/S contract NNIT will take over IT infrastructure, operations, support, and application maintenance and development. Beyond high quality, security, stability, NNIT will throughout the next minimum four years secure the further development of STARK's IT-infrastructure, business applica
Slide 8: Backlog development, current year
Backlog development, current year Beginning of quarter +2.8% DKKm (+68) Backlog for 2018 is DKK 2,487m, which is 3,000 an increase of 2.8% compared to same 2,710 2,673 time in 2017. 2,419 2,487 2,500 2,213 • The Novo Nordisk backlog declined 2,127 with 9.4%, while other customers 2,000 1,556 1,566 i
Slide 9: Backlog development, following two calendar years
Backlog development, following two calendar years Beginning of quarter +20.4% DKKm (+435) The backlog for 2019 and 2020 3,000 2,824 increased 20.4% y-o-y to DKK 2,712 2,564 2,564m. 2,500 2,324 • The increase in order entry 2,129 2,046 backlog is due to extension of the 2,000 1,595 1,471 1,448 +8.3%
Slide 10: Financial statement Q1 2018
Financial statement Q1 2018 Revenue decline of 2.3% was negatively impacted DKK million by a 20% decline in revenue from the Novo Nordisk Q1 2018 Q1 2017 Change (reported currencies) Group and the timing of Easter (impact of Revenue 698.5 715.1 -2.3% approximately 2.0pp) Cost of goods sold 579.1 579
Slide 11: Segment development
Segment development DKKm Pct Change Q1 2018 Q1 2017 (reported currencies) (reported) Novo Nordisk Group 256.1 320.9 -20.2% Other Life Sciences 99.2 88.6 12.0% Enterprise 187.3 151.0 24.0% Public 99.4 86.1 15.4% Finance 56.6 68.4 -17.3% Total 698.5 715.1 -2.3% Total revenue growth was impacted negati
Slide 12: IT Operation Services
IT Operation Services DKK million Q1 2018 Q1 2017 Change (reported currencies) Revenue Novo Nordisk Group 169.9 225.0 -24.5% Non-Novo Nordisk Group 255.7 247.7 3.2% Total 425.6 472.7 -10.0% Costs 393.3 421.8 -6.8% Operating profit 32.3 50.9 -36.5% Operating profit margin 7.6% 10.8% -3.2pp Revenue de
Slide 13: IT Solution Services
IT Solution Services DKK million Q1 2018 Q1 2017 Change (reported currencies) Revenue Novo Nordisk Group 86.2 95.9 -10.1% Non-Novo Nordisk Group 186.7 146.5 27.5% Total 272.9 242.4 12.6% Costs 244.5 218.3 12.0% Operating profit 28.4 24.1 17.8% Operating profit margin 10.4% 9.9% 0.5pp Revenue increas
Slide 14: Currency development and hedging
Currency development and hedging CNY/DKK CNY USD/DKK USD PHP/DKK PHP 110 720 16.0 105 700 15.5 CNY has been relatively flat lately versus DKK, whereas USD and PHP 15.0 680 14.5 100 have been depreciating. CZK has 14.0 660 95 13.5 640 continued the appreciation 13.0 90 620 12.5 against DKK. 85 12.0 6
Slide 15: Net Financials
Net Financials Net financials DKKm Q1 2018 Q1 2017 Change Net financials for Q1 2018 were Net loss on Novo Nordisk shares* 0.0 -0.6 0.6 DKK -2.0m, which was DKK 1.7m Dividends received from Novo Nordisk shares 0.0 0.2 -0.2 better than Q1 2017. Total Novo Nordisk share related items 0.0 -0.4 0.4 Curr
Slide 16: Employee development
Employee development Number of employees increased by 8.1% to 3,101 FTE end of March 2018. This increase was primarily driven by the acquisition of SCALES FTEs +8.1% (121 FTE) and inclusion of around 50 (+234) employees taken over from STARK. 3,500 3,030 3,101 3,000 2,868 2,965 2,999 Excluding SCALE
Slide 17: Balance sheet
Balance sheet Assets Equity and liabilities Q1 2018 Q1 2017 Q1 2018 Q1 2017 DKKm DKKm Intangible assets1 210.0 32.9 Share capital 250.0 250.0 Tangible assets2 940.6 856.3 Treasury shares -4.7 -7.5 Contract assets 173.6 160.7 Retained earnings 623.1 589.3 Deferred tax 57.8 52.0 Other reserves 11.2 14
Slide 18: Cash flows
Cash flows Cash flow Cash flow from operating activities was DKKm Q1 2018 Q1 2017 Change DKK 172.5m, which was DKK 57.8m lower Net profit for the period 45.8 56.0 -10.2 than Q1 2017 due lower effect from Reversal of non-cash items 79.6 68.6 11.0 changes in working capital. Trade Net interest and tax
Slide 19: Outlook
Outlook 2018 Previous guidance Revenue Constant currencies: 3-6% Constant currencies: 4-7% growth* Reported currencies: 0.3pp lower Reported currencies: 0.4pp lower The expectations for growth in revenue is based on the restated IFRS 15 revenue of DKK 2,851m. Operating Constant currencies: 10-10.5%
Slide 20: Closing remarks
Closing remarks • Disappointing revenue decline of 20% from the Novo Nordisk Group • However, strong growth from particularly the enterprise and international life science customer groups • Strong positive impact from the acquisition of SCALES • Unchanged operating profit margin adjusted for timing
Slide 21: Investor contact information
Investor contact information Upcoming events August 17, 2018: Interim report for the first six months of 2018 August 22, 2018: Interim dividend ex dividend date August 23, 2018: Interim dividend record date August 24, 2018: Interim dividend payment date October 25, 2018: Interim report for the first