Slide 1: First three months 2019
First three months 2019
Slide 2: The NNIT Presenting Team
The NNIT Presenting Team PER OVE KOGUT CARSTEN KROGSGAARD KLAUS HOSBOND SKOVRUP Chief Executive Officer THOMSEN Head of Investor Relations Chief Financial Officer 2
Slide 3: Agenda
Agenda 01 Highlights for Q1 2019 02 Sales per business unit and backlog 03 Financial performance 04 Outlook for 2019
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 2019 at a glance
Q1 2019 at a glance Revenue Operating profit Operating profit margin DKK 750m DKK 46m 6.1% +7.4% -25% -2.6pp +0.9pp F/X -2.7pp F/X -0.2pp F/X Net profit Order backlog addition Free cash flow DKK 40m DKK 345m DKK -28m -12% +26% DKK -171m 5
Slide 6: Major wins
Major wins Amount Length Contract Segment Client (DKK million) (years) Extension of infrastructure outsourcing agreement Public DSB High double-digit 2 (Press release January 22, 2019) Q1 Extension and expansion of a Compliance as a Service International Existing 2019 Mid-size double-digit 2 agreeme
Slide 7: Backlog development, current year
Backlog development, current year Beginning of quarter +1.2% DKKm (+30) 3,000 2,846 2,682 2,487 395 2,517 2,500 368 19.1% 2,213 344 2,171 410 (+66) 2,000 288 319 1,067 1,024 -7.7% 944 871 1,500 851 821 (-72) 1,000 1,383 +3.0% 1,199 1,290 1,235 500 1,074 1,031 (+36) 0 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2
Slide 8: Backlog development, following two calendar years
Backlog development, following two calendar years Beginning of quarter DKKm -3.8% (-99) 3,500 3,102 3,000 2,742 348 2,564 2,465 2,500 2,324 319 2,404 -42.3% 310 173 179 (-131) 293 1,288 2,000 1,176 928 941 -15.7% 1,116 1,500 1,089 (-175) 1,000 1,466 +18.2% 1,138 1,246 1,304 1,346 500 942 (+207) 0 Q1
Slide 9: Financial statement Q1 2019
Financial statement Q1 2019 Revenue growth of 7.4% in Q1 2018 was driven by an increase in the international DKK million Q1 2019 Q1 2018 Change life sciences and finance customer groups of 73% (organic 27%) and 28%, respectively. Revenue 750.0 698.5 7.4% Cost of goods sold 645.5 579.1 11.5% Cost of
Slide 10: Life Sciences
Life Sciences Revenue increased by 9.7% in Q1 2019: • Novo Nordisk Group increased by 1.1% in Q1 2019 compared to the DKKm Q1 2019 Q1 2018 Change 2018 same period last year Novo Nordisk Group 258.8 256.1 1.1% 1,124.2 • Life sciences international increased by 73% in Q1 2019 compared to Life sciences
Slide 11: Private & Public
Private & Public Revenue increased by 4.9% in Q1 2019: • Enterprise clients increased by 5.9% in Q1 2019 compared to the same period last year driven by the new STARK contract which was included in the numbers from March 2018 and a number of smaller clients DKKm Q1 2019 Q1 2018 Change 2018 • Public
Slide 12: Currency development and hedging
Currency development and hedging CNY/DKK CNY PHP/DKK PHP CZK/DKK CZK 105 16.0 30 100 15.5 15.0 29 CNY, PHP, USD and EUR have 14.5 28 appreciated versus DKK in Q1 2018, 95 14.0 13.5 27 whereas CHF and CZK are fairly stable. 90 13.0 26 12.5 85 12.0 25 In Q1 2019, our operating profit 11.5 80 11.0 24 m
Slide 13: Net Financials
Net Financials Net financials Net financials for Q1 2019 were DKK 5.8m, Q1 2019 Q1 2018 Change DKKm which was an improvement of DKK 7.8m Currency hedge gains 6.8 0.8 6.0 compared to Q1 2018. Currency gains (losses) 2.3 -0.1 2.4 Total currency related items 9.1 0.7 8.4 This was due to: Interest expen
Slide 14: Employee development
Employee development +5.3% FTEs (+165) Number of employees increased by 5.3% 3,500 to 3,266 FTE at the end of Q1 2019. This 3,214 3,266 increase was primarily driven by Philippines 3,101 3,122 3,155 3,000 (75 FTEs) and China (34 FTEs) in-line with the long-term offshoring strategy. 2,500 +10.4% Grow
Slide 15: Balance sheet
Balance sheet Assets 31 Mar 31 Mar Equity and liabilities 31 Mar 31 Mar DKKm 2019 2018 DKKm 2019 2018 Intangible assets 1 430.9 210.0 Share capital 250.0 250.0 Tangible assets 594.9 588.2 Treasury shares -4.1 -4.7 Lease assets 364.4 352.5 Retained earnings 802.0 672.1 Contract assets 106.3 97.6 Othe
Slide 16: Cash flows
Cash flows Cash flow Q1 2019 Q1 2018 Change Cash flow from operating activities was DKK 26m in DKKm Q1 2019, which was DKK 146m below Q1 2018 due Net profit for the period 40.2 45.8 -5.6 Reversal of non-cash items 82.0 79.6 2.4 to changes in working capital. Primarily within trade Net interest and t
Slide 17: Outlook
Outlook 2019 Previous guidance Revenue Constant currencies: 3-6% Constant currencies: 3-6% growth Reported currencies: 0.7pp higher Reported currencies: 0.3pp higher Operating Constant currencies: 8-9% Constant currencies: 10-10.5% profit margin Reported currencies: 0.4pp lower Reported currencies:
Slide 18: Closing remarks
Closing remarks • Revenue growth of 7.4% in Q1 2019 driven by growth in the international life sciences and finance customer groups of 73% and 28% • Revenue growth was 11% (7.1% organic) excluding business from Novo Nordisk Group in Q1 2019 • Disappointing operating profit margin of 6.1% in Q1 2019
Slide 19: Investor contact information
Investor contact information Upcoming events Investor contact August 14, 2019: • Interim report for the first six months of 2019 October 24, 2019: • Interim report for the first nine months of 2019 KLAUS HOSBOND SKOVRUP Head of Investor Relations NNIT A/S Østmarken 3A, 2860 Søborg, Denmark +45 3079