Slide 1: NNIT – Our growth strategy
NNIT – Our growth strategy Dansk Aktionærforenings InvestorDagen 2015
Slide 2: Disclaimer
Disclaimer This presentation has been prepared and issued by, and is the sole responsibility of, NNIT A/S (“NNIT” and, together with its subsidiaries, the “Group”). For the purposes of this notice, the presentation that follows (the “Presentation”) shall mean and include the slides that follow, the
Slide 3: Introduction to NNIT
Introduction to NNIT NNT
Slide 4: In brief
In brief • NNIT is one of the three largest providers of IT services in Denmark • Focus areas: IT consultancy, development, implementation and operations for life sciences, finance, public and other industries • We deliver solid quality methodical approaches, open and honest communication, and a hig
Slide 5: NNIT Way: Vision 2020, Mission, Values
NNIT Way Our values and mission will lead us towards our vision Vision 2020 Mission Values By 2020, our quality We are passionate Open and honest and value adding IT people building winning services will make us: teams with our Conscience driven customers • Denmark’s preferred Value adding IT outsou
Slide 6: Key investor highlights
Key investor highlights Danish IT Market Leader Top 3 Leading market share in IT services market in Denmark and Fastest Growing Player (1) Global Delivery Model Market Share Winner with Historical Organic Revenue Growth 36% Percentage of FT Employees based outside >10% Denmark (5) Last 10 years aver
Slide 7: Great Track Record of Profitable Growth while Diversifying Our Revenue Base
Great Track Record of Profitable Growth while Diversifying Our Revenue Base Revenue Mix Development Since 2004 Novo Nordisk vs. non-Novo Nordisk DKKm Non-Novo Nordisk Revenue 10th consecutive New Novo Nordisk Revenue year with double Data Per Kogut – digit growth centre 2.410 Operating Margin (%) ne
Slide 8: Leveraging Our Compliance DNA Drives Diversification
Leveraging Our Compliance DNA Drives Diversification Our Core Leveraging Our Compliance DNA Life Public Finance Enterprise Sciences DKK 1,547m DKK 326m DKK 166m DKK 371m (64%) (14%) (7%) (15%) See Note (1) DKK 743m (31%) IT Solutions Services: Advisory services, business solutions and application ma
Slide 9: Our growth strategy
Our growth strategy NNT
Slide 10: The Key Pillars of Our Growth Strategy
The Key Pillars of Our Growth Strategy 1 Increase our share of existing customers’ IT spending In Denmark Win new customers 2020 Strategy Support Danish customers with their Win Profitable Market internationalisation Share 2 Internationally Life Sciences Supporting Pillars Continue our cost effici
Slide 11: 2020 Strategy: Denmark
Denmark 1 Increase our share of existing customers’ IT spending In Denmark Win new customers 2020 Strategy Support Danish customers with their Win Profitable Market internationalisation Share Internationally Life Sciences Supporting Pillars Continue our cost efficiency efforts Continue to promot
Slide 12: IT Services is a DKK 35bn Market…
IT Services is a DKK 35bn Market… Danish IT Services Market Estimated at a Total 3 Primary Areas Characterising the IT Market Value of c. DKK 35bn in 2014 (1) Hardware Hardware DKK 24bn NNIT’s key 33% segment IT Services Software DKK 35bn IT market 01010011 49% 01010111 01010011 01010111 Software DK
Slide 13: Leading Market Share in Danish IT Services Market
Leading Market Share in Danish IT Services Market Danish IT Services Market Development vs. NNIT Danish IT Services Market (2013 Revenue (1)) DKKm +x% 2012-2013 YoY Growth 7.000 (3%) 6.000 5.748 5.000 (0%) 3.956 4.000 +10% 3.000 (10%) 2.116 +1% (2%) 2.000 +2% (1%) 1.477 +7% 1.266 1.140 (7%) 1.066 1.
Slide 14: …With Space to Grow Further As The Leading Local Provider
…With Space to Grow Further As The Leading Local Provider – As Seen In Other European Countries 2013 Market Share of Leading Local IT Services Providers in Their Country of Origin % market share and ranking Norway Sweden Denmark 1st 1st Finland 24% 9% 3rd 1st 6% 19% France Germany 1st 1st 9% 9% Spai
Slide 15: Life Sciences Customer Group – Snapshot
Life Sciences Customer Group – Snapshot Market Overview Key Highlights NNIT Market share 2014 (2) NNIT Addressable Market (DKK bn) Life Sciences customer group includes pharma, medical devices, contract research organisations and biotech 3,6 companies 3,1 Novo Nordisk is our largest customer, ac
Slide 16: Enterprise Customer Group – Snapshot
Enterprise Customer Group – Snapshot Market Overview Key Highlights NNIT Market share 2014 (1) NNIT Addressable Market (DKK bn) Comprises large Danish companies not 7,3 included in previous 3 groups, which are also 6,6 facing high regulation process activities and quality control standards such as
Slide 17: Public Customer Group – Snapshot
Public Customer Group – Snapshot Market Overview Key Highlights NNIT Market share 2014 (1) NNIT Addressable Market (DKK bn) Comprises customers in the Danish central 6,0 and regional government as well as railways 5,7 Local government is only targeted to a certain NNIT 6% extent Leverages our
Slide 18: Finance Customer Group – Snapshot
Finance Customer Group – Snapshot Market Overview Key Highlights NNIT Market share 2014 (1) NNIT Addressable Market (DKK bn) Specifically targets banks, insurance 2,0 companies and pension companies 1,8 As financial institutions increasingly are required NNIT 10% to document and report business
Slide 19: A Unique Position in SAP
A Unique Position in SAP The SAP market is attractive, very complex and requires distinct process and technology knowledge NNIT’s Attributes A complex market with high competence requirements NNIT is a leading SAP wall-to-wall supplier in Denmark SAP Product Areas with 245+ dedicated SAP consultan
Slide 20: 2020 Strategy: International
International 1 Increase our share of existing customers’ IT spending In Denmark Win new customers 2020 Strategy Support Danish customers with their Win Profitable Market internationalisation Share 2 Internationally Life Sciences Supporting Pillars Continue our cost efficiency efforts Continue t
Slide 21: We Have a Strong Expertise in Life Sciences…
We Have a Strong Expertise in Life Sciences… NNIT Delivers Value Added Solutions to Well- …. Thanks to Leading-Edge Solutions Tailored to Life Recognized Pharmaceutical Groups… Sciences Largest Pharmaceutical Companies by Market Capitalisation €bn Unique, in-depth familiarity with Johnson & proces
Slide 22: … And a Deep Array of Differentiated Solutions
… And a Deep Array of Differentiated Solutions Integrated Drug Integrated Drug Integrated Integrated Supply Development Regulatory Affairs Quality Chain Management • Clinical Information • Regulatory • Compliance • Strategic Planning Strategy Management Information Assessments • Manufacturing & SC I
Slide 23: Life Sciences Industry is Expected to Increase Outsourcing Adoption…
Life Sciences Industry is Expected to Increase Outsourcing Adoption… Pharmaceutical Groups face Growing Pressures and … Driving Increasing Acceptance of Outsourcing, Continue to Seek Cost Reductions… Growing Faster than Other Industries Projected 2013-2018 CAGR on IT Outsourcing Spending by Pharma
Slide 24: … and Life Sciences Represent an Attractive Upside Opportunity
… and Life Sciences Represent an Attractive Upside Opportunity We are a leader in the Danish life sciences IT services market and have opportunities to grow internationally NNIT is Well Positioned in a Growing International Life Sciences Target Market (1) Western Europe (excl. Denmark) + US 2014 202
Slide 25: Guidance
Guidance NNT
Slide 26: Guidance / Outlook Statement
Guidance / Outlook Statement Revenue growth 5-8% at constant currencies(1) Around 0.6pp higher as reported (2) 2015 Operating margin Around 11% at constant currencies(1) Around 1.2pp lower as reported (2) Target average growth in revenue of at least 5% in constant currencies Long Term
Slide 27: Segmental Breakdown of Guidance
Segmental Breakdown of Guidance Segmental guidance should be seen as a guidance over time and not for individual years. This is due to the size of our segments where addition or loss of a single large contract can result in very volatile developments Segmental Novo Int’l Life Public Finance Enterpri