Nnit A/s · OMXCOP:NNIT
Nnit A/s — Investor Day (September 2023)
67 slides from Nnit A/s's investor day presentation, Sep 18, 2023
Slide 1: Welcome to Capital Markets Day at NNIT – September 18, 2023
Welcome to Capital Markets Day at NNIT – September 18, 2023 18.09.2023 | Classification Public Author Group Management Approved by FORS Version 2
Slide 2: Welcome to the more focused NNIT
Welcome to the more focused NNIT • In June 2022, we decided to take an important step to focus our business and consequently divest our infrastructure business. • The past months have been a period of transition and the off-set for our new strategy. • We have successfully closed the divestment and h
Slide 3: Our group management team
Our group management team Speakers on the agenda Also available in the room Pär Fors Carsten Ringius Mark Ohrvall Signe Nelsson Chief Executive Officer Chief Financial Officer Senior Vice President Senior Vice President Head of Region US Head of Human Resources Jason Xing Ricco Larsen Kasper Sønderg
Slide 4: Agenda
Agenda 10.00 Welcome and introduction to NNIT and our 2026 strategy and aspirations by Pär Fors 10.30 Q and A session 10.45 Region Europe and Region Asia update by Ricco Larsen and Jason Xing 11.40 Customer Case presentation I 11.55 Q and A session 12.10 Lunch 12.40 Region US and Region Denmark upda
Slide 5: Our future state
Our future state In 2026, we are an industry leading employer and solution provider specialized in international life science and the Danish Public market Industry-leading employer A truly international A commercially savvy with strong attraction, retention company driven by strong company where eve
Slide 6: Strategy and Aspirations
Strategy and Aspirations Pär Fors, CEO 18.09.2023 | Classification Public Author Group Management Approved by FORS Version 2
Slide 7: Business approach
Business approach Together with our customers and partners, we bring digital transformation to life and make a mark. We target industries where regulatory demands, high complexity and quality of life is at play Our solutions portfolio delivers a strong value proposition to specific customer needs wi
Slide 8: Strategy execution with a new organization
Strategy execution with a new organization We have increased proximity to our customers with an international group management team working in a regional structure Design principles Comms, Regional autonomy, and Global Finance HR CEO Marketing & Solution Profit & Loss responsibility & M&A Commercial
Slide 9: This is why our customers value us
This is why our customers value us We have a strong and recognized value proposition Digital solutions that work Seamless Superior customer Industry Business first We advise and build quality experiences mastery approach sustainable digital solutions that work We are driven by Long-lasting Excellenc
Slide 10: Focus towards 2026
Focus towards 2026 OUTGROWING THE MARKET DOMAIN FOCUS REPEATABILITY INTERNATIONAL MINDSET ACQUISITIONS We aspire to grow Building domain Continued New organization Focused M&A faster than the and tech investments in catering to approach to market i.e. take competencies in bringing new regional suppo
Slide 11: Financial performance and expectations
Financial performance and expectations H12023 Upgraded outlook Towards 2026 Revenue growth Revenue growth Revenue growth 15.6% ~15% ~10% (previously ~10%) CAGR organic Operating profit margin Operating profit margin Operating profit margin before special items before special items ~10 to13% 5.4% ~6%
Slide 12: Questions and answers
Questions and answers 18.09.2023 | Classification Public Author Group Management Approved by FORS Version 2
Slide 13: Region Europe update
Region Europe update Ricco Larsen, Senior Vice President 18.09.2023 | Classification Public Author Group Management Approved by FORS Version 2
Slide 14: Ricco Larsen
International leadership team in R&D, Manufacturing & SC, Quality & Compliance, Data & Digital and Client Engagements Ricco Larsen 400 employees in multiple +20 years of NNIT leadership experience locations in Germany, Switzerland, UK, Ireland, internationally within most dimensions of our The Czech
Slide 15: Key global life sciences trends
Key global life sciences trends 3 key trends shape the future of the life sciences industry New market New regulatory dynamics scrutiny New technology advances Patent cliff Medical devices Data enablement Rare diseases Software as medical devices Robotics Personalized treatments New market entrants
Slide 16: The global life sciences industry competition
The global life sciences industry competition We have a unique position in a fragmented competitive market with presence of globals, local “house providers” and life sciences niche specialists Global / Large 1. Strong focus on selected core domains where we build depth and breadth. This is recognize
Slide 17: The NNIT approach to AI in Life Sciences
The NNIT approach to AI in Life Sciences NNIT is driving the AI agenda in global life sciences 3 NNIT’s Product Catalogue 4 Workplace of the future AI Products that are repeatable and scalable for SMB and Enterprise Industry 4.0 and the future R&D AI Customers (eg. TrialTalk, MES Organizations are c
Slide 18: The Western European market size and growth
The Western European market size and growth Healthy growth in Region Europe at ~8% within core delivery areas. Main geographical markets are UK, Switzerland, Germany, Ireland and Denmark ADDRESSABLE MARKET SIZE FOR IT SERVICES REGION EUROPE CAGR 2022-26, % BnDKK, % CAGR Consulting Application Impl.
Slide 19: Market gameboard for Region Europe
Market gameboard for Region Europe We will maintain current strategic strong-holds across the value chain while KEY pursuing new growth in selected customer segments and pockets TAKEAWAYS 1. We remain focused on OUR MARKET PRESENCE Growth area Maintain Deselected core life sciences domains within R&
Slide 20: Focus in NNIT Region Europe
Focus in NNIT Region Europe We want to uphold our position as a leading trusted partner for life sciences in Europe We will continuously grow our solid customer base by increasing our share of wallet and diversifying our engagements We will maintain a future proof solution portfolio within our
Slide 21: Region Asia update
Region Asia update Jason Xing, Senior Vice President 18.09.2023 | Classification Public Author Group Management Approved by FORS Version 2
Slide 22: Jason Xing
Experienced leadership team in R&D, Manufacturing & SC, Quality & Compliance, Commercial and Client Engagements Jason Xing 300 employees in 4 locations: +16 years of NNIT leadership experience within Singapore, Shanghai, Tianjin and Beijing most dimensions of our Asian business Specialized in commer
Slide 23: Market size and growth
Market size and growth Region Asia is highly consolidated into three counties – China, Japan and Singapore constituted ~97% of the market in 2022 ADDRESSABLE MARKET SIZE FOR IT SERVICES REGION ASIA CAGR BnDKK, % market share 2022-26, % Japan China FORECAST Key takeaways: Singapore Other countries3 1
Slide 24: Market gameboard for Region Asia
Market gameboard for Region Asia We will remain focused on commercial IT, Quality & Compliance and KEY Manufacturing IT, while building services in R&D and Data & AI TAKEAWAYS OUR MARKET PRESENCE Growth area Maintain Deselected 1. We sustain strong Value chain area presence in commercial IT, Manufac
Slide 25: Focus in NNIT Region Asia
Focus in NNIT Region Asia We want to maintain our Singapore business momentum while ensuring we succeed with bringing China back in green We will focus on Multi-National Corporation regional offices in Asia, and regional Bio-tech We aim to continuously grow key accounts by diversifying our ser
Slide 26: Case: The UNITY program @ Boehringer Ingelheim
Case: The UNITY program @ Boehringer Ingelheim Charlotte Øbakke, Manager 18.09.2023 | Classification Public Author Group Management Approved by FORS Version 2
Slide 27: Introduction
Introduction World’s largest implementation of its kind with more than 75,000 users Boehringer Ingelheim is a research- driven group of companies dedicated to the discovery, development, Quality management and documentation is mission critical manufacture and marketing of for life sciences companies
Slide 28: Boehringer Ingelheim Challenges & Vision
Boehringer Ingelheim Challenges & Vision Access to multiple One unified content management systems across divisions platform for all employees Lack of linkage between Manage content and training documents, processes via end-to-end automated and training business processes Vision Challenges (UNITY Pr
Slide 29: Boehringer Ingelheim change journey
Boehringer Ingelheim change journey AS-IS Landscape TO-BE Landscape Scattered document landscape caused by Harmonized and simplified document several years of silo-oriented document landscape lifecycle management, resulted in: > 1,300,000 controlled documents > 1,300,000 controlled documents > 600 d
Slide 30: A journey to digitalize quality management and content
A journey to digitalize quality management and content Replacing legacy Veeva Vault QualityDocs To have one unified A multi-year content management as the new enterprise- content management and 4 phased system wide platform platform for all employees journey What With Why How 18.09.2023 | Classifica
Slide 31: A journey to digitalize quality management and content
A journey to digitalize quality management and content 2020 2021 2022 2023 2024 Phase 1 Phase 2 Phase 3.1 Phase 3.2 NNIT NNIT NNIT NNIT 11,000 Documents 65,000 Documents 1,200,000 Documents 1,1 Meters 6,5 Meters 120 Meters NNIT’s added value NNIT has guided Boehringer Ingelheim on streamlining and a
Slide 32: NNIT engagement and solution
NNIT engagement and solution NNIT streams involve: +50 leads & consultants across sixteen nationalities from NNIT globally NNIT is committed to Boehringer Ingelheim and Program / Project Management the continuous journey within: Business Process Analysis • The UNITY program – additional scope, ongoi
Slide 33: Questions and answers
Questions and answers 18.09.2023 | Classification Public Author Group Management Approved by FORS Version 2
Slide 34: Lunch (until 12.40)
Lunch (until 12.40) 18.09.2023 | Classification Public Author Group Management Approved by FORS Version 2
Slide 35: Region US update
Region US update Mark Ohrvall, Senior Vice President 18.09.2023 | Classification Public Author Group Management Approved by FORS Version 2
Slide 36: Mark Ohrvall
'Business First’ leadership team in R&D, Quality, Compliance, Manufacturing Data & Digital and Client Engagements Mark Ohrvall +3 years of NNIT leadership experience and +30 180 employees across the US on multiple locations years of international life sciences experience serving Enterprise and SMB F
Slide 37: Market size and growth
Market size and growth The addressable US market reached ~16 bnDKK in 2022; forecasted CAGR to be ~9% from 2022-26 ADDRESSABLE MARKET FOR IT SERVICES SPENDING IN LIFE SCIENCES, US CAGR BnDKK, % CAGR 2022-26, % FORECAST Consulting Key takeaways: Application Implementation and Managed Services 1. 'Ope
Slide 38: Market gameboard for Region US
Market gameboard for Region US We focus primarily on R&D and quality, but simultaneously look to build a small KEY presence in manufacturing. Commercial IT is deselected TAKEAWAYS 1. Significant improvement in OUR MARKET PRESENCE Growth area Maintain Deselected the last 18 months offering new busine
Slide 39: Focus in NNIT Region US
Focus in NNIT Region US We will continue our growth as a trusted partner for life sciences We will increase our customer base while expanding existing customers growing our engagements and increasing deal sizes We will diversify our revenue pipeline with solutions and services that create long
Slide 40: Region Denmark update
Region Denmark update Kasper Søndergaard Andersen, Senior Vice President 18.09.2023 | Classification Public Author Group Management Approved by FORS Version 2
Slide 41: Kasper Søndergaard Andersen
International leadership team in Microsoft, SAP Custom Application and Advisory Engagements Kasper Søndergaard 510 employees in five Andersen locations in Denmark +14 years of NNIT experience within most dimensions of our business Specialized in strategy execution, operational H1 2023 excellence, co
Slide 42: Region Denmark comprises of two major segments
Region Denmark comprises of two major segments Region Denmark targets two key segments with strategic focus on the public sector Public Private segment segment Strategic focus Maintain and expand 18.09.2023 | Classification Public Author Group Management Approved by FORS Version 2
Slide 43: Key trends in the Danish market
Key trends in the Danish market 3 key trends shape the future of the Danish market Digital experience Digital debt and legacy systems Cybersecurity and compliance Improved workflows benefits consumers, citizens and employees Ongoing modernization is New threats and methods evolving necessary still N
Slide 44: The Public sector competition
The Public sector competition The Danish public sector market is competitive and dynamic. Vendors must demonstrate a strong track record of delivering high-quality services, reference cases and solutions to win Global 1. Our unique mix of a global/local delivery model coupled with deep domain and pr
Slide 45: Market size and growth
Market size and growth Healthy growth in Region Denmark service areas. Historic 11% market growth and forecasted 7% CAGR 2022-’26 ADDRESSABLE MARKET FOR IT SERVICES SPENDING IN REGION DK1 CAGR BnDKK, % CAGR 2022-26, % Consulting FORECAST Key takeaways: Application Impl. and Mgt. NNIT market 1. The p
Slide 46: Market gameboard for Region Denmark
Market gameboard for Region Denmark We are well-positioned in the public space for CAD in central government and KEY public/private companies and wish to grow our advisory footprint. We target TAKEAWAYS primarily large to mid-size corporations in our SAP and MS solutions areas OUR MARKET PRESENCE Gr
Slide 47: Focus in NNIT Region Denmark
Focus in NNIT Region Denmark We aim to become the preferred IT partner in Denmark with AI and Cyber Security rooted offerings enhancing the digital experience for end users We want to conquer the Public sector in Denmark with our Custom Application and platform capabilities We want to establis
Slide 48: Case: ATP Parental Leave
Case: ATP Parental Leave Jens Maagøe, Vice President 18.09.2023 | Classification Public Author Group Management Approved by FORS Version 2
Slide 49: Facts
Facts ATP Parental Leave System • Case management system – pay out appr. DKK 11 billion p.a. parental leave benefits • Recognized as a domain with complex and dynamic legislation • Appr. 2 million citizens in system (parents and children) • Contains data of approx. 100,000 organizations/ companies •
Slide 50: NNIT Parental Leave Solution
NNIT Parental Leave Solution • Contract with ATP won in 2014 and re-won in 2022 • Contract length: 6 years + option for 2*2 years • Scope: Advisory, Projects, Operations and Support • Domain is dynamic and highly regulated by legislation (EU and national) • Completed and ongoing recent work include
Slide 51: BorgerIT
BorgerIT Case Handling and Payout System PLATFORM STANDARD FUNCTIONAL PLUGINS COMPONENTS • BorgerIT is an offering for public organizations Case handling Workflow Citizen’s view • BorgerIT consists of a large number of reusable framework Engine Self-service standard components that plug in to the Bo
Slide 52: Danish Public Sector: Digital solutions developed for people by people
Danish Public Sector: Digital solutions developed for people by people DOMAIN ENTIRE VALUE CHAIN PROXIMITY, TRUSTED BRAND & KNOWLEDGE AND SCALE PROJECT EXECUTION From complex legislation to Extend the lifetime and improve efficient case management and functionality of your IT systems payout systems
Slide 53: Financial aspirations
Financial aspirations Carsten Ringius, Executive Vice President & CFO 18.09.2023 | Classification Public Author Group Management Approved by FORS Version 2
Slide 54: Early signs are promising
Early signs are promising A step change has been taken. Strong momentum in the first half of 2023 leading to upgrade of full-year outlook GROUP OPERATING PROFIT MARGIN REVENUE GROWTH ORGANIC GROWTH BEFORE SPECIAL ITEMS 15.6% 11.5% 5.4% 18. Classification Public Author Group Management Approved by FO
Slide 55: The NNIT investment case
The NNIT investment case NNIT will grow its existing business utilizing its core assets alongside increasing profitability. Further opportunities to grow through M&A supported by robust balance sheet 01 | GROWTH 02 | PROFITABILITY 03 | BALANCE SHEET 04 | M&A Well-positioned in Leveraging existing Po
Slide 56: Key assumptions
Key assumptions The financial aspirations for 2026 are based on assumptions of relatively stable market conditions and supplemented by annual guidance TIME HORIZON BASELINE COST INFLATION INDUSTRY DEVELOPMENT MACROECONOMY The aspirations cover The baseline for the Able to alleviate impact Our market
Slide 57: Financial aspirations towards 2026
Financial aspirations towards 2026 ~10% ~10-13% CAGR YEARLY AVERAGE GROUP OPERATING ORGANIC REVENUE GROWTH PROFIT MARGIN BEFORE SPECIAL ITEMS 18. Classification Public Author Group Management Approved by FORS Version 2
Slide 58: Opportunities for profitable growth
Opportunities for profitable growth NNIT operates in globally attractive markets with opportunities to grow within existing playing field Mid-term revenue aspiration, % >10% CAGR ASPIRATION Mid ~10% CAGR single to low double-digit Mid single-digit Mid to high single- digit 1,725 FY 23 outlook @ 15%
Slide 59: Margin expansion driven by leverage on cost base
Margin expansion driven by leverage on cost base Leveraging existing assets and reducing cost base will lead to margin expansion Mid-term Group operating profit margin excl. special items aspiration, % ASPIRATION Low single-digit Yearly average ~10-13% Low to mid Single-digit Low single-digit ~ 6% F
Slide 60: Four initiatives to gain efficiency and reduce cost base
Four initiatives to gain efficiency and reduce cost base Significant opportunities to lower production and overhead costs in regions and enabling units DIRECT COST REDUCTION INITIATIVES ENABLING EFFICIENCY GAINS NEW HQ FACILITY WILL IMPROVED PERFORMANCE NEW SYSTEMS TO STREAMLINE ORGANIZATIONAL RESTR
Slide 61: New financial reporting structure implemented
New financial reporting structure implemented New financial disclosure reflects the new organizational structure of NNIT Design principles of the financial reporting structure REVENUE Key changes to the new structure of the P&L Group revenue is a consolidation of the four regional P&Ls PRODUCTION CO
Slide 62: Capital allocation supporting financial stability & M&A
Capital allocation supporting financial stability & M&A Excess capital after funding of growth opportunities, including investments, may be returned to the shareholders CURRENT PRIORITIZATION OF USE OF CASH Ensure financial stability Invest in growth Dividend Share buyback • Maintain a flexible capi
Slide 63: Strong M&A track record
Strong M&A track record Following acquisition of SCALES in 2017, Life sciences acquisitions have targeted local market presence, scalability in strategic solutions areas or customer access 2018 2019 2020 2021 2022 NNIT acquires US- NNIT acquires Swiss- NNIT acquires US- NNIT acquires Irish- NNIT acq
Slide 64: The NNIT investment case
The NNIT investment case NNIT will grow its existing business utilizing its core assets alongside increasing profitability. Further opportunities to grow through M&A supported by robust balance sheet ~10% ~10-13% CAGR YEARLY AVERAGE GROUP OPERATING ORGANIC REVENUE GROWTH PROFIT MARGIN BEFORE SPECIAL
Slide 65: Questions and answers
Questions and answers 18.09.2023 | Classification Public Author Group Management Approved by FORS Version 2
Slide 66: Closing remarks by Pär Fors, CEO
Closing remarks by Pär Fors, CEO 18.09.2023 | Classification Public Author Group Management Approved by FORS Version 2
Slide 67: Refreshments and network in the lounge – thank you for attending
Refreshments and network in the lounge – thank you for attending 18.09.2023 | Classification Public Author Group Management Approved by FORS Version 2