NNIT A/S: 01/2022 Financial report for 2021

Company announcement 01/2022: Financial report for 2021

2021 financial performance in line with guidance – Revenue growth of 1.7% to DKK 2,877m and an operating profit margin before special items of 4.9%

Performance highlights for the fourth quarter 2021

• Revenue of DKK 738m, down 1.5% (-6.7% organic) from Q4 2020, driven by:
  • Life Sciences (excluding Novo Nordisk Group) grew to DKK 262m, up 29% (7% organic). The increase was related to the continued significant growth of the Life Sciences International business, where revenues increased by 47% (14% organic) to DKK 200m, while revenue from Life Sciences Denmark decreased by 7.5% to DKK 62m.
  • Novo Nordisk Group revenue declined 27% to DKK 153m mainly explained by the Global infrastructure management agreement effective from July 1, 2021.
  • Private & Public business revenue declined by 4.2% to DKK 323m.
  • Winning Solutions constitute 55% of total revenue, up from 46% in Q4 2020.

• Operating profit margin before special items at 5.0% compared to 7.3% in Q4 2020.
• Special items amount to DKK 61m, the significance is mainly due to an DKK 29m impairment related to the exit of a specific customer segment and DKK 27m related to restructuring cost.
• Net result is a profit of DKK 2m, compared to a profit of DKK 18m in Q4 2020.
• Order backlog for 2022 at the beginning of Q1 2022 amounted to DKK 2,017m, an increase of 0.9% compared to the same time last year.
• Outlook for 2022:

2022 will be the first year for NNIT to operate within the 3 distinct business units; Cloud and Digital Solutions, Life Sciences Solutions and Hybrid Cloud Solutions. In 2022, the offshoring set-up will also be optimized. The new organizational structure will ensure the establishment of a platform for improved operational performance and once settled, profitable growth.

Guidance as of January 28, 2022:

• Revenue growth of 2-5%
• Operating profit margin before special items of around 5%
• NNIT’s transformation into the new structure mentioned above, will potentially lead to special items up to the same level as in 2021

• It is proposed to not pay out dividend for 2021.

Pär Fors, CEO of NNIT, comments: “Q4 performed in line with expectations. International Life Sciences growth continued, and Winning Solutions performed satisfactorily. P&P was impacted by a weaker performance within the public segment. Focus is now on the new organizational structure and leadership to enhance the growth path and profitability. The organization has worked hard throughout the year to set the foundation for the new journey, and we are cautiously optimistic for the year to come”.

Conference call details
NNIT will host a teleconference on January 28, 2022 at 9:30 CET to present the financial report for 2021. Please visit the NNIT website www.nnit.com to access the teleconference, which can be found under ‘Investors – Events & Presentations’. Presentation material will be available on the website approximately one hour prior to the start of the presentation.

Conference call details:
https://streams.eventcdn.net/nnit/financial-report-2021/

Participant telephone numbers:

Financial calendar 2022

Forward-looking statements
This announcement 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 meaning in connection with any discussion of future operating or financial performance identify forward-looking statements. Statements regarding the future are subject to risks and uncertainties that may result in considerable deviations from the outlook set forth. Furthermore, some of these expectations are based on assumptions regarding future events which may prove incorrect.
Please also refer to the overview of risk factors in the ‘risk management’ section on page 47-49 of the Annual Report 2021.

Contacts for further information

The NNIT Group provides a wide range of IT and consulting services internationally.

In Denmark, where the Group HQ is based, we are one of the leading IT companies, servicing both private and public sector customers across all industries. In the rest of Europe, Asia and USA, we are solely focused on companies within life sciences.

Supporting the entire supply chain, we help optimize internal company processes, production, sales and customer experiences:

We advise, build, operate and support, enabling digital transformation and customers to reap the full potential of their organizations. Our role is to foster innovation and make the mark our customers and we aspire to.

The NNIT Group consists of group company NNIT A/S and subsidiaries Valiance, SCALES Excellis Health Solutions and SL Controls. Together, these companies employ over 3,100 people in Europe, Asia and USA. Read more at www.nnit.com.

Attachments

• 01 01282022 Company announcement Q4 2021_EN_v1
• NNIT 2021 Annual Report
• nnit-2021-12-31