NNIT A/S: 6/2017 Financial report for Q1 2017


NNIT delivers organic revenue growth of 8.0% and an operating profit margin of 10.2% in Q1 2017.

Performance highlights for Q1 2017:

  • Revenue increased by 8.0% to DKK 715m in reported currencies and by 7.9% in constant currencies impacted positively by around 3.5 percentage points by the timing of the Easter Holiday and a high level of hardware revenue. Revenue increased by 11.7% from customers outside the Novo Nordisk Group
  • Operating profit margin was 10.2% in reported currencies and 10.1% in constant currencies compared to 10.5% as reported in Q1 2016
  • Net profit increased by 8.9% to DKK 56m following an improvement in operating profit and net financials
  • Free cash flow was DKK 142m which is in line with Q1 2016 despite higher investments
  • Order backlog for 2017 at the beginning of Q2 2017 increased by DKK 109m to DKK 2,385m which is a growth of 4.8% compared to the order backlog for 2016 at the beginning of Q2 2016
  • May 17, 2017 NNIT signed an agreement to acquire 100% of the shares in the Scales Group (company announcement 5/2017 May 17, 2017). The acquisition of Scales is expected to increase NNITs revenue growth in 2017 with around 3 percentage points while the impact on operating profit margin is expected to be neutral
  • Outlook for 2017 in constant currencies is [changed]:
    • Revenue is forecasted to grow 4-8% in constant currencies after the acquisition of Scales, while expected organic growth is maintained at 1-5%. The organic revenue growth outlook is below NNIT's long-term target of at least 5% due to a decline in the backlog from the Novo Nordisk Group
    • Operating profit margin is forecasted to be around 10% in constant currencies
    • The expected level of investments in 2017 is 12-14% of total revenue as the majority of investment related to an additional data center will impact 2017. Including the acquisition of Scales the expected investment level is 16-18%
  • Based on the strong cash flow NNIT expects to pay out an interim dividend in August 2017 of DKK 48.5m in cash equal to DKK 2 per share of a nominal value of DKK 10

Per Kogut, CEO at NNIT comments: "The results for the first three months of 2017 are reassuring and confirm the strength of NNIT's operating model. Continued revenue growth and an operating profit margin of 10.2% is a good start to the year, and I am particularly encouraged by the loyal collaboration with our respected clients, including Novo Nordisk, with whom we have recently extended our relationship. It is a testament to the services and quality NNIT delivers." Per Kogut continues: "Further, I am happy to welcome SCALES Group into the NNIT Group. The acquisition strengthens NNIT's position in the Dynamics market, and the combination of SCALES Group's deep knowledge and market leading experience with Dynamics 365 and NNIT's ability to handle large Dynamics environments as well as strong portfolio of Microsoft products, creates a unique, leading Dynamics and SAP house in Denmark."

Conference call details
NNIT will host a teleconference May 18, 2017 at 10:30 CET about the financial report for Q1 2017. Please visit the NNIT webpage at www.nnit.com to access the teleconference, which can be found under 'Investors - Downloads'. Presentation material will be available on the website approximately one hour prior to the start of the presentation.

Contacts for further information
Investor relations:
Jesper Vesterbæk Wagener
Head of Investor Relations
Tel: +45 3075 5392

Helga Heyn
NNIT Communications
Tel: +45 3077 8141

About NNIT
NNIT A/S is one of Denmark's leading IT service providers and consultancies. NNIT A/S offers a wide range of IT services and solutions to its customers, primarily in the life sciences sector in Denmark and internationally and to customers in the public, enterprise and finance sectors in Denmark. As of March 31, 2017 NNIT A/S had 2,868 employees.

For more information please visit www.nnit.com.


6/2017 Financial report for Q1 2017