NNIT A/S: 8/2019 Financial report for the first three months of 2019

Revenue growth of 7.4% and an operating profit margin of 6.1%

Performance highlights for the first three months of 2019        

• Revenue increased by 7.4% driven by growth in the international life sciences and finance customer groups of 73% (organic 27%) and 28%, respectively, while the enterprise customer group increased by 5.9%. The Novo Nordisk Group increased by 1.1% compared to Q1 2018 which was at a low level. This was partly countered by a decline in revenue from the public customer group of 10% and life sciences Denmark of 1.2%
   
• Revenue growth was 11% (7.1% organic) excluding business from Novo Nordisk Group in Q1 2019
   
• The share of revenue from clients outside the Novo Nordisk Group increased from 63% in Q1 2018 to 65% in Q1 2019
   
• Gross profit decreased in Q1 2019 primarily due to a significant decline in margins on service level agreements and projects for the Novo Nordisk Group as well as a change in revenue mix with a lower Novo Nordisk Group share. This led to an operating profit decrease of 25% and an operating profit margin of 6.1% in reported currencies compared to 8.7% in Q1 2018
   
• Net profit of DKK 39m in Q1 2019 compared to DKK 46m in Q1 2018
   
• Free cash flow was negative DKK 28m in Q1 2019 compared to positive DKK 143m in Q1 2018
   
• Order backlog for 2019 at the beginning of Q2 2019 was DKK 2,517m, an increase of 1.2% compared to the same time last year
   
• Outlook for 2019: 
  • Revenue growth of 3-6% in constant currencies is maintained
  • Operating profit margin of 8-9% in constant currencies
  • Level of investments (CAPEX) is 5-7% of total revenue
     
• NNIT expects to pay out an interim dividend in August 2019 of DKK 49.2m in cash equal to DKK 2.00 per share of a nominal value of DKK 10

         
Per Kogut, CEO at NNIT comments: “As communicated last week our operating profit margin for the first three months of 2019 is very disappointing. Based on our ongoing cost initiatives as well as the backlog we expect an increased operating profit margin in coming quarters, compared to the first quarter of the year. On a positive note, I am satisfied with the high revenue growth in international life sciences.” 

Conference call details
NNIT will host a teleconference May 14, 2019 at 10:30 CET about the financial report for the first three months of 2019. Please visit the NNIT webpage at 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://nnit.eventcdn.net/201905q1

Participant telephone numbers:
Denmark:                    +45 3544 5583
United Kingdom:          +44 20 3194 0544
Sweden:                      +46 8 5664 2661
United States:              +1 855 269 2604

Financial Calendar 2019
August 14, 2019            Interim report for the first six months of 2019
October 24, 2019           Interim report for the first nine months of 2019

Contacts for further information
Investor relations:                             Media relations:                              
Klaus Hosbond Skovrup                     Helga Heyn                   
Head of Investor Relations                 NNIT Communications                      
Tel: +45 3079 5355                          Tel: +45 3077 8141                    
ksko@nnit.com                                 hhey@nnit.com                                                                                                       

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, 2019, NNIT A/S had 3,266 employees. NNIT has approximately 400 clients of which around 150 are located outside Denmark. Some 20% are international life sciences clients (March 2019). For more information please visit www.nnit.com.

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