NNIT A/S: New financial reporting structure

At the end of 2021, with reporting effect from January 1, 2022, NNIT completed a major organizational change to create three distinct business units:

• Life Sciences Solutions (LSS)
• Cloud & Digital Solutions (CDS)
• Hybrid Cloud Solutions (HCS)

The new organizational structure serves to accommodate the diverse characteristics in our customer base, which requires a tailored approach in each market segment, and the need to speed up business development further in close alignment with our customers’ needs. Please see further details on the strategic rationale in the 2021 Annual Report on pages 22-25.

From the publication of the Q1 2022 interim report, NNIT’s external reporting structure has been revised to ensure alignment with the new organizational structure and consistency with internal management reporting. Comparative figures have been restated and are presented in this announcement to reflect the new reporting structure. Implementation of the new business units is still ongoing with regards to shared production costs (e.g. buildings, legal and other overhead costs) as well as split of sales, marketing and administrative costs. These items are presented at Group level below.

Life Sciences Solutions
The business unit develops and delivers the best digital solutions to support the entire life sciences value chain. LSS services are mainly characterized by projects, which are only partly recurring on customer level with some services being replicable. There is some seasonality related to holiday seasons etc. The business unit includes revenue from the former Life Sciences customer segment and a minor contribution from public customers.

Cloud & Digital Solutions
The business unit develops and delivers the best digital solutions, enabling business-critical applications in the cloud and taking full advantage of the growing Microsoft ecosystem. CDS services are mainly characterized by projects, which are only partly recurring on customer level with some services being replicable. There is some seasonality related to holiday seasons etc. The business unit includes revenue from all former customer segments except Life Sciences.

Hybrid Cloud Solutions
The business unit develops and delivers the best infrastructure and hybrid cloud solutions to enable digital transformation to our customers. HCS services mainly comprise Service Level Agreements, which are recurring in nature with limited seasonality. The business unit includes revenue from all former customer segments with Novo Nordisk being the largest single customer.

The Q1 2022 interim report will be published on 6 May, 2022.

Overview – Group and restated business unit financial figures

		2021
	NNIT	Q1	Q2	Q3	Q4	Total
NNIT Group	Revenue	731	710	699	738	2,878
	BU Production costs	596	599	608	620	2,422
	BU gross profit	135	111	91	119	455
	BU gross profit margin	18%	16%	13%	16%	16%
	Production cost indirect	35	25	17	32	110
	Gross profit	100	86	74	86	345
	Gross profit margin	13.6%	12.1%	10.5%	11.7%	12.0%
	Sales and marketing costs	30	31	29	32	122
	Administrative expenses	21	20	22	18	80
	Operating profit bf. special items	48	35	23	37	143
	OPM bf. special items	6.6%	5.0%	3.2%	5.0%	5.0%
LSS	Revenue	167	166	191	199	723
	BU Production costs	125	132	158	159	574
	BU gross profit	42	34	33	41	149
	BU gross profit margin	25%	20%	17%	20%	21%
CDS	Revenue	211	213	199	226	848
	BU Production costs	175	179	176	178	708
	BU gross profit	36	34	23	48	140
	BU gross profit margin	17%	16%	11%	21%	17%
HCS	Revenue	353	331	309	314	1,306
	BU Production costs	296	288	274	283	1,140
	BU gross profit	57	43	35	30	166
	BU gross profit margin	16%	13%	11%	10%	13%
	Customer segments / new BUs		HCS	LSS	CDS	Total
	Life Sciences (excl. NNG)		195	632	139	966
	-Life Sciences (Int.)		55	601	54	709
	-Life Sciences (DK)		140	31	85	257
	Novo Nordisk Group		427	89	91	606
	Enterprise		328	0	411	739
	Public		121	3	177	300
	Finance		236	0	31	267
	Total revenue		1,306	723	848	2,878

Contact for further information

Pernille Fabricius
EVP & CFO
Tel: +45 3077 9500

Media relations:
Tina Joanne Hindsbo
Media Relations Manager     
Tel: +45 3077 9578
[email protected]

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, SL Controls, and prime4services. Read more at www.nnit.com.

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• Investor news 29Apr22