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Company announcement 09/2021: Financial report for the first nine months of 2021

Revenue increase of 6.1% and an operating profit margin before special items of 3.0% related to Q3 2021

Performance highlights for Q3 2021

• Revenue increased to DKK 698m, up 6.1% (-1.5% organic) from Q3 2020, driven by:

  • Life Sciences (excluding Novo Nordisk Group) grew to DKK 246m, up 36% (13% organic). The increase was related to the continued significant growth of the Life Sciences International business, where revenues increased by 53% (20% organic) to DKK 187m, while revenue from Life Sciences Denmark was on par with Q3 2020 at DKK 59m.

  • Novo Nordisk Group revenue declined 12.9% to DKK 142m mainly explained by the Global infrastructure management agreement effective from July 1, 2021.

  • Private & Public business revenue declined by 1.3% to DKK 310m, reductions mainly driven by lower activity level in the Infrastructure Operations business area.

  • Winning Solutions constitute 54% of total revenue, up from 46% in Q3 2020.

• Operating profit margin before special items was 3.0%, down from 3.8% in Q3 2020.

  • To establish visibility and accelerate cost reductions, a process of separating the NNIT Infrastructure activities into a dedicated business unit is initiated.

• Special items amount to DKK 23m. These relate to the continuous efforts in relation to efficiency improvements and restructuring.

• Net result is a loss of DKK 10m, compared to a profit of DKK 9m in Q3 2020.

• Order backlog for 2021 at the beginning of Q4 2021 amounted to DKK 2,790m, an increase of 3.7% compared to the same time last year.

• Outlook for 2021:
  
  

Guidance as of November 3, 2021:

• Revenue growth of 1-4%

• Operating profit margin before special items of around 5%

• Investment level of 5-7% of total revenue excluding acquisitions
  
  

Pär Fors, CEO of NNIT, comments: "Q3 performed below previous quarters, which was in line with expectations and previous years. International Life Sciences continued at high growth rates and is now the largest segment in the Group and Winning Solutions performed satisfactorily. P&P was impacted by a weaker performance within the infrastructure business and focus is now on separation of the infrastructure operations into a dedicated business unit to enhance efficiencies and reduce costs. We are confident in our strategy and maintain our guidance for the year".

Conference call details
NNIT will host a teleconference on November 3, 2021 at 9:30 CET to present the financial report for the first nine months of 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/first-ninemonths-of-2021