NNIT A/S: 7/2017 Financial report for the first six months of 2017

NNIT delivers organic revenue growth of 5.3% and an operating profit margin of 9.5% in the first six months of 2017.

Performance highlights for the first six months of 2017:

• Revenue increased by 6.3%, hereof 5.3% organic, to DKK 1,404m in reported currencies and by 6.2% in constant currencies. Revenue increased by 15% from customers outside the Novo Nordisk Group while revenue from the Novo Nordisk Group decreased by 3.4%
   
• The share of NNIT's revenue from customers outside the Novo Nordisk Group reached 58% in 6M 2017 compared to 51% in the same period last year

• Operating profit margin was 9.5% in reported currencies and 9.4% in constant currencies compared to 9.6% as reported in 6M 2016
   
• Net profit increased by 12% to DKK 103m following an improvement in operating profit and net financials
   
• Underlying free cash flow for 6M 2017 improved by DKK 56m to DKK 155m compared to 6M 2016. Including the acquisition of SCALES and investment in a new data center the free cash flow was DKK -23m in 6M 2017
   
• Order backlog for 2017 at the beginning of Q3 2017 increased by DKK 137m to DKK 2,659m which is a growth of 5.4% compared to the order backlog for 2016 at the beginning of Q3 2016. The organic growth in the order backlog is 3.4%
   
• Outlook for 2017:
  • Expected revenue growth is maintained at 4-8% in constant currencies with expected organic growth of 1-5%
  • Operating profit margin is maintained to be around 10% in constant currencies
  • The expected level of investments in 2017 is 15-17% with an expected organic investment level of 12-14% of total revenue as the majority of investment related to an additional data center will impact 2017
     
• The Board of Directors has decided to pay an interim dividend for 2017 of DKK 2.00 per share corresponding to DKK 48.7m

Per Kogut, CEO at NNIT comments: "NNIT continues the positive development for 2017 delivering robust IT and generate growth, driven by clients outside the Novo Nordisk Group, which grew with more than 17% in Q2. I am particularly pleased to see several new orders within Dynamics 365 won by our newly acquired company SCALES."

Conference call details
NNIT will host a teleconference August 16, 2017 at 10:30 CET about the financial report for Q2 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.

Conference call details
Webcast link: https://edge.media-server.com/m6/p/asbgo26k

Participant telephone
Numbers: Confirmation code 2944785
Participants,  Local - Copenhagen, Denmark:                           +45 38 48 75 13
Participants,  Local - London, United Kingdom:                          +44(0) 20 3427 1914
Participants,  Local - Stockholm, Sweden:                                +46(0) 8 5065 3936
Participants,  Local - Paris, France:                                        +33(0) 1 76 77 22 28
Participants,  Local - Frankfurt, Germany:                               +49(0) 69 2222 10625

Financial Calendar 2017
August 21, 2017            Interim dividend ex-dividend date
August 22, 2017            Interim dividend record date
August 23, 2017            Interim dividend payment date
October 26, 2017           Interim report for the first nine months of 2017

Contacts for further information
Investor relations:
Jesper Vesterbæk Wagener
Head of Investor Relations
Tel: +45 3075 5392
jvwa@nnit.com

Media:
Helga Heyn
NNIT Communications
Tel: +45 3077 8141
hhey@nnit.com