NNIT A/S

Annual Report 2023

NNIT launched the New Beginning strategy in 2023 to position the company as a pure-play IT consulting business highly specialized in global life sciences and the public sector in Denmark and focusing on organic and acquisitive growth combined with efficiency enhancements. The Group improved business and financial performance throughout the year and delivered on the outlook, which was upgraded in August, 2023.

2023 key highlights

• Revenue grew by 15.2% (organic growth of 10.8%) to DKK 1,728 million following solid performance on existing engagements and onboarding of new customers across life sciences globally and the public and private sectors in Denmark.
• NNIT improved the operating result before special items significantly to DKK 116 million compared to a loss of DKK 7 million 2022 and lifted the operating profit margin before special items to 6.7% from -0.5% in 2022. Progress was driven by higher activity and capacity utilization combined with cost reductions.
• Special items amounted to DKK 69 million against DKK 278 million in 2022 and related mainly to earn-out payments.

2024 outlook

• NNIT expects to maintain the momentum from 2023 and continue to deliver organic revenue growth and profitability improvements in 2024 driven by good traction with customers and positive effects of efficiency measures.
• The Group expects to generate organic revenue growth of around 10% through expansion of engagements with existing customers and onboarding of new customers.
• The operating profit margin before special items is expected to increase to 8-9% based on improved capacity utilization, positive effects of increased use of nearshore and offshore capabilities, and by leveraging the regional structure and internal financial steering introduced in 2023.
• The outlook is based on assumptions of relatively stable market conditions, no further deterioration of the global economy and stable exchange rates.
• NNIT expects to book costs of up to DKK 15 million for contingent consideration (earn-out) relating to completed acquisitions as special items in 2024.

Pär Fors, CEO of NNIT, comments: "2023 was a transformative year for NNIT as we relaunched our company as a pure-play IT consulting business highly specialized in global life sciences and the public sector in Denmark. We accelerated momentum throughout the year, confirming our confidence in the new strategic roadmap and enabling us to deliver on the promise of increased revenue and profitability. Looking into 2024, we see ample opportunities for growth within the life sciences space and a solid pipeline within the public sector in Denmark."