Q4 2017

Revenue grew by 4.8% in constant currencies in 2017 with particularly two circumstances influencing the performance: First, an arbitration settlement with a customer in the public segment resulted in a one-off revenue reversal, reducing the overall growth by 0.9pp, and a small decline in revenue from our largest single customer. The acquisition of SCALES impacted the growth positively. Organic growth in constant currencies was 1.8%, in line with the most recent guidance of 1-3% provided in October 2017 and at the low end of the guidance of 1-5% provided in January 2017. Revenue in reported currencies was 0.2pp lower due to depreciation of key currencies. The operating profit margin in constant currencies of 9.2% was a little above the most recent guidance of “around 9%” provided in October 2017 and below the guidance provided in January 2017 of “around 10” due to the one-off revenue reversal. In reported currencies the operating profit margin was 0.4pp higher, positively impacted by currency tailwind.

The guidance for 2018 revenue growth is 4-7% in constant currencies. The growth is based on IFRS 15 restated 2017 revenue of DKK 2,851m. NNIT believes the long-term target of growing revenue by at least 5% remains achievable. However, continued uncertainty about projected sales to the Novo Nordisk Group should be noted. The operating profit margin in constant currencies with the IFRS 15 and IFRS 16 principles is expected to be in the interval 10-10.5%. Accordingly, NNIT expects to meet the long-term target of an operating profit margin of at least 10% in 2018.

“Following a challenging third quarter I am very pleased that we closed 2017 on a good note with high operating profits in the fourth quarter. I am particularly pleased that our strong underlying cash flow allows us topropose and increased dividend including interim dividend to a total of DKK 4.30 per share in a year where we build a new data center and acquired SCALES.” 

Per Kogut, Chief Executive Officer (CEO)

Investor relations contact

Klaus Hosbond Skovrup
Head of Investor Relations

+45 3079 5355

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