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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
tnjh@nnit.com
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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