Annual Report 2013: Controlled Growth

NNIT's stable organic growth continued in 2013. Turnover increased by 9% to just over DKK 2.2 billion and the pre-tax result for primary operations was DKK 246 million, an increase of 14 % compared to the previous year. In addition, in the past year, NNIT increased its workforce and strengthened its market position via more global sourcing.

In 2013, NNIT once again gained market share and delivered stable growth and a healthy profit. With growth in turnover of 9%, NNIT is strongly positioned in the Danish market for IT services, which grew by just 1.5% in 2013 according to latest forecast from market analysis company IDC (source: IDC Blackbook Q4 2013). A significant reason for the growth was NNIT's successful integration of two major new clients from 2012, DSB and Arla. In addition, a great deal of engagements with many existing clients significantly contributed to growth. In November 2013, NNIT signed a major IT operations contract with Vestas, but this will first impact the annual result in 2014.

”We're very pleased with NNIT's results in 2013. The fast growth is controlled and we've retained the elements that have created stable growth and healthy profits every year of the 15 years that NNIT has existed: Quality in IT solutions and IT operations, clear focus on selected client segments and constant focus on client satisfaction. In addition, we've been able to increase our use of global sourcing, which enables us to be competitive in terms of price and quality," says NNIT CEO Per Kogut.

IPO evaluation continues
Earlier in the year NNIT's Board of Directors initiated an evaluation of the possibilities for a potential listing of the company against a background of solid growth and earnings over the past several years. The exploration was requested NNIT’s owner, Novo Nordisk, with the aim to evaluate whether a listing of NNIT would support the continued development and value creation of the company.

"The annual report that we've published today, simply show that NNIT continues to enjoy positive development and has a strong position in terms of creating even more value in the future. So this means the evaluation of a potential listing on the stock exchange continues as planned. However, it's way too early to say anything about the results of the exploration," says NNIT CFO Krogsgaard Thomsen.

A decision about the future ownership of NNIT will be made based on the evaluation.

Continued internationalisation In 2013, NNIT expanded its presence outside Denmark. The total proportion of NNIT employees who are based in offices in China, the Czech Republic, Germany, Philippines, Switzerland and the USA increased from 25% to 30%. At the turn of the year, more than 700 of NNIT's 2,184 employees were based outside Denmark.

In 2014, as part of this development, NNIT commenced establishing a fourth international delivery office in Prague. This near shoring office will provide new opportunities for delivering to clients who do not permit their data to leave the EU. The aim is to have 40 people employed in Prague by the end of the year.

Expectations for 2014 In the early summer of 2013, NNIT introduced a new business strategy that sets new targets for 2020 but also maintains focus on NNIT's three fundamental business areas: IT operations, IT solutions and specialised IT services for international pharmaceutical and biotech companies. Moving towards 2020, NNIT aims to achieve long-term, controlled growth, with an annual growth in turnover of at least 5 % and a market leading profit (EBIT) of at least 10 %.

In 2014, NNIT expects to achieve its strategic goal, with a growth in turnover of 5–8 % and a profit (EBIT) of 10 %.