At the end of 2021, with effect from January 1, 2022, NNIT carried out a major organizational change to create three distinct business units:
- Life Science Solutions (LSS)
- Cloud and digital solutions (CDS)
- Hybrid Cloud Solutions (HCS)
The new organizational structure makes it possible to adapt to the various characteristics of our clientele, which requires a tailor-made approach in each market segment, and the need to further accelerate business development by closely aligning with the needs of our clients. Please see more details on the strategic rationale in the 2021 Annual Report on pages 22-25.
Since the publication of the first quarter 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. The implementation of the new business units is still ongoing with respect to shared production costs (e.g. buildings, legal and other overhead costs) as well as the distribution of sales, marketing and administrative costs. These elements are presented below at Group level.
Life Sciences Solutions
The business unit develops and delivers best-in-class digital solutions to support the entire life sciences value chain. LSS services are primarily characterized by projects that are only partially recurring at the customer level, with some services being repeatable. There is some seasonality related to holiday periods etc. The business unit includes revenues from the former life sciences customer segment and a minor contribution from public customers.
Cloud and digital solutions
The business unit develops and delivers best-in-class digital solutions, enabling mission-critical applications in the cloud and taking full advantage of the growing Microsoft ecosystem. CDS services are primarily characterized by projects that are only partially recurring at the client level, with some services being repeatable. There is some seasonality related to holiday periods 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 the digital transformation of our customers. HCS services primarily comprise of 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 customer.
The interim report for the first quarter of 2022 will be published on May 6, 2022.
Presentation – Group and restated business unit financial figures
|BU production costs||596||599||608||620||2,422|
|BU gross margin||135||111||91||119||455|
|BU gross margin||18%||16%||13%||16%||16%|
|Indirect production cost||35||25||17||32||110|
|Sales and marketing expenses||30||31||29||32||122|
|Operating profit bf. special items||48||35||23||37||143|
|OPM boyfriend. special items||6.6%||5.0%||3.2%||5.0%||5.0%|
|BU production costs||125||132||158||159||574|
|BU gross margin||42||34||33||41||149|
|BU gross margin||25%||20%||17%||20%||21%|
|BU production costs||175||179||176||178||708|
|BU gross margin||36||34||23||48||140|
|BU gross margin||17%||16%||11%||21%||17%|
|BU production costs||296||288||274||283||1,140|
|BU gross margin||57||43||35||30||166|
|BU gross margin||16%||13%||11%||ten%||13%|
|Customer segments / new BUs||SCS||LSS||CDS||Total|
|Life Sciences (excluding 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|
Contact for more information
Executive Vice President and Chief Financial Officer
Tel: +45 3077 9500
Tina Joanne Hindsbo
Media Relations Manager
Tel: +45 3077 9578
The NNIT group provides a wide range of IT and consulting services internationally.
In Denmark, where the group’s head office is located, we are one of the leading IT companies, serving private and public sector clients across all industries. In the rest of Europe, Asia and the United States, we focus solely on life sciences companies.
By supporting the entire supply chain, we help optimize internal business processes, production, sales and customer experience:
We advise, build, operate and support, enabling digital transformation and clients to realize the full potential of their organizations. Our role is to foster innovation and leave the mark for our customers and to which we aspire.
The NNIT Group consists of the group company NNIT A/S and its subsidiaries Valiance, SCALES Excellis Health Solutions, SL Controls and prime4services. Learn more at www.nnit.com.