Q2 2026 NNIT AS Earnings Call

August 28, 2026

Speaker #2: The host has connected you to the call. Line muted.

Operator 1: The host has connected you to the call. Line muted.

Speaker #3: At this time, I would like to welcome everyone to NNIT's Q2 2026 results call. Today's call is being recorded. If you have any objections, please disconnect at this time.

Operator 2: At this time, I would like to welcome everyone to NNIT's Q2 2026 results. Today's call is being recorded. If you have any objections, please disconnect at this time. All participants will be on listen-only mode throughout the presentation, and afterwards, there will be a question and answer session. Now to turn the call over to your speakers, you may now begin.

Operator: At this time, I would like to welcome everyone to NNIT's Q2 2026 results. Today's call is being recorded. If you have any objections, please disconnect at this time. All participants will be on listen-only mode throughout the presentation, and afterwards, there will be a question and answer session. Now to turn the call over to your speakers, you may now begin.

Speaker #3: All participants will be on listen-only mode throughout the presentation, and afterwards there will be a question-and-answer session. Only two speakers are allowed to join the call. You may now begin.

Speaker #4: Thank you very much, operator, and everybody. Please turn to slide number two. Good morning, and thank you for joining NNIT's webcast. My name is Lars Petersen.

Lars B. Petersen: Thank you very much, operator, and everybody, please turn to slide number 2. Good morning, and thank you for joining NNIT's webcast. My name is Lars Petersen. I am heading up the communication department at NNIT. With me today at the headquarter in Copenhagen, I have the pleasure of our CEO, Claus Rydkjær, and CFO, Carsten Ringius. In a minute, they will present the business highlights and Q2 results for 2026, which we released yesterday afternoon. Please turn to slide number 3. Claus will go through the key highlights, including the regional performance, and then Carsten will follow with the group financial highlights and financial outlook. Before heading to the next slide, please do pay attention to the disclaimer in the bottom of the slide. Having digested that disclaimer, let's turn to slide number 4, and I will give the words to Claus. Please.

Lars Petersen: Thank you very much, operator, and everybody, please turn to slide number 2. Good morning, and thank you for joining NNIT's webcast. My name is Lars Petersen. I am heading up the communication department at NNIT. With me today at the headquarter in Copenhagen, I have the pleasure of our CEO, Claus Rydkjær, and CFO, Carsten Ringius. In a minute, they will present the business highlights and Q2 results for 2026, which we released yesterday afternoon. Please turn to slide number 3. Claus will go through the key highlights, including the regional performance, and then Carsten will follow with the group financial highlights and financial outlook. Before heading to the next slide, please do pay attention to the disclaimer in the bottom of the slide. Having digested that disclaimer, let's turn to slide number 4, and I will give the words to Claus. Please.

Speaker #4: I'm heading up the Communication Department at NNIT. With me today at the headquarters in Copenhagen, I have the pleasure of welcoming our CEO, Klaus Rydkjær, and our CFO, Karsten Rengus.

Speaker #4: In a minute, they will present the business highlights and second-quarter results for 2026, which we released yesterday afternoon. Please turn to slide number three.

Speaker #4: Klaus will go through the key highlights, including the regional performance, and then Karsten will follow with the group financial highlights and financial outlook. Before heading to the next slide, please do pay attention to the disclaimer at the bottom of the slide.

Speaker #4: Having digested that disclaimer, let's turn to slide number four. And I will give the word to Klaus. Please.

Speaker #5: Thank you, Lars. And good morning, everybody. My name is Klaus Rydkjær, and I am, as mentioned, the CEO of NNIT. I will now briefly go through the second quarter 2026 key financial figures.

Claus Rydkjær: Thank you, Lars, and good morning, everybody. My name is Claus Rydkjær, and I am, as mentioned, the CEO of NNIT. I will now briefly go through the Q2 2026 key financial figures. First of all, we are tracking according to our internal plan. Our revenue for the Q2 amounted to 442 million DKK, corresponding to a reported revenue growth of -4.5% and constant currency growth of -4.4%. Despite the revenue development continues to be negative, we improved compared with the Q1, where the constant currency growth was -7.3%. The sequential improvement is driven by the growth initiatives effectuated in the beginning of the quarter and improved order entry. Our group EBIT, excluding special items, was 21 million DKK, equal to a margin of 4.8%.

Speaker #5: First of all, we are tracking according to our internal plan. Our revenue for the second quarter amounted to 442 million Danish kroner, corresponding to a reported revenue growth of minus 4.5% and constant currency growth of minus 4.4%.

Speaker #5: Despite the revenue development continuing to be negative, we improved compared with the first quarter, where constant currency growth was minus 7.3%. The sequential improvement is driven by the growth initiatives effectuated at the beginning of the quarter and improved order entry.

Speaker #5: Our Group EBIT, excluding special items, was 21 million Danish kroner, equal to a margin of 4.8%. We're pleased to see that the profitability was broadly in line with the same quarter last year, despite significantly lower revenue.

Claus Rydkjær: We are pleased to see that the profitability was broadly in line with the same quarter last year, despite significantly less revenue. This is due to operational improvement with uplift in utilization, capacity adjustments carried out, and realization of cost savings. Please turn to the next slide. During the quarter, we had a laser-sharp focus on the performance, not only on a group level, but down to every single customer-facing consultant. Our performance management setup is running at a higher cadence where we, across the management team, are being very operationally focused. This is necessary to change current trajectory. Therefore, we are also pleased to see uplifts in the utilization across our consultants across regions and much lower bench time. Moreover, we continue to receive high customer satisfaction scores from our customers and see more sales activity. Overall, we are trending in the right direction.

Speaker #5: This is due to operational improvement, with an uplift in utilization, capacity adjustments carried out, and the realization of cost savings. Please turn to the next slide.

Speaker #5: During the quarter, we had a laser-sharp focus on performance, not only at a group level but down to every single customer-facing consultant. Our performance management setup is running at a higher cadence, with the management team being very operationally focused.

Speaker #5: This is necessary to change the current trajectory. Therefore, we're also pleased to see uplifts in the utilization across our consultants, across regions, and much lower bench time.

Speaker #5: Moreover, we continue to receive high customer satisfaction scores from our customers and see more sales activity. Overall, we're trending in the right direction. As we mentioned at our last webcast in May, we launched two AI platforms, Lumina and Alera, in the second quarter. We deployed our AI services to selected customers across our regions.

Claus Rydkjær: As we mentioned at our last webcast in May, we launched two AI platforms, Lumina and Alera. In the Q2, we have deployed our AI services to selected customers across our regions. From the first use cases, we see tangible efficiency gains, not only from an NNIT perspective, but also from a customer perspective. Beyond time to delivery reductions, we have become more competitive, where we are now bidding on projects that we would normally not pursue. It is especially within new system upgrades, where we can deliver much more tailor-made systems than the current standardized systems currently being used by customers, particularly in the Public Denmark segment. At the Q1 webcast, we mentioned that we need to act and conduct an exhaustive analysis of the company, including operating model and commercial execution, leaving no stones unturned to ensure that we can restore growth and lift profitability.

Speaker #5: From the first use cases, we see tangible efficiency gains not only from an NNIT perspective, but also from a customer perspective. Beyond time-to-delivery reductions, we have become more competitive, where we are now bidding on projects that we would normally not pursue.

Speaker #5: It is especially within new system upgrades where we can deliver much more tailor-made systems than the standardized systems currently being used by customers.

Speaker #5: Particularly in the public segment. At the Q1 webcast, we mentioned that we need to act and conduct an exhaustive analysis of the company, including the operating model and commercial execution.

Speaker #5: Leaving no stone unturned to ensure that we can restore growth and lift profitability. Late in the quarter, we completed this strategic review that confirmed NNIT's core strengths.

Claus Rydkjær: Late in the quarter, we completed this strategic review that confirmed NNIT's core strengths, a strong position with Big Pharma, high customer loyalty and satisfaction, deep domain expertise. The review also made clear that to fully unlock this potential, we need to sharpen our commercial, delivery, and operating model. We are therefore redesigning how we organize what we take to market and how we sell it. We will share more detail as this work concludes. Therefore, we have kicked off a comprehensive transformation program that forms the foundation for our new strategic direction. Our aspiration is clear. We want NNIT to become an innovative and AI-enabled niche specialist serving the international life sciences industry and regulated industries in Denmark. As part of the program, we are already addressing near to midterm performance improvements whilst initiating the strategic direction and ambition for the company in the longer term.

Speaker #5: We have a strong position with Big Pharma, high customer loyalty and satisfaction, and deep domain expertise. The review also made clear that, to fully unlock this potential, we need to sharpen our commercial, delivery, and operating model.

Speaker #5: We're therefore redesigning how we organize what we take to market, and how we sell it. We will share more details as this work concludes.

Speaker #5: Therefore, we've kicked off a comprehensive transformation program that forms the foundation for our new strategic clarity: we want NNIT to become an innovative and AI-enabled niche specialist serving the international life sciences industry and regulated industries in Denmark.

Speaker #5: As part of the program, we're already addressing near- to mid-term performance improvements, whilst initiating the strategic direction and ambition for the company in the longer term.

Speaker #5: At a later stage, we will share more details about the transformation program and the updated strategy for NNIT. The transformation work is underway, and I'm confident that it puts us on the right path.

Claus Rydkjær: At a later stage, we will share more details about the transformation program and the updated strategy for NNIT. The transformation work is underway, and I am confident that it puts us on the right path. Lastly, I will just briefly highlight that we have maintained our full year financial outlook. We continue to expect to see further improvements to the revenue from the initiatives carried out and profitability gradually improving as part of revenue uplift and effectuated cost savings initiatives. Please turn to the next slide. In our life sciences regions, we see a somewhat fragmented picture. However, the revenue in the second quarter has contracted across the regions, which mainly can be attributed to the lower than usual order entry in Q1. Despite the revenue decline and lower profitability, the financial performance in Region Europe was as internally expected.

Speaker #5: Lastly, I'll just briefly highlight that we've maintained our full-year financial outlook. We continue to expect to see further improvements to revenue from the initiatives carried out and profitability gradually improving as part of the revenue uplift and effectuated cost savings initiatives.

Speaker #5: Please turn to the next slide. In our Life Sciences regions, we see a somewhat fragmented picture. However, the revenue in the second quarter has contracted across the regions, which mainly can be attributed to the lower-than-usual order entry in the first quarter.

Speaker #5: Despite the revenue decline and lower profitability, the financial performance in Region Europe was as internally expected. In constant currency, revenue declined by 11.9%, impacted by the lower order entry in Q1 and continued customer hesitation amongst Tier 1 customers.

Claus Rydkjær: In constant currency, revenue declined by 11.9%, impacted by the lower order entry in Q1 and continued customer hesitation amongst tier 1 customers. Region Europe has continued to grow its lower tier segments, and we see further growth opportunities based on the current demand. During the quarter, we scaled up delivery on an AI engagement with a mid-tier global pharma client. More broadly, AI demand continues to build. Our AI services now feature in a significantly higher share of our bids than just a few quarters ago. The regional EBIT declined compared to the same period last year, driven by the revenue decline. This was partly offset by the materialization of cost savings and capacity adjustments we have carried out. At our last webcast, we said that we expected Region US to gradually improve through the coming quarters.

Speaker #5: Region Europe has continued to grow its lower-tier segments, and we see further growth opportunities based on the current demand. During the quarter, we scaled up delivery on an AI engagement with a mid-tier global pharma client. More broadly, AI demand continues to build.

Speaker #5: Our AI services now feature in a significantly higher share of our bids than just a few quarters ago. The regional EBIT declined compared to the same period last year, driven by the revenue decline.

Speaker #5: This was partly offset by the realization of cost savings and capacity adjustments we've carried out. At our last webcast, we said that we expected Region US to gradually improve through the coming quarters.

Speaker #5: Region US's revenue declined by 11.2% in Q2 on the back of a soft order entry in Q1. However, the quarter-over-quarter performance improved, especially towards the end of the quarter. Sales activity increased, with the US winning a number of contracts, forming a growing backlog for the rest of the year and leading into next year.

Claus Rydkjær: Region US's revenue declined by 11.2% in Q2 on the back of a soft order entry in Q1. However, the quarter-over-quarter performance improved. Especially towards the end of the quarter, the sales activity increased, where the US won a number of contracts, forming a growing backlog for the rest of the year and leading into next year. In Q1, we noted our participation in the US National Drug Code program, the 12-digit NDC pilot program. The program has now advanced to its second phase, and we are seeing solid commercial traction with multiple contracts signed. While individual deal sizes remain modest, we see this as a meaningful growth opportunity as the NDC transition gathers pace from across the industry. One of the key highlights in Q2 was the Region US's return to strong profitability.

Speaker #5: In Q1, we noted our participation in the US National Drug Code program, the NDC 12 pilot program. The program has now advanced to its second phase, and we're seeing solid commercial traction with multiple contracts signed.

Speaker #5: While individual deal sizes remain modest, we see this as a meaningful growth opportunity as the NDC transition gathers pace across the industry. One of the key highlights in Q2 was the US region's return to strong profitability.

Speaker #5: The margin was 29.5%, compared with 21.7% in the same quarter last year and 29.9% in Q1 of this year. The uplift is driven by the realization of initiated cost reductions and improved utilization.

Claus Rydkjær: The margin was 29.5%, compared with 21.7% in the same quarter last year and 2.99% in Q1 of this year. The uplift is driven by realization of initiated cost reductions and utilization improving. Furthermore, we have adjusted the capacity, whilst also structurally lower the non-employee-driven costs. In the second quarter, Region Asia continued to be significantly impacted by a decline in revenue from an existing large tier 1 customer that was not possible to offset from new contract signings. As a result, the constant currency growth was -10.6%. As we have mentioned previously, Region Asia has expanded its sales strategy to target local pharma and biotech companies. The region has continued to execute on that strategy in Q2, bringing in more local market customers with more projects focusing on AI. After the quarter close, we announced the divestment of Singapore.

Speaker #5: Furthermore, we've adjusted the capacity whilst also structurally lowered the non-employee-driven costs. In the second quarter, Region Asia continued to be significantly impacted by a decline in revenue from an existing large Tier 1 customer that was not possible to offset from new contract signings.

Speaker #5: As a result, the constant currency growth was minus 10.6%. As we've mentioned previously, region Asia has expanded its sales strategy to target local pharma and biotech companies.

Speaker #5: The region has continued to execute on that strategy in Q2, bringing in more local market customers with more projects focusing on AI. After the quarter close, we announced the divestment of Singapore.

Speaker #5: We want to channel our focus on the other life sciences areas where we do see opportunities to grow, which the strategic analysis also concluded.

Claus Rydkjær: We want to channel our focus on the other life sciences areas where we do see opportunities to grow, which also the strategic analysis concluded. The region's EBIT margin declined year-over-year due to the lower revenue, and beyond cost savings materializing and planned, Region Asia has continued to tighten its cost base and adjust capacity in areas with low demand. Please turn to the next slide, where I will go through Public Denmark and SCALES. The Public Denmark segment delivered strong growth of 10% in Q2, driven by ramping up on the projects won in late 2025. These contracts are with the Danish Health Data Authority, also known as Sundhedsdatastyrelsen, and with the Danish Agency for IT and Learning, also known as Styrelsen for It og Læring. During the latter part of the quarter, the tender activity has notably increased after the government was formed.

Speaker #5: The region's EBIT margin declined year over year due to the lower revenue. Beyond cost savings—both materialized and planned—Region Asia has continued to tighten its cost base and adjust capacity in areas with low demand.

Speaker #5: Please turn to the next slide, where I will go through Public Denmark and scales. The Public Denmark segment delivers strong growth of 10% in Q2, driven by ramping up on the projects won in late 2025.

Speaker #5: These contracts are with the Danish Health Data Authority, also known as Sundhedsdatastyrelsen, and with the Danish Agency for IT and Learning, also known as Styrelsen for IT og Læring.

Speaker #5: During the latter part of the quarter, tender activity has notably increased after the government was formed. After the launch of Lumina in late Q1, we've moved our AI framework into commercial application.

Claus Rydkjær: After the launch of Lumina in late Q1, we have moved our AI framework into commercial application. We have deployed Lumina to selected customers in the public sector with promising initial results. Lumina is not only generating efficiency gains for NNIT in terms of project delivery, but making an impact for our customers that adopt Lumina as a service. Based on the initial use cases, we see further opportunities to apply Lumina to bids around legacy system transformation where new custom solutions are in demand. All in all, we are pleased with the progress so far and expect our AI frameworks to be a central part of our services going forward. The regional EBIT margin increased from 6.4% in Q2 last year to 10.4% in Q2 this year. The margin uplift is driven by leveraging revenue growth and from the actions taken during Q1, where we initiated further cost reductions and capacity adjustments.

Speaker #5: We've deployed Lumina to selected customers in the public sector with promising initial results. Lumina is not only generating efficiency gains for IT in terms of project delivery, but also making an impact for our customers who adopt Lumina as a service.

Speaker #5: Based on the initial use cases, we see further opportunities to apply Lumina to bids around legacy system transformation, where new custom solutions are in demand.

Speaker #5: All in all, we're pleased with the progress so far and expect our AI frameworks to be a central part of our services going forward.

Speaker #5: The regional EBIT margin increased from 6.4% in Q2 last year to 10.4% in Q2 this year. The margin uplift is driven by leveraging revenue growth and by actions taken during Q1, where we initiated further cost reductions and capacity adjustments.

Speaker #5: Scales has continued its growth momentum into Q2, delivering constant currency growth of 10.9%. This growth has mainly been driven by existing customer engagements, and partly by new customer projects.

Claus Rydkjær: SCALES has continued its growth momentum into Q2, delivering constant currency growth of 10.9%. The growth has mainly been driven by existing customer engagements and partly from new customer projects. Q2 was also the first full quarter where the integration of the Microsoft service offering from the former Region Denmark was in operation. We do see solid synergies coming out of the integration and a stronger and more coherent offering towards our customers. The regional EBIT margin slightly declined compared with the same quarter last year, which was driven by increased use of subcontractors due to internal capacity constraints and newer projects carrying a lower margin than previously completed projects. Please turn to the next slide. Now I will hand over to Carsten for the next section. Carsten, please.

Speaker #5: Q2 was also the first full quarter where the integration of the region Denmark was in operation. We do see solid synergies coming out of the integration, and a stronger and more coherent offering towards our customers.

Speaker #5: The regional EBIT margin slightly declined compared with the same quarter last year, which was driven by increased use of subcontractors due to internal capacity constraints, and newer projects carrying a lower margin than previously completed projects.

Speaker #5: Please turn to the next slide. Now, I will hand over to Carsten for the next section. Carsten, please.

Speaker #2: Thank you, Klaus. And good morning. Please turn to slide 9 for the key financial highlights. Starting with the top line, reported group revenue was 442 million Danish kroner, a decline in reported currency of 4.5% or 4.5% in constant currency.

Carsten Ringius: Thank you, Claus, and good morning. Please turn to slide 9 for the key financial highlights. Starting with the top line. Reported revenue. Group revenue was DKK 442 million, a decline in reported currency of 4.5% or 4.5% in constant currency. As Claus mentioned, this was in line with our initial expectations and reflects the lower order entry carried over from Q1 and continued tier 1 customer caution in life sciences. The lower revenue development was partly offset by strong growth across Public Denmark segment and SCALES. Comparing quarter-over-quarter, we saw order entry pick up across all regions towards the end of the quarter, which gives us improved visibility going into the H2. On profitability, group EBIT excluding special items, was DKK 21.3 million, corresponding to a margin of 4.8%. This was broadly stable compared with 5% the same quarter last year.

Speaker #2: As Klaus mentioned, this was in line with our initial expectations and reflects the lower order entry carried over from Q1, as well as continued Tier 1 customer caution in life sciences.

Speaker #2: The lower revenue development was partly offset by strong growth across the public segment and scales. Comparing quarter over quarter, we saw order entry pick up across all regions towards the end of the quarter, which gives us improved visibility going into the second half.

Speaker #2: On profitability, group EBIT excluding special items was DKK 21.3 million, corresponding to a margin of 4.8%. This was broadly stable compared with 5% in the same quarter last year.

Speaker #2: The earnings impact of the approximately DKK 21 million from the revenue shortfall was largely offset through efficiency gains, cost reduction initiatives, and capacity adjustments.

Carsten Ringius: The earnings impact of the approximately DKK 21 million from the revenue shortfall was largely offset through efficiency gains, cost reduction initiatives, and capacity adjustments. Special items in the quarter were DKK 18.5 million, down from DKK 20.3 million in Q2 last year. These relate primarily to restructuring costs as we continue to right-size the organization. The average headcount for the period was 1,533 full-time employees, down from 1,710 in the same period last year, reflecting the restructuring and capacity adjustments we have implemented over the past year. Free cash flow in Q2 was DKK 8 million, compared with negative DKK 61 million in Q2 last year, a year-on-year improvement of DKK 69 million. The improvement was driven by stronger operating cash flow, specifically through improved trade receivables collections, better customer payment timing, and a net tax receipt.

Speaker #2: Special items in the quarter were DKK 18.5 million, down from DKK 20.3 million in Q2 last year. These relate primarily to restructuring costs as we continue to rightsize the organization.

Speaker #2: The average headcount for the period was 1,533 full-time employees, down from 1,710 in the same period last year, reflecting the restructuring and capacity adjustments we have implemented over the past year.

Speaker #2: Free cash flow in Q2 was 8 million Danish kroner, compared with negative 61 million Danish kroner in Q2 last year—a year-on-year improvement of 69 million Danish kroner.

Speaker #2: The improvement was driven by stronger operating cash flow, specifically through improved trade receivables collections, better customer payment timing, and a net tax receipt. This was partly offset by lower trade payables and increased prepayments related to larger new transition projects.

Carsten Ringius: This was partly offset by lower trade payables and increased prepayments related to larger new transition projects. Turn to the next slide, please. Finally, turning to our full-year financial outlook. We maintain our financial outlook for 2026 as communicated on 7 May. Constant currency revenue growth is expected to be single digit negative for the full year. The improved order entry we saw towards the end of Q2 supports our confidence in a better revenue trajectory in the H2, including the uplift from growth initiatives and further initiatives to come as part of the transformation. Group EBIT margin, excluding special items, is expected to be in the range of 4% to 7%. The sequential improvement from Q1 to Q2 confirms that our cost actions are materializing as planned, and we expect to sustain this trajectory through the H2.

Speaker #2: Turn to the next slide, please. Finally, turning to our full-year financial outlook, we maintain our financial outlook for 2026 as communicated on the 7th of May.

Speaker #2: Constant currency revenue growth is expected to be single-digit negative for the full year. The improved order entry results towards the end of Q2 support our confidence in a better revenue trajectory in the second half, including the uplift from growth initiatives and further initiatives to come as part of the transformation.

Speaker #2: Group EBIT margin excluding special items is expected to be in the range of 4% to 7%. The sequential improvement from Q1 to Q2 confirms that our cost actions are materializing as planned.

Speaker #2: And we expect to sustain this trajectory through the second half. Special items are expected to be below last year's level of €83 million. Year to date, we stand at €27 million, which is well below the €46 million at the same point last year.

Carsten Ringius: Special items are expected to be below last year's level of DKK 83 million. Year-to-date, we stand at DKK 27 million, which is well below the DKK 46 million at the same point last year. Special items for the remainder of the year will mostly be related to restructuring costs. Just to summarize, Q2 came in on plan. The cash flow trajectory has improved materially, and we are maintaining our full-year guidance. Combined with the transformation program Claus outlined, we believe we are taking the right steps to position NNIT for a return to sustainable, profitable growth. Please turn to the next slide.

Speaker #2: Special items for the remainder of the year will mostly be related to restructuring costs. Just to summarize: Q2 came in on plan, the cash flow trajectory has improved materially, and we are maintaining our full-year guidance.

Speaker #2: Combined with the transformation program Klaus outlined, we believe we are taking the right steps to position NNIT for a return to sustainable, profitable growth.

Speaker #2: Please turn to the next slide.

Speaker #3: If you do wish to ask a question, you will need to press *5* on your telephone keypad. To withdraw a question, press *5* again.

Operator 2: If you do wish to ask a question, you will need to press 5 star on your telephone keypad. To withdraw your question, press 5 star again.

Operator: If you do wish to ask a question, you will need to press 5 star on your telephone keypad. To withdraw your question, press 5 star again.

Speaker #2: Now, I will hand it back to Klaus for closing remarks. Klaus?

Carsten Ringius: Now I will hand it back to Claus for closing remarks. Claus?

Speaker #4: Thanks, Carsten. And let me wrap up with a few concluding remarks before we take your questions. First, on performance: Q2 came in on track.

Claus Rydkjær: Thanks, Carsten, and let me wrap up with a few concluding remarks before we take your questions. First, on performance. Q2 came in on track. Revenue declined as anticipated given the customer caution we have been experiencing, but the sequential trend improved from Q1 to Q2, and importantly, order entry picked up across all regions towards the end of the quarter. Furthermore, we saw improved operational performance with utilization increasing. The profitability was broadly stable compared with last year, reflecting the actions taken to reduce cost and adjusting capacity. We deployed our AI service offerings to selected customers with promising initial results, both internally and with our customers. The offerings are making us more competitive, enabling us to bid on projects we previously would consider out of scope. The comprehensive review we completed this quarter confirmed both where we are strong and where we must improve.

Speaker #4: Revenue declined as anticipated, given the customer caution we've been experiencing. However, the sequential trend improved from Q1 to Q2, and, importantly, order entry picked up across all regions towards the end of the quarter.

Speaker #4: Furthermore, we saw improved operational performance, with utilization increasing. Profitability was broadly stable compared with last year, reflecting the actions taken to reduce cost and adjust capacity.

Speaker #4: We deployed our AI service offerings to selected customers with promising initial results, both internally and with our customers. The offerings are making us more competitive and enabling us to bid on projects we previously would have considered out of scope.

Speaker #4: The comprehensive review we completed this quarter confirmed both where we are strong and where we must improve. On that basis, we've launched the transformation program focused on our operating delivery and commercial model.

Claus Rydkjær: On that basis, we have launched a transformation program focused on our operating, delivery, and commercial model. This program lays the foundation for NNIT's future strategic direction, an AI-enabled niche specialist serving life sciences internationally and regulated industries in Denmark. We will share the full transformation roadmap and updated strategy in due course. We are maintaining our full-year outlook as we have confidence in the trajectory we are seeing. This concludes the Q2 presentation for today. With that, Carsten and I are happy to answer your questions. Operator, please turn to the next slide and open for questions.

Speaker #4: This program lays the foundation for NNIT's future strategic direction: an AI-enabled, niche specialist serving life sciences internationally and regulated industries in Denmark. We will share the full transformation roadmap and updated strategy in two calls.

Speaker #4: We're maintaining our full-year outlook, as we have confidence in the trajectory we're seeing. This concludes the Q2 presentation for today. With that, Carsten and I are happy to answer your questions.

Speaker #4: Operator, please turn to the next slide and open for questions.

Speaker #3: Thank you. We will now begin the Q&A session. If you wish to ask a question, you'll need to press five star on your telephone keypad.

Operator 2: Thank you. We will now begin the Q&A session. If you do wish to ask a question, you will need to press 5 star on your telephone keypad. To withdraw your question, press 5 star again. Our first question comes from the line of Poul Jessen from Danske Bank. Please go ahead. You will now be unmuted.

Operator: Thank you. We will now begin the Q&A session. If you do wish to ask a question, you will need to press 5 star on your telephone keypad. To withdraw your question, press 5 star again. Our first question comes from the line of Poul Jessen from Danske Bank. Please go ahead. You will now be unmuted.

Speaker #3: To withdraw a question, press five star again. Our first question comes from the line of Paul Jessen from Danske Bank. Please go ahead. You are now unmuted.

Speaker #5: Yes, thank you for taking my questions. I have a few I want to start with. You put emphasis on that you have improved your utilization—could you tell a little more about where you see that?

Poul Jessen: Yes. Thank you for taking my questions. I have a few ones to start with. You put emphasis on that you have improved your utilization. Could you tell a little more where you see that? Because if I look at your gross margin, let's say the last 6 quarters, then this quarter is still in the low, and you grow or cut FTEs by 10% year-over-year, and revenue down by 4%. So where is this improved efficiency or utilization seen in the numbers?

Speaker #5: Because if I look at your gross margin—let's say, over the last six quarters—then this quarter is still at the low end. You grow or cut 50s by 10% year-over-year, and revenue is down by 4%.

Speaker #5: So, where is this improved efficiency or utilization seen in the numbers?

Speaker #2: Well.

Carsten Ringius: Well-

Speaker #5: That's a question.

Poul Jessen: That is a question.

Speaker #2: Yes, that's a good question. We are seeing increased utilization across several areas, as mentioned. But what we are also focusing on, as part of our strategy review, is how we can improve our delivery excellence.

Carsten Ringius: Well, we do see increased utilization across several areas as mentioned. But what we are also focusing on as part of our strategy review is how we can improve our delivery excellence. That means how we can, across the life science business, set up our delivery capacity to deliver, you can say, high profitability by ensuring a less fragmented structure on how we deliver to customers. This is something that we are now focusing on as part of the transformation. This will, to a higher degree, lead into improved gross margin.

Speaker #2: That means, across the life science business, we can set up our delivery capacities to deliver, you can say, higher profitability by ensuring a less fragmented structure in how we deliver to customers.

Speaker #2: This is something that we are now focusing on as part of the transformation. So this will, to a higher degree, lead into improved gross margin.

Speaker #5: Sorry. It's more about going forward than what we've already seen.

Poul Jessen: So it is more going forward than already seen.

Carsten Ringius: It will be a key driver for improved profitability going forward. If we look at some of the projects that we have been finalizing and working on throughout the H1 of the year, they are having a lower margin. As also commented specifically on SCALES, we see the need for using more subcontractors to actually deliver on projects within SCALES as the growth were not able to be managed directly by internal resources. So these are some of the elements that is impacting the margin negatively. If you look specifically at Region Asia, we have another revenue mix compared to last year where we have a larger proportion of hardware sales. So it is a range of different elements that are impacting the margin negative, and pulling the effect of the high utilization in the opposite direction.

Speaker #2: It will be a key driver for improved profitability going forward. And if we look at some of the projects that we have been finalizing and working on throughout the first half of the year,

Speaker #2: Are having a lower margin. That's also commented specifically on Scales. We see the need for using more subcontractors to actually deliver on projects within Scales, as the growth was not able to be managed directly by internal resources.

Speaker #2: So these are some of the elements that are impacting the margin negatively. And if you look specifically at Asia, we have another revenue mix compared to last year, where we have a larger proportion of hardware sales.

Speaker #2: So, it is a range of different elements that are impacting the margin negatively and pulling the effect of the high utilization in the opposite direction.

Speaker #5: Coming to the comment on scales, with the external contracts, the growth in scales has been at more or less the same level for a long time, about 10 or 11% or so.

Poul Jessen: Coming to the common line of SCALES with the external contracts, the growth in SCALES is more or less the same level for a long time, about 10%, 11% or so. What is then the reason for suddenly that you need to take external contractors in? It should be at a level where you could do ordinary planning for the increased activity.

Speaker #5: What, then, is the reason for suddenly needing to take in external contractors? It should be at a level where you could do ordinary planning for the increased activity.

Speaker #2: Well, it has been needed because, you can say, we have some projects being in the same phase of the realization, meaning that the specific profiles required to deliver on the projects have been a constraint.

Carsten Ringius: Well, it has been needed because you can say we have some projects being in the same phase of the realization, meaning that the specific profiles required to deliver on the projects has been a constraint. Of course, it is something that they are usually capable of managing, you can say, to ensure that we can deliver with internal resources. But this H1 of the year, they have not been fully able to balance this delivery to an extent that we could deliver fully on internal resources. That is why they have been required to pull in external resources. But it is of course something that we are working to backfill internally and ensure that we get the recovery on the margins and return to previous profitability levels.

Speaker #2: Of course, it is something that they are usually capable of managing, you could say, to ensure that we can deliver with internal resources.

Speaker #2: But this first half of the year, they have not been fully able to sort of balance this delivery to an extent that we could deliver fully on internal resources.

Speaker #2: That's why they have been required to pull in external resources. But it is, of course, something that we are working to backfill internally and ensure that we get the recovery on the margins and return to previous profitability levels.

Speaker #5: Okay, thanks. Two questions on strategy. You said that you would focus on life sciences and regulated industries in Denmark. You don't talk much about where scale is in this equation.

Poul Jessen: Okay, thanks. Two questions on strategy. You said that you would focus on life science and regulated industries in Denmark. You didn't talk much about where SCALES is in this equation.

Speaker #2: No. If we look at the focus from a transformation point of view, it is a tight focus on actually improving the Life Science vision, initially with the update on our product portfolio. So that has, you can say, a key focus. The second key focus is getting the delivery excellence in place, as we commented on, to really see the margin improvements by having a more optimal way of delivering our services.

Carsten Ringius: If we look at the focus from a transformation point of view, it is a tight focus on actually improving the life science vision, initially with the update on our product portfolio. That has a, you can say, a key focus. The second key focus is getting the delivery excellence in place as we commented on, to really see the margin improvements by having a more optimal way of delivering our services. Then the third part is the entire operating model on how we actually also from an enabling function structure our support functions to deliver to the business in a more, or support the business in a more optimal way. This is what we consider having the largest potential to, you can say, get back to positive and sustainable growth.

Speaker #2: And then the third part is the entire operating model—on how we actually also, from an enabling function, structure our support functions to deliver to the business, or support the business, in a more optimal way.

Speaker #2: So, this is what we consider having the largest potential to, you can say, get back to positive and sustainable growth, with the current scale's performance of growing double digits and having, you can say, best-in-market margins.

Carsten Ringius: With the current SCALES performance of growing double digit, and having, you can say, best in market margins, we believe that we are on a good trajectory in SCALES, requiring less sort of strategic and transformation effort compared to the rest of the business. That's why in the communication that life science and the Danish business is taking the main proportion of the lines in the communication.

Speaker #2: We believe that we are on a good trajectory in scales, requiring less sort of strategic and transformation effort compared to the rest of the business.

Speaker #2: That's why, in the communication, life sciences and Danish business are taking the main proportion of the lines in the communication.

Speaker #5: So, it's more because that scale performs in line with history and what you expect, that communication is on the other parts which has to improve.

Poul Jessen: It's more because that SCALES performs in line with history and what you expect that communication is on the other parts which has to improve.

Speaker #2: Yes.

Carsten Ringius: Yes.

Speaker #5: Okay. Then you showed off your Singapore assets, but you're still in China, and China is still struggling a lot. Could we see that a consequence of the strategic review would be that you would focus on Europe and the US, as there are plenty of business opportunities to go for?

Poul Jessen: Okay. Then you sold off your Singapore assets, but you are still in China, and China is still struggling a lot. Could we see that a consequence of the strategic review would be that you would focus on Europe and the US, as there are plenty of business to go for?

Speaker #2: Yes. If you look at our Chinese remaining business, it is a smaller proportion now of the total NNIT. And from a transformation point of view, it's clear that the effort and the biggest impact will come from looking at Region Europe and Region US.

Claus Rydkjær: Yes. If you look at our Chinese remaining business, it is a smaller proportion now of the total in NNIT, and from a transformation point of view, it is clear that the effort and the biggest impact will come from looking at Region Europe and Region US. So that is why it has the, you can say, the core focus in our transformation program.

Carsten Ringius: Yes. If you look at our Chinese remaining business, it is a smaller proportion now of the total in NNIT, and from a transformation point of view, it is clear that the effort and the biggest impact will come from looking at Region Europe and Region US. So that is why it has the, you can say, the core focus in our transformation program.

Speaker #2: So that's why it has, you can say, the core focus in our transformation program.

Speaker #5: Okay, thank you. I'll step back in the queue.

Poul Jessen: Okay. Thank you. I will step back in the queue.

Speaker #1: Thank you, Paul. Next up is Ebbe Joe from SEB. Your line is open.

Operator 2: Thank you, Paul. Next up is Yiwei Zhou from SEB. Your line is open.

Operator: Thank you, Paul. Next up is Yiwei Zhou from SEB. Your line is open.

Speaker #5: Hi, good morning. Thank you for taking my questions. I will do one at a time. You highlighted the AI platform—could you please elaborate a bit on what they are and the pricing proposal or pricing model for the platforms?

Yiwei Zhou: Hi. Good morning. Thank you for taking my questions. I will do one at a time. You highlight the AI platform. Could you please elaborate a bit here on what they are and propose a pricing model for the platforms, and what type of projects you are doing for your customer?

Speaker #5: And what type of projects are you doing for your customer?

Speaker #2: If you look at the sort of the two platforms that we specifically mentioned, so Lumina and Alera. Then sort of Alera is targeting the life sciences segment.

Claus Rydkjær: If you look at the two platforms that we specifically mentioned, Lumina and Alera. Alera is targeting the life sciences segment, and it is a platform that enables our customers to access and process large volumes of data in a fully validated environment. Which means that together with our customers, we are able to deploy an array of use cases that will help them streamline their business, or their life science operations, in a fully validated manner. If we look at Lumina is a platform that zooms in on accelerating software development and also supporting all disciplines in and around software development. With Lumina, we use the platform or allow customers to use it for things such as legacy migration could be an example, where you want to create a quick overview of your legacy applications.

Speaker #2: And it is a platform that enables our customers to access and process large volumes of data in a fully validated environment.

Speaker #2: Which means that, together with our customers, we are able to deploy an array of use cases that will help them streamline their business or their life science operations in a fully validated manner.

Speaker #2: If we look at Lumina, Lumina is a sort of platform that focuses on accelerating software development and also supporting all the disciplines in and around software development.

Speaker #2: So with Lumina, we use the platform or kind of allow customers to use it for things such as, sort of, the legacy migration. That could be an example where you want to create a quick overview of your legacy applications.

Speaker #2: You want to generate documentation that may not have been created to the full extent over the past 25, sometimes 30, years. In order to come up with a clear roadmap for how you can migrate out of a sort of old custom legacy solution and into more of a modern technology.

Claus Rydkjær: You want to generate documentations that may not have been created to the full extent over the past 25, sometimes 30 years, in order to come up with a clear roadmap for how you can migrate out of an old custom legacy solution and into a more modern technology. From a pricing perspective, there are different approaches depending on how we sell it. One is, of course, that we factor it into a project model where we go with a value-based price for the platform, alongside the hours and material that are being brought in. We are also looking into subscription-based models when it is offered more as a service. For Alera, we are essentially approaching it in the same way, where a value-based price together with a T&M-based project or in a subscription-based model.

Speaker #2: From a pricing perspective, there are different approaches depending on how we sell it. One is, of course, that we factor it into a project model, where we go with a value-based price for the platform alongside the hours and material that are being brought in.

Speaker #2: We are also looking into subscription-based models when it is offered more as a service. For Alera, we are essentially approaching it in the same way, with sort of a value-based price together with T&M-based project or as a subscription-based model.

Speaker #2: There is no doubt that the whole sort of pricing of AI solutions and services is something that we are sort of spending a lot of time sort of both looking into and also sort of evolving to keep up with the market.

Claus Rydkjær: There is no doubt that the whole pricing of AI solutions and services is something that we are spending a lot of time both looking into and also evolving to keep up with the market. It is an area that continues to change, and I do not think we have seen the final models yet. This is something we do expect will continue to change as we move forward.

Speaker #2: But it is an area that continues to change and I don't see we have seen I don't think we've seen sort of the final models yet.

Speaker #2: So this is something we do expect will continue to change as we move forward.

Speaker #5: Okay. And you mentioned the AI projects take a larger part of your business last quarter. I was wondering the sort of if you already have the AI business, is it can you sort of elaborate a bit on sort of if you have let's say the value-based fixed price contract compared to the time and the material contracts?

Yiwei Zhou: Okay. You mentioned the AI projects take a larger part of your business last quarter. I was wondering, if you already have the AI business, can you elaborate a bit on if you have, let's say, the value-based fixed price contract compared to the time and the material contract? What is the split here in the international life science?

Speaker #5: What is the split here in international life sciences?

Speaker #2: I don't think we have a—we can share in that way if you're talking about the number of projects specifically or the revenue.

Claus Rydkjær: I don't think we have a number we can share on that, Yiwei, if you're talking about the number of projects specifically or the revenue.

Carsten Ringius: I don't think we have a number we can share on that, Yiwei, if you're talking about the number of projects specifically or the revenue.

Speaker #5: Yeah. The revenue split. More, if you can indicate a bit.

Yiwei Zhou: Yeah, the revenue split more, if you can indicate a bit.

Speaker #3: I think it's a difficult number to be very clear on, because essentially the way that we are working with AI is that it sort of falls into three buckets.

Claus Rydkjær: I think it's a difficult number to be very clear on, because essentially, the way that we are working with AI is it falls into three buckets. One is that we have either fully AI-based services as one category, or where AI is an integrated part of our, what I would call, more traditional life science services. So you could argue with Lumina and with Alera, we have sort of pure AI-based services. But when we go out and deliver other types of services, for example, in the clinical area or in the GxP compliance area or validation area and so on, there we also leverage AI as an integrated part of the overall delivery, but more as a supporting tool in that delivery. So, one way that we work with it is really in context of our offerings themselves.

Speaker #3: One is that we have either fully, kind of AI-based services as one category, or where AI is an integrated part of what I would call our more traditional life science services.

Speaker #3: So you could argue with Lumina and with Alera, we have sort of pure AI-based services. But when we go out and deliver other types of services, for example in the clinical area, the GxP compliance area, or the validation area and so on, there we also leverage AI as an integrated part of the overall delivery.

Speaker #3: But more as a sort of supporting tool in that delivery. So, one way that we work with it is really in the context of our offerings themselves.

Speaker #3: The other area where we are sort of accelerating our adoption of AI is in terms of how we deliver. For example, when we bid for projects in Denmark today, we use AI to sort of decipher the tender material, to help shape the tender response that we’re doing.

Claus Rydkjær: The other area where we are accelerating our adoption of AI is in terms of how we deliver. For example, today when we bid for projects in Denmark, we use AI to decipher the tender material to help shape the tender response that we are doing. When we win an engagement, we also use AI to accelerate software development, for example. So really to streamline our delivery model and our delivery processes. The third way we use AI is really internally to streamline our own internal business processes.

Speaker #3: And sort of when we win an engagement, we also use AI to accelerate software development, for example—so really, to streamline our delivery model and our delivery processes.

Speaker #3: And then, of course, the third way we use AI is really internally, to streamline our own internal business processes.

Speaker #5: Okay, thanks. And then, if you can also talk about how you deal with the increased token cost? Can you pass it on to your customer, or do you just keep it within your own budget?

Yiwei Zhou: Okay, thanks. If you can also talk about how do you deal with the increased token cost. Can you pass on to your customer or you just keep it in with your own budget?

Speaker #2: Well, if you look at some of the customer projects that we are delivering, the token spend is absorbed by the customer, and it's not something that we are funding.

Carsten Ringius: Well, if you look at some of the customer projects that we are delivering, the token spend is absorbed by the customer, and it is not something that we are funding. So from that perspective, it is a cost that the customer will have to cover and steer as part of their use of the solution. If you look at our internal use of AI on the development side, but also from an enabling function point of view, it is something that we are simply tracking and also, of course, having a lot of focus and awareness on what kind of models are being used as the use of tokens are very different depending on what specific models you are using. So again, having trained staff internally to utilize AI in the most efficient way is a key enabler to keep down the token spend.

Speaker #2: So from that perspective, it's a cost that the customer will have to cover and steer as part of their use of the solution. If you look at our internal use of AI on the development side, but also from an enabling function point of view, it's something that we are simply tracking and also, of course, having a lot of focus and awareness on what kind of models are being used, as the use of tokens is very different depending on what specific models you are using.

Speaker #2: So again, having trained staff internally to utilize AI in the most efficient way is a key enabler to keep down the tokens spent.

Yiwei Zhou: Mm. Okay. Fair enough. Last question. Some of your international peers talked about customers, not especially in the life science, but general market enterprises allocate the IT budget from conventional IT consulting to an AI projects, so agentic AI buildup. What are you seeing with your life science customers? Is it also the pattern you are experiencing?

Speaker #5: Okay, fair enough. And last question: some of your international peers talked about the customers—I mean, not specifically in life sciences, but in the general market.

Speaker #5: Enterprises are reallocating their IT budgets from traditional IT consulting to AI projects and agentic AI build-up. So, what are you seeing with your life science customers?

Speaker #5: Is it also the pattern you're experiencing?

Speaker #3: And we're seeing a sort of an increased interest in leveraging AI across their business. And we do also sort of see and kind of increased interest in leveraging.

Claus Rydkjær: We are seeing an increased interest in leveraging AI across their business, we do also see an increased interest in leveraging AI agents where they would potentially have had something custom-built in the past. This means that we are also seeing signs of demand changing from T&M into AI agents. One of the key ways that we are actually addressing that is as part of our transformation, one of the things that we are already doing is doing a comprehensive review of our entire offerings portfolio in the life science business in order to make sure that we have a service portfolio that is set up to meet the demands of our customers, both today and tomorrow.

Speaker #3: AI agents, where they would potentially have had something custom built in the past. This means that we are also seeing signs of demand shifting from TNM into AI agents.

Speaker #3: And one of the key ways that we are actually addressing that is, as part of our transformation, one of the things that we're already doing is conducting a comprehensive review of our entire offerings portfolio in the life sciences business in order to make sure that we have a service portfolio that is set up to meet the demands of our customers both today and tomorrow.

Speaker #3: And as part of that sort of AI will play and sort of an increasingly larger role in our services portfolio both with independent AI products but also where AI is integrated in basically all of our more traditional life science services.

Claus Rydkjær: As part of that, AI will play an increasingly larger role in our services portfolio, both with independent AI products, but also where AI is integrated in basically all of our more traditional life science services. In order to bring that to life, we are also making sure that we organize accordingly and build up capacity within AI, both locally but also in our delivery center in the Philippines.

Speaker #3: And in order to bring that to life, we're also making sure that we organize accordingly and build up capacity within AI both locally, but also in our delivery center in the Philippines.

Speaker #5: Clear. Thank you so much. I'll jump back to the queue. Thank you, Yiwei. Next up is Mads Quisgaard from DNB Carnegie. Your line is open.

Yiwei Zhou: Clear. Thank you so much. I will jump back to the queue.

Operator 2: Thank you, Yiwei. Next up is Mads Quistgaard from DNB Carnegie. Your line is open.

Operator: Thank you, Yiwei. Next up is Mads Quistgaard from DNB Carnegie. Your line is open.

Mads Quistgaard: I have two here. Thank you for taking my questions. I have two. First, coming back to your comments around the pipeline in Denmark, especially the public pipeline. Are we back at normal levels or are you seeing sort of a catch-up effect following the general election, which took place a few months ago?

Speaker #4: I have two here.

Speaker #5: Yeah, thank you for taking my questions. I have two. First, coming back to your comments around the pipeline in Denmark, especially the public pipeline.

Speaker #5: So, are we back at normal levels, or are you seeing sort of a catch-up effect following the general election, which took place a few months ago?

Speaker #3: Yeah. There is no doubt that sort of during the just before the election, there was sort of everything came to a bit of a hold.

Claus Rydkjær: There is no doubt that just before the election, everything came to a bit of a halt. Then with a slightly extensive period where they were trying to form a government, activity remained relatively low. However, after a government have come into place, we already saw increased activity in June with several tenders being released at that point in time. What we are seeing here on the other side of the holiday is that high activity level on the tender side is increasing. I would argue that the current level of tender activity that we are seeing is probably slightly higher than what I would call normal. So we expect this relatively high level of activity to continue at least throughout Q3, but maybe also into the beginning of Q4, before we expect it to stabilize at what I would call a normal level.

Speaker #3: And then, with a slightly extended period where they were trying to form a government, activity remained relatively low. However, after a government had come into place, we already saw increased activity in June with several tenders being released at that point in time.

Speaker #3: And what we're seeing here on the other side of the holiday is that high activity level on the tender side is increasing. I would argue that, sort of, the...

Speaker #3: The current level of tender activity that we're seeing is probably slightly higher than what I would call normal. So, we expect this relatively high level of activity to continue at least throughout Q3, but maybe also into the beginning of Q4, before we expect it to stabilize at what I would call a normal level.

Speaker #5: Perfect. That clause makes sense for you. Then, a question on the industry: not that we're seeing a consolidation right now, but at least some of the larger software companies—some of whom you are also partnering with—are doing acquisitions.

Mads Quistgaard: Perfect. Makes sense. Thank you for that, Claus. Then a question on the industry. Not that we are seeing a consolidation right now, but at least some of the larger software companies, some of you also partnering with, are doing acquisitions. Just trying to understand, when they do acquisitions, is that a threat or a business opportunity for you guys?

Speaker #5: So, just trying to understand, when they do an acquisition, is that a threat or a sort of business opportunity for you guys?

Speaker #3: Generally, sort of I think sort of as we see consolidation in the market, we the way that we look at it is that it's sort of underpins our earlier assumption.

Claus Rydkjær: Generally, I think as we see consolidation in the market, the way that we look at it is that it underpins our early assumption taking as we moved into the strategy phase, that our opportunity really lies in becoming very sharp and focused around what we do. At the heart of our strategy, we are zooming in on fewer areas where we will be a niche provider. From a tech point of view, the ambition is still to be agnostic. As we go to market, we believe our opportunity lies in really being a niche player within certain fields of play where we want to simply be better and deeper than our immediate competitors. The technology with which we then build our solutions, there, we will continue to be technology agnostic.

Speaker #3: As we moved into the strategy phase, our opportunity really lies in becoming very, very sharp and focused around what we do.

Speaker #3: And sort of at the heart of our at the heart of our strategy sort of we are zooming in on sort of fewer areas where we will be a sort of a niche provider and from a tech point of view, the ambition is still to be sort of agnostic.

Speaker #3: But as we go to market, sort of we will sort of we believe our opportunity lies in really being sort of a niche player within certain fields of play where we want to simply be better and deeper than our immediate competitors.

Speaker #3: The technology with which we then build our solutions there—we will continue to be technology agnostic. And I think also, in a market where things are moving faster than ever, that actually provides us with a bit of extra flexibility and opportunity to be able to have this agnostic approach, also when thinking of all of the sovereignty discussions that surface these days.

Claus Rydkjær: I think also in a market where things are moving faster than ever, that actually provides us with a bit of extra flexibility and opportunity to be able to have this agnostic approach. Also when thinking of all of the sovereignty discussions that surface in these days.

Speaker #5: Perfect. Thank you so much.

Mads Quistgaard: Perfect. Thank you so much.

Speaker #4: Thank you, Mads. As a reminder, press five stars to ask a question. There will be a brief pause while new questions are being registered.

Operator 2: Thank you, Mads. As a reminder, press star five to ask a question. There will be a brief pause while new questions are being registered. We have a follow-up from the line of Yiwei. Your line is open.

Operator: Thank you, Mads. As a reminder, press star five to ask a question. There will be a brief pause while new questions are being registered. We have a follow-up from the line of Yiwei. Your line is open.

Speaker #4: We have a follow-up from Yiwei's line. Your line is open.

Speaker #5: All right, it's away from STP again. Just a quick question here on the Novo Nordisk business. Can you give an update on this, and what is your expectation for the next 6 to 12 months?

Yiwei Zhou: Hi, it is Yiwei from SEB again. Just a quick question here on the Novo Nordisk business. Can you give an update on this? What is your expectation for the next six to 12 months?

Speaker #2: Well, we had some expectations coming into '26 that were, you can say, on an overall level across regions, looking at a contraction in our Novo revenue because of the strategic initiatives and the focus on cost and fewer projects being initiated at Novo.

Carsten Ringius: Well, we had some expectations coming into 2026 that was, you can say, on an overall level across regions, looking at a contraction on our Novo revenue because of the strategic initiatives and the focus on cost and fewer projects being initiated at Novo. We can say that we are so far more or less in line with this overall assumption that we had for the development in the Novo business going forward. I think what will be interesting to see is how Novo's new initiatives will lead into them potentially expanding capacities on their production facilities, for example, on tablets, to see what kind of additional business that will bring. But you can say, if you look at what we expected in the beginning of the year and where we are now, we are more or less in line with how we saw our engagement with Novo develop.

Speaker #2: And we can say that we are, so far, more or less in line with this overall assumption that we had for the development in the Novo business going forward.

Speaker #2: I think what will be interesting to see is how Novo's new sort of initiatives will lead to them potentially expanding capacity at their production facilities, for example, for tablets, to see what kind of additional business that will bring.

Speaker #2: But you can say, if you look at what we expected at the beginning of the year and where we are now, we are more or less in line with how we saw our engagement with Novo sort of develop.

Yiwei Zhou: What kind of contraction, can you be more specific?

Speaker #5: And what kind of contraction? Can you be more specific?

Yiwei Zhou: What kind of contraction, can you be more specific?

Speaker #2: Well, as you know, we had a revenue proportion of around 13% in '25 contributed to Novo. And when we looked into '26, we expected, based on the announcements from Novo, that that proportion would decrease slightly.

Carsten Ringius: Well, as you know, we had a revenue proportion of around 13% in 2025 contributed to Novo. When we looked into 2026, we expected based on the announcements from Novo, that that proportion would decrease slightly, and this is also what we have seen.

Speaker #2: And this is also what we have seen.

Speaker #5: Okay, thank you. That was clear.

Yiwei Zhou: Okay. Thank you. It was clear.

Speaker #4: Thank you. As no one else has lined up for questions, I'll now hand it back to the speakers.

Operator 2: Thank you. As no one else has signed up for questions, I will now hand it back to the speakers.

Operator: Thank you. As no one else has signed up for questions, I will now hand it back to the speakers.

Speaker #3: Thank you for your questions and for listening in. Please do not hesitate to reach out to either me or Carsten if you have further questions.

Claus Rydkjær: Thank you for your questions and for listening in. Please do not hesitate to reach out to either me or Carsten if you have further questions. With that, I just want to say have a great day and a wonderful weekend.

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Q2 2026 NNIT AS Earnings Call

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