NNIT

NNIT - 2024 NNIT A/SOestmarken3ADK-2860SoeborgTelefonwww.nnit.com21093106549300KM8QVF7WR406642024-01-012024-12-312023-01-012023-12-311974Regnskabsklasse Dwww.nnit.com/about-us/corporate-responsibility/sustainability-reports/www.nnit.com/about-us/corporate-responsibility/sustainability-reports/www.nnit.com/about-us/leadership/corporate-governance/Søborg2025-02-18Årsrapport21093106NNIT A/SØstmarken 3A2860 SøborgxWizard version 1.1.1325.5, by EasyX Aps. www.easyx.euRevisionspåtegningGrundlag for 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In July 2024, NNIT moved into its new international headquarters in downtown Copenhagen Annual Report 2024 NNIT A/S, Weidekampsgade 14, DK-2300 Copenhagen S • CVR no. 21 09 31 06 NNITꢀꢁAnnual Report 2024 2 Table of Contents Management Review Financial Statements The Bigger Picture NNIT at a Glance Words from Management Highlights Key Figures Q4 2024 Outlook 2025 Strategy Regions Consolidated Financial Statements Income Statement Statement of Comprehensive Income Statement of Cash Flows Balance Sheet 4 5 8 113 113 115 117 118 120 9 10 12 14 15 20 Statement of Changes in Equity Notes Parent Company Financial Statements Income Statement Balance Sheet Statement of Changes in Equity Notes Corporate Governance 160 161 162 164 Sustainability Statements General disclosures Environment Social Governance 35 53 71 97 Statements Management's Statement Independent auditor's reports Independent auditor's limited assurance report on Sustainability Statements Related Reports 176 177 Remuneration Report 2024 Corporate Governance Report 2024 182 NNITꢀꢁAnnual Report 2024 3 The Bigger Picture NNIT at a Glance Words from Management Highlights Key Figures Q4 2024 Outlook 2025 Strategy Regions Corporate Governance The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 4 NNIT at a Glance NNIT is a leading provider of IT and business solutions in Denmark, Europe, the US and Asia. Internationally, our focus is exclusively on the Life Sciences industry, helping customers digitalize key parts of their value chain. Specifically in Denmark, we also focus on the public and private sectors, where we are continuously developing our position, primarily within the public sector. The common ground is high complexity industries where regulatory demands are high and quality of life is at play. Life Sciences Public and Private The NNIT Group consists of parent company NNIT A/S and subsidiaries SCALES, Excellis Health Solutions and SL Controls. Together, these companies employ more than 1,700 people. Building a strong, international position; helping Life Sciences customers digitalize key parts of their value chain. Developing our position in the Danish market; first and foremost within the public sector. Region: Europe, US and Asia Region: Denmark The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 5 WORDS FROM THE CHAIRMAN AND CEO Importantly, 2024 finalized the separation from Aeven, which was the first strategic game changer in our New Beginning strategy. 9 and read more about regional perfor- mance on pages 10-11 and 16-19). Focusing Winning in Life Sciences and the Danish Public Sector 2024 was also a year where we continued to focus on organic growth as reflected by our initial full-year guidance of organic revenue growth around 10% and group operating profit margin excl. special item of between 8-9% (adjusted to 6-7% and 6-7%, respec- tively, on October 22). In 2024, we further focused on the execu- tion of our strategic game changers, Win in Life Sciences globally, and Win in the Danish Public sector. on Organic Growth These are ongoing must-win battles, but, in 2024, we took significant strides towards the goal with a number of milestone projects: Despite facing challenges in various regions and aspects of our business, particu- larly in the third quarter, we ultimately achieved growth that surpassed the market overall. At the same time, a strong fourth quarter and pipeline hold promise of good momentum carried into 2025. Significant wins in the US and Denmark Business with existing and new customers was secured in both Life Sciences and the Danish Public Sector throughout the year, underlined by the historically great win with a large, global pharma company in the US (worth approx. DKK 130m), the new contract with ATP in Denmark (worth approx. DKK 240m) and the new contract with the Danish Agency for Labour Market and Recruitment (worth approx. DKK 100m). 2024 was our first full year as the new NNIT – a highly specialized IT consultancy focusing on Life Sciences internationally and the public and private sectors in Denmark. And in October of 2024, as planned, we completed the final aspects of the technical network separation from our former infrastructure operations – having already effectuated the legal and operational split in late April 2023. In 2024, we grew our revenue by 7.1% to DKK 1,851 million and achieved a profit margin before special items of 6.3%, which is 0.4% down compared to 2023 as a result of lower utilisation. (See key figures on page The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 6 Additionally. our pipeline for 2025 looks strong, particularly within the public sector where our well above-market growth rate is expected to extend into 2025. Customer Satisfaction at an All-time High Despite many internal separation-related projects ongoing into the fall, we were able to focus on the present and the future, and, as always, on our customers and quality in deliveries. efforts to Life Sciences as well as the NNIT people and the quality of their work, driving positive digital innovation and change. The assessment particularly highlighted our strengths within Drug Safety, Clinical, Quality, Regulatory Affairs, Manufacturing and Supply Chain. cated to new and modern office buildings in China and in four cities across Europe, not least our new, super central headquarters in Copenhagen, Denmark. Reinforced Global AI Focus With these relocations, we prioritized city locations with easy access to domestic and international public transportation, in more prestigious neighborhoods to suit our new profile and give employees more options before, during and after work. The new office spaces encourage and facilitate collaboration and teambuilding with dedi- cated work, meet and play areas. To ensure unity, best practice, and maximum utilization of expertise and resources across our four regional AI busi- ness units, we introduced a new global structure dedicated to AI in the beginning of the year. In addition, and in pursuit of increasing commercial savviness and focus where everyone acts as commercial leaders, we established a new commercial framework, pricing strategy and toolbox as well as a number of other initiatives in support of sales and commercial excellence across our organization. In 2024, we were also recertified as Veeva Premiere Services Partner – Development Cloud and were made an official Veeva AI Partner, which further solidified our exper- tise and important partnership within the Veeva systems. In Q2, we anchored our regional AI business units in a new global structure responsible for the overall AI strategy, partnerships, and models as well as building and aligning AI solutions and services offered and tailored to our markets. And, during 2024, our global AI organization across Denmark, the US, Europe, and Asia, successfully launched a number of new, packaged AI solutions to be used primarily within the Life Sciences industry. Becoming an Employer of Choice Another game changer towards becoming the best possible digitalization partner for our customers is Becoming an Employer of Choice. Again, this is an ongoing journey involving many initiatives, not least well-es- tablished HR processes. Throughout 2024, we saw a positive devel- opment in our overall attrition rate, which reduced from 13.6% in 2023 to 11.0% in 2024. In compound, these initiatives resulted in a full-year customer satisfaction score of 4.5, which is the highest score ever. Top Ratings in the Life Sciences Domain In 2024, for the first time, we were posi- tioned among the leaders in the Everest Group’s Life Sciences Digital Services Specialists PEAK Matrix® Assessment, which is a testament to our dedication and Sustainability and ESG based on CSRD As announced in 2023, 2024 was the year where we wrapped our intensive work with sustainability into reporting in accordance with EU’s Corporate Sustainability Reporting Directive (CSRD). Initially, that meant In 2024, we invested more heavily in our employees, present and future: In an effort to retain and attract more people, we relo- The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 7 Pär Fors, President and CEO of NNIT, comments: 2024 was an eventful year where we reached several strategic milestones in becoming a pure-play IT consultancy company. Despite macroeconomic uncertainty and a moderate market slowdown in Life Sciences towards the second half of the year, we continued to grow our business organically through existing and new customers. Furthermore, we continued to strengthen our position in the Public sector in Denmark, where we won important strategic contracts. As a result, we delivered according to our latest financial outlook. Carsten Dilling Pär Fors Chairman of the Board of Directors Chief Executive Officer completing a double materiality assessment (DMA), which was completed in Q2. The DMA led to our current sustainability reporting framework as reflected in this report. Easy and Efficient Inside and Out summer and the last tweaks implemented in the fall. for the business they have done with us during the year. We look forward to adding even more value to our customers’ business and to achieving our long-term aspirations through operational and commercial excel- lence. Last, but by no means least, was the imple- mentation of a new ERP system - masterly led by our Group Company Scales - which meant replacing NNIT’s legacy system and integrating 11 stand-alone systems into one, global system. The objective being to create greater financial transparency and simpler work processes and workflows. Other 2024 major implementations included a new HR and Access Management system. All new system implementations were carried out with a view to execute on the strategic game changer Easy and Effi- cient Inside and Out. An important sustainability milestone this year was the submission of our near-term plan to the Science Based Targets initiative (SBTi), and we now have SBTi-validated and approved near-term targets as a further testament to our commitment to climate action. Carsten Dilling Chairman of the Board of Directors Pär Fors Chief Executive Officer We went live with the new system in June, carrying a hyper care period over the We wish to thank all our employees for a job well done in 2024, and our customers The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 8 Highlights 2024 saw NNIT move into execution mode, moving on from two years of major transformation, as a highly focused IT consultancy specializing in Life Sciences internationally and in the public and private sectors in Denmark. Strategy Execution Business Development Domain leadership Significant wins Divestment Employer of Choice Artificial Life Sciences Large Infrastructure Operations Intelligence Contracts Relocated to modern and Reinforced AI focus and invest- ments by anchoring regional business units in new global structure in the beginning of the year. The global structure is responsible for NNIT’s overall AI strategy, partnerships, and models as well as building and aligning AI solutions and services offered and tailored to our markets. Private & Public in Region Denmark, and Life Sciences in USA, Europe, and Asia. Positioned among the leaders in the Everest Group’s Life Sciences Digital Services Specialists PEAK Matrix® Assessment 2024; recer- tified as Veeva Premiere Services Partner – Development Cloud, and named Veeva AI Partner following the introduction of new AI technology to our services across Veeva Vault R&D applica- tions. Large, global pharma Life Sciences customer in the US, worth approx. DKK 130m In October, the final network separation from Aeven was completed, rendering both NNIT and Aeven two completely sepa- rate and independently oper- ating companies. The shared network was the last remaining ties to Aeven, following the offical legal and business split, effectu- ated in late April 2023. centrally located offices in five cities across two regions: Tianjin (ASIA) and Basel, Prague, Copen- hagen (new HQ) and Poland (Europe) during the first six months. Began merging Group companies Excellis Health Solu- tions and SL Controls with our Manufacturing & Supply Chain operations.in the US and Europe by year-end. Danish Pension and Public Bene- fits giant ATP, worth approx. DKK 240m. The Danish Agency for Labor Market and Recruitment, worth approx. DKK 100m. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 9 Key Figures Financial key figures for 2021-2023 exclude discontinued operations, while 2020 include discontinued operations. DKK million 2024 2023 2022 2021 2020 2024 2023 2022 2021 2020 Financial performance Total revenue Earnings per share (DKK) 0.03 0.03 0.24 0.24 (10.39) (10.39) (7.05) (7.05) 1.90 1.89 1,851 1,728 1,500 1,369 2,830 Diluted earnings per share (DKK) EBITDA before special items Depreciation, amortization and impairment Operating profit (EBIT) before special items Special items, costs1 161 44 117 69 144 28 61 68 114 129 401 234 167 90 Employees Average number of full-time employees, total Average number of full-time employees, continuing 1,704 1,704 1,974 1,773 3,169 1,809 3,162 3,083 116 69 (7) (15) 278 (285) (9) 208 Financial ratios Operating profit (EBIT) 48 (33) 1 47 (223) (12) 77 Revenue growth Gross profit margin3 7.1% 25.9% 8.7% 15.2% 25.8% 8.3% 6.7% 9.6% 27.2% 4.1% N/A 9.3% (7.5)% 13.7% 14.2% 5.9% Net financials (30) 6 (7) Net profit/loss for the year (258) (175) 47 EBITDA before special items margin Operating profit margin before special items Operating profit margin Effective tax rate 8.3% Earn-out restatement impact2 - - (40) (42) (29) 6.3% 2.6% (0.5)% (19.0)% 12.2% (28.6)% 29.6% (19.2)% (1.1)% (16.3)% 12.2% (17.3)% 38.6% (13.6)% Net profit/loss for the year before restatement 1 6 (218) (133) 76 2.7% 2.7% 94.3% 0.1% 64.7% 0.7% 32.9% 4.4% Investment in tangible assets (145) (4) (8) - (95) Return on equity Investment in intangible assets incl. acquisition of subsidiary Solvency ratio 51.0% 3.5% 41.8% 2.9% 41.7% 3.6% (51) 1,707 870 - (18) 1,977 827 - (78) 2,748 814 (40) 2,574 993 - (159) 2,468 1,030 (74) Return on invested capital (ROIC) Total assets Equity 1ꢀSpecial items comprise costs that cannot be attributed directly to NNIT's ordinary activities and are non-recurring in nature. 2ꢀThe Danish Business Authority has required NNIT to change the applied accounting treatment of the earn-out payment, cf. Accounting policy. Dividends proposed/paid Free cash flow - 3ꢀThe principles for allocation of cost by function was changed in 2023, and comparative figures for 2022 have been adjusted accordingly. (40) 147 (109) 77 (292) 805 (102) 473 143 Interest-bearing debt, net 377 The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 10 Q4 2024 Q4 business highlights corresponding to a margin of 9.1% (10.1% in Q4 2023). The flat development in profit compared with last year is primarily due to the slower-than-anticipated recovery in data migration and utilization still being too low. significantly lower compared with last year. This is due to the slow recovery in data migra- tion and still having an amount of billable employee that were not fully utilized, and a high gross profit last year driven by adjust- ments related to the new reporting structure. ment in profitability despite lower revenue generation is driven by having rightsized the capacity to current demand in the data migration business, limited to use of sub-contractors and increasing utilization. In the last quarter of the year, NNIT managed to change the trajectory from the previous quarter increasing revenue to DKK 469.6 million (DKK 438.4 million in Q4 2023), equal to revenue growth of 7.1% and organic growth of 7.1%. Even though, the moderate market slowdown continued into the Region Europe Region Asia Revenue increased to DKK 124.2 million (DKK 108.5 million in Q4 2023), equal to 14.4% total revenue growth despite the continuation of the moderate market slowdown and the slower-than-anticipated recovery in the data migration business. Organic growth was 13.9%. The growth can be attributed to solid demand for digital transformation within the areas of manu- facturing and Data & Digital. Region US During the fourth quarter, the revenue fourth quarter, NNIT continued to expand contracts with existing long-term customers whilst also bringing in new customers across Life Sciences, Private and the Public sector. In the fourth quarter, the moderate market slowdown and data migration continued to negatively impact the overall performance of Region US. Revenue decreased to DKK 79.7 million (DKK 91.1 million in Q4 2023), equal to a negative revenue growth of 12.9% and organic growth of -12.2%. However, Region US continued to see strong demand in the other areas of the business with order entry increasing throughout the quarter. increased by 36.4% to DKK 44.3 million (DKK 32.5 million in Q4 2023). Organic growth was 36.9%. However, revenue was significantly impacted by one-offs. Underlying organic growth was around 9% reflecting the region’s ability to grow in a challenging macroenviron- ment with fierce price competition. NNIT continued to execute on its commer- cial levers including completion of large internal projects and right-sizing capacity to fit the current demand in Life Sciences. Additionally, the initiatives taken in the first half of the year such as the turna- round plan in Region Asia supported the sequential improvement in profitability of DKK 25 million between Q3 to Q4. Group operating profit excl. special items was DKK 43.3 million (DKK 44.7 million in Q4 2023), As a result of the turnaround plan carried out during the first half of the year, the profitability improved. The region’s regional operating profit increased to DKK 1.6 million (DKK -1.0 million in Q4 2023), corresponding to a regional operating profit margin of 3.5% (-3.0% in Q4 2023). The regional operating profit was DKK 19.4 million (DKK 27.9 million in Q4 2023), corre- sponding to a margin of 15.6% (25.7% in Q4 2023). Despite reducing manning capacity, the development in regional operating profit was Region US increased its regional operating profit to DKK 26.7 million (DKK 19.7 million in Q4 2023), corresponding to a margin of 33.7% (21.6% in Q4 2023). The improve- The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 11 Region Denmark Region Europe Region Asia Region USA Total Q4 24 Region Denmark Region DK increased its revenue to DKK 221.4 million (DKK 206.3 million in Q4 2023), equal to a revenue growth of 7.4%. Organic growth was also 7.4%. The improvement in underlying performance is driven across all business areas as the region continued to expand its footprint in the Public space, and bringing in new customers in the Private segment. Results for Q4, DKKm Q4 24 Q4 23 Q4 24 Q4 23 Q4 24 Q4 23 Q4 24 Q4 23 Q4 23 Revenue 221.4 (183.8) 37.6 206.3 (174.0) 32.3 124.2 (91.6) 32.6 108.5 (65.3) 43.2 44.3 (40.1) 4.2 32.5 (30.5) 2.0 79.7 (36.7) 43.0 91.1 60.7) 30.4 469.6 (352.2) 117.4 438.4 (330.5) 107.9 Production cost Gross profit Gross margin 17.0% 15.7% 26.2% 39.8% 9.5% 6.2% 54.0% 33.4% 25.0% 24.6% Regional operating profit 28.3 30.8 19.4 27.9 1.6 (1.0) 26.7 19.7 76.0 77.4 Regional operating profit margin 12.8% 15.0% 15.6% 25.7% 3.5% -3.0% 33.7% 21.6% 16.2% 17.7% Group operating profit excl. special items 13.0 11.8 10.1 21.9 (1.3) (1.4) 21.5 12.4 43.3 44.7 Group operating profit margin excl. special items 5.9% 5.7% 8.1% 20.2% (2.9%) (4.2%) 27.0% 13.6% 9.1% 10.1% The regional operating profit was DKK 28.3 million (DKK 30.8 million in Q4 2023) with a corresponding margin of 12.8% (15.0% in Q4 2023). Despite reallocating billable employees from critical internal assignments to client-facing projects and tight cost control, regional operating profit slightly declined compared with last year due to technical one-offs amounting to DKK ~8 million. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 12 Outlook 2025 In 2025, NNIT will continue to deliver on its strategic ambitions with a focus on profitable growth through operational and commercial excellence. Although, the macroeconomic environment and geopolitical uncertainty is expected to remain at the same level as in 2024, NNIT continues to see solid opportunities to grow its business at a higher rate than market outlook across the Life Sciences and Public sector. Growth will mainly be driven by expansion of existing engage- ments, and partly from the onboarding of new customers. For 2025, organic growth is targeted to be between 7 to 10%. zation of utilization and billability, recovery Restructuring costs will also be a part of special items in 2025, however, the amount is expected to be significantly lower than 2024. ally attractive markets and ample opportu- nities to profitably grow its business. of the data migration business, full-year impact of the initiatives carried out during 2024 and continuously exploring further cost optimization opportunities. The group operating profit margin excl. special items is expected to increase to between 7 to 9% compared with 6.3% in 2024. However, NNIT has adjusted its financial mid-term aspirations due to lower-than-in- itially-expected financial performance in 2024, increasing macroeconomic and geopolitical uncertainty, and a downgrade of external growth expectations to the Life Sciences segment by Everest Group. Furthermore, the structure and compo- sition of the mid-term aspirations have changed. The period has been prolonged by one year with the final year being 2027 (previously 2026). Additionally, the organic growth is an annual growth (previously CAGR) and group operating profit margin During 2025, NNIT expects organic growth to gradually improve alongside profita- bility. This results in lower organic growth including group operating profit margin excl. special items. than the guided range in the first quarter. Special items amounted to DKK 69 million in 2024 mainly driven by earn-out payments, integration costs of group companies, restructuring costs and impairment of previous leasing facilities. In 2025, special items are expected to consist of earn-out payments of around DKK 20m with 2025 being the last year of such payments. NNIT will continue to pursue profitability improvements across regions and corpo- rate functions. The uplift in group operating profit margin excl. special items will be driven by several factors such as optimi- Mid-term financial aspirations adjusted NNIT remains committed to its strategic direction of becoming a pure-play IT consul- tancy company with strong positions in glob- The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 13 excl. special items is an open-ended range in the final year of the period (previously a yearly average group operating profit margin excl. special items). Some of the key levers to deliver on the adjusted financial aspirations are solid order entry development, commercial and operational efficiency gains, reduction and streamlining of costs, synergies from inte- gration of group companies, and increasing solution repeatability. During the strategic period of 2025 to 2027, NNIT will continue to pursue M&A, however, any financial impact from M&A activity has not been included in the current financial aspirations. Forward-looking Statements This Annual Report contains forward-looking statements. Words such as ‘believe’, ‘expect’, ‘may’, ‘will’, ‘plan’, ‘strategy’, The new financial aspirations toward 2027 are an annual organic growth between 7 to 10%, and a group operating profit margin excl. special items of above 10% in 2027. ‘prospect’, ‘foresee’, ‘estimate’, ‘project’, ‘anticipate’, ‘can’, ‘intend’, ‘outlook’, ‘guidance’, ‘target’ and other words and terms of similar meaning in connection with any discussion of future oper- ating or financial performance identify forward-looking state- ments. Statements regarding the future are subject to risks and uncertainties that may result in considerable deviations from the outlook set forth. Furthermore, some of these expectations are based on assumptions regarding future events which may prove incorrect. Please also refer to the overview of risk factors in the ‘Risk Management’ section on pages 24-26. Outlook and Performance 2024 Outlook Updated outlook 2025 Realized Outlook Organic revenue growth ~10% 8-9% 6-7% 6-7% 6.0% 6.3% 7-10% 7-9% Operating margin before special items The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 14 Strategy NNIT Strategy Long term value creation for key stakeholders: Shareholders, customers, employees and society NNIT remains committed to the successful execution of the "New Stakeholder value Beginning" strategy, launched in 2023 and running through the end of 2026. The divestment of the infrastructure business has enabled NNIT to transform into a full-fledged consultancy with a strong industry focus. This combination of specialized consultants and industry expertise ensures a compelling value proposition for NNIT's customers. High customer satisfaction based on high-quality repeatable solutions Customers Solutions Focused GtM approach with targeted segments, domains and partners Segments Domains People Partners Solid foundation in highly motivated employees with core NNIT values at heart Culture Organisation Our deep industry understanding and close customer proximity underpin our Go-to-Market approach, enabling us to address identified customer challenges with pre-built solutions. This ensures customers achieve a faster return on investment. through a regional approach, leveraging specific market strongholds in highly regulated industries. Across our focus industries, we observe several trends shaping customers' future buying patterns, all with an indus- try-specific perspective. These emerging trends revolve around AI, data enablement, and accelerated digital transfor- mation. NNIT is making significant investments to upgrade our consultants' skills in the latest technologies, enabling them to advise our customers effectively. Furthermore, we are developing repeatable solutions built on market-leading technologies in collaboration with our strategic partners. NNIT focuses on two core industry segments: Life Sciences globally and the public sector in Denmark. In these areas, NNIT leverages deep domain expertise, market-leading technologies, and strong partnerships, driven by top talent. Additionally, the private sector in Denmark remains a key market for Region Denmark. The focused strategy targets key markets that require a combination of NNIT’s advanced IT solutions expertise and domain knowledge. This is implemented internationally The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 15 CEO Organizational structure NNIT is organized into four regions, each responsible for its own P/L performance. This structure fosters regional autonomy while nurturing close customer proximity. Region Region Region Region Denmark US Europe Asia Region Denmark focuses on building industry expertise in the public sector while maintaining and expanding its foot- print with private customers. This is achieved through solu- tions such as Custom Application Development, Microsoft solutions—including SCALES Group—and SAP solutions. In the public sector, Region Denmark primarily targets central • Segment focus: Public and • Segment focus: Life Sciences • Segment focus: Life Sciences • Segment focus: Life Sciences Private Sector • 808 employees • 2 Locations • 178 employees • 2 Locations • 436 employees • 12 Locations • 282 employees • 3 Locations government opportunities, specifically governmental agencies Global support functions and organizations with a private/public foundation. Covers multiple industries, especially Public sector Life Sciences focus The three Life Sciences regions share a largely unified solu- tions catalogue aligned with NNIT’s core domains in Life Sciences, including R&D, Manufacturing & Supply Chain, Quality & Compliance, and Data & Digital. NNIT is globally recognized by customers and external advisors for its deep industry expertise combined with strong technical capabilities. These include Global Solutions Development, which focuses on innovating and launching repeatable solutions with global appeal that can be deployed across multiple regions. Investing in such globally scalable solutions results in higher profitability and improved customer satisfaction. Additionally, global functions like Commercial Excellence ensure that larger, globally spanning customers are managed in a coor- dinated and consistent manner. Finally, NNIT’s offshore delivery capabilities are strengthened by delivery units primarily based in the Philippines, the Czech Republic, and Poland, enabling high-quality services at competitive prices. To support the regional setup, several global supporting functions are in place to leverage synergies across regions. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 16 Customer Satisfaction Score LIFE SCIENCES SOLUTIONS 4.5 (out of 5) Europe In 2024, Region Europe’s organic growth was 9.5% resulting in full-year revenue of DKK 512 million (2023: DKK 465 million). ness, Region Europe rightsized its capacity to fit the current demand. In 2024, Region Europe continued to capture market share within the Life Science area. The business grew through expansion of long-term existing engagements and acquiring new customers, demonstrating adaptability despite challenges in the data migration area and persistent macroeconomic uncertainty. The regional operating profit ended at DKK 67 million (2023: DKK 78 million) corresponding to a margin of 13.0% (2023: 16.8%). Even though, there has been a tight focus on cost reduction, with the region having reduced its overhead compared to last year, the slight decline in margin was due to not fully utilizing capacity and a slower recovery in the data migration busi- ness. During the year, the region saw solid demand for digital transformation in two domain areas: manufacturing and data and digital. The growth was rooted in contin- uous strong strong customer partnerships built over time, which is also reflected in the customer satisfaction score of 4.5 out of 5.0. The Research & Development area faced headwinds from a moderate market slowdown and evolving customer behavior, where contracts were committed to within shorter timeframe and more narrow scopes following previous years’ waves of trans- formation of global platforms. As some projects were temporarily postponed or put on hold, including the slower than antici- pated recovery in the data migration busi- Revenue Group Operating Profit DKK DKK 512 16 million million 2024 2023 512 2024 16 32 465 2023 The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 17 Customer Satisfaction Score LIFE SCIENCES SOLUTIONS 4.8 (out of 5) US Growth was driven partly by acquiring several new customers and partly by expanding engagements, including signing the largest contract ever with a long-term existing customer. The region’s regional operating profit ended at DKK 73 million (2023: DKK 80 million), delivering a regional operating profit margin of 21.2% (2023: 20.7%). The decline in the regional operating profit can be directly attributed to the slower-than-anticipated recovery of the data migration business and moderate market slowdown observed in the latter half of the year. Region US adjusted its capacity to the current demand as part of an effort to protect profitability, while reducing the number of subcontrac- tors. In 2024, Region US continued to grow its business across the Life Sciences sector with the exemption of the data migration business. However, the improved performance across the business areas outside of the data migration business could not offset the significantly slower-than-antici- pated recovery in that area, including the moderate market slowdown. Revenue Group Operating Profit DKK DKK As a result, Region US generated lower full- year revenue of DKK 346 million (2023: 387 million) leading to an organic growth decline of 10.4%. 346 39 During the year, Region US has successfully fully integrated Migration Powerhouse and lastly, Excellis and SL Controls’ US operation. million million 2024 2023 346 2024 39 387 2023 42 The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 18 Customer Satisfaction Score LIFE SCIENCES SOLUTIONS 4.7 (out of 5) Asia Region Asia’s organic growth was 6.1%, resulting in full-year revenue of DKK 149 million (2023: DKK 144 million). Despite a challenging macroenvironment in China, characterized by increasing price pres- sure and reduced demand for external support, Region Asia experienced a slight decline in China. This was partly due to a strategic decision to withdraw from several projects to protect profitability. Aside from the business decline in the first quarter, performance improved for the remainder of the year, with increased customer Singapore managed to grow its business Region Asia successfully returned to positive profitability after executing a turnaround plan in the first half of the year. The key actions of the plan included adjusting capacity, relocating sales functions closer to the delivery units, and enhancing the focus on pricing, sales excellence, and project management. by acquiring new customers and expanded existing engagements, despite also facing an increasing price pressure. Singapore accounts for approximately 30% of Region Asia’s revenue. Regional operating profit amounted to DKK 8 million (2023: DKK -4 million), corre- sponding to a regional operating profit margin of 5.2% (2023: -2.8%). The improve- ment in profitability was a direct result of the actions taken during the year as part of the turnaround plan. Revenue Group Operating Profit DKK DKK demand in Quality & Compliance Solutions and Cloud Solutions in China. Meanwhile, 149 -6 million million 2024 2023 149 -6 2024 144 -18 2023 The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 19 Customer Satisfaction Score PUBLIC & PRIVATE IN DENMARK 4.2 (out of 5) Denmark Full-year revenue in 2024 grew to DKK 844 million in 2024 (2023: DKK 732 million), corresponding to an organic growth of 12.3%. This growth was bolstered by several important strategic contract wins, including the delivery of the critical SAP debitor system to ATP and the development and maintenance of the Danish Agency for Labor Market and Recruitment’s IT systems. Additionally, Region Denmark prolonged several public contracts. In the Private sector, the region primarily expanded its existing engagements and also brought in new customers across its Microsoft and SAP operation. Overall, the contract wins in both the Public and Private sectors have resulted in a strong order entry and contracted backlog for the coming years. Region Denmark continued its growth momentum with capturing market share within the Public sector, winning several contracts, and expanding its footprint in the Private sector. SCALES, a part of the region, solidified its position as Denmark’s largest supplier of Microsoft Dynamics 365 for Finance & Operations (D365FO), demonstrating significant growth. Region Denmark’s regional operating profit increased to DKK 151 million (2023: DKK 133 million), corresponding to a regional operating profit margin of 17.9% (2023: 18.2%). The increase in profitability was driven by improved in utilization, leverage from topline increase and strong cost focus, despite having a significant number of billable employees being engaged in crucial internal projects. Revenue Group Operating Profit DKK DKK 844 68 million million 2024 2023 844 2024 68 732 2023 60 The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 20 Corporate Governance Governance structure The Board of Directors of NNIT has a continued focus on good governance practices and complies with all suggested recommendations except for a separate nomination committee, the role of which is handled by the Chairman. Governance Structure SHAREHOLDERS BOARD OF DIRECTORS Governance Structure Annual General Meetings management structure. The Board of Directors supervises the work of Execu- tive Management and is responsible for overall management and strategic direction, while Executive Management is in charge of day-to-day management. Executive Management has established a Group Management consisting of the chief exec- utive officer, the chief financial officer, and senior vice presidents. NNIT's shareholders have the ultimate authority over the company and exercise their right to make decisions at general meetings. At the Annual General Meeting, shareholders approve the Annual Report and any amendments proposed to the company’s Articles of Association. Share- holders also elect board members and the independent auditor. CHAIRMANSHIP AUDIT COMMITTEE REMUNERATION COMMITTEE EXECUTIVE MANAGEMENT ORGANIZATION As of 31 December 2024, NNIT’s Board of Directors consisted of six share- holder-elected members and three The Board of Directors and Executive Management operate under a two-tier The Bigger Picture Sustainability Statements Financial Statements 21 employee-elected members. One board member is a member of the Executive Management of Novo Holdings A/S, and one board member is a former senior vice president of Novo Nordisk A/S. Both are regarded as representing the interests of a controlling shareholder. The remaining four of the six shareholder-elected board members are regarded as independent as defined by the Danish Corporate Govern- ance Recommendations. The composition of the Board of Directors ensures that its members represent the required profes- sional breadth, industry knowledge, diver- sity and international experience. Board members elected by the share- holders at the Annual General Meeting serve for a one-year term and are eligible for re-election. Board members elected by employees serve for a statutory four-year term and have the same rights, duties and responsibilities as shareholder-elected board members.Read about the Diversity & Inclusion policy on page 74. On March 14, 2024, Jan Winther was elected by the shareholders, replacing Anne Broeng. Read more about the members of the Board of Directors on pages 27-29. At the March 2024 Annual General Meeting, the shareholders re-elected the Chairman, Carsten Dilling (independent) and Deputy Chairman, Eivind Kolding (independent). The Chairman For a detailed view of the Chairman’s tasks please refer to the Chairmanship Charter on NNIT’s website. At the Annual General Meeting, the Chairman and Deputy Chairman of the Board of Directors are elected directly. The Chairman carries out administrative tasks, such as planning board meetings to ensure a balance between overall strategy setting and financial and managerial supervision of the company. The Audit Committee In 2024, the Board of Directors held six ordinary meetings and no extraordinary meetings. The Board of Directors has established an Audit Committee, responsible for assisting the Board in overseeing the financial and sustainability reporting process and the effectiveness of the internal control and risk Board & committees Board Meeting attendance 2024 Name Audit Remuneration Board of Directors Extraordinary Meetings Audit Committee Remuneration Committee Carsten Dilling Chairman Deputy Chairman Member Member ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ Zero Zero Zero Zero Zero Zero Zero Zero Zero Zero ꢀ ꢀ Eivind Kolding Chairman Anne Broeng (stepped down at AGM 2024) Christian Kanstrup Chairman Member ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ ꢀ Member Member ꢀ Nigel Govett (AC Chairman post AGM 2024) Caroline Serfass Member Chairman Member Jan Winther (elected at AGM 2024) Frederik Sparre Willumsen Dorte Broch Petersen Kim Høyer Member Member Member Member ꢀEmployee-elected representativeꢁꢁ ꢀAttended ordinary meetingꢁꢁ ꢀAbsent ordinary meetingꢁꢁ ꢀAttended extraordinary meetingꢁꢁ ꢀAbsent extraordinary meeting The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 22 management systems. Furthermore, the Audit Committee is responsible for assisting the Board of Directors with evaluating the effectiveness of NNIT's level of quality management and the maturity level of internal security management. In 2024, the Audit Committee conducted four ordinary meetings; all members of the committee participated in all meetings. Advisor Group. This is consistent with the Danish Committee on Corporate Govern- ance recommendations that listed compa- nies should conduct an external, objective evaluation at least every three years. tive working relationship with the CEO and management, ensuring open and effective dialogue. Meetings are structured, and the quality of board materials has improved over the past year. The basis for the corporate govern- ance structure of NNIT include: • • • Articles of Association Remuneration Policy The Process To enhance the board’s performance, the external advisor suggested that the board, in cooperation with the executives, set up meetings so that executives use the board more as a sounding board for core chal- lenges and that the board material comes in an aligned format, including a storyline, alternative solutions, and focused questions to the board. Moreover, it will be important to set aside time to discuss the company’s long-term vision and strategic dilemmas. Rules of Procedure of the Board of Directors as well as the Executive Management The evaluation included input from nine board members and four executives. It was based on in-depth personal interviews, a customized online questionnaire, and a mapping of the board composition. More- over, various documents, such as agendas, board material, and committee charters, were considered. As part of the evaluation, each board member, CEO, and CFO was given feedback on their performance and how they added value to the board. The result of the general board evaluation was discussed at a board meeting in November. • Competence Profile of the Board of Directors The Remuneration Committee • • • Board Committee Charters Sustainability and ESG Policy Diversity and Inclusion Policy The Board of Directors has established a Remuneration Committee responsible for assisting the Board with overseeing the Remuneration Policy for the members of the Board of Directors and Executive Management, including guidelines on incentive pay to Executive Management, the remuneration of the members of the Board of Directors, its committees and the members of Executive Management, as well as the preparation of the annual remuner- ation report. In 2024, the Remuneration Committee conducted two meetings. All members of the Remuneration Committee participated in all meetings in 2024. Tax Policy NNIT’s Tax Policy outlines the Group’s stance on tax and describes the governing principles for tax management. The policy is available from the company’s website at: nnit.com/about-us/sustainability-esg/policies General conclusions The board has many good qualities. Led by the Chair, the tone on the board is open, respectful, and encouraging. Board members are professional, dedicated, and committed to their roles. Everyone is comfortable voicing their opinions, fostering an environment where diverse perspectives are valued. The board also enjoys a posi- Data Ethics Policy At NNIT, we process large amounts of data on behalf of our customers and within our own organization. Data and information security have always been a fundamental Annual Evaluation In 2024, the Board of Directors was eval- uated by an external advisor, Leadership The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 23 part of NNIT's business, as it is of great importance to us that our customers and employees always feel safe when entrusting us with their data. expected in a free and democratic society and in accordance with human rights. Compliance with Corporate Governance Recommendations tors has best individual qualifications to perform the tasks of the audit committee. As a publicly listed company, NNIT is subject to the Danish recommendations on corpo- rate governance. In accordance with section 107b of the Danish Financial Statements Act, NNIT discloses its Statutory Corporate Governance Statement for the financial year 2024 at nnit.com/about-us/leadership/corpo- rate-governance Transparency For more information, please refer to the Statutory Corporate Governance Statement 2024. NNIT values being transparent about its data processing activities and being clear, open and honest about how and why it uses personal data NNIT's Data Ethics Policy embodies three key principles: Security, Fairness and Trans- parency. Risk Management and Control Activities In order to sustain a robust business, risk monitoring and control activities are designed and implemented to obtain the desired overview and assurance. The control activities are based on a risk assessment performed by Group Management and installed to prevent, detect and take steps to counter any material risks. A general description of risks is provided in the ‘Risk Management’ section on pages 24-26. Security In NNIT, the type of data we process is part of our data ethical considerations, as security measures must correspond to the sensitivity of the data being processed. These considerations are also part of our customer dialogue when advising about software development, ensuring that privacy-by-design and privacy-by-default are considered from the beginning. NNIT does not sell any data to any third parties or profit from it in any way. The Board of Directors approves the Data Ethics Policy, which is updated annually. NNIT reports on the work with Data Ethics and GDPR to the Audit Committee on a regular basis. In order to safeguard high ethical data standards, NNIT ensures appropriate tech- nical and organizational security measures are implemented to prevent the accidental or unlawful destruction, accidental loss, alteration or change and unauthorized disclosure of or access to data. NNIT complies with the Recommendations on Corporate Governance in all material respects, with two exceptions: 1) Due to the size of NNIT, the Board of Directors has not found it necessary or appropriate to establish a nomination committee. The tasks of the nomination committee are handled by the Chairman- ship. Fairness Fairness is about doing what is right and only handling personal data in ways that people would reasonably expect and not using it in ways that have unjustified adverse effects on them. In that regard, NNIT considers whether the use of personal information is justified and whether processing is compatible with what can be As part of its risk management, the company has also set up a whistleblower function which, in addition to the usual control functions, is intended to provide access to reports on suspected irregulari- ties in the business. 2) The Board of Directors has not found it necessary that a majority of the members of the audit committee are independent. The members of the audit committee are elected from whom of the Board of Direc- The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 24 The Key Risks are Assessed for Likelihood and Impact High Risk Management NNIT’s approach to risk monitoring and control is meticulously designed and implemented to provide a comprehensive overview and ensure robust assurance measures. The company’s risk management framework has long been a cornerstone of its business operations. Control activities are systematically based on a thorough risk assessment conducted by Group Management, with measures established to proactively prevent, promptly detect, and effectively address any significant risks that may arise. As an integral part of its risk management strategy, NNIT has implemented a whistleblower function. This confidential channel supplements traditional control mechanisms by enabling the reporting of suspected irregularities within the organization. This initiative reflects NNIT’s unwavering 5 4 1 2 commitment to transparency and accountability in its operations. 3 Operating in a highly competitive market, NNIT faces exposure to substantial internal and external risks. These risks include shifting market dynamics, regulatory changes, and unforeseen global events. To mitigate the potential adverse impacts of these risks, NNIT employs a structured and comprehensive approach to risk manage- ment, ensuring agility and resilience in its response. The company’s risk management efforts focus on identifying, assessing, and addressing key risks in a timely and effec- tive manner. These efforts not only safe- guard NNIT’s operational and financial stability but also enhance its ability to adapt and thrive in a dynamic business environ- ment. An overview of the most critical risks identified by NNIT is provided below. Low High Probability of occurence 1 2 3 ꢀCybersecurity risk 4 5 ꢀꢁCustomer engagement & solutions ꢀꢁLegal & compliance risk ꢀꢁTalent Management ꢀOperating model & efficiency The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 25 Risk, impact and mitigation Cybersecurity risk Legal & compliance risk Talent management 1 2 3 Risk NNIT is exposed to cybersecurity-related risks that have the poten- tial to harm or damage computer systems, networks, or digital environments Legal and compliance risks are increasing due to growing complexity and intensified regulatory requirements. Examples include new EU legislation on geo-restrictions, significant changes to GDPR regula- tions, and escalating ESG requirements. NNIT’s ability to maintain and win new business depends on its capacity to attract, retain, and develop qualified and innovative IT professionals. Impact Failure to repel cybersecurity risks can lead to business disruptions, contract breach, data loss, regulatory implications & penalties and reputational damage Non-compliance with legal and regulatory requirements can have severe consequences for NNIT, including financial penalties, oper- ational disruptions, reputational damage and increased oversight from authorities A shortage of talent may impact NNIT’s ability to take on new projects and deliver innovative solutions. Failure to engage and retain talent can lead to higher attrition rates and reduced employee satisfaction, ultimately affecting overall organizational performance. Furthermore, an inability to meet client expectations due to insuf- ficient talent could harm NNIT’s reputation and competitive posi- tioning in the market. Mitigation NNIT has implemented a multi-layered approach to mitigate cybersecurity risks. The CISO Function monitors and addresses prioritized risks by advising on relevant mitigating activ- ities. NNIT continues to invest in compliance measures to proactively address and ensure compliance with relevant regulations. NNIT has implemented a robust talent management strategy, which includes efforts to strengthen NNIT’s position as a preferred employer by building on the strong people foundation across its international presence. this strategy offers opportunities to work with the latest technologies and enhances engagement through inspirational leadership and consistent investments in employee training. Continuous oversight is conducted by the DPO function and the legal department, which provide assessments and recommendations on necessary compliance-related initiatives. A security Steering Committee oversees and prioritize security initia- tives. The committee is responsible for reviewing risks and ensuring a structured and transparent approach to risk management. NNIT is ISO 27001 certified and continuously assesses new risks aligning with NIS2-driven compliance requirements to ensure NNIT meets the highest regulatory standards in information security. These efforts aim to minimize compliance risks, safeguard NNIT’s operations, and uphold its reputation in an increasingly complex regulatory environment. In 2024, NNIT launched a new graduate program, achieving a record- high number of applicants and strengthening its talent pipeline. Regular monitoring of employee engagement and attrition is ongoing This includes increased focus on educating employees about cyber- security best practices to reduce human- related vulnerabilities as well as continued monitoring of NNIT systems, ensuring NNIT meets the highest r egulatory standards. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 26 Risk, impact and mitigation Customer engagement & solutions Operating model & efficiency 4 5 Risk NNIT’s strategy focuses on delivering fewer but more specialized services while managing a larger number of smaller customer engagements. This assumes business processes and a delivery model with an agile and scalable operational setup. Evolving customer and market expectations require a continuous adaptation of service offerings and processes. The New Beginning strategy has introduced a simplified operating model, embedding strong regional ownership and accountability with the aim of improving utilization and reducing overhead costs. Revenue growth must be carefully balanced with increased delivery capacity to ensure operational efficiency. Impact Failure to continuously develop a relevant and repeatable solution portfolio in line with customer demands could negatively impact the growth opportunities and profitability of the business. Failure to balance delivery capacity and improve billable utilization could negatively impact the profitability of the business. Mitigation NNIT maintains a strong focus on aligning service offerings with market trends and customer demands, ensuring relevance and competitiveness. A dedicated global solution development team drives the repeatability of key solutions across regions to achieve scalability and consistency, including building and maintaining global partnerships Several strategic and operational measures have been implemented to enhance operational efficiency. Regional ownership is strength- ening accountability and further emphasizing cost control. At the same time, continued optimization of global processes and the use of global delivery centers support profitable scalability. with strong local and global anchoring. Leveraging the new global ERP system will improve financial trans- parency and further support improvements in billable utilization and profitability. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 27 Board of Directors Carsten Dilling Eivind Kolding Caroline Serfass Chairman Deputy Chairman Board Member Committee Member of the Remuneration Committee Born 1962. Danish citizen. Chairman of the Remuneration Committee Born 1959. Danish citizen. N/A Personal and Educational Background Born 1961. French and British citizen. Bachelor of Science and Bachelor of Commerce, Int. Marketing from Copenhagen Business School. Master of Laws from the University of Copenhagen and AMP from Wharton Business School. MSc in Robotics from the University of Montreal, Canada, Master in Electrical and Electronics Engineering, École Centrale de Paris, France. Member of the Board of Directors since 2016. Member of the Board of Directors since 2015. Member of the Board of Directors since 2018. Other Directorships Chairman of the Board of Directors at MT Højgaard Holding A/S. Member of the Board of Directors at Thomas B. Thriges Fond and Chairman of the Board of Directors at two of its subsidiaries; Terma A/S and Thrige-Titan A/S as well a member of the Board of Directors at one of its subsidiaries; Thrige Holding A/S. Chief Executive Officer of CDI Consult ApS.. Chairman of the Board of Directors of Nordic Transport Group (NTG) A/S, Danmarks Skibskredit A/S, FRANKLY A/S, Den Erhvervsdrivende Fond Gl. Strand, DAFA Group A/S (and two subsidiaries) and MFT Energy A/S. Deputy Chairman of the Board of Directors of LEO Fondet and LEO Holding A/S. Member of the Board of Directors at Altor Fund Manager AB. Non-Executive Director at NHS Blood and Transplant. Independence Regarded as independent. Regarded as independent. Regarded as independent. Special Competences Strong executive background as CEO and Chair of a number of boards, and extensive experience within the IT industry. Extensive executive background as CEO and CFO, and strong competencies within finance, IT, and general management. Extensive background as a CIO in the international Life Sciences industry and strong competencies in IT and regulated industries. NNIT Shares 8,140 shares (no change in 2024) 7,950 shares (no change in 2024) 0 shares (no change in 2024) * Listed company The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 28 Board of Directors Christian Kanstrup Nigel Govett Jan Winther Board Member Board Member Board Member Committee Member of the Audit Committee Member of the Remuneration Committee Chairman of the Audit Committee N/A Personal and Educational Background Born 1972. Danish citizen. Master of Science, Economics (cand.polit.) from the University of Copenhagen. Post Graduate Executive Education from IMD. Born 1974. British citizen. Born in 1965. Danish citizen. MBA in Innovation & Leadership from Copenhagen Business School. Graduate Diploma in Business Administration (Organ- ization and Management) from Copenhagen Business School. Bachelor of Engineering in Electronics/IT from the Technical University of Denmark. BA (Hons) Historical Studies from University of Sunderland. IMD Lausanne Global Board Education Programme. Fellow Member of the Association of Chartered Certified Accountants (ACCA). Member of the Board of Directors since 2018. Member of the Board of Directors since 2022. Member of the Board of Directors since 2024 Other Directorships Chief Executive Officer of Evaxion Biotech A/S, Christian Kanstrup Holding ApS and CKC ApS. Chairman of the Board of Directors at InnoStrat ApS. Chief Financial Officer (CFO) at Novo Holdings A/S. Chairman of the Board of Directors of Ejendomsselskabet Novo Holdings Komple- mentar ApS and Ejendomsselskabet Novo Holdings P/S. Member of the Board of Directors of Novo Holdings US, Inc., F&O Advisor P/S and Advisor Denmark P/S which are subsidiaries of Novo Hold- ings A/S. Non-Executive Member of Tanjun 1 GP Limited. Member of the Board of Directors at IT-Branchen. Chief Execu- tive Officer of GovWin ApS. Independence Not regarded as independent due to his previous relations to Novo Nordisk A/S, which is a major shareholder of NNIT A/S. Not regarded as independent due to his position as CFO in Novo Holdings A/S which is a major shareholder of NNIT A/S. Regarded as independent. Special Competences Extensive background in the international Life Sciences industry as well as strong competences in finance and investor relations. Extensive background in corporate finance, business struc- turing and M&A activity, and strong competencies within international debt finance and private equity markets. Previously partner at Netcompany with focus on the public sector. Previously responsible for key customers in the public sector at KMD. NNIT Shares 3,000 shares (no change in 2024) 0 shares (no change in 2024) 3,902 shares (+3,902 in 2024) The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 29 Board of Directors Dorte Broch Pedersen Frederik Sparre Willumsen Kim Høyer Employee-elected Representative Employee-elected Representative Employee-elected Representative Committee N/A N/A N/A Personal and Educational Background Born 1970. Danish citizen. Born 1996. Danish citizen. Born 1974. Danish citizen. Master’s in internationalization and business administration from University of Southern Denmark. Master of science in economics and business administration from Copenhagen Business School. Export Engineer from the Technical University of Denmark (DTU). Employee Elected Board Member since 2023, joined NNIT in 2019. Employee-elected member of the Board of Directors since 2023, joined NNIT in 2021. Employee-elected member of the Board of Directors since 2023, joined NNIT in 2012. Director, HR Partner for Region Europe. Advanced Business Consultant at NNIT. Regional Head of NNIT Life Sciences Nordic European region. Other Directorships Independence N/A N/A N/A N/A N/A N/A Special Competences NNIT Shares 0 shares (no change in 2024) 24 shares (no change in 2024) 168 shares (no change in 2024) The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 30 Group Management Pär Fors Carsten Ringius Signe Nelsson Lars B. Petersen President and CEO, Executive Management Executive Vice President and CFO, Senior Vice President, Head of Human Resources Senior Vice President, Head of Communications, Marketing Commer- cial Excellence and Global Solution Development Executive Management Born in 1966. Pär Fors joined NNIT in 2021. Before joining NNIT, Pär was the CEO of CGI in Scandinavia. From 2017 to 2021, Pär was Chair of the Board of the association for Swedish IT and Telecom Industries, and since moving to Denmark, he has been a member of the Board of the industry association IT Branchen. He holds an MSc in Busi- ness Administration and Economics from Linköping University. Born in 1972. Carsten Ringius joined NNIT in 2022. Before joining NNIT, he was Group CFO at K.W. Bruun Import – and before that he held a number of divisional CFO positions at TDC. He holds an MSc. in Economics & Business Administration – Finance from Aarhus School of Business, Denmark/Oregon State University. Born in 1976. Signe Nelsson became a part of NNIT in June 2023. Prior to joining NNIT, Signe held senior HR leadership roles within the financial and Life Sciences industries. Previ- ously, she also acted as an Executive Advisor in the realms of public affairs and community engagement. Signe holds an MSc in psychology and busi- ness from Roskilde University and an Executive MBA from Henley Business School. Born in 1971. Lars B. Petersen joined NNIT in 2007. In September 2023, to further drive and anchor commercial excellence in NNIT, he was promoted to Senior Vice President, Communi- cations, Marketing and Commercial Excellence, thereby joining the Group Management team. Before joining NNIT, he held a number of sales manager positions in IBM, and he was a staff sergeant in the Royal Danish Airforce. He holds a graduate degree in Marketing Management from Copenhagen Business College. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 31 Group Management Jason Xing Pia Bundgaard Ingels Kasper Søndergaard Andersen Senior Vice President, Head of Region Denmark Greg Cathcart Senior Vice President, Head of Region US Senior Vice President, Head of Region Asia Senior Vice President, Head of Region Europe Born in 1973. Jason Xing joined NNIT in 2007 as the first manager hired locally in China. In 2019, he was promoted to General Manger of NNIT China, and starting in 2022, he was made respon- sible for NNIT China and Singapore. In April 2023, he was promoted to Senior Vice President, Head of Region Asia, thereby joining the Group Manage- ment team. Before joining NNIT, he worked in OTIS Elevators as Senior Manager and Motorola as Engineer and Manager. He holds a bachelor’s degree in electrical engineering from Tianjin University and an MBA from the University of Maryland. Born in 1972. Pia Ingels worked for NNIT in 2001 to 2007, and re-joined NNIT in 2014. She has held a number of roles in sales and consultancy before being promoted to her current position in January 2025. Besides her roles in NNIT she has worked as Senior Project Manager and Head of Projects with other IT consultancies like Valtech and T26. She holds a MSc in Economics from Copenhagen University. Born in 1978. Kasper Andersen joined NNIT in 2009 and has since held a number of different roles before advancing to his current position in 2020. He has been a central driving force in some of the largest strategic transformation projects over the years, not least the acceleration of global sourcing, implementation of companywide automation, and the shaping of some of NNIT’s largest customer engagements. He holds an MSc in Business Administration – Inter- cultural Management from Copen- hagen Business School. Born in 1961. Greg Cathcart joined the NNIT Group in 2020 when NNIT acquired Excellis Health Solutions. In October 2023, as part of the initial planning to integrate Excellis in NNIT, he was made Senior Vice President, Head of Region USA, thereby joining NNIT’s Group Management team. In addition to his role as CEO of Excellis Health Solutions, he has comprehensive experience from various chief and sales executive roles within the Life Sciences industry, including several operational & supply chain roles at Johnson & Johnson (12+ years) and the role of Life Sciences Leader at SAP (3+ years). He holds a BSc in Management from Temple University. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 32 Shareholder Information Share information NNIT shares were priced at DKK 92.5 per share on December 31, 2024, for a market capitalization of DKK 2,312.5 million. The share price increased 10% in 2024. In 2024, the average daily turnover in the NNIT share was DKK 2.8 million. had 16,260 registered shareholders on December 31, 2024. Stock exchange: Nasdaq CPH A/S Share Capital and Ownership 51% of the share capital was directly or indi- rectly controlled by Novo Holdings A/S. The following investors reported holding more than 5% of NNIT’s share capital in pursu- ance of section 55 of the Danish Companies Act: Index: Mid Cap NNIT’s share capital amounts to DKK 250,000,000 divided into 25,000,000 shares, each with a nominal value of DKK 10. NNIT has a single share class, each share carrying 10 votes. There are no restric- tions on ownership or voting rights. NNIT By comparison, the Nasdaq Copenhagen A/S OMXC25 CAP index decreased 3%, while the Nasdaq Copenhagen MidCap index, of which NNIT is a component, was up 21% in the same period. Share capital (DKK): 250,000,000 Number of shares: 25,000,000 Nominal value (DKK): 10 • Novo Holdings A/S, Gentofte, Denmark 33.50% directly and 51.00% through its holding in Novo Nordisk A/S ISIN code: DK0060580512 Trading symbol: NNIT NNIT Share Price Compared to Peers DKK per share • Novo Nordisk A/S, Gladsaxe, Denmark 17.50% Share price at year-end (DKK): 92.5 150 125 100 75 • Chr. Augustinus Fabrikker Akts., Copen- hagen, Denmark 5.86% Treasury shares: 106,411 (0.4%) 50 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC ꢀNNITꢀꢀꢀ ꢀOMX C25 (rebased)ꢀꢀꢀ ꢀOMX CPH MidCap (rebased) The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 33 Shareholder overview % Treasury Shares Communication with Shareholders NNIT aims to give investors the best possible insight into the company to ensure fair and efficient pricing of NNIT shares. This is done by pursuing an open dialogue with investors and analysts. As part of its internal incentive programs NNIT held 106,411shares as of December 31, 2024 for a total value of DKK 9.8 million. Key Management has been granted 20,487 shares with a fair value of DKK 1.9 million as of December 31, 2024. 6.3% 1.8% NNIT Investor Relations contact information: 33.5% Carsten Ringius NNIT's Executive Management hosts confer- ence calls following the release of quarterly financial results and participates in relevant seminars and meetings to ensure that investors can meet with NNIT on a regular basis. EVP and CFO Contact: +45 3077 8888 | [email protected] nnit.com/investors-media/investors 34.6% Dividend Policy and Capital Structure NNIT aims to deliver a competitive return to its shareholders through a combination of share price increase and distribution of capital. The guiding principle is that excess capital after funding of NNIT’s growth oppor- tunities, including investments, should be returned to the shareholders. NNIT is currently focused on maintaining a flexible capital structure and ensuring a leverage ratio (NIBD/EBITDA) in the 1-3x range excluding the effect of potential M&A activity. NNIT aims to continue investing in the busi- ness to drive growth and efficiency, including pursuing potential M&A opportunities within the industry. The Board of Directors thus intends to propose to the shareholders at the Annual General Meeting that ordinary divi- dends of DKK 0 per share be distributed for the financial year 2024, equal to a dividend payout ratio of 0% of the 2024 net results. 17.5% 5.9% 0.4% The NNIT stock is currently covered by four financial analysts, who regularly issue research reports on NNIT. A full list of the analysts covering NNIT can be found at www.nnit.com/investors-media/investors/ together with an overview of all company announcements, investor news, press releases, historical financial figures, analyst estimates, and further information on NNIT. ꢀNovo Holdings A/S ꢀNovo Nordisk A/S ꢀNNIT A/S ꢀRest of Denmark ꢀNot registered ꢀRest of World ꢀChr. Augustinus Fabrikker Financial Calendar for 2025 March 13 Annual General Meeting Results for the first three months of 2025 May 6 Results for the first six months of 2025 September 3 November 4 Results for the first nine months of 2025 NNIT’s share register is managed by VP Securities A/S, Nicolai Eigtveds Gade 8, 1402 Copenhagen K, Denmark, and share- holders can register their shares by name by contacting their depository bank. On December 31, 2024, approximately 92% of NNIT’s shares were held by investors based in Denmark, while 6% were held by foreign investors. The outstanding 2% of shares were not registered by name. NNITꢀꢁAnnual Report 2024 34 Sustainability Statements General disclosures Environment Social Governance The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 35 List of disclosure requirements General ESRS2 General Disclosures Page Disclosures BP-1 General basis for preparation of the Sustainability Statements Disclosures in relation to specific circumstances 37 BP-2 38 GOV-1 GOV-2 The role of the administrative, management and supervisory bodies 39-41 39-41 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies GOV-3 GOV-4 GOV-5 SBM-1 SBM-2 IRO-1 Integration of sustainability-related performance in incentive schemes Statement on due diligence 39-41 42 Risk management and internal controls over sustainability reporting Strategy, business model and value chain 43 44-46 44-46 47-49 49 Interests and views of stakeholders Description of the processes to identify and assess material impacts, risks and opportunities Disclosure Requirements in ESRS covered by the undertaking’s Sustainability Statements Material impacts, risks and opportunities and their interaction with strategy IRO-2 SBM-3 50-52 The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 36 ESRS 2 General Disclosures Sustainability in NNIT Sustainability and people As part of our commitment to the UN’s 17 Sustainable Development Goals (SDGs) we put special focus on SDG 4 Quality Education and SDG 5 Gender Equality in support of the people agenda put into action through our diversity and inclusion initiatives, as well as internal education, develop- ment and training possibilities for all employees. NNIT’s overall aspiration is to make a mark in business and society, bringing digital transformation to life. In other words, while building a successful business, we also want to contribute towards creating a sustainable future for the planet and for people Sustainability and planet NNIT is committed to the UN Global Compact, the Universal Declaration of Human Rights, the UN Convention against Cor- ruption, the International Labor Organization’s conventions and recommendations, including the Rio Declaration on Environment and Development, convention no. 155, and the Declaration on Fundamental Principles and Rights at Work. Under UN’s Sustainable Development Goals (SDGs) we also have special focus on driving awareness and activities in support of SDG 9 Industry, Innovation and Infrastructure, and SDG 12 Responsible Consumption and Production. As responsible corporate citizens, we have long-since committed to the UN Global Compact (UNGC), supporting and communicating on our progress in adhering to the ten UNGC principles. As part of our commitment to the UNGC, we also fully support UN’s 17 Sustainable Development Goals (SDGs). Further, we are committed to the Science Based Targets initiative (SBTi) working on reducing our CO2 emissions in line with climate science. As part of our operations, we are committed to SBTi working on reducing our CO2 emissions in line with climate science. In 2024 we have set near-term targets, consistent with limiting the global temperature rise to 1.5°C. Further, we disclose our environmental impact via the Carbon Disclosure Project (CDP). A key element in our environmental activities is our Global Facility Policy that, among other things, govern investments in and management of NNIT office buildings with a view to optimize and drive reductions in our energy and water consumption. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 37 ESRS 2 BP-1 General basis for preparation of Sustainability Statements The Sustainability Statements are prepared in line with the ESRS issued by the Euro- pean Financial Reporting Advisory Group (EFRAG). All the data points included in the Environment, Social, and Governance sections of this report have been deemed material based on our double materiality assessment (DMA). The accounting policies have been applied consistently in the finan- cial year and for comparative figures. owned subsidiaries, extending to both the upstream and downstream value chain. which NNIT Group’s policies, actions, targets and metrics extend to our value chain is described in the sections relating to the topical standards. from medium- or long-term time horizons defined by ESRS 1 have been identified. The entities for which we have ESG data, along with the five entities for which we lack ESG data, share a very similar business model and activities. We are in the process of onboarding most of our subsidiaries on the same HR and Finance systems in the beginning of 2025. In the year 2025, we plan to report ESG data based on actual data for all subsidiaries. Consolidation of all quantitative ESG data are specified in the tables in sections E, S, and G. The extent to Forward looking statements The Sustainability Statements includes forward-looking statements based on disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different since anticipated events frequently do not occur as expected. Information omitted from Sustainability Statements No information corresponding to intel- lectual property, know-how or the results of innovation has been omitted from the Sustainability Statements. Nor has NNIT Group exempted from disclosure of any impending developments or matters that are currently in negotiation. No deviation Information in the Sustainability Statements has the same scope as the financial state- ments and includes NNIT A/S and all fully The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 38 ESRS 2 BP-2 Disclosures in relation to specific circumstances For the 2024 reporting period, NNIT A/S has restructured its sustainability disclosure to comply with the CSRD, implemented by the ESRS. To align with the standard, our Sustainability Statements are structured into four overall sections: ‘General disclo- sures’, ‘Environment’, ‘Social’, and ‘Govern- ance’. • A double materiality assessment that specifically for E1 (E1-9) S1 (S1-7, S1-13, S1-15). any. Quantitative metrics and monetary amounts which are subject to high level of measurement uncertainty are disclosed as part of relevant sections in Environmental, Social and Governance section. was conducted in accordance with the requirements of ESRS to identify material impacts, risks and opportunities across NNIT’s own operations, upstream and downstream value chain. Estimation of data and information When estimates are used for the purpose of providing consolidated group-wide reporting, the underlying assumptions and methodologies are detailed in the accounting policies applicable to the data or information, including any associated meas- urement uncertainties. This relates specifi- cally to metrics in section E1 and S1. As we are relying on EFRAG’s guidelines, we define the time horizons accordingly with the time horizons defined by ESRS 1: • In prior years, NNIT voluntarily reported on our CO2e-emissions using a different consolidation approach, that does not align with CSRD requirements. As a result, comparative figures are not presented, as the scope of entities included in the reporting has changes. To ensure consist- ency and alignment with regulatory standards, NNIT has updated its baseline year for its SBTi-validated emission reduc- tion targets to include the full group for 2023, establishing the foundation for our environmental targets described in E1. Changes in the preparation or presenta- tion of sustainability information (i) Short term is defined as less than one year (ii) Medium term as 1-2 years (iii) Long term as 2-5 years out. Since 2016, NNIT has reported on its work with sustainability. With the implementa- tion of CSRD, NNIT has made some minor changes to the presentation of the sustaina- bility information compared to the previous reporting periods. We acknowledge the need for continuous evolution of our ESG metrics data and assessments going forward as we strive to reduce the associated uncertainties. We will continue to develop our methodology to ensure we are capturing our exposure to climate risk as accurately as possible, while further exploring ways to integrate climate change considerations into our existing processes. Incorporation by reference Disclosure requirements incorporated by reference to other sections of the Annual Report include GOV-1, GOV-2 and GOV-3 related to Corporate Governance on page 39-41, GOV-5 related to Risk Management on page 24, SBM-1 related to Strategy on page 44 and E1 ESRS2 IRO-1 relating to Risk Assessment on page 43. For a full index of all disclosure requirements, refer to appendix III on page 107-109. These changes include: • The inclusion of a Sustainability State- ments within NNIT Group’s annual report that is structured in accordance with the requirements of the ESRS. Use of phase-in provisions For the first year of reporting according to CSRD, the provision in ESRS 1:137 allows a phase-in option for certain disclosure requirements, that have been applied Assumptions, approximations and judge- ments made in the measurement have been disclosed in relevant sections, if The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 39 GOV-1, GOV-2, GOV-3 Sustainability governance itative and quantitative. Environmental targets are managed through our ISO14001 EMS certification, which is anchored in our ISO9001 QMS certification. For more infor- mation on responsibilities and reporting lines, please refer to the section on Corpo- rate Governance on page 20-23 (Corporate Governance (MR), ESRS 2 GOV-1). • Relevant knowledge and experience within Environmental, Social and Governance (ESG) the Board ensures that the needed compe- tencies are available to effectively oversee sustainability matters and initiatives. Board of Directors and Group Management The work with Sustainability in NNIT is anchored in the NNIT Board of Directors and the NNIT Management Group. The sustainability policy, which applies to NNIT’s management and employees globally, is approved by the Board of Directors. • Environmental: Climate change, climate adaptation, energy, resource use and circular economy The group Management team is responsible for ensuring the implementation of the ESG strategy and overseeing targets, and the annual review process of the DMA is anchored through group management in our CFO office. • Social: Own workforce, workers in the value chain, Diversity, ESG and sustainability priorities are Our Board of Directors possesses the competences related to sustainability as below: embedded in the Board of Directors' deci- sion-making processes. The Board receives annual updates on our sustainability • Governance: Corporate culture and business conduct. progress and a comprehensive report on the year's achievements, and the board is responsible for utilizing the result of the double materiality assessment to guide the process of setting targets in relation to material impacts, risks and opportunities where relevant. Targets set are tracked using appropriate indicators, both qual- • Relevant knowledge and experience in respect of social, environmental, political, regulatory and business matters in the geographic markets in which NNIT’s business activities are conducted. The Board of Directors undergoes an annual evaluation, which is further disclosed in the Corporate Governance section on page 20-23 (Corporate Govern- ance (MR), ESRS 2 GOV-1), where the perfor- mance, success and competencies of the Board are evaluated. The composition of The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 40 GOV-1, GOV-2, GOV-3 Sustainability governance Sustainability Committee Controls over sustainability reporting Reported data and descriptions in the Sustainability Statements are reviewed and validated by relevant owners of the different functional areas. In connection with the review process, KPI figures are controlled and documentation reviewed. Reviews are carried out in connection with the annual preparation of the Sustainability State- ments. There is a sustainability Committee headed by Senior VP, Commercial excellence & sustainability and includes our Group CFO. The Committee comprises of sustainability ambassadors appointed from each region where NNIT has office and also includes stakeholders from facility management, HR, Finance, Legal. The Committee meets once every quarter to discuss the ESG strategy, impacts, risks and opportunities, targets and action plans for each of the parame- ters of E, S and G. The Group CFO who is a member of the Sustainability Committee reports to the Audit Committee for matters related to sustainability. The Sustainability Committee provides quarterly updates to the Group CFO ensuring regular monitoring and oversight. Audit Committee The Audit Committee oversees the Enter- prise Risk Management (ERM) process and the handling of the overall sustainability related activities on behalf of the board. The Audit Committee (AC) consist of at least two members, elected among the members of the Board of Directors. The AC is respon- sible for the on-going dialogue with the external auditor and facilitates exchange of information between the Board of Directors and NNIT’s external auditor. In addition, the Audit Committee is also responsible The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 41 Diversity, BoD % Diversity, All Management Levels % for oversight of impacts, risks and oppor- tunities for sustainability reporting as per CSRD and make suggestions to the Board. The Audit Committee reports to the Board which serves as managing, supervisory and administrative body for reporting outcomes. Three members of the board are employee elected board members out of which two were males, and one was female (67/33%). Diversity, Group Management % 22% 25% In total, the Board of Directors has seven male and two female (78/22%) members. 36% The Board of Directors remains committed to having international members of the Board. Currently, two shareholder-elected board members are non-Danish. Integration of sustainability-related performance in incentive schemes NNIT group has not yet included sustaina- bility-related performance in the incentive schemes for the Executive Management, or other incentive schemes. Historically sustainability-related metrics have not been at a sufficiently high maturity level to link incentives with performance. We will eval- uate this again in 2025. 64% 75% 78% ꢀWomen ꢀMen ꢀWomen ꢀMen ꢀWomen ꢀMen For further information on the composi- tion of the Board of Directors and Group Management, refer to section on Corpo- rate Governance on page 20-23 and 27-31 (Corporate Governance (MR), Board of Directors and Group Management, ESRS 2 GOV-1). Diversity, Board of Directors and Group Management 2024 2023 Δ Diversity in the Board of Board of Directors Directors and Management The 2025 target of having at least 30% of the underrepresented gender on the Board of Directors as well as in management levels is fulfilled for the management group. We are still committed to working towards the target for the Board of Directors. Total number of members The underrepresented gender in % Group Management 9 9 - 22% 33% -11% As of December 31, 2024, five out of six shareholder-elected board members were male, and one was female (83/17%) %), and four of the six shareholder-elected members are considered independent (44% of the board). Total number of members The underrepresented gender in % All management levels 8 8 - 25% 13% +12% Total number of members1 200 151 - - The underrepresented gender in % 36% 36% New targets will be set in 2025. 1 2023 figure does not include SCALES, SL Controls and Excellis. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 42 GOV-4 Statement on due diligence Sections in the Sustainability Statements Does the disclosure relate to people and/ or the environment? Core elements of due diligence Page a) Embedding due diligence in governance, strategy and business model ESRS 2 GOV-2 ESRS 2 GOV-3 ESRS 2 SBM-3 39-40 39-40 50 People and Environment People and Environment People and Environment The table provides a mapping of where in our Sustain- ability Statements we provide information about our due diligence process, including how we apply the main aspects and steps of our due diligence process. b) Engaging with affected stakeholders in all key steps of the due diligence ESRS 2 GOV-2 ESRS 2 SBM-2 ESRS 2 IRO-1 S1-2 39-40 44-46 47-49 75 People and Environment People and Environment People and Environment People S4-2 93 People c) Identifying and assessing adverse impacts ESRS 2 IRO-1 ESRS 2 SBM-3 47-49 50 People and Environment People and Environment d) Taking actions to address those adverse impacts E1-3 S1-4 S4-4 G1-3 57 77 Environment People 94-95 102-103 People People and Environment e) Tracking the effectiveness of these efforts and communicating E1-4 E1-5 E1-6 S1-5 S1-6 S1-9 S1-14 S4-5 G1-4 58 59 Environment Environment Environment People 60 79 81 People 83 84 96 103 People People People People The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 43 GOV-5 Sustainability risk assessment As part of the annual risk assessment performed by the NNIT Group Management in 2024, any identified ESG risks were subsequently assessed by the Board of Directors. As part of Double materiality assessment, NNIT has identified risks related to each of the parameters of Environment, Social and Governance. Please refer to page 47-52 for information on material risks identified. Risks related to reporting diligently to ensure sustainable consumption to the extent possible (Please refer to page 24-26 in Risk Management, ESRS 2 GOV-2) NNIT’s sustainability reporting is susceptible to the risk of material misstatement caused by human error or incomplete data. ESRS aligned accounting principles have been adopted to manage this risk, in addition to external auditing providing limited assurance. Our annual risk management process is designed to manage the risks associated with NNIT’s operations. During that process, we also monitor risks related to sustainability reporting. In 2024, the risk manage- ment and reporting included risks related to sustainability reporting, governance and compli- ance reporting. Our enterprise risk management process is part of the Company Performance Manage- ment Process and includes the methods and processes used to collect and consolidate a complete risk picture of NNIT. Finance in collaboration with responsible person from quality and security undertakes a process of risk re-evaluation and risk assessment. Risks are evaluated and top 20 risks are presented to NNIT Group Management along with how they can be managed and their mitigating actions. Following, NNIT Group Management report top 10 risks to the Board along with their risk mitigation plan. This process also includes risks related to sustainability and ESG. Successfully Managing E and S Risks NNIT has comprehensive emergency response plans in place across all geographies and works The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 44 SBM-1 , SBM-2 Sustainability strategy, business model and stakeholder engagement Strategy, business model and value chain NNIT is a highly specialized IT consultancy focusing on life sciences internationally and the public and private sectors in Denmark. We provide IT and business solutions in Asia, Denmark, Europe and the US. We focus on high complexity industries and thrive in environments where regulatory demands and complexity are high. Our focus is internationally exclusively on the life sciences industry, helping customers digitalize key parts of their value chain. From the Danish headquarters, we also focus on the public and private sectors. We advise on and develop sustainable digital solutions that serve end-users, customers and employees effectively. The NNIT Group consists of parent company NNIT A/S and subsidiaries including SCALES, Excellis Health Solutions and SL Controls, who together employ over 1,700 people. 818 181 297 440 Headcount. 1,851m 1,736 Headcount. Headcount. Headcount. Total revenue. Total headcount. Region: Denmark Region: US Region: Asia Region: Europe Region: Europe, US and Asia Region: Europe, US and Asia The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 45 Strategy NNIT’s overall aspiration is to make a mark in business and society, bringing digital transformation to life. We want to build a successful business while contributing with our expertise and capabilities towards creating a sustainable future. Business Model Deploying strategic assets to address business potential and plans Value creation NNIT has for many years worked on reducing carbon emissions, including setting Science-Based targets for reducing our carbon footprint. Moving forward, NNIT will continue to develop our sustain- ability reporting processes for future CSRD reporting. Customers Employees Investors Digital Customer Industry mastery solutions that experience work Talented people with a business first approach These initiatives are taken to support the political initiatives, and customer wishes to reduce environmental impact. As a highly specialized consulting company, where the ability to attract the right people to the organization is key to delivering the stra- tegic targets, NNIT have a strong focus on providing good working conditions, treating all employees fairly and respectfully as well as supporting political and societal initiatives and agendas on diversity and inclusion. Superior quality Domain knowledge People the right people + good work environment = strong business reduce emissions to support climate targets Environment Governance 2024 represents our first year as a pure IT consultancy, with a complete legal, tech- Strong governance to manage risks and operations The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 46 Stakeholders Engagement Purpose nical and operational split from our former infrastructure operations. During 2024, we continued our strategical focus on growing in Life Sciences globally and in the Danish public sector. Employee engagement and collaboration with their representatives are central to shaping our human resources strategy. Feedback from employees is integrated into the planning and execution of HR initiatives, while consultations with workers’ representatives ensure alignment on employment conditions and terms. The Board of Directors, informed by input from across the organization, takes the lead in setting our strategic direction. Value chain workers Indirect engagement through internal Vice Presidents, for geographic areas of opera- tion, working with supplier and procurement activities. To promote ethical labor practices and sustain- ability across the supply chain while staying aligned with guidance from organizations like the UN Global Compact. Suppliers of hard- ware equipment, etc. Indirect engagement through internal Vice Presidents, for geographic areas of opera- tion, working with supplier and procurement activities. To evaluate suppliers' ESG practices in alignment with international standards, ensuring ethical sourcing and sustainability throughout the supply chain. For more details on business model and strategy, refer to the Management Review on pages 5-7 and 14, and more information on the Carbon Reduction Plan, see page 54 in E1 Climate Change. For information on material impacts, risks and opportunities and their relationship to NNIT’s business model and value chain, refer to SBM-3. Employees Indirect engagement through HR represent- atives, including the Vice President for HR, with a focus on employee satisfaction and engagement. To incorporate a broad employee perspective representing the entire company to assess the company's sustainability practices. Customers & busi- ness partners Indirect engagement through the Vice President of Communication, Marketing and Commercial Excellence, who oversees and administrates the engagement with customers and business partners on daily basis. To align ESG goals with client expectations and ensure a clear understanding within NNIT. To date, no adjustments to our strategy or business model have been deemed neces- sary because of stakeholder feedback. Society (citizens/ patients) Indirect engagement through the Vice President of Communications, Marketing and Commercial Excellence and the CFO who oversees the public opinion and engage themselves in societal trends through partic- ipation in networks. To align ESG goals and procedures with the surrounding society’s expectations of NNIT. For more details on our value chain, refer to IRO-1 on page 47-49. There is no formal collection of stake- holder input for NNIT from stakeholders on sustainability matters, however infor- mation is derived from NNIT Project teams, sustainability ambassadors (appointed employees), managers and management team as input to NNIT’s sustainability committee. The committee process infor- mation in regular meetings, and build an understanding of stakeholder views, considering how this relates to the business model and strategy of NNIT. Interests and views of stakeholders Stakeholder engagement plays a crucial role in identifying material issues and serves as the foundation for developing initiatives and solutions that support more sustain- able operations. This engagement remains a dynamic process, fostering ongoing dialogue between NNIT and key stake- holders to continuously refine strategies based on the insights gained from these interactions. Shareholders Indirect engagement through the Board of Directors, who has the role of representing the shareholders’ interests. The shareholders of NNIT hold ultimate authority over the company and exercise their decision-making rights during general meetings. For more information on stakeholders, refer to IRO-1 on page 48. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 47 IRO-1 NNITs materiality matrix Index of sustainability matters Double material Double materiality Impact material Double material E1 S1 Climate change mitigation, E1-1 Working Conditions, S1-1 assessment & outcome E1 S1 S1 S4 S1 S1 S4 G1 Impact Material E1 S1 E1 Impact, risk and opportunity management Energy, E1-2 S1 S1 S1 S1 S4 S4 G1 Working time S1-1-2 In 2024, NNIT Group conducted its first double materiality assessment (DMA) in accordance with the requirements of the ESRS. This included identifying and objectively scoring impacts, risks, and opportunities (IROs), as a basis for the materiality decision of the sustainability matters, resulting in a double materiality assessment. Work-life balance, S1-1-7 Health and safety, S1-1-8 Training and skills development, S1-2-2 Non-discrimination, S4-3-1 S1 S1 Access to products and services, S4-3-2 Corporate culture, G1-1 0 G1 G1 Financial Material Output from the materiality assessment Gender equality and equal pay for S1 S1 G1 G1 We have identified our impacts on the environment and society (impact materiality assessment) as well as the sustainability-related risks that we are exposed to (financial materiality assessment). The outcome is aggregated per ESRS topic, showing that E1, S1, S4, and G1 are our material sustainability matters. Sustainability matters have been assessed for materiality not only on a topic level, but also on a sub- and sub-sub topic level. On a sub- and sub-subtopic level, the following matters are deemed material: work of equal value, S1-2-1 Diversity, S1-2-5 Non-material Financial material Financial materiality Protection of whistleblowers, G1-2 Corruption and Bribery, G1-6 Non-material (0) Environment Social Climate change adaptation, Pollution, Water and marine resources, Biodiversity and ecosystems, Circular economy, Secure Employment (OW), Adequate Wages (OW), Social dialogue (OW), Freedom of Association (OW), Collective bargaining (OW), Employment and inclusion of persons with disabilities (OW), Measures against violence and harassment in the workplace (OW), Other work-related rights (OW), Information-related impacts for consumers and/or end-users, Personal safety of consumers and/ or end-users, Responsible marketing practices, Animal welfare, Political engagement, Management of relationships with suppliers Governance Non-material The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 48 holders and users of Sustainability State- ments were designated as stakeholder representatives to provide insights on the sustainability matters and identify and score impacts, risks and opportunities. A key assumption was that the internal stake- holders, through their daily interactions, could effectively serve as proxies, accurately representing the views and perspectives of external stakeholders. Materiality scoring approach and assessment Description of the process to identify and assess material impacts, risks and opportunities These internal stakeholders acted as proxies, providing insights from various perspectives, such as those of suppliers, customers, and employees. In addition, data was collected such as internal docu- ments and processes, policies, external industry standards and NNIT annual reports. Through the initial workshops, sustainability topics and sub-topics that were not relevant to our business model were identified and assessed as non-ma- terial. The materiality assessment’s scoring meth- odology and criteria were undertaken in accordance with the requirements in ESRS 1 and following the EFRAG IG 1 Materiality Assessment Implementation Guidance, focusing on: The methodology followed for the materi- ality assessment, scoping, probability and scoring involves considering factors that gives rise to heightened risk of adverse impacts. Throughout the process, the magnitude, likelihood properties of each of the risks were evaluated in terms adverse impacts due to geographical factors, nature of the activities, business relationships, etc. • Impact materiality: scale, scope, irreme- diability, and likelihood of impacts (based on whether an impact is positive/negative and actual/potential). • Financial materiality: financial magnitude of risk/opportunity, likelihood, and the nature of the financial effect. Senior leaders and proxies for stakeholder groups were selected based on several criteria, for example their role in NNIT, their expertise in the field, their relation to a certain stakeholder group and their role in the society. When identifying impacts, proxies considered both NNIT’s own impact and impacts resulting from its business relationships. The analysis also considered whether any risks and opportunities could derive from the financial effects of any of the identified impacts or dependencies. The overall material topics were then assessed by evaluating each individual IRO, taking into account any known depend- encies on external factors that could potentially impact NNIT’s business model. A systematic process of mapping IROs to ESRS subtopics was performed, and cross-referenced with EFRAG’s implemen- tation guidance to identify all applicable disclosure requirements. Finally, the rele- vance, applicability and information materi- ality of individual datapoints was validated to ensure a focused and relevant reporting. Identifying sustainability matters As an initial step, NNIT engaged key internal stakeholders across our organization through double materiality assessment workshops. The context of NNIT’s opera- tions and business model, value chain and affected stakeholders was assessed to identify relevant sustainability matters as outlined in ESRS 1. The process included a focus on possible high-risk areas for the IT consulting industry, such as data privacy, energy consumption and supply chain responsibility, but no value chain activity or business relationship gave rise to heightened risk of adverse impacts. Time horizons were considered in the scoring of impact, risks and opportunities. The process was informed by NNIT’s internal risk management system, internal policies and procedures. Risks and opportunities with possible financial effects were assessed based on magnitude and probability of occurrence, while no monetary threshold was applied. The method for assessing financial impact will be further developed for future reporting in 2025, to align further with our risk assessment and management system. The assessment also accounted for Although a formal climate-related scenario analysis was not performed, the evaluation of physical risks and identification of transi- tion risks relied on NNIT’s internal expertise and knowledge. This process was guided by principles from the GHG Protocol and SBTi. Stakeholder engagement Leaders responsible for relevant functions with deep knowledge of affected stake- The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 49 the distinction between actual and potential IRO’s, ensuring a distinction between existing conditions and emerging issues. In cases involving human rights impact, the severity of the impact was given precedence over likeli- hood when determining materiality. management and signed off by the Chief Financial Officer, and the Audit Committee oversees the process on behalf of the Board of Directors. The results are compared with the risk management system to secure that sustainability matters are reflected in risk management processes. Sustainability matters are prioritized based on qualitative and quantitative data collected by NNIT and appointed third parties, in addition to other regulation in scope. The final scope and likelihood of individual IROs and sustainability matters also guides strategic prioritization. Value Chain Overview Value Chain Stages Upstream refers to the suppliers, raw materials, and other inputs that go into making a product, while downstream refers to the processes, distribution, and customers on the other end. A sustainability matter was deemed material if at least one impact, risk or opportunity was above the materiality threshold, indicating either impact materiality, financial materiality, or both. Non-material sustainability matters were those where no IRO was identified and/ or all impacts, risks and opportunities were scores below the threshold. Upstream Suppliers of hardware equipments, etc. Upstream Infrastructure operations Upstream The double materiality assessment, process and method will be reviewed annually. For more information on sustainability govern- ance, see page 40. Governance and internal controls The double materiality assessment and its results are presented to NNIT group Own Operations Own operations globally & facilities Own Operations and downstream IRO-2 Use of Solutions Disclosure requirements Downstream Full list of disclosure requirements can be found in Appendix III on page 107-109. Citizens/Patients Downstream Downstream The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 50 E1 - Climate change SBM-3 in the E1, S1, S4 and G1 sections of the Sustainability Statements. IRO Location in VC Time horizon Material impacts, risks and opportunities and their interactions with strategy and business model No entity-specific topics or disclosures have been identified. Material impacts, risks and opportunities and their interaction with strategy and business model Material IRO’s mainly relate to NNIT’s core business activities and own operations, and our ability to deliver and perform IT services and products, impacting or being influ- enced by clients, end-users and employees. Given their close connection to our busi- ness model, most are actively managed within our operations, including IRO’s related to business conduct and own work- force. Relating environmental IRO’s, NNIT has the ability to influence our value chain by strengthening procedures and policies in procurement and waste management. All material impacts, risks and opportunities are presented on the following pages along- side time horizon, type of IRO (negative/ positive impact, risk or opportunity) and mapping to value chain. More details on material impacts, risks and opportunities, including their affect on people and/or envi- ronment can be found in the topic specific sections of this Sustainability Statements. Climate change mitigation Greenhouse gas emissions from both the value chain and our own operations have a negative impact. Emis- sions across Scope 1, 2, and 3 affect the environment and communities globally. Negative impact Material impacts, risks and opportuni- ties (IRO’s) identified during the double materiality assessment are described and presented in the following tables alongside the topic standards E1 Climate change, S1 Own workforce, S4 Consumers and end-users and G1 Business conduct in this Sustainability Statements. No significant investments are required to implement the sustainability aspects of the strategy, and our operating model is fully aligned with it. As a result hereof, we are convinced that we will be able to follow the sustain- ability elements of the strategy and keep the sustainability elements of the strategy aligned with stakeholder expectations. For more information on the action plans related to material impacts, risks and opportunities, refer to SBM-3 sections A competitive advantage arises from Science-Based Targets-approved near-term CO2e reduction goals for Scope 1 and 2. Further benefits could be realized through the expansion of ambitious emission reduction targets for Scope 3. Opportunity Risk Failing to meet customer expectations regarding credible decarbonization plans and emission reduction targets poses the risk of being excluded from future tender processes. Energy Energy consumption in our own operations is primarily limited to office premises, as NNIT is a consulting company without data centers, manufacturing, or production facilities. Negative impact Energy consumption within the value chain includes the energy use of associates and partners, along with their energy mix. However, the impact is considered limited due to the requirement for partners and associates to use renewable energy certificates. Negative impact The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 51 S1 – Own Workforce S1 – Own Workforce (continued) IRO Location in VC Time horizon IRO Location in VC Time horizon Working Conditions Equal treatment and opportunities for all The inability to execute strategic growth objectives may arise from challenges in attracting and retaining highly qualified and experienced talent due to a talent shortage. Specific competencies are essential for growth and value delivery. Recruiting professionals with exper- tise in IT, artificial intelligence, data, and transformation - particularly those with hands-on experience - remains a significant challenge. Gender equality and equal pay for work of equal value present both risks and opportunities for NNIT. Recog- nizing their ethical and organizational importance, NNIT embraces diversity to access a broader talent pool, driving innovation and creativity. Risk Risk Training and skills development are central to NNIT's operations. This is achieved through a combination of job-specific training and on-the-job learning via collaborative teamwork. The high volume of training hours in 2023 reflects NNIT's dedication to empowering employees. A commitment to providing equal training opportunities at all levels ensures skill development and career growth for everyone. Good working conditions and employee well-being, including appropriate working hours, are crucial for NNIT. Employee well-being directly influences motiva- tion and performance. Positive impact Positive impact Increased costs associated with difficult recruitment and retention, especially in markets with higher turnover rates, pose a threat to NNIT. Risk Focusing on DEI creates financial opportunities for NNIT, including talent attraction, retention, and innovation. Gender equality and equal pay present both risks and opportunities, with gender imbalances in the field. NNIT embraces diversity to drive innovation, elevate women in IT, and access broader talent, while mitigating reputa- tional and legal risks. Good working conditions and employee well-being, including a strong work-life balance, are crucial for NNIT. Work-life balance and overall job satisfaction enhance employee performance and increase future employees' willingness to join NNIT. Opportunity Positive impact Employee stress and illness can be greatly affected by working conditions, with stress and mental health issues leading to significant consequences for employees. Negative impact The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 52 S4 – Consumers and end-users G1 – Governance IRO Location in VC Time horizon IRO Location in VC Time horizon Social inclusion of consumers and/or end-users (non-discrimination) Corporate Culture NNIT's digital solutions prioritize patient and end-user health, safety, and inclusion by avoiding discrimination. We provide specialized IT consulting to the public sector A poor corporate culture can affect people and the environment across geographies, depending on where the shortcomings occur. While such negative impacts are possible, they are uncommon. Negative impact Positive and life sciences globally, focusing on industries where impact quality of life is critical. Our solutions ensure public institutions meet requirements, enabling access for all citizens regardless of age, illness, or disability. Protection of Whistleblowers Failing to protect whistleblowers can result in significant fines and exclusion from tenders due to mishandling the situation in violation of expectations and global stand- ards for protecting human rights. Social inclusion of consumers and/or end-users (access to products and services) Risk Risk NNIT’s digital solutions ensure patient and end-user health, safety, access, and inclusion. Across all Positive geographic locations, NNIT focuses on the life sciences impact Corruption and bribery and healthcare sectors, delivering solutions that posi- tively impact communities worldwide. Incidents of corruption, bribery, or failure to uphold competition laws can result in significant fines and exclusion from tenders due to violations or misinter- pretations of global business standards, such as the UN Global Compact. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 53 Environment E1 Climate Change Page E1-1 Transition plan for climate change mitigation 54 55 ESRS 2 Material impacts, risks and opportunities and their interaction with strategy and business model SBM-3-E1 ESRS 2 IRO-1-E1 Description of the processes to identify and assess material climate-related impacts, risks and opportunities 55 E1-2 E1-3 E1-4 E1-5 E1-6 Policies related to climate change mitigation and adaptation Actions and resources in relation to climate change policies Targets related to climate change mitigation and adaptation Energy consumption and mix 56 57 58 59 60 Gross Scopes 1, 2, 3 and Total GHG emissions The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 54 E1 Climate Change E1-1 The Carbon Reduction plan highlights the following areas and key actions for decarbonization: Transition plan for climate change mitigation NNIT has established a Carbon Reduction Plan for 2030, incorporating near-term targets validated by the Science Based Targets initiative (SBTi) and aligned with the goals of the Paris Agreement. While the current transition plan is not yet fully aligned with CSRD requirement, NNIT is committed to enhancing our approach to ensure compliance and transparency before 2025. Higher accuracy with activity-based reporting instead of spend-based reporting Transformation of fossil fueled company car fleet from fossil fueled to purely electric Enforcing Energy optimization of office sites stronger demands on our upstream supply chain Our commitments to carbon reduction – as outlined in the Carbon Reduction Plan – is considered as part of the annual business strategy update process, and consequently our financial planning and operation. SBTi validated targets 90% 42 % 47 % Reduce absolute scope 1 GHG emissions 90% by 2029 Reduce absolute scope 2 GHG emissions 42% by 2030 Reduce absolute scope 3 GHG emissions 47% by 2029 Purchased goods and services and upstream transportation and distribution The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 55 ESRS 2 SBM-3 Impact, risk and opportunity management Material impacts, risk and opportunities and their interaction with strategy and business model ESRS 2 IRO-1 Description of the processes to identify and assess material climate-related impacts, risks and opportunities The double materiality assessment described in IRO-2 identified the following material impacts, risks and opportunities related to climate change in the short, medium and long term: No physical risks referring to direct impacts of climate change on NNIT’s operations and business model have been identified as material. As a bound to impacts of climate and weather events on office locations and potential disruptions to employees’ ability to travel or work. No NNIT locations are under material risk due to climate-related weather events, and NNIT employs a highly flexible remote work policy, in addition to all IT infrastruc- ture being cloud driven. During NNIT’s process of developing the double materiality assessment, Carbon Reduction plan, risk management and submitting our near-term targets to the Science-Based-Targets Initiative, we have analyzed our operations and value chain. NNIT operates in low risk environments, is asset-light and, therefore, no physical climate risks have been assessed to signif- icantly impact our business. This includes no actual or potential impacts, risks or opportunities identified in relation to NNIT’s locations and activities for pollution, biodi- versity, water and the ecosystem. NNIT. In previous years the second-opinion provider Sustainalytics has rated NNIT as low-level risk. With an increased focus on climate-related impacts, risks and oppor- tunities, environmental risks will continue to be assessed in risk management and in double materiality assessments. Future assessments, including for 2025 reporting, will involve the use of climate-related • Negative impact from greenhouse gas emissions from value chain and own operations • Negative impact from energy consump- tion in value chain and own operations • Opportunity to gain competitive advan- tage from Science Based Targets-ap- proved near-term Co2e-reduction targets NNIT considers itself resilient to scenarios, which have not been methodo- logically applied for this reporting period. climate-related impacts, but we acknowl- edge that we have fewer insights into potential risks in our value chain that could have indirect consequences for NNIT. However, we consider this risk low to our strategy and business model and will continue to assess physical and tran- sition risks and their anticipated financial effects in future reporting. • Risk of not living up to costumer expec- tations with respect to credible decar- bonization plans and emission reduc- tion targets The risk overview is included in the Annual Report on page 24-26 (Risk Management, ESRS 2 GOV-2), and risks are ongoingly discussed with the Board of Directors and the Audit Committee. While climate-related risks have been considered as part of risk management, it is not deemed material for NNIT is actively engaging in reducing emissions and energy consumption and seizing the identified opportunity to alle- viate the financial risk. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 56 E1-2 Policies related to climate change mitigation and energy Policies and related to climate change mitigation and adaptation NNIT makes a mark on business and society; bringing digital transformation to life. This is NNIT's aspiration and the core of everything we do, also in terms of sustainability and ESG. As part of our UN Global Compact commit- ment, we focus on Sustainable Develop- ment Goal 12, Responsible Consumption and Production. This means we are always looking for ways to further minimize our impact on the environment. This is true from a central (global) point of view as well as more regional and local point of view – corresponding to our geographical footprint across Europe, USA, Asia and Denmark. reduce our footprint over time. The certif- icates are obtained for our HQ in Copen- hagen, Denmark and our head office in Tianjin, China. and Science Based Targets) and anti-cor- ruption. In 2023, our Sustainability and ESG Policy was revised, and a new Global Facilities Policy was produced to continually optimize our energy and water consump- tion. The Global Facilities Policy governs investments in and management of NNIT office buildings with a view to continually optimize energy and water consumption, providing optimal working conditions for employees. Energy-saving initiatives are to be implemented wherever possible, and depend on the building in question, its location and use. supports NNIT in addressing material impacts, risks and opportunities. NNIT’s stakeholders are encouraged to take NNIT’s work within sustainability and ESG into consideration when deciding to do business with NNIT, and all reports on Sustainability and ESG from NNIT are publicly available on our website. Vice versa, NNIT asks suppliers to comply with the same principles as NNIT does. All sustainability and ESG policies are approved by the NNIT Board of Directors and the NNIT Management group. ꢂFindꢁallꢁNNITꢁcertificationsꢁhere NNIT guide and creates awareness around our environmental efforts first and fore- most via our global policies outlining our commitment and requirements. NNIT poli- cies on climate change mitigation and adap- tation, are anchored in our Sustainability and ESG Policy. This policy describes how we work with material impacts, risks and opportunities, and covers topics of labor rights, labor practices, working environ- ment, environment (including CO2 emission reductions, renewable energy consumption, environmental protection, carbon footprint Our commitment to best practice environ- mental management is demonstrated by our ISO 14001:2015 certification obtained January 2023. This certification relates to our Environmental Management System that has been implemented into our Quality Management System and focuses on our behavior, processes, and policies ensuring that we continue to act responsibly and ꢂꢁFind Sustainability and ESG-related policies here The purpose of the Sustainability and ESG Policy is to instruct all NNIT employees to make the right decision in their roles as part of a conscious-driven company, and applies to NNIT’s management and employees on all NNIT locations globally. The policy The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 57 E1-3 Actions and resources in relation to climate change policies In 2023, NNIT divested its infrastructure operations business and data centers, leading to a significant change and decrease in emissions. Moving forward as a pure consulting company, NNIT will continue to focus on reducing emissions from own operations. As described in relation to the transition plan (see E1-1), the Carbon Reduction plan high- lights the following areas and key actions for decarbonization with target years 2029 and 2030: transitioned to purely electric. This action is expected successful completion in 2025, and will reduce emissions from business travel. by 47%. This action is founded in the policy Responsible Sourcing Standards. Achieved CO2e-emission reductions are not available, as comparable numbers from prior reporting are not disclosed due to difference in CO2e-reporting scope. • Energy optimization of office sites NNIT is and will purchase green energy from certified green sources for all loca- tions in Denmark, and continuously works to explore opportunities for optimized processes leading to less energy consump- tion. These key actions are embedded into NNIT business strategy and are not currently assessed as dependent on additional resource allocation. • Higher accuracy with activity-based reporting instead of spend-based reporting NNIT will focus on making GHG accounting more accurate to track progress on emis- sion reduction targets. • Enforcing stronger demands on our upstream supply chain • Transformation of fossil fueled company car fleet from fossil fueled to purely electric This decarbonization lever is regarding our scope 3 emissions, committing NNIT to reduce absolute scope 3 GHG emissions from purchased goods and services and upstream transportation and distribution As the main direct emission source, the company car fleet will be reduced and The Bigger Picture Sustainability Statements Financial Statements 58 E1-4 Our validated near-term climate action targets: Targets related to climate change mitigation and adaptation GHG-emission targets In 2024, the Science Based Targets Initiative validated the emission reduction targets submitted by NNIT, with official near-term targets for scope 1 and 2 in line with a 1.5C trajectory. 90% 42% 47% Reduce absolute scope 1 GHG emissions with 90% by 2029 from a 2023 base year. Reduce absolute scope 2 GHG emissions with 42% by 2030 from a 2023 base year. Reduce absolute scope 3 GHG emissions from purchased goods and services and upstream transportation and distribution with 47% by 2030. SBTi has approved three near-term targets based on relevant sector-specific guidance, in line with the IPCC special report 1.5C trajectory. NNIT commits to reduce abso- lute scope 1 GHG emission 90% by 2029 from a 2023 base year. NNIT also commits to reduce absolute scope 2 GHG emissions 42% by 2030 from a 2023 base year. NNIT further commits to reduce absolute scope 3 GHG emissions from purchased goods and services and upstream transportation and distribution 47% within the same time- frame. A location-based approach is used to account for scope 2 emissions and to track performance. We are committed to setting long-term targets and to reach net-zero no later than 2050. ness/inventory. NNIT has not made climate related targets in the past, and measure- ment of progress towards meeting targets in the past is not possible. Our decarbonization levers are mainly use of green energy. NNIT purchase green energy certificates, however, it does not have a quantitative contribution towards our achievement of our GHG emission reduction target, as we still report on the energy usage and the amount of CO2 this equivalates to. For scope 1, the largest quantitative contribution in reducing emissions is expected from transition of company car fleet, and for scope 3 our focus in on enforcing stronger demands on our supply chain. No combined targets for scope 1, 2 and 3 have been submitted to and validated by SBTi, and therefore a combined target is not disclosed. The SBTi’s Target Validation Team has classified NNIT A/S' scope 1 and 2 target ambition and determined it is in line with a 1.5C° trajectory. SBTi near-term targets validation report The Science Based Targets initiative (SBTi) is a collabora- tion between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). The SBTi defines and promotes best practice in science- based target setting and independently assesses companies’ targets. We will continue to align our reduction targets with the inventory boundaries if any significant changes are made to our busi- The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 59 NNIT is committed to reporting on the progress against these targets on an annual basis, through GHG emission reporting. In addition, NNIT is committed to review our targets within five years, and if necessary, recalculate and revalidate for continued recognition by the SBTi. E1-5 Energy consumption and mix Since May 2023 NNIT has been a pure IT consulting company following the sale of the infrastructure business (data centers etc.). The current business and value streams are described on page 49. Our energy usage primarily includes electricity, but also includes other direct energy consump- tion like fuels used for company car fleet. Renewable energy is purchased through Guarantees of Origin (GoO) and Renewable Energy Certificates (REC) in Denmark. 52% of the electricity consumption (Danish NNIT locations) is covered by Renewable Energy Certificates. Following the NNIT Global Facilities Policy, measures to support reductions in energy consumptions are to be implemented wher- ever possible. ꢂFindꢁNNIT'sꢁGlobalꢁFacilitiesꢁPolicyꢁhere tCO2e reduction delivered Reduction target is 42% from 2020 to 2030 tCO2e emissions from NNIT in 2023 (baseline year per SBTi submission) by NNIT in 2030 per our carbon reduction plan (scope 1 in 2029) For details on accounting policies for energy, refer to E1 Accounting policies on page 62-63. 95 Scope 1 Scope 2 Scope 3 106 2,222 (90% reduction) 934 (42% reduction) 5,085 (47% reduction) 10,760 Energy consumption and mix 2024 1,205 23.25% 106 Total fossil energy consumption (MWh) Share of non-renewable energy consumption % Consumption from nuclear sources (MWh) Share of consumption from nuclear sources in total energy consumption % 2.05% Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) 3,979 3,979 Total renewable energy consumption (MWh) Share of renewable sources in total energy consumption % Total energy consumption (MWh) 76.75% 5,184 The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 60 E1-6 Greenhouse gas emissions tCO2eq 2024 Gross Scopes 1, 2, 3 and Total GHG emissions Scope 1 GHG emissions Gross Scope 1 GHG emissions 15.2 Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%) Scope 2 GHG emissions 0.0% Gross location-based Scope 2 GHG emissions Gross market-based Scope 2 GHG emissions Significant scope 3 GHG emissions Total Gross indirect (Scope 3) GHG emissions 1 Purchased goods and services 2 Capital goods 615.4 617.2 GHG-emissions ations, and has found the relevant scope 3 categories to report on. See appendix I on page 64 for full overview of development in scope 3 emissions reporting. Scope 3 emissions accounts for 96.4% of the total emissions. In 2024, we continued to develop our methods of monitoring and measuring our emissions following the prescriptions of the Greenhouse Gas Protocol. 17,067.9 14,948.5 - 3 Fuel and energy-related Activities (not included in Scope1 or Scope 2) 4 Upstream transportation and distribution 5 Waste generated in operations 6 Business travel 280.4 - We have collected Scope 1, 2 and 3 emis- sion data since 2021. The methodologies and significant assumptions used to calcu- late and measure NNIT’s GHG emissions are provided in the accounting policies on page 62-63. 175.9 427.3 NNIT does not have any GHG removals or GHG mitigation projects financed through carbon credits and does not apply internal carbon pricing schemes in its business. 7 Employee commuting 735.6 8 Upstream leased assets 336.1 9 Downstream transportation - 10 Processing of sold products - 11 Use of sold products - 12 End-of-life treatment of sold products 13 Downstream leased assets - 164.2 - Scope 1 includes direct emissions from own operations, and involves NNIT’s company car fleet. Scope 2 includes electricity and heating consumption in NNIT’s offices. Scope 1 and 2 accounts to 3.6% of our emissions. During our process of producing a carbon reduction plan and submitting our near-term targets to the Science-Based-Tar- gets Initiative, we have analyzed our oper- 14 Franchises 15 Investments - Total GHG emissions 17,698.5 17,698.5 17,700.3 Total GHG emissions (location-based) Total GHG emissions (market-based) The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 61 GHG-emission intensity GHG intensity per net revenue Net revenue used to calculate GHG intensity amounts to 1,851 million DKK in 2024, and the GHG intensity is calculated based on gross scope 1, 2 and 3 emissions divided by reported net revenue. 2024 9.6 Total GHG emissions (location-based) per net revenue (tCO2eq/DKK million) Total GHG emissions (market-based) per net revenue (tCO2eq/DKK million) 9.6 Biogenic CO2-emissions Biogenic emissions of CO2 from the combustion or biodegradation of biomass have been estimated for scope 1, 2 and 3. GHG Scopes tCO2e Scope 1 Scope 2 Scope 3 8.7 409.2 11,523.0 The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 62 E1 Accounting policies E1-5 Energy consumption and mix E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions NNIT remains committed to improving the accuracy and scale of our data and reporting in close collab- oration with our advisory partners CDP, CEMAsys, and SBTi – and in accordance with the Greenhouse Gas Protocol (GHG Protocol). We do our best to ensure that the activity data we collect is complete and based on actual data, e.g. invoices, meters, fuel cards. If this is not possible, we rely on estimations. November and December 2024 has been calculated based on the average from the first 10 months, and subsequently calculated for emissions in CEMAsys. NNIT locations with fewer than 100 employees do not report on procurement data, and extrapolations and assumptions have been applied to report on emissions for NNIT’s total headcount. As a result, 41% of total headcount is covered by extrapolation, while the remaining 59% is based on direct data. employees, while smaller locations are extrapolated for based on relevant assumptions based on head- count and geographical location. The figures for own operations are based on utility activity data and documentation from suppliers, in addition to estimations. NNIT’s energy consump- tion in own operations forms the input to scope 1 and 2 and covers energy consumption based on fossil sources, electricity consumption and heating across locations. Energy data is collected from utility invoices, supplier reports and internal tracking systems. Where supplier-specific data is unavailable, national grid mix data from IEA (latest available dataset) is used to estimate energy mix by location. Location-based emissions are calculated by using average emission factors for the regional or national energy grid, to reflect the energy mix of the specific area of consumption and does not consider purchases of renewable energy. Loca- tion-based emissions are calculated using CEMAsys by matching data points (MWh usage) with 2024 IEA location-based emissions factors. For the 2024 GHG emissions, all figures have been audited by external auditors with limited assurance. As the organizational scope included in our emis- sion reporting has changed from previous Sustaina- bility Statements, comparable emissions from prior reporting years are unavailable and not presented. Gross Scope 1 GHG emissions Scope 1 emissions refer to direct emissions from sources owned or controlled by NNIT, and relevant inventory relates to company car fuel consumption. Company cars are identified in procurement and HR systems and data is collected and reported in CEMAsys. The scope 1 CO2e is calculated as combusted fuel type * conversion factor per fuel type. To calculate the emissions, conversion factors from DEFRA (2024) were applied by CEMAsys. Direct fuel consumption relates to NNIT’s company car fleet. Fuel consumption is recorded as spend and liters consumed and converted to MWh using CEMAsys Co2e-accounting system. Energy from renewable sources covers electricity and heating for office activities. A location-based approach has been applied, meaning national grid mix data has been used to estimate the share of renewable and non-renewable energy in NNIT’s global consump- tion. Data on energy consumption and mix is only available for the ten first months of the accounting year, and an estimate of activity is extrapolated for the remaining two months. For future reporting, NNIT is committed to prioritize collecting data from vendors and suppliers to improve data accuracy and obtain market-based energy data for all location, reducing reliance on location-based estimates. Market-based emissions are calculated in a similar way, with matching data points to market-based emissions factors in CEMAsys. Renewable energy purchases are considered when using the market- based approach, and IEA 2024 emissions factors are applied in CEMAsys. NNIT carbon footprint is reported in Co2-e equiv- alents, based on data from internal and external systems, and calculated following the GHG Protocol using the third-party system CEMAsys. NNIT does not have any emissions related to CH4, N2O, HFC, PFC, HF6, or NF3. Data is manually collected and reported into CEMAsys, and categorized across variables such as scope country, unit, currency, in addition to notes on how many months the original, un-extrapolated data covers. Consequently, the system applies an emission factor for each data point to calculate the CO2e-emission. Gross Scope 3 greenhouse gas emissions Scope 3 includes indirect emissions from NNIT’s activities in the value chain. Scope 3 comprises 15 categories, of which NNIT reports on 7. Data is a mix of spend-based and activity-based. Data is collected for NNIT’s four locations included in the GHG emis- sions accounting, extrapolated for and consolidated for input to CEMAsys. Accounting practices for the reported categories are as follows: Gross location- and marked- based Scope 2 GHG emissions Scope 2 emissions are indirect GHG emissions from the generation of power and heat purchased and consumed by NNIT. Data is calculated following both the location-based and market-based approach, while NNIT’s SBTi targets are based on the loca- tion-based approach. Scope 1 and 2 data is available for January till October 2024. Extrapolation to obtain data for Direct data on energy use is collected from office facilities from locations with more than 100 The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 63 E1 Accounting policies 3.1 Purchased goods and services extrapolation. No significant difference in waste patterns across regions has been identified and extrapolation is based on headcount covered for each waste category. The extrapolated and direct data is consolidated in CEMAsys, where appropriate emission factors are applied. calculation is based on a template developed by CEMAsys, which incorporates the following key inputs: 3.13 Downstream leased assets Procurement data is collected from NNIT locations Denmark (excl. subsidiaries), Czech Republic, the Philippines and China. The share of direct data for this category is 59%. To extrapolate, the assump- tion of highly similar business activities across locations is made. However, regional preferences and consumption patterns is assumed, and this extrapolation is made based on geographical regions, divided between region 1 (Asia) and region 2 (Europa and US) using existing data. Extrapo- lated data is entered into CEMAsys for calculations using emission factors deemed appropriate by the system. Emissions related to downstream leased assets comprise NNIT’s sublease of the previous head- quarter location to other entities, and data relates to electricity and water consumption from Danish location only with direct data. Activity data has been processed in CEMAsys by applying appropriate emissions factors from DEFRA and Energinet. • • Types of transportation modes Daily commuting distance (km for all locations except the USA, where miles are used) Number of working days per year Percentage distribution of transportation mode usage • • 3.6 Business travel Emissions are calculated using a spend-based approach in CEMAsys. For the NNIT locations China, Czech Republic and the Philippines, emissions are reported based on supplier-specific data from travel agencies who supply emission calculations. For DK, UK, Ireland, Italy, Poland, Germany, Switzerland and Spain, flight records from travel agencies were used to determine Co2e-emissions for all recorded travel activity by using DEFRA emission factors in CEMAsys. For US and Singapore locations in addi- tion to subsidiaries, extrapolation was made based on the assumption that travel activity across loca- tions will be similar. . The share of direct data for this category is 69%. Emissions from direct and extrapo- lated data is calculated in CEMAsys. • Total number of employees Biogenic emissions To calculate biogenic emissions, the UK Govern- ment’s emission factors for company reporting (DEFRA) on biogenic emissions have been used. Scope 1 and 2 are, respectively, calculated by applying biogenic emission factors for diesel usage, electricity, and district heating. Using reported biogenic emissions from Scope 1 and Scope 2, Scope 3 biogenic emissions are estimated based on their proportional share of total biogenic emissions. Using these inputs, the total annual person-kilom- eters (pkm) traveled is calculated. Since no direct commuting data is available, NNIT relies on extrap- olated figures based on CEMAsys assumptions and internal research. A survey-based approach is being considered for future reporting to collect more precise data. 3.3 Fuel-and-energy-related activities Fuel and energy-related emissions not accounted for in scope 1 or 2 relates to indirect emissions associated with the production of purchased fuels and electricity. The share of direct data for this cate- gory is 59%. IEA country factors and DEFRA factors are used to calculate emissions using scope 1 and 2 data in CEMAsys. 3.8 Upstream leased assets Emissions are related to assets NNIT leases from another entity , that are not included in scope 1 and 2. Data covers warehousing, machinery and leased electrical equipment, and only relates to Danish location. No extrapolation has been performed, as reporting is only applicable to Denmark. Spend- based data provided by procurement is calculated with EPA (2024) emission factors in CEMAsys. 3.5 Waste generated in operations 3.7 Employee commuting Waste data is collected from NNIT locations Denmark (excl. subsidiaries), Czech Republic, the Philippines and China. The share of direct data for this category is 59%. Emissions are calculated using the consolidated data to provide an esti- mated CO2e-emission for all NNIT locations through Emissions related to employee commuting are indirect, generated from the transportation of employees between homes and work locations. NNIT has estimated employee commuting emissions using a country-specific average per employee. The The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 64 Appendix I Development in Scope 3 Emissions Reporting 2022-2024 Category Definition 2024 2023 2022 Comments 1. Purchased goods and services 2. Capital goods Production of products and services purchased or acquired Final products that have an extended life and are used to manufacture a product or provide a service To a wide extent, NNIT uses personal computers and other digital devices to provide IT consultancy services. NNIT has not been able to collect data for potential reporting in 2024 but will investigate how data can be collected for 2025 reporting. 3. Fuel-and-energy-related activities Production of fuels and energy purchased and consumed 4. Upstream transportation and distribution Transportation and distribution of products NNIT does not report directly on its scope 3.4 activities. However, its SBTi-validated CO2e emission reduction targets do include scope 3.4, as these emissions are accounted for under NNIT’s scope 3.1 category. 5. Waste generated in operations 6. Business travel Third-party disposal and treatment of generated waste Transportation of employees for business-related activities in vehicles owned or operated by third parties 7. Employee commuting 8. Upstream leased assets Transportation of employees between their homes and their worksites Operation of leased assets 9. Downstream transportation and distribution Transportation and distribution of sold products in vehicles and facilities not owned or controlled In its capacity as an IT consultancy, NNIT does not produce or sell any tangible goods to be transported or distributed. In its capacity as an IT consultancy, NNIT does not produce, process or sell any tangible goods. 10. Processing of sold products Processing of sold intermediate products by third parties (e.g., manufacturers) subsequent to sale 11. Use of sold products Use of goods and services sold In its capacity as an IT consultancy, NNIT does not produce or sell any tangible goods. However, we do recognize that the ultimate use and/or operation of our IT consultancy and development services may result in emissions. Due to immature and unsatisfactory data, we are unable to report on this category in 2024. 12. End of life treatment of sold products Waste disposal and treatment of products sold at the end of their life In its capacity as an IT consultancy, NNIT does not produce or sell any tangible goods. 13. Downstream leased assets Emissions from the operation of assets that are owned and leased to other entities With the divestment of the IT infrastructure operations in April 2023, NNIT divested all owned and leased data centers. However, throughout 2023 and part of 2024, we sublet part of our leased headquarter building to other entities. This activity cased during 2024, and NNIT expect to omit reporting on this category in future reporting. 14. Franchises Operation of franchises NNIT does not operate through any franchises. 15. Investments Emissions associated with investments NNIT is 100% asset light and does not own any building, production facilities or the like. NNIT only invests in the acquisi- tion of similar companies (IT consultancies). No such investments were made in 2024. Total 7/15 7/15 6/15 The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 65 EU Taxonomy In 2024, we identified eligible economic activities based on the six published environ- mental objectives. In 2024, we have additions to leasehold premises which is based on our annual review of economic activities defined in the regulations against our company activities and related financial transactions, we identified three new economic activities to report on in 2024: waste, and general waste management for being taxonomy-aligned. Although we have made progress in fulfilling the technical screening criteria, certain requirements have not been fully met. Consequently, the existing projects do not meet the criteria for align- ment in 2024. repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings) in 2026. The EU Taxonomy is a regulatory framework introduced by the European Union as a tool to aid in the transition towards a greener and more sustainable economy. As an IT service provider who can contribute to a sustainable transformation journey of its clients, at NNIT, we plan to perform an annual review of our economic activities and related financial transactions and further plan to add more activities that have potential scope of reporting when fully reviewed. This section has been prepared in accord- ance with the requirements of Articles 8 of the Taxonomy Regulation (EU) 2020/852 (EU Taxonomy Regulation). The eligible activities were not reported in NNIT’s 2023 Annual Report, as at the time those were deemed not eligible. However, in 2024, the company conducted a more in-depth eligibility screening and concluded that these are eligible. Therefore, in 2024, NNIT has restated 2023 data, including all Group’s activities, in order to provide comparative information for 2024 data. This restatement has also included the review of data related to activity 8.1 of climate change mitigation, which is shown in the mandatory reporting tables for the 3 KPIs. EU Taxonomy eligibility and alignment We have screened the Climate Delegated Act, Amendments to Climate Delegated Act, Complementary Delegated Act and Envi- ronmental delegated Act to conclude the reporting of eligible activities according to disclosure requirements. We refer to Disclo- sure Delegated Act 2021/2178 which provides information on KPI reporting. 7.7.ꢂAcquisition and ownership of buildings NNIT exercises ownership of real estate in the form of office buildings across the group. 6.5. Transport by motorbikes, passenger cars and light commercial vehicles NNIT leases vehicles for its employees. In April 2023 we sold the Infrastructure busi- ness, reported under 8.1 Data processing, hosting and related activities in 2023 for the period prior to the divestment. In 2024 no activity is reported under 8.1 as we have no Taxonomy-eligible activity for 8.1 left. These two eligible activities are towards environmental objective of ‘Climate Change Mitigation’. These activities have been further assessed to see if they meet ‘Substantial Contribution’ and ‘DNSH’ criteria relating to climate-related hazards, water use, hazardous In 2025, NNIT, is planning on investing in charging stations for electric vehicles, which will have the potential to be eligible under activity 7.4 Installation, maintenance and The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 66 Turnover Financial year 2024 Substantial Contribution Criteria DNSH Criteria ('Does Not Significantly Harm') Economic Activities (1) DKKm % Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T A. Taxonomy-eligible activities A.1. Environmentally sustainable activities (Taxonomy-aligned) Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1) 0% 0% Of which Enabling E Of which Transitional T A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL Transport by motorbikes, passenger cars and light commercial vehicles 6.5 CCM 7.7 CCM 0 0% EL N/EL N/EL N/EL N/EL N/EL 0% Acquisition and ownership of buildings 0 0 0% 0% EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL 0% 5% Data processing, hosting and related activities 8.1 CCM N/EL Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) 0 0 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 5% 5% A. Turnover of Taxonomy eligible activities (A1 + A2) B. Taxonomy-non-eligible activities Turnover of Taxonomy-non-eligible activities Total (A+B) 1,851 1,851 100% 100% * This activity is no longer eligible for NNIT because the company sold its data center in 2023. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 67 CapEx Financial year 2024 Substantial Contribution Criteria DNSH Criteria ('Does Not Significantly Harm') Economic Activities (1) DKKm % Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T A. Taxonomy-eligible activities A.1. Environmentally sustainable activities (Taxonomy-aligned) CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) 0% 0% Of which Enabling E Of which Transitional T A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL Transport by motorbikes, passenger cars and light commercial vehicles 6.5 CCM 7.7 CCM 8.1 CCM 4.14 122.77 - 2% 60% 0% EL EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL 0% 0.6% 0% Acquisition and ownership of buildings Data processing, hosting and related activ- ities N/EL CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) - 62% 62% 62% 62% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0.6% 0.6% A. CapEx of Taxonomy eligible activities (A1 + A2) 126.91 B. Taxonomy-non-eligible activities CapEx of Taxonomy-non-eligible activities Total (A+B) 77.18 38% 204.09 100% * The difference between the porportion of eligible capEx for activity 7.7CCM is due to the investments in new leases in 2024 in various locations across the Group. ** This activity is no longer eligible for NNIT because the company sold the Infrastructure business, reported under 8.1 CCM The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 68 OpEx Financial year 2024 Substantial Contribution Criteria DNSH Criteria ('Does Not Significantly Harm') Economic Activities (1) DKKm % Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T A. Taxonomy-eligible activities A.1. Environmentally sustainable activities (Taxonomy-aligned) OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) 0% 0% Of which Enabling E Of which Transitional T A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL EL;N/EL Transport by motorbikes, passenger cars and light commercial vehicles 6.5 CCM 7.7 CCM 8.1 CCM 0 0 0 0% 0% 0% EL EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL N/EL 0% 0% 0% Acquisition and ownership of buildings Data processing, hosting and related activities N/EL OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) 0 0 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% A. OpEx of Taxonomy eligible activities (A1 + A2) B. Taxonomy-non-eligible activities OpEx of Taxonomy-non-eligible activities Total (A+B) 19.38 19.38 100% 100% The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 69 Proportion of Turnover/ Total Turnover Nuclear and fossil gas related activities Sr. No. Nuclear energy related activities Replies Taxonomy aligned Taxonomy eligible per objective % per objective % Nuclear energy related activities The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of Climate Change Mitigation 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. Climate Change adaptation Water 1 2 3 No No The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. Pollution Circular Economy Biodiversity The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. No No Fossil gas related activities The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities Proportion of CapEx/ Total CapEx 4 5 6 that produce electricity using fossil gaseous fuels. No No No Taxonomy aligned Taxonomy eligible The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. per objective % per objective % The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat genera- tion facilities that produce heat/cool using fossil gaseous fuels. Climate Change Mitigation Climate Change adaptation Water 0% 0% 0% 0% 0% 0% 62% 0% 0% 0% 0% 0% Pollution Circular Economy Biodiversity Proportion of Opex/ Total OpEx Taxonomy aligned Taxonomy eligible per objective % per objective % Climate Change Mitigation Climate Change adaptation Water 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Pollution Circular Economy Biodiversity The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 70 EU Taxonomy Accounting policies Accounting principles - Revenue eligible Total Turnover consists of total revenue from the sale of goods and services, as defined under IFRS. The Turnover KPI is defined as Taxonomy-eligible Turnover divided by total Turnover, see Revenue on page 113. Research and development (R&D); building renova- tion measures; maintenance and repair, and other direct costs related to ensuring the day-to-day oper- ations and servicing of assets of property, plant, and equipment (including leases), including services outsourced to a third party that are principally related to an asset and are necessary to ensure the continued and effective functioning of such assets. OpEx excludes amortizations, depreciation and impairments. All operational expenditures related to our eligible activities are immaterial. Therefore, NNIT is reporting 0% eligible OpEx. None of our activities contribute to multiple objec- tives and hence do not require disaggregation of KPI’s. and compliance programmes and measures for preventing and detecting bribery. Please refer to our business ethics code of conduct policy. Minimum safeguards over EU Taxonomy reporting The minimum safeguards are built on four essential pillars: human rights, taxation, corruption, and fair competition. These pillars underscore the EU’s dedi- cation to promoting responsible and sustainable economic practices. Taxation We adhere to our established tax risk management process outlined in our Tax Policy to ensure compliance with tax laws. See Note 2.6 of the Financial Statements for further information on our Income Taxes. Accounting principles - Capex eligible Total CapEx consists of additions to tangible and intangible assets during the financial year consid- ered before depreciation, amortisation and any re-measurements, including those resulting from revaluations and impairments, for the relevant financial year and excluding fair value changes, refer to note 4.3. Additions resulting from business combinations are also included. Goodwill is not included in CapEx as it is not defined as an intan- gible asset in accordance with IAS 38. The CapEx KPI is defined as Taxonomy-eligible CapEx divided by total CapEx. Fair competition: Through regular internal training, NNIT seeks to continuously promote employees’ understanding and awareness of competition laws. NNIT, and its subsidiaries, is committed to conducting business in a responsible and upright manner and to respect human rights through our activities, in line with the NNIT Values. We endorse the principles of the UN Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines for Multina- tional Enterprises. We implement our commitment to these via our Code of Conduct, and other internal policies and procedures. Accounting principles - double counting Double counting has been avoided in the following way: Capex Activities incurring capitalized costs are taxonomy eligible as we do not have taxonomy- aligned Capex for 2024. Therefore, double counting in Capex has been avoided. For the numerator, NNIT includes additions to leased cars and long-term leases in accordance with IFRS 16, which are being capitalized, pertaining to activities 6.5 and 7.7 of climate change mitigation. For the CapEx and OpEx allocations and OpEx and CapEx denominators, the figures have been directly extracted from NNIT’s Enterprise resource plan- ning (ERP) system to ensure that the registrations are counted only once. This ensures avoidance of double counting. Human rights: The company is committed to conducting human rights due diligence (HRDD) as outlined in the UN Guiding Principles (UNGPs) and OECD Guidelines for Multinational Enterprises (MNEs). Accounting principles – Opex The denominator for opex corresponding to the requirements set out by the EU Taxonomy legis- lation is comprised of the following direct costs: Corruption: NNIT has in place an anti-corruption policy and adequate internal controls, ethics The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 71 Own Workforce S1 Own Workforce Page ESRS 2 SBM-2-S1 Interests and views of stakeholders 46 ESRS 2 SBM-3-S1 Material impacts, risks and opportunities and their interaction with strategy and business model 72 S1-1 S1-2 S1-3 S1-4 Policies related to own workforce 73-74 75 Processes for engaging with own workforce and workers’ representatives about impacts Processes to remediate negative impacts and channels for own workforce to raise concerns 76 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions 77-78 S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 79-80 S1-6 Characteristics of the undertaking’s employees Collective bargaining coverage and social dialogue Diversity metrics 81 82 83 84 84 85 85 S1-8 S1-9 S1-10 S1-14 S1-16 S1-17 Adequate wage Health and safety metrics Remuneration metrics (pay gap and total remuneration) Incidents, complaints and severe human rights issues The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 72 ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model We are a people-driven organization, and our employees are the foundation of our success. NNIT operates across multiple geographies, including Asia, Europe, and the United States. Employees work in diverse functions such as legal, Human Resource, finance, administration, and finally with IT solutions. To ensure compliance, NNIT considers and adheres to national laws when developing policies, aligning them with both local legis- lation and international standards, while also considering the different functions of our employees. ment and it is our CFO who is responsible for this. This was last done in November 2024. Therefore, NNIT’s Business Ethics Code of Conduct applies to all individuals who work for or represent NNIT. This includes direc- tors, officers, managers, employees, and associates worldwide, as well as all NNIT business units and subsidiaries. By doing so, we reduce the likelihood of adverse impacts on our workforce and remain an attractive workplace. Given the homogeneity of our worksites, NNIT has not identified specific groups of workers as being uniquely impacted. The identified risks are neither widespread or systematic – they are generally potential. Risks, impacts, and opportunities related to our workforce primarily revolve around two key themes: We strive to be an attractive workplace for both current employees and future talent. Employee perspectives play a vital role in helping us identify areas for improvement. Through various engagement channels - such as surveys and feedback sessions - we gather insights to enhance our workplace environment for the benefit of all our employees. NNIT is committed to managing risks related to working conditions and promoting equal treatment and opportunities for all employees. As a company reliant on a highly qualified workforce, it is essential to be an attractive workplace to retain talent. Mate- rial risks related to our workforce are inte- grated into our Enterprise Risk Management Process. It is our Head of Global HR who gives input to the Enterprice Risk Assess- • Working Conditions • Equal Treatment and Opportunities for All These themes affect all NNIT employees globally, underscoring the importance of maintaining a supportive and equitable work environment. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 73 S1-1 Policies related to own workforce anti-corruption efforts. By integrating these commitments into our business operations, NNIT aims to contribute positively to society and promote sustainable development. Also, our Responsible Sourcing Standard addresses safety of workers, precarious work, human trafficking, forced Labor, and child labor in line with ILO standards. Standards, state that all employment within NNIT and its supply chain must be voluntary. Additionally, workers must be at least 15 years old or meet the minimum age requirement set by national laws in the country of operation. At NNIT, we are dedicated to being an attractive workplace for our current employees and a desirable choice for potential future talent. Our policies, described in the following, and practices are designed to align with international labor standards. The polcies are implemented, regularly reviewed and updated by NNIT Management Group and approved by NNIT Board of Direc- tors ensuring an ongoing compliance and improvement. The Board of Direc- tors consists of three employee-elected members who provide the employee perspective when discussing business matters and updating policies. This helps ensure that policies do not result in nega- tive consequences for employees. Human and Labour rights Our approach to human rights and employee care is rooted in a commitment to fostering a respectful, inclusive, and supportive work environment as described in our Sustainability and ESG Policy. The management level participates in trainings as well as leadership networks where there is a specific focus on avoiding biases also in the development and imple- mentation of new policies. The training or inspirational talks take place once a quarter and involves external speakers to elucidate potential blind spots. In terms of labor rights, NNIT is dedi- cated to providing fair working conditions, including reasonable working hours, fair wages non-forced labor, no child labor, and the right to collective bargaining. We also emphasize the importance of health and safety in the workplace, ensuring that all employees have access to a safe working environment. We believe that every individual deserves to be treated with dignity and fairness, and we strive to uphold the highest standards of human rights in all our operations. This extends to our employees, customers, and the communities in which they operate. The company actively works to create a safe and inclusive work environment, free from harassment and discrimination. Our approach to addressing human rights impacts is to promptly investigate each case and engage the relevant parties. The approach ensures that we identify and implement appropriate remedial measures. As a global company, we recognize that the risks of forced and child labor may be higher in certain regions with a statistically By integrating these commitments into our business operations, NNIT aims to contribute positively to society and promote sustainable development. Policies are avail- able for all employees and those of interest on our website www.NNIT.com. In our Sustainability and ESG Policy, we adhere to international standards and prin- ciples, including the United Nations Global Compact and International Labor Organiza- tion’s convention no. 1554, which highlights the importance of human rights, labor standards, environmental sustainability, and greater prevalence of these issues1 . While Health and safety data indicates a higher likelihood of child labor in the Philippines, none of NNIT’s operations are at elevated risk for forced or child labor2. Our Sustainability and ESG Policy, along with our Responsible Sourcing At NNIT, ensuring a healthy working envi- ronment is crucial. Our Working Environ- ment Process addresses both physical and psychological conditions for all employees in NNIT. 1ꢁ Child Labor Statistics - UNICEF DATA 2ꢁ What industries are at risk for forced labor? The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 74 organization underlining the employees’ need for flexible working conditions. employees feel valued and a sense of be- longing. NNIT does not tolerate any form of discrimination, bullying, or abuse. All employees are required to report any witnessed or known instances of unaccept- able behavior by contacting HR or informing their direct supervisor or senior management. Report, historically this has been included in our annual Sustainability report. By 2030, we aim for at least 30% representation of both genders in the Board of Directors and Top Management Group. Additionally, our aim is that the underrepresented gender will hold at least 40% of positions at all management levels, and gender balance across the work- force will reach 40% representation for both men and women. The policy complies with local regulatory requirements and aims to minimize work barriers and organize work to prevent phys- ical and psychological issues. It includes inputs like the Workplace Assessment Ques- tionnaire (APV - in Denmark only), two annual eVoice surveys, and reports of working acci- dents, resulting in action plans and communi- cations regarding the working environment. Diversity and Inclusion At NNIT, we believe that a diverse workforce reflecting both our customers and the socie- ties we serve is crucial for driving growth and innovation. Our Diversity & Inclusion policy serves as a guide for our actions, ensuring we continuously monitor our progress. It outlines NNIT’s commitment to diversity and inclusion across our organization, aiming to create a work environment where all employees feel respected and valued, free from discrimination, bullying, Grounds for discrimination can be various and may be experienced differently from one person to another. Regardless, we want to eliminate any discrimination against (groups of) employees on the ground of age, religious beliefs, ethnicity, race, skin color, national and social origin, sexual orientation, disability, political views, education, profes- sional competencies, and other personal attributes. We focus on our employees’ competencies and contributions and on how we can grow our business by virtue of our differences. Key roles include the CEO, who oversees resources, Working Environment Represent- atives, who handle inquiries and assess- ments, and managers, who ensure safe working conditions and educate employees. Employees must report any inconveniences or accidents. To support and monitor these goals, employees are asked bi-annually to (anony- mously) assess their experiences regarding fair treatment, equal opportunities, and the inclusiveness of the work environment. This feedback helps us ensure that opinions and perspectives are valued and respected. or harassment. Diversity at NNIT involves creating a culture that respects and leverages individual differ- ences for the benefit of the organization. This includes a wide range of differences such as demographic factors, cultural diversity, and varied educational and professional backgrounds. We believe that these diverse perspectives and experiences are essential for fostering innovation and growth. Activities involve conducting workplace assessments, handling accidents promptly, performing regular inspections, and holding quarterly Working Environment Council meetings to manage tasks. Finally, we offer a comprehensive training and education program for our employees. The company provides a wide range of courses, certifications and leadership training to support professional devel- opment. This includes both internal and external training opportunities, ensuring that employees have access to the latest knowledge and skills in their respective fields including sustainability issues. NNIT empha- sizes continuous learning and encourages employees to pursue further education to enhance their expertise and career growth. Conditions in connection with employment must always be in accordance with the Act on Equal Treatment of Men and Women, the Act on Equality of Women and Men and the Discrimination Act. Our Remote Work Guidelines (created in 2021) allow employees to work from home to an extent found appropriate by each unit. The work from home policy supports the employees’ work-life-balance and has become widespread throughout our entire An inclusive work environment is a prerequisite for promoting diversity at NNIT. For us, this means cultivating a culture where We are committed to tracking and reporting our progress on diversity in our Annual The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 75 S1-2 Processes for engaging with own workforce & workers’ representatives about impacts We are committed to fostering a culture where everyone feels safe to speak up, valuing each employee's integrity and moral responsibility. answering the survey anonymously, ensuring they feel free to speak openly while also protecting those who may feel marginalized or too vulnerable to express their thoughts in other settings. The survey results provide a valuable starting point for dialogue, action and targets to enhance our workplace. Each manager will host a follow-up meeting to discuss the findings, allowing employees to propose solutions to the issues raised. Managers will then communicate the specific actions they plan to take in response to these concerns. Like this, the employees will also know if and how their feedback was implemented. It is the Senior Vice President of HR, who is also part of the group manage- ment, who is ultimately responsible for conduction and analysis of the surveys. However, we strive to obtain even higher engagement in the survey as the level of participation demonstrates the effective- ness of the engagement channel. To achieve higher participation, we both prolong the answering period and run campaigns targeted both managers and employees. We are a people company, and our employees are the source of our success. Therefore, we are dedicated to fostering a culture where everyone feels psychologically safe to voice important matters and to speak their mind as each employee’s integrity and moral responsibility are key elements in NNIT’s commitments as described in the Business Ethics Code of Conduct. Additionally, our senior management on a quarterly basis host online All-Hands meet- ings where all employees are directly invited through booking are encouraged to voice their opinions, concerns or just general questions regarding NNIT. It is possible to submit questions before the meetings or ask the senior management directly during the sessions. After some meetings, employees are anonymously asked to eval- uate the quality of the meeting to ensure they remain as relevant as possible. The different channels provide valuable insights into areas where we excel and those where improvement is needed, helping us identify new opportunities. This includes encouraging the free expres- sion of views, even to colleagues in higher hierarchical positions. NNIT has imple- mented several processes for engaging with all our employees in the organization, including all levels and all geographies. To support this, we conduct two annual eVoice surveys globally, which provides insights into employees' perceptions of NNIT as a workplace, their daily work experiences, relationships with people leaders and senior management, and other factors impacting their working life. Each employee is We normally experience a high level of engagement in the eVoice surveys -also globally. This year, we had a 76 % partici- pation in the survey, which is considered as a satisfactory level of engagement. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 76 S1-3 and confidentiality are essential for the efficiency of the channels and employee trust in the channels. If the investigation confirms that conduct contrary to our busi- ness ethics or anti-harassment policy has occurred, NNIT will take immediate, appro- priate, corrective action, including discipline, up to and including immediate termination, while adhering to national laws. members in the Board of Directors and health and safety representatives Processes to remediate negative impacts and channels for own workforce to raise concerns NNIT strives to be open and honest, conscience driven, and value adding towards both our customers and our employees. In our biannual eVoice survey, we normally experience a high level of participation (in our latest survey the response rate reached 76 %), indicating awareness of the channel - also as a tool to speak one’s mind and to raise concerns. We believe that this approach fosters a culture of transparency and trust. Employees are encouraged to voice their concerns openly, knowing they will be listened to and taken seriously. We aim for quick and clear communication about any changes or issues, ensuring that employees are well-informed and can trust the responses they receive. NNIT’s commitment to providing accessible reporting channels for its employees. Also, in accordance with Danish Act No. 1436 of June 24, 2021, on Whistleblowing, the avail- ability of a whistleblower channel is a legal requirement. NNIT, as well as our suppliers, must establish anonymized and secure whistleblower programs to ensure safe and reliable reporting systems while protecting whistleblowers. Managers or other company officials who receive any specific complaint of harass- ment and/or discrimination must report it promptly to NNIT Human Resources. All complaints will be taken seriously, docu- mented, investigated promptly and thor- oughly by Human Resources. Confidentiality will be maintained throughout the investi- gative process to the extent practicable and consistent with NNIT’s need to undertake a full investigation. The person reporting will be updated on the raised inquiry throughout the process. Once a year, all employees are required to read, understand, and accept the Busi- ness Ethics Code of Conduct to ensure awareness and agreement with the policy. This process also ensures employees are informed of any updates to the policy. New employees will similarly review and accept the policy as part of their onboarding at NNIT. NNIT's Business Ethics Code of Conduct outlines the company’s corporate values, while the anti-harassment policy outlines the company’s social and collegial values. NNIT does not tolerate violations of the policies, as they may have negative conse- quences for both the workforce and the company. Non-compliance with the policies, applicable laws, or regulations will result in disciplinary actions, ranging from a warning to, in severe cases, dismissal without notice or, in instances of illegal behavior, criminal prosecution. Additionally, failure by an associate to report a violation of the Busi- ness Ethics Code of Conduct is considered a breach of the Code itself, emphasizing Employees have several options for raising concerns or complaints regarding harass- ment, bullying, discrimination, unlawful behavior, working conditions, depending on the situation and with whom they feel comfortable with. Some may choose to contact their direct leader, senior leader, or HR. Others might prefer to reach out to NNIT's Legal Department, which treats all reports with confidentiality, or to raise concerns in the biannual eVoice survey. All relevant parties will be involved to ensure different perspectives on the inci- dent are considered while protecting every- one’s integrity regarding personal data. Some employee-groups receive special protection, this includes employee-elected All complaints will be investigated promptly and, to the extent possible, be handled with confidentiality. The prompt reaction The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 77 S1-4 Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions In NNIT, we have a strong culture built on passionate people who create winning teams with our customers. In NNIT, we have a special focus on inte- grating initiatives into our recruitment processes that help reduce bias and promote diversity and inclusion. In this way, we ensure that we have the best conditions for attracting and recruiting candidates with the best competencies for the individual job function. Our top priority is to continue being an attractive workplace for both our current workforce and potential candidates. We believe that by fostering an appealing work environment, we can attract highly skilled candidates, retain our talents, manage material risks, and pursue IT solutions to Life Sciences internationally. support from their leaders. Our aim is to promote skill development and ensure equi- table access to career growth opportuni- ties. To do so, each employee will in collab- oration with the nearest leader perform an individual development plan. Furthermore “GROW-sessions” with a focus on knowl- edge sharing about specific business areas are facilitated by local departments. We do this by: • Ensuring that our policies do not favor any group(s) of employees rather than others. • Ensuring that we have a diverse representation among candidates for our talent and leadership development programs and for management succes- sion. • Assessing new leadership candidates based on the candidate’s potential as a leader and not just the candidate’s expe- riences. • Offering mentor- and sponsorship programs where employees at all levels can seek advice and get inspiration from others. • Reviewing our entire organization bi-an- nually, including salaries with the intention of ensuring fair salaries for all and closing potential gender pay gaps across NNIT We do this by: • Ensuring that all candidates are treated with respect We are committed to continuously chal- lenging and developing our highly skilled, ambitious, and motivated employees. To support this, we emphasize learning, career planning, job rotation, certifications, advanced education and leadership devel- opment programs. As it is a continuous work, there is no specific time horizon for completion of the actions. We are dedicated to ensuring equal pay for equal positions and competencies, main- taining a constant focus on this principle during hiring and promotion processes. • Ensuring that our recruitment process is driven by professional assessment criteria focusing on the candidate’s competen- cies, experiences, and potential • Striving for a balanced representation in recruitment committees regarding gender, age, and other characteristics • Writing job ads in a language that appeals to a broad and diverse field of candidates We are committed to developing our talents to the benefit of the employees’ individual aspirations, and to the benefit of our busi- ness. Furthermore, we are committed to offering fair and equal terms and opportu- nities for all. We are focused on improving our career pathways to enable employees to take charge of their career advancement, with The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 78 ment and opportunities is a key focus area that we will work on improving in 2025. accommodate their work life with their privacy and personal needs. and the flexible working in the eVoice survey and through the feedback each leader receives from their employees. Dedicated employees oversee the process, including setup and data management. Addition- ally, all managers are expected to discuss the results within their teams, engaging both HR and other departments to ensure meaningful follow-up and action. However, no specific resources are allocated for managing material impacts. Instead, the aforementioned functions will be activated to address impacts if they occur. • Ensuring that spokespersons, images and material in our external communication, job ads and PR reflects a diverse work- place with room for differences • Stating clearly in job ads that all candi- dates are encouraged to apply for the given job regardless of their gender, age, religious beliefs, sexual orienta- tion, national and social origin, political opinion, disability, race, skin color, and ethnic origin. Additionally, we have launched a new Diversity & Inclusion awareness commu- nity to educate employees on fostering an equitable and inclusive workplace. This community offers quarterly sessions and a self-learning platform for continuous development and is open to all interested employees. The network also serves as a platform for sharing ideas on initiatives to enhance diversity at NNIT. Furthermore, our biannual eVoice survey provides a space for employees to suggest ways to improve diversity and inclusion while also tracking the effectiveness and impact of current actions. We do this by ensuring that: • All employees are given the opportunity to ask their leader for more flexibility in their working conditions. This applies to all employees, not just parents or caregivers. • Employees in relevant job functions, and where it is currently estimated by the direct leader, can access the necessary IT equipment to be able to fulfill their posi- tion working from home. • Spreading awareness of how unconscious bias can be recognized and reduced, and how to avoid prejudices • All leaders follow our remote work guide- lines and offer clear guidance for their team. In 2024 46% of all vacant positions were filled by female candidates and in 2023 this was 39%. To ensure that NNIT has accurate time records, and that employees are paid for all hours worked in a timely manner, also when working from home. Exempt and non-ex- empt employees are required to accurately record all hours worked and leave on an NNIT timesheet. Our latest eVoice survey highlighted areas for improvement in our global bonus model. We are committed to continually reviewing our policies to drive performance while better aligning with our employees’ expectations. Building trust in decision-making processes and ensuring clear communication of deci- sions remain top priorities. Additionally, providing greater clarity on career develop- NNIT employees are our most important resource. No employees are alike, we all have different needs and ways in which our potential and competencies are best brought into play. Considering our business, we therefore strive to offer working conditions that make it possible for the individual employee to NNIT is ongoingly monitoring the employees’ experience with their own work-life balance The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 79 S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities We believe that a diverse work force creates better results and contributes to a better work environment. women are represented by at least 30 per This applies to members of the Board of Directors as well as Group Management. tial and other leadership training, and we seek to promote female as well as male role models whenever possible. For us, increasing diversity is not only about creating a more balanced gender distribution among our management and employees. But we find it crucial to focus on this aspect as the IT industry in which we operate, historically has had a very unbal- anced gender distribution. cent among our Board of Directors and NNIT Group Management by the end of 2025. We strive for this by aiming for a broad representation of characteristics in terms of gender, age, education, and professional background among our pool of candidates for managing positions. Also, we are addressing the influence of bias – also unconsciously – and prejudices in our recruitment processes. Despite these great developments, we acknowledge that we have some distance to cover when it comes to achieving our 30% target in 2025 and a more equal gender split for our upper management levels. NNIT’s diversity policy for management levels is to employ the best candidates and, as such, the decisive factor in external as well as internal recruitment processes is the candidate’s qualifications. The targets were outlined in 2023 (base- line) and they have not been changed since 2023. In 2023, the gender split in the Board was 67/33 (male/female), while it has unfor- tunately decreased in 2024 where it was 78/22 (male/female). In the top manage- ment, the gender split was 87,5/12,5 (male/ female) in 2023, and in 2024 it was 75/25 (male/female). For all management levels, the gender split was 64/36 (male/female) in 2023 and this was unchanged in 2024. We want to increase diversity among our workforce and among those who explore their leadership potential with NNIT. As early as 2013, the Board of Directors began increasing its diversity ambitions by setting targets for Board of Directors composition, aiming to achieve these changes by 2017. In 2023, these ambitions were extended to include top management as well. As a minimum, the gender distribution among our employees with leadership responsi- bility should reflect the distribution across NNIT (At least 30 per cent of the under- represented gender). Also, NNIT continues to the work to ensure that both men and We have already succeeded in attracting more women to our business as well as to our graduate programs and Young Professionals positions,. We now have a gender balance of 62.5% men and 37,5 % women, compared to 66% men and 34 % women in 2023, and in our graduate program in 2023 we had a gender balance of 56% men and 44% women. While progress will initially be slow, we remain confident that we will achieve a better gender balance before the end of 2025 by continuing to focus first and foremost on qualifications. We will adjust our targets accordingly year by year and introduce new actions informed by the work done by the new Diversity and Inclu- Diversity in NNIT goes beyond gender. Consequently, at NNIT, we work to ensure that our management is characterized by diversity with regards to, for example, age, education, and professional background. We make sure that a diverse group of employees are nominated to our leadership program Discover Your Leadership Poten- The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 80 sion Community consisting of engaged employees from different corners of the organization. nual eVoice survey to identify areas for improvement in working conditions. If the survey highlights the need for specific actions, targets, or new policies, these will be discussed among relevant managers and the relevant SVPs. To measure our progress, we use the subsequent survey as a tool to track improvements for our workforce. To raise awareness of the importance of diversity in leadership at Group Manage- ment levels, the issue is addressed at least once a year during Board and Executive Management meetings. At these meetings, board members are involved in setting goals and assessing their relevance to NNIT. The Board of Directors includes three employee-elected members, ensuring discussions are enriched by workforce perspectives. Additionally, the board can provide feedback and communicate focus points to management, supporting efforts to enhance diversity at NNIT. In our Annual Report, we will report on and follow up on NNIT’s progress toward achieving our goals related to diversity and gender balance. The report is sent to the Board for their comments on tracking performance against the targets. Currently, there are no specific targets related to potential negative impacts on our employees. Instead, we use the bian- The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 81 Table 50a: Average headcount in countries with S1-6 more than 50 employees or >10% of total headcount Characteristics of the undertaking’s employees Average Female Average Male Country Total NNIT is a global company operating in different regions in Europe, Asia and the United States. Still, the majority of the employees are located in Denmark where the headquarter is based, and where the business was founded. in the Life Sciences industry involves a designed to ensure we remain an attractive workplace for both current and future employees (see section S1-1). Denmark Ireland 250 45 464 101 48 714 146 66 great responsibility for developing the smartest solutions having a positive impact on the society. Czech Republic China 18 107 87 114 128 31 221 215 64 Philippines Singapore USA 33 In this regard, having highly skilled employees on permanent contracts is crucial for ensuring coherence, as well as the ongoing development and skill advancement of employees. The relatively high number for employee turnover is primarily due to structural adjustments in China and the US. Without structural adjust- ments, the number is 11%. 58 106 164 Table 50a shows the average head- count in countries with more than 50 employees and the gender distribution in these geographies. Denmark, China and the Philippines are the three geog- raphies with the highest number of employees. Table 50c: Employee turnover Leavers Percentage Total turnover 333 19,7% Table 50b and 51 show the contract type by gender and by region. Table 50b: Contract type by gender – Headcount Not At NNIT, high job satisfaction and employee retention are paramount. To enhance employee satisfaction, we have implemented several policies Reporting Period – October 2024 Female Male Other Declared Total The vast majority of NNIT’s employees are employed on a permanent basis. As a provider of IT and business solutions Average total 651 632 17 1,085 1,059 24 - - - - - - - - 1,736 1,692 44 Average permanent employees Average fixed term employees Average of non-guaranteed hours employees - - - Table 51: Contract type by Region Reporting Period – October 2024 Headcount CH CN CZ DE DK ES GB IR IT PH PL SG US Total Number of employees (HC) 28 28 221 219 2 66 66 46 45 1 714 673 41 6 6 26 26 146 146 20 20 215 215 20 20 64 64 165 165 1,736 1,692 44 Number of permanent employees (HC) Number of temporary employees (HC) The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 82 S1-8 Collective bargaining coverage and social dialogue Part of employees on collective agreements In NNIT, all employees are allowed to join a trade union and other workers’ organizations to negotiate their working conditions. Table 60c – Percentage of employees covered by collective agreements Collective bargaining Workplace Employees EEA representation (EEA) Social dialogue Coverage rate Social dialogue Neither trade unions nor employer organizations negotiate working conditions on behalf of employees. Each employee has individual terms of employment, as they are considered specialists in their respective fields. 0-19% Denmark - - - - - - - - - - 20-39% 40-59% 60-79% 80-100% - - - - Also, in NNIT there is no workers’ representatives in any of our geographies (0%). However, Workers in Denmark are represented in the Board of Directors by the employee elected board members. In extension, there are no agree- ments with employees for representation by European Works Council (EWC), Societas Europaea (SE) Works Council, or Societas Cooperativa Europaea (SCE) Works Council. However, a relatively low number of employees in NNIT are covered by collective bargaining agreements and all covered employees are located in Denmark (1,85% coverage in Denmark and 0,75% total coverage). The 14 covered employees belong to the same organization, which repre- sents workers in trade and office roles (HK – Handel og Kontor). The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 83 S1-9 Table 66: Headcount 2024 by gender Diversity metrics Average headcount Gender NNIT aims to be a diverse workplace where people with different attributes feel welcome. However, we know that women have traditionally been underrepresented in the IT sector, why we have set out ambitious targets on the gender distribution across the organization (see section S1-5). As mentioned, diversity at NNIT also includes age. Most of Male 1,085 our employees are mid-career professionals with exten- sive experience, reflecting our commitment to meeting customers’ demand for highly specialized consultants. Female Other 651 - - Not reported Total 1,736 Table 66b and table 66c visualize the age distribution in NNIT. Tabel 66 shows the average gender distribution for 2024. Table 66a: Gender distribution in top management Tabel 66a shows the gender distribution in top management in 2024. The top management in NNIT is defined as the CEO, CFO and SVPs who together form NNIT Group Management. Gender Count Percentage Male 7 1 87.5% 12.5% Female Table 66b: Overall age distribution Age Count Percentage <30 347 1,024 365 20% 59% 21% 30-50 >50 Table 66c: Age distribution by country CH CN CZ DE DK ES GB IR IT PH PL SG US Total <30 years/extrapolated 30-50 years/extrapolated >50 years/extrapolated Total/extrapolated 2 18 8 46 171 4 11 51 4 6 31 9 142 339 232 714 - 5 1 6 1 16 9 21 87 4 12 4 65 145 5 6 14 - 28 30 6 15 102 47 347 1,023 367 38 28 221 66 46 26 146 20 215 20 64 164 1,736 The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 84 S1-10 S1-14 Adequate wage Health and safety metrics NNIT rely on highly skilled employees in all positions, and no employees are paid below national minimum requirements in countries of operation. Ensuring a healthy physical and psychological work envi- ronment for all employees in NNIT is key. In addition to our health and safety policies (see section S1-1), the entire work- force is covered by a health and safety management system (100 % coverage), which is based on legal requirements. Table 88b-88c shows the number of work-related incidents and fatalities for 2024. Table 88b-88c: Number of work- related fatalities and accidents Total hours worked 2,466,626 Count Ratio 0.41 0.0 Work related incidents (Own workforce) 1 0 Number of fatalities as a result of work-related injures (Own workforce) Number of fatalities as a result of work-related injures 0 0.0 (Other workers at NNIT sites) No work-related ill health as per ILO’s list of Occupational Diseases has been identified in 2024. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 85 S1-16 The annual remuneration ratio in NNIT is 12 indicating that A large part of the exclusion is due to the movement from Remuneration metrics (pay gap and total remuneration) the annual total remuneration ratio of the highest paid individual is 12 times higher than the median annual total remuneration for all employees (excluding the highest-paid individual). several ERP-systems into one mid-2024. Furthermore, espe- cially internal functions didn’t time register correctly the entire year. In 2025 all global data is in one system making the calculation more accurate. At NNIT, we are committed to ensuring equal pay for equal roles and competencies, emphasizing this principle in hiring and promotions. However, as shown in Table 97a, a gender pay gap persists in some locations, which we aim to address. See Section S1-4 for actions taken to tackle this issue. Calculation 97b-97c: Annual remuneration ratio S1-17 The Gender pay gap table is based on all employees in NNIT during 2024. Incidents, complaints and severe human rights issues 12/1 In 2024, no complaints or incidents of discrimination or harassment were reported. Furthermore, no severe human rights issues occurred. Nor were any complaints filed to National Contact Points for OECD Multinational Enterprises. Consequently, no fines, penalties, or compensation for damages were issued. Table 97a – Gender Pay Gap The calculation of the annual remuneration ratio is based on all employees in NNIT during 2024. Location Difference China 22% 28% 15% 20% 20% (25%) 7% Czech Republic Denmark Germany Great Britain Ireland To make a fair comparison between hourly paid employees, employees receiving overtime pay and employees receiving bonus, the total salary package has been divided by the indi- vidual total recorded hours in 2024. Due to quality reasons, employees with a total of less than 250 hours registered have been excluded from the calculation. Furthermore, employees who didn’t time register for their entire active period of 2024 were also excluded. Italy Philippines Poland 19% 16% (10%) 8% Spain Switzerland USA 19% 19% Total The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 86 S1 Accounting policies ESRS DR Paragraph Data point/ metric Accounting principle All metrics cover the reporting period 1st of January 2024 – 31st December 2024. All Group companies Excellis, Scales, and SL Controls have only been extrapolated in to the NNIT core data due to data quality differences, ensuring consistency across calculations. The three companies will be included in the report for 2025 when ERP and HR systems have been implemented and integrated. NNIT have used averages when reporting on the KPIs. Data from Excellis, SL Controls, and Scales (Group companies) have been extrapolated into the total figures, assuming that their organizational structures align with NNIT in each country. Employee distribution for these companies has been proportionally allocated based on NNIT's country-by-country distribution. All data used for calculations is based on extracts from the HR system and the BI-system. Data in the BI system is based on a combination of data from the HR system and the ERP system through integration. S1-6 S1-6 S1-6 S1-6 50a 50b 51 Total number of employees Numbers are based on a combination of data from NNIT’s BI-system and HR system, and the data is calculated as the average number of employees during 2024 rounded to the nearest integer. Gender is based on input from the employee in the hiring process, which is stored in the HR system. Permanent, temporary and non-guaranteed hours employees Numbers are based on a combination of data from the HR system and BI system and is calculated as the average number of each contract types during 2024 rounded to the nearest integer. Contract type by region Numbers are based on a combination of data from the HR system and BI system and is calculated as the average number of each contract types during 2024 per country and rounded to the nearest integer. 50c Total number of employees who left the undertaking and turnover rate The calculation is based on the average monthly headcount in NNIT, and it includes voluntary and involuntary leavers. The share of leavers within the year is calculated by dividing the number of, respectively, voluntary and involuntary leavers by the average total headcount. Student assistants and temporary employees are excluded, as their higher turnover could distort data trends. Group companies are included in calculation but student assistants and interns have been extrap- olated out of their headcount based on NNIT %. S1-8 S1-9 S1-9 60c 66 Percentage of employees covered by collective agreements The calculation is based on all employees who are registered as being covered by a collective agreement divided by the headcount for 2024. Headcount by gender The data is gathered from a combination of HR and BI data, which sums up data from the HR system. Gender identification is based on input from the employee in the hiring process, which is stored in the HR system. 66a Gender distribution at top management level The data is gathered from the HR system. Gender identification is based on input from the employee in the hiring process, which is stored in the HR system. The top management in NNIT is defined as the CEO, CFO and SVPs who together form NNIT Management. All members of management have been part of the management throughout 2024. S1-9 S1-9 66b 66c Age distribution The data is gathered from NNIT’s BI-database, which sums up data from the HR system. Data is based on the total population in 2024 and the employee’s age at that time. Age distribution by country The data is gathered from NNIT’s BI-database, which sums up data from the HR system. Data is based on the total population in 2024 and the employee’s age at that time. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 87 Continued ESRS DR Paragraph Data point/ metric Accounting principle S1-10 69-70 Lowest salary at NNIT compared to national minimum salaries National authorities determine minimum salary benchmarks for each country, and for the countries that do not have one, the minimum wage established by collective agreements. National authorities include agencies, national statistics, Eurostat and similar. In the US, there is no national minimum; it varies by state. Therefore, the highest state minimum was used as the general benchmark. In each country, the lowest paid employee is compared to the country benchmark. Data on the lowest salary is based on monthly extract from HR system, and is based on the basic wage plus any fixed additional payments. Data excludes hourly paid, student assistants and trainees under collective agreement. Salaries in Denmark, Poland and Czech Republic have been converted to Euro due to match EU statistics. S1-14 S1-14 S1-14 S1-16 88a 88b 88c 97a Health and safety coverage Number of fatalities in own workforce Number of work-related incidents Gender pay Gap Based on input from HR regions. The numbers sum to 100% as all contracts in NNIT include a health and safety coverage system by default. No fatalities have been registered in 2024. In NNIT, there is no automatic system for reporting incidents and/or fatalities. Instead, each incident is reported directly to the HR department for further handling. A work-related incident is defined as an unplanned event that doesn't result in injury but has enough significant risk to merit recording. The respective number of cases were divided by the number of total hours worked by all the employees and multiplied by 1,000,000. Gender identification is based on input from the employee in the hiring process, which is stored in the HR system. The Gender pay gap table is based on all employees in NNIT during 2024. The data represents the raw difference pr. country with no consideration of level or seniority. The calculation is average gross hourly pay level of male employees - average gross hourly pay level of female employees: (Average gross hourly pay level of male employees - average gross hourly pay level of female employees/ average gross hourly pay level of male employees,)100. Gross hourly pay includes base salary, bonus, pension, overtime payment, allowances and insurance. Base salary is the sum of guaranteed, short-term, and non-variable cash compensation. S1-16 S1-16 97b 97c Annual remuneration ratio The calculation of the annual remuneration ratio is based on the average remuneration of the highest paid individual divided by for all employees in NNIT during 2024. The calculation of the annual remuneration ratio is based on the average remuneration of the highest-paid individual divided by the average remuneration of all employees (including guaranteed, short-term, and non-variable cash compensation) in NNIT during 2024 (excluding the highest-paid individual). Annual remuneration ratio – Contextual information To make a fair comparison between hourly paid employees, employees receiving overtime pay and employees receiving bonus, the total salary package has been divided by the individual total recorded hours in 2024. Due to quality reasons, employees with a total of less than 250 hours registered have been excluded from the calculation. Furthermore, employees who didn’t time register for their entire active period of 2024 were also excluded. A large part of the exclusion is due to the movement from several ERP-systems into one mid-2024. Furthermore, especially internal functions didn’t time register correctly the entire year. In 2025 all global data is in one system making the calculation more accurate. S1-17 103a, 103b, 103c, 103d, 104a, 104b Number of incidents of discrimination and number of severe human rights issues Incidents and human rights issues can be reported through various channels, including the Whistleblower system, HR, the nearest leader, or the National Contact Points for OECD Multinational Enterprises. Regardless of the reporting channel, the HR department will be notified and involved in addressing adverse impacts and identifying appropriate actions to mitigate negative effects. To calculate the number of reported complaints, severe human rights issues, and corresponding fines and penalties, data has been retrieved from HR and Legal. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 88 Consumers and end users S4 Consumers and end-users Page ESRS 2 SBM-2-S4 Interests and views of stakeholders 46 ESRS 2 SBM-3-S4 Material impacts, risks and opportunities and their interaction with strategy and business model 89-90 S4-1 S4-2 S4-3 S4-4 Policies related to consumers and end-users 91 Processes for engaging with consumers and end-users about impacts Processes to remediate negative impacts and channels for consumers and end-users to raise concerns 92 93 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions 94-95 S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 96 The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 89 Strategy Our solutions portfolio delivers a strong value proposition to specific customer needs with regional execution ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model NNIT is a leading provider of IT solutions to Life Sciences internationally, and to the public and private sector in Denmark. Life Sciences Global Solutions portfolio MANUFACTURING & SUPPLY CHAIN R&D COMMERCIAL IT We work in high complexity industries, and we thrive in environments where regula- tory demands and complexity are high. We advise on and build sustainable digital solu- tions that work for end-users, customers and employees. can be realized for end-users, patients and citizens as they take advantage of the IT consultancy, IT development or IT solutions delivered by NNIT. QUALITY & COMPLIANCE DATA & DIGITAL Region: Our policies related to customers and end-users tie to our corporate aspiration: We bring digital transformation to life, hence making a mark of business and society. EUROPE US ASIA Given our role as IT solutions provider, especially to the Life Sciences industry, we are responsible for the impact that our solutions and consultancy leave on our customer and their end-users. This is a responsibility that we take very seriously. Therefore, when relevant and agreed upon with the client, we provide our customers and end-users with service-related infor- mation, such as manuals and guidelines, to help them achieve optimal yield. Our impact Public & Private in Denmark As part of our Double Material Assess- ment, we identified that there is material sustainability impact on our customers and end-users. Since we provide services to the Life Sciences industry, which produces life- saving medications, we recognize the critical role we play in our customers' value chain. Solutions portfolio CUSTOM APPLICATIONS DEVELOPMENT MICROSOFT SOLUTIONS (INCL. SCALES) SAP ADVISORY, CLOUD & CYBERSEC DEVOPS Region: DENMARK The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 90 Impacts, risks and opportunities management We are highly attentive to this responsibility and the potential consequences that follow if we fail to deliver our services. S4-1 Policies related to consumers and end-users At NNIT, we use the annual assessment cycle, to manage material impacts, risks and opportunities as they relate to consumers and end-users (in the following referred to as customers). NNIT has identified the following themes of relevant impact on all types of customers and end-users. However, given the nature of the identified potential impacts, we have a specific focus on including minorities and marginalized people in our services: In NNIT, we are committed to integrity and moral responsibility in all we do, and these values permeate our policies. Our DNA emerges from the regulated pharmaceutical industry and significantly reflects our approach to business ethics. When representing NNIT we act with professionalism, honesty and integrity. Our conduct shall always be fair and transparent and be perceived as fair and transparent by third parties. and sustainable conduct toward our customers and end-users.. Conscience driven: • We take responsibility for our customers’ challenges as if they were our own. • We are accessible to our customers and act promptly when they need our help. • We work with passion to add quality to everything we do. Our values are deeply anchored in us as individuals and as a company. Wherever you meet us, you can expect that we live these values: • Non-discrimination (in relation to consumers and end-users) • Access to product and services Open and honest: • We listen to our customers, and we challenge them. • We make decisions based on rational financial judgement. NNIT relies on the conceptualizations of responsibility and sustainability provided by the United Nations (UN) Global • We communicate quickly and openly about changes affecting our customers or our company. • We trust each other, and we question things that don’t make sense. • We believe in clear and understandable agreements that benefit our customers and ourselves. Value adding: We closely monitor the impact of our deliv- ered consultancy, development and solu- tions, and solicit direct feedback from our customers to understand and revisit our performance in order to deliver even better solutions to our customers and end-users. In this way, NNIT’s digital solutions continue to ensure the health and safety while enabling access and inclusion. Compact, UN Declaration of Human Rights, the Sustainable Development Goals, and the ESG principles in our devel- opment of policies and business ethics as explained in our Responsible Sourcing Standard that applies to all of NNIT’s busi- ness relations. NNIT expects its suppliers to uphold these fundamental principles and obligations to ensure responsible • We utilize our domain expertise to create business results for our customers and ourselves. • We are proud of what we do, and we keep asking ourselves: Does it add value? • We stand together as One NNIT across cultures and our international locations. • We always strive to optimizee perfor- mances. • We get things done. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 91 tion Officer is responsible for overseeing overall compliance with Data Ethics Policy, including the Data Privacy Policy, as well as issuing guidance and counselling on related matters. mitigate risks and eliminate or limit possible damage to individuals. We will strive to make sure that any use or development of AI solutions are fair, reliable, and explain- able. instructions and requirements set out by NNIT's customers, to ensure the safety of the data and the integrity of the individual data subjects concerned by any processing carried out by NNIT or on behalf of others. All employees must at all times comply with applicable laws, rules and regulations and NNIT complies with all antibribery, and anti-corruption laws as may be appli- cable wherever we do business. It is the Management of the Legal department who is responsible for implementing the policy as well as updating it. As an IT Service provider, it is essential to NNIT to respect and protect data privacy. On behalf of our customers and within the NNIT group, we process data on a regular basis - a substantial portion of which is Personal Data. Moreover, privacy NNIT requires its We evaluate our policies once a year to ensure the accuracy and relevance of infor- mation provided to potential and existing consumers or end-users. suppliers to comply with international and local law regarding the processing and handling of personal data that pertains to NNIT or NNIT’s deliveries and/or services. Our policies are available for clients, stake- holders and those of interest at NNIT’s website: www.nnit.com. NNIT Board of Directors approves the Data Ethics Policy, which is updated annually. NNIT reports on the work with Data Ethics and GDPR to the Audit Committee on a regular basis. NNIT Data Ethics: The data subject will always be informed about the purpose/reasoning for using their data, and the data subject has, upon request, the right to access, delimit, modify and delete their data. We will take legal and ethics aspect into account when developing new solutions that processes data through a formalized process. Our Data Privacy Policy sets out the stand- ards and the principles when NNIT collects, uses, stores and processes Personal Data. This Data Privacy Policy is based on the European Union General Data Protec- tion Regulation 5419/16 (GDPR) and is in accordance with data protection laws in the United States. Our Data Privacy Policy is a minimum standard applicable to all entities and employees of the NNIT group with the purpose of protecting our consumers’ and end users’ privacy. The Executive Management is responsible for the implementation of the Data Ethics Policy within NNIT’s daily operations and activities. This is ensured by establishment of relevant processes and routines for implementation of the policy. As outlined in our NNIT Data Ethics, we will ensure diversity when creating user-groups for solution development of systems to process data, when we bring solutions to the market that processes data. We will take measures to ensure our use of data are unbiased and without discrimina- tion and consider the impact of individuals’ reasonable expectations. When working with AI, we consider data protection and data ethical matters at an early stage to Group Management is responsible for integrating the Data Ethics Policy in the daily operations and to ensure relevant and ethical handling of data within the business areas and units. The NNIT Data Protec- Personal Data must be processed in accordance with these standards and principles as well as in accordance with the The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 92 S4-2 Processes for engaging with consumers and end-users about impacts At NNIT, we have a well-established engagement model with our customers. Through our ongoing engagement with customers and end-users, we capture a profound understanding of the customers’ needs, and equally important, whether the delivered consultancy and solutions led to the expected positive impact, also from a sustainability perspective. The engagement with customers and end-users is a part of our project management DNA. level of customer satisfaction. In 2024, we • Right of Access (confirmation to the data subject that Personal Data is processed, access in form of a copy of the data relating to the Data Subject). • Right to withdraw consent (if the processing is based on consent as the legal basis) experienced a response rate of appr. 40%. Moreover, in combination with our ongoing and close dialogue with our customers on a daily basis, we have a very good under- standing of our customers experience with us. The rights may be subject to conditions or • Right of Rectification (the right to change data) restrictions in certain instances, depending on such circumstances as the Data Processing, the purpose, the legal basis and the retention requirements. Aside from the feedback received through our survey or directly from the customers, NNIT undertakes efforts to ongoingly understand the developments in behavior and needs of relevant customer segments. This enables us to adjust current – or • Right to be Forgotten (the right to have data deleted) Moreover, the Customer Feedback Program is anchored on Group Management level and ensures that the engagement model is functioning. Feedback is dealt with on a very operational level by the employee closest to the customer – and on a corpo- rate level where results are aggregated and analyzed. The NNIT Data Protection Officer is respon- sible for overseeing overall compliance with data privacy, including the Data Privacy Policy, as well as issuing guidance and coun- selling on matters of data privacy. • Right to Restriction of Processing (right to have certain processing activities suspended) develop new – solutions to our customers. • Right to Data Portability (right to have data delivered in a machine-readable format) Regarding data privacy, our customers and end-users, insofar as they constitute a data subject and NNIT is the data controller, have the following rights upon request ensuring their integrity and the right to their own data: Finally, to gain insights into more consumers and end-users perspective, we are engaged in Danish Chamber of Commerce and the IT Industry association in Denmark. Through our engagement in networking organiza- tions, we gain insights into societal needs and issues within the sector as well as inspiration. The Customer Feedback Program consist of a customer satisfaction survey, and every third month the survey is distrib- uted to all our clients. The survey consists of five questions assessing the general • Right to Objection (right to have certain processing activities limited). • Right to Limit Automated Deci- sion-making. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 93 S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns Our ISO 9001 Quality Management System ensures that our engagement with customers and end-users is structured and of high quality. A variety of options are available for our customers to raise concerns. Informally, via the daily engagement model, the customer can raise concerns to their NNIT counterparts. Each raised concern will be taken seriously and appropriate actions to remediate the negative impact will be identified. Aside from this, the beforemen- tioned formalized feedback program allows customers to voice any concerns they may have. reviews allowing us to ongoingly refine the quality of our management system. Also, NNIT has adopted the following defi- nition of access and restrictions extending to all systems and types of data including Personal Data. To address potential human rights impacts, the relevant manager or Senior Vice Presi- dent identifies appropriate solutions. NNIT handles each case individually, involving the right manager upon identifying an impact. With support from HR, Legal, or Procure- ment, the manager ensures effective reme- diation. In order to safeguard Personal Data and to ensure and enforce the access restrictions, appropriate technical and organizational security measures must always be taken to prevent the accidental or unlawful destruc- tion or accidental loss, alteration, unauthor- ized disclosure of or access to data. Compli- ance relies on a combination of technical and organizational security measures: • Access to data must be limited to the personnel resources that need to have the access to perform their services. • For specific types of data specific restric- tions may apply which prevent or limit the access to locations outside the EU/EAA or even to specific countries in the EU/ EAA and such access restrictions must be reflected in NNIT's service design. In addition, we also offer a formalized customer complaint process per our Quality Management System (ISO 9001) as well as a whistleblower option. Both of these processes are described as part of our quality management framework. Our ISO 9001 certification proves that our guide- lines and processes for resolving customer complaints are efficient and robust. More- over, our process is subject to regular audit • Technical access management and tech- nical security • Procedures and rules Databreaches and potential data breaches are raised and tracked electronically and addressed by internal legal and technical resources, including external resources if relevant. • Control and traceability ensuring enforce- ability, documentation and the possibility to investigate possible breaches The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 94 S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those action To monitor and improve customer satisfaction and experiences, NNIT has implemented a Customer Feedback Program. To ensure customer and end-user satis- faction, we have implemented various initiatives that enable customers to provide valuable feedback, allowing us to learn from their experiences and make necessary adjustments. both information security and data protec- tion requirements. allocated based on the breach's specifics. We have a full-time Data Protection Officer (DPO), and in 2024, we also had a full-time FTE and a student assisting the DPO in the Data Protection Office. Additionally, our Legal department provides support when needed, and in 2024, we had a full-time Chief Information Security Officer (CISO). Further to this, all our employees are continuously and thoroughly trained in the NNIT Methodology, which embodies data protection security through a complete set of guidelines, tools, and templates for planning, delivering, managing, and docu- menting complex integrated IT solutions. Our risk assessment – as it relates to our customers and end users – is imbedded into our overall corporate risk management process. Specific input on risks related to customers and end users may originate from our work with IROs as part of the annual materiality assessment. In addition, the ISO 9001 standard has been implemented at NNIT to prevent material negative impacts on consumers and end-users. This standard helps us meet customer expectations and demonstrate our commitment to quality, as exemplified by the Performance Evaluation Procedure integrated into it. ISO 9001 requires organ- izations to monitor, measure, analyze, and evaluate the performance and effectiveness of their quality management systems. As part of this standard, customers can submit complaints, which are addressed promptly as they are identified. To mitigate the risk of data breaches, all NNIT employees are required to complete annual online data privacy training, achieving a minimum score of 70% to pass. The international standard on information security ISO/IEC 27001 is a fundamental part of NNIT’s work helping us protect valuable information, including informa- tion on our customers and end-users. The standard sets out requirements for internal audit controls to secure compliance with We assess each data breach case individ- ually to determine how it can be stopped as quickly as possible and to identify any relevant mitigating actions. These actions may be taken by NNIT or recommended to the data subject. Necessary internal and external legal and technical resources are The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 95 documented and made available for the project delivery teams, as well as NNIT Management, in order for both to make any needed corrective actions and learn from the positive feedback to ensure a high level of customer satisfaction and loyalty. taken to avoid further negative impacts (actions are thus identified ongoingly). We actively encourage our customers to complete the surveys and send reminders if we haven’t received their input within a specified timeframe. This is further supported by the high satis- faction levels in our Customer Feedback Program, with an average score of 4.5 out of 5 across the quarterly EvalGO surveys in 2024. External audits Moreover, our actions are subject to audits. DNV, an independent expert in assur- ance and risk management, oversees and audits our processes on an ongoing basis, assessing whether our goals and visions align with our practices. Additionally, our customers occasionally conduct quality assurance visits to ensure compliance with the high standards required in their sectors and across their value chains. Nonetheless, at least once a year, we perform a market outlook, which is an examination of the trends that may have an impact on Life Sciences and other rele- vant industries, and which new needs that follow these trends. The examination of the industrial changes in the NNIT relevant industries brings us an indication of how we can support our customers even better in the future. Our Customer Satisfaction Survey targets senior management (major contract holders) and provides a 360-degree evalu- ation of NNIT, covering the customers’ full journey through NNIT. Conducted annually, it includes individual debriefings with partic- ipating companies. All our consultancy and solutions are designed in close collaboration with customers to address their needs. Throughout the process, we provide advice to identify potential blind spots and opti- mize solutions while customers commu- nicate their requirements. This ensures our practices have a positive impact on customers and end-users. Additionally, we guide customers on who should test the solutions to prevent any negative impact on potential end-users. Customer feedback Our Customer Feedback Program serves as a key tool to both remediate negative impacts experienced among our customers and end-users, while also serving as a tool to identify new needs and possibilities. The program consists of the following activities: The EvalGO survey targets project, middle, and senior management responsible for NNIT’s projects and SLAs, assessing specific deliveries. It runs every three months (ongoing basis), with debriefings provided to relevant customer contacts after each cycle. In 2024, no specific actions were taken to remediate negative impacts or incidents related to customers, since no cases of non-compliance with the UN Guiding Prin- ciples on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, or the OECD Guidelines for Multinational Enterprises—relating to consumers and/or end-users—have been identified in our downstream value chain. • Customer Satisfaction Survey (annual) • EvalGO (every three month) Turning feedback into actions The output from our survey is both feed- back on quality, collaboration, time effi- ciency and corrective actions going forward. Our survey triggers automated actions based on customer responses in the lower end of the scale (ratings are from 1 to 5, 5 being the best). Project managers then determine and, when necessary, consult with customer on corrective actions, ensuring that the appropriate steps are The purpose of the Customer Feedback Program Process is to ensure that our customers’ experiences are collected, The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 96 S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities We use our customers' input and expectations to guide our targets. standards while ensuring the confidentiality, integrity, and availability of data. In 2024, we achieved an average score of 4.5, successfully meeting our target and reaffirming our commitment to excellence. Also, this is a progress from the baseline year in 2023 where the average score was 4.4. We will continue to have this ambitious goal for our satisfaction survey in 2025. and define success criteria to ensure a successful collaboration. Our customers are our top priority, and we actively seek their feedback to ensure their satisfaction and loyalty. We are committed to addressing and acting on their input to continuously improve our services. It is our Board of Directors as well as the relevant Senior Vice Presidents that set the targets relating to consumers and end-users. More specifically, our goal is to maintain high client satisfaction, reflected in our fixed target – unchanged since 2023 and serving as the baseline - of a total average score on 4.5 out of 5 in our quarterly satis- faction survey. Regarding data privacy and data breaches, we will uphold data ethics principles in our data processing activities by ensuring data are processed in a fairly manner, with valid legal basis, in line with the fundamental personal data principles and best prac- tices. Further, our aim is to handle any data breach within the deadlines in relevant legislation and contracts with customers (this is a fixed goal and there have been no changes since 2023). Our customer satisfaction survey also provides an opportunity for customers to share valuable input and advice on steps to improve. This feedback helps us identify actions to better meet their needs and ensure their satisfaction in the future. If relevant corresponding policies may be updated based on the feedback. Both our ISO 9001 and ISO/IEC 27001 standards emphasize the importance of establishing systems and frameworks for continuous improvement and compliance. The ISO 9001 standard require us to focus on defining quality objectives to meet our customer requirements and systematically achieving them. Meanwhile, ISO/IEC 27001 requires us to conduct risk assessments and setting data security objectives aimed at complying with legal and regulatory As part of our annual business target setting process, we set a target for the desired level of customer satisfaction for the coming year. Our target of 4.5 for 2024 was set as part of our overall business target setting going into that fiscal year. Progress is ongoingly tracked from indi- vidual level to group management during the year. Finally, whenever we enter a contract with a customer, we establish specific targets The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 97 G1 Business conduct Page ESRS 2 SBM-3-G1 Material impacts, risks and opportunities and their interaction with strategy and business model 98 Governance ESRS 2 GOV-1-G1 The role of the administrative, management and supervisory bodies 39-41 47-49 ESRS 2 Description of the processes to identify and assess material impacts, risks and opportunities IRO-1-G1 G1-1 G1-3 G1-4 Business conduct policies and corporate culture Prevention and detection of corruption and bribery Incidents of corruption or bribery 99-101 102 103 The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 98 G1 Impact, risk and opportunity management ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model At NNIT, delivering quality IT solutions for our customers also means making a positive impact on society. As a global company in the Life Sciences industry, earning and maintaining the trust of our customers, users, and stakeholders is paramount. Functions at Risk In our organization, certain functions pose elevated risks for corruption and bribery due to their involvement in critical financial transactions, interactions with external stakeholders, and sensitivity to regulatory and ethical compliance. Based on transparency international and their corruption perception index, the functions which have been identified at risk include: A strong corporate culture plays a vital role in building this trust, as its absence could lead to negative consequences for our organization, our employees, and the consumers and end-users we serve. These considerations were integral in identifying material impacts, risks, and opportunities. Key risks include: 1. 2. • Corporate culture • Protection of whistleblowers • Corruption and bribery Sales enabling functions across regions Procurement in China and Philippines The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 99 G1-1 Business Ethics Code of Conduct covers 100% of the functions-at-risk. This also means that management at all levels and across all departments is included in the training and have the expertise in code of conduct. the The Board is responsible for ensuring that the Business Ethics Code of Conduct policy is being developed, promoted and evaluated. NNIT aims to have a target of 100% completion for the training in the Business ethics code of conduct policy and whistleblower policy. Every employee must undergo the training annually and gets reminders in the mailbox if they fail to take the training within the due date mentioned and failure leads to escalation to their line managers. website). Our Business Ethics Code of The Business Ethics Code of Conduct addresses ethical conduct in our work environment, business practices and dealing with stakeholders, customers, citizens and others, and explains the standards of behavior that NNIT expects of its Associates. It is overseen by our Senior Vice President, Legal & Contract Management, who have the overall responsibility for administration of the policy and is committed to investigate business conduct incidents promptly, independently and objectively, while the Board of Directors is responsible for developing and approving policies . In addition, our group CFO is responsible for compliance with the policy. The policy covers the entire group and is applicable to all of its employees including subsidiaries. Conduct includes a process for investigating incidents promptly, independently and objectively. Business conduct policies and corporate culture Our policies constitute a crucial foundation of our company culture. Anti-Corruption and Anti-bribery Principles NNIT Group Management ensures NNIT adheres to principle 10 in the UN Global Compact as stated in our sustainability and ESG Policy and works against corruption in all forms. We require all employees to work actively to ensure continued compliance. adherence to NNIT’s Business Ethics Code of Conduct, which defines expected ethical behavior in the workplace, business practices, and stakeholder interactions. This policy fosters a culture of integrity, guiding employees on maintaining high ethical standards. We have an eVoice survey for all employees including the management twice a year which includes questions about evaluating corporate culture and raising any concerns about the same, if any. These surveys are evaluated by group management and necessary steps are taken to address the issues raised by employees. Individual Managers also discuss the results with their own teams. We also have communication from our CEO which is called ‘CEO updates’ on our NNIT Sharepoint to discuss results of the eVoice surveys. NNIT complies with the UN convention against corruption and all regulations on corruption and prohibited business practices applicable in all countries in which we operate. Our business ethics code of conduct policy includes our policy related to anti-corruption and anti-bribery. In the risk policy, there is clear guidance on how employees and stakeholders can report concerns about unlawful behavior. In addition to whistleblowing mechanism, the risks and unlawful activities not covered by the whistleblower system are directed to Legal/Finance through a dedicated mailbox. This mailbox is jointly handled by the Legal and Finance department and is open to anyone inside or outside the organization. (The mailbox adress is published on the All NNIT employees undergo mandatory regular training in the Business Ethics Code of Conduct policy as part of onboarding. All NNIT employees are on an annual basis obligated to read, understand and approve the Business Ethics Code of Conduct Policy on our internal training system, Qpoint. This means that the training automatically NNIT rejects all forms of bribery, facilitation payments, corruption, extortion, or embezzlement. As approvers of NNIT’s Business Ethics Code of Conduct, NNIT’s group management is committed to and overall responsible for ensuring that NNIT’s business is conducted in accordance with The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 100 or similar. Therefore, all employees, management and the Board of Directors of NNIT as well as all other persons doing business with and/or advising NNIT such as suppliers, customers, business partners, lawyers or auditors are encouraged to report concerns regarding acts or omissions that could harm NNIT. concerns shall in the following be referred to as the “Whistleblower”. of concern, the investigation will under normal circumstances be carried out by the following functions: this document. They ensure that the due consideration is given to key stakeholders while formulation and implementation of the policies. With the Whistleblower function as set out in NNIT Whistleblower Policy, the Board of Directors are ultimately responsible for oversight over material Business Ethics issues. The policies are available online and accessible to the potentially affected stakeholders as well as for those stakeholders who want to implement them. The whistleblower system is hosted by an external independent third party. The independent party only operates the system and does not have access to the reports in any way. All data reported through the whistleblower system is encrypted and stored safely. • Financial fraud will be investigated by the NNIT Finance under the responsibility of the CFO. • Severe Business Ethic misconduct will be investigated by the NNIT Legal under the responsibility of the CEO or CFO depending on the area of misconduct. NNIT has standard internal communication channels in place, where concerns can be reported directly to managers, HR/Legal and even senior management. However, NNIT understands and recognizes that in some situations persons may be reluctant to report concerns due to a sense of loyalty towards NNIT or colleagues, or in the worst case in fear of retaliation. The system is designed and set up to secure the Whistleblower from any retaliation and the Whistleblower’s identity will only be disclosed to the person(s) investigating the report. To ensure full anonymity it is however necessary to file the report from a private computer that is NOT on NNIT’s corporate network. The whistleblower system does not log IP addresses or Machine IDs and does not use cookies. • Severe Security breaches will be investigated by the NNIT Q&S under the responsibility of the SVP of People, Communication & Quality. NNIT is a company with strong values and company culture. NNIT strives to be open and honest, conscience driven, and value adding towards our customers and our employees. As part of our Onboarding, we introduce our employees to values and company culture and encourage them to promote it in their day-to-day dealings as NNIT employees. We make sure that our values are deeply anchored in us as individuals and as a company. • Severe Data Protection breaches will be investigated by NNIT Legal or Q&S. NNIT has therefore established a whistleblower-function, enabling employees, the management and the Board of Directors of NNIT, business partners and advisors to NNIT and anyone that is a part of value chain or any external person to report concerns of illegal or fraudulent behavior, business ethics misconduct and security breaches in a secure and confidential way. The person reporting the The Compliance Function will quarterly provide the Audit Committee with a list of all reports made, information on the result of the preliminary screening and status on reports being investigated. If it is decided to investigate the raised concern any further, the Compliance Function designates an appropriate investigator and informs the Chairman of the Audit Committee that an investigation has been initiated. Depending on the area Protection of whistleblowers NNIT is committed to detect and prevent illegal activities, financial fraud, business ethics misconduct, security breaches The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 101 Committed to Integrity and Moral Responsibility Board of Directors and any other person or entity doing business with NNIT to comply with applicable laws, regulations, and internal procedures. This includes our suppliers – as stated in our Responsible Sourcing Standards Policy. At NNIT, we act with professionalism, honesty, and integrity. Our Business Ethics Code of Conduct is the foundation of our operations throughout our entire organization. It provides guidance and outlines the responsibilities of employees and management to protect NNIT from any malpractice that may undermine our business integrity and impact our long-term business success. It also clearly states that we prohibit any kind of political involvement. We expect all employees, management, the NNIT is obliged to be registered at the Chamber of Commerce in Italy (NNIT Italy S.r.l). Except Italy we have no obligation in other countries where we are required to be registered at Chamber of commerce. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 102 G1-3 Obliged to report At present, as NNIT we are subject to over- arching legislation for whistleblowing direc- tive or equal legal requirements. of the preliminary screening and status on reports being investigated. All NNIT Associates have an obligation to report all suspicions or concerns regarding possible misconduct or noncompliance with the Business Ethics Code of Conduct or applicable laws. It takes courage to raise concerns about actions that may violate or be inconsistent with the Business Ethics Code of Conduct, and NNIT is committed to ensuring that an individual does not face retaliation for reporting such concerns in good faith. “Good faith” means having a reasonable belief that the information you provide is truthful. It does not mean you have to have all the evidence about a poten- tial violation or case reported. Prevention and detection of corruption and bribery All NNIT Associates must report suspected misconduct or legal noncompliance. Mandatory training Confidentiality when reporting In NNIT, we understand and recognize that in some situations, people may be reluc- tant to report concerns due to a sense of loyalty towards NNIT or colleagues or fear of retaliation. The anti-corruption and anti-bribery training is focusing on the Policy in general terms and how corruption and bribery is to be understood in NNIT. Also, the training addresses bribery, facilitation payments, gifts, hospitality, entertainment, and conflicts of interest. The policy also includes guidance about reporting cases of concern. It is our Legal Department who oversees and update the training to ensure its alignment with national and interna- tional legislation, as well as updating the content and examples to align with rele- vant threats. NNIT Group Management is overall responsible to ensure that NNIT’s business is conducted as per the Business Code of Ethics policy. The training covers all employees which means that 100% of employees working in high risk functions are covered by the training. To prevent, detect, and address corruption and bribery while protecting whistleblowers and maintaining corporate culture, NNIT has implemented several measures, detailed below. In the event of breaches or concerns, necessary resources will be allocated to address inquiries. These key actions cover both internal operations (anti-corruption and bribery training) and stakeholders across the value chain (obligations to report concerns via our whistleblower system). We ensure that investigators or investi- gating committee are separate from chain of management involved in prevention and detection of corruption or bribery. The Board along with Group CFO is responsible for prevention and detection of corrup- tion and bribery and the Head of Legal is involved in investigation of reported inci- dents, if any. Our whistleblower function enables employees, the management, the Board of Directors of NNIT, business partners, advisors, and people further specified in the updated Whistleblower Policy to report incidents in a secure and confidential way handled by a third party. Incidents can include internal breaches of EU legislation listed in the Whistleblower Directive, severe breaches of other parts of EU law or national law, including financial fraud, bribery and forgery, or other severe matters. The whistleblower function also fulfills the Whistleblower Directive and national implementation legislation. In 2024, no reports were submitted in the whistle- blower system, thus no fines for violating the anti-corruption and anti-bribery laws were given. A notification from this system is received when an incident is reported and submitted through the system. Such notification and report are reviewed by Head of Legal who gets information if there is any incident reported. If any complaints are received, they are monitored on an ongoing basis. In order to ensure that all employees are up-to-date on the Whistleblower function as well as their rights and obligations in this regard, all NNIT employees will undergo regular training in NNIT's Whistleblower The Compliance Function will quarterly provide the Audit Committee with a list of all reports made, information on the result The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 103 Program and all NNIT employees will on an annual basis be obligated to read and understand the NNIT Whistleblower Policy and document it. We do not have specific targets related to impacts, risks and opportunities. However, we track the effectiveness of our policies and actions in relation to the material matter. The effectiveness can be measured by the eVoice employee surveys which covers employee opin- ions and by the number and nature of incidents reported using whistleblowing system. G1-4 G1-9 Incidents of corruption or bribery NNIT is monitoring incidents of corruption and bribery on an ongoing basis through the whistleblower channel and reported incidents through other channels. ESG Accounting Policies Employees trained in ethics and compli- ance: The mandatory ethics and compliance training for employees working at NNIT comprises globally applicable e-learning. All the employees are required to take the training every year. Our whistleblowing policy is existing and up-to-date, and it includes safeguards for reporting irregularities including whistle- blower protection. The policy covers the entire group and is applicable to all of its employees including subsidiaries. The Board is responsible for the implementa- tion of the policy. There have been no confirmed incidents reported related to corruption or bribery. There have been no public legal cases related to corruption or bribery. We have not paid any fine for violation of anti-corrup- tion and anti-bribery laws in the year 2024. The ultimate goal is to have zero cases of corruption or bribery. Number of convictions for violation of anti-corruption and anti-bribery laws: Anti-corruption and anti-bribery instances where any reported undertaking has been found in violation by a court of law. As mentioned, once a year all employees are mandatorily required to take the anti-corruption and anti-bribery training, which is also a part of the onboarding process for the new employees. The board is also required to take this training. Fines for violation of anti-corruption and anti-bribery laws: The fines where any reported undertaking has been found in violation by a court of law. Percentage of functions at risk: Functions at risk of corruption and/anti- bribery as a percentage of total functions at NNIT. The functions at risk are covered by training of Business code of conduct policy of NNIT. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 104 Appendix II: ESRS datapoints that derive from other EU legislation The table below outlines all data points derived from other EU legislation, as specified in ESRS 2 Appendix B. It indicates where these data points appear in our report and highlights those assessed as Non-material. The non-applicable (N/A) disclosure requirements are datapoints that are considered material but are deemed non-applicable due to information materiality.. Disclosure requirement Benchmark regulation Material/ Non-material ESRS Data point SFDR Pillar 3 EU climate law Page ESRS 2 ESRS 2 GOV-1 GOV-1 21 d 21 e Board's gender diversity ratio Material Material 41 41 Percentage of independent board members Disclosure of mapping of information provided in Sustainability Statements about due diligence process ESRS 2 ESRS 2 ESRS 2 ESRS 2 ESRS 2 ESRS 2 ESRS 2 ESRS 2 ESRS E1 ESRS E1 ESRS E1 GOV-4 SBM-1 SBM-1 SBM-1 SBM-1 SBM-1 SBM-1 SBM-1 E1-1 30; 32 40 d i 40 d ii 40 d ii 40 d iii 40 d iii 40 d iv 40 d iv 14 Material N/A 42 Undertaking is active in fossil fuel (coal, oil and gas) sector Undertaking is active in chemicals production Revenue from chemicals production N/A N/A Undertaking is active in controversial weapons Revenue from controversial weapons N/A N/A Undertaking is active in cultivation and production of tobacco Revenue from cultivation and production of tobacco Transition plan to reach climate neutrality by 2050 Undertakings excluded from Paris-aligned Benchmarks GHG emission reduction targets N/A N/A Material N/A 54 58 E1-1 16 (g) 34 E1-4 Material Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) ESRS E1 ESRS E1 ESRS E1 ESRS E1 ESRS E1 ESRS E1 ESRS E1 E1-5 E1-5 E1-5 E1-6 E1-6 E1-7 E1-9 38 N/A Material 37 Energy consumption and mix 59 40-43 44 Energy intensity associated with activities in high climate impact sectors Gross Scope 1, 2, 3 and Total GHG emissions Gross GHG emissions intensity N/A Material 60 61 53-55 56 Material GHG removals and carbon credits Non-material N/A: phase in 66 Exposure of the benchmark portfolio to climate-related physical risks Disaggregation of monetary amounts by acute and chronic physical risk; Loca- tion of significant assets at material physical risk ESRS E1 E1-9 66 (a); 66 (c) N/A: phase in The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 105 Disclosure requirement Benchmark regulation Material/ Non-material ESRS Data point SFDR Pillar 3 EU climate law Page ESRS E1 ESRS E1 E1-9 E1-9 67 (c) 69 Breakdown of the carrying value of its real estate assets by energy-efficiency classes Degree of exposure of the portfolio to climate-related opportunities N/A: phase-in N/A: phase-in Amount of each pollutant listed in Annex II of the E-PRTR Regulation emitted to air, water and soil ESRS E2 ESRS E3 ESRS E3 ESRS E3 ESRS E3 ESRS E3 ESRS E4 ESRS E4 ESRS E4 ESRS E4 ESRS E4 ESRS E4 ESRS E5 ESRS E5 ESRS S1 ESRS S1 ESRS S1 E2-4 28 Non-material Non-material Non-material Non-material Non-material Non-material Non-material Non-material Non-material Non-material Non-material Non-material Non-material Non-material Non-material Non-material Material E3-1 9 Water and marine resources E3-1 13 Dedicated policy E3-1 14 Sustainable oceans and seas E3-4 28 (c) 29 Total water recycled and reused Total water consumption in m³ per net revenue on own operations E3-4 ESRS 2- SBM 3 - E4 ESRS 2- SBM 3 - E4 ESRS 2- SBM 3 - E4 E4-2 16 (a) i 16 (b) 16 (c) 24 (b) 24 (c) 24 (d) 37 (d) 39 Sustainable land / agriculture practices or policies Sustainable oceans / seas practices or policies Policies to address deforestation Non-recycled waste E4-2 E4-2 E5-5 E5-5 Hazardous waste and radioactive waste Risk of incidents of forced labour Risk of incidents of child labour ESRS 2- SBM3 - S1 ESRS 2- SBM3 - S1 S1-1 14 (f) 14 (g) 20 Human rights policy commitments 73 73 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8 ESRS S1 ESRS S1 ESRS S1 ESRS S1 ESRS S1 S1-1 S1-1 S1-1 S1-3 S1-14 21 Material Non-material Material 22 Processes and measures for preventing trafficking in human beings Workplace accident prevention policy or management system Grievance/complaints handling mechanisms 23 73-74 76 32 (c) Material 88 (b) and (c) Number of fatalities and number and rate of work-related accidents Material 84 The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 106 Disclosure requirement Benchmark regulation Material/ Non-material ESRS Data point SFDR Pillar 3 EU climate law Page ESRS S1 ESRS S1 ESRS S1 ESRS S1 ESRS S1 ESRS S4 ESRS S4 ESRS S4 ESRS G1 ESRS G1 ESRS G1 ESRS G1 S1-14 S1-16 S1-16 S1-17 S1-17 S4-1 S4-1 S4-4 G1-1 G1-1 G1-4 G1-4 88 (e) 97 (a) 97 (b) 103 (a) 104 (a) 16 Number of days lost to injuries, accidents, fatalities or illness Unadjusted gender pay gap Material Material Material Material Material Material Material Material Material Material Material Material 84 85 Excessive CEO pay ratio 85 Incidents of discrimination 85 Non-respect of UNGPs on Business and Human Rights and OECD Policies related to consumers and end-users 85 90-91 90-91 94-95 99-101 99-101 103 17 Non-respect of UNGPs on Business and Human Rights and OECD guidelines Human rights issues and incidents 35 10b United Nations Convention against Corruption paragraph 10 (b) Protection of whistle- blowers paragraph 10 (d) Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a) Standards of anti- corruption and anti- bribery paragraph 24 (b) 10d 24a 24a 103 The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 107 Appendix III: Disclosure requirements and incorporation by reference The tables below provide an overview of all ESRS disclosure requirements included in ESRS 2 and the topical standards that are material to NNIT. These standards have informed the preparation of our Sustainability statements. Disclosure requirements from topical standards E, E3, E4, E5, S2, and S3 have been excluded, as they were deemed immaterial based on our materiality assessment. The tables serve as a guide to locate specific disclosure requirements within the Sustainability Statements. Additionally, they indicate where information outside the Sustainability Statements - referenced in the management’s review or financial statements within this annual report - can be found. For disclosure requirements where no information is available, no reference is provided. Disclosure requirement Section/report Page(s) ESRS 2 BP-1 General Disclosures General Disclosures BP-1 35-52 37 General basis for preparation of the sustainability statement Disclosures in relation to specific circumstances Datapoints that derive from other EU legislation The role of the administrative, management and supervisory bodies Number of executive members BP-1 BP-1 37 BP-1 BP-1, Appendix III 38, 107-109 20-23, 39-40 20-23, 39-40 20-23, 39-40 GOV-1 GOV-1 GOV-1 Corporate Governance (MR), GOV-1, GOV-2, GOV-3 Corporate Governance (MR), GOV-1, GOV-2, GOV-3 Corporate Governance (MR), GOV-1, GOV-2, GOV-3 Information about representation of employees and other workers Information about identity of administrative, management and supervisory bodies or individual(s) within body responsible for oversight of impacts, risks and opportunities GOV-1 GOV-1 Corporate Governance (MR), GOV-1, GOV-2, GOV-3 Corporate Governance (MR), GOV-1, GOV-2, GOV-3 20-23, 39-40 20-23, 39-40 The undertaking shall disclose the composition of the administrative, management and supervisory bodies, their roles and responsibilities and access to expertise and skills with regard to sustainability matters Disclosure of how body's or individuals within body responsibilities for impacts, risks and opportunities are reflected in undertaking's terms of refer- ence, board mandates and other related policies GOV-1 GOV-1 GOV-1 GOV-1 GOV-2 GOV-3 GOV-4 GOV-5 SBM-1 SBM-2 SBM-3 SBM-3 Corporate Governance (MR), GOV-1, GOV-2, GOV-3 GOV-1, GOV-2, GOV-3 GOV-1, GOV-2, GOV-3 GOV-1, GOV-2, GOV-3 Corporate Governance (MR) Corporate Governance (MR) GOV-4 20-23, 39-40 39-40 39-40 39-40 20-23 20-23 42 Description of how oversight is exercised over management-level position or committee to which management's role is delegated to Information about reporting lines to administrative, management and supervisory bodies Disclosure of how dedicated controls and procedures are integrated with other internal functions Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies Integration of sustainability-related performance in incentive schemes Statement on sustainability due diligence Risk management and internal controls over sustainability reporting Risk Management (MR), SBM-3 Strategy (MR), E1-1, SBM-3, IRO-1 IRO-1 24-26, 50 14, 47, 50, 54 47 Strategy, business model and value chain (products, markets, customers) Interests and views of stakeholders Material impacts, risks and opportunities and their interaction with strategy and business model Significant risk of incidents of forced labour or compulsory labour SBM-3 50 S1-1 73 The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 108 Disclosure requirement Section/report Page(s) 73 SBM-3 Countries or geographic areas with operations considered at significant risk of incidents of forced labour or compulsory labour. Type of operations at significant risk of incidents of child labour S1-1 SBM-3 S1-1 73 SBM-3 Countries or geographic areas with operations considered at significant risk of incidents of child labour Description of the process to identify and assess material impacts, risks and opportunities Description of extent to which and how process to identify, assess and manage opportunities is integrated into overall management process Disclosure requirements in ESRS covered by the undertaking’s sustainability statement Transition plan for climate change mitigation S1-1 73 IRO-1 GOV-1 48 IRO-1 IRO-1 47 IRO-2 Appendix III 107-109 E1-1 E1-1 E1 ESRS , SBM-3 Risk assessment (MR) E1-2 54 ESRS 2 SBM-3 ESRS 2 IRO-1 E1-2 Material impacts, risks and opportunities, and their interaction with strategy and business model Description of the processes to identify and assess material climate-related impacts, risks and opportunities Policies related to climate change mitigation and adaptation 43, 55 24-26, 43, 55 56 57 E1-3 Actions and resources in relation to climate change policies E1-3 E1-4 Targets related to climate change mitigation and adaptation E1-4 58 E1-5 Energy consumption and mix E1-5, E1 Accounting Policies E1-6, E1 Accounting Policies S1-2 59, 62-63 60, 62-63 75 E1-6 Gross Scopes 1, 2, 3 and total GHG emissions ESRS 2 SBM-2 ESRS 2 SBM-3 Interests and views of stakeholders Material impacts, risks and opportunities and their interaction with strategy and business model S1 ESRS 2, SBM-3 72 Explanation of how the undertaking's strategy and business model impact its workforce, including whether they create, worsen, or reduce significant material impacts, and how the strategy and business model are adjusted to address these impacts. S1 SBM-2 S1-1 S1 ESRS 2 SBM-3 S1-1 72 73-74 Policies related to own workforce S1-2 Processes for engaging with own workers and workers’ representatives about impacts Processes to remediate negative impacts and channels for own workers to raise concerns Policies regarding protection against retaliation for individuals that use channels to raise concerns or needs are in place S1-2 75 S1-3 S1-3, G1-1, G1-3 S1-3, G1-1, G1-3 72, 76, 101, 103 76, 101, 103 S1-3 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions S1-4 S1-4 S1-4 S1-5 S1-4 S1-4 77-78 77-78 72 Considerations of external developments when dependencies turning into risks Process(es) to manage material risks related to own workforce are integrated into its existing risk management process(es). Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities S1 ESRS 2 SBM-3 S1-5 79-80 S1-6 S1-6 S1-8 Characteristics of the undertaking’s employees S1-5, S1-6 Results for the year S1-8 79-80, 81 131 The most representative number of headcount in the financial statements Collective bargaining coverage and social dialogue 82 The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 109 Disclosure requirement Section/report Page(s) S1-9 Diversity metrics Adequate wages Health and safety metrics S1-9 S1-10 S1-14 S1-16 83 S1-10 S1-14 S1-16 84 84 85 Compensation metrics (pay gap and total compensation) Disclosure of the number of work-related incidents and/or compliants and severe human rights impacts within its own workforce, and any related material fines, sanctions or compensation for the reporting period. S1-17 S1-17 S1-17 S1-17 S1-17 S1-17 S1-17 S1-17 S1-17 S1-17 S1-17 S1-17 85 85 85 85 85 85 Number of incidents of discrimination , including harassment Number of compliants filed through channels for people in own workforce to raise concerns Number of compliants filed to National Contact Points for OECD Multinational Enterprises Amount of fines, penalties, and compensation for damages as result of incidents of discrimination, including harassment and compliants filed Number of severe human rights issues and incidents connected to own workforce Number of severe human rights issues and incidents connected to own workforce that are cases of non respect of UN Guiding Principles and OECD Guidelines for Multinational Enterprises S1-17 S1-17 S1-17 85 85 S1-17 No severe human rights issues and incidents connected to own workforce have occurred Amount of fines, penalties, and compensation for severe human rights issues and incidents connected to own workforce Material impacts, risks and opportunities and their interaction with strategy and business model Policies related to consumers and end-users S1-17 S1-17 85 ESRS 2, SBM-3 S4-1 ESRS 2 SBM-3 S4-1, G1-1 S4-2, G1-3 S4-3, G1-1 89-90 90-91, 99-101 92, 102 S4-2 Processes for engaging with consumers and end-users about impacts S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns 93, 99-101 Taking action on material impacts on consumers and end-users, and approaches to mitigating material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions S4-4 S4-4, G1-4 94-95, 103 96 S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities The role of the administrative, supervisory and management bodies Description of the processes to identify and assess material impacts, risks and opportunities Business conduct policies and corporate culture S4-5 ESRS 2, GOV-1 ESRS 2, IRO-1 G1-1 G1-1, GOV-1, GOV-2, GOV-3 39-41, 99-101 47-52 ESRS 2 SBM-3, IRO-1 G1-1 G1-3 G1-4 99-101 G1-3 Prevention and detection of corruption and bribery 102-103 103 G1-4 Incidents of corruption or bribery NNITꢀꢁAnnual Report 2024 110 Financial Statements Consolidated Financial Statements Parent Company Financial Statements Statements The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 111 Consolidated Financial Statements Income Statement Statement of Comprehensive Income Statement of Cash Flows Balance Sheet Statement of Changes in Equity Notes The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 112 Revenue and Earnings slightly higher gross profit margin of 25.9% (2023: 25.8%) in 2024. The development was impacted by an increase in cost of goods sold to DKK 1,372 million (2023: DKK 1,283 million) in 2024 reflecting the higher revenue and activity level. The 2024 operating profit increased slightly to DKK 48 million (2023: DKK 47). Parent Company Profit for the year amounted to DKK 6 million (2023: DKK 44 million). Revenue NNIT grew revenue by 7.1% to DKK 1,851 million (2023: DKK 1,728 million) in 2024 driven by strong growth in Region Denmark and Region Europe, and a decline in the Group’s activities in Region US and Asia. Financial items The Group reported a small increased net financial expense of DKK 33 million (2023: expense of DKK 30 million) in 2024 mainly due to lower interest income in the financial year. Earnings NNIT’s sales and marketing costs increased by 8% to DKK 68 million (2023: DKK 63 million), and administrative expenses increased by 11% to DKK 294 million (2023: DKK 266 million) in 2024 primarily driven by the growth in the business. Gross profit for the Group increased to DKK 479 million (2023: DKK 445 million) for a Income Tax Income tax was an expense of DKK 14 million (2023: DKK 11 million) in 2024 corresponding to an effective tax rate of 94.3% (2023: 64.8%). The tax rate level is impacted by non-deduct- ible costs. Earnings Operating profit before special items, DKKm Profit margin, % Revenue DKK million The Group generated operating profit before special items of DKK 117 million (2023: DKK 116 million) in 2024 slightly higher than 2023 as higher gross profit was offset by increases in sales and marketing costs and administra- tive expenses. Profit for the year Profit from continuing operations was DKK 1 million (2023: DKK 6 million) in 2024. 1,851 1,728 116 117 1,500 6,3% Comprehensive income 6,7% -0,5% Special items (costs) amounted to DKK 69 million (2023: cost of DKK 69 million) in 2024 and related mainly to employee benefit costs as part of contingent consideration agree- ments and restructuring costs, cf. note 2.5. Total comprehensive income came to DKK 42 million (2023: DKK (12) million) in 2024 primarily due to the development in profit for the year and exchange rate adjustments related to subsidiaries. -7 2022 2023 2024 2022 2023 2024 The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 113 Income Statement Statement of Comprehensive Income for the year ended December 31 for the year ended December 31 DKK million Note 2024 2023 DKK million Note 2024 1 2023 30 Revenue 2.1 1,851 1,372 479 1,728 1,283 445 Net profit/(loss) for the year Other comprehensive income: Cost of goods sold Gross profit 2.2, 2.3, 2.4, 5.1 Items that will not subsequently be reclassified to the income statement: Sales and marketing costs 2.2, 2.4 2.2, 2.4 68 294 117 63 266 116 Remeasurement related to defined benefit pension obligations 3.7 - - (1) Administrative expenses Tax on other comprehensive income related to defined benefit pension obligations Operating profit before special items - Special items, costs 2.5 69 69 Items that may be reclassified subsequently to the income statement, when specific conditions are met: Operating profit/(loss) 48 47 Exchange rate adjustments related to subsidiaries (net) 46 (19) Financial income 4.1 4.1 11 44 15 16 46 17 Financial expenses Tax related to exchange rate adjustments related to subsidiaries (net) Profit/(loss) before income taxes (5) 2 Income taxes 2.6 3.9 14 11 Other comprehensive income, net of tax Total comprehensive income 41 (18) Profit/(loss) from continuing operations 1 6 42 12 Profit/(loss) from discontinued operations - 24 Net profit for the year 1 30 Total comprehensive income arises from: Discontinued operations - 24 Earnings per share from continuing operations Earnings per share (DKK) Continuing operations 42 (12) 4.2 4.2 0.03 0.03 0.24 0.24 Diluted earnings per share (DKK) Earnings per share from total operations Earnings per share (DKK) 4.2 4.2 0.03 0.03 1.20 1.20 Diluted earnings per share (DKK) The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 114 Cash Flows Cash flow from operating activities In 2024, the cash flow from operating activities was an outflow of DKK 6 million (2023: Outflow of 105 million). The change in working capital - an outflow of DKK 30 million for the year - was negatively impacted by payment of liabilities related to the sale of the infrastructure busi- ness and separation of IT-systems, partly offset by the sale of the vendor loan note. Further payment of interest and taxes contributed negatively to cash flow from operating activities. Free cash flow Outflow of DKK 652 million) in 2024. The Group repaid a credit facility in 2023 in connection with refinancing of its debt and the divestment of the infrastructure business. NNIT generated a free cash outflow of DKK 40 million (2023: Inflow of DKK 698 million) in 2024. The 2023 figures are impacted by the divestment of the infrastructure busi- ness. The continuing business generated a free cash outflow of DKK 109 million in 2023. Cash flow from investing activities The cash flow from investing activities changed to an outflow of DKK 34 million (2023: Inflow of DKK 900 million) in 2024. 2023 was impacted positively by the divestment of the infrastructure business. The outfow in 2024 was primarily due to investment in IT-systems including the new ERP-system. Net cash flow The net cash flow for 2024 was negative by DKK 96 million (2023: Positive by DKK 46 million). Cash flow from financing activities The Group generated a cash outflow from financing activities of DKK 56 million (2023: Cash flows from operating activities Cash flows from investing activities Free cash flow DKK million DKK million DKK million -4 -6 -34 -40 -80 -105 -109 -212 -292 2022 2023 2024 2022 2023 2024 2022 2023 2024 The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 115 Statement of Cash Flows for the year ended December 31 DKK million Note 2024 1 2023 DKK million Note 2024 2023 Net profit/(loss) for the year 30 Deposit (paid)/received, net 3.5 (4) (56) 4 4 (66) Instalments on lease liabilities Drawn/(repaid) on credit facilities Cash flow from financing activities 4.3, 4.4 Reversal of non-cash items 5.3 2.6 73 (16) (34) 24 (14) (40) 36 (590) (652) Interest (paid)/received (56) Income taxes (paid)/received Cash flow before changes in working capital 12 Cash flow from financing activities, discontinued - - Cash flow from financing activities, continuing (56) (652) Changes in working capital 5.4 (30) (214) Cash flow from operating activities (6) (202) Net cash flow (96) 46 Hereof cash flow from operating activities, discontinued - (97) Cash and cash equivalents at the beginning of the year 254 158 208 Hereof cash flow from operating activities, continuing (6) (105) Cash and cash equivalents at the end of the year 5.4 254 Capitalization of intangible assets Purchase of tangible assets Sale of tangible assets 3.1 (51) (18) 1 (24) (46) 2 The changes in cash flow cannot all be derived directly from the income statement and balance sheet. 3.3, 5.4 Sublease payments received Divestment of instrastructure business Paid transaction costs 4.3 3.9 3.9 34 - 18 1,001 (51) 900 - Cash flow investing activities (34) Hereof cash flow from investing activities, discontinued - 904 Hereof cash flow from investing activities, continuing (34) (4) The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 116 Balance sheet and equity Assets Return on invested capital Financing gible assets. NNIT further had undrawn Total assets have declined to DKK 1,707 million (2023: DKK 1,977million) at December 31, 2024. The decline was primarily due to the sale of the vendor loan note and change in cash and cash equivalents. NNIT improved the return on invested capital (ROIC) of 3.5% (2023: 2.9%) in 2024 driven by lower invested capital. The Group’s net interest-bearing debt increased to DKK 147 million (2023: DKK 77 million) in 2024 primarily due to invest- ments in tangible and intangible assets. committed credit facilities in the amount of DKK 129 million (2023: DKK 33 million) at the end of 2024. Equity The Group’s credit facility has been increased to DKK 400 million (2023: DKK 300 million) and is subject to standard financial covenants, cf. note 4.4. Equity amounts to DKK 870 million (2023: DKK 827 million) at the end of the year for a solvency ratio of 51.0% (2023: 41.8%). No dividends have been proposed for 2024. On December 31, 2024, net cash and cash equivalents had decreased to DKK 158 million (2023: DKK 254 million) driven by the investments in tangible and intan- Parent Company Total assets for the Parent Company is DKK 1,593 million (2023: DKK 1,805 million) and Equity is DKK 703 million (2023: 696 million). Net interest-bearing debt Equity Return on invested capital DKK million DKK million % 3.5 2.9 869 827 814 805 147 77 -19.2 2022 2023 2024 2022 2023 2024 2022 2023 2024 The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 117 Balance Sheet as of December 31 ASSETS EQUITY AND LIABILITIES DKK million DKK million Note 2024 2023 Note 2024 2023 Share capital 4.2 4.2 250 (1) 558 63 250 (1) 556 22 Intangible assets Tangible assets Lease assets 3.1 3.3 4.3 3.4 2.6 3.5 767 15 127 13 29 12 6 704 8 Treasury shares Retained earnings Other reserves Total equity 45 Transition cost Deferred taxes Deposits 14 870 827 78 Lease liabilities 4.3 3.4 3.7 3.8 113 12 5 9 - 171 - 310 13 - 6 27 12 267 10 335 31 Prepayments received, transition cost Employee benefit obligations Provisions Trade payables Credit facilities Trade receivables Other receivables Total non-current assets 25 - 214 1,119 969 4.4 Inventories 1 3 2 3 Other non-current liabilities Total non-current liabilities Transition cost 3.4 3.6, 5.6 3.4 Trade receivables Work in progress Other receivables Prepayments 470 16 451 67 Prepayments received, transition cost Prepayments received, work in progress Deferred income Lease liabilities Employee benefit obligations Provisions Trade payables Employee costs payables Tax payables Credit facilities 3.4 3.4 3.4 4.3 3.7 3.8 4 30 27 17 19 20 74 67 51 57 15 98 122 70 - 39 44 25 27 Tax receivables 2.6 4.4 26 10 28 Cash and cash equivalents Total current assets 158 738 254 858 117 94 22 100 69 2.6 Total assets 1,707 1,977 Other current liabilities 241 Total current liabilities 527 815 Total equity and liabilities 1,707 1,977 The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 118 Statement of Changes in Equity as of December 31 Other reserves Share capital Treasury shares Retained Exchange rate Total other reserves Proposed dividends DKK million Note earnings adjustments Tax Total 2024 Balance at the beginning of the year 250 (1) 556 27 (5) 22 - 827 Net profit for the year 1 - 1 41 42 Other comprehensive income for the year Total comprehensive income for the year 46 (5) 41 - 1 46 (5) 41 Transactions with owners: Transfer of treasury shares Share-based payments 5.1 4.2 1 1 Balance at the end of the year 250 (1) 558 73 (10) 63 - 870 The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 119 Statement of Changes in Equity as of December 31 Other reserves Share capital Treasury shares Retained Exchange rate Total other reserves Proposed dividends DKK million Note earnings adjustments Tax Total 2023 Balance at the beginning of the year 250 (1) 526 46 (7) 39 - - 814 Net profit for the year 30 - 30 (18) 12 Other comprehensive income for the year Total comprehensive income for the year (1) (19) 2 (17) (17) - - 29 (19) 2 Transactions with owners: Transfer of treasury shares Share-based payments - - 1 - - - 1 5.1 4.2 Balance at the end of the year 250 (1) 556 27 (5) 22 - 827 The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 120 Notes to the Consolidated Financial Statements 1. Basis of preparation 3. Operating assets and liabilities 5. Other disclosures 1.1 Summary of material accounting policies 121 122 3.1 Intangible assets 3.2 Impairment test 3.3 Tangible assets 136 138 139 141 142 142 143 144 145 5.1 Long-term incentives 155 156 156 1.2 Summary of key accounting estimates and judgements 5.2 Fee to statutory auditors 5.3 Reversal of non-cash items 1.3 Changes in accounting policies, estimates and disclosures 3.4 Contract balances 3.5 Deposits 5.4 Statement of cash flows – specifications 156 123 124 129 5.5 Contingent liabilities, other contractual obligations and legal proceedings 1.4 General accounting policies 1.5 Financial definitions 157 157 158 3.6 Trade receivables 3.7 Employee benefit obligations 3.8 Provisions 5.6 Related party transactions and ownership 5.7 Events after the balance sheet date 2. Results for the year 3.9 Discontinued operations 2.1 Segment information 2.2 Employee costs 130 131 133 4. Capital structure and financing items 2.3 Development costs 4.1 Financial income and expenses 147 2.4 Amortization, depreciation and impairment losses 4.2 Share capital, distribution to shareholder and earnings per share 133 133 134 147 148 2.5 Special items 2.6 Income taxes 4.3 Leases 4.4 Financial assets and liabilities, continuing operations 151 The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 121 1. Basis of preparation 1.1 Summary of material accounting policies The consolidated financial statements are prepared in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish financial statements Act. The Consolidated Financial Statements are prepared in accordance with IFRS Accounting Standards and interpretations applicable to the 2024 financial year. Recognition of revenue Revenue is the fair value of the transaction price or receivable from the sale of our services and customized. IT applications and is the gross sales price less VAT and any price reductions in the form of discounts and rebates. Revenue can be recognized over time or at a point in time. For fixed priced projects the proportion of revenue to be recognized in a particular period is calcu- lated according to the percentage of completion of the project. For most contracts this is meas- ured by reference to the costs of performing the contract incurred up to the relevant balance sheet date as a percentage of the total estimated costs of performing the contract. Reference to cost is assessed to be the most appropriate method as incurred hours are the value driver for the projects. The sales value agreed in the contract is recognized over the contract period using above method. For time-and material contracts, we recognize revenue as performance takes place based on actual hours incurred. Contracts where the recognized revenue from the work performed exceeds progress billings are recognized as 'work in progress' in the balance sheet under assets. Contracts for which progress billings exceed the revenue are recognized as 'prepayments received' under liabilities. If it is likely that the total costs in relation to a long- term contract will exceed the total revenue on a specific project, the expected loss is recognized immediately in the income statement in the current period. The consolidated financial statements of NNIT A/S for the year ended 31 December 2024 were author- ised for issue in accordance with resolution of the Board of directors as of the 18th of February 2025, with the aim to have shareholders approval on the annual general meeting scheduled for 13th of March 2025. Revenue is recognized over time when an asset on behalf of a customer is created with no alternative use and NNIT has an enforceable right to payment for performance completed year to date, or the customer obtains control of a service and thus has the ability to direct the use and obtain the benefit from the service. NNIT has two different types of businesses 'projects' and 'Service Level agreements' (SLA) where revenue recognition is treated differently. Refer to note 1.4 General accounting policies for further details. Measurement basis The consolidated financial statements have been prepared under the historical cost convention. The accounting policies set out below have been applied consistently in the preparation of the consolidated financial statements for all the years presented. Projects The project business is characterized by being deliveries which in nature are negotiated contracts based on consumption and typically comprise advi- sory, design and development activities. Revenue will be recognized over time, as the 'no alternative use' criteria's are met, using 'the percentage of completion method'. Accounting policies Considering all the accounting policies applied, Management regards the following as the most material accounting policies for the recognition and measurement of reported amounts: The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 122 1.2 Summary of key accounting estimates and judgements completion as of the date of review. Such changes result in revisions to revenue attributable to work performed up until the date of revision. The effect of such changes in estimates is recognized as a change to revenue in the period in which the revisions are determined The preparation of financial statements under IFRS requires the use of certain key accounting esti- mates. Determination of the carrying amount of some assets and liabilities requires Management to make judgements, estimates and assumptions about future circumstances. Estimates and assumptions are based on historical experience and other factors and are regarded by Management as reasonable in the circumstances but are inherently uncertain and unpredictable and therefore the actual outcome may differ from these estimates. Management considers judgements and estimates under the following items as significant to these consolidated financial statements: Estimates: • Impairment test, goodwill (note 3.2) • Other intangible assets (note 3.1) • Contract balances (note 3.4) Judgements: • Special items term average market growth rates. Determining the expectations and assumptions requires significant Management judgement. The estimated value in use can be highly sensitive to the measurement of the expectations and assumptions. Other intangible assets IT development projects include NNIT's ERP system which is used in the daily operations of the group, other internal IT-systems and developed applica- tions for customer services. Initial capitalisation of costs is based on manage- ment’s judgement that technological and economic feasibility is confirmed. In determining the amount to be capitalised for appliations developed for customer services Management makes assumptions regarding the expected future cash generation of the project. The determination of the value in use of the CGU's to which Other intangible assets is allocated is covered by the same impairment test that is performed for Goodwill. Special Items Identifying and separating special income and cost items from other items in the income statement involves judgement from Management. These items are carefully considered in order to ensure correct presentation. Climate-related risks Group Management has considered the impact of climate related change on the consolidated financial statements. the review did not identify any material financial impacts and the Executive Management has assessed that the effects of climate change do not have significant influence on the estimates or judgements in the consolidated financial state- ments. Work in Progress The determination of the percentage of completion of work in progress related to fixed price projects is based on estimates of future costs, hours and mate- rials. Each project is unique in their design. Manage- ment makes judgements on individual assessments of specific projects and their associated risk from the on-going monitoring, to identify any deviations from estimates. Adjustments to cost estimates may be made peri- odically following Management review, which may result in a re-assessment of the percentage of Impairment test For the goodwill impairment test, a number of esti- mates are made on the development in revenues, gross profits, operating margins, future capital expenditures, discount rates and growth expec- tations in the terminal period. These estimates are based on assessments of the current and future development in the CGU's and are based on historical data and assumptions of future expected market developments, including expected long- The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 123 1.3 Changes in accounting policies, estimates and disclosures NNIT has applied relevant new or amended IFRS Accounting Standards and interpretations (IFRIC) as adopted by the EU and which are effective for the financial year 1 January – 31 December 2024. NNIT has assessed that the new or amended standards and interpretations. The amendments to IAS 1 provide guidance and examples to help entities in classifying liabilities as either current or non-current and related disclosures. The amendments have had an impact on NNIT Group’s disclosures related the Group’s loan facilities and related covenants, but not on the measurement, recognition or presentation of any items in NNITs Annual Report for 2024. required to classify all income and expenses within the statement of profit or loss into one of five cate- gories: operating, investing, financing, income taxes and discontinued operations, whereof the first three are new. It also requires disclosure of newly defined manage- ment-defined performance measures, subtotals of income and expenses, and includes new require- ments for aggregation and disaggregation of finan- cial information based on the identified ‘roles’ of the primary financial statements (PFS) and the notes. In addition, narrow-scope amendments have been made to IAS 7 Statement of Cash Flows, which include changing the starting point for determining cash flows from operations under the indirect method, from ‘profit or loss’ to ‘operating profit or loss’ and removing the optionality around classifi- cation of cash flows from dividends and interest. In addition, there are consequential amendments to several other standards. IFRS 18, and the amendments to the other stand- ards, is effective for reporting periods beginning on or after 1 January 2027, but earlier application is permitted and must be disclosed. IFRS 18 will apply retrospectively. The Group is currently working to identify all impacts the amendments will have on the primary financial- statements and notes to the financial statements. 1.3.1 Standards issued but not yet effective The new and amended standards and interpreta- tions that are issued, but not yet effective, up to the date of issuance of the Group’s financial statements are disclosed below. The Group intends to adopt these new and amended standards and interpreta- tions, if applicable, when they become effective. Only changes expected to have an impact on on the Group’s financial position, performance, presenta- tion and/or disclosures is listed. IFRS 18 Presentation and Disclosure in Financial Statements In April 2024, the IASB issued IFRS 18, which replaces IAS 1 Presentation of Financial Statements. IFRS 18 introduces new requirements for presentation within the statement of profit or loss, including spec- ified totals and subtotals. Furthermore, entities are The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 124 1.4 General accounting policies 12 months of the acquisition date are adjusted to the initial goodwill. Acquired entities are recognized in the consoli- dated financial statements at the date control was achieved. • the translation of subsidiaries’ net assets at the beginning of the financial year at exchange rates at the balance sheet date and • the translation of subsidiaries’ income statements at exchange rates at the balance sheet date • exchange rate adjustments of loans, which are seen as part of the net investment in foreign subsidiaries Principles of consolidation The consolidated financial statements include the financial statements of NNIT A/S (parent company) and entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. NNIT A/S and its subsidiaries are collectively referred to as the Group. The consolidated financial statements are based on the financial statements of the Parent Company and the subsidiaries, and are prepared by combining items of a similar nature and eliminating intercom- pany transactions, shareholdings, balances and unrealized intercompany profits and losses. The consolidated financial statements are based on financial statements of Group companies prepared in accordance with the Group’s accounting policies. An impairment loss is recognised for any initial or subsequent write-down of the asset to fair value less costs to sell. A gain is recognised for any subse- quent increases in fair value previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset is recognised at the date of derecognition. Translation of foreign currency Functional currency and presentation currency The financial statement items for each of the Group’s entities are measured in the currency used in the economic environment in which the entity operates (functional currency). The consolidated financial statements are presented in Danish kroner (DKK). Acquisition of subsidiaries On acquisition of subsidiaries, the acquisition method is applied, and identifiable assets and liabil- ities are recognized and generally measured at fair value at the date control was achieved. Identifiable intangible assets are recognized if they can be separated, and the fair value can be reliably measured. Deferred tax on revaluations is recog- nized. Any positive differences between fair value of consideration transferred and fair value of net assets acquired on acquisition of subsidiaries are recognized as goodwill. Consideration transferred consists of shares, contingent consideration as well as cash and cash equivalents. Goodwill is not amortized but is tested annually for impairment. Transactions costs are recognized as operating costs as they have incurred. If the initial accounting for business combination can be determined only preliminary by the end of the period in which the combination is affected, adjustments made to the provisional fair value of acquired net assets or cost of the acquisition within are recognized in ‘exchange rate adjustments’ in other comprehensive income and presented in a separate reserve within equity. Costs Cost of goods sold The cost of goods sold comprises costs paid in order to generate revenue for the year, including amortization and depreciation, share-based compensation and salaries. Transactions and balance sheet Transactions in foreign currencies within the year are translated into the functional currency at the exchange rate at the transaction date. Receivables and liabilities in foreign currencies that have not been settled at the balance sheet date are trans- lated at the exchange rate at the balance sheet date. Realized and unrealized exchange rate adjustments are recognized in the income statement under “financial income and expenses”. Currency translation for foreign operations in the financial statements of foreign subsidiaries' balance sheet items are translated to Danish kroner (DKK) at the exchange rate at the balance sheet date, and income statement items are translated using the average exchange rate. Exchange differences arising from: Sales and marketing costs Sales and marketing costs comprise costs in the form of salaries and share-based compensation for sales and marketing staff, advertising costs, and amortization and depreciation. Segment Reporting Segment performance is evaluated on the basis of the operating profit consistent with the consoli- dated financial statements. Operating segments are reported in a manner consistent with the internal reporting provided to Group Management and the Board of Directors. Administrative expenses Administrative expenses comprise costs in the form of share-based compensation and salaries for administrative staff and amortization and depreci- ation. Continuing and Discontinued operations Separation of operations into continuing and discontinued operations is based on an identifica- tion of contracts and revenues, direct employees and costs as well as identification of time spend by employees in one category related to the other. Shared costs are split based on allocation between the two categories based on estimates future split. Special Items Special items comprise costs or income that cannot be attributed directly to the Group’s ordinary activ- ities and are non-recurring of nature. Such costs and income include the cost related to significant restructuring of the cost base and processes as well as restructuring costs related to resignation of The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 125 1.4 General accounting policies – continued employees. Further special items include significant cost related to M&A activities, earn-out payments related to acquisitions where earn-out is in part subject to the selling shareholders' continued employment during the accrual period, redun- dancy cost related to members of Group Manage- ment, impairment of assets and gains and losses regarding disposal of activities or subsidiaries. Special items are shown separately in the Group to give a true and fair presentation of the Group’s ordi- nary operations. Deferred tax assets are recognized in the balance sheet under non-current assets. Deferred tax liabilities are recognized in the balance sheet under non-current liabilities. Deferred tax is measured on the basis of the tax rules and tax rates that according to current legisla- tion at the balance sheet date will apply at the time of the expected realization of the deferred tax asset or settlement of the deferred tax liability. Any changes to deferred tax caused by changes in statutory tax rates are recognized in the income statement. For Danish tax purposes, NNIT A/S and SCALES A/S is assessed jointly with the Novo Group. Income tax is allocated between the companies in proportion to their taxable incomes (full allocation with compen- sation concerning tax losses). The jointly assessed companies are included in the Tax Prepayment Scheme. The total contract value of the outsourcing contracts will be split into the different perfor- mance obligations depending on the activities to be delivered. NNIT will profit align between the perfor- mance obligations within the contract (expected cost plus margin approach). These activities transfer services to the customer as performed. The transformation phase typically starts after the successful completion of transition and ends when the environment has reached the agreed future state. In some circumstances the transformation phase will take place in parallel with the transition phase. Transition Transition is: • Basic transfer of services and responsibilities • The minimum activities required that enable the delivery organization to take over operation of the current or similar services for the customer. The transition phase takes place in the period between contract signing and service start up (operation). Activities performed in the transition phase do not transfer services to the customer as they are seen as ‘start-up’ costs and therefore revenue cannot be recog- nized as the activities are performed but will be recog- nized over the operation period. Cost regarding the transition projects is capitalized and depreciated over the contract period. Please refer to ‘Transition cost’. Any prepayments received regarding transition projects will be recognized as revenue over the operation period. Revenue regarding transformation projects is recognized over time as an asset is created with no alternative use and NNIT has an enforceable right to payment and revenue recognition in nature is similar to the project business. Financial items Financial income and expenses comprise interest, realized and unrealized gains and losses from exchange rate adjustments, fair value adjustments on forward contracts and the cumulative value adjustment of these instruments transferred from the hedging reserve within equity. Interest income is recognized on an accrual basis according to the effective interest rate method. Operation of IT systems Revenue from the operation of IT systems is recognized in the period in which the outsourcing services are provided based on amounts billable to a customer (for fixed price components in the contract, revenue is typically recognized on a straight-line basis over the course of a year, while for variable components revenue is recognized based on usage of units, and price lists according to the contract). Service Level Agreements (SLA) The SLA business comprise infrastructure and appli- cation outsourcing services and requires the perfor- mance of certain performance obligations typically defined as service levels. As described below under “Outsourcing contracts”, the revenue under an outsourcing contract will be recognized over time. Tax Income tax comprises current tax and deferred tax for the year, and is recognized as follows: The amount that can be allocated to the net profit for the year is recognized in the income statement, and the amount that relates to items recognized in other comprehen- sive income and/or equity respectively is recognized in other comprehensive income and/ or equity. Deferred tax is measured according to the balance sheet-based liability method on all temporary differ- ences between the carrying amount and tax base of assets and liabilities. Intangible assets Goodwill Goodwill arising from business combinations is recognized and measured as the difference between the total of the fair value of the considera- tion transferred compared to the fair value of identi- fiable net assets on the date of acquisition. Goodwill is not amortized, but the carrying amount is tested at relevant cash generating unit level (CGU-level) for impairment once a year. Transformation Transformation is: • A significant change to future state of the subject. • The full set of activities required for the delivery organization to provide the future state operation of services to the customer. Outsourcing contracts Outsourcing contracts consist of two activities, preparatory project (such as transition and transfor- mation) and operation of the IT systems e.g. applica- tion, servers and infrastructure. These identifiable components are accounted for differently to reflect the substance of the transaction. The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 126 1.4 General accounting policies – continued Goodwill is written down to its recoverable amount through the income statement if lower than the carrying amount. The recoverable amount is determined as the present value of the discounted future net cash flow from the activities goodwill relates to. In calcu- lating the present value, discount rates are applied reflecting the riskfree interest rate with the addition of risks relating to the individual CGU. Intangible assets that are in use and subject to amortization are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Factors that could trigger an impairment test include changes in the economic lifes of similar assets or the relationship with other intangible assets or tangible assets. Intangible assets under construction are tested for impairment once a year. If the carrying amount of intangible assets exceeds the recoverable amount based upon the above indi- cators of impairment, any impairment loss is meas- ured based on discounted future cash flows. Asset residual values and useful life's are assessed and, where required, adjusted on each balance sheet date. Tangible assets are tested for impairment if there are indications of impairment. The carrying amount of an asset is written down to its recover- able amount if the carrying amount exceeds the estimated recoverable amount. The recoverable amount for the asset is determined as the higher of fair value less costs to sell and net present value of future net cash flows from continued use. If the recoverable amount of an individual asset cannot be determined, value in use is determined for the smallest group of assets for which it is possible to determine a recoverable amount. Impairment losses are recognized in the income statement under the relevant functional areas. Depreciation and gains or losses from disposal of tangible assets are recognized in the income state- ment under cost of goods sold, sale and marketing costs and administrative expenses respectively. ments may give rise to a separate asset related to the development of software code that enhances, modifies or creates additional capabilities to the groups application. Costs incurred for these activi- ties are recognised as intangible assets if they meet the recognition criteria and amortised over the usefull life of the software. Lease assets Lease assets are 'right-of-use assets' arising from a lease agreement. Lease assets are initially measured at cost consisting of the amount of the initial measurement of the lease liability, plus any lease payments made to the lessor at or before the commencement date less any lease incentives received and the initial estimate of refurbishment costs and any initial directs costs incurred by NNIT as the lessee. NNIT has three different types of leases: • Rental of premises • Rental of equipment • Company cars The lease assets are depreciated on a straight-line basis over the lease term. The lease asset can be adjusted due to modifications to the lease agree- ment or reassessment of lease term. Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a term of 12 months or less. Low-value assets comprise equip- ment with a value below DKK 100 thousand. IT development projects IT development projects are clearly specified and identifiable projects under development for internal and external use for which the technical feasibility of completing the development project has been demonstrated and resources are available within NNIT. Any development projects that do not meet the criteria for capitalization in the balance sheet are recognized as costs. Development costs meeting the criteria for capital- iztion are measured at cost less accumulated amor- tization and any impairment losses. Development costs include external expenses, salaries, amortiza- tion and depreciation that can be directly attributed to NNIT development activities. Development costs recognized in the balance sheet are amortized from completion of the development using the straight-line method, over the period the asset is expected to generate economic benefits. Straight-line amortization over the expected useful life of the asset: • IT projects: 5-10 years Tangible assets Tangible fixed assets are measured at cost less accumulated depreciation and any impairment losses. Cost price includes the purchase price and costs relating directly to the purchase. Subsequent costs are either included in the carrying amount of the asset or recognized as a separate asset, where there are likely future economic benefits for the Group and the value of the asset can be reliably measured. The depreciable amount of the assets is depreciated on a straight-line basis over the following estimated useful life periods: • Other equipment: 3-10 years • Leasehold improvements: 5-10 years Cloud-based arrangements Software within a cloud-based arrangement is recognised as an intangible asset. Costs incurred to configure or customise, and the ongoing fees to obtain access to the cloud provider's application software, are recognised as expenses when the services are received. Also internal costs such as cost related to selection of cloud provider, data conversion, training and testing are expensed. Configuration and customisation activities under- taken in implementation of cloud based arrange- The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 127 1.4 General accounting policies – continued Allowance for doubtful trade receivables is made using the expected credit loss model, which uses a lifetime expected loss allowance for all trade receiv- ables. The allowance is deducted from the carrying amount of trade receivables and the amount of the loss is recognized in the income statement under cost of goods sold. Prepayments Prepayments comprise costs incurred for the next financial year. These are usually prepayments for maintenance of hardware and software licenses. At initial recognition NNIT assess each contract individually to assess the likelihood of exercising a potential extension option in the contract. The option to extend the contract period will be included in the calculation of the lease liability if it is reasonably certain that NNIT will exercise the option. When calculating the net present value NNIT has used a discount rate corresponding to the incre- mental borrowing rate. The lease liability is remeasured when changes occur due to modifications to the contract (exten- sion, termination etc.) or indexation. Subleases NNIT has entered into arrangements to sublease part of the Group's property lease agreement, while NNIT retains the primary obligation under the orig- inal lease. NNIT acts as such both the lessee and lessor of the same underlying asset. If a part of the Group's property is subleased under terms transferring substantially all remaining risks and rewards under the head lease to the lessee in the sublease, the right-of-use asset is derecognised, and a lease receivable is recognised at an amount equal to the net investment in the lease. Gain/loss on the derecognised right-of-use asset is recognised in the income statement as special items. During the term of the sublease, the receivable is adjusted based on a pattern reflecting a constant periodic rate of return on the net investment in the lease. Assets classified as held for sale Assets classified as held for sale comprise assets and liabilities for which it is highly likely that the value will be recovered through a sale within 12 months rather than through continued use. Assets and liabilities classified as held for sale are meas- ured at the lower of the carrying amount and fair value less cost to sell at the classification date as “held for sale”. Assets held for sale are not depre- ciated. Impairment losses arising on first classifi- cation as “held for sale” and gains and losses from the subsequent measurement is recognized in the income statement under the items they concern. Work in progress The determination of the percentage of completion of work in progress related to fixed price projects is based on estimates of future costs, hours and mate- rials. Each project is unique in their design. Manage- ment makes judgements on individual assessments of specific projects and their associated risk from the on-going monitoring, to identify any deviations from estimates. Adjustments to cost estimates may be made peri- odically following management review, which may result in a re-assessment of the percentage of completion as of the date of review. Such changes result in revisions to revenue attributable to work performed up until the date of revision. The effect of such changes in estimates is recognized as a change to revenue in the period in which the revi- sions are determined. Employee benefits Wages, salaries, social security contributions, paid annual leave and sick leave, bonuses and non-mon- etary benefits are recognized in the financial year in which the NNIT employee provided the related work service. Contingent Consideration Agreement The contingent consideration for Excellis Health Solutions, SL Controls and Prime4Services is accrued over the period from the acquisition date until the payment is based on expected achieved performance conditioned on employment (projected unit credit method). The cost is recog- nized as wages and salaries under special items in the income statement. Equity Treasury shares Treasury shares are deducted from equity. Acqui- sition/disposal of treasury shares are recognized directly in equity. Transition cost Transition cost consists of cost regarding transition projects, which has been capitalized until operation begins. The cost mainly relates to employee cost and will be amortized over the operation period. Dividend Dividend distribution to the shareholders of NNIT is recognized as a liability when dividends are declared. Proposed dividends are disclosed in the statement of changes in equity. Inventories Goods for resale are measured at the lower of cost and net realizable value. Other receivables and prepayments Current receivables Current receivables are measured at amortized cost less potential write-downs for impairment losses. Write-downs are based on individual assessments of each debtor. Trade receivables Trade receivables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method, less allowance for doubtful trade receivables. Lease liabilities Lease liabilities arise from a lease agreement. Lease liabilities are initially equal to the present value of the lease payments during the lease term that are not yet paid. Pensions NNIT operates a number of defined-contribution pension plans. The costs of these pension plans are The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 128 1.4 General accounting policies – continued recognized in the financial year in which the relevant NNIT employees provided the related service. In some countries NNIT operates defined-benefit plans. Such liabilities are measured at the present value of the expected payments related to benefits accrued at the balance sheet date less the fair value of plan assets by applying the projected unit credit method. Plan assets, if any, are measured at fair value and offset against the defined benefit obli- gation in the balance sheet. Service costs and the interest component are recognized in the income statement. Actuarial gains and losses are recog- nized in other comprehensive income in the period in which they occur. Settlements are immediately recognized in the income statement. Due to legal restrictions in some jurisdictions and contractual agreements a small part of the LTIP program is setteled in cash. For the part settled in cash the cost will be charged to the income state- ment including impact from changes in the share- price. The libility related to the cash settled part is included in Other liabilities in the balance sheet. investing and financing activities, and how these cash flows have affected the cash position for the year. Cash flow from operating activities Cash flows from operating activities are calculated as the net profit for the year, adjusted for non-cash operating items. These include amortization, depre- ciation and write-downs, share-based compen- sation, change in net working capital and interest received and paid. Cash flow from investing activities Cash flows from investing activities comprise cash flows from the purchase and sale of intangible, tangible and financial non-current assets and the purchase and sale of securities. Further including aqusition of subsidaries. Cash flow from financing activities Cash flows from financing activities comprise cash flows from raising and repaying long-term debt, dividend payments to shareholders, instalments on lease liabilities and credit facilities. Provisions Provisions are recognized when NNIT has a legal or constructive obligation arising from past events, it is probable that NNIT will have to draw on its financial resources to settle the liability, and the liability can be reliably estimated. Provisions in the case of NNIT consist mainly of refurbishment obligations. Provision for refurbishment obligation This refers to refurbishment obligations regarding NNIT's lease agreements for rental of premises. Long-term incentive program Group Management and the Vice President Group are part of a long-term share-based incentive program (LTIP). Under the program, NNIT allocates shares based on operating profit and free cash flow. The participants receive NNIT shares. The shares are subject to a lock-up period of four years. NNIT has the obligation to deliver treasury shares, and accordingly, the arrangement is classified as an equitysettled arrangement and will be charged to the income statement over the four-year vesting period based on the market price at the grant date. Trade payables Trade payables are measured at amortized cost. Other current liabilities Other current liabilities comprise accrued expenses and VAT. Cash and cash equivalents Cash and cash equivalents include cash. The cash flow statement cannot be derived from the annual report alone. Cash flow statement The cash flow statement is prepared using the indirect method. The cash flow statement shows the cash flows for the year, divided into operating, The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 129 1.5 Financial definitions Operating profit margin = Operating profit x 100 Revenue Gross profit margin = Gross profit x 100 Revenue Revenue growth = (Revenue current year - revenue prior year) x 100 Revenue prior year Return on equity = Net profit after tax x 100 Average equity Dividend per share for the year = Proposed dividend The number of outstanding shares Return on invested capital (ROIC) = Net profit ex. financials x 100 Average invested capital 1 EBITDA margin = Operating profit + depreciation and amortization Revenue Solvency ratio = Equity Total assets Effective tax rate = Tax Profit before tax 1ꢀAverage invested capital is calculated excluding cash and cash equivalents, shares and non-interest bearing debt. Non-IFRS financial measures In the Annual Report, NNIT discloses certain finan- cial measures of the Group's financial performance, financial position and cash flows that reflect adjust- ments to the most directly comparable measures calculated and presented in accordance with IFRS. These non-IFRS financial measures may not be defined and calculated by other companies in the same manner and may thus not be comparable with such measures. The non-IFRS financial measures presented in the Annual Report are: • Special items • Financial resources at the end of the year • Free cash flow • Organic growth impairment of assets, gains from subleases and gains and losses regarding disposal of activities or subsidiaries. Special items are shown separately from the Group’s ordinary operations to facilitate a better understanding of the Group’s financial perfor- mance. Interest-bearing debt, net Equals interest bearing debt, including lease liabili- ties less cash. Financial resources at the end of the year Financial resources at the end of the year are defined as the sum of cash and cash equivalents at the end of the year and undrawn committed credit facilities. Free cash flow NNIT defines free cash flow as ‘net cash generated from operating activities less net cash used in investing activities’. Organic growth Expansion of operations from own (internally gener- ated) resources, without growth from acquisition of other companies and without currency effect. Special items Special items comprise costs or income that cannot be attributed directly to the Group’s ordinary activ- ities and are non-recurring of nature. Such costs and income include the cost related to significant restructuring of the cost base and processes as well as restructuring costs related to resignation of employees. Further special items include signif- icant cost related to M&A activities, redundancy cost related to members of Group Management, The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 130 2. Results for the year 2.1 Segment information Following the implementation of the new organization on May 2, 2023, NNIT consists of four regions, which individually can be considered an operating segment: • Region Denmark (excluding life sciences) • Region Europe (including life sciences in Denmark) • Region US • Region Asia The new regional structure has been introduced to increase customer proximity and enhance global coordina- tion across regions. From a financial perspective, the four regional P&Ls include allocated corporate cost such as legal, human resources, finance and global delivery centers. A consolidation of the four regional P&Ls consti- tute NNIT’s group P&L and is supplemented by management commentary to provide increased transparency in respect of financial and business performance for each region. The operating segments reflect the internal reporting that is reviewed by the “Chief Operating Decision makers” consisting of the Executive Management and the Board of Directors. The internal reporting includes communica- tion of revenue, costs and operating results for each of the operating segments. No reporting is made on assets. Region Denmark generated 46% of the revenue in the year ended December 31, 2024 (2023: 42%), Region Europe generated 28% of the revenue (2023: 27%) and Region US generated 19% in 2024 (2023: 22%) based on the location of the customer. The Novo Nordisk Group generated 12% of the revenue in the year ended December 31, 2024 (2023: 10%), whereof 44% relates to Region Europe (2023: 41%), 27% relates to Region Asia (2023: 31%) and 27% relates to Region Denmark (2023: 26%). For depreciations and amortizations 40% relates to Region Denmark (2023: 48%), 29% relates to Region Europe (2023: 32%), 18% relates to Region US (2023: 20%) and 13% relates to Region Asia (2023: 0%). 38% of tangible assets relates to Region Denmark (2023: 65%), 28% relates to Region Europe (2023: 26%), 33% relates to Region Asia (2023: 8%) and 1% relates to region US (2023: 1%). For intangible assets 55% relates to Denmark (2023: Region Denmark 56%) and 45% relates to US (2023: Region US 44%). Region Region Region Region DKK million Denmark Europe Asia US Total 2024 Revenue 844 512 149 346 1,851 Production cost 651 391 123 207 1,372 Gross profit 193 121 26 139 479 Gross profit Margin 22.9% 23.6% 17.2% 40.0% 25.8% Regional operating profit 151 67 8 73 299 Regional operating profit margin 17.9% 13.0% 5.2% 21.2% 16.2% Group operating profit1 68 16 (6) 39 117 Group operating profit margin 8.1% 3.1% (4.0)% 11.3% 6.3% 2023 Revenue 732 465 144 387 1,728 Production cost 566 330 135 252 1,283 Gross profit 166 135 9 135 445 Gross profit Margin 22.7% 29.0% 6.3% 34.9% 25.8% Regional operating profit 133 78 (4) 80 287 Regional operating profit margin 18.2% 16.8% (2.8)% 20.7% 16.6% Group operating profit1 60 32 (18) 42 116 Group operating profit margin 8.2% 6.9% (12.5)% 10.9% 6.7% 1ꢀWhen deducting speciel items and net financials consolidated profit before income taxes is obtained. The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 131 2.2 Employee costs DKK million 2024 2023 Employee costs comprise: Wages and salaries 1,090 1,383 Share-based payments 2 1 Pensions – defined contribution plans 76 91 Pensions – defined benefit obligations (note 3.7) 5 4 Other employee costs 98 132 Total employee costs 1,271 1,611 Total employee costs, discontinued operations - 347 Total employee costs, continuing operations 1,271 1,264 Capitalized under IT development projects (40) (3) 1,231 1,261 Included in the income statement under the following headings: Cost of goods sold 928 977 Sales and marketing costs 68 56 Administrative expenses 188 160 Special items 47 68 Total employee costs 1,231 1,261 Average number of full-time employees, total 1,704 1,974 Average number of full-time employees, continuing 1,704 1,773 Remuneration of Board of Directors and Group Management The current policy for the remuneration of the Board of Directors and Executive Management was adopted in 2024 and sets out the general guidelines for the remuneration of the Group’s management. The guidelines for the remuneration of the Board of Directors and Executive Management are available on NNIT’s website. In addition to the disclosures provided in this note, more details on the remuneration of Executive Management and Directors are provided in the separate Remuneration report, which is not a part of the audited financial statements. The report is also available on NNIT’s website. Board of Directors remuneration DKK million 2024 2023 Ordinary board member fee 3.7 3.6 Audit Committee 0.3 0.3 Remuneration Committee 0.2 0.2 Total fee to Board of Directors 4.2 4.1 The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 132 2.2 Employee costs – continued Short-term incentive program (STIP) Group Management and certain other employees participate in a STIP program, which entitles each participant to receive an annual performance-based cash bonus, linked to the achievement of a number of predefined functional and individual business targets. Performance is measured for each financial year and the cash-based incentives, if any, are paid after announcement of the annual report for the subsequent year. Long-term incentive program (LTIP) LTIP is designed to promote the collective performance of Group Management and Vice Presidents to align the interests of executives and shareholders. The program is based on revenue and earnings, before interest and tax compared to the targeted levels. Shares are recognised over the four-year vesting period. NNIT's Board of Directors approves the financial targets for the coming year, ensuring that the short-term targets are aligned with NNIT's long-term targets and strategy. The allocation under LTIP for the CEO cannot exceed twelve months base salary, and the allocation for the CFO cannot exceed nine months base salary. The allocation for the other members of Group Management cannot exceed nine moths base salary. The shares allocated to the members of Group Management that are fully vested, will be released to the indi- vidual participants subsequent to the approval of the Annual Report 2024 by the Board of Directors. Group Management's remuneration and share-based payment 2024 Other members Executive of Group DKK million Management Management Total Base salary 7.6 12.1 19.7 Cash Bonus (STIP and employee benefit cost)1 - - - One off bonus - - - Remuneration in connection with redundancy, resignations and release from duty to work - - - Pension 0.4 1.5 1.9 Benefits 0.4 0.9 1.3 Share-based incentives2 0.7 0.2 0.9 Group Management total 9.1 14.7 23.8 2023 Other members Executive of Group DKK million Management Management Total Base salary 7.4 13.6 21.0 Cash Bonus (STIP and employee benefit cost)1 4.1 7.3 11.4 One off bonus 3.4 6.0 9.4 Remuneration in connection with redundancy, resignations and release from duty to work - 11.6 11.6 Pension 0.4 1.6 2.0 Benefits 0.4 1.3 1.7 Share-based incentives2 - 0.3 0.3 Group Management total 15.7 41.7 57.4 1ꢀEmployee benefit cost (contingent consideration agreement) related to the acquisition of Excellis Health Solutions. Following a decision by the Danish Business Authority concerning accounting treatment of Employee benefit cost (earn-out payment) related to acquisitions, these payments are to be considered and expensed as salary. 2ꢀIncludes the annually recognized expense on granted share based and launch incentive programmes, which are not released. Based on the share price at the end of 2024, the value of the released shares is as follows: Number Market DKK million of shares value Values at December 31, 2024 of shares to be released February 20, 2025 Pär Fors1 1,942 0.2 Carsten Ringius - - Executive Management 1,942 0.2 Other members of Group Management 1,765 0.2 Group Management total 3,707 0.4 1ꢀWill be settled in cash. Please refer to note 5.1 for an overview of outstanding RSU’s. The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 133 2.3 Development costs DKK million 2024 2023 Costs for development of new projects, not eligible for recognition in the balance sheet are charged immediately to the income statement: Cost of goods sold 3 14 Special items, costs 21 0 Total development costs 24 14 2.5 Special items DKK million 2024 2023 Special items relates to: Gain/loss from subleases 9 (15) Employee benefit cost (contingent consideration agreement) 26 52 Restructuring cost 50 31 Other 4 - Cost regarding acquisition and disposal of operations (20) 103 Total special items 69 171 Total special items, discontinued operations - 102 Total special items, continuing operations 69 69 If special items had been recognized in operating profit before special items, they would have been included in the following line items: – Cost of goods sold 7 3 – Administrative expenses 62 66 Total special items 69 69 2.4 Amortization, depreciation and impairment losses DKK million 2024 2023 Amortization 6 - Depreciation 46 33 Total amortization, depreciation, and impairment losses 52 33 Total amortization, depreciation, and impairment losses, discontinued operations - 5 Total amortization, depreciation, and impairment losses, continuing operations 52 28 Amortization, depreciation and impairment losses are recognized in the income statement: Cost of goods sold 11 7 Sales and marketing costs - 1 Administrative expenses 33 20 Special items 8 - Total amortization, depreciation, and impairment losses 52 28 The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 134 2.6 Income taxes DKK million 2024 2023 Current tax (24) 67 Deferred tax 39 (31) Adjustments recognized for current tax of prior periods (12) 25 Adjustments recognized for deferred tax of prior periods 11 (28) Income taxes in the income statement 14 33 Income taxes in the income statement, discontinued operations - 22 Income taxes in the income statement, continuing operations 14 11 Computation of effective tax rate, continuing operations: Statutory corporate income tax rate in Denmark 22.0% 22.0% Deviation in foreign subsidiaries' tax rates compared to Danish tax rate (net) 12.7% 3.3% Adjustment of current and deferred tax regarding previous years (8.7%) (17.6%) Other adjustments to taxable income 68.3% 57.0% Effective tax rate 94.3% 64.7% Tax on other comprehensive income for the year 5 2 DKK million 2024 2023 Tax (payable)/receivable Tax (payable)/receivable at the beginning of the year (55) 72 Disposals related to divestment of infrastructure business - 2 Income tax paid/(received) during the year (13) 11 Tax paid/(received) related to previous years 47 (45) Withholding taxes paid/(received) during the year - (2) Current tax on profit for the year 24 (67) Adjustments related to previous years 12 (25) Exchange rate adjustment (1) (1) Tax (payable)/receivable at the end of the year 14 (55) Tax (payable)/receivables, discontinued operations - - Tax (payable)/receivables, continuing operations 14 (55) Tax payable/receivables are recognized in the balance sheet as follows: Tax receivables 26 10 Tax payable (22) (70) Tax on other comprehensive income 10 5 Total tax 14 (55) Tax on other comprehensive income for the year relates to tax on exchange rate adjustments and deferred tax on share-based payments. From 1 January 2024 NNIT is subject to Global Minimum Tax (OECD BEPS Pillar 2 rules), due to the ownership of Novo Holding A/S. NNIT is thereby within the scope of the OECD Pillar Two model rules. The rules did not have a material impact on the tax position of NNIT in 2024. Furthermore, the Group applies the exception to recog- nising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023. The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 135 2.6 Income taxes – continued Net taxes received in 2023 for continuing and discontinued operations amounted to DKK 36 million and were paid/(received) as follows: DKK million CH CN CZ DK DE ES GB IE IT PH PL SG US Total Income tax paid during the year - - - (27) 3 - 2 - - 1 - - 8 (13) Tax paid related to previous years 8 - 1 34 - - 3 - - - - - 1 47 Withholding taxes paid during the year - - - - - - - - - - - - - - Total 8 - 1 7 3 - 5 - - 1 - - 9 34 Effective tax rate 11.4% 23.7% 23.9% 11.6% 23.6% 25.0% 30.5% 81.4% 42.1% 81.1% 16.7% 3.6% 24.6% Lease Intangible Tangible Current receivables Share based Cash flow DKK million assets assets assets and liabilities programs hedges Provisions Tax losses Total 2024 Deferred tax asset At the beginning of the year (18) 21 10 4 - - 61 - 78 Transferred from taxes directly associated with assets and liabilities held for sale - - - - - - - - Adjustments related to previous years1 (2) (12) 6 (6) - - 3 - (11) Movements within the year (13) (3) (2) 13 - - (34) - (39) Movements in other comprehensive income - - - - - - 1 - 1 At the end of the year (33) 6 14 11 - - 31 - 29 1ꢀAdjustments related to previous years is mainly regarding an adjustment of work in progress. 2023 Deferred tax asset At the beginning of the year (12) - (19) 12 (1) - 21 6 7 Transferred from taxes directly associated with assets and liabilities held for sale (15) 33 (12) - - - 6 - 12 Adjustments related to previous years1 (2) - 30 - - - 2 (2) 28 Movements within the year 11 (12) 11 (8) 1 - 32 (4) 31 Movements in other comprehensive income - - - - - - - - - At the end of the year (18) 21 10 4 - - 61 - 78 1ꢀAdjustments related to previous years is mainly regarding an adjustment of work in progress. The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 136 3. Operating assets and liabilities 3.1 Intangible assets Other IT IT development intangible development projects under DKK million Goodwill assets projects construction 2024 2024 Costs at the beginning of the year 686 37 6 15 744 Additions - - - 51 51 Disposals - (20) (3) - (23) Transfer - - 58 (58) - Exchange rate adjustment 19 1 - 1 21 Cost at the end of the year 705 18 61 9 793 Amortization and impairment loss at the beginning of the year - 37 3 - 40 Amortization - - 6 - 6 Amortizations reversed on disposals - (20) (1) - (21) Exchange rate adjustment - 1 - - 1 Amortization and impairment losses at the end of the year - 18 8 - 26 Carrying amount at the end of the year 705 - 53 9 767 Amortization period 2-5 years 3-10 years IT development projects includes NNIT's ERP system which is used as the basis for the Group's day-to-day operations and internal IT-systems and developed applications for customer services. IT development projects under construction consists of both internal IT-systems and developed applications for customer services. The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 137 3.1 Intangible assets – continued Other IT IT development intangible development projects under DKK million Goodwill assets projects construction 2023 2023 Costs at the beginning of the year 696 37 67 2 802 Additions - - 9 15 24 Disposals1 - - (72) - (72) Transfer - - 2 (2) - Exchange rate adjustment (10) - - - (10) Cost at the end of the year 686 37 6 15 744 Amortization and impairment loss at the beginning of the year - 37 59 - 96 Amortization - - - - - Amortizations reversed on disposals2 - - (56) - (56) Exchange rate adjustment - - - - - Amortization and impairment losses at the end of the year - 37 3 - 40 Carrying amount at the end of the year 686 - 3 15 704 Amortization period 2-5 years 3-10 years 1ꢀWhereof DKK 26 Million relates to discontinued operations. 2- Whereof DKK 10 Million relates to discontinued operations. IT development projects includes NNIT's ERP system which is used as the basis for the Group's day-to-day operations and internal IT-systems and developed applications for customer services. IT development projects under construction consists of both internal IT-systems and developed applications for customer services. The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 138 3.2 Impairment test CGU1 Annual Terminal Carrying revenue Discount Discount period DKK million amount growth rate rate pre-tax rate post-tax growth rate 2023 Region Denmark 113 2-9% 10.8% 8.4% 2% Region Europe 267 8-14% 10.8% 8.4% 2% Region US 306 4-14% 10.8% 8.4% 2% 1ꢀThe goodwill has been reallocated to the new business segments in 2023. Therefore, the carrying amounts are not directly comparable with the 2022 annual report. The difference in the carrying amount compared to 2022 is due to changes in exchange rates Re-allocation of goodwill In 2024 the Group has made a change in the organisational structure and internal reporting, resulting in a DKK5m re-allocation of goodwill from Region US to Region Europe. No risk of impairment was identified prior to the re-allocation of goodwill. Impairment test The carrying amount of goodwill is impairment tested by comparison to the recoverable amount. The recover- able amount is determined based on value in use. Discounted cash flow models have been applied to deter- mine the value in use for the cash-generating units, based on the most recent financial forecasts approved by management. The CGU’s are in all material aspects subject to the same presumptions hence below is applicable for all CGU’s. When determining value in use the post-tax discount rate has been used. The pre-tax discount rate is for information purposes only. Net cash flows for the year 2025-2029 are determined based on key assumptions and expectations and estimates based on growth and profit margin expectations based on past experience and in accordance with NNIT business plans. From 2029 onwards, NNIT expects the growth rate to remain in line with the expected longterm average growth rate for the industry. The uncertainty associ- ated with these expectations is reflected in the discount rate used. Goodwill has been tested for impairment at December 31, 2024. The impairment test did not result in any impairment of the carrying amount. The key assumptions used are stated in the following (DKK million). The expected growth in revenue is based on historical performance, expected development in the market in which the entity operates and assumptions in terms of development in market share. The growth rates applied in the explicit forecast period converge from its current level experienced over the last few years to the long- term growth level in the market where the entity operates. The growth rates used to extrapolate cash flow projections beyond the explicit forecast period are not higher than the average expected long-term growth in the markets in which the entities operate. A sensitivity analysis has been carried out in relation to the discount rate (WACC) and terminal growth. The sensitivity analysis did not give rise to any risk of impairment. CGU1 Annual Terminal Carrying revenue Discount Discount period DKK million amount growth rate rate pre-tax rate post-tax growth rate 2024 Region Denmark 113 4-9% 9,06% 8,97% 2% Region Europe 272 8-14% 9,35% 9,25% 2% Region US 320 7-14% 10,46% 10,32% 2% 1ꢀA DKK5m re-allocation of goodwill has been made from Region US to Region Europe. The difference in the carrying amount compared to last year is due to changes in exchange rates. The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 139 3.3 Tangible assets Other Leasehold DKK million equipment improvements 2024 2024 Cost at the beginning of the year 5 56 61 Additions 5 13 18 Disposals - (53) (53) Exchange rate adjustments 1 (1) - Cost at the end of the year 11 15 26 Depreciation and impairment loss at the beginning of the year 3 50 53 Depreciation 3 5 8 Depreciation reversed on disposals - (50) (50) Depreciation and impairment loss at the end of the year 6 5 11 Carrying amount at the end of the year 5 10 15 Depreciation period 3-10 years 5-10 years NNIT's fixed assets register is inspected on a regular basis to identify assets, which are no longer in use. Such assets are scrapped. The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 140 3.3 Tangible assets – continued Payments on account and Land and Other Leasehold assets under DKK million buildings equipment improvements construction 2023 2023 Cost at the beginning of the year 5 6 55 - 66 Additions - 10 - 12 22 Disposals1 (2) (13) - (12) (27) Transfer (3) 2 1 - - Cost at the end of the year - 5 56 - 61 Depreciation and impairment loss at the beginning of the year - 3 46 - 49 Depreciation - 1 4 - 5 Depreciation reversed on disposals - (1) - - (1) Depreciation and impairment loss at the end of the year - 3 50 - 53 Carrying amount at the end of the year - 2 6 - 8 Depreciation period 10-50 years 3-10 years 5-10 years 1 Whereof DKK 26 million relates to discontinued operations. NNIT's fixed assets register is inspected on a regular basis to identify assets, which are no longer in use. Such assets are scrapped. The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 141 3.4 Contract balances Contract assets and liabilities, continuing operations DKK million 2024 2023 Trade receivables as specified in note 3.6 476 476 Contract assets from continuing operations comprise: Work in progress (projects) 16 67 Transition projects 16 17 Contract liabilities from continuing activities comprise: Prepayments received, work in progress (30) (74) Prepayments received, transition cost (16) (20) Deferred income (27) (67) Revenue recognized Revenue from recognized Opening opening regarding Closing DKK million balance Additions balance additions balance 2024 Prepayments received, work in progress (74) (46) 65 25 (30) Prepayments received, transition cost (20) - 4 - (16) Deferred income (67) (79) 67 52 (27) Revenue recognized Revenue from recognized Opening opening regarding Closing DKK million balance Additions balance additions balance 2023 Prepayments received, work in progress (55) (69) 47 3 (74) Prepayments received, transition cost (15) (8) 3 - (20) Deferred income 0 (69) - 2 (67) Work in progress relates to projects where the recognized revenue from work performed exceeds progress billings. Prepayments received, work in progress relates to projects where the progress billing exceeds work performed. Prepayments received transition cost relates to prepayments received regarding transition projects. As such the balances of these accounts vary and depend on the number of new projects at the end of the year. Besides above balances we have also capitalized cost to fulfill a contract as transition cost. Transition cost relates to capitalized cost incurred for preparatory projects in relation to transition or set-up activities required to enable delivery of the service. The cost will be amortized over the operation period which generally is between 3-6 years. As such the balance for transition cost vary depending on the number of new outsourcing contracts requiring a transition project or set-up activities. The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 142 3.4 Contract balances – continued 3.5 Deposits DKK million 2024 2023 Cost at the beginning of the year 31 27 Additions 7 5 Disposal (3) (1) Transfer to Other receivables (23) - Carrying amount at the end of the year 12 31 Transferred Amortized to assets cost from Amortized classified Opening opening cost from Impairment as held Closing DKK million balance Additions balance additions loss for sale balance 2024 Transition cost 17 2 (3) - - - 16 Transferred Amortized to assets cost from Amortized classified Opening opening cost from Impairment as held Closing DKK million balance Additions balance additions loss for sale balance 2023 Transition cost 9 13 (2) (3) - - 17 3.6 Trade receivables DKK million 2024 2023 Total trade receivables (gross) 476 482 Allowances for bad debt in the year - 6 Total trade receivables (net) 476 476 Total trade receivables (net), discontinued operations - - Total trade receivables (net), continuing operations 476 476 Trade receivables is recognized in the balance sheet as follows: Trade receivables, non-current 6 25 Trade receivables, current 470 451 Total trade receivables 476 476 Transition cost for the continuing operations are recognized in the balance sheet as follows: DKK million 2024 2023 Transition cost, non-current 13 14 Transition cost, current 3 3 Total transition cost 16 17 Future contract obligations Below table shows performance obligations resulting from contracts which will be satisfied in the future: DKK million 2024 2023 Aggregated amount of transaction price allocated to contracts that will be satisfied in the future as at December 31 1,266 1,257 NNIT applies the IFRS 9 simplified approach to measure expected credit losses, which uses a lifetime expected loss allowance for all trade receivables. NNIT has assessed historical realized losses adjusted by a forward-looking estimate related to the probability of a significant change in the economic environment. Historically NNIT has not realized any losses on trade receivables due to the economic environment. Losses have been due to claim settle- ment with customers. Further NNIT continuously conduct individual assessments of bad debts. If this leads to an assessment that NNIT will not be able to collect all outstanding payments, an allowance for bad debt is made. NNIT A/S has based on an individual assessment recognised expected credit loss of DKK 0 million as of 31 December 2024 (2023: DKK 6 million). 2023 balances reflects continuing operations. Management expects that DKK 832 million of the transaction price allocated to the future contract obligations as of December 31, 2024 will be recognized during 2025. The remaining part will be recognized as revenue within 2-3 years. The amount disclosed above includes both fixed and variable consideration. The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 143 3.6 Trade receivables – continued 3.7 Employee benefit obligations Defined benefit pension obligations DKK million Pension liability Plan asset Net liability 2024 At the beginning of the year 60 56 4 Current service costs 5 - 5 Interest cost 1 1 - Employer contributions - 7 (7) Benefits paid from plan asset (23) (23) - Remeasurement gains/(losses) recognized in other comprehensive income - (1) 1 Plan participant contribution etc. 2 1 1 Other 2 1 1 At the end of the year 47 42 5 DKK million 2024 2023 Aging of non-impaired trade receivables: Non-invoiced trade receivables 85 60 Not due at balance sheet date 272 281 Overdue between 1 and 30 days 72 81 Overdue between 31 and 60 days 22 34 Overdue by more than 60 days 25 20 Total trade receivables 476 476 Total trade receivables, discontinued operations - - Total trade receivables, continuing operations 476 476 Part of the non-invoiced trade receivables are regarding long-term projects, where the amount will be invoiced to the customer over the operation period which is more than one year. The long-term project amount to DKK 25 million as of 31 December 2024 (2023: DKK 49 million), of these 19 million will be invoiced in 2025. DKK million Pension liability Plan asset Net liability 2023 At the beginning of the year 61 59 2 Current service costs 4 - 4 Interest cost 2 1 1 Employer contributions (2) 5 (7) Benefits paid from plan asset (13) (13) - Remeasurement gains/(losses) recognized in other comprehensive income 1 (1) 2 Plan participant contribution etc. 2 2 - Exchange rate adjustments 5 3 2 At the end of the year 60 56 4 The defined benefit plans in the Group relates to NNIT Switzerland AG and NNIT Digital & Life Sciences Phillip- ines Inc.. No other entities have individual significant net pension obligations or assets. The composition of the pension plan assets are mainly shares quoted in active markets. The defined benefit plans are usually funded by payments from Group companies and by employees to funds independent of NNIT. The weighted average dura- tion of the defined benefit obligation is 12.0 years (2022: 11.7 years). The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 144 3.7 Employee benefit obligations – continued 3.8 Provisions DKK million 2024 2023 Provision for refurbishment obligation At the beginning of the year 27 30 Additions 8 3 Disposals - (6) At the end of the year 35 27 ꢀProvision for refurbishment obligation, included under non-current liabilities, relates to the leasehold agreements in the Group with a refurbishment obligation. Other provisions At the beginning of the year 15 - Additions for the year 2 15 Utilized (15) - At the end of the year 2 15 ꢀOther provisions mainly consist of provisions for risks related to projects. Provision are recognized in the balance sheet as follows: Non-current liabilities 9 27 Current liabilities 28 15 Total liability 37 42 DKK million 2024 2023 Assumptions used for valuation1 Discount rate 1.26% 1.75% Price inflation 1.19% 1.25% Projected future remuneration increases 1.81% 1.75% Interest crediting rate 0.95% 1.75% 1ꢀAssumptions are calculated and presented based on weighted average of the Defined Benefit Plans in NNIT Switzerland AG and NNIT Digital & Life Sciences Philippines Inc. Actuarial valuations are performed annually. DKK million 2024 2023 Defined benefit pension obligations 5 4 Employee benefit obligations (contingent consideration agreement) 19 59 Total employee benefit obligations 24 63 Total employee benefit obligations, non-current discontinued operations - - Total employee benefit obligations, continuing operations 24 63 Employee benefit obligation is recognized in the balance sheet as followed: DKK million 2024 2023 Non-current liabilities (1-5 years) 5 6 Current liabilities 19 57 Total employee benefit obligation 24 63 The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 145 3.9 Discontinued operations June 22, 2022 it was announced that NNIT was divesting the infrastructure operations and in December 2022 and December 2023 it qualified for recognition as Discontinuing operations according to IFRS 5. DKK million 2024 2023 Revenue - 504 Cost of goods sold - 405 Gross profit - 99 Sales and marketing costs - 15 Administrative expenses - 54 Operating profit before special items - 30 Gain from discontinuing operations - 76 Special items - 102 Operating profit/(loss) - 4 Financial income - - Financial expenses - 2 Profit/(loss) before income taxes - 2 Income taxes - (22) Profit for the year of discontinued operations - 24 DKK million 2024 2023 Earnings per share Earnings per share (DKK) - 0.96 Diluted earnings per share (DKK) - 0.96 Cash Flows from discontinued operations Cash flow from operating activities - (97) Cash flow from investing activities - 904 Cash flow from financing activities - - Cash flow from discontinued operations - 807 The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 146 3.9 Discontinued operations – continued Divestment of infrastructure business DKK million 2024 2023 Consideration received/receivable: Cash - 1,001 Fair value of contingent consideration - 200 Net working capital/Net interest bearing debt adj. and other adjustments - (209) Sales price for discontinued operations incl. adjustments - 992 Transaction costs - 51 Sales price for discontinued operations, after transaction costs - 941 Carrying amount of net assets sold - 821 Gain on sale of discontinued operations before tax - 120 Tax on divestment - 44 Gain on sale of discontinued operations after tax - 76 Assets and liabilities in the business sold comprise of: Intangible assets - 102 Tangible assets - 501 Lease assets - 38 Deferred taxes - 1 Deposits - 7 Transition cost - 80 Trade receivables - 96 Work in progress - 28 Other receivables - 7 Prepayments - 114 Cash - 21 Total assets - 995 DKK million 2024 2023 Employee benefit obligations - 1 Lease liabilities - 34 Prepayments received, transition cost - 40 Prepayments received, work in progress - 16 Employee costs payables - 62 Tax payables - 2 Other current liabilities - 14 Provisions - 5 Total liabilities - 174 Net assets - 821 On 28 April 2023, NNIT completed the transformative divestment of the Group’s infrastructure operations to funds advised by Agilitas Private Equity LLP as initially described in company announcement no. 9/2022 on June 22, 2022. Financial information relating to the discontinued operation is set out in the table. The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 147 4. Capital structure and financing items 4.1 Financial income and expenses DKK million 2024 2023 Financial income Interest income 11 15 Tax related interests - 1 Total financial income 11 16 Total financial income, dicontinued operations - - Total financial income, continuing operations 11 16 Financial expenses Realized/unrealized loss on currency 17 4 Interest expenses lease liability 4 2 Interest expenses 20 32 Bank charges and other fees 3 10 Guarantee commission - - Other financial expenses - - Total financial expenses 44 48 Total financial expenses, dicontinued operations - 2 Total financial expenses, continuing operations 44 46 4.2 Share capital, distribution to shareholder and earnings per share DKK million 2024 2023 Profit/(loss) from continuing operations 1 6 Profit/(loss) from discontinued operations - 24 Net profit/(loss) for the year 1 30 Number '000 Average number of shares outstanding 24,894 24.869 Dilutive effect of share-based payments 82 112 Average number of shares outstanding, including dilutive effect of share-based payments 24,976 24.981 Earnings per share Earnings per share (DKK) 0.03 1.20 Diluted earnings per share (DKK) 0.03 1.20 Earnings per share from continuing operations Earnings per share (DKK) 0.24 Diluted earnings per share (DKK) 0.24 Earnings per share from discontinued operations Earnings per share (DKK) 0.96 Diluted earnings per share (DKK) 0.96 Earnings per share and diluted earnings per share are calculated in accordance with IAS 33. Basic earnings per share are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year, excluding ordinary shares purchased by the Company and held as treasury shares. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. RSUs are only included when performance requirements have been met. The share capital has a nominal value of DKK 250 million divided into 25 million shares with a nominal value of DKK 10 each. No shares carry special rights. The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 148 4.2 Share capital, distribution to shareholder and earnings per share – continued 4.3 Leases Lease assets Rental of Rental of Company DKK million premises equipment cars 2024 2024 Costs at the beginning of the year 246 - 22 268 Additions 111 12 4 127 Disposals (62) - (11) (73) Exchange rate adjustment 1 - - 1 Costs at the end of the year 296 12 15 323 Depreciation and impairment loss at the beginning of the year 211 - 12 223 Depreciation 34 1 3 38 Depreciation reversed on disposals (59) - (6) (65) Depreciation and impairment loss at the end of the year 186 1 9 196 Carrying amount at the end of the year 110 11 6 127 Number Nominal Market value As % of of shares DKK value (million) share capital (thousand) 2024 Treasury shares Holding at the beginning of the year 1 11 0.5% 131 Disposal - -3 -0,1% -25 Value adjustments - 2 Holding at the end of the year 1 10 106 Treasury shares held relates to the long-term incentive program. Retained earnings are accumulated earnings. Exchange rate adjustments are the difference between average exchange rates in the year and exchange rates at the balance sheet date when consolidating subsidiaries. Proposed dividends are the dividends proposed by the Board of Directors for the financial year. DKK million 2024 2023 Net cash distribution to shareholders - - Ordinary dividends Interim dividends - - Total - - No interim dividend was declared in 2024 and no dividend will be declared at the end of 2024. The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 149 4.3 Leases – continued Lease assets Rental of Rental of Company DKK million premises equipment cars 2023 2023 Costs at the beginning of the year 617 17 19 653 Additions1 29 - 5 34 Disposals (395) (17) (2) (414) Exchange rate adjustment (5) (5) Costs at the end of the year 246 - 22 268 Depreciation and impairment loss at the beginning of the year 520 17 8 545 Depreciation 22 - 6 28 Depreciation reversed on disposals (329) (17) (2) (348) Exchange rate adjustments (2) - - (2) Depreciation and impairment loss at the end of the year 211 - 12 223 Carrying amount at the end of the year 35 - 10 45 1ꢀWhereof DKK 15 million relates to gain on subleases. Lease liabilities Lease liabilities expiring within the following periods from the balance sheet date: DKK million 2024 2023 Within 1 year 22 53 Between 1 and 5 years 75 15 After 5 years 65 - Total lease liability, non-discounted 162 68 Lease liabilities are recognized in the balance sheet as follows: Non-current liabilities 113 13 Current liabilities 17 51 Total lease liabilities 130 64 Recognized in the profit and loss statement Interest expenses related to lease liabilities 4 3 Expense relating to short term leases, not capitalized - - Expense relating to leases of low-value assets, not capitalized - - 4 3 In 2024 the Group has paid 60 million (2023: 66 million) regarding lease agreements where of interest expenses related to lease liabilities amount to DKK 4 million (2023: 3 million) and repayment of lease liability amount to DKK 56 million (2023: 61 million). NNIT has entered into short-term and low-value lease agreement for printers, coffee makers, watercoolers parking space and storage. The total value of these agreements are immaterial. The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 150 4.3 Leases – continued Subleases NNIT has entered into arrangements to sublease part of the Group's property lease agreement. In accordance with IFRS 16, the right-of-use asset covering the subleases is derecognised, and a lease receivable is recog- nised. DKK million 2024 2023 Amounts recognised in the statement of cash flows Installment on sublease receivables 35 18 Receivables from subleasing Receivables from subleases at 1 January 26 18 Additions 18 26 Disposals (2) - Payments received (35) (18) Receivables from subleases 7 26 The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 151 4.4 Financial assets and liabilities, continuing operations Depending on the purpose of each asset and liability, NNIT classifies these into the following categories: • Cash and cash equivalents • Financial assets at amortized cost • Financial liabilities measured at amortized cost Cash and cash Financial assets at DKK million equivalents amortized cost Total 2024 Financial assets by category Deposits - 12 12 Trade receivables - 476 476 Work in progress - 16 16 Other receivables - 39 39 Prepayments - 25 25 Cash and cash equivalents 158 - 158 Total financial assets at the end of the year 158 568 726 Cash and cash Financial assets at DKK million equivalents amortized cost Total 2023 Financial assets by category Deposits - 31 31 Trade receivables - 476 476 Work in progress - 67 67 Other receivables - 258 258 Prepayments - 27 27 Cash and cash equivalents 254 - 254 Total financial assets at the end of the year 254 859 1,113 The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 152 4.4 Financial assets and liabilities – continued Financial liabilities Financial liabilities measured at measured at undiscounted DKK million amortized cost paymentsl 2024 Financial liabilities by category Lease liabilities 130 162 Credit Facilities 271 271 Trade payables 117 117 Other non-current and current liabilities 69 69 Total financial liabilities at the end of the year 587 619 Credit Lease DKK million Facilities liability Total 2024 Financial liabilities included in finance activities Financing liabilities included in finance activities at the beginning of the year 267 64 331 Cash flows: Instalments - (56) (56) Ingoing/outgoing payments during the year 4 - 4 Non-cash flows: Addition - 125 125 Disposals - (3) (3) Total financial liabilities included in finance activities at the end of the year 271 130 401 Financial liabilities Financial liabilities measured at measured at undiscounted DKK million amortized cost paymentsl 2023 Financial liabilities by category Lease liabilities 64 68 Credit Facilities 267 267 Trade payables 110 110 Other non-current and current liabilities 251 251 Total financial liabilities at the end of the year 692 696 Credit Lease DKK million Facilities liability Total 2023 Financial liabilities included in finance activities Financing liabilities included in finance activities at the beginning of the year 857 156 1,013 Cash flows: Instalments - (66) (66) Ingoing/outgoing payments during the year (590) - (590) Non-cash flows: Addition - 15 15 Disposals - (40) (40) Exchange rate adjustment - (1) (1) Total financial liabilities included in finance activities at the end of the year 267 64 331 The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 153 4.4 Financial assets and liabilities – continued Fair value measurement hierarchy Financial assets and liabilities at fair value through comprehensive income are categorized in the fair value hier- archy as level 2 (directly or indirectly observable market data). The fair value is measured according to generally accepted valuation techniques. Market-based parameters are used to measure the fair value. The remaining categories of financial assets and liabilities are measured at amortized cost. Plan assets recognised for the groups defined pension benefits is measured at fair value, reference is made to note 3.7 DKK million 2024 2023 EUR (3) 10 CNY (1) (2) CZK (4) (6) USD 4 12 CHF 6 - PHP (5) (9) A corresponding appreciation of the Danish kroner against the above currencies would have had the opposite impact. Financial risks NNIT’s objective at all times is to limit the Company’s financial risks. Financing and sufficient liquidity are fundamental to NNIT´s continuing operations and future growth. Liquidity is managed centrally from the Parent Company. To cover the Group’s liquidity needs, an agreement on credit facilities for a total of DKK 400 million has been entered (2023: DKK 300 million). The Group's credit facilities are subject to standard financial covenants. The liquidity risk is countered by consistent focus on budgeted and realized cash flow. NNIT is exposed to exchange rate risks in the countries where NNIT has its main activities. The majority part of NNIT’s sales is in DKK and EUR, implying limited foreign exchange risk, due to the Parent Company’s func- tional currency being DKK and Denmark’s fixed-rate policy towards EUR. NNIT’s foreign exchange risk therefore primarily stems from transactions carried out in the currencies of other countries in which NNIT mainly oper- ates: Primarily the Philippines peso, US Dollar, Czech Koruna and to a lesser extent Chinese yuan and the Swiss franc. Most of the foreign exchange risk in the Chinese yuan and US dollar and all of the foreign exchange risk in the Czech koruna and the Philippines are due to intercompany transactions. Foreign exchange sensitivity analysis NNIT estimates that all other variables being constant, a 10% depreciation of the average 2024 exchange rate of the Danish kroner against the following currencies would have had the indicated impact (in Danish kroner) on our operating profit (EBIT) for 2024. The following sensitivity analysis addresses hypothetical situations and is provided for illustrative purposes only: The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 154 4.4 Financial assets and liabilities – continued As of December 31, 2024 NNIT, A/S’ net balance position (trade receivables minus trade payables) divided on currency amounted to a short-term outflow primarily in Euro, US dollar and Czech koruna and a short term inflow in Chinese Yuan. A 10% depreciation of the exchange rate of the Danish kroner against NNIT A/S’ transac- tion exposures (net balance position) will have the below illustrated impact (in Danish kroner) on the net profit before tax for the year ended December 31, 2024. Credit risk NNIT’s credit risk principally arises from trade receivables, which amounted to DKK 476 million as of December 31, 2024 (December 31, 2023: DKK 476 million). The maximum credit risk corresponds to the carrying amount. For many years, NNIT has not realised any significant losses on receivables. The classification of trade receiva- bles according to maturity date is set out in the note 3.6. Trade Trade Net balance Transaction 10% Million Receivables Payables position exposure1 sensitivity December 31, 2024 CNY 0.9 (0.2) 1.0 1.0 0.1 CZK - 18.0 (18.0) (18.0) (1.8) CHF - 0.9 (0.9) (0.9) (0.1) USD 1.7 9.2 (7.5) (7.5) (0.8) EUR 3.1 13.3 (10.2) (10.2) (1.0) Cash management NNIT is committed to maintain a flexible capital structure. As of December 31, 2024, NNIT had undrawn committed credit facilities in the amount of DKK 129 million (2023: DKK 33 million). The credit facility is subject to a covenant requiring that debt leverage, defined as net debt divided by 12 months rolling adjusted EBITDA, must not exceed 3.00x. The covenant is tested and reported end of each quarter until the maturity of the facility. There is no indication of any difficulties in complying with this covenant. The total credit facility is DKK 400 million (December 2023: 300) of which DKK 100 million matures in 2025. The total draw on the credit facility of DKK 271 million is classified with DKK 100 million as current, and DKK 171 million as long-term, as the maturity of the remaining facility is beyond one year from the reporting date with expiration in 2026. As of December 31, 2024, NNIT had ‘cash and cash equivalents’ DKK 158 million outside Denmark and ‘bank facilities’, net of DKK 271 million in Denmark. Trade Trade Net balance Transaction 10% Million Receivables Payables position exposure1 sensitivity December 31, 2023 CNY 0.2 0.6 (0.4) (0.4) 0.0 CZK - 11.1 (11.1) (11.1) (1.1) CHF 0.3 1.8 (1.5) (1.5) (0.1) USD 3.6 7.9 (4.3) (4.3) (0.4) EUR 3.6 11.7 (8.1) (8.1) (0.8) Capital management NNIT monitors capital on the basis of the solvency ratio, which is calculated on the basis of the total equity as a percentage of the total equity and liabilities. At the end of the year, the solvency ratio was 51.0% (2023: 40.4%). The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 155 5. Other disclosures 5.1 Long-term incentives Long-term share-based incentive program Group Management and the Vice Presidents are included in a long-term share-based incentive program. For more information regarding the long-term share-based incentive program, please refer to note 2.2 'Employee costs' Outstanding restricted stock units (in NNIT shares): Number '000 2024 2023 Outstanding at the beginning of the year 209 141 Long-term incentive program (LTIP) - 125 Transfer to employees (25) (31) Committed to employees - (9) Forfeiture during the year (78) (17) Outstanding at the end of the year (in NNIT shares)2 106 209 Fair value of the RSU's end of period (DKK million)1 10 18 1ꢀThe share price as of December 31, 2024 has been used when calculating the fair value of the RSU’s. 2ꢀKey management has been in total granted 20,487 shares with a fair value of DKK 1.9 million as of December 31, 2024. Share-based payments are recognized at the following amounts: DKK million 2024 2023 Long-term incentive program (LTIP) in NNIT shares - share based 1 1 Incentive program charged to income statement 1 1 Recognized in the income statement: Cost of goods sold - 1 Administration 1 - Total 1 1 Shares are recognized over the four-year vesting period at the market value at the grant date. Value adjust- ments are recognized as financial items. The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 156 5.2 Fee to statutory auditors DKK million 2024 2023 Statutory audit 1.2 2.6 Other assurance engagements 1.4 0.1 Tax advisory services 0.2 1.2 Other services 0.3 1.3 Total fee to statutory auditors 3.0 5.2 Fees for services other than the statutory audit of the financial statements provided by EY Godkendt Revi- sionspartnerselskab Denmark amounted to DKK 1.7 million including other assurance engagements and other services. Fees for other assurance engagements include IT assurance reports and limited assurance on sustainability reporting. Fees for 2023 relates to the Group's former auditor PricewaterhouseCoopers Statsau- toriseret Revisionspartnerselskab. 5.4 Statement of cash flows – specifications DKK million 2024 2023 Changes in working capital Increase/(decrease) in current receivables less non-current transition cost and tax receivables 211 3 Increase/(decrease) in current liabilities less provisions and tax payables (241) (241) Change in trade payables related to investments - 24 Total (30) (214) Purchase of tangible assets Purchase of tangible assets (18) (22) Change in trade payables related to purchase of tangible assets - (24) Total (18) (46) Additional cash flow information1 Cash and equivalents, assets 158 254 Drawn on credit facilities, Non-Current (171) (267) Drawn on credit facilities, Current (100) - Total committed credit facilities 400 300 Financial resources at the end of the year 287 287 Cash flow from operating activities (6) (202) Cash flow from investing activities (34) 900 Free cash flow (40) 698 1ꢀAdditional non-IFRS measures. 'Financial resources at the end of the year' is defined as the sum of cash and cash equivalents at the end of the year (net) and undrawn committed credit facilities. Free cash flow is defined as 'cash flow from operating activities' less 'cash flow from investing activities'. NNIT has a total credit facility of DKK 400 million with Nordea, consisting of DKK 100 million as line of credit and revolving credit facility of DKK 300 million. 5.3 Reversal of non-cash items DKK million 2024 2023 Income taxes 14 33 Amortization, depreciation and impairment losses 52 33 Gain/loss on disposed assets - (1) Gain on sublease 9 (15) Gain on divestment - (120) Increase/(decrease) in provisions, non-current transition cost (3) 8 Provision share-based payments NNIT shares 1 1 Allowances for bad debt (4) 6 Interests 16 28 Sublease addition 18 26 Net foreign exchange differences 17 10 Reversal deferred income (37) - Other adjustments for non-cash items (10) (3) Total 73 (14) The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 157 5.5 Contingent liabilities, other contractual obligations and legal proceedings Other contractual obligations expiring within the following periods from balance sheet date DKK million 2024 2023 Within 1 year 11 18 Between 1 and 5 years 42 5 After 5 years 37 - Total 90 23 Other contractual obligations recognized as an expense 5 28 5.6 Related party transactions and ownership – continued DKK million 2024 2023 Net sales Novo Nordisk Group 212 178 Novo Holdings A/S - - Novo Nordisk Foundation - 2 Total Novo Nordisk Group 212 180 Novonesis Group 5 4 Total Novo Group 217 184 Trade receivables Novo Nordisk Group 66 63 Novonesis Group 1 1 Novo Holding A/S - - Total 67 64 Work in progress Novo Nordisk Group 1 2 Total 1 2 Liabilities from related parties Novo Nordisk Group - 1 Liabilities from related parties - 1 Prepayments from related parties Novo Nordisk Group - 17 Total - 17 Dividends Novo Holdings A/S - - Novo Nordisk A/S - - Total - - The increase is primarily related to cost in connection with new office rental agreements. NNIT and its Danish subsidiary SCALES A/S are jointly taxed with the Danish companies in the Novo Group. The Danish companies are jointly and individually liable for the joint taxation. Any subsequent adjustments to income taxes and withholding taxes may lead to a larger liability. The tax for the individual companies is allo- cated in full on the basis of the expected taxable income. The Group will from time to time receive inquiries from local tax authorities and be part of various legal disputes. Based on present knowledge the outcome is not expected to impact the Group’s financial position significantly. 5.6 Related party transactions and ownership Ownership NNIT A/S is controlled by Novo Holdings A/S , of which the Novo Nordisk Foundation is the ultimate owner. The consolidated financial statements of the ultimate parent company, the Novo Nordisk Foundation, may be obtained from the Novo Nordisk Foundation, Tuborg Havnevej 19, DK-2900 Hellerup, Denmark. Related party transactions NNIT has engaged in related party transactions regarding ordinary business with Novo Holdings A/S, the Novo Nordisk Group, the Novonesis Group and Xellia Pharmaceuticals Group. Further, NNIT has sold a Vendor Loan Note to Novo Holdings A/S at book value of DKK 221 million. The sold Vendor Loan Note was issued in connec- tion with the divestment of Aeven. There have been no transactions other than the payment of remuneration with the Group Management of NNIT A/S and the NNIT Board of Directors. For information on remuneration to the Group Management of NNIT, please refer to note 2.2 'Employee costs'. The figures for related parties for 2023 are for the continuing business. The Bigger Picture Sustainability Statements Financial Statements – Consolidated Financial Statements NNITꢀꢁAnnual Report 2024 158 5.6 Related party transactions and ownership – continued Companies in the NNIT Group: Year of Percentage incorporation/ Share of shares Country acquisition capital owned NNIT (Tianjin Technology Co. Ltd.) China 2007 CNY 10,804,229 100 NNIT Switzerland AG Switzerland 2010 CHF 100,000 100 NNIT Germany GmbH Germany 2011 EUR 25,000 100 NNIT Inc. USA 2011 USD 3,251,000 100 NNIT UK Ltd.1 UK 2015 GBP 50,000 100 SCALES A/S Denmark 2017 DKK 600,000 100 NNIT Ireland Ltd Ireland 2018 EUR 100 100 NNIT Poland Sp. Z o.o. Poland 2019 PLN 5,000 100 NNIT Singapore Holdings Pte. Ltd. Singapore 2019 SGD 546,278 100 NNIT Singapore Pte. Ltd. Singapore 2019 SGD 66,700 100 Excellis Health Solutions LLC USA 2020 USD 250,000 100 Excellis Europe Ltd.2 UK 2020 GBP 100 100 SL Controls Ltd. Ireland 2021 EUR 100 100 SL Controls USA Inc. USA 2021 USD 60,000 100 NNIT Italy S.r.l Italy 2022 EUR 40,000 100 NNIT España Consultoria Tecnologica y de la informaction siciedad limitada Spain 2022 EUR 50,000 100 NNIT Czech Republic 2022 s.r.o. Czech Republic 2023 CZK 450,000 100 NNIT Digital & Life Sciences Philippines Inc. Philippines 2023 PHP 11,200,000 100 1ꢀNNIT UK Limited, registration number 09399926, is exempt from the UK requirements relating to the audit of financial statements under section 479A of the Companies Act 2006. 2ꢀExcellis Europe Ltd., registration number 09184253, is exempt from the UK requirements relating to the audit of financial statements under section 479A of the Companies Act 2006. 5.7 Events after the balance sheet date There have been no events after the balance sheet date which would have a significant impact on an assess- ment of NNIT's financial position as of December 31, 2024. The Bigger Picture Sustainability Statements Financial Statements – Parent Company Financial Statements NNITꢀꢁAnnual Report 2024 159 Parent Company Financial Statements Income Statement Balance Sheet Statement of Changes in Equity Notes The Bigger Picture Sustainability Statements Financial Statements – Parent Company Financial Statements NNITꢀꢁAnnual Report 2024 160 Income Statement for the year ended December 31 DKK million Note 2.1 2024 845 2023 Revenue 690 Production cost 794 648 Gross profit 51 42 Sales and Marketing cost 2.1 2.1 38 100 (87) 34 97 Administration cost Operating profit before special items (89) Special items 2.2 32 (3) Operating profit (119) (86) Financial income 4.1 4.1 131 28 140 55 Financial expenses Profit before income taxes (16) (1) Income taxes (22) (27) Profit/(loss) from continuing operations 6 26 Profit/(loss) from discontinued operations 3.7 4.2 - 18 Net profit for the year 6 44 The Bigger Picture Sustainability Statements Financial Statements – Parent Company Financial Statements NNITꢀꢁAnnual Report 2024 161 Balance Sheet as of December 31 EQUITY AND LIABILITIES ASSETS DKK million Note 2024 2023 DKK million Note 2024 2023 Share capital 250 414 39 250 437 9 Intangible assets Tangible assets Lease assets Transition cost 3.1 3.2 4.3 50 5 103 13 12 5 31 Retained earnings Reserve IT-development projects Total equity 703 696 14 Lease liabilities 4.3 3.6 97 12 - 7 - 71 171 - 3 - 2 26 12 97 267 10 417 Financial assets 3.3 3.3 3.4 715 369 6 921 351 25 Prepayments received Employee benefit obligations Provisions Trade payable Loan - related parties Credit facilities Financial assets – related parties Trade receivables Total non-current assets 1,261 1,359 Inventories Trade receivables Trade receivables – related parties Work in progress Work in progress – related parties Transition cost Other receivables Prepayments Deferred taxes Tax receivables 3 148 68 - - 3 35 14 21 16 24 - 2 220 54 2 1 3 24 13 69 1 28 29 446 3.4 Other non-current liabilities Total non-current liabilities 358 Prepayments received Prepayments received – related parties Deferred income Lease liabilities Employee benefit obligations Provisions 4 1 - 29 6 67 45 13 15 77 138 13 63 29 4.3 3.6 10 19 28 107 95 52 38 - 3.5 3.7 Trade payables Trade payables – related parties Loan - related parties Employee costs payable Tax payables Credit facilities Other current liabilities Total current liabilities Financial assets – related parties Cash and cash equivalents Total current assets 332 129 49 532 - 197 692 Assets related to discontinued operations Total assets - - 1,593 1,805 Liabilities related to discontinued operations Total equity and liabilities 3.7 - - 1,593 1,805 The Bigger Picture Sustainability Statements Financial Statements – Parent Company Financial Statements NNITꢀꢁAnnual Report 2024 162 Statement of Changes in Equity as of December 31 Reserve IT development projects Share capital Treasury share Retained earnings Proposed dividends DKK million Total 2024 Balance at the beginning of the year 250 (1) 438 9 - 696 Proposed allocation of Net profit for the year Share-based payments - - - - (24) 1 30 - - - - 6 1 Balance at the end of the year 250 (1) 415 39 703 The Bigger Picture Sustainability Statements Financial Statements – Parent Company Financial Statements NNITꢀꢁAnnual Report 2024 163 Statement of Changes in Equity as of December 31 Reserve IT development projects Share capital Treasury share Retained earnings Proposed dividends DKK million Total 2023 Balance at the beginning of the year 250 (1) 327 75 - 651 Net profit for the year - - - 44 66 - (66) - - - - - 44 - Capitalized IT development projects Share-based payments - - - 1 1 Balance at the end of the year 250 (1) 438 9 696 The Bigger Picture Sustainability Statements Financial Statements – Parent Company Financial Statements NNITꢀꢁAnnual Report 2024 164 Notes to the Parent Company Financial Statements 1. Basis of preparation 4. 4.1 Financial income and expenses 4.2 Proposed allocation of Net profit for the year 172 Capital structure and financing items 1.1 Accounting policies 165 172 2. Results for the year 4.3 Leases 173 2.1 Employee costs 2.2 Special items 166 166 5. Other disclosures 5.1 Fee to statutory auditors 174 3. Operating assets and liabilities 5.2 Contingent liabilities, other contractual obligations and legal proceeding 3.1 Intangible assets 3.2 Tangible assets 3.3 Financial assets 167 168 169 174 174 5.3 Related party transactions and ownership 3.3 Financial assets (Financial assets - related parties) 169 169 169 170 170 3.4 Trade receivables 3.5 Deferred taxes 3.6 Provisions 3.7 Discontinued operations The Bigger Picture Sustainability Statements Financial Statements – Parent Company Financial Statements NNITꢀꢁAnnual Report 2024 165 1. Basis of preparation 1.1 Accounting policies The parent company financial statements are presented in accordance with the Danish Financial Statements Act. (class D) and other accounting regulations for companies listed on NASDAQ Copen- hagen. ment under financial income in the financial year in which the dividends are declared. Cash flow statement With reference to section 86(4) of the Danish Finan- cial Statements act no cash flow statement has beenprepared for the parent company as cash flows are included in the consolidated financial state- ments of NNIT A/S. Investments in subsidaries Investments in subsidiaries are measured at cost. If there is any indication of impairment, investments are tested for impairment as described in the accounting policies applied by the Group. If the cost exceeds the recoverable amount, the investment is written down to this lower value. The accounting policies used in the preparation of the financial statements are consistent with those of last year. For the group cash flow statement, please refer to page 115. The parent company also applies IFRS 16, IFRS 15, IFRS 2 and IFRS 9 in accordance with IFRS Accounting Standards as adopted by the EU. The contingent consideration for Excellis Health Solutions, SCALES, Valiance Partner, HGP Group and SL Controls is recognized as an employee benefit obligation and is accrued over the period from the acquisition date until the payment is unconditional based on expected achieved performance. The cost is recognized as an addition in investment in subsid- iaries. Special items are shown separately in the parent company to give a true and fair presentation of the company's ordinary operations. The parent company financial statements are contin- uously presented according to the same practice as the consolidated financial statements, except for the following deviations. Equity The reserve for development costs comprises recognised development costs. The reserve cannot be used to distribute dividends or cover losses. The reserve will be reduced or dissolved if the recognised development costs are no longer part of the Compa- ny's operations by a transfer directly to the distribut- able reserves under equity. Supplementary accounting policies for the parent company Financial assets Dividends from investments in subsidiaries. Dividends from investments in subsidiaries are recognized as income in the Parent's income state- The Bigger Picture Sustainability Statements Financial Statements – Parent Company Financial Statements NNITꢀꢁAnnual Report 2024 166 2. Results for the year 2.1 Employee costs 2.2 Special items DKK million 2024 2023 DKK million 2024 2023 Wages and salaries Pensions 368 40 582 55 Special items relates to: Restructuring cost 39 9 12 (15) - Other employee costs Total employee costs 14 21 Loss (gain) from subleases Other 422 658 4 Cost regarding acquisition and disposal of operations Total special items (20) 32 99 96 Employee costs, discontinued operations Total employee costs, continuing operations Capitalized under IT development projects - 422 (15) 407 287 371 (3) Total special items, discontinued operations - 99 368 Total special items, continuing operations 32 (3) Included in the income statement under the following headings: If special items had been recognized in operating profit before special items, they would have been included in the following line items: Production cost 315 35 299 27 Production cost (11) 43 - Sales and Marketing cost Administration cost Administration cost Total special items (3) (3) 51 37 32 Special items 6 5 Total employee costs included in the income statement 407 368 Average number of full-time employees, total - 745 544 Average number of full-time employees, continuing operations 500 For further information about fees to Board of Directors and salary to Group Management, please refer to note 2.2 'Employee costs', in the consolidated financial statements. The Bigger Picture Sustainability Statements Financial Statements – Parent Company Financial Statements NNITꢀꢁAnnual Report 2024 167 3. Operating assets and liabilities 3.1 Intangible assets IT development projects under construction IT development projects under construction IT development IT development projects DKK million projects 2024 2023 Costs at the beginning of the year Additions Disposals1 6 - 9 44 - 15 44 (3) - 67 9 2 9 69 18 (72) - (3) 41 44 (72) 2 - Transfer (41) 12 (2) 9 Cost at the end of the year 56 6 15 Amortization and impairment loss at the beginning of the year Amortization Amortizations reversed on disposals2 3 4 - - - - 3 4 59 - - - - - 59 - (1) 6 (1) 6 (56) 3 (56) 3 Amortization and impairment loses at the end of the year Carrying amount at the end of the year 38 12 50 3 9 12 Amorization period 3-10 years 1 Whereof DKK 26 Million in 2023 relates to discontinued operations. 2 Whereof DKK 10 Million in 2023 relates to discontinued operations. IT development projects mainly include NNIT's ERP system which is used as basis for the Group's day-to-day operations. IT development projects under construction consist of both internal IT-systems and developed applications for customer services. The Bigger Picture Sustainability Statements Financial Statements – Parent Company Financial Statements NNITꢀꢁAnnual Report 2024 168 3.2 Tangible assets Payments on account and assets under construction Other Leasehold Land and buildings Other Leasehold DKK million equipment improvements 2024 equipment improvements 2023 Costs at the beginning of the year Additions Disposals1 1 - 46 5 47 5 1 - 2 11 (12) - 46 - - 12 (12) - 49 23 (25) - - (42) - (42) - - (1) Transfer - (1) 1 Cost at the end of the year 1 9 10 - 1 46 - 47 Depreciation and impairment losses at the beginning of the year Depriciation 1 - 41 4 42 4 - - - 1 - 37 4 - - - 38 4 Depriciation reversed on disposals during the year - (41) (41) - - - Depreciation and impairment losses at the end of the year 1 - 4 5 5 5 - - 1 - 41 5 - - 42 5 Carrying amount at the end of the year Depriciation period 3-10 years 5-10 years 10-50 years 3-10 years 5-10 years 1ꢀWhere of DKK 25 Million in 2023 relates to discontinued operations. The Bigger Picture Sustainability Statements Financial Statements – Parent Company Financial Statements NNITꢀꢁAnnual Report 2024 169 3.3 Financial assets 3.4 Trade receivables Investments in DKK million 2024 2023 Other receivables Total trade receivables (gross) Allowances for bad debt in the year Total trade receivables 154 - 251 6 DKK million Deposits subsidiaries 2024 2023 Cost 154 245 Cost at the beginning of the year 212 9 25 5 684 24 - 921 38 687 234 - * Whereoff DKK 6 million (2023: DKK 25 million) is presented as non-current Additions Disposals (221) - (221) 3.5 Deferred taxes DKK million Transfer to Other receiva- bles under curent assets 2024 2023 - (23) - (23) - Carrying amount at the end of the year Intangible assets (9) 6 (1) - 7 708 715 921 Tangible assets 21 1 Current assets - Please refer to note 5.6 in the consolidated financial statements for a listing of subsidiaries in the NNIT Group. Lease receivable and liabilities Provisions 11 13 - 4 44 - 3.3 Financial assets (Financial assets - related parties) DKK million Share based programs At the end of the year 2024 2023 21 69 Long term loan beginning of the year Additions 351 22 342 20 Deferred tax has been calculated based on current tax rate of 22%. Installment (14) 10 - Exchange rate adjutstment Cost at the end of the year (11) 351 At the beginning of the year 69 - (5) 12 369 Taxes related to discontinued operations Adjustments related to previous years Movements within the year (12) (36) 21 30 32 69 Carrying amount at the end of the year 369 351 At the end of the year The Bigger Picture Sustainability Statements Financial Statements – Parent Company Financial Statements NNITꢀꢁAnnual Report 2024 170 3.6 Provisions 3.7 Discontinued operations DKK million 2024 2023 June 22, 2022 it was announced that NNIT was divesting the infrastructure operations (Hybrid Cloud Solutions and selected parts of Cloud & Digital Solutions) and in December 2022 it qualified for recognition as Discontin- uing operations according to IFRS 5 which also has retrospective impact. Provision for refurbishment obligation At the beginning of the year Additions 26 7 26 3 DKK million 2024 2023 Disposals - (3) 26 Revenue - - - 504 439 65 At the end of the year 33 Production cost Gross profit ꢀProvision for refurbishment obligation, included under non-current liabilities, relates to the leasehold agreements in the Parent company with a refurbishment obligation. Distribution cost - - - 16 56 Other provisions At the beginning of the year Additions for the year Utilized Administration cost 15 2 - 15 - Operating profit before special items (7) Gain from discontinuing operations Special items - - - 101 99 (15) 2 At the end of the year 15 Operating profit (5) Provision are recognized in the balance sheet as follows: Financial income - - - - - Non-current liabilities Current liabilities Total liability 7 28 35 26 15 41 Financial expenses Profit before income taxes (5) Income taxes - (23) Profit/(loss) for the year of discontinued operations - 18 The Bigger Picture Sustainability Statements Financial Statements – Parent Company Financial Statements NNITꢀꢁAnnual Report 2024 171 3.7 Discontinued operations – continued Assets and liabilities related to discontinued operations Divestment of infrastructure business DKK million DKK million 2024 2023 2024 2023 Consideration received/receivable: Cash Fair value of contingent consideration Net working capital/Net interest bearing debt adj. and other adjustments Sales price for discontinued operations incl. adjustments Intangible assets - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,001 200 (209) 992 Tangible assets Financial assets Deferred taxes Transition cost Transaction costs Sales price for discontinued operations, after transaction costs - 51 Trade receivables - 941 Trade receivables - related parties Work in progress Carrying amount of net assets sold Gain on sale of discontinued operations before tax - 796 - 145 Work in progress - related parties Contracts assets Tax on divestment Gain on sale of discontinued operations after tax - 44 - 101 Prepayments Assets related to discontinued operations Assets and liabilities in the business sold comprise of: Intangible assets Tangible assets Lease assets Financial assets Deposits Transition cost Trade receivables Work in progress Prepayments - - - - - - - - - - 102 501 16 5 3 80 96 28 107 938 Prepayments received, transition cost Prepayments received, work in progress Employee costs payables - - - - - - - - - - - - Tax payables Other current liabilities Liabilities related to discontinued operations Net assets related to discontinued operations - - Total assets Lease liabilities Provisions - - 12 3 Prepayments received, transition cost Prepayments received, work in progress Trade payables related parties Employee costs payables Other current liabilities Total liabilities - - - - - - 40 16 27 43 1 142 Net assets - 796 The Bigger Picture Sustainability Statements Financial Statements – Parent Company Financial Statements NNITꢀꢁAnnual Report 2024 172 4. Capital structure and financing items 4.1 Financial income and expenses 4.2 Proposed allocation of Net profit for the year DKK million 2024 2023 DKK million 2024 2023 Financial income Reserve IT-development projects Retained earnings 30 (24) 6 (66) 110 44 Dividends from subsidaries Realized/Unrealized gain on currency Interest income from related parties Interest income - other external Interest related to tax 83 20 18 10 - 108 - Total allocated Net profit 17 14 1 Total financial income 131 140 Total financial income, discontinued operations - - Total financial income, continuing operations 131 140 Financial expenses Interest expense - credit facilities Interest expense – other related parties Interest expenses lease liability Bank charges and other fees Realized /Unrealized loss on currency Interest expense related to tax Total financial expenses 17 3 32 2 4 2 2 9 - 10 - 2 28 55 Total financial expenses, discontinued operations - - Total financial expenses, continuing operations 103 55 The Bigger Picture Sustainability Statements Financial Statements – Parent Company Financial Statements NNITꢀꢁAnnual Report 2024 173 4.3 Leases Lease assets Lease liabilities Lease liabilities expiring within the following periods from the balance sheet date: Rental of premises Company cars DKK million Equipment 2024 DKK million 2024 2023 2024 Within 1 year 15 59 47 10 - Costs at the beginning of the year Additions Disposals 174 91 (11) 254 - 12 - 14 2 (9) 188 105 (20) 273 Between 1 and 5 years After 5 years 61 Costs at the end of the year 12 7 Total lease liability, non-discounted 135 57 Depreciation and impairment loss at the beginning of the year Depreciation Depreciation reversed on disposals Depreciation and impairment loss at Lease liabilities are recognized in the balance sheet as follows: Non-current liabilities 150 25 (11) - 1 - 7 3 (5) 157 29 (16) 97 10 3 45 48 Current liabilities Total lease liabilities 107 the end of the year 164 90 1 5 2 170 103 Recognized in the profit and loss statement Interest expenses related to lease liabilities Carrying amount at the end of the year 11 4 - 2 - Expense relating to leases of low-value assets, not capitalized Rental of premises IT- Company 4 2 DKK million equipment cars 2023 In 2024, NNIT has paid DKK 56 million (2023: DKK 47 million) regarding lease agreements where of interest expenses related to lease liabilities amount to DKK 4 million (2023: 2 million) and repayment of lease liability amount to 52 million (2023: 45 million). 2023 Costs at the beginning of the year Additions Disposals 471 21 (318) 174 17 13 3 (2) 14 501 24 (337) 188 - (17) - Subleases Costs at the end of the year For information regarding subleases, please refer to note 4.3 in the consolidated financial statements. Subleases relates only to the Parent Company. Depreciation and impairment loss at the beginning of the year Depreciation 416 10 17 - 4 5 437 15 Depreciation reversed on disposals Depreciation and impairment loss at the end of the year (276) (17) (2) (295) 150 24 - - 7 7 157 31 Carrying amount at the end of the year The Bigger Picture Sustainability Statements Financial Statements – Parent Company Financial Statements NNITꢀꢁAnnual Report 2024 174 5. Other disclosures 5.1 Fee to statutory auditors DKK million 5.2 Contingent liabilities, other contractual obligations and legal proceeding – continued 2024 2023 DKK million 2024 2023 Statutory audit 1.0 1.4 - 1.9 0.1 1.0 1.1 4.1 Other assurance engagements Tax advisory services Other services Other contractual obligations expiring within the following periods from balance sheet date Within 1 year Between 1 and 5 years After 5 years Total 9 38 37 84 18 5 0.3 2.7 Total fee to statutory auditors - Fees for services other than the statutory audit of the financial statements provided by EY Godkendt Revi- sionspartnerselskab Denmark amounted to DKK 1.7 million including other assurance engagements and other services. Fees for other assurance engagements include IT assurance reports and limited assurance on sustainability reporting. Fees for 2023 relates to the NNIT A/S's former auditor PricewaterhouseCoopers Stat- sautoriseret Revisionspartnerselskab. 23 Other contractual obligations in the income statement for the year 5 28 Other contractual obligations include services and construction agreements. The increase is primarily related to cost in connection with new office rental agreement. NNIT and its Danish subsidiary SCALES A/S are jointly taxed with the Danish companies in the Novo Group. The Danish companies are jointly and individually liable for the joint taxation. Any subsequent adjustments to income taxes and withholding taxes may lead to a larger liability. The tax for the individual companies is allo- cated in full on the basis of the expected taxable income. 5.2 Contingent liabilities, other contractual obligations and legal proceeding NNIT has entered into short-term and low-value lease agreement for printers, coffee makers, watercoolers and storage. The total value of these agreements are immaterial. For information regarding contingent liabilities and legal proceedings, please refer to note 5.5 'Contingent liabil- ities, other contractual obligations and legal proceedings', in the consolidated financial statements. 5.3 Related party transactions and ownership In accordance with the Danish Financial Statement act section 98c (7) related party transactions are not disclosed as they are carried out at an arm's length basis. For information on remuneration to Group Management of NNIT, please refer to note 2.2 'Employee costs', in the consolidated financial statement The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 175 Statements Management's Statement Independent Auditor's Reports Independent auditor's limited assurance report on Sustainability Statements The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 176 Management's Statement In our opinion, the Management Review is also prepared in accordance with relevant laws and regulations and contains a fair review of the development of the Group's and the Parent's business and financial matters, the results for the year and of the Parent's financial position and the financial position as a whole of the entities included in the Consolidated Financial Statements, together with a description of the principal risks and uncertainties that the Group and the Parent face. Copenhagen, February 18, 2025 The Board of Directors and the Executive Management have today considered and approved the annual report of NNIT A/S for the financial year 2024. NNIT A/S EXECUTIVE MANAGEMENT The Consolidated Financial Statements are prepared in accordance with IFRS Accounting Standards as adopted by the EU and disclo- sure requirements for listed companies in Denmark and the Parent Company Financial Statements are prepared in accordance with the Danish Financial Statement Act. Pär Fors President and CEO Carsten Ringius Executive Vice President and CFO BOARD OF DIRECTORS Furthermore, in our opinion, the annual report of NNIT A/S for the financial year 31 December 2024, with the file name nnit-2024-12-31-en.zip, are prepared, in all material respects, in accord- ance with the ESEF Regulation. In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the Group's and the Parent's financial position at 31 December 2024 as well as of the results of their operations and the Group's cash flows for the financial year 31 December 2024 Carsten Dilling Chairman Eivind Kolding Deputy Chairman Jan Winther We recommend the annual report for adop- tion at the Annual General Meeting. Nigel Govett Christian Kanstrup Caroline Serfass The Sustainability Statement is prepared in accordance with the European Sustainability Reporting Standards ESRS as required by the Danish Financial Statements Act paragraph 99a as well as article 8 in the EU Taxonomy regulation. Frederik Sparre Willumsen Employee-elected representative Kim Høyer Employee-elected representative Dorte Broch Pedersen Employee-elected representative The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 177 Independent auditor's reports To the Shareholders of NNIT A/S Report on the audit of the Consolidated Financial Statements and Parent Company Financial Statements the financial position of the Group at 31 December 2024 and of the results of the Group's operations and cash flows for the financial year 1 January – 31 December 2024 in accordance with IFRS Accounting Standards as adopted by the EU and addi- tional requirements of the Danish Financial Statements Act. Basis for opinion requirements applicable in Denmark, and we have fulfilled our other ethical respon- sibilities in accordance with these require- ments and the IESBA Code. Opinion We have audited the consolidated financial statements and the parent company finan- cial statements of NNIT A/S for the finan- cial year 1 January – 31 December 2024, which comprise income statement, balance sheet, statement of changes in equity and notes, including material accounting policy information, for the Group and the Parent Company, and a consolidated statement of comprehensive income and a consoli- dated cash flow statement. The consoli- dated financial statements are prepared in accordance with IFRS Accounting Stand- ards as adopted by the EU and additional requirements of the Danish Financial State- ments Act, and the parent company finan- cial statements are prepared in accordance with the Danish Financial Statements Act. We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional requirements appli- cable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the consol- idated financial statements and the parent company financial statements" (herein- after collectively referred to as "the finan- cial statements") section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. To the best of our knowledge, we have not provided any prohibited non-audit services as described in article 5(1) of Regulation (EU) no. 537/2014. Further, in our opinion the parent company financial statements give a true and fair view of the financial position of the Parent Company at 31 December 2024 and of the results of the Parent Company's opera- tions for the financial year 1 January – 31 December 2024 in accordance with the Danish Financial Statements Act. Appointment of auditor We were initially appointed as auditor of NNIT A/S on 14 March 2024 for the financial year 2024. Independence We are independent of the Group in accord- ance with the International Ethics Stand- ards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical Our opinion is consistent with our long- form audit report to the Audit Committee and the Board of Directors. In our opinion, the consolidated financial statements give a true and fair view of The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 178 Key audit matters whole and in forming our opinion thereon. We do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled our responsibilities of the risks of material misstatement of Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the finan- cial statements for the financial year 2024. These matters were addressed during our audit of the financial statements as a described in the "Auditor's responsibilities for the audit of the financial statements" section, including in relation to the key audit matters below. Accordingly, our audit included the design and performance of procedures to respond to our assessment the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the financial statements. Key audit matter How our audit addressed the key audit matter Revenue recognition The accounting principles and disclosures on revenue recognition are included in note 1.1, 1.2, 2.1, and 3.4 to the consolidated financial statements. Revenue recognised for 2024 amounts to DKK 1,851 million and the carrying value of the Group’s work in progress at 31 December 2024 amounted to DKK 16 million and related prepayments to DKK 30 million. We obtained an overview of the Group’s revenue arrangements. We have performed procedures to test that revenue had occurred through reperformance of sales transactions from revenue to cash received. In addition, we have tested transactions before and after year-end to test cut-off. Recognition of revenue is significant due to the volume of transactions and the significance of amounts involved. Based on risk and materiality we selected a sample of arrangements. For the selected sample, we tested Management’s assessment of identifying and accounting for arrangements with multiple performance obligations, assumptions used for assessment of the stage of completion, estimates of expected time and cost-to-complete and expected profits. Further significant judgement is required by Management in determining the accounting for arrangements with multiple performance obligation, the stage of completion and expected profit, including assessment of specific project risks and assessment of potential onerous contracts. To assess the accuracy of Management’s assumptions and estimates we performed look-back analysis by comparing the actual profit of projects with the expected profit from budgets in previous periods. We analysed the budget deviations and discussed with Management the possible risk of similar deviations on projects in progress on 31 December 2024. We tested the identification and accounting of arrangements with multiple performance obligations by testing a sample of recognised arrangements to customer contracts and supporting documentation. The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 179 Based on our procedures, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the require- ments of relevant law and regulations. We did not identify any material misstatement of the Management's review. from material misstatement, whether due to fraud or error. requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influ- ence the economic decisions of users taken on the basis of the financial statements. StatementꢁonꢁtheꢁManagement'sꢁreview Management is responsible for the Manage- ment's review. In preparing the financial statements, Management is responsible for assessing the Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the finan- cial statements unless Management either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so. Our opinion on the financial statements does not cover the Management's review, and we do not as part of our audit express any assurance conclusion thereon. Management'sꢁresponsibilitiesꢁ for the financial statements As part of an audit conducted in accord- ance with ISAs and additional requirements applicable in Denmark, we exercise profes- sional judgement and maintain professional scepticism throughout the audit. We also: In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements, or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Management is responsible for the prepa- ration of consolidated financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act and for the preparation of parent company financial statements that give a true and fair view in accordance with the Danish Financial State- ments Act. Auditor'sꢁresponsibilitiesꢁforꢁtheꢁ audit of the financial statements • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, Our objectives are to obtain reasonable assurance as to whether the financial state- ments as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assur- ance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and additional Moreover, it is our responsibility to consider whether the Management's review provides the information required by relevant law and regulations. This does not include the requirements in paragraph 99a related to the Sustainability State- ments covered by the separate auditor’s limited assurance report hereon. Moreover, Management is responsible for such internal control as Management deter- mines is necessary to enable the prepara- tion of financial statements that are free The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 180 we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and the Parent Company to cease to continue as a going concern. ments. We are responsible for the direc- tion, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. cance in the audit of the consolidated finan- cial statements and the parent company financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter. misrepresentations or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appro- priate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's and the Parent Company's internal control. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Report on compliance with the ESEF Regulation As part of our audit of the Consolidated Financial Statements and Parent Company Financial Statements of NNIT A/S, we performed procedures to express an opinion on whether the annual report of NNIT A/S for the financial year 1 January – 31 December 2024 with the file name nnit-2024-12-31-en.zip is prepared, in all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) which includes requirements related to the preparation of the annual report in XHTML format and iXBRL tagging of the Consolidated Financial Statements including notes. • Evaluate the appropriateness of accounting policies used and the reason- ableness of accounting estimates and related disclosures made by Manage- ment. • Evaluate the overall presentation, struc- ture and contents of the financial state- ments, including the note disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. We also provide those charged with governance with a statement that we have complied with relevant ethical require- ments regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. • Conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the finan- cial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Parent Company's ability to continue as a going concern. If • Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial infor- mation of the entities or business units within the group as a basis for forming an opinion on the group financial state- From the matters communicated with those charged with governance, we determine those matters that were of most signifi- The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 181 is prepared, in all material respects, in compliance with the ESEF Regulation based on the evidence we have obtained, and to issue a report that includes our opinion. The nature, timing and extent of proce- dures selected depend on the auditor’s judgement, including the assessment of the risks of material departures from the requirements set out in the ESEF Regula- tion, whether due to fraud or error. The procedures include: suitable element in the ESEF taxonomy has been identified; In our opinion, the annual report of NNIT A/S for the financial year 1 January – 31 December 2024 with the file name nnit- 2024-12-31-en.zip is prepared, in all mate- rial respects, in compliance with the ESEF Regulation. Management is responsible for preparing an annual report that complies with the ESEF Regulation. This responsibility includes: • Evaluating the use of anchoring of exten- sion elements to elements in the ESEF taxonomy; and • The preparing of the annual report in XHTML format; • Reconciling the iXBRL tagged data with the audited Consolidated Financial State- ments. • The selection and application of appro- priate iXBRL tags, including extensions to the ESEF taxonomy and the anchoring thereof to elements in the taxonomy, for all financial information required to be tagged using judgement where necessary; • Testing whether the annual report is prepared in XHTML format; • Ensuring consistency between iXBRL tagged data and the Consolidated Finan- cial Statements presented in human readable format; and • Obtaining an understanding of the company’s iXBRL tagging process and of internal control over the tagging process; Copenhagen, 18 February 2025 EY Godkendt Revisionspartnerselskab CVR No. 30 70 02 28 • Evaluating the completeness of the iXBRL tagging of the Consolidated Financial Statements including notes; • For such internal control as Management determines necessary to enable the preparation of an annual report that is compliant with the ESEF Regulation. • Evaluating the appropriateness of the company’s use of iXBRL elements selected from the ESEF taxonomy and the creation of extension elements where no Mikkel Sthyr Thomas Steen Andersen State Authorised Public Accountant mne47810 State Authorised Public Accountant mne26693 Our responsibility is to obtain reasonable assurance on whether the annual report The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 182 Independent auditor's limited assurance report on Sustainability Statements To the shareholders of NNIT the management to identify the infor- mation reported in the Sustainability Statements (the process) is in accordance with the description set out in the Double materiality assessment & outcome section within the General information part of the Sustainability Statements, pages 47-49; and ments other than audits or reviews of historical financial information (ISAE 3000 (Revised)) and the additional requirements applicable in Denmark. sibilities for the assurance engagement section of our report. Limited assurance conclusion We have conducted a limited assurance engagement on the Sustainability State- ments of NNIT included in the Annual Report 2024, pages 34-109 (the Sustain- ability Statements), for the financial year 1 January – 31 December 2024 including disclosures incorporated by reference listed on page 38. Our independence and quality management The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. We are independent of the Group in accord- ance with the International Ethics Stand- ards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark. We have also fulfilled our other ethical respon- sibilities in accordance with these require- ments and the IESBA Code. • compliance of the disclosures in the section EU Taxonomy within the Environ- ment part, pages 65-70 of the Sustain- ability Statements with Article 8 of EU Regulation 2020/852 (the Taxonomy Regulation). Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Sustainability Statements is not prepared, in all material respects, in accordance with the Danish Financial State- ments Act paragraph 99 a, including: We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Our responsibilities under this standard are further described in the Auditor's respon- EY Godkendt Revisionspartnerselskab applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with Basis for conclusion We conducted our limited assurance engagement in accordance with Interna- tional Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance engage- • compliance with the European Sustain- ability Reporting Standards (ESRS), including that the process carried out by The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 183 Management'sꢁresponsibilitiesꢁforꢁ the Sustainability Statements • the assessment of the materiality of the identified impacts, risks and opportu- nities related to sustainability matters by selecting and applying appropriate thresholds; and the preparation of the Sustainability Statements that are free from material misstatement, whether due to fraud or error; and ethical requirements, professional stand- ards and applicable legal and regulatory requirements. Management is responsible for designing and implementing a process to identify the information reported in the Sustain- ability Statements in accordance with the ESRS and for disclosing this process in the General information part of the Sustaina- bility Statements, page 47-49. This responsi- bility includes: Other matter • the selection and application of appro- priate sustainability reporting methods and making assumptions and estimates The comparative information included in the Sustainability Statements of the Group for the financial year 1 January – 31 December 2023 was not subject to an assurance engagement. Our conclusion is not modified in respect of this matter. • making assumptions that are reasonable in the circumstances. that are reasonable in the circumstances. Management is further responsible for the preparation of the Sustainability State- ments, in accordance with the Danish Financial Statements Act paragraph 99a, including: Auditor'sꢁresponsibilitiesꢁforꢁ the assurance engagement • understanding the context in which the Group’s activities and business relation- ships take place and developing an under- standing of its affected stakeholders; Our objectives are to plan and perform the assurance engagement to obtain limited assurance about whether the Sustainability Statements are free from material misstate- ment, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influ- ence decisions of users taken on the basis of the Sustainability Statements as a whole. Inherent limitations in preparing the Sustainability Statements In reporting forward-looking information in accordance with ESRS, management is required to prepare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different since anticipated events frequently do not occur as expected. • compliance with the ESRS; • the identification of the actual and poten- tial impacts (both negative and positive) related to sustainability matters, as well as risks and opportunities that affect, or could reasonably be expected to affect, the Group’s financial position, finan- cial performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term; • preparing the disclosures in the section EU Taxonomy within the Environment part, pages 65-70 of the Sustainability Statements, in compliance with Article 8 of the Taxonomy Regulation; • designing, implementing and maintaining such internal control that management determines is necessary to enable The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 184 Our other responsibilities in respect of the Sustainability Statements include: sures where material misstatements are likely to arise, whether due to fraud or error, in the Sustainability Statements. • Obtained an understanding of the Group’s reporting processes relevant to the preparation of its Sustainability Statements including the consolidation processes by obtaining an understanding of the Group’s control environment, processes and information systems relevant to the preparation of the Sustainability Statements but not eval- uating the design of particular control activities, obtaining evidence about their implementation or testing their operating effectiveness; As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional judgement and main- tain professional scepticism throughout the engagement. • Identifying disclosures where material misstatements are likely to arise, whether due to fraud or error; and In conducting our limited assurance engage- ment, with respect to the process, we: Our responsibilities in respect of the process include: • Designing and performing procedures responsive to disclosures in the Sustain- ability Statements where material misstatements are likely to arise. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtained an understanding of the process by performing inquiries to under- stand the sources of the information used by management; and reviewing the Group’s internal documentation of its process; and • Obtaining an understanding of the process but not for the purpose of providing a conclusion on the effec- tiveness of the process, including the outcome of the process; • Evaluated whether the evidence obtained from our procedures about the process implemented by the Group’s was consistent with the description of the Process set out within the General infor- mation part of the Sustainability State- ments, pages 47-49. • Evaluated whether material information identified by the process is included in the Sustainability Statements; • Considering whether the information identified addresses the applicable disclo- sure requirements of the ESRS; and Summary of the work performed A limited assurance engagement involves performing procedures to obtain evidence about the Sustainability Statements. • Evaluated whether the structure and the presentation of the Sustainability State- ments are in accordance with the ESRS; • Designing and performing procedures to evaluate whether the process is consistent with the Group’s description of its process, as disclosed within the General information part of the Sustaina- bility Statements, pages 47-49. In conducting our limited assurance engagement, with respect to the Sustaina- bility Statements, we: • Performed inquiries of relevant personnel and analytical procedures on selected information in the Sustainability State- ments; The nature, timing and extent of procedures selected depend on professional judge- ment, including the identification of disclo- The Bigger Picture Sustainability Statements Financial Statements NNITꢀꢁAnnual Report 2024 185 • Performed substantive assurance proce- dures on selected information in the Sustainability Statements; • Evaluated methods, assumptions and data for developing material estimates and forward-looking information and how these methods were applied; • Obtained an understanding of the process to identify EU taxonomy economic activities for turnover, CAPEX and OPEX and the corresponding disclo- sures in the Sustainability Statements; Copenhagen, 18 February 2025 • Evaluated the presentation and use of EU taxonomy templates in accordance with relevant requirements; and EY Godkendt Revisionspartnerselskab CVR no. 30 70 02 28 • Reconciled and ensured consistency between the reported EU taxonomy economic activities and the items reported in the primary financial state- ments including the disclosures provided in related notes. Mikkel Sthyr State Authorised Public Accountant mne26693 Lars Fermann State Authorised Public Accountant mne45879 Bringing Digital Transformation to Life NNIT A/S Weidekampsgade 14 DK-2300 Copenhagen S Denmark Tlf.: +45 7024 4242 www.nnit.com [email protected] CVR no. 21 09 31 06

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