At this time, I would like to welcome everyone to NNIT's Q2 2026 results. Today's call is being recorded. If you have any objections, please disconnect at this time. All participants will be on listen only mode throughout the presentation, and afterwards there will be a question and answer session. Now to the floor to speakers. You may now begin. Thank you very much, operator. Everybody, please turn to slide number one. Good morning, and thank you for joining NNIT's webcast. My name is Lars Petersen. I am heading up the communication department at NNIT. With me today at the headquarter in Copenhagen, I have the pleasure of our CEO, Claus Rydkjær, and CFO, Carsten Ringius. In a minute, they will present the business highlights and second quarter results for 2026, which we released yesterday afternoon. Please turn to slide number three. Claus will go through the key highlights, including the regional performance, and then Carsten will follow with the group financial highlights and financial outlook. Before heading to the next slide, please do pay attention to the disclaimer in the bottom of the slide. Having digested that disclaimer, let's turn to slide number four, and I will give the words to Claus, please. Thank you, Lars. Good morning, everybody. My name is Claus Rydkjær, and I am, as mentioned, the CEO of NNIT. I will now briefly go through the second quarter 2026 key financial figures. First of all, we are tracking according to our internal plan. Our revenue for the second quarter amounted to DKK 442 million, corresponding to a reported revenue growth of -4.5% and constant currency growth of -4.4%. Despite the revenue development continues to be negative, we improved compared with the first quarter, where the constant currency growth was -7.3%. The sequential improvement is driven by the growth initiatives effectuated in the beginning of the quarter and improved order entry. Our group EBIT, excluding special items, was DKK 21 million, equal to a margin of 4.8%. We are pleased to see that the profitability was broadly in line with the same quarter last year, despite significantly less revenue. This is due to operational improvement with uplift in utilization, capacity adjustments carried out, and realization of cost savings. Please turn to the next slide. During the quarter, we had a laser sharp focus on the performance, not only on a group level, but down to every single customer-facing consultant. Our performance management setup is running at a higher cadence where we, across the management team, are being very operationally focused. This is necessary to change current trajectory. Therefore, we are also pleased to see uplifts in the utilization across our consultants across regions and much lower bench time. Moreover, we continue to receive high customer satisfaction scores from our customers and see more sales activity. Overall, we are trending in the right direction. As we mentioned at our last webcast in May, we launched two AI platforms, Lumina and Alera. In the second quarter, we have deployed our AI services to selected customers across our regions. From the first use cases, we see tangible efficiency gains, not only from an NNIT perspective, but also from a customer perspective. Beyond time to delivery reductions, we have become more competitive where we are now bidding on projects that we would normally not pursue. It is especially within new system upgrades where we can deliver much more tailor-made systems than the current standardized systems currently being used by customers, particularly in the public segment. At the Q1 webcast, we mentioned that we need to act and conduct an exhaustive analysis of the company, including operating model and commercial execution, leaving no stones unturned to ensure that we can restore growth and lift profitability. Late in the quarter, we completed this strategic review that confirmed NNIT's core strength, a strong position with big pharma, high customer loyalty and satisfaction, and deep domain expertise. The review also made clear that to fully unlock this potential, we need to sharpen our commercial delivery and operating model. We are therefore redesigning how we organize what we take to market and how we sell it. We will share more detail as this work concludes. Therefore, we have kicked off a comprehensive transformation program that forms the foundation for our new strategic direction. Our aspiration is clear. We want NNIT to become an innovative and AI-enabled niche specialist serving the international life sciences industry and regulated industries in Denmark. As part of the program, we are already addressing near to mid-term performance improvements whilst initiating the strategic direction and ambition for the company in the longer term. At a later stage, we will share more details about the transformation program and the updated strategy for NNIT. The transformation work is underway, and I am confident that it puts us on the right path. Lastly, I will just briefly highlight that we have maintained our full year financial outlook. We continue to expect to see further improvements to the revenue from the initiatives carried out, and profitability gradually improving as part of revenue uplift and effectuated cost savings initiatives. Please turn to the next slide. In our Life Sciences regions, we see a somewhat fragmented picture. However, the revenue in the second quarter has contracted across the regions, which mainly can be attributed to the lower than usual order entry in the first quarter. Despite the revenue decline and lower profitability, the financial performance in Region Europe was as internally expected. In constant currency, revenue declined by 11.9%, impacted by the lower order entry in Q1, and continued customer hesitation amongst tier 1 customers. Region Europe has continued to grow its lower tier segments, and we see further growth opportunities based on the current demand. During the quarter, we scaled up delivery on an AI engagement with a mid-tier global pharma client. More broadly, AI demand continues to build our service. Our AI services now feature in a significantly higher share of our bids than just a few quarters ago. The regional EBIT declined compared to the same period last year, driven by the revenue decline. This was partly offset by the materialization of cost savings and capacity adjustments we have carried out. At our last webcast, we said that we expected Region US to gradually improve through the coming quarters. Region U.S.'s revenue declined by 11.2% in Q2 on the back of a soft order entry in Q1. However, the quarter-over-quarter performance improved. Especially towards the end of the quarter, the sales activity increased where the U.S. won a number of contracts forming a growing backlog for the rest of the year and leading into next year. In Q1, we noted our participation in the U.S. National Drug Code program, the 12-digit NDC pilot program. The program has now advanced to its second phase and received solid commercial traction with multiple contracts signed. While individual deal sizes remain modest, we see this as a meaningful growth opportunity as the NDC transition gathers pace from across the industry. One of the key highlights in Q2 was the Region U.S.'s return to strong profitability. The margin was 29.5%, compared with 21.7% in the same quarter last year, and 2.99% in Q1 of this year. The uplift is driven by realization of initiated cost reductions and utilization improving. Furthermore, we have adjusted the capacity, we also structurally lowered the non-employee driven costs. In the second quarter, Region Asia continued to be significantly impacted by a decline in revenue from an existing large tier 1 customer that was not possible to offset from new contract signings. As a result, the constant currency growth was -10.6%. As we have mentioned previously, Region Asia has expanded its sales strategy to target local pharma and biotech companies. The region has continued to execute on that strategy in Q2, bringing in more local market customers with more projects focusing on AI. After the quarter close, we announced the divestment of Singapore. We want to channel our focus on the other life sciences areas where we do see opportunities to grow, which also the strategic analysis concluded. The region's EBIT margin declined year-over-year due to the lower revenue. Beyond cost savings materializing and planned, Region Asia has continued to tighten its cost base and adjust capacity in areas with low demand. Please turn to the next slide, where I will go through Public Denmark and SCALES. The Public Denmark segment delivered strong growth of 10% in Q2, driven by ramping up on the projects won in late 2025. These contracts are with the Danish Health Data Authority, also known as Sundhedsdatastyrelsen, and with the Danish Agency for IT and Learning, also known as Styrelsen for IT og Læring. During the latter part of the quarter, the tender activity has notably increased after the government was formed. After the launch of Lumina in late Q1, we have moved our AI framework into commercial application. We have deployed Lumina to selected customers in the public sector with promising initial results. Lumina is not only generating efficiency gains for NNIT in terms of project delivery, but making an impact for our customers that adopt Lumina as a service. Based on the initial use cases, we see further opportunities to apply Lumina to bids around legacy system transformation where new customer solutions are in demand. All in all, we are pleased with the progress so far and expect our AI frameworks to be a central part of our services going forward. The regional EBIT margin increased from 6.4% in Q2 last year to 10.4% in Q2 this year. The margin uplift is driven by leveraging revenue growth and from the actions taken during Q1, where we initiated further cost reductions and capacity adjustments. SCALES has continued its growth momentum into Q2, delivering constant currency growth of 10.9%. The growth has mainly been driven by existing customer engagements and partly from new customer projects. Q2 was also the first full quarter where the integration of the Microsoft service offering from the former Region Denmark was in operation. We do see solid synergies coming out of the integration and a stronger and more coherent offering towards our customers. The regional EBIT margin slightly declined compared with the same quarter last year, which was driven by increased use of subcontractors due to internal capacity constraints and newer projects carrying a lower margin than previously completed projects. Please turn to the next slide. Now I will hand over to Carsten for the next section. Carsten, please. Thank you, Claus, and good morning. Please turn to slide nine for the key financial highlights. Starting with the top line, the quarter revenue, group revenue was DKK 442 million, a decline in the quarter currency of 4.5% or 4.5% in constant currency. As Claus mentioned, this was in line with our initial expectations and reflects the lower order entry carried over from Q1 and continued Tier 1 customer caution in life sciences. The lower revenue development was partly offset by strong growth across public segments and SCALES. Comparing quarter-over-quarter, we saw order entry pick up across all regions towards the end of the quarter, which gives us improved visibility going into the second half. On profitability, group EBIT excluding special items was DKK 21.3 million, corresponding to a margin of 4.8%. This was broadly stable compared with 5% the same quarter last year. The earnings impact of the approximately DKK 21 million from the revenue shortfall was largely offset through efficiency gains, cost reduction initiatives, and capacity adjustments. Special items in the quarter were DKK 18.5 million, down from DKK 20.3 million in Q2 last year, which relates primarily to restructuring costs as we continue to rightsize the organization. The average headcount for the period was 1,533 full-time employees, down from 1,710 in the same period last year, reflecting the restructuring and capacity adjustments we have implemented over the past year. Free cash flow in Q2 was DKK 8 million, compared with negative DKK 61 million in Q2 last year, a year-on-year improvement of DKK 69 million. The improvement was driven by stronger operating cash flow, specifically through improved trade receivables collections, better customer payment timing, and a mid-tax receipt. This was partly offset by lower trade payables and increased prepayments related to larger new transition projects. Turn to the next slide, please. Finally, turning to our full-year financial outlook, we maintain our financial outlook for 2026 as communicated on 7th of May. Constant currency revenue growth is expected to be single-digit negative for the full year. The improved order entry we saw towards the end of Q2 supports our confidence in a better revenue trajectory in the second half, including the uplift from growth initiatives and further initiatives to come as part of the transformation. Group EBIT margin, excluding special items, is expected to be in the range of 4%-7%. The sequential improvement from Q1 to Q2 confirms that our cost actions are materializing as planned, and we expect to sustain this trajectory through the second half. Special items are expected to be below last year's level of DKK 83 million. Year-to-date we stand at DKK 27 million, which is well below the DKK 46 million at the same point last year. Special items for the remainder of the year will mostly be related to restructuring costs. Just to summarize, Q2 came in on plan. The cash flow trajectory has improved materially, and we are maintaining our full-year guidance. Combined with the transformation program Claus outlined, we believe we are taking the right steps to position NNIT for return to sustainable profitable growth. Please turn to the next slide. If you do wish to ask a question, you will need to press five, star on your telephone keypad. To withdraw a question Now. Press five, star again. Now I will hand it back to Claus for closing remarks. Claus? Thanks, Carsten. Let me wrap up with a few concluding remarks before we take your questions. First, on performance. Q2 came in on track. Revenue declined as anticipated, given the customer caution we have been experiencing. But the sequential trend improved from Q1 to Q2, and importantly, order entry picked up across all regions towards the end of the quarter. Furthermore, we saw improved operational performance with utilization increasing. The profitability was broadly stable compared with last year, reflecting the actions taken to reduce costs and adjusting capacity. We deployed our AI service offerings to selected customers with promising initial results, both internally and with our customers. The offerings are making us more competitive, enabling us to bid on projects we previously would consider out of scope. The comprehensive review we completed this quarter confirmed both where we are strong and where we must improve. On that basis, we have launched a transformation program focused on our operating, delivery, and commercial model. This program lays the foundation for NNIT's future strategic direction. An AI-enabled niche specialist serving life sciences internationally and regulated industries in Denmark. We will share the full transformation roadmap and updated strategies in due course. We are maintaining our full year outlook as we have confidence in the trajectory we are seeing. This concludes the Q2 presentation for today. With that, Carsten and I are happy to answer your questions. Operator, please turn to the next slide and open for questions. Thank you. We will now begin the Q&A session. If you do wish to ask a question, you only press 5, star on your telephone keypad. To withdraw your question, press 5, star again. Our first question comes from the line of Poul Jessen from Danske Bank. Please go ahead. Your line will be unmuted. Yes. Thank you for taking my questions. I have a few ones to start with. You put emphasis on that you have improved your utilization. Could you tell a little more where you see that? Because if I look at your gross margin, let us say the last six quarters, then this quarter is still in the low end, and you grow or cut 50 by 10% year-over-year, but earn the revenue down by four. So where is this improved efficiency or utilization seen in the numbers? Well- It is a question. Yes, it is a question. Well, we do see increased utilization across several areas as mentioned. What we are also focusing on as part of our strategy review is how we can improve our delivery excellence. That means how we can, across the life science business, set up our delivery capacities to deliver, you can say, high profitability by ensuring a less fragmented structure on how we deliver to customers. This is something that we are now focusing on as part of the transformation. This will, to a higher degree, lead into improved gross margin. So it is more going forward than already seen. It will be a key driver for improved profitability going forward. If we look at some of the projects that we have been finalizing and working on throughout the first half of the year, they are having a lower margin. As also commented specifically on SCALES, we see the need for using more subcontractors to actually deliver on projects within SCALES, as the growth were not able to be managed directly by internal resources. These are some of the elements that is impacting the margin negatively. If you look specifically at Region Asia, we have another revenue mix compared to last year where we have a larger proportion of hardware sales. So it is a range of different elements that are impacting the margin negative, and pulling the effect of the high utilization in the opposite direction. Coming to the common SCALES for the external contracts, the growth in SCALES is more or less the same level for a long time, about 10%- 11% or so. What is then the reason for suddenly that they need to take external contractors in? It should be at a level where you could do ordinary planning for the increased activity. Well, it has been needed because you can say we have some projects being in the same phase of the realization, meaning that the specific profiles required to deliver on the projects have been a constraint. Of course, it is something that they are usually capable of managing, you can say, to ensure that we can deliver with internal resources. But this first half of the year, they have not been fully able to sort of balance this delivery to an extent that we could deliver fully on internal resources. That is why they have been required to pull in external resources. But it is of course something that we are working to backfill internally and ensure that we get the recovery on the margins and return to previous profitability levels. Okay, thanks. Two questions on strategy. You said that you would focus on life science and regulated industries in Denmark. You do not talk much about SCALES in this equation. If we look at the focus from a transformation point of view, it is a tight focus on actually improving the life science vision, originally with the update on our product portfolio. So that has, you can say, a key focus. The second key focus is getting the delivery excellence in place as we commented on to really see the margin improvements by having a more optimal way of delivering our services. Then the third part is the entire operating model on how we actually also from an enabling function structure our support functions to deliver to the business in a more, or support the business in a more optimal way. This is what we consider having the largest potential to, you can say, get back to positive and sustainable growth. With the current SCALES performance of growing double digits and having, you can say, best in market margins, we believe that we are on a good trajectory in SCALES, requiring less sort of strategic and transformation effort compared to the rest of the business. That is why in the communication that life science and the Danish business is taking the main proportion of the lines in the communication. Is it more because that SCALES performs in line with history and what you expect that communication is on the other parts which has shrunk too? Yes. Okay. Then you sold off your Singapore assets, but you are still in China, and China is still struggling a lot. Could we see that a consequence of the strategic review would be that you would focus on Europe and the U.S., as there are plenty of business to go for? Yes. If you look at our Chinese remaining business, it is a smaller proportion now of the total NNIT. From a transformation point of view, it is clear that the effort and the biggest impact will come from looking at Region Europe and Region US. So that is why it has the transformation program. Okay. Thank you. I will pass back in the queue. Thank you, Poul. Next up is Yiwei Zhou from SEB. Your line is open. Hi. Good morning. Thank you for taking my questions. I will do one at a time. You highlight the AI platform. Could you please elaborate a bit here on what they are and the pricing model for the platforms? What type of projects you are doing for your customer? If you look at the two platforms that we specifically mentioned, Lumina and Alera. Alera is targeting the life sciences segment, and it is a platform that enables our customers to access and process large volumes of data in a fully validated environment. Which means that together with our customers, we are able to deploy an array of use cases that will help them streamline their business, or their life science operations, in a fully validated manner. If we look at Lumina is a platform that zooms in on accelerating software development and also supporting all disciplines in and around software development. With Lumina, we use the platform or allow customers to use it for things such as legacy migration could be an example, where you want to create a quick overview of your legacy applications. You want to generate documentations that may not have been created to the full extent over the past 25, sometimes 30 years, in order to come up with a clear roadmap for how you can migrate out of an old custom legacy solution and into a more modern technology. From a pricing perspective, there are different approaches depending on how we sell it. One is, of course, that we factor it into a project model where we go with a value-based price for the platform alongside the hours and material that are being brought in. We are also looking into subscription-based models when it is offered more as a service. For Alera, we are essentially approaching it in the same way, where a value-based price together with a CNN-based project or as a subscription-based model. There is no doubt that the whole pricing of AI solutions and services is something that we are spending a lot of time both looking into and also evolving to keep up with the market. But it is an area that continues to change, and I don't think we've seen the final models yet. This is something we do expect will continue to change as we move forward. Okay. You mentioned the AI projects take a larger part of your business in last quarter. I was wondering if you already have the AI business, can you elaborate it on, so you have let's say the value-based fixed price contract that compares the T&M contract. What is the split here in the international life science? I don't think we have a number we can share on that, Yiwei. If you're talking about the number of projects specifically or the revenue. Yeah, the revenue split more, if you can indicate a bit. I think it's a difficult number to be very clear on because essentially the way that we are working with AI, it falls into three buckets. One is that we have either a fully AI-based services as one category or where AI is an integrated part of our, what I would call more traditional life science services. So you could argue with Lumina and with Alera, we have a pure AI-based services. But when we go out and deliver other types of services, for example, in the clinical area or in the GXP compliance area or validation area and so on, there we also leverage AI as an integrated part of the overall delivery, but more as a supporting tool in that delivery. One way that we work with it is really in context of our offerings themselves. The other area where we are accelerating our adoption of AI is in terms of how we deliver. For example, today when we bid for projects in Denmark, we use AI to decipher the tender material to help shape the tender response that we're doing. When we win an engagement, we also use AI to accelerate software development, for example. So really to streamline our delivery model and our delivery processes. The third way we use AI is really internally to streamline our own internal business processes. Okay, thanks. If you can also talk about how you deal with the increased token cost. Can you pass on to your customer or you keep it in with your own budget? Well, if you look at some of the customer projects that we are delivering, the token spend is absorbed by the customer, and it is not something that we are funding. So from that perspective, it is a cost that the customer will have to cover and steer as part of their use of the solution. If you look at our internal use of AI on the development side, but also from an enabling function point of view, it is something that we are simply tracking and also, of course, having a lot of focus and awareness on what kind of models are being used as the use of tokens are very different depending on what specific models you are using. So again, having trained staff internally to utilize AI in the most efficient way is a key enabler to keep down the token spend. Mm. Okay, fair enough. Last question. Some of your international peers talked about the customers, not especially in the life science, but general market enterprises allocate their IT budget from conventional IT consulting to AI projects, agentic AI build-up. So what are you seeing with your life science customers? Is this also the pattern you are experiencing? We are seeing an increased interest in leveraging AI across their business. We do also see an increased interest in leveraging AI agents where they would potentially have had something custom-built in the past. Which means that we are also seeing signs of demand changing from T&M into AI agents. One of the key ways that we are actually addressing that is as part of our transformation, one of the things that we are already doing is doing a comprehensive review of our entire offerings portfolio in the life science business in order to make sure that we have a service portfolio that is set up to meet the demands of our customers, both today and tomorrow. And as part of that, AI will play an increasingly larger role in our services portfolio, both with independent AI products, but also where AI is integrated in basically all of our more traditional life science services. In order to bring that to life, we are also making sure that we organize accordingly and build up capacity within AI, both locally but also in our delivery center in the Philippines. Clear. Thank you very much. I will jump back to the queue. Thank you, Yiwei. Next up is Mads Quistgaard from DNB Carnegie. Your line is open. I have two here. Yeah, thank you for taking my questions. I have two. First, coming back to your comments around the pipeline in Denmark, especially the Public DK pipeline. Are we back at normal levels or are you seeing sort of a catch effect following the general election, which took place a few months ago? There is no doubt that just before the election, everything came to a bit of a halt, and then with a slightly extensive period where they were trying to form a government, activity remained relatively low. However, after a government had come into place, we already saw increased activity in June with several tenders being released at that point in time. What we are seeing here on the other side of the holiday is that the high activity level on the tender side is increasing. I would argue that the current level of tender activity that we are seeing is probably slightly higher than what I would call normal. We expect this relatively high level of activity to continue at least throughout Q3, but maybe also into the beginning of Q4, before we expect it to stabilize at what I would call a normal level. Perfect. Makes sense. Thank you for that, Claus. Then a question on the industry. Not that we are seeing a consolidation right now, but at least some of the larger software companies, some of you also partnering with, are doing acquisitions. Just trying to understand when they do acquisitions, is that a threat or a business opportunity for you guys? Generally, I think as we see consolidation in the market, the way that we look at it is that it underpins our early assumption taken as we moved into the strategy phase, that our opportunity really lies in becoming very sharp and focused around what we do. At the heart of our strategy, we are zooming in on fewer areas where we will be a niche provider. From a tech point of view, the ambition is still to be agnostic. As we go to market, we believe our opportunity lies in really being a niche player within certain fields of play where we want to simply be better and deeper than our immediate competitors. The technology with which we then build our solutions, there we will continue to be technology agnostic. I think also in a market where things are moving faster than ever, that actually provides us with a bit of extra flexibility and opportunity to be able to have this agnostic approach also when thinking of all of the sovereignty discussions that surface in these days. Perfect. Thank you so much. Thank you, Mads. As a reminder, press five stars to ask a question. There will be a brief pause while new questions are being registered. We have a follow-up from the line of Yiwei. Your line is open. Hi, it's Yiwei from SEB again. Just a quick question here on Novo Nordisk business. Can you give an update on this? What is your expectation for the next six to 12 months? Well, we had some expectations coming into 2026 that was, you can say, on an overall level across regions, looking at a contraction on our Novo revenue because of the strategic initiatives and the focus on cost and fewer projects being initiated at Novo. We can say that we are so far more or less in line with this overall assumption that we have for the development in the Novo business going forward. I think what will be interesting to see is how Novo's new initiatives will lead into them potentially expanding capacities on their production facilities, for example, on tablets, to see what kind of additional business that will bring. You can say if you look at what we expected in the beginning of the year and where we are now, we are more or less in line with how we saw our engagement with Novo develop. What kind of a contraction can you be more specific? Well, as you know, we have a revenue proportion of around 13% in 2025 contributed to Novo Nordisk. When we looked into 2026, we expected based on the announcements from Novo Nordisk, that that proportion would decrease slightly, and this is also what we have seen. Okay. Thank you. Was clear. Thank you. As no one else has signed up for questions, I will now hand it back to the speakers. Thank you for your questions and for listening in. Please do not hesitate to reach out to either me or Carsten if you have further questions. With that, I just want to say have a great day and a wonderful weekend.