Slide 1: Digia’s growth continues and profitability improves
Digia’s growth continues and profitability improves Digia Plc | Half year financial report 2016 Timo Levoranta 12 August 2016
Slide 2: Digia and Qt demerger came into force on 1 May 2016
Digia and Qt demerger came into force on 1 May 2016 • The AGM approved the demerger plan on 16 March and decided on the partial demerger of Desired benefits of the demerger: Digia Plc • To enable the development of Qt and • Demerger came into force on 1 May 2016 Domestic business as two separate lis
Slide 3: Digia’s offering
Digia’s offering We help to build a smoother digital world. Digital Steering Utilising services operations information E-services Integration E-commerce Enterprise resource planning Analytics Electronic working environments Workforce management Internet of Things Developing customer experience Custo
Slide 4: We support companies in the digital revolution
We support companies in the digital revolution ERP, CRM E-commerce E-services Industrial solutions Service channels Online communications Workforce management and services services Service and Core customer Business systems experience online integration analytics
Slide 5: January-June 2016
January-June 2016
Slide 6: Highlights of the first half of 2016
Highlights of the first half of 2016 +9.9% 6.2% +5.0% increase in operating profit Increase of net sales as % of net sales employees* New customers e.g. Acquisition of Kuopion Energia Igence Oy Ab Outlook Kymppivoima Customers e.g. unchanged Yliopiston Apteekki Feon VV-Auto * Compared to year-end 20
Slide 7: Net Sales growth of nearly 10%
Net Sales growth of nearly 10% Growth in net sales outperformed general IT market growth in many areas of operations Quarterly Net Sales • Demand remained good for integration and analytics services € million • In ERP and MES, company's ERP business based on own 25 23.2 technologies developed favour
Slide 8: Profitability improved in the first half
Profitability improved in the first half • The profitability of integration and analytics services Quarterly operating profit and margin was good € million % • Operating result of the ERP business based on own 3 14% technologies developed favourably 12.6% • In the ERP business based on Microsoft tec
Slide 9: New financial loan arrangement
New financial loan arrangement Total EUR 17 million • On 14 April 2016, Digia agreed on a new three-year Interest-bearing liabilities on 30 June 2016, financial loan arrangement with Danske Bank Plc EUR 12.2 million • The new arrangement replaced Digia's earlier loan 1,2 portfolio, which totalled EU
Slide 10: Digia’s growth strategy
Digia’s growth strategy
Slide 11: Digia is at the core of the changing market
Digia is at the core of the changing market Structure of IT services is changing Impacts on Digia Digital services “agile” +10-20% Customers are in the middle of a revolution in IT services Greater utilisation of digitalisation Integration “interoperability” Service business is growing everywhere Tr
Slide 12: Growth strategy 2016-2019
Growth strategy 2016-2019 The aim is to strengthen company’s position, particularly in the growing markets for digital services, process digitalisation and service business. Key themes of Digia’s strategy Digia wants to grow at a much faster pace than the IT market and seeks • Digitalisation of serv
Slide 13: Focus on strengthening the foundation
Focus on strengthening the foundation Development of company structure • Digital services - supporting growth • Horizontal services - creating synergies Acquisition Igence acquisition in a nutshell; • Through Igence Oy Ab acquisition, Digia • Igence’s net sales 2015 were EUR 2.26 million • Igence ha
Slide 14: Outlook unchanged
Outlook unchanged • The company reiterates its earlier guidance estimating that; • demand will remain reasonable, • net sales will continue to grow in 2016, • the operating margin will remain on a par with the previous year.
Slide 15: Thank you!
Thank you! www.digia.com Next event in the IR calendar: Q3/2016 report on 28 October 2016 www.digia.com
Slide 16: Key Figures
Key Figures 4-6/2016 4-6/2015 Change% 1-6/2016 1-6/2015 Change% 2015 Net sales 22,397 20,489 9.3% 43,829 39,888 9.9% 80,946 Operating profit 1,777 1,653 7.5% 2,714 1,914 41.8% 5,854 - % of net sales 7.9% 8.1% 6.2% 4.8% 7.1% Net profit 1,542.8 1,554 -0.7% 2,242 1,604 39.7% 4,246 - % of net sales 6.9%