Slide 1: Digia Plc Business review January-March 2024
Timo Levoranta, President & CEO, 8.5.2024 Digia Plc Business review January-March 2024 PUBLIC 1 8.5.2024
Slide 2: Content
PUBLIC 8.5.2024 2 Content 01 Strategy for sustainable growth 2023-2025 02 Q1/2024 03 Guidance
Slide 3: Digia's goal is long-term, profitable growth
PUBLIC 8.5.2024 3 Digia’s goal is long-term, profitable growth
Slide 4: Strategy 2023-2025: Unlock your intelligence
PUBLIC 8.5.2024 4 Strategy 2023-2025 Versatile offering expanded with Unlock your automation and artificial intelligence. intelligence.
Slide 5: Goals for the strategy period 2023-2025
PUBLIC 8.5.2024 5 Goals for the strategy period 2023-2025 Unlock your intelligence
Slide 6: Digia's model for profitable growth
PUBLIC 8.5.2024 6 Digia’s model for profitable growth Customer relations Versatile offering Personnel Resilient business model Based on continuous renewal and sustainability
Slide 7: We implement our strategy through four service areas
PUBLIC We implement our strategy through four service areas Specialiset business areas Large scale solutions Design, applications Digital Data and AI Solutions Digia Hub netwok Business Intelligent ERP platforms Platforms One Financial Financial sector solutions Platforms Managed Core IT Solutions •
Slide 8: Strategy growth paths and growth enablers
DIGIA CONFIDENTIAL 8.5.2024 8 Strategy growth paths Growth enablers Specialised service A modern and attractive areas for specific needs work community Learning-focused and relaxed culture for professionals Large scale solutions utilising We want our employees all of Digia’s extensive offering to en
Slide 9: Business model
PUBLIC 8.5.2024 9 Share of net sales Q1/2024 Project business 49.4% Business model Service business 50.6%
Slide 10: Profitable growth since 2016
PUBLIC 8.5.2024 10 Digia’s growth journey 2016 - 2023 MEUR 200 150 Profitable growth since 2016 100 50 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2012-2015: Digia & Qt
Slide 11: Q1/2024
PUBLIC 8.5.2024 11 Q1/2024
Slide 12: In market turmoil Digia goes against the tide
PUBLIC 8.5.2024 12 In market turmoil Digia goes against the tide
Slide 13: Market
PUBLIC digia.com 8.5.2024 13 Market Market Q1 • Slowness in decision-making and start of the projects • Partial price competition • Customers appreciate operators with a wide offering Market trends • Level of automation and intelligence is growing. • User-centered and secure solutions are gaining fu
Slide 14: Q1 financial main points
PUBLIC 8.5.2024 14 Best in history Net sales 53.6 MEUR Q1 financial main points Best in history Operating profit (EBITA) 5.5 MEUR* Market was soft, Digia’s performance was strong Operating profit (EBITA) improved EBITA margin 10.3% *Digia’s EBITA does not include adjustments
Slide 15: Q1 growth and profitability
PUBLIC Q1 growth and profitability Growth Net sales up Operating profit • Three out of four service areas grew their net sales 7.2% (EBITA) up • Areas of strong growth • Digia’s automation and AI platform, and CRM 53.6 MEUR 13.2% • CRM solutions combine service design, marketing automation and integ
Slide 16: Digia's automation and AI platform
PUBLIC 8.5.2024 16 Digia’s automation and AI platform • Demand is strong and bid volume is robust: growth of the automation and AI platform during the review Net sales Q1 period was over 50% over 50 % • Over 5 million EUR in annual revenue • A concrete and rapid way to utilize automation and artific
Slide 17: Customers
PUBLIC digia.com 8.5.2024 17 Customers New agreements Expanding in the Microsoft D365 Commerce area R-Kioski Microsoft D365 Commerce Microsoft D365 Finance and Operations Puolustusvoimat Marimekko Global Microsoft D365 Commerce Continuation delivery agreements Microsoft Dynamics 365 Finance 15.2 MEU
Slide 18: Personnel, sustainability – continuous renewal
PUBLIC 8.5.2024 18 • Personnel grew by 20 experts. • Business Platforms: new SVP 2.4. • Focus “Intelligent ERP strategy” • We completed UN Global Compact Network Finland’s Personnel, Target Gender Equality training programme. sustainability – • We signed the Women’s Empowerment Principles set forth
Slide 19: Tapani Ojaluoma
PUBLIC 8.5.2024 19 Tapani Ojaluoma • Senior Vice President, Business Platforms and member of the Management Team since 2.4.2024 • Over 25 years of experience of ICT and international projects in different industries ERP systems should not be regarded merely as IT projects but as change projects. The
Slide 20: Profitable growth since 2016
PUBLIC 8.5.2024 20 Profitable growth since 2016 MEUR Digia’s growth journey 2016 - 2024 200 Profitable growth 150 • Record net sales • Records EBITA • EBITA margin improved 100 Future – continuous renewal +7.2% • AI and automation 50 • Organisation and operating methods 0 2012-2015: Digia & Qt
Slide 21: Digia's profit guidance for 2024
PUBLIC 8.5.2024 21 Digia’s profit guidance for 2024 Digia’s net sales (EUR 192.1 million in 2023) and operating profit (EBITA) (EUR 16.7 million in 2023) will increase compared to 2023.
Slide 22: It's unlock o'clock. Unlock your intelligence.
PUBLIC 8.5.2024 22 It’s unlock o’clock. Unlock your intelligence. Thank you
Slide 23: Key figures Q1/2024
PUBLIC 8.5.2024 23 Key figures Q1/2024 EUR 1,000 1-3/2024 1-3/2023 Muutos, % 2023 Net sales 53,648 50,034 7.2% 192,087 Operating profit (EBITA) 5,510 4,870 13.2% 16,727 EBITA % 10.3% 9.7% 8.7% Operating profit (EBIT) 4,751 4,137 14.8% 13,835 EBIT % 8.9% 8.3% 7.2% Result for the period 3,415 3,021 13