Digia Oyj · OMXHEX:DIGIA
Digia Oyj — Q3 2024 Earnings Presentation
31 slides from Digia Oyj's earnings presentation, Oct 25, 2024
Slide 1: Digia Plc Business review January-September 2024
PUBLIC 1.11.2024 1 Unlock Your Digia Plc Intelligence Business review January-September 2024 Public Timo Levoranta, President & CEO, 25.10.2024
Slide 2: A record-breaking Q3
PUBLIC 1.11.2024 2 A record-breaking Q3 Net sales growth 10,7 % Organic growth 5,2 % Operating profit (EBITA) 64,3 % EBITA margin 12,3 % Digia to further invest in automation and artificial intelligence
Slide 3: Content
PUBLIC 1.11.2024 3 Content 01 Digia in short 02 Digia’s Q3 03 Strategy 2023-2025 04 Guidance
Slide 4: Profitably growing software and service company
PUBLIC 1.11.2024 4 Profitably growing software and service company Net sales, MEUR 200 2,2x 150 192,1 100 Trusted partner in 86,5 50 intelligent business 0 2016 2023 Continuously renewing and Roots in the 1990, Main market Finland responsible community of reborn in 2016 4 countries professionals Sha
Slide 5: Digia's growth journey 2016–2023
PUBLIC 1.11.2024 5 Digia’s growth journey 2016–2023 The guiding principle of MEUR 200 Digia’s business: 150 Long-term and profitable growth 100 Continuous renewal 50 of business 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2010-2015: Digia & Qt
Slide 6: Digia's business model
PUBLIC 1.11.2024 6 Digia’s business model Partnerships with Versatile offering and customers strong expertise Trusted partner in intelligent business Innovation with Continuous services & customers 24/7 Service Center
Slide 7: Partnerships with customers
PUBLIC 1.11.2024 7 Partnerships with The Finnish Defence Forces customers
Slide 8: Versatile offering and strong expertise
PUBLIC 11/1/2024 1.11.2024 8 Versatile offering and strong expertise LARGE SCALE SOLUTIONS One FROM APPLICATIONS TO 24/7 MAINTENANCE Digital Business Managed Financial Solutions Platforms Solutions Platforms Specialized Applications, Enterprise Critical Financial service areas: CRM resource solution
Slide 9: Service business brings stability and opportunities
PUBLIC 11/1/2024 1.11.2024 9 Share of net sales Q3/2024 Continuous services & Project business 24/7 Service Center 48,8 % Service business brings stability and opportunities 51,2 % Service business
Slide 10: Digia Service Center 24/7
PUBLIC 1.11.2024 10 Digia Service Center 24/7 Digia Service Center Organisations’ business operations are increasingly around the clock, and the • Available to support our role of systems in business is central. customers 24/7 • A service package developed for over 15 years • Domestic Anticipating d
Slide 11: Innovation with customers
PUBLIC 1.11.2024 11 Innovation with customers Digia Envision – carbon footprint calculation Digia Envision –enterprise resource planning system includes a built-in functionality the carbon footprint. AI: Digia Dolphin launched in Q3 • A fast track to utilizing artificial intelligence • From "POCs" t
Slide 12: Digia's business model and strengths
PUBLIC 1.11.2024 12 Digia’s business model Partnerships with Versatile offering and Digia’s strengths customers strong expertise • Strong customer relations • Versatile offering enables the expansion of customer relationships • Continuous services bring customers security, and 24/7 Service Center re
Slide 13: Trusted partner in intelligent business
PUBLIC 1.11.2024 13 Trusted partner in intelligent business
Slide 14: Q3/2024
PUBLIC 1.11.2024 14 Q3/2024
Slide 15: Market in Q3
PUBLIC 1.11.2024 15 Nasdaq OMX Helsinki IT service companies*, reported turnover growth Q3 Market in Q3 12,0 % 7,0 % • Demand is cautious and there are delays in decision-making. 2,0 % • Customers appreciate operators with a wide -3,0 % offering: supplier consolidation. • Interest in automation and
Slide 16: Q3 successes
PUBLIC 1.11.2024 16 Q3 successes
Slide 17: Q3: Partnerships with quality and expertise
PUBLIC digia.com 1.11.2024 17 Q3: Partnerships with quality and expertise Valued approx. EUR 2 million, Valued for approx. EUR 5–10 New agreement with the an agreement to develop a million, partnership with Finnish Hockey Association customer relationship Finnish Immigration Service. to replace its
Slide 18: Service concept for a takeover of artificial intelligence
PUBLIC 1.11.2024 18 Service concept for a takeover of artificial intelligence. • From strategy to production • From trial to practice
Slide 19: Implementation examples
PUBLIC 1.11.2024 19 Implementation examples
Slide 20: A record-breaking Q3
PUBLIC 1.11.2024 20 A record-breaking Q3
Slide 21: Q3 growth and profitability
PUBLIC 1.11.2024 21 Q3 growth and profitability Operating profit Growth in net sales Net sales up (EBITA) up • Three out of four service areas grew • Strongest organic growth 10.7% 64.3% • Modern software development, 20% • Other areas of strong growth, over 10% 45.4 MEUR 5.6 MEUR • Digia Hub subcon
Slide 22: A strong balance sheet gives leeway
PUBLIC 1.11.2024 22 A strong balance sheet gives leeway 1-9/2024 1-9/2024 1-9/2023 Change Return on equity, % 15.9% 11.9% Interest-bearing net liabilities 18,094 36,176 - 50,0 % Net gearing, % 22.6% 51.1% Equity ratio, % 50.7% 45.2%
Slide 23: Digia's Q3 in summary
PUBLIC 1.11.2024 23 Digia’s Q3 in summary AI concept Digia Dolphin New partnerships ”From experiments to practice " Strong result Strong balance sheet Net sales up EBITA margin Net gearing Equity ratio 10.7% 12.3% 45.4 MEUR EBITA 5.6 MEUR 22.6% 50.7%
Slide 24: Digia's strategy 2023-2025
PUBLIC 1.11.2024 24 Digia’s strategy 2023-2025
Slide 25: Strategy 2023-2025: Unlock your intelligence
PUBLIC 1.11.2024 25 Strategy 2023-2025 Genuine partnership with customers. Unlock your Versatile offering expanded with intelligence. automation and artificial intelligence.
Slide 26: Goals for the strategy period 2023-2025
PUBLIC 1.11.2024 26 Goals for the strategy period 2023-2025 Unlock your intelligence
Slide 27: Digians are the basis for our success
PUBLIC 1.11.2024 27 COURAGE It will not sting that bad Digians are LEARNING Every Digia the basis for employee is a Senior Trainee our success PROFESSIONAL PRIDE I stand by my work Our cultural principles SHARING Together we know more
Slide 28: Digia's growth journey 2016–2024
PUBLIC 1.11.2024 28 MEUR Digia’s growth journey 2016–2024 200 The guiding principle of Digia’s 150 +8,8 % business is sustainable profitable growth. 100 50 Year 2024 continues this journey. 0 2012-2015: Digia & Qt
Slide 29: Digia's profit guidance for 2024
PUBLIC 1.11.2024 29 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 30: It's unlock o'clock. Thank You
PUBLIC 1.11.2024 30 It’s unlock o’clock. Unlock your intelligence. Thank You
Slide 31: Key figures Q3/2024 & 1-9/2024
PUBLIC 1.11.2024 31 Key figures Q3/2024 & 1-9/2024 EUR 1,000 7-9/2024 7-9/2023 Change, % 1-9/2024 1-9/2023 Change, % 2023 Net sales 45,438 41,046 10.7% 151,148 138,927 8.8% 192,087 Operating profit (EBITA) 5,569 3,390 64.3% 15,311 11,650 31.4% 16,727 EBITA % 12.3% 8.3% 10.1% 8.4% 8.7% Operating prof