Bittium Corporation · OMXHEX:BITTI
Bittium — Investor Day (October 2023)
62 slides from Bittium's investor day presentation, Oct 30, 2023
Slide 1: Bittium Capital Markets Day 2023
Bittium Capital Markets Day 2023 Johan Westermarck October 30, 2023
Slide 2: Forward-looking Statements
Bittium Corporation Capital Markets Day 2023 Forward-looking Statements Some statements made in this material relating to future circumstances or status, including, without limitation, the future performance of the company, expectations regarding market growth, trend projections as well as any state
Slide 3: Agenda
Bittium Corporation Capital Markets Day 2023 Agenda Introductions Bittium Group – Strategy Update Medical – Remote Monitoring and Diagnostics Defense & Security – Resilient Tactical and Secure Communications Engineering Services – for Wireless Embedded Solutions Summary & Closing 3 © Bittium 2023 |
Slide 4: Johan Westermarck: Previous Work History and Positions of Trust
Previous Work History Citec Group Oy Ab, CEO, 2017-2022 Maintpartner Group Oy, CEO, 2012-2017 Maintpartner Oy, CEO, 2010-2012 Maintpartner Ab, CEO, 2009-2010 Eltel Group Oy, VP, Business Development, 2007-2008 Eltel Networks GmbH, CEO, 2006-2007 Eltel Group Oy, VP, Business Development, 2004-2006 El
Slide 5: My Team
My Team Tommi Kangas Antti Näykki Jari Inget Senior Vice President Senior Vice President Vice President Defense & Security Medical Engineering Services 5 © Bittium 2023 | Public
Slide 6: My Team
My Team Antti Keränen Laura Kauppinen Kari Jokela Karoliina Malmi Chief Financial Officer Chief Development Officer Chief Legal Officer Vice President Communications & Sustainability 6 © Bittium 2023 | Public
Slide 7: Bittium Journey: From R&D Phase towards Profitable Growth
Strategy Update Bittium Journey: From R&D Phase towards Profitable Growth
Slide 8: Solid Foundation for Profitable Growth
CMD 2023 | Bittium Journey Solid Foundation for Profitable Growth Profitable R&D Phase Current State Scalable Growth Phase 2015-2023 2023 profitable 2024-2025 growth 2015 202X 8 © Bittium 2023 | Public
Slide 9: Solid Foundation for Profitable Growth
CMD 2023 | Bittium Journey Solid Foundation for Profitable Growth Profitable R&D Phase Current State Growth Phase 2015-2023 2023 2024-2025 Business and Strategy • R&D in the center of the business • Strong own product Scalable development in profitable tactical product portfolio and secure growth co
Slide 10: Company Development Highlights
CMD 2023 | Bittium Journey Company Development Highlights Frame agreement Purchase agreement with FDF on with FDF on TAC WIN products Tough SDR radios 30m€ for ~10.5m€ Frame including opportunity Loss of a significant agreement Launch of for ~207 m€ Automotive software service business with FDF Toug
Slide 11: Financial Development in 2016 – 2022
CMD 2023 | Bittium Journey Financial Development in 2016 – 2022 Net Sales Development Operating Result Development 100 10 90 8 80 6 70 4 60 2 50 40 0 2016 2017 2018 2019 2020 2021 2022 30 -2 20 -4 10 -6 0 2016 2017 2018 2019 2020 2021 2022 -8 Net Sales Operating Result 11 © Bittium 2023 | Public
Slide 12: Solid Foundation for Profitable Growth
CMD 2023 | Bittium Journey Solid Foundation for Profitable Growth Profitable R&D Phase Current State Growth Phase 2015-2023 2023 2024-2025 Business and Strengths: Strategy • Expertise & know- • R&D in the center how of the business • Products • Strong own product • Customers Scalable development in
Slide 13: Challenges in Growth and Profitability
CMD 2023 | Bittium Journey Challenges in Growth and Profitability MEUR 30,0 MEUR 60,0 54,0 25,0 48,0 42,0 20,0 36,0 15,0 30,0 24,0 10,0 18,0 12,0 5,0 6,0 0,0 0,0 -6,0 1-9 2022 1-9 2023 -5,0 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Services 18,4 20,5 Services 4,5 6,7 6,9 7,3 6,3 Products 36,5 29 Produ
Slide 14: Excellent Know-how, Products, and Services to Support Solid Foundation for Profitable Growth
CMD 2023 | Bittium Journey Defense & Excellent Security Know-how, Products, and Services to Support Solid Engineering Foundation Services for Profitable Growth Medical 14 © Bittium 2023 | Public
Slide 15: Megatrends to Support Solid Foundation for Profitable Growth
CMD 2023 | Bittium Journey Geopolitical Uncertainty Information Security Megatrends to Support Solid Foundation for Accelerating Technology Development and IoT Digitalization of Healthcare and Aging Population Profitable Growth 15 © Bittium 2023 | Public
Slide 16: Measures Taken So Far
CMD 2023 | Bittium Journey Measures Taken So Far Strategy updated to support solid growth • Focus on Defense & Security, Medical, and Engineering Services • Focus on selected products and services • Focus on key accounts and new customers • Lean segment organization Healthier cost structure • Stream
Slide 17: Solid Foundation for Profitable Growth
CMD 2023 | Bittium Journey Solid Foundation for Profitable Growth Profitable R&D Phase Current State Growth Phase 2015-2023 2023 2024-2025 Business and Strengths: Focus areas: Strategy • Expertise & know- • Profitability, growth, • R&D in the center how and cash flow of the business • Products • Man
Slide 18: Our Fundamentals
CMD 2023 | Updated Strategy | Profitable Growth Phase 2024 – 2025 Our Fundamentals Core Competencies Mission Our mission is to utilize our world-class Our core competencies are: expertise and innovation to enable secure designing, producing, embedded technology for the benefit of modifying and maint
Slide 19: Key Focus Areas
CMD 2023 | Updated Strategy | Profitable Growth Phase 2024 – 2025 Key Focus Areas Sales & Operational Planning Products and Services Sales Operations Focus on selected products Focus on Key Accounts and new Focus on efficiency and services customers Lean Segment Organization 19 © Bittium 2023 | Publ
Slide 20: Key Focus Areas
CMD 2023 | Updated Strategy | Profitable Growth Phase 2024 – 2025 Key Focus Areas Sales & Operational Planning Products and Services Sales Operations Focus on selected products Focus on Key Accounts and new Focus on efficiency and services customers Lean Segment Organization 20 © Bittium 2023 | Publ
Slide 21: Focus on Selected Products and Services
CMD 2023 | Updated Strategy | Profitable Growth Phase 2024 – 2025 Focus on Selected Products and Services Defense & Security Medical Engineering Telecom Telecom Industry IoT Services 21 © Bittium 2023 | Public
Slide 22: Key Focus Areas
CMD 2023 | Updated Strategy | Profitable Growth Phase 2024 – 2025 Key Focus Areas Sales & Operational Planning Products and Services Sales Operations Focus on selected products Focus on Key Accounts and new Focus on efficiency and services customers Lean Segment Organization 22 © Bittium 2023 | Publ
Slide 23: Focus on Key Accounts & New Customers
CMD 2023 | Updated Strategy | Profitable Growth Phase 2024 – 2025 Focus on Key Accounts & New Customers Grow with selected Key Accounts Win new customers to support growth Systematic way of working High forecast accuracy 23 © Bittium 2023 | Public
Slide 24: Key Focus Areas
CMD 2023 | Updated Strategy | Profitable Growth Phase 2024 – 2025 Key Focus Areas Sales & Operational Planning Products and Services Sales Operations Focus on selected products Focus on Key Accounts and new Focus on efficiency and services customers Lean Segment Organization 24 © Bittium 2023 | Publ
Slide 25: Focus on Efficiency
CMD 2023 | Updated Strategy | Profitable Growth Phase 2024 – 2025 Focus on Efficiency Efficient production and delivery processes Efficient material handling Ecosystem to ensure flexibility and scalability Quality assurance 25 © Bittium 2023 | Public
Slide 26: Key Focus Areas
CMD 2023 | Updated Strategy | Profitable Growth Phase 2024 – 2025 Key Focus Areas Sales & Operational Planning Products and Services Sales Operations Focus on selected products Focus on Key Accounts and new Focus on efficiency and services customers Lean Segment Organization 26 © Bittium 2023 | Publ
Slide 27: Lean Organization
CMD 2023 | Updated Strategy | Profitable Growth Phase 2024 – 2025 Lean Organization CEO Johan Westermarck Finance • Smaller organization and reduced Antti Keränen headcount in Group organization • Stronger and more independent Engineering Services Legal, Risk Management & Security Defense & Security
Slide 28: Financial Targets
CMD 2023 | Updated Strategy | Profitable Growth Phase 2024 – 2025 Financial Targets Financial Outlook 2023 (updated on September 15, 2023) Bittium expects the net sales in 2023 to be at the same level or lower than in the previous year (EUR 82.5 million in 2022) and the operating result to be lower
Slide 29: Q&A
Q&A
Slide 30: Medical – Remote Monitoring and Diagnostics
Medical – Remote Monitoring and Diagnostics Antti Näykki October 30, 2023
Slide 31: World-Class Knowledge
CMD 2023 | Medical Strategy Update 2024 – 2025 World-Class Knowledge Transforming passion for biosignals into superior technology products and services for healthcare professionals. 31 © Bittium 2023 | Public
Slide 32: Market Trends Supporting Our Growth
CMD 2023 | Medical Strategy Update 2024 – 2025 Digitalization Medical service Market outsourcing Trends Early detection of symptoms AI Supporting FOR HEALTHIER FUTURE Our Growth Demographic Secure IoT change 32 © Bittium 2023 | Public
Slide 33: Enabling Remote Monitoring and Diagnostics
CMD 2023 | Medical Strategy Update 2024 – 2025 Enabling Remote Monitoring and Diagnostics ECG monitoring Home Sleep Apnea Test Key customer segments: Key customer segments: value-added resellers, service value-added resellers, service providers providers EEG monitoring Key customer segment: Value-ad
Slide 34: Measuring and Monitoring Biosignals - ECG
CMD 2023 | Medical Strategy Update 2024 – 2025 Measuring and Monitoring Biosignals - ECG Reliable precision and flexibility for cardiac monitoring and analyzing Cardiac Analysis Bittium Faros™ Analysis Software Waterproof ECG Devices • Compact and lightweight 48mm • Simple and intuitive user interfa
Slide 35: Measuring and Monitoring Biosignals – Sleep Apnea Test
CMD 2023 | Medical Strategy Update 2024 – 2025 Measuring and Monitoring Biosignals – Sleep Apnea Test Home Seep Apnea Testing empowered with AI Bittium Respiro™ Analyst Analysis Software • Location Independent and AI-Empowered Analysis • Cost Efficient solution with 1 in 3 configurations • Latest te
Slide 36: Measuring and Monitoring Biosignals - EEG
CMD 2023 | Medical Strategy Update 2024 – 2025 Measuring and Monitoring Biosignals - EEG Fast and Easy Wireless EEG for Intensive Care Bittium BrainStatus™ • Easy and rapidly applicable • High signal quality • Location independent data analysis 36 © Bittium 2023 | Public
Slide 37: Our Strengths
CMD 2023 | Medical Strategy Update 2024 – 2025 Technology Superior biosignal quality Our Credibility Global partner reference Strengths Way of Working Trusted and transparent partner End-to-End Solutions Ability to provide devices, analysis software and back-end system Ecosystem Network from concept
Slide 38: Accelerating Growth
CMD 2023 | Medical Strategy Update 2024 – 2025 Accelerating Growth Market needs for remote monitoring in Healthcare 1 Remote monitoring, new home-based monitoring methods with faster and more efficient health data analysis are needed. 2 Focus on selected services Develop our know-how and way of work
Slide 39: Q&A
Q&A
Slide 40: Defense & Security – Resilient Tactical & Secure Communications
Defense & Security – Resilient Tactical & Secure Communications Tommi Kangas October 30, 2023
Slide 41: Seamless Communication Architecture Across the Battlefield
CMD 2023 I Defense & Security Strategy Update 2024 – 2025 Seamless Communication Architecture Across the Battlefield Superior waveform quality and secure wireless technology with integration to military-grade hardware and software. 41 Bittium 2023 | Public
Slide 42: Market Trends Supporting Our Growth
CMD 2023 I Defense & Security Strategy Update 2024 – 2025 Active NATO membership Digitalization More demand of the troops, for mobility and Market battlefield IP data throughput Trends OUR MISSION Seamless Communication Automation, AI, Supporting Cybersecurity threats, Architecture Across the unmann
Slide 43: Our Tactical Communication Offering Enables Connectivity Across the Battlefield
CMD 2023 I Defense & Security Strategy Update 2024 – 2025 Our Tactical Communication Offering Enables Connectivity Across the Battlefield Bittium TAC WIN™ - Broadband backbone IP network Bittium Tough SDR™ - Bittium Tough VoIP™ - Next-generation Voice over IP and tactical radios routing in tactical
Slide 44: Waveforms
CMD 2023 I Defense & Security Strategy Update 2024 – 2025 Waveforms Bittium TAC WIN Waveform™ Wide bandwidth & battle proof wireless MANET for TAC WIN & Tough SDR ESSOR High Data Rate Waveform IP connectivity and interoperability, also for European coalition troops (NATO STANAG 5651) Bittium Narrowb
Slide 45: Our Strengths in Tactical Communication
CMD 2023 I Defense & Security Strategy Update 2024 – 2025 Our Strengths in Tactical Communication Bittium TAC WIN is a high-performance IP-based system sWide bandwidth sLow information latency s Mobile & quickly self-healing Bittium Tough SDR radios help to produce and share real-time situational
Slide 46: Our High Security Product Offering Enables Resilient Communications
CMD 2023 I Defense & Security Strategy Update 2024 – 2025 Our High Security Product Offering Enables Resilient Communications Bittium Tough Mobile™ 2 Three phone variants for different security levels Certified solution together with Secure Suite Bittium Secure Suite™ Device management and encryptio
Slide 47: Our Strengths
CMD 2023 I Defense & Security Strategy Update 2024 – 2025 Superior Situational Awareness Wide bandwidth, mobile, and survivable backbone network with TAC WIN Our Next-Level Performance Versatile RF performance, excellent interoperability and MANET networking with Tough SDR radios Strengths Routing E
Slide 48: Accelerating Growth
CMD 2023 I Defense & Security Strategy Update 2024 – 2025 Accelerating Growth Market need for modern tactical communication systems 1 Digitalization, mobility of the troops, and increasing use of IP on the battlefield set a demand for high-performance tactical communications systems Active NATO memb
Slide 49: Q&A
Q&A
Slide 50: Engineering Services – for Wireless Embedded Solutions
Engineering Services – for Wireless Embedded Solutions Jari Inget October 30, 2023
Slide 51: World-Class Knowledge
CMD 2023 I Engineering Services Strategy Update 2024 – 2025 World-Class Knowledge Radio know-how, life-cycle design competence, implementation of embedded and secure wireless products for various industries. 51 Bittium 2023 | Public
Slide 52: Market Trends Supporting Our Growth
CMD 2023 I Engineering Services Strategy Update 2024 – 2025 Connectivity everywhere Continuously evolving technologies Market Embedded wireless devices Trends World-Class Knowledge Radio know-how, life- cycle design competence, Supporting IoT and e2e services implementation of embedded and secure wi
Slide 53: Engineering Services Covering Entire Product Lifecycle
CMD 2023 I Engineering Services Strategy Update 2024 – 2025 Engineering ANALYSIS Services Covering SUPPORT AND CONCEPTING MAINTENANCE Entire Product Lifecycle TRANSFER TO PRODUCT PRODUCTION DEVELOPMENT INTEGRATION, TEST AUTOMATION AND CERTIFICATION 53 Bittium 2023 | Public
Slide 54: For Industry IoT OEM´s
CMD 2023 I Engineering Services Strategy Update 2024 – 2025 For Industry IoT OEM´s Embedded Connected Device Design Services Wide range of different industries e.g. logistics, construction, mobility, medical, wellbeing, sports Customer needs: Development partner to create reliable, intelligent and s
Slide 55: Offering for Telecom OEM´s
CMD 2023 I Engineering Services Strategy Update 2024 – 2025 Offering for Telecom OEM´s Network OEM customers Radio Unit platforms & variants, proprietary radios Customer needs: Development services for radio units; HW, SW, integration and verification Value Proposition: Development partner with exte
Slide 56: Our Strengths
CMD 2023 I Engineering Services Strategy Update 2024 – 2025 Know-how Wireless technologies- and whole product design Design service coverage Our All design areas from the same house Strengths Product life cycle support from concepting to design and transfer to production Way of Working Trusted and t
Slide 57: Accelerating Growth
CMD 2023 I Engineering Services Strategy Update 2024 – 2025 Accelerating Growth Market needs wireless devices 1 Demand of development services for wireless technology and devices Focus on selected services 2 Develop our know-how and way of working constantly Growth with key customers 3 Create strate
Slide 58: Q&A
Q&A
Slide 59: Summary & Closing
Summary & Closing
Slide 60: Why to Invest in Bittium
Bittium Corporation Capital Markets Day 2023 | Summary Why to Invest in Bittium Committed and highly skilled management and personnel Solid foundation for growth has been built Updated strategy towards profitable growth World-class products and services Strong customer base Megatrends supporting the
Slide 61: Q&A
Q&A
Slide 62: Thank you!
Thank you!