Slide 1: Financial Statement Bulletin January-December 2023
Bittium Corporation’s Financial Statement Bulletin January-December 2023 CEO Johan Westermarck February 9, 2024
Slide 2: Forward-looking Statements
Financial Statement Bulletin 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 statements prece
Slide 3: Contents
Contents ▪ Summary of 2023 ▪ Business Highlights 2023 ▪ Financial Review 4Q and 1-12 2023 ▪ Updated Strategy ▪ Outlook 2024 ▪ Q&A
Slide 4: Summary of 2023
Financial Statement Bulletin 2023 2023 net sales and operating result were weak • Net sales in 4Q were 25.7 MEUR, operating result was 1.0 MEUR • Non-recurring costs of EUR 3.2 in 4Q 2023 • Net sales in 2023 were 75.2 MEUR, operating result was -4.3 MEUR Summary 2023 was a year of changes of 2023 •
Slide 5: Business Highlights
Business Highlights
Slide 6: Defense & Security
Financial Statement Bulletin 2023 Defense & Security • Geopolitical uncertainty has lead the states to increase their defense budgets and new projects to modernize the defense forces are starting • Finland has joined the military alliance NATO, which strengthens Bittium’s market position, especially
Slide 7: Medical
Financial Statement Bulletin 2023 Medical • The remote diagnostics market continues to grow • Insurance policies related to treatment reimbursement vary between countries affecting the growth pace • Entering new markets requires obtaining medical device approvals in the target country, which can tak
Slide 8: Engineering Services
Financial Statement Bulletin 2023 Engineering Services • Despite the prevailing cost-saving pressures in the markets among our customers, Bittium’s R&D services sales grew during 2023 • New customers outside of Finland • The accelerating digitalization in various industries increased the need for de
Slide 9: Financial Review
Financial Review
Slide 10: Quarterly Development of Net Sales
Financial Statement Bulletin 2023 Quarterly Development of Net Sales MEUR 30,0 • Total net sales decreased by 7.0% compared to the previous year and were MEUR 25.7 (MEUR 27.6) 25,0 20,0 • Product-based net sales were MEUR 16.8 (MEUR 20.9) 15,0 • The share of Medical products was MEUR 5.3 (MEUR 5.1)
Slide 11: Yearly Development of Net Sales
Financial Statement Bulletin 2023 Yearly Development of Net Sales MEUR 90,0 • Total net sales decreased by 8.8% compared to the 80,0 previous year and were MEUR 75.2 (MEUR 82.5) 70,0 60,0 • Product-based net sales were MEUR 45.8 (MEUR 57.4) 50,0 • The share of Medical products was MEUR 21.8 40,0 (ME
Slide 12: Operating Result Development
Financial Statement Bulletin 2023 Operating Result Development Quarterly 5,0 30,0 % Yearly 8,0 8,0 % 4,0 3,0 20,0 % 6,0 6,0 % 2,0 10,0 % 4,0 4,0 % 1,0 2,0 2,0 % MEUR 0,0 0,0 % -1,0 -10,0 % MEUR 0,0 0,0 % -2,0 -3,0 -2,0 -2,0 % -20,0 % -4,0 -4,0 -4,0 % -5,0 -30,0 % 4Q 1Q 2Q 3Q 4Q -6,0 -6,0 % 2022 2023
Slide 13: R&D Investments
Financial Statement Bulletin 2023 R&D Investments • Level of R&D investments decreased slightly MEUR • MEUR 20.2 equaling 26.9% of the net sales (MEUR 22.3 30,0 40,0 % equaling 27.0% of the net sales) • MEUR 7.2 was capitalized (MEUR 6.6) 25,0 • Depreciations of R&D investments were MEUR 5.6 (MEUR 3
Slide 14: Cash Flow
Financial Statement Bulletin 2023 Cash Flow MEUR 2023 2022 Net profit +/- adjustment of accrual basis items 5.1 11.7 Change in net working capital -3.0 -2.9 Interests and taxes -0.9 -0.8 NET CASH FROM OPERATING ACTIVITIES 1.2 8.0 Net cash from investing activities -7.7 -8.0 Net cash from financing a
Slide 15: Assets and Liabilities
Financial Statement Bulletin 2023 Assets and Liabilities The balance sheet of December 31, 2023 was total of MEUR 157.7 • Trade and other payables MEUR 22.4 • Property, plant and • Inventories MEUR 26.6 • Interest-bearing debt equipment MEUR 18.2 • Trade and other receivables MEUR 38.1 MEUR 22.6 • C
Slide 16: Outlook 2024
Outlook 2024
Slide 17: Good Foundation for Profitable Growth
Financial Statement Bulletin 2023 Good Foundation for Profitable Growth Committed and highly skilled people World-class products and services Strong customer base Megatrends supporting the growth Updated strategy towards profitable growth Solid foundation for profitable growth has been built 17 © Bi
Slide 18: Updated Strategy for Key Focus Areas
Financial Statement Bulletin 2023 Change A change from a R&D organization to growth-oriented operating model Updated Three Business Segments Medical, Defense & Security, Engineering Services Strategy for Products & Services Strong focus on current products and services 2024-2025 R&D mainly on furthe
Slide 19: Financial Outlook 2024
Financial Statement Bulletin 2023 Net Sales Bittium expects the net sales in 2024 to be EUR 85 – 95 million (net sales EUR 75.2 million in 2023) Financial Outlook Operating Result Bittium expects the operating result to be EUR 7.0 – 9.5 million 2024 (operating result EUR -4.3 million in 2023) More I
Slide 20: Investor Calendar in 2024
Financial Statement Bulletin 2023 AGM 10.4.2024 Segment-based Investor reporting starts Annual Report 1Q 2024 Calendar 20.3.2024 26.4.2024 in 2024 3Q 2024 2Q 2024 18.10.2024 9.8.2024 20 © Bittium 2024
Slide 21: Questions & Answers
Questions & Answers www.bittium.com investor.relations@bittium.com