Digia Oyj

Hyvät kuulijat, tervetuloa kuuntelemaan Digian ensimmäisen puolivuoden tulokset. Minä olen Timo Levoranta, Digian toimitusjohtaja. Let's briefly go through what Digi is and what our strategy is. After the summer, it might be good to take a short look at it. Quickly, H1 in its entirety. Then we move on to the last year, the fourth, and finally, as usual, the guidance. Digia on älykkään liiketoiminnan luotettu kumppani. Teemme konsultointia, ohjelmistoja ja IT-palveluita. Meidän strategiamme on hyvin yksinkertainen. Se nimi on Rethink Intelligent Business ja se tarkoittaa kahta asiaa. Tuomme tekoälyhyödyt asiakkaiden arjen toimintaan, prosesseihin ja palveluihin ja kaksi, laajennaamme liiketoimintaamme kansainvälisille markkinoille. and today we have a little over 1,500 professionals at Digian Leivis. Renew and grow, uudistaja kasva, on usein se slogan mitä me käytämme ja jos katsotaan digian uudistumismatkaa vuodesta 2016 tähän päivään, siinäkin nähdään selvä muutos. Olimme hyvin paljon taustajärjestelmäfokusoitunut yritys, mikä sinänsä on äärimmäisen hyvä asia, koska siellä ovat näitä tärkeätä liiketoimintaprosesseja, joita sitten voidaan automatisoida, jossa tekoälyä hyödynnetään. Niistä meillä on paljon kokemusta. Tänään olemme muuttuneet paljon enemmän kokonaistarjoaman taloksi ja tuoneet tekoälyn tänne mukaan. Toimimme enemmän vähän kuin holding-yhtiönä. Nyt me hyödynnämme Digian koko vahvuutta, eli yhdessä me pystymme olemaan enemmän, ja tämä on meille selvä kilpailuetu. Työkulttuurimme oli ehkä hyvin perinteinen. Tänään olemme hyvin moderni yhtiö. and, from a global point of view, at a very high level in Finland, we already have about 20% of international business. Of course, it's all about people. Everything depends on people, no matter how we act. For this reason, we also have our cultural principles that guide our daily activities. And these are not just a slogan, but a real thing that affects how we work together and it forms how we work together. And these cultural principles are important when we think that the company must be constantly renovated and often the fact that people can renovate their operations is always the most difficult part. It is easy to change systems. But our core principles are courage, Thank you for watching! If you look at our journey in terms of numbers, we have a ten-year-long pipeline of profitable growth behind us, and this is what we want to do in the future as well. We are not in a quarter business, as I have often said. We are in a long-term profitable growth business. A brief overview of the strategy. Rethink Intelligent Business, as I said earlier. It means two things. We bring the benefits of the industry to the customer's daily processes, services and activities, and then we increase international business. Our goal at the end of the strategy period, which ends in 2028, is annual 10% increase in turnover. The EBITDA margin was over 12% at the end of the year of 2028 and the national turnover rose by 30% at the end of the year. In order to reach these goals, we have certain investments or investment areas, and there are four important areas. One is productivity and scalability. We are moving towards product-based concepts and services. so that we can bring the new business model to the sidelines of this Taimen material model. International expansion, we expand organically and enterprise-wise. Artificial intelligence in customer solutions as well as in developing our own business. And fourthly, of course, our people and experts. So we take care that we have strong expertise that corresponds to this day and also to the needs of the future. With this setup, we can help our customers. The strategy has been changed to three stages. Now we are in the first year. The year 2006 is exactly the year of renewal, that is, renewing our business models, doing and investing. The year 2027 is already a stronger growth year, that is, we are accelerating growth, and the year 2028 is also the year of expanding the business and we should clearly see better scalability in 2028. What did the first half of the year look like in this strategy? H1-2026. I can say that the renewal has continued. We have made investment changes to the market, which has been relatively challenging for the first half of the year, but despite that, we can continue our profitable growth. I will return to the market a little more closely in connection with Q2. Let's move on to the second quarter of the year. If we take a few steps from there, on the customer's side, we made a positive deal in digital services, on the data side, on the business management side, i.e. on different sides, even though the market was challenging, after all, a little bit at the end of the season. Data- ja tekoälykonsultointien ratkaisuja me teimme erilaisille alueille, turvallisuussektorille, eläkevakuutukseen, energiaan, terveydenhuoltoon. Tässä hyvänä taustana meillä on muun muassa tuo Puolustusvoimien tekoälykeskuskumppanuus, mikä antaa meille tiettyjä vahvuuksia tehdä näitä asioita korkean turvallisuuden ympäristöissä. Satakunnan hyvinvointialue on yksi hyvä tämmöinen esimerkki, missä ihan suoraan haetaan muun muassa asiakaspalveluun tehokkuutta, laatua. Digi ja Hammer on meidän oma hanke, millä me omaa organisaatiota koulutamme ja viemme yhä vahvemmaksi tekoälykäyttäjäksi ja haemme sieltä itse niitä hyötyjä. Eli eat your own dog food tyyppisesti toimii myös itse esimerkki. And of course, sustainability is always like that, and our goals were also accepted by STBi. So it is, of course, a natural part of our business. If we look at the numbers of marketers in the second quarter, the market was soft and the customers were careful about their investments and considered them very carefully. And of course, in the same way, this slightly affected our turnover, but we were still able to grow the percentage. It was also partly due to the fact that we had one down payment of 0.4 million for one of the projects involved, which was also due to the development of this turnover. But a challenging market, partly because we are skipping our own activities, things that are now over, but if we have to skip it, this growth will go on more strongly. On the other hand, there were also good highlights. If we think about it, when I spoke in the strategy that products are one important thing, Digia's own product, Digia Financial Products, performed very well, it grew and its appearance is very good. Another important strategy is that our international business has grown very well, especially the organic growth of Savangard in Poland was very strong. The same is true for Kleinfair in both the Netherlands and Sweden. Even though it was a challenging quarter, there were still small positive signals at the end of 2014. If we look at sales, the summer was the best month of sales in the first half of the year, so 30% of sales were made in the summer when we look at the entire first half of the year. At the same time, if we look at organic growth, organic growth in the summer was then again 4.9%. Challenging market, certain bright spots, good bright spots, slightly positive at the end. Our turnover was stable, 5.8% at the same level as in the previous quarter. There was a special delay, one renewal period. We didn't see this coming from our reporting period. At the same time, there was a decline related to the project, which also affected the results. It's always good to remember that when we have T&K investments or we have investment strategies, for example, we invest in international sales organizations or something else, we write these directly to the results so that we don't activate these in the balances. From the scale of our T&K investments, during the first half of the year, they were about 1.9 million. but we will go straight to this so that investors can fully understand what is happening in the company in terms of numbers. There are no activations. As I said, our goal is to have a 30% level of international business operations. We have reached the end of the strategy period and now we are at the level of 21.4% and it has grown steadily here. We consider this important in the sense that as Digia continues to grow, we cannot just be dependent on the Finnish market, but we must also find growth from outside the Finnish border. As Digia grows in the future, the risk of a business portfolio is also more statistically distributed. and here, Savancard really performed very well. Another thing in Digia is this continuous service business, that is, about half of our business is a continuous service, which of course gives a certain stability, and in this quarter, it slightly increased compared to the comparison period. If we look at The growth of the future and the opportunities for growth and balance. It is also good to note that during this review period, our balance was strengthened in the past, i.e. the operating cash flow rose to 8 million euros, the net debt rate dropped to 23.4, and Oma varaisuusaste nousi 48.5, eli Digian taas on erittäin vahvassa kunnossa, mikä taas sitten tukee meidän tulevaisuuden kasvua ja myös epäorgaanista liiketoiminnan kasvattamista. Eli yhteenveto, jos tätä Q2 kattoi, meidän markkina oli haastava. However, we were still able to grow profitably. The turnover increased by 5.8% in the EBITDA market. A very strong development in Savankaadi. A very good development in our own product, Digital Financial Systems in Finland. Tase vahvistui ja tämän lisäksi vielä oli pieniä positiivisia signaaleja kesäkuussa aivan kvartaalin lopussa. Hyvä myyntikuukausi ja siellä organinen kasvukin oli jo sen 4,9%. Hyvät kuulijat, tältä näyttää Digia ja me toistamme edelleen meidän ohjeistuksemme, eli Digian liikevaihto kasvaa ja liikevoitto on samalla tasolla tai kasvaa edellisvuoteen verrattuna.