Earnings release
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DIGIA PLC, ATOMITIE 2 A, FI-00370 HELSINKI TEL. +358 (0)10 313 3000 | DIGIA.COM BUSINESS ID: 0831312-4 Digia Plc BUSINESS REVIEW January–September 2025 (unaudited)
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DIGIA PLC’S BUSINESS REVIEW JANUARY–SEPTEMBER 2025 23 OCTOBER 2025 AT 3:00 PM 2 / 6 The strongest quarter of the year: Net sales up 8.4 per cent and EBITA margin amounts to 10.5 per cent July–September 2025 • Net sales: EUR 49.3 (45.4) million, up 8.4 per cent; organic growth 0.0 per cent • Operating profit (EBITA): EUR 5.2 (5.6) million, growth of -7.5 per cent; EBITA margin: 10.5 (12.3) per cent of net sales • Operating profit (EBIT): EUR 4.3 (4.8) million, growth of -10.0 per cent; EBIT margin: 8.8 (10.6) per cent of net sales • Earnings per share: EUR 0.12 (0.13) January–September 2025 • Net sales: EUR 156.8 (151.1) million, up 3.7 per cent; organic growth 0.5 per cent • Operating profit (EBITA): EUR 12.8 (15.3) million, growth of -16.2 per cent; EBITA margin: 8.2 (10.1) per cent of net sales • Operating profit (EBIT): EUR 10.4 (13.0) million, growth of -19.8 per cent; EBIT margin: 6.7 (8.6) per cent of net sales • Earnings per share: EUR 0.28 (0.35) • Return on equity (ROE): 11.6 (15.9) per cent • Equity ratio: 46.6 (50.7) per cent • Acquisition of the Polish company Savangard Sp. z o.o. • Profit guidance remains unchanged: Digia’s net sales will grow (EUR 205.7 million in 2024) and its operating profit (EBITA) will either increase or remain on a par with 2024 (EUR 21.2 million in 2024). Unless otherwise stated, the comparison figures provided in parentheses refer to the corresponding period of the previous year. Group key figures EUR 1,000 7–9/2025 7–9/2024 Change, % 1–9/2025 1–9/2024 Change, % 1–12/ 2024 Net sales 49,267 45,438 8.4 % 156,784 151,148 3.7 % 205,672 Operating profit (EBITA) 5,150 5,569 -7.5 % 12,823 15.311 -16.2 % 21,161 - as a % of net sales 10.5 % 12.3 % 8.2 % 10.1 % 10.3 % Operating profit (EBIT) 4,333 4,816 -10.0 % 10,449 13.022 -19.8 % 18,208
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DIGIA PLC’S BUSINESS REVIEW JANUARY–SEPTEMBER 2025 23 OCTOBER 2025 AT 3:00 PM 3 / 6 EUR 1,000 7–9/2025 7–9/2024 Change, % 1–9/2025 1–9/2024 Change, % 1–12/ 2024 - as a % of net sales 8.8 % 10.6 % 6.7 % 8.6 % 8.9 % Result for the period 3,232 3,421 -5.5 % 7,460 9,296 -19.7 % 13,291 - as a % of net sales 6.6 % 7.5 % 4.8 % 6.2 % 6.5 % Return on equity, % 11.6 % 15.9 % 16.7 % Return on investment, % 11.4 % 15.9 % 16.6 % Interest-bearing net liabilities 30,618 18,094 69.2 % 11,642 Net gearing, % 35.0 % 22.6 % 13.9 % Equity ratio, % 46.6 % 50.7 % 52.9 % Number of personnel at period-end 1,609 1,567 2.7 % 1,576 Average number of personnel 1,614 1,559 3.5 % 1,609 1,554 3.5 % 1,553 Shareholders' equity 87,497 80,012 9.4 % 83,718 Balance sheet total 193,292 162,723 18.8 % 163,486 Earnings per share, EUR 0.12 0.13 -5.5 % 0.28 0.35 -19.7 % 0.50 Earnings per share (diluted), EUR 0.12 0.13 -5.5 % 0.28 0.35 -19.7 % 0.50 CEO’s Review: "The third quarter saw our best performance this year in terms of both net sales growth (8.4%) and EBITA margin (10.5%). Earnings performance strengthened substantially towards the end of the review period. Digia posted record-high monthly net sales and operating profit (EBITA) in September. In the current market environment, I am satisfied with both this development and the quarter as a whole. Another major success for us was that the commercial integration of the acquired Polish company Savangard got off to a flying start. Compared to last year's record-breaking comparison period, net sales for July–September increased by 8.4 per cent to EUR 49.3 (45.4) million. EBITA was EUR 5.2 (5.6) million. Organic growth accounted for 0.0 per cent. International business accounted for 19.6
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DIGIA PLC’S BUSINESS REVIEW JANUARY–SEPTEMBER 2025 23 OCTOBER 2025 AT 3:00 PM 4 / 6 (11.3) per cent during the review period, exceeding our target level for the end of 2025. The service and maintenance business accounted for 51.9 (51.2) per cent and the project business for 48.1 (48.8) per cent of net sales during the review period. EBITA for the third quarter included EUR 0.3 million in expenses with no cash flow impact related to changes in the fair value of acquisitions. The result also includes EUR 0.1 million in integration costs related to the Savangard acquisition. The result for the 2024 comparison period included a positive adjustment of EUR 0.4 million, as previously reported. Digia's EBITA reporting does not include adjustments for non-recurring expenses or positive items. In January–September, our net sales grew by 3.7 per cent to EUR 156.8 (151.1) million. Organic growth was 0.5 per cent. Our operating profit (EBITA) totalled EUR 12.8 (15.3) million, with an EBITA margin of 8.2 (10.1) per cent of net sales. International operations represented 15.2 (11.9) per cent of net sales. Market activity was slow to start after the holiday season, but some individual positive signals were observed towards the end of the season. Demand reflected customers’ need to use data to develop their business operations and step up cost effectiveness. Organic growth was seen in areas such as data-driven services, financial sector solutions, CRM solutions and integration services. The most important deal of the period was a four-year integration agreement valued at EUR 19.7 million for the City of Helsinki, which was won together with Savangard. Other notable agreements during the period included an integration agreement with a major Finnish customer, a new HSL agreement and a customer account for Digia Financial Systems in the banking sector. In Sweden, projects focused on the healthcare and social services sector, with the most significant deal being made with SLSO (Stockholm Healthcare Services). Artificial intelligence is one of the drivers accelerating market momentum. In Digia's view, AI yields the greatest benefits when it is seamlessly integrated into services and operations. At the beginning of the year, 15 per cent of Digia's sales were AI solutions, as measured by agreement value. The deals signed in the third quarter included the expansion of a client's AI competence centre with continuous maintenance services, financial management solutions for multiple clients, a pension process solution and extensive advisory services. Digia's sustainable growth is based on strong partnerships, as evident in the NPS for key customers: 61. In the period under review, we also published reference descriptions with the Finnish Defence Forces, Voimatel, Kaukokiito and ABB. Our partnership with the Defence Forces expanded to stronger use of AI and data. In the third quarter, we launched our new Digia API Factory service model. It responds to customers' need to modernise their integration architecture. This AI-enabled service enables transformation projects to be carried out significantly faster and more cost-
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DIGIA PLC’S BUSINESS REVIEW JANUARY–SEPTEMBER 2025 23 OCTOBER 2025 AT 3:00 PM 5 / 6 effectively, using a scalable model that guarantees predictable costs. The first Digia API Factory-based customer deliveries are already under way. Since its launch in the second quarter, our Business Operations Center – which monitors the business processes of clients, among other services – has gained 28 new service agreements and its net sales have grown by around 6 per cent. The Savangard acquisition closed in June significantly bolstered our international foothold in Europe, and this cooperation has rapidly yielded results. In Finland, we jointly won a EUR 2.1 million deal with a major Finnish player and a four-year integration agreement valued at EUR 19.7 million for the City of Helsinki. In Poland, Savangard signed a three-year EUR 4.1 million agreement with Polish Post and a multi-year EUR 1.25 million transformation project for an international retail chain. With the acquisition of Savangard, Digia is building a leading integration business in Northern Europe, an "Intelligent Integration Powerhouse" that brings together 420 integration experts and almost 300 AI and data professionals in Finland, Poland and Sweden. Digia's employer image continued to develop favourably. During the review period, Digia rose to 13th place in Universum's IT Professionals Employer Ranking (up from 27th in 2024) and to 24th (30th) in the Academic Work’s Young Professionals Attraction Index. This improves Digia's ability to attract top talent, which is a critical competitive factor in the implementation of our growth strategy. We have nine consecutive years of profitable growth behind us. The Unlock Your Intelligence strategy hinges on embedding the benefits of AI into our customers’ business operations. We are heading towards the symbiosis of humans and AI as well as autonomous processes. We will continue to forge ahead with the renewal of our operations to ensure further growth." Profit guidance for 2025 Digia’s profit guidance for 2025: Digia’s net sales will grow (EUR 205.7 million in 2024) and its operating profit (EBITA) will either increase or remain on a par with 2024 (EUR 21.2 million in 2024). Events after the review period There have been no major events since the review period.
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DIGIA PLC’S BUSINESS REVIEW JANUARY–SEPTEMBER 2025 23 OCTOBER 2025 AT 3:00 PM 6 / 6 Briefing invitation A briefing for analysts will be held at 4:00 pm on Thursday 23 October 2025 as a Teams meeting. Attendance instructions have been emailed to participants. The material and presentation for the event will be available from 4:00 pm on 23 October 2025 on the company’s website: digia.com/en/investors/reports-and-presentations. Financial reporting in 2026 In 2026, Digia will publish its Financial Statement Bulletin, two business reviews, and half-year interim report as follows: • Financial Statement Bulletin 2025: Thursday, 5 February 2026 at 3:00 pm • Business Review 1–3/2026: Wednesday, 29 April 2026 at 8:00 am • Half-year Report 1–6/2026: Thursday, 6 August 2026 at 3:00 pm • Business Review 1–9/2026: Tuesday, 27 October 2026 at 3:00 pm The Annual Report and financial statements for 2025 will be published on Friday, 6 March 2026. The Annual General Meeting is scheduled for Tuesday, 24 March 2026. For further information, please contact: Timo Levoranta, President & CEO tel. +358 40 500 2050 Distribution Nasdaq Helsinki Key Media digia.com Digia is a software and service company that combines technological possibilities and human capabilities to build intelligent business, society and a sustainable future. Our mission is to keep our customers at the forefront of digital evolution. There are more than 1,600 of us working at Digia and we operate globally with our international customers. Digia’s net sales totalled EUR 205.7 million in 2024. The company is listed on NASDAQ Helsinki (DIGIA).