Digia (DIGIA) investor relations material

Strategic Direction and Growth Ambitions

• Updated strategy for 2026–2028 targets over 10% annual revenue growth, over 12% EBITA margin, and 30% of revenue from outside Finland by the end of the period.

• Focus on scaling international operations, especially in Europe, with integration, data, and AI as core offerings.

• Growth to be achieved both organically and through disciplined M&A, with recent acquisitions strengthening presence in Sweden, Poland, and the Netherlands.

• Investments prioritized in productization, scalable solutions, and AI-driven services, leveraging the entire group’s resources.

• Three-phase execution: 2026—renew and invest, 2027—accelerate growth, 2028—scale operations.

Financial Performance and Targets

• Achieved 14.1% CAGR in revenue and 20.3% international revenue share during 2023–2025, outperforming sector peers.

• EBITA margin reached 10.3% in 2024, with a target to exceed 12% by Q4/2025 and by the end of 2028.

• Strong cash flow, low net debt, and high equity ratio support continued investments and stable dividend policy (at least 30% of annual profit distributed as dividends).

• Service business accounts for over 50% of revenue, providing recurring income and stability.

• Top 20 customers represent about half of unit revenues, with long-term contracts and high renewal rates.

Business Model and Competitive Advantages

• Four business areas: Digital Solutions, Business Platforms, Financial Platforms, and Managed Solutions, each with specialized offerings and strong sector focus.

• Emphasis on AI integration, automation, and lifecycle services to drive customer productivity and digital transformation.

• Deep customer relationships in regulated, mission-critical sectors such as finance, public administration, and infrastructure.

• Managed Solutions delivers 24/7 lifecycle services, ensuring high switching costs and stable, predictable cash flows.

• Systematic approach to M&A, focusing on strategic fit, quality, and synergies, with integration capabilities proven by recent cross-border deals.