Digia Oyj - Company Announcement

EFFECTS OF THE DEMERGER ON DIGIA'S CONTINUING OPERATIONS

Helsinki, 2016-03-04 11:51 CET (GLOBE NEWSWIRE) -- Digia Plc Stock exchange
release, 4 March 2016 at 12:51 


EFFECTS OF THE DEMERGER ON DIGIA'S CONTINUING OPERATIONS


At its meeting on 3 March 2016, Digia Plc's Board of Directors confirmed that
the profit guidance for its continuing operations in 2016 will not change due
to the demerger. Digia's continuing operations comprise the Group's domestic
segment. 

On 16 December 2015, the Board of Directors of Digia Plc approved a demerger
plan concerning the partial demerger of Digia. According to the demerger plan,
Digia will be demerged such that all of Digia's Qt segment-related assets, debt
and liabilities will be transferred to the company created in the demerger. The
planned name of the new company is Qt Group Plc. Digia's domestic segment will
remain with Digia. 

Digia's Board of Directors proposes that the demerger and the demerger plan be
approved at the Annual General Meeting, which is scheduled for 16 March 2016.
It is expected that the implementation of the partial demerger will be
registered on 1 May 2016. 

Strategy work on Digia's continuing operations is ongoing

Digia seeks organic growth outpacing the average growth rate of the Finnish ICT
market, a good level of operating profit and strong cash flow. We aim to
distribute 30 per cent of the annual profit in dividends. We are also actively
assessing opportunities for carefully selected acquisitions that support the
company’s strategy. 

Strategy work on Digia's continuing operations is ongoing and the company will
announce its strategy update and financial objectives in the near future. 

Near-term outlook for Digia's continuing operations

Besides pursuing organic growth, Digia will actively seek potential
acquisitions to support its strategy and to accelerate domestic business
growth. 

Digia believes digitalisation, the growing popularity of multi-channel services
and the revolution in business models involve major business opportunities. To
fully tap into these opportunities, Digia will make determined investments in
personnel development and recruitment, and in bolstering its offering. 

Digia expects overall demand to remain moderate in the domestic business and
anticipates continued net sales growth in 2016. The outlook is considered
particularly positive in the first half. Profit performance in domestic
operations in 2016 is anticipated to remain on more or less the same level as
last year. 

Key financial figures for continuing operations (excluding carve-out figures)



                               1 Jan. - 31 Dec. 2015   1 Jan. - 31 Dec. 2014
                              (unaudited)(EUR 1,000)  (unaudited)(EUR 1,000)
                                                      
-----------------------------------------------------
Net sales                                     80,946                  77,028
Operating result                               5,854                   6,311
Profit before taxes                            5,341                   5,880
Net profit                                     4,246                   4,902
Balance sheet total                           60,425                  57,560
Interest-bearing liabilities                  12,148                  14,578
Gearing, %                                     28.2%                   42.6%
Equity ratio, %                                53.4%                   50.7%
Personnel, 31 Dec.                               749                     746
Average personnel                                740                     744




FORMULAS FOR THE INDICATORS

                                                                                
                                                                                
Equity ratio     =        (Shareholders' equity + minority interest) x 100      
 (%)                                                                            
                   -------------------------------------------------------------
                   -------------------------------------------------------------
                               Balance sheet total - advances received          
                                                                                
                                                                                
Gearing (%)      =  (Interest-bearing liabilities - cash and cash equivalents) x
                                                 100                            
                   -------------------------------------------------------------
                   -------------------------------------------------------------
                                        Shareholders' equity                    



Helsinki, 4 March 2016



Digia Plc


Board of Directors


Additional information:
President and CEO Juha Varelius,
tel. +358 10 313 3000


Distribution:
NASDAQ OMX Helsinki
Principal media