CEO's review

The year 2010 seems truly promising: the market outlook has improved on twelve months ago and there is an air of eager anticipation in our company. This year we will actively seek growth.

At the beginning of 2009, companies seemed to report nothing but bad news and it was difficult to see our way ahead. We therefore decided to focus on our core operations, promising to concentrate on four things in 2009: securing a strong cash flow, sustaining profitability, strengthening our balance sheet and reducing debt. We succeeded in all of these areas, and we are now in much better shape than before.

We began the year under review with a new organisation, and believe that our restructuring was more successful than average. Our new organisation has clearly met the objectives set for it. Our sales are now managed from a single point and our entire offering is competitively targeted at all our customers. Moving away from being a ‘silo-based’ organisation has enabled us to provide our customers with even more added value and flexibility than before.

Unfortunately, we were also forced to make unpleasant decisions, such as closing certain sites in order to rationalise our operations. However, we are delighted with that fact that more than half of the experts from these sites have relocated elsewhere within Digia on a permanent or temporary basis. Towards the end of the year, as a one-off measure, we also announced the write-down of the goodwill relating to our Mobile Solutions business. Although this left the company with a negative net profit, our operating profit was good.

Today, we have a clearer view of the way ahead and are extending our gaze much further into the future. In addition to concentrating on core operations, we will seek to develop our business through new, strategic projects while building profitable growth.

According to our new strategy, we will seek not only organic growth but also, for example, growth through international product business. Our solid cash flow will enable us to implement development projects, make investments, strengthen our balance sheet and issue a continuous flow of dividends.

I would like to extend my warm thanks to our customers for their fruitful cooperation, and to our shareholders for trusting in our success. My special thanks also go out to Digia’s skilled personnel for each and every valuable workday during last year.

Juha Varelius
CEO