Strategy Implementation and Other Significant Events in January-December 2024
According to the strategy, updated on October 30, 2023, Bittium has three Business Segments: Medical, which focuses on measuring biosignals and remote monitoring, Defense & Security, which offers products and services to the defense and security markets, and Engineering Services, which offers R&D services. Previously centralized group functions were largely divided into these Business Segments, and the remaining group functions includes group administration, strategic projects, and stock market listing related functions, as well as renting premises owned by the group.
The strategy, updated at the end of 2023, had three focus areas: 1) Change from a product development organization to a customer-centric, growth-oriented operating model through segment organizations, 2) Strong focus on current products and on increasing their market shares, and focusing the R&D work mainly on further improving the competitiveness and productivity of the products, and 3) Increase of efficiency in own operating methods.
In 2024, the implementation of the strategy and measures towards a healthy company continued systematically. The company updated its operating methods and processes to support the growth-oriented operating model.
In the Defense & Security Business Segment, the company has taken important steps in its internationalization strategy after obtaining significant partnerships with the world’s largest defense players. Strategically important Partnership Agreement with the Finnish Defense Forces was signed at the end of the year.
In the Medical Business Segment, the stricter requirements of medical device approvals and long schedules are slowing down the pace of strategy progress. To enable growth the focus was on strengthening competencies, improving operations and efficiency, and implementing new processes. The development of products and systems to meet stricter requirements also plays an important role in building future growth.
In the Engineering Services Business Segment, the ways of working and processes were developed, and efficiency of own operations were improved. Improving the customer experience continued and the focus was on entering new markets. Customers’ cost-saving measures create uncertainty in the operating environment.
Allocating the R&D investments in accordance with the strategy to improving the competitiveness of existing products and developing features was reflected in declined R&D costs and in the improvement of operating profit. As a result of the change negotiations held at the end of 2023 and other cost-saving measures, the company achieved the planned cost savings in 2024.
Growth Strategy for 2025-2028
On December 20, 2024, Bittium updated its strategy for the years 2025–2028. The growth strategy has four basic pillars: 1) strengthening the leading secure embedded technology expertise as the cornerstone of the competitive advantage, 2) building up the capabilities required for sales and commercialization to enable growth, 3) strengthening the technology base by focusing R&D investments closer to customer needs, and 4) ensuring the delivery capabilities to enable trust and scalability. The goal of the growth strategy is to achieve profitable growth in all Business Segments.
At the same time Bittium updated its long-term financial targets: Bittium’s aims at an average annual net sales growth of more than 10 percent and an operating profit level of more than 10 percent. More information about the growth strategy: https://www.bittium.com/investors/bittium-for-investors/strategy/
Seamless and Secure Connectivity Program
At the end of March 2023, Bittium launched the Seamless and Secure Connectivity program, the purpose of which is to enable end-to-end connectivity in various operational areas with reliable, secure, and fault-tolerant connectivity architectures and products, including lifecycle services for products and solutions. Business Finland awarded development funding of EUR 10 million to the program in the challenger competition of Veturi-companies, and EUR 20 million to the ecosystem companies and research partners surrounding the program. The four-year program led by Bittium will last until 2026.
The Seamless and Secure Connectivity program enables comprehensive development of strategically important themes for Bittium. These themes include. e.g. encryption and information security technologies and remote medical diagnostics (ECG, EEG, and sleep apnea) including measuring of biosignals, digitalization of services, increase in wireless connectivity and data secure connections.
Four joint innovation projects have been launched in 2023 and 2024 related to the program, developing algorithms to reduce IoT security threats, optical identification methods for physical parameters and biomarkers, and digital solutions for the LifeScience industry. In total, more than 50 partner companies and research institutes have been involved in ecosystem discussions so far, and several other joint innovation projects are expected to be launched in early 2025.
More information about Seamless and Secure Connectivity program at: https://www.bittium.com/about-bittium/technologyinnovation/seamless-and-secure-connectivity-program/
Distribution of Extraordinary Dividend from 2023
In accordance with the proposal of the Board of Directors, the Annual General Meeting held on April 10, 2024, decided to authorized the Board of Directors to decide, at its discretion, on the distribution of an extraordinary dividend of EUR 0.03 per share, by October 31, 2024.
On October 18, 2024, the Board of Directors of Bittium Corporation decided to distribute the extraordinary dividend of EUR 0.03 per share with the authorizations granted to it by the Annual General Meeting. The dividend was paid to a shareholder who, on the record date for the dividend payment, October 22, 2024, was registered in the company´s shareholders´ register maintained by Euroclear Finland Ltd. The dividend was paid on October 29, 2024.
The Board of Directors evaluated that this discretionary extraordinary dividend can be paid, since there has been no significant deterioration in the business environment during 2024.
All the shares in the company are entitled to the dividend, except for own shares possibly held by the company on the dividend record date.
The minutes of the Annual General Meeting is available on the Bittium Corporation’s website at https://www.bittium.com/agm.