Bittium Corporation
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Correction to the Stock Exchange Release: Bittium Corporation Starts Financial Reporting Based on the New Segment Structure on January 1, 2024

Bittium Corporation, Stock Exchange Release, December 22, 2023, at 10.30 am (CET+1)

Bittium Corporation announced yesterday Stock Exchange Release about the decision of the Board of Directors to start financial reporting based on the new segment structure on January 1, 2024. In the release, a new Group Functions segment and its operations was introduced, and it was stated that it provides services to the Company’s three Business Segments. For these services, the Business Segments pay a service fee in proportion to the number of personnel in each Business Segment, and not in proportion to the net sales of each Business Segment, as it was falsely stated in the Release yesterday. The service fee is distributed to the Business Segments in proportion to their number of employees.

Below the whole release with the correction:

Bittium Corporation Starts Financial Reporting Based on the New Segment Structure on January 1, 2024

The Board of Directors of Bittium Corporation has decided on December 21, 2023 that the company will start financial reporting based on the new segment structure as of January 1, 2024. The new segment reporting is based on the updated strategy announced on October 30, 2023. In the new reporting structure, there will be four reporting segments: the three previously announced Business Segments, and, in addition, the company has decided to report the Group Functions as a separate, fourth segment. Earlier, Bittium’s business operations have been conducted in one segment, and, consequently, the company has reported only one segment in its financial reporting. The goal in adopting the new reporting structure is to improve the transparency into the company’s Business Segments and their development.

The business segments to be reported are:

• Medical, focusing on measuring biosignals and remote monitoring,
• Defense & Security, offering products and services to the defense and authorities’ markets, and
• Engineering Services, offering embedded wireless solutions for its customers.

During the past two years, Bittium has strengthened its businesses to become even more independent to enable the Business Segments to operate as their own entities. As part of this, the company has reorganized the entire group operations by transferring, among other things, previously centralized group functions largely to Business Segments in accordance with the needs of each segment. In the same context, the company went through significant change negotiations due to production, financial and reorganization reasons.

The new Group Functions segment includes group administration, strategic projects, and stock market listing related functions, as well as renting premises owned by the group. Group Functions charge rent from Business Segments for the premises. In addition to this, Group Functions produces common services for the Business Segments, which are reasonable to be managed centrally. For these services, the Business Segments pay a service fee in proportion to the number of personnel in each Business Segment. The CEO, CFO, CDO, Vice President, Communications and Sustainability and CLO are responsible for the Group Functions. Altogether, there are approximately 50 employees in Group Functions.

The reportable financial indicators of the new segments are net sales, EBITDA, EBITDA % of net sales, operating result, operating result % of net sales, R&D investments, capitalized R&D investments, new orders and order backlog, and the amount of personnel. The first financial report based on these new segments will be Bittium Corporation’s Business Review January-March 2024, to be published on April 26, 2024, at 8.00 am (CET+1). Adjusted comparative segment information from 2023 will be published in the same Business Review report.

Hereby, the nominations announced on August 14, 2023, of Tommi Kangas as interim Head of the Defense & Security Business Segment and Jari Inget as interim Head of the Engineering Services Business Segment, will no longer be temporary, as both continue heading their respective Business Segments and as members of Bittium Corporation’s Management Group. As of December 21, 2023, Bittium Corporation’s Management Group include CEO Johan Westermarck, CFO Antti Keränen, CLO Kari Jokela, Vice President, Communications and Sustainability Karoliina Malmi, CDO Laura Kauppinen, and the heads of the Business Segments: Antti Näykki, Senior Vice President, Medical Business Segment, Tommi Kangas, Senior Vice President, Defense & Security Business Segment, and Jari Inget, Vice President, Engineering Services Business Segment.

Oulu, December 22, 2023
The Board of Directors of Bittium Corporation

Further information:

Johan Westermarck
CEO
Tel. +358 40 344 2789 (group communications)

Distribution

Nasdaq Helsinki Oy
Main media

Bittium

Bittium specializes in the development of reliable, secure communications and connectivity solutions leveraging its over 35-year legacy of expertise in advanced radio communication technologies. Bittium provides innovative products and services, customized solutions based on its product platforms, and R&D services. Complementing its communications and connectivity solutions, Bittium offers proven information security solutions for mobile devices and portable computers. Bittium also provides healthcare technology products and services for biosignal measuring in the areas of cardiology and neurophysiology. Net sales in 2022 were EUR 82.5 million and operating profit was EUR 0.3 million. Bittium is listed on Nasdaq Helsinki. www.bittium.com

Files
Correction to the Stock Exchange Release: Bittium Corporation Starts Financial Reporting Based on the New Segment Structure on January 1, 2024 (wkr0006.pdf)