3 Digia in brief
3 Group structure
4 Strategy and business development
6 Major events in 2022
6 Key indicators
7 Profit guidance for 2023
7 Markets, business environment and
Digia’s market position
7 Acquisitions and business combinations
7 Financial review 2022
7 Net sales
7 Profit and profitability
8 Financing, cash flow and expenditure
8 Report on the extent of research and
development
8 Human resources and management
8 Share capital and shares
9 Share-based payments
10 Trading in shares during the fiscal year
10 Flagging notifications
10 Corporate governance
10 Annual General Meeting 2022
11 Board of Directors and auditor
11 Committees of the Board of Directors
11 CEO and the Management Team
11 Events after the balance sheet date
11 Risks and uncertainties
12 Board’s dividend proposal
13 Non-financial reporting 2022
This is a voluntary published pdf report, so it does not
fulfill the disclosure obligation pursuant to Section 7:5§
of the Securities Markets Act.
2
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
Board of Directors’ Report
Digia in brief
Digia is a growing software and service company that
helps its customers to renew and develop data-driven
business operations in our increasingly networked world.
Digia is the partner for its customers in comprehensive
digitalisation. We provide all the layers of digitalisation
from business systems to integrations, digital services and
24/7 monitoring and service management.
During the year now ended, we continued to implement
our “Next Level” strategy. In the 2020–2022 strategy
period, our goals were to pursue strong growth and
profitability improvement while bolstering Digia’s future
competitiveness by renewing our operations. To support
future growth, we deployed the Digia Business Engine,
our new management and ERP system. In addition to
technical system development, the project involved the
renewal of many operational models. In the strategy
period, we emphasised the potential of data utilisation
in services and business processes.As a company, we
have advanced to the next capability level to be an even
stronger partner for our customers in the development of
their business.
Digia seeks growth both organically and through acqui-
sitions. During the fiscal year, particularly strong growth
was seen in integration and API services, data analytics as
well as Microsoft Business Central and Oracle Netsuite ERP
system solutions. The net sales of the Digia Hub subcon-
tracting network also saw good growth. In this uncertain
environment, the large share of the company’s net sales
accounted for by continuous services was a strength,
bringing stability to our business.
Group structure
Digia operates in Finland – Helsinki, Joensuu, Jyväskylä,
Kuopio, Lahti, Oulu, Rauma, Tampere, Turku and Vaa-
sa – as well as in Stockholm and Malmö in Sweden, and
Hengelo in the Netherlands. Our headquarters are located
in Helsinki. On 31 December 2022, the Digia Group included
the parent company Digia Plc and its subsidiaries Digia
Finland Oy and its subsidiary Most Digital Sweden AB,
Avalon Oy, Productivity Leap Oy, Solasys Oy, Digia Swe-
den AB and Climber International AB, with its subsidiaries
Climber Finland Oy, Climber Benelux B.V. (80%), Climber
Denmark ApS, Climber Holding AB and its subsidiary
Climber AB.
Digia owns all of its subsidiaries in full with the exception
of Climber Benelux B.V., in which it has an 80 per cent
holding.
In the 2022 fiscal year, to clarify its group structure, Digia
started the merger processes of its subsidiaries Digia Hub
Oy and Most Digital Oy into Digia Finland Oy. The mergers
came into effect on 31 December 2022
Board of Directors’ Report 2022
Climber
International AB
Digia Sweden ABSolasys Oy
Digia Oyj
Productivity
Leap Oy
Climber Finland Oy
Climber Benelux B.V.
(80 %)
Climber Danmark
ApS
Digia Finland Oy Avalon Oy
Climber Holding AB
Climber AB
Most Digital
Sweden AB
Group structure
Digia Plc
3
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
Strategy and business development
2022 was the last year of Digia’s 2020-2022 strategy
period. Our “Next Level” strategy has revolved around
smart digitalisation and continuous change in digital
business. Digia enables its customers to take their digital
business to the next level as a controlled whole. Smart
and responsible data utilisation in both services and
business processes has comprised an important corner-
stone of strategy implementation. Refined information has
become even more important. The core of Digia’s service
offering is a smart and functional package of digital ser-
vices, business systems, integrations and analytics. Digia
takes care of the life cycle of solutions from development
to maintenance and also invests in the opportunities pro-
vided by data and analytics in its own operations.
In the strategy period 2020–2022, Digia sought annual
net sales growth exceeding 10 per cent including organic
growth and acquisitions. The target level of profitability
improvement has been an EBITA margin of 10 per cent by
the end of the strategy period.
The focus areas of Digia’s strategy to increase customer
benefits have been:
1) Smart data utilisation
We have brought data utilisation as a cross-cutting
theme for all Digia’s service areas from business sys-
tems to integrations and digital services. Data is a key
element in all of our customers’ operations.
2) Service business
We have deepened our customer relationships and
further bolstered our service business.
3) Productivity and scalability
We have developed our operational models and solu-
tions to improve our cost-competitiveness. An essential
modernisation project in the strategy period was the
renewal of our own business platform and management
system.
4) Cloud technologies
Cloud is the development and operating platform for
future services. We have further strengthened our cloud
service capabilities, taking into account both data secu-
rity and key public cloud platforms.
5) Valued employer
Personnel who are committed to the objectives of our
customers and constantly hone their skills are Digia’s
most important success factor. We have invested in a
workplace culture that bolsters a good employee expe-
rience and lifelong learning.
Strategy implementation in 2022
Our single most significant development project and out-
lay in 2022 was the deployment of our own business plat-
form and management system, the Digia Business Engine.
We sought to build a constantly evolving smart business
platform and management system that supports Digia’s
long-term competitiveness. Smart technology combined
with modern ways of working and culture enhances effi-
ciency in business processes and day-to-day operations.
In addition to overhauling our internal operations, we
made outlays on the development of our service offering
and acquisitions to ensure future growth. We carried out
three acquisitions during the fiscal year.
Digia’s strategy – Unlock Your Intelligence – and
financial objectives for 2023–2025
We combine technological possibilities and human capa-
bilities to build intelligent business, society and a sus-
tainable future. We ensure that our customers are at the
forefront of digital evolution, with an operational model
and rhythm that are right for them. We harness Digia’s
well-rounded expertise and comprehensive offering as
well as operational models that suit the customer’s needs.
We constantly renew our own operations and expertise,
and work with reliable partners. As a versatile company,
Digia can offer its employees meaningful job tasks and
new things to learn. We are building a responsible society
and Digia.
We implement our strategy by tapping into strengths of
Digia and the special expertise of our service areas. As
a unified company, we provide our customers with large
scale solutions and the expertise of our specialised service
areas for their individual needs. We build long-term cus-
tomer relationships and partnerships. Digia´s strengths:
• reliability and long-term customer relationships
• diverse and constantly evolving top expertise
• a versatile offering where solution connectivity enables
expanding customer relationships
• a strong financial position
• a business model in which continuous services yield
operational stability
• the ability to carry out successful acquisitions and grow
the acquirees as part of Digia.
4
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
Digia’s specialised service areas at the beginning of the
strategy period:
Digital Solutions: Solutions for growing business and
developing the customer experience.
Intelligent digital and value adding data solutions for
the customer’s different lifecycle phases. The solutions
range from the automation of digital marketing to service
design, customer relationship management and a variety
of application solutions.
Business Platforms: Solutions for business management
and stepping up efficiency.
Versatile and comprehensive industry-independent ERP
solutions. The solutions are based on partners’ platforms,
Digia’s own product solutions or a combination of these,
depending on the customer’s business requirements.
Financial Platforms: Digia’s product and service solu-
tions for the financial sector.
A comprehensive end-to-end system for fund man-
agement companies, asset managers and stockbrokers,
including system support for the loan and account
process management of financial companies. Service
models are tailored to the needs of customers: software
deliveries, application maintenance, SaaS solutions and
the partial or full outsourcing of core processes.
Managed Solutions: Solutions for boosting operational
efficiency, continuity and data availability.
Managed solution and outsourcing with a focus on service
continuity, development and security and resilience.
State-of-the-art application services, integrations and API
solutions and robotics platforms. Solutions for special
segments, such as security-critical customers.
Strategy growth paths
1. Specialised service areas: Precision solutions deliv-
ered using a model suitable for customers. We are
expanding our customer relationships into deeper
partnerships, harnessing all of Digia’s diverse offering
and expertise.
2. Large scale solutions : Extensive and demand-
ing solution packages in which we utilise all of
Digia’s extensive offering, from project deliveries to
outsourcing.
3. Acquisitions: Enriching our offering and venturing into
new markets and customer relationships.
4. International operations: Expanding our target mar-
ket and customer relationships.
Strategy enablers
A modern and attractive work community: Skilled
employees are the most important success factor for
Digia. Continuous growth is part of the personal and pro-
fessional development of each and every Digia employ-
ee. We invest in our learning-focused, professional and
relaxed culture. We want our employees to enjoy working
at Digia. Hybrid work, smart ways of working and tools
help us to succeed together.
Scalability and productivity: We invest in scalability and
productivity in both our own operations and the solutions
we provide for customers. In our own operations, produc-
tivity development is based on the continuous renewal
of working methods, intelligent technology platform that
supports them, and harnessing Digia-level synergies. In
customer solutions, we focus on increasing scalability in
our service and product solutions. We scale our expertise
through our Digia Hub network.
Responsibility: Responsibility is part of our day-to-day
operations. Our corporate responsibility is based on the
UN’s and the UN Global Compact principles and objectives.
The essential focus areas in our corporate responsibility will
remain the same. Our own operations are already carbon
neutral. We also see the green transition and solving of
sustainability challenges as business opportunities. We are
ambitiously seeking to do even better in all subareas of
responsibility (environment, people and trusted partner),
improving on our already good baseline situation.
Objectives for the 2023–2025 strategy period
Financial objectives:
Expanding our international business
Our aim is that international business will account for over 15
per cent of net sales at the end of the strategy period.
Sustainability objectives:
Environment carbon neutrality: CO
2
emissions -60%
(1
People
healthy, diverse and skilled personnel:
eNPS +35%
(2
Trusted partner
a visionary, reliable and secure part-
ner: NPS +25%
(2
1) CO
2
– the comparison year in emissions calculations is 2019, the target
value is for the end of 2025
2) eNPS (employee net promoter score) and NPS (customer net promoter
score) – the comparison year is 2022, the target value is for the end of 2025
Net sales growth:
over 10 per cent annually, including
organic and inorganic growth
Operating prot
(EBITA):
over 12 per cent of net sales at the end
of the strategy period
5
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
EUR 1,000 2022 2021 2020
Extent of business
Net sales 170,754 155,939 139,049
- net sales growth, % 9.5% 12.1% 5.5%
Gross capital expenditure
1
1,253 1,768 1,268
- % of net sales 0.7% 1.1% 0.9%
Number of personnel, 31 Dec 1,426 1,339 1,258
Average number of personnel 1,399 1,334 1,261
Profitability
Operating profit plus purchase price
allocation amortisation and costs
(EBITA)
15,733 17,739 16,000
- % of net sale
2
9.2% 11.4% 11.5%
Operating profit (EBIT) 12,727 14,680 14,102
- % of net sales 7.5% 9.4% 10.1%
Net profit 9,571 11,772 10,627
- % of net sales 5.6% 7.5 % 7.6%
Return on equity, % 13.8% 18.3% 18.7%
Return on investment, % 12.9% 16.3% 16,5%
Financing and financial standing
Interest-bearing net liabilities, 17,608 10,663 10,531
Net gearing, % 24.8% 15.7% 17.3%
Equity ratio, % 45.9% 48.0% 50.7%
Cash flow from operations 14,252 16,648 23,589
Dividends (paid) 4,478 4,002 2,672
Earnings per share (EPS), EUR,
undiluted
3
0.36 0.44 0.40
Earnings per share (EPS), EUR,
diluted
3
0.36 0.44 0.39
EUR 1,000 2022 2021 2020
Equity/share, EUR
4
2.65 2.54 2.26
Equity/share, EUR 2.65 2.54 2.26
Dividend per share (2022
proposal), EUR
0.17 0.17 0.15
Dividend payout ratio 47.2% 38.5% 37.5%
Effective dividend yield - 2.5% 2.0%
Price/earnings ratio (P/E) (P/E)
3
15.86 16.00 18.80
Lowest share price 5.62 6.30 3.30
Highest share price 7.80 9.46 7.80
Average share price 6.67 7.51 5.47
Market capitalisation 153,163 188,839 201,714
Trading volume, shares 3,683,503 5,558,726 5,546,624
Trading volume,% 13.2% 20.8% 20.7%
As alternative performance measures, the Group reports
operating profit before purchase price allocation amorti-
sation and costs (EBITA), operating profit (EBIT), return on
equity, return on investment, net gearing and equity ratio,
which are not defined in IFRS. The company presents the
alternative performance measures to describe the finan-
cial situation and development of business operations,
as it considers this information necessary for investors.
Formulas for the key figures are presented in Note 8.1 and
reconciliations in Note 8.2.
Key indicators
Unless otherwise stated, the comparison figures provided
in parentheses always refer to the corresponding period
of the previous year.
Major events in 2022
• Net sales: EUR 170.8 (155.9) million, up 9.5 per cent
• Operating profit (EBITA): EUR 15.7 (17.7) million, down 11.3
per cent
• EBITA margin: 9.2 (11.4) per cent of net sales
• Deployment of the Digia Business Engine
• Digia acquired the entire share capital of MOST Digi-
tal on 2 May 2022. With this acquisition, Digia grew its
scalable services and bolstered its expertise and growth
in the integration and API business with automation
platform services.
• Digia acquired the entire share capital of Productivity
Leap on 1 July 2022. With the acquisition, Digia strength-
ened its expertise in knowledge management, which is
in increasingly high demand, and its ability to serve its
customers in an ever more comprehensive way, par-
ticularly in the social welfare and healthcare sector.
• Digia acquired the entire share capital of Avalon Oy on
1 October 2022. With this acquisition, Digia bolstered its
expertise in the development of customer experiences
and digital marketing.
• Earnings per share: EUR 0.36 (0.44)
• Board of Directors’ proposal for the distribution of profit
to the Annual General Meeting: The Board of Directors
will propose to the Annual General Meeting that a divi-
dend of EUR 0.17 per share be paid (EUR 0.17 per share in
2021).
1 Gross capital expenditure includes gross investments in tangible and
intangible assets.
2 Foreign exchange gains and losses from operations are included in the
corresponding items above EBIT. Purchase price allocation amortisation
includes the amortisation on the transaction prices allocated to customer
contracts and other intangible assets in business combinations.
3 The dilution-adjusted key figures account for the effect of the share-
based incentive scheme for management.
4 Shareholders’ equity divided by the undiluted number of shares on the
closing date.
6
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
Profit guidance for 2023
Digia’s profit guidance for 2023: Digia’s net sales (EUR
170.8 million in 2022) and operating profit (EBITA) (EUR
15.7 million in 2022) will increase compared to 2022.
Markets, business environment and
Digia’s market position
Digia’s main market area has traditionally been Finland,
but the acquisition of Climber in 2021 opened up new
opportunities to expand the company’s international
operations. One of the objectives set in the strategy for
the 2023–2025 period, published on 10 February 2023, is to
moderately increase the share accounted for by interna-
tional operations during the period.
Digia expects that the IT service market will grow during
the strategy period. Digitalisation is a strong underlying
long-term trend. Increasing automation and intelligence
in solutions represent the next level in digital evolution. We
see the following trends:
• User-centred and secure solutions are gaining further
ground. Inspiring user experience of applications is of
paramount importance
• Level of automation and intelligence is growing.
This is the trend in digital evolution. It is trending towards
automated and AI-assisted or controlled processes and
services. These are based on reliable data, its secure
availability, and the organisation’s ability to refine and
utilise it.
• Instead of isolated solutions, the renewal of entire
businesses is being considered. Application and IT
system are becoming more extensive and complex. The
continuity of the operations of organisations is critical
–and this emphasises the interoperability, reliability
and security of the system as a whole. When an over-
view and roadmap of the business as a whole have
been drafted, system modernisation can be carried out
in phases.
• Business is becoming networked – and so, too, are
applications and IT systems. Secure and reliable
integrations are at the heart of digital evolution. They
enable the functionality of application packages and
data availability. Integrations are an enabler of networ-
ked and smart business.
• Sustainable development and the green transition are
megatrends. The utilisation of digital technologies and
data is key to solving sustainability challenges.
Acquisitions and business combinations
Digia acquired the entire share capital of MOST Digital
on 2 May 2022. The MOST Digital Group includes MOST
Digital Oy and MOST Digital Sweden AB. With this acqui-
sition, Digia grew its scalable services and bolstered its
expertise and growth in the integration and API business
with automation platform services. MOST Digital had net
sales of around EUR 2.8 million in the fiscal year ending in
December 2021. MOST Digital’s figures have been consoli-
dated with the Digia Group as from the beginning of May
2022.
Digia acquired the entire share capital of Productivity
Leap Oy on 1 July 2022. With the acquisition, Digia
strengthened its expertise in knowledge management,
which is in increasingly high demand, and its ability to
serve its customers in an ever more comprehensive way,
particularly in the social welfare and healthcare sector.
Productivity Leap’s net sales for the fiscal period ending
December 2021 amounted to approximately EUR 5.5
million. Productivity Leap’s figures have been consolidated
with the Digia Group from the beginning of July 2022.
Digia acquired the entire share capital of Avalon Oy on
1 October 2022. With this acquisition, Digia bolstered its
expertise in the development of customer experiences
and digital marketing. Avalon had net sales of around
EUR 2.4 million in the fiscal year ending in December 2021.
Avalon’s figures have been consolidated with the Digia
Group from the beginning of October 2022.
Calculations for the allocation of the purchase prices
have been made, and the impact of the acquisitions on
Digia’s figures is reported in the tables section.
Financial review 2022
Net sales
Digia’s consolidated net sales for the fiscal year were
EUR 170.8 (155.9) million, up 9.5 per cent on the previous
year. Net sales increased especially in Integration and API
solutions, data-driven solutions, and Microsoft Business
Central and Oracle Netsuite ERP systems. Growth was
accelerated by acquisitions. Demand for Digia’s own key
products, Digia Envision and Digia Financial Systems,
remained steady throughout the fiscal year.
The service and maintenance business accounted for
60.3 (67.1) per cent and the project business for 39.7
(32.9) per cent of net sales. The product business
accounted for 12.9 (13.4) per cent of the company’s net
sales.
Profit and profitability
Digia’s operating profit (EBITA) for the fiscal year was EUR
15.7 (17.7) million with an operating margin (EBITA %) of
9.2 (11.4) per cent. During the fiscal year, profitability was
weakened by the costs of the deployment of the Digia
Business Engine. The project had a cost impact of EUR
-2.8 million during the fiscal period.
Earnings before taxes were EUR 12.0 (14.6) million, with
earnings after taxes totalling EUR 9.6 (11.8) million.
Earnings per share were EUR 0.36 (0.44). Net financial
expenses amounted to EUR -0.7 (-0.1) million.
7
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
Financing, cash flow and expenditure
At the end of the fiscal year on 31 December 2022, Digia’s
balance sheet total stood at EUR 160.1 (143.0) million and
its equity ratio at 45.9 (48.0) per cent. Balance sheet
growth was largely due to acquisitions during the fiscal
year. Net gearing was 24.8 (15.7) per cent.
At the end of the fiscal year on 31 December 2022, Digia
had EUR 31.9 (28.8) million in interest-bearing liabilities.
Interest-bearing liabilities consisted of EUR 17.3 million in
long-term and EUR 8.2 million in short-term loans from
financial institutions, and EUR 6.4 million in lease liabilities.
In the 2022 fiscal year, cash flow from operations totalled
EUR 14.3 (16.6) million. Cash flow from investments came
to EUR -11.8 (-10.1) million. Acquisitions of subsidiaries are
included in cash flow from investments. Cash flow from
financing was EUR -6.1 (-4.8) million.
Total investments in tangible assets amounted to EUR
3.1 (1.3) million during the 2022 fiscal year. The return on
investment (ROI) was 12.9 (16.3) per cent, and return on
equity (ROE) was 13.8 (18.3) per cent.
Report on the extent of research and
development
Digia constantly invests in enhancing its long-term
competitiveness. Research and development expenses
totalled EUR 5.5 million in the 2022 fiscal year (2021: 6.0;
2020: 6.0), representing 3.2 per cent of net sales (2021:
3.9%; 2020: 4.3%). All research and development expenses
have been recognised in the result. The main focus of R&D
remained on the development of ERP systems offered
to customers (Digia Envision and ERPs for the financial
and logistics sectors). We also developed the Digia Iiris
monitoring solution to meet the 24/7 service needs of our
customers.
More information about Digia’s services and solutions can
be found on the company’s website: www.digia.com/en/
services.
Human resources and management
At the end of the period, the total number of Group
personnel was 1,426 (1,339), representing an increase of
87 employees or 6.5 per cent since the end of the 2021
fiscal period. The average number of employees was 1,399
(1,334), an increase of 65 employees, or 4.9 per cent, on
the 2021 average. Pasi Ropponen, Senior Vice President,
Sales and Marketing joined Digia’s Management Team in
spring 2022.
Digia employees by location:
31 Dec 2022
31 Dec
2021
Change, no.
of employees
Helsinki 722 726 -4
Tampere 275 248 27
Jyväskylä 171 172 -1
Turku 76 67 9
Stockholm, Sweden 53 50 3
Joensuu 29 - 29
Oulu 22 7 15
Rauma 22 24 -2
Lahti 18 15 3
Malmö, Sweden 13 14 -1
Vaasa 10 10 0
Kuopio 8 - 8
Hengelo, The Netherlands 7 6 1
Total 1,426 1,339 87
Share capital and shares
On 31 December 2022, the number of Digia Plc shares
totalled 26,823,723. The company had a total of 8,315
shareholders. Foreign shareholders accounted for 0.4
per cent of all Digia Plc shareholders and they held 0.1
per cent of all shares and votes. Nominee-registered
shareholders accounted for 0.8 per cent of all Digia Plc
shareholders and they held 0.9 per cent of all shares and
votes.
The weighted average number of shares during the ac-
counting period, adjusted for share issues, was 26,447,794.
The diluted weighted average number of shares during
the period was 26,439,167. The number of outstanding
shares at the end of the review period was 26,555,897.
Ten largest shareholders on 31 December 2022
Shareholder
Percentage of shares
and votes
Ingman Development Oy Ab 29.5%
Ilmarinen Mutual Pension Insurance Company 12.5%
Etola Oy 10.9%
Varma Mutual Pension Insurance Company 4.6%
Matti Savolainen 3.3%
Rausanne Oy 0.9%
Varelius Juha Pekka 0.8%
Kohonen Jorma 0.8%
Polvi Jere 0.5%
EAM Digia Holding Oy 0.5%
Shareholding by number of shares held on 31
December 2022
Number of shares
Percentage of
shareholders
Percentage of shares
and votes
1–100 34.3% 0.5%
101–500 36.9% 3.0%
501–1,000 13.5% 3.2%
1,001–5,000 12.4% 7.9%
5,001–10,000 1.3% 3.0%
10,001–50,000 1.1% 7.2%
50,001–100,000 0.2% 4.5%
100,001–500,000 0.2% 7.8%
500,001– 0.1% 63.1%
100% 100%
8
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
Shareholding by sector on 31 December 2022
Percentage of
holdings
Percentage of
shares and votes
Companies 3.4% 45.3%
Households 95.6% 30.7%
Public-sector organisations 0.0% 17.2%
Financial and insurance
institutions
0.3% 5.6%
Non-profit associations 0.2% 0.3%
Foreign holding 0.4% 0.9%
100.0% 100.0%
Digia Plc held a total of 129,604 treasury shares at the end
of 31 December 2022. The company held about 0.5 per
cent of its capital stock.
At the end of the period, a total of 138,222 company
shares, previously funded by Digia for use in the incentive
system for key personnel and owned by EAM Digia Holding
Oy, remained undistributed.
Up-to-date information about the company’s major
shareholders and the distribution of their shareholdings
can be found on Digia’s website: www.digia.com/en/
investors/shareholders.
Share-based payments
Share-based bonuses
On 6 February 2020, Digia Plc’s Board of Directors decided
to establish a long-term share-based incentive scheme.
The Board will confirm the target group of the long-term
incentive scheme at a later date. In principle, the target
group consists of the CEO and the company’s senior
executives. The scheme is designed to align the goals of
the company’s shareholders and management in order to
increase the company’s value, and to commit executive
management to the company and its long-term objecti-
ves.
This long-term incentive scheme covers the calendar
years 2020–2022. It offers its participants the chance to
earn company shares if the targets set by the Board of
Directors for the three-year bonus period are met.
The targets are based on the company’s net sales and
total shareholder return (TSR). The earnings period for the
net sales and TSR indicators is three years (2020–2022),
and the targets for both indicators have been set for the
final date of the earnings period. During the bonus period,
the company’s CEO and other scheme participants are
entitled to a bonus equivalent to a maximum of 525,000
new Digia Plc shares. If the terms are met, the bonuses
for both indicators based on the new scheme will be paid
at the end of the reward period in spring 2023. Rewards
under the scheme will be paid as a 50/50 combination of
shares and cash. The cash component of the bonus will
primarily be used to cover taxes and other comparable
costs arising from the scheme.
As a rule, the bonus will not be paid if a member resigns
or if a member’s employment or post is terminated prior
to the bonus payment date specified in the incentive
scheme. Under certain conditions, the Board has the
option to decide on possible bonuses in accordance with
the pro-rata principle.
EUR 0.06 million in expenses were incurred by the scheme
during the 2022 fiscal year, and EUR 0.39 million in the
previous fiscal year.
Digia has an agreement with Evli Awards Management
Ltd for the coordination of the company’s share-based
incentive schemes, their associated share management,
and the payment of incentives to individuals in accordan-
ce with the terms and conditions of the schemes.
Board of Directors No. of shares
Robert Ingman, Chair of the Board 7,930,000
Martti Ala-Härkönen 20,000
Santtu Elsinen 0
Päivi Hokkanen 10,833
Sari Leppänen 0
Seppo Ruotsalainen, Vice Chair 6,000
Outi Taivainen 872
Timo Levoranta, President and CEO 106,179
At year-end, the CEO and members of the Board of Dire-
ctors held a total of 8,073,884 of the company’s shares,
representing 30.10 per cent of all shares and votes.
9
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
January–
December 2022
Trading volume,
shares
Value
total, EUR
High, EUR Low,
EUR
Trade-weighted
average price, EUR
Latest, EUR
DIGIA 3,683,503 24,563,248 7.80 5.62 6.67 5.71
31.12.2022 31.12.2021
Market capitalisation, EUR 153,163,458 188,839,010
Shareholders 8,315 8,639
Flagging notifications
On 6 October 2022, Digia Plc received notification of
changes in the company’s ownership in accordance with
Chapter 9 Section 10 of the Finnish Securities Market Act
whereby the holding of Etola Oy, a company under the
control of Erkki Etola, had exceeded the flagging limit of 10
per cent of Digia’s shares and votes.
According to the notification, on 6 October 2022, the
company controlled by Erkki Etola held 2,930,495 Digia Plc
shares, corresponding to 10.93 per cent of all Digia shares
and votes. On the date of the notification, Digia Plc’s share
capital consisted of 26,823,723 shares.
Corporate governance
Annual General Meeting 2022
Digia Plc’s Annual General Meeting (AGM) was held on 21
March 2022. The AGM adopted the financial statements
for 2021, released the Board members and the CEO from
liability, determined Board emoluments and auditor fees,
set the number of Board members at six, and elected the
company’s Board of Directors for a new term.
With regard to profit distribution for 2021, the AGM appro-
ved the Board’s proposal to pay a dividend of EUR 0.17 per
share to all shareholders listed in the shareholder register
maintained by Euroclear Finland Ltd on the reconciliation
date of 23 March 2022. The dividend payment date was
30 March 2022.
The AGM granted the following authorisations to the
Board
Authorising the Board of Directors to decide on
buying back own shares and/or accepting them
as collateral
The Annual General Meeting authorised the Board to deci-
de on the acquisition and/or pledging of treasury shares
with the following terms and conditions:
A maximum total of 2,000,000 shares may be bought
back and/or pledged in one or more instalments. The
proposed number is under 10 per cent of the company’s
total number of shares. Only unrestricted equity may be
used to buy back treasury shares. The Board will decide
on how these shares are to be acquired. Treasury shares
may be bought back in disproportion to shareholders’
holdings (directed acquisition). This authorisation also
includes the acquisition of shares through public trading
on Nasdaq OMX Helsinki in accordance with the rules and
instructions of Nasdaq OMX Helsinki and Euroclear Finland
Ltd, or through offers made to shareholders. Shares may
be acquired in order to improve the company’s capital
structure, to fund or complete acquisitions or other
business transactions, to offer share-based incentive
schemes, to sell on, or to be annulled. The shares must
be acquired at the market price in public trading. The
minimum price of the shares to be acquired shall be the
lowest quotation in public trading while the authorisation
is in force and, correspondingly, the maximum price
shall be the highest quotation in public trading while the
authorisation is in force. The Board of Directors is otherwi-
se authorised to decide on all terms relating to share
buyback. This authorisation will supersede the authorisati-
on granted by the AGM of 17 March 2021 and is valid for 18
months, that is, until 21 September 2023.
Authorising the Board of Directors to decide on a
share issue and granting of special rights
The AGM authorised the Board to decide on an ordinary
or bonus issue of shares and the granting of special rights
(as defined in Section 1, Chapter 10 of the Limited Liability
Companies Act) in one or more instalments, as follows:
This issue may total a maximum of 2,500,000 shares.
The proposed number is under 10 per cent of the
company’s total number of shares. The authorisation
applies to both new shares and treasury shares held
by the company. The authorisation may be used
Trading in shares during the fiscal year
Digia Plc’s share is listed on Nasdaq Helsinki Ltd in the
Technology sector. The company’s short name is DIGIA.
Summary of trading on Nasdaq Helsinki,
1 Jan – 31 Dec 2022
10
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
to fund or complete acquisitions or other business
transactions, for offering share-based incentive schemes,
to develop the company’s capital structure, or for other
purposes decided by the Board. It is proposed that this
authorisation should include the right for the Board
to decide on all terms related to the share issue or
special rights, including the subscription price, payment
of the subscription price in cash or (partly or wholly)
in capital contributed in kind or its being written off
against the subscriber’s receivables, and its recognition
in the company’s balance sheet. This authorisation will
supersede the authorisation granted by the AGM of 17
March 2021 and is valid for 18 months, that is, until 21
September 2023.
More information about the AGM’s decisions is available
at digia.com/en/investors/governance/annual-general-
meeting/agm-2022.
Board of Directors and Auditor
Digia Plc’s Annual General Meeting (AGM) of 21 March
2022 re-elected Martti Ala-Härkönen, Santtu Elsinen,
Robert Ingman, Seppo Ruotsalainen and Outi Taivainen as
members of the Board. Sari Leppänen was elected to the
Board as a new member. At its organisational meeting
after the AGM, the Board of Directors elected Robert
Ingman as Chair and Seppo Ruotsalainen as Vice Chair of
the Board.
Ernst & Young Oy, Authorised Public Accountants, are
Digia’s auditors, with Authorised Public Accountant Terhi
Mäkinen as the chief auditor.
Committees of the Board of Directors
During the 2022 fiscal year, Digia’s Board of Directors had
three (3) committees: the Audit Committee, the Com-
pensation Committee, and the Nomination Committee.
• The Audit Committee consisted of Seppo Ruotsalainen
(Chair), Santtu Elsinen and Martti Ala-Härkönen.
• The Compensation Committee consisted of Outi Taivai-
nen (Chair), Robert Ingman and Sari Leppänen.
• The Nomination Committee consisted of Martti Ala-Här-
könen (Chair), Robert Ingman and Seppo Ruotsalainen.
CEO and the Management Team
Digia Plc’s CEO is Timo Levoranta, who also serves as the
Chair of the Management Team.
On 31 December 2022, Digia’s Management Team
consisted of:
• Timo Levoranta, President and CEO
• Pia Huhdanmäki, Senior Vice President, HR, Culture &
Sustainability
• Juhana Juppo, CTO and Senior Vice President, Horizontal
Services
• Mika Kervinen, General Counsel
• Jukka Kotro, Senior Vice President, Business Platforms
and acting SVP, Sales and Marketing
• Tuomo Niemi, Senior Vice President, Financial Platforms
and M&As
• Sami Paihonen, Senior Vice President, Intelligent
Solutions
• Pasi Ropponen, Senior Vice President, Sales and
Marketing
• Kristiina Simola, Chief Financial Officer (CFO)
• Janne Tuominen, Senior Vice President, Managed Digital
Core
You can read more about Digia’s Management Team on
the company’s website: www.digia.com/en/investors/
governance/ceo-and-management.
Events after the balance sheet date
There have been no major events since the balance sheet
date.
Risks and uncertainties
Risks are classified as strategic and operational risks,
cyclical, hazard, and data security and protection risks,
cyberthreat risks and risks related to customer deliveries,
under which the impacts of global pandemics and
economic cycles, for instance, are described. The risk
management plan describes the impacts of risks and
their mitigation. Risk mitigation is monitored continuously
and an up-to-date risk assessment is reported to the
company’s Audit Committee every six months. Digia’s risk
management has been implemented with the Granite IS
risk management solution.
The company’s strategic risks and uncertainty factors
relate to increasing competition and potential significant
changes in the company’s operating environment and
service areas.
In operational risks, general economic trends and chan-
ges in customers’ operating environment and financial
position may have an unfavourable impact on the
company’s business, financial position and result through
slower decision-making and the postponement or can-
cellation of IT investments. According to the company’s
estimate, the uncertainty caused by the war and eco-
nomic cycles may have a negative impact on business
development.
Implementing the growth strategy places demands on
both the organisation and its management. The compa-
ny’s ability to recruit, maintain and develop the correct
competence – and also to correctly time the offering
to meet demand – will play a vital role. In line with its
strategy, Digia is also seeking growth through acquisitions.
11
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
However, Digia cannot be certain of locating suitable
companies for acquisition or of successfully integrating
them.
Operational and cyclical risks largely involve short-term
demand in the operating environment. If demand falls
sharply, the price level might also decline. Although the
pricing models used in the service business balance out
cyclical business, products provided via SaaS (Software
as a Service) involve longer-term revenue streams
compared to the one-off payment of product licenses. In
an inflationary environment, it is not certain how quickly
and to what extent the rise in costs will be passed on to
market prices.
Major customer projects – and fixed-price projects in
particular – involve both business opportunities and risks.
As customer projects increase in size, the risks associated
with profitability management also grow, and there is a
greater need to manage extensive contract and delivery
packages. Large customer projects typically involve deli-
very-related sanctions whose materialisation poses a risk.
Risks related to customer receivables are also growing.
Hazard risks are covered by insurance. Property and
business interruption insurance policies have been taken
out to protect against any property and business inter-
ruption risks.
Data security and protection risks comprise a significant
risk area in the company’s business operations, as orga-
nisations have more and more information that is critical
to their operations. The quality and quantity of threats to
data security and protection have risen significantly du-
ring the past year. The company identifies, manages and
prevents both internal and external threats, and imple-
ments a regular ISO 27001-certified risk management
process based on best practices in handling data security
and protection risks. Risks are identified and their impact
and significance are analysed. The risk level is reduced
with appropriate measures where possible. Operational
response and the handling of potential threats have been
planned, rehearsed and tested in practice. The risk status
is reported on regularly and reviewed at the management
level appropriate to the situation. The company’s Board of
Directors regularly monitors the status and development
of risks to data security and protection. On a practical
level, it is vital to continuously train the company’s emp-
loyees and proactively communicate about data security
and protection issues both in-house and to partners and
customers as necessary. The company works in close
cooperation with a variety of data security and protection
authorities and networks. Physical personnel safety issues
are also managed by means of practices similar to the
data security and protection mechanisms.
Data security and protection risks largely involve
technology and personnel risks. Significant risk factors
include, for instance, risks in high-security projects and
the subcontracting chain – new data security controls
have been implemented to mitigate them. Data security
and protection risks in software engineering are managed
with controls added to production processes. Due to the
nature of its operations, the company is the target of
hostile influence. Digia has engaged in the management
of these risks for a long time.
The war in Ukraine and the energy crisis that began
during the fiscal year impact the company’s risk map
in many ways. With respect to energy availability, the
company has identified the key project risks in different
business functions and drafted alternative plans to
mitigate risks in exceptional circumstances. In addition,
the company launched numerous additional projects in
2022 to reduce the risks posed by war and other hostile
operations against the company.
During the fiscal year, Digia assessed the human rights
risks of its operations and their impacts. This assessment
was carried out in line with the UN Guiding Principles on
Business and Human Rights. In Digia’s view, its own ope-
rations do not involve significant risks related to human
rights, but it is keeping a close eye on these issues.
Board’s dividend proposal
According to the balance sheet dated 31 December 2022,
Digia Plc’s distributable shareholders’ equity was EUR
64,495,362.61, of which EUR 7,569,610.09 was profit for the
fiscal year. At the Annual General Meeting (AGM), the
Board of Directors will propose that a dividend of EUR 0.17
per share be paid according to the confirmed balance
sheet for the fiscal year ending 31 December 2022. Share-
holders listed in the shareholders’ register maintained by
Euroclear Finland Oy on the dividend reconciliation date,
27 March 2023, will be eligible for the payment of dividend.
Dividends will be paid on 3 April 2023.
12
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
Digia reports on responsibility to external stakeholders in
connection with its annual reporting. The report complies
with the requirements set for disclosure of non-financial
information in accounting legislation.
More detailed information on Digia’s responsibility and
sustainability is presented in Digia’s Sustainability Report
2022, which will be published on 1 March 2023. Digia’s
sustainability indicators, such as key environmental and
personnel figures, are reported for the same period as our
financial indicators: 1 January to 31 December 2022.
In this report on non-financial information, the following
topics are dealt with in compliance with the requirements
of the Accounting Act:
Accounting Act requirement Location in this report
Description of business model Business model
Environmental issues Sustainable digital life
HR matters and social
responsibility
Sustainable digital value, Sustainable
digital expertise, Sustainable digital
life
Human rights Sustainable digital value, Sustainable
digital life
Anti-corruption measures Sustainable digital life
Business model
Digia is both a service company and a turnkey provider
of smart digital solutions. We manage the entire lifecycle
of our services from implementation to maintenance and
further development. We provide our customers with a
service package covering mobile and online services,
Non-financial reporting 2022
data platforms and knowledge-based management,
integrations and APIs, as well as business core systems
including high-security solutions.We provide mainte-
nance services for all our solutions to ensure that our
customers can operate their business-critical systems
and services around the clock.Strong customer relations,
professionalism, product and service packages, a part-
nership network and responsibility form the basis for our
operations.
Principles and management of
responsibility at Digia
Digia’s operations are governed by the Finnish Limited
Liability Companies Act, regulations concerning publicly
listed companies, the rules and regulations of Nasdaq
Helsinki Oy, and Digia’s Articles of Association. Our op-
erations are also guided by the policies and operating
principles approved by the Board of Directors or Group
Management Team.
Our responsibility is based on our Code of Conduct, which
is approved by the Board of Directors, and the UN Sustain-
able Development Goals. We are committed to respecting
human rights in accordance with the UN’s Universal
Declaration of Human Rights, the UN Global Compact, and
the International Labour Organisation’s (ILO) Fundamental
Principles and Rights at Work. At the end of 2022, we
joined the UN Global Compact and committed to the
principles of the initiative.
However, in our changing business environment, respon-
sibility is based above all else on the continual monitoring
and improvement of our business environment and
operations. We closely monitor Finnish and international
corporate responsibility regulation and develop our
corporate responsibility proactively.
The CEO is responsible for Digia’s corporate responsi-
bility, while the Senior Vice President, HR, Culture and
Sustainability is in charge of responsibility reporting. The
corporate responsibility management team heads up
operational responsibility efforts, coordinated by focus
area. The Head of Sustainability chairs the corporate
responsibility management team, and the Senior Vice
President, HR, Culture and Sustainability is responsible
to the Group Management Team. The key indicators for
corporate responsibility are regularly monitored in the
management teams. Digia’s corporate responsibility
targets and indicators are approved by both the Group
Management Team and the Board of Directors.
Stakeholders
When identifying the material aspects of responsibility
for each of our stakeholders, we have taken into account
the most significant economic, social and environmental
impacts of our operations and services, as well as other
significant trends affecting the ICT sector. We build up
an understanding of materialities and stakeholders’
expectations through a combination of routine manage-
ment and regular meetings, surveys and analyses. Our
most important stakeholders are personnel, customers,
investors, society and authorities, educational institutions
and universities, partners, subcontractors, the media, and
other operators in our sector.
13
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
Policies and guidelines
Planet
Sustainability
areas
Policies
Corporate
Governance
Climate roadmap: responsible
procurement and hybrid work
model
Circular economy practices:
such as IT hardware purchases/
leasing,
furniture purchases/leasing
Resource-wise code: Green Ict,
Green Coding
Code of Conduct, Anti-corruption and Anti-bribery Policy, Disclosure Policy, Ethical Principles for Using Articial
Intelligence, Cultural Principles, Environmental Policy, Climate Roadmap, Corporate Network Policy, Data Back
-
up Principles and Policy, Guidelines for equality and non-discrimination, Green Code Guidelines
ISO 9001 quality management system, ISO 27001 information security management system
People
Cultural principles
A culture of mutual respect
Equality and non-discrimination
Early intervention
Salary and remuneration
manual
Trusted Partner
Business ethics and rules –
Code of Conduct
Digital security: data security
and protection
Responsible data
Customer experience
Whistleblowing on issues concerning ethical principles: Whistleblower channel
Support for handling the situation from the occupational safety and health, HR and Legal
organisations and shop stewards
Policies and processes for sustainable operations
Digia’s corporate responsibility efforts are guided
by the following key policies and principles:
14
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
Sustainable digital value for our customers while building a functional society
Topic Objective UN Sustainable Development Goals Key indicators 2022
Solutions that promote the responsibility of
our customers
Improving the responsible use of data
Growth in data protection impacts and
security analyses in customer orders, %*
46%
Activity in the ethical utilisation of data,
examples*
Examples in Digia’s Sustainability Report
Improving availability and user-friendliness
of services
Growth in accessibility design and testing, % 40%
Promoting the sustainable digitalisation of
society
Solutions that enhance environmental and
social responsibility for society and our
customers
Description of the solutions and their
sustainable development impacts
Examples in Digia’s Sustainability Report
Focus areas, objectives and key indicators of Digia’s corporate responsibility
Sustainable digital expertise for both our personnel and Finland as a whole
Topic Objective UN Sustainable Development Goals Key indicators 2022
A learning community for top digital experts
The value of our personnel’s expertise
increases during their term of employment
Growth in certified expertise in the selected
area, % (2022: cloud)*
15%
Employees for whom a learning target has
been set, %
Not known due to system change
Bolstering technological expertise in Finland
We train new digital experts every year, to
meet both our own needs and those of the
sector as a whole
Total annual number of participants in
external and internal training programmes
as well as trainees and students working on
theses*
55
For each strategy period, we publish an updated
sustainability programme that defines the focal points
of our corporate responsibility, and their associated
targets and indicators. The key sustainability topics,
objectives, indicators and actual figures for the strategy
period 2020–2022 are presented in the table below. As
we are just entering a new period, we have drawn up a
new sustainability programme that is presented in the
Sustainability Report (publication on 1 March 2023).
15
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
Sustainable digital life in our own work with respect for the environment
Topic Objective UN Sustainable Development Goals Key indicators 2022
Employee well-being and diversity
Among the best in the sector in
occupational wellbeing
Personnel satisfaction with team spirit and
work-life balance (0–100)*
Satisfaction with team spirit 74
Satisfaction with work-life balance 82
Sick leave (days/person, average)*
7.1
Digia fosters diversity and inclusion at
different levels of the organisation
Age and gender distribution of the
Management Team, Board of Directors,
supervisors and personnel***
See section
Gender and age breakdown of
management and personnel in 2022
% of supervisors who have undergone
training to promote diversity and inclusion *
70%
Carbon-neutral Digia Reducing CO
2
emissions CO
2
emissions**
See the section “Towards a carbon-neutral
value chain”
Ethical operating culture
Entire organisation has adopted ethical
ways of working
% of employees who have completed Code
of Conduct training*
68%
* The entire Group, excluding Climber International AB and its subsidiaries, and Productivity Leap Oy and Avalon Oy, which became part of Digia Group in late 2022.
** The Group’s locations in Finland, excluding Productivity Leap Oy and Avalon Oy, which became part of Digia Group in late 2022.
*** Entire Group.
16
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
Sustainable digital value for our customers
while building a functional society
Our key sustainability topics in the “sustainable digital
value” focus area are solutions that promote the respon-
sibility of our customers and the sustainable digitalisation
of society. We help our customers to utilise data in a
responsible manner, to improve the availability and
usability of their services, and to solve sustainability
challenges, for instance.
We seek to implement our customer solutions so that they
promote our customers’ responsibility. We aim to improve
the responsible utilisation of data. We report on the
annual growth in data protection impacts and security
analyses in customer orders (%). In 2022, analyses saw
growth of 46%.
In late 2022, we received the ISO 27001 international infor-
mation security certificate. ISO 27001 is an international
information security standard that provides organisations
with a security management framework for implementing,
administering and continuously improving information
security management.
We maintain a high level of data protection and security
for example by training our personnel, administrative and
technical controls, audits, and continually developing
processes related to data protection and security. Each
Digia employee familiarises themselves with data security
and protection procedures as part of their induction. Digia
uses a data security and data protection training pack-
age. This training must be retaken every year, not only by
Digia personnel but also any subcontractors working on
Digia’s premises.
In addition, we aim to improve the accessibility and
user-friendliness of services. At the annual level, we
monitor and report on the growth in accessibility design
and testing. In 2022, growth in accessibility design and
testing amounted to 40%.
We want to be a pioneer of sustainable digitalisation
in society
Digia aims to act as a technological pioneer whose
products and services promote the development of
society and the wellbeing of the environment. We want to
demonstrate that digital solutions can be produced and
used in an ecologically sustainable manner and that they
also have a significant effect on society.
• We create management and data utilisation solutions
that promote sustainability.
• We undertake to promote material and energy-efficient
low-carbon digital infrastructure and the circular
economy.
• We promote the ethical and secure use of data.
• We promote the long-term use of ICT equipment and
the circulation of materials in our own work and in
customer projects.
• We increase our positive handprint and strive to deliver
measurable benefits to our customers in all areas of
sustainable development.
Sustainable digital expertise for both our
personnel and Finland as a whole
The most important responsibility themes in the “sustain-
able digital expertise” focus area are providing a learning
community for top digital experts and bolstering techno-
logical expertise in Finland.
A learning community for top digital experts
Changes in the operating environment and society affect
what kinds of expertise are required. We want to be a
team of top professionals who are always learning and
are both skilled and flexible. We create opportunities
for employees to pursue career paths and personal
development and to maintain their competence at a
competitive level. For instance, Digia has active workplace
tribes, whose major task is to develop the competence
of the tribe members through peer activities and provide
recommendations about company-level technology
policies in the specialist area of the tribe.
Our goal is to increase the value of our personnel’s exper-
tise during their term of employment. At the annual level,
we monitor and report on the percentage of employees
for whom a personal competence target has been set. In
2022, a competence target had been set for 80% of Digia
employees who had been employed by the company
since the beginning of the year.
To verify the growth in the expertise of Digia employees,
we monitor and report on the growth in certified expertise
in selected areas. Although on-the-job learning is the
main focus of our competence development, a variety of
training programmes and certifications also have their
value. An average of 72.4 hours of training per person
were spent on competence development in 2022.
Bolstering technological expertise in Finland
Digia is a significant employer in the Finnish IT sector. This
also gives us a sense of responsibility for strengthening
technological competence in our society. We aim to train
new digital experts every year, to meet both our own
needs and those of the sector as a whole. To achieve this
objective, we monitor and report on the annual number of
participants in training programmes organised by Digia,
either alone or in cooperation with partners, and on the
number of trainees and students working on theses. In
2022, the total number was 55 (65).
In addition to training programmes, Digia engages in
cooperation with educational institutions to support and
round out their offering of IT courses. We also collaborate
in various networks and events.
17
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
Sustainable digital life in our own work with
respect for the environment
The most important responsibility topics in the “sustain-
able digital life” focus area are employee well-being and
diversity, carbon-neutral Digia and an ethical operating
culture.
Digia wants to provide a safe and healthy working
environment in which everyone is valued as themselves.
Employee well-being, equality and equal treatment of
personnel are Digia’s direct impacts on personnel, social
responsibility and human rights. They are also issues that
affect Digia’s reputation as an employer and improve its
ability to retain the best experts in its employ and recruit
top professionals.
Employee well-being and diversity
Continually monitoring and supporting personnel wellbe-
ing play a key role at Digia. Well-being is supported by,
among other things, ensuring a workload suitable for the
life situation of the employee, a coaching leadership style
and support for developing one’s own competence. Digia
uses an early intervention model that supports success at
work. Wellbeing is also supported with extensive benefits
and flexible working arrangements, for instance.
Our goal is for Digia to be one of the best companies
in its industry in terms of wellbeing at work. We monitor
and report on the annual average days of sick leave per
employee. In 2022, sick leave per employee averaged 7.05
(5.6) days.
We also use a personnel survey to monitor our employees’
satisfaction with team spirit and work-life balance. We
aim to maintain this at a good level (over 80 on a scale
of 0–100). In 2022, personnel satisfaction with team spirit
was 74 (73) and satisfaction with work-life balance was
82 (80).
Non-discrimination and equality are recorded in our Code
of Conduct and we treat all employees equally regardless
of gender, ethnicity, religion, age, sexual orientation and
other such factors.
In accordance with Digia’s equality and non-discrimina-
tion plan for 2021–2022, our priorities for 2022 included
fostering a culture of mutual respect, better inclusion of
experts who are not native Finnish speakers, and encour-
aging women to enter the IT industry.
We monitor and report on what percentage of our su-
pervisors have completed diversity, equity, and inclusion
(DEI) training each year. 70% (36%) of our supervisors
completed this training in 2022.
In late 2022, we updated our guidelines on inappropriate
behaviour and harassment. We also introduced a Whis-
tleblower channel to enable anonymous reporting when a
direct discussion is not possible for whatever reason.
We analyse the realisation of pay equality from different
perspectives (such as gender, the competence classi-
fication of positions, and task profiles). At Digia, women
earned 98 cents for every euro paid to men in 2022. This
figure is based on the aforementioned classification of
profiles and does not take into account other factors that
may affect salaries, such as personal competence levels.
We aim to ensure diversity and inclusivity at all levels of
our organisation. We monitor and report on the gender
and age distribution of all employees, the Management
Team, supervisors and the Board of Directors at an annual
level.
Digia’s Board of Directors has defined a Board diversity
policy. It states that the requirements of the company’s
size, market position and industry should be duly reflected
in the Board’s composition. Both genders should be
represented on the Board.
18
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
Gender and age breakdown of management
and personnel in 2022:
Gender and age breakdown of management
and personnel in 2022:
Male 71.1%
Female 28.9%
Other 0%
Employees by gender 31 December
Percent
Personnel distribution by age 31 December
Percent
< 30 9.9%
30–39 25.5%
40–49 34.9%
50–59 22.4%
60< 7.4%
Male 80.0%
Female 20.0%
Other 0%
Group management team distribution
by gender 31 Dec
Percent
Lorem ipsum
Group management team distribution
by age 31 Dec
Percent
< 30 0%
30–39 0%
40–49 30.0%
50–59 50.0%
60< 20.0%
Male 68.8%
Female 31.2%
Other 0%
Supervisor distribution by gender 31 Dec
Percent
Supervisor distribution by age 31 Dec
Percent
< 30 1.4%
30–39 17.0%
40–49 44.7%
50–59 31.2%
60< 5.7%
Miehet 66,7 %
Naiset 33,3 %
Muu 0 %
allituksen sukupuolijakauma 31.12.
rosenttia
Board of Directors distribution by gender 31 Dec
Percent
Supervisor distribution by gender 31 Dec
Percent
Group management team distribution
by gender 31 Dec
Percent
Empoyeed by gender 31 Dec
Percent
Personnel distributation by age 31 Dec
Percent
Group management team distribution
by age 31 Dec
Percent
Supervisor distribution by age 31 Dec
Percent
Hallituksen ikäjakauma 31.12.
prosenttia
< 30, 0 %
30Ð39, 0 %
40Ð49, 0,0 %
50Ð59, 66,7 %
60<, 33,3 %
<
30. 0%
30–39 0%
40–49 0%
50–59 66.7%
60
<
33.3%
Male 66.7%
Female 33.3%
Other 0%
Board of Directors distribution by age 31 Dec
Percent
19
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
19
REPORT BY THE BOARD OF
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STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
Towards a carbon-neutral value chain
Information and communications technology (ICT) is an
important part of society’s critical infrastructure. All who
operate in this sector – like Digia – also play a key role in
reconciling society’s activities with the carrying capacity
of nature and the climate.
Our key environmental principles are:
1. Our own operations are in balance with the carrying
capacity of nature and the climate
2. Environmental responsibility is part of the daily life and
expertise of our workplace community
3. We accelerate the ecological renewal of society
Digia has been carbon-neutral in terms of its own opera-
tions in Finland since 2020. We aim to be carbon neutral,
including the entire value chain, by the end of 2030. Our
goal is to reduce emissions by 75% compared to the 2019
baseline by 2030. We have drawn up a climate roadmap
that contains an action plan to reduce emissions, and al-
so defines our climate objectives until 2030. The plan also
includes Digia’s carbon handprint. We will compensate for
the remaining emissions in a reliable manner.
The largest environmental impacts of Digia’s operations
are related to energy consumption and equipment. Office
work typically poses a very low risk of environmental
damage
How Digia’s carbon footprint is calculated
Since 2019, we have calculated the carbon footprint of
our companies in Finland. In accordance with the GHG
Protocol, this calculation includes emissions from the
company’s own operations (Scope 1 and 2) as well as
emissions from the value chain in line with the extent
of the annual assessment. The calculation covers all
operations in Finland with the exception of Productivity
Leap Oy and Avalon Oy, which were acquired towards
the end of the year. Digia’s emissions reduction plan has
been drafted on the basis of the situation in 2019 and the
defined limits.
Digia’s carbon footprint 2022
The carbon footprint of Digia’s own operations in 2022
was about 298 tonnes CO
2
e. The figure includes emissions
from the heating and cooling of all premises in Finland,
emissions from the electricity consumption of premises
and data centres, as well as emissions from the fuel
consumption of leased cars.
The carbon footprint –covering the entire value chain
– was around 1,650 tonnes CO
2
e. The figure includes not
only the emissions presented above, but also emissions
from waste management, commuting, equipment pro-
curements, recycling, and other procurements. Emissions
from equipment procurements grew because more IT
hardware reached the end of its service life than in the
previous year. The standardisation of working methods
and equipment due to acquisitions also had an impact.
Emissions relative to personnel were about 1.3 tonnes/
employee and relative to net sales 9.7 kg CO
2
e/€1,000.
The carbon footprint of our own operations decreased
slightly due to a number of minor factors such as the
need for heating, the rationalisation of the size of premis-
es, and the switchover to lower-emission electricity at the
head office. On the other hand, the emissions of leased
cars (Scope 1) have been separated out from other
vehicle emissions for the first time. That said, the most
relevant figure to monitor is the total carbon footprint,
which saw slight year-on-year growth. The major factors
behind this were hardware renewal, higher electricity
consumption on premises, and higher emissions from
business travel and commuting than in the previous year.
The total carbon footprint grew slightly compared to 2021.
The major factors behind this were hardware renewal and
higher emissions from business travel and commuting
than in the previous year. Emissions from commuting are
still substantially lower than in the pre-pandemic era, but
other travel emissions have risen. We can say that 2022
was a year of building new, post-pandemic approaches
to work and management. Climate impacts comprise
one of the focus areas in the further development of
operations as the company grows and becomes more
international.
We are further enhancing calculation practices and
accuracy as part of our work on the climate roadmap.
We seek to expand calculation to cover our operations
abroad, too, and our Group as a whole as it grows and
goes international.
2019 2020 2021 2022
Co
2
footprint 2022 (Scopes 1–3)
tonnia CO
2
e
1,210
1,510
1,650
3,050
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Premises and data centers
Travel
Equipment and recycling
Other procurement
Co
2
footprint 2022 (Scopes 1–3)
procent
Travel 19%
Premises and
data centers 18%
Equipment and
recycling 32%
Other procurement 31%
1,650 t
CO
2
e
20
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
Ethical operating culture
Compliance with Digia’s Code of Conduct is a key ele-
ment of our business. We monitor, develop and report on
our activities in accordance with the guidelines. Our goal
is for our organisation and partner network to internalise
our ethical practices. Our subcontractors commit con-
tractually to complying with ethical practices and our
guidelines in their own operations. Any deviations in the
operations of subcontractors during projects are reported,
and observations are dealt with as part of subcontractor
management. By the end of 2022, 73 (67) % of our
subcontractors had committed to our Code of Conduct.
Training on the Code of Conduct is part of the annual
training of Digia employees and we review this at a
personal level. In 2022, 68 (46.9) per cent of Digia em-
ployees had completed Code of Conduct training. Digia’s
operations do not pose a high risk in terms of anti-bribery
and anti-corruption activities. This is because Digia
operates largely in Finland. Furthermore, the operations of
Group companies mainly extend to countries classified as
having a low risk of corruption according to Transparency
International.
However, Digia has foreign partners in countries where the
risk of bribery and corruption is high. We take this risk into
account and select our partners very carefully. We require
our partners to commit to compliance with anti-bribery
and corruption legislation. We are also prepared to make
rapid changes to the subcontractor relationship if any
deviations are detected.
All Digia Group companies are committed to complying
with the same, or a similar, code of conduct, and also to
corresponding anti–bribery and corruption policies. Per-
sonnel working for Group companies have been instruct-
ed to use low-threshold advisory and reporting channels.
We have introduced a reporting channel in accordance
with the EU Whistleblower Directive (EU2021/1937), through
which a Digia employee or external person can report
any suspected misconduct or violations of our Code of
Conduct, either anonymously or under their own name.
The channel can be found here: https://whistleblower.
digia.com. Digia will handle the reports in its own sepa-
rately appointed processing team. This processing team
will consist of the Chair of the Board of Directors’ Audit
Committee, the General Counsel and a lawyer.
Sustainability risks as part of our risk
management
The company’s risk management and most significant
risks are described in Digia’s Corporate Governance
Statement. Digia employs systematic risk management to
improve operational efficiency, controls, business continu-
ity and profitability.
Our risk management model consists of a risk manage-
ment organisation, policies, processes, tools and common
practices. The risk management organisation leads,
develops and maintains the company’s risk management,
such as risk identification and reporting as well as the
monitoring and mitigation of various risks.
Digia has defined its sustainability risks as potential
negative impacts on people and the environment both
within its own organisation and in its value chain. Potential
risks related to personnel are monitored on the basis of
a human rights survey – these include experiences of
overwork, occupational well-being, and discrimination
and unequal treatment. The monitoring of procurements,
in turn, involves potential human rights risks such as the
use of forced labour in the manufacture of technological
equipment and the sourcing of raw materials. Office
2019 2020 2021 2022 Unit
Carbon footprint of own operations (Scopes 1+2) 337 343 386 298 tonnes CO
2
e
Carbon footprint of the entire value chain 3,050 1,510 1,210 1,650 tonnes CO
2
e
Emissions per employee 2.4 1.2 1.0 1.3 tonnes CO
2
e /employee
Emissions relative to net sales 23.2 10.9 7.8 9.7 kg CO
2
e /€1,000
Digia Carbon footprint 2019–2022
(Scopes 1-3) 2019 2020 2021 2022 %
Premises and data centers 360 350 420 300 18%
Travel 1,620 240 110 310 19%
Equipment and recycling 390 390 190 530 32%
Other procurement 680 530 490 510 31%
Total, t CO
2
e 3,050 1,510 1,210 1,650 100%
21
REPORT BY THE BOARD OF
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Board of Directors’
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Consolidated
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Notes to the consolidated
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Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
work of this kind poses a rather low risk of environmental
damage.
The health, safety, diversity and wellbeing of Digia
personnel are priorities for us. Enhancing personnel
wellbeing has become an important issue in our new,
post-pandemic operating environment. We continuously
monitor the occupational wellbeing and working capacity
of our employees at our supervisor events and through
personnel satisfaction surveys.
During 2022, we analysed the business-related human
rights risks and impacts in our value chain. In accordance
with the UN Guiding Principles on Business and Human
Rights, this analysis considered both actual and potential
human rights risks and impacts. These risks had already
been identified and managed, but the most important
reasons to carry out the analysis were the changes in the
operating environment and especially our desire to further
improve our operations. The analysis and reassessment
of the risks provide us with a basis for the further develop-
ment of the management mechanisms for human rights
risks and their redefinition and development as necessary.
The key risks are related to our personnel and supply
chain.
We have also analysed environmental risks, and reassess
our environmental impacts every six months. The signif-
icant environmental risks identified in conjunction with
these assessments fall within the scope of the company’s
risk management.
The company’s supply chain may contain risks related to
the environment, human rights, labour rights or corruption.
Our goal is to ensure a fair, ethical and green supply chain
in which the company does not have direct or indirect
negative impacts on people or the environment. Digia’s
suppliers are committed to operating in accordance with
Digia’s Code of Conduct.
In general, we can state that Digia has started making
special outlays on the further development of its risk
management in 2023 and will continue these efforts in
2023, with a particular focus on the management of risks
involving data security and protection as well as the
management of responsibility risks.
Reporting based on EU taxonomy
The European Union has set itself the target of becoming
the first climate-neutral continent by 2025. The Taxonomy
Regulation (EU 2020/852) seeks to define standardised,
science-based assessment criteria for environmentally
sustainable economic activities. Advances in digitalisa-
tion, technology and energy efficiency will play a major
role in achieving this goal. The information and commu-
nication sector is constantly growing – and so, too, is its
share of greenhouse gas emissions. At the same time,
information and communications technology has the
potential to contribute to the mitigation of climate change
and reduce greenhouse gas emissions in other sectors,
such as by providing solutions to facilitate decision-mak-
ing and thereby enable the reduction of greenhouse gas
emissions or other positive actions to mitigate climate
change and its impacts.
Digia was therefore obliged to publish the proportion of
taxonomy-eligible operations in the Group’s net sales,
investments and operating expenses during 2021. In
2021, Digia assessed whether the company’s business
operations belong to any of the activities of the sectors
specified in the taxonomy and examined its business
operations in light of the taxonomy criteria. The 2021 as-
sessment indicated that, according to the criteria for both
“climate change mitigation” and “substantial contribution
to climate change adaptation”, the company operates
in the Information and Communication sector, but in our
view did not at that time provide any services of the kind
specified in the criteria.
Taxonomy eligibility in 2022
Digia’s field of business is to build IT solutions and engage
in related projects, maintenance and consulting. Based
on the clarifications and answers to frequently asked
questions in Commission Notice (2022/C 385/01) issued
in 2022, it can be stated that all of Digia’s operations are
activities that substantially contribute to climate change
adaptation in accordance with Section 8.2 of the taxon-
omy (“Computer programming, consultancy and related
activities”) and thereby the taxonomy-alignment of
operations as a whole must be assessed in accordance
with the technical criteria and it must be stated whether
the operations substantially contribute to climate change
adaptation and whether they cause significant harm to
any of the other environmental objectives.
In addition, compliance with the minimum safeguards
must be assessed in accordance with Article 18. In July
2022, the EU Platform on Sustainable Finance published its
recommendations on criteria for assessing compliance
with the minimum safeguards. These minimum safe-
guards cover four core areas: human rights, bribery and
corruption, fair competition and taxation. Digia has utilised
the two-tiered criteria of this recommendation to assess
its own operations with respect to these core areas and
has concluded that in its view the company complies with
the criteria in terms of both adequacy of actual day-to-
day operations and the absence of violations. Digia has a
Code of Conduct covering human rights, anti-corruption
and anti-bribery measures and fair competition, as well
as other related guidelines. These set forth principles
and requirements that Digia employees, subcontractors
and partners must comply with. Digia is committed to
respecting and complying with internationally recognised
norms for labour and human rights. Digia has incorpo-
rated measures to assess and monitor compliance with
22
REPORT BY THE BOARD OF
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Board of Directors’
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Consolidated
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financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
human rights in processes for different parties. Digia also
conducts internal training, assessments and surveys on
performance with respect to compliance with human
rights and both anti-bribery and anti-corruption.
A substantial part of Digia’s business operations consist
of activities that either substantially contribute to climate
change adaptation in accordance with Activity 8.1 (“Data
processing, hosting and related activities”) or substantial-
ly contribute to climate change mitigation in accordance
with Activities 8.1 (“Data processing, hosting and related
activities”) or 8.2 (“Data-driven solutions for GHG emis-
sions reductions”). Digia has conducted the analysis at
project level, compiling data from the bottom up to en-
sure its accuracy and also verify that business operations
are not reported twice under different taxonomy classes.
Therefore, the entire company’s business operations in
2022 are to be considered to constitute taxonomy-eligible
economic activity.
In the tables, Digia reports taxonomy-eligibility as a single
KPI for turnover (that is, net sales), OpEx (operational
expenses) and CapEx (gross capital expenditure) in
accordance with the table templates.
Taxonomy-alignment in 2022
A substantial proportion of the IT services and solutions
that Digia provides are based on the use of public cloud
solutions. These solutions enable customer organisations
to operate more climate-efficiently and improve their
ability to withstand physical climate risks: For instance,
ERP solutions enable organisations to step up the ener-
gy-efficiency of their processes and improve the use of
transportation resources, thereby substantially reducing
CO
2
emissions.
This approach should be highly encouraged for the
sake of the environment, as all three major public cloud
providers (Microsoft, Amazon and Google) are committed
to significant programmes to reduce the environmental
burden in terms of energy-efficiency, CO
2
emissions, wa-
ter and other environmentally important subareas. Public
cloud platforms such as Microsoft Azure do not cause
significant harm to other environmental objectives, and
thus it can be assumed that public cloud platforms are
climate-resilient solutions as set out in the taxonomy and
are highly likely to comply with the criteria for activities
that substantially contribute to climate change mitigation
in accordance with Activity 8.1 (“Data processing, hosting
and related activities”).
Digia’s largest cloud services partner is Microsoft – and
so Digia has worked in particularly close cooperation with
Microsoft to ensure that its platform services fulfil techni-
cal and DNSH criteria. With respect to the DNSH criteria for
climate change adaptation and sustainable use of water
resources, operations meet the requirements in Annex A
to the criteria. With respect to the transition to the circular
economy, the used equipment and its management meet
the criteria requirements. With respect to biodiversity and
the prevention and avoidance of pollution, there are no
applicable criteria for the DNSH assessment of Activity 8.1
(“Data processing, hosting and related activities”).
Digia implements tailored data-based solutions for its
customers for the analysis and forecasting of climate
change impacts. These comprise activities that substan-
tially contribute to climate change mitigation in accord-
ance with Activity 8.2 (“Data-driven solutions for GHG
emissions reductions”) as set forth in the taxonomy and
some of them fulfil all technical and DNSH criteria. Digia
also meets the minimum safeguards in all of its opera-
tions as described above. Operations meet the require-
ments of the DNSH criteria for climate change adaptation
set out in Annex A to the criteria. The used equipment
and its management also meet the criteria requirements
for the transition to the circular economy. With respect to
biodiversity, the prevention and avoidance of pollution,
and the sustainable use of water resources, there are no
applicable criteria for Activity 8.2 (“Data-driven solutions
for GHG emissions reductions”).
Due to the nature of its business operations, Digia
estimates that the size of its taxonomy-aligned oper-
ations may vary significantly from year to year due to
reasons such as variations in the demand for climate
change-related customer-specific solutions. In addition,
Digia estimates that the implementation of the sustain-
ability strategy defined for the company will significantly
increase taxonomy-alignment – especially in the case of
activities that substantially contribute to climate change
adaptation (Activity 8.2) – in the years ahead.
Due to its business structure, Digia reports on its op-
erations at the taxonomy activity level, even though
taxonomy assessment has been carried out at project
level in terms of technical and DNSH criteria. All of Digia’s
operations also meet the minimum safeguards.
Turnover KPI
The denominator of the turnover KPI (the key performance
indicator for net sales) covers Digia’s total turnover, which
is recognised in line with IFRS 15 (note 3.2).
The numerator of the turnover KPI is the turnover from
products or services related to taxonomy-eligible or
taxonomy-aligned economic activities, including intangi-
ble assets, presented by taxonomy class. A more detailed
division into different taxonomy classes is presented in the
adjacent table.
The table lists the turnover of activities identified as falling
in taxonomy Activities 8.1 and 8.2 based on analyses.
Turnover from Activity 8.1 (“Data processing, hosting
23
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Board of Directors’
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Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
and related activities”) amounts to EUR 24,129 thousand,
representing 14.1% of total turnover. Turnover from Activity
8.2 (“Data-driven solutions for GHG emissions reduc-
tions”) amounts to EUR 178 thousand, representing 0.1%
of total turnover. These combined comprise the taxono-
my-aligned turnover, which totals EUR 24,301 thousand, or
14.2% of total turnover. The remainder of Digia’s turnover
comprises taxonomy-eligible turnover, amounting to EUR
146,453 thousand, representing 85.8% of total turnover.
OpEx KPI
The denominator of the OpEx KPI (key performance
indicator for operational expenses) includes direct
non-capitalised expenses related to R&D (note 3.7).
The numerator of the OpEx KPI is the proportion of the
OpEx included in the denominator that is connected
to taxonomy-eligible or taxonomy-aligned economic
activities. These include the direct expenses of these ac-
tivities and the proportion of expenses incurred by Digia’s
centralised Group services allocated to these activities in
relation to the direct expenses of these activities. These
refer to OpEx in taxonomy category a) and Digia has not
identified any OpEx falling in categories b) and c).
The table lists the OpEx of activities identified as falling in
taxonomy Activities 8.1 and 8.2 based on analyses. OpEx in
Activity 8.1 (“Data processing, hosting and related activi-
ties”) amounts to EUR 16,108 thousand, representing 13.1%
of total OpEx. OpEx in Activity 8.2 (“Data-driven solutions
for GHG emissions reductions”) amounts to EUR 159
thousand, representing 0.1% of total OpEx. These combined
comprise the taxonomy-aligned OpEx, which is EUR 16,267
thousand, or 13.3% of total OpEx. Taxonomy-eligible total
OpEx amounts to EUR 106,404 thousand, representing
86.7% of total OpEx.
CapEx KPI
The denominator of the CapEx KPI (key performance
indicator for gross capital expenditure) covers increases
in tangible and intangible assets during the fiscal year
before depreciation, amortisation and revaluation. The
denominator also covers increases in right-of-use asset
items in leases under IFRS 16 (note 7.4).
The numerator of the CapEx KPI is the proportion of CapEx
included in the denominator that is connected to taxono-
my-eligible or taxonomy-aligned economic activities. The
numerator also includes the proportions of any capital
expenditure on centralised systems for the business
functions in relation to the direct expenses incurred
by taxonomy-eligible or taxonomy-aligned economic
activities. In accordance with the taxonomy, these con-
stitute category a) capital expenditure, and Digia has not
recognised capital expenditure in other categories. The
taxonomy classification with respect to the numerator of
the CapEx KPI is shown in the adjacent table.
The table lists the CapEx of activities identified as falling in
taxonomy Activities 8.1 and 8.2 based on analyses. CapEx
in Activity 8.1 (“Data processing, hosting and related activ-
ities”) amounts to EUR 165 thousand, representing 13.1% of
total CapEx. CapEx in Activity 8.2 (“Data-driven solutions
for GHG emissions reductions”) amounts to EUR 2 thou-
sand, or 0.1% of total CapEx. These combined comprise the
taxonomy-aligned CapEx, which totals EUR 166 thousand,
or 13.3% of total CapEx. Taxonomy-eligible CapEx amounts
to EUR 1,087 thousand, representing 86.7% of total CapEx.
24
REPORT BY THE BOARD OF
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Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
Substantial contribution criteria
DNSH criteria
(’Does Not Significantly Harm’)
Economic
activities (1)
Code(s) (2)
Absolute turnover (3)
Proportion of turnover (4)
Climate change mitigation (5)
Climate change daptation (6)
Water and marine resources (7)
Circular economy (8)
Pollution (9)
Biodiversity and ecosystems (10)
Climate change mitigation (11)
Climate change adaptation (12)
Water and marine resources (13)
Circular economy (14)
Pollution (15)
Biodiversity and ecosystems (16)
Minimum safeguards (17)
Taxonomy-aligned
proportion
of turnover,
year N (18)
Taxonomy
- aligned
proportion
of turnover,
year N-1
(19)
Category
(enabling
activity or)
(20)
Category
'(transitional
activity)' (21)
k€ % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N Percent Percent E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable
activities
(Taxonomy aligned)
Activity 8.1 Data processing, hosting and
related activities
8.1 24,123 14.1% 100 0 0 0 0 0 N/A Y Y Y N/A N/A Y T
Activity 8.2 Data-driven solutions for GHG
emissions reductions
8.2 178 0.1% 100 0 0 0 0 0 N/A Y N/A Y N/A N/A Y E
Turnover of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
24,301 14.2% 14%
A.2 Taxonomy-Eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
Turnover of Taxonomy-eligible but
not environmentally sustainable activities
(not Taxonomy-aligned activities)
(A.2)
146,453 85.8% 85.8% 0.0%
Total (A.1 + A.2) 170,754 100.0% 100.0% 0.0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible
activities (B)
0 0%
Total (A + B) 170,754 100.0%
Turnover
25
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
Substantial contribution criteria
DNSH criteria
(’Does Not Significantly Harm’)
Economic activities (1)
Code(s) (2)
Absolute OpEx (3)
Proportion of OpEx (4)
Climate change mitigation (5)
Climate change daptation (6)
Water and marine resources (7)
Circular economy (8)
Pollution (9)
Biodiversity and ecosystems (10)
Climate change mitigation (11)
Climate change adaptation (12)
Water and marine resources (13)
Circular economy (14)
Pollution (15)
Biodiversity and ecosystems (16)
Minimum safeguards (17)
Taxonomy-aligned
proportion
of OpEx,
year N (18)
Taxonomy
- aligned
proportion
of OpEx,
year N-1
(19)
Category
(enabling
activity or)
(20)
Category
'(transitional
activity)' (21)
k€ % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N Percent Percent E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable
activities
(Taxonomy aligned)
Activity 8.1 Data processing, hosting and
related activities
8.1 16,108 13.1% 100 0 0 0 0 0 N/A Y Y Y N/A N/A Y N/A T
Activity 8.2 Data-driven solutions for GHG
emissions reductions
8.2 159 0.1% 100 0 0 0 0 0 N/A Y N/A Y N/A N/A Y N/A E
OpEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
16,267 13.3% 13.3% 0
A.2 Taxonomy-Eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
OpEx of Taxonomy-eligible but
not environmentally sustainable activities
(not Taxonomy-aligned activities)
(A.2)
106,404 86.7% 86.7% 0
Total (A.1 + A.2) 122,671 100.0% 100.0% 0
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non eligible activities
(B)
0 0.0%
Total (A + B) 122,671 100.0%
OpEx
26
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
27
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
Substantial contribution criteria
DNSH criteria
('Does Not Significantly Harm')
Economic
activities (1)
Code(s) (2)
Absolute CapEx (3)
Proportion of CapEx (4)
Climate change mitigation (5)
Climate change adaptation (6)
Water and marine resources (7)
Circular economy (8)
Pollution (9)
Biodiversity and ecosystems (10)
Climate change mitigation (11)
Climate change adaptation (12)
Water and marine resources (13)
Circular economy (14)
Pollution (15)
Biodiversity and ecosystems (16)
Minimum safeguards (17)
Taxonomy-aligned
proportion
of CapEx
year N
(18)
Taxonomy
- aligned
proportion
of CapEx
year N-1
(19)
Category
(enabling
activity or)
(20)
Category
'(transitional
activity)'
(21)
k€ % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N Percent Percent E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable
activities
(Taxonomy aligned)
Activity 8.1 Data processing, hosting and
related activities
8.1 165 13.1% 100 0 0 0 0 0 N/A Y Y Y N/A N/A Y N/A T
Activity 8.2 Data-driven solutions for GHG
emissions reductions
8.2 2 0.1% 100 0 0 0 0 0 N/A Y N/A Y N/A N/A Y N/A E
CapEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
166 13.3% 13.3%
A.2 Taxonomy-Eligible but not
environmentally sustainable activities
(not
Taxonomy-aligned activities)
CapEx of Taxonomy-eligible but
not environmentally sustainable activities
(not Taxonomy-aligned activities)
(A.2)
1,087 86.7% 86.7% 0
Total (A.1 + A.2) 1,253 100.0% 100% 0
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible
activities (B)
0 0.0%
Total (A + B) 1,253 100.0%
CapEx
28
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Notes to the consolidated
nancial statements
Financial statements
of the parent
company
Signatures Auditor’s Report
Notes to the financial
statements of the parent
company
Consolidated
financial statements
29 Main statements in the consolidated
financial statements (IFRS)
33 General information
36 Financial development
44 Human resources
47 Working capital
48 Capital structure
54 Other items
60 Formulas for the indicators and
reconciliations
62 Parent company’s financial
statements (FAS)
69 Signatures to the Board’s Report and
Financial Statements
70 Auditor’s Note
71 Auditor’s Report
Financial statements 2022
1 Main statements in the consolidated
nancial statements (IFRS)
1.1 Consolidated Income Statement
EUR 1,000 Note 1 Jan–31 Dec 2022 1 Jan–31 Dec 2021
Net sales
3.2 170,754 155,939
Other operating income
3.4 248 445
Materials and services -28,512 -21,674
Depreciation, amortisation and
impairment
3.6 -7,094 -7,485
Personnel expenses
4.1, 4.2, 4.4, 7.6 -105,827 -99,063
Other operating expenses
3.7 -16,843 -13,482
-158,028 -141,260
Operating profit 12,727 14,680
Financial income
6.5 233 540
Financial expenses
6.5 -910 -646
-677 -107
Profit before taxes 12,050 14,573
Income taxes
3.8 -2,479 -2,801
Net profit 9,571 11,772
Earnings per share, EUR, undiluted
3.10 0.36 0.44
Earnings per share, EUR (diluted) 0.36 0.44
Distribution of income for the period:
Parent company shareholders 9,533 11,758
Non-controlling interests 39 14
1.2 Consolidated statement of comprehensive income
1 Jan–31 Dec 2022 1 Jan–31 Dec 2021
Net profit 9,571 11,772
Other comprehensive income items:
Items that may later be reclassified as profit or loss:
Exchange differences on translation of foreign operations -1,721 -198
Total comprehensive income 7,850 11,574
Distribution of total comprehensive income:
Parent company shareholders 7,812 11,560
Non-controlling interests 39 14
29
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Notes to the consolidated
nancial statements
Financial statements
of the parent
company
Notes to the nancial
statements of the parent
company
Signatures Auditor’s Report
Consolidated
financial statements
1.3 Consolidated balance sheet
EUR 1,000 Note 31 Dec 2022 31 Dec 2021
ASSETS
Non-current assets
Goodwill
7.1 85,829 71,915
Intangible assets
7.3 14,389 10,875
Tangible assets
7.2 570 686
Right-of-use assets
7.4 5,957 6,969
Financial assets recognised at fair value
through profit or loss
6.2 483 484
Non-current receivables
6.2 372 538
Deferred tax assets
3.9 332 640
Current assets
Accounts receivable and other
receivables
5.2, 6.2 37,846 32,785
Cash and cash equivalents
6.2 14,338 18,148
Total assets 160,116 143,040
SHAREHOLDERS’ EQUITY AND LIABILITIES
EUR 1,000 Note 31 Dec 2022 31 Dec 2021
Equity attributable to parent-
company shareholders
Share capital 2,088 2,088
Other reserves 5,204 5,204
Unrestricted shareholders’ equity reserve 42,081 42,081
Translation difference -2,261 -541
Retained earnings 14,391 7,468
Net profit 9,533 11,758
Equity attributable to non-controlling
interests
Total shareholders’ equity
6.7 71,087 68,072
Non-current liabilities
Deferred tax liabilities
3.9 2,553 1,877
Non-current advances received 107 0
Financial liabilities
6.3 17,270 16,000
Lease liabilities 3,032 4,354
Other non-current liabilities
3.5 5,232 2,324
Current liabilities
Accounts payable and other liabilities
5.2 27,764 21,156
Income tax liabilities 0 985
Provisions
3.3 0 1,234
Accruals and deferred income 21,427 18,580
Lease liabilities
6.4 3,450 3,431
Other financial liabilities
6.3 8,194 5,026
Total liabilities 89,028 74,968
Total shareholders’ equity and
liabilities 160,116 143,040
30
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Notes to the consolidated
nancial statements
Financial statements
of the parent
company
Notes to the nancial
statements of the parent
company
Signatures Auditor’s Report
Consolidated
financial statements
1.4 Consolidated cash flow statement
EUR 1,000 Note 1 Jan–31 Dec 2022 1 Jan–31 Dec 2021
Cash flow from operations:
Net profit 9,571 11,772
Adjustments to net profit
7.5 9,194 9,398
Change in working capital
5.1 -1,547 -3,204
Change in other receivables and liabilities 2,567 2,517
Interest paid -308 -299
Interest income 16 43
Taxes paid -5,242 -3,580
Cash flow from operations 14,252 16,648
Cash flow from investments:
Purchases of tangible and intangible
assets
-1,177 -1,768
Acquisition of subsidiaries, net of cash
and cash equivalents at the time of
acquisition
3.5 -10,646 -9,933
Dividends received - 5
Repayment of loans receivable - 1,573
Cash flow from investments -11,823 -10,124
EUR 1,000 Note 1 Jan–31 Dec 2022 1 Jan–31 Dec 2021
Cash flow from financing:
Repayment of lease liabilities
6.3 -3,810 -4,085
Repayment of current loans
6.3 -5,000 -9,726
Withdrawals of current loans
6.3 - 3,000
Repayment of non-current loans
6.3 - -271
Withdrawals of non-current loans
6.3 9,000 10,900
Acquisition of treasury shares -1,963 -630
Sale of treasury shares 163 -
Dividends paid -4,478 -4,002
Cash flow from financing -6,087 -4,814
Change in cash and cash equivalents -3,659 1,710
Cash and cash equivalents at
beginning of period 18,148 16,410
Change in cash and cash equivalents -3,659 1,710
Effects of changes in foreign exchange
rates
-151 28
Cash and cash equivalents at end of
period
6.2 14,338 18,148
31
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Notes to the consolidated
nancial statements
Financial statements
of the parent
company
Notes to the nancial
statements of the parent
company
Signatures Auditor’s Report
Consolidated
nancial statements
1.5 Changes in shareholders’ equity
EUR 1,000 Notes
Share
capital
Unrestricted
shareholders’
equity
reserve
Other
reserves
Translation
difference
Retained
earnings
Non-
controlling
interests
Total
shareholders’
equity
Shareholders’ equity,
1 Jan 2021
Comprehensive
income
Net profit (+) / loss (-)
1.1 11,758 14 11,772
Other comprehensive
income items
1.2 - - - -198 - -198
Total comprehensive
income - - - -198 11,758 14 11,574
Transactions with
shareholders
Share-based
transactions settled
in equity
4.4 - - - - 392 392
Dividends - - - - -4,002 -4,002
Acquisition of treasury
shares
Transactions with
shareholders, total -4,239 -4,239
Shareholders’ equity,
31 Dec 2021 2,088 42,081 5,204 -541 19,226 14 68,072
EUR 1,000 Notes
Share
capital
Unrestricted
shareholders’
equity reserve
Other
reserves
Translation
difference
Retained
earnings
Non-
controlling
interests
Total
shareholders’
equity
Shareholders’ equity,
1 Jan 2022
Comprehensive
income
Net profit (+) / loss (-)
1.1 9,533 39 9,571
Other comprehensive
income items
1.2 - - - -1,721 - -1,721
Total comprehensive
income - - - -1,721 9,533 39 7,850
Transactions with
shareholders
Share-based
transactions settled
in equity
4.4 - - - - 63 63
Dividends - - - - -4,478 -4,478
Acquisition of treasury
shares
Transactions with
shareholders, total -4,835 -4,835
Shareholders’ equity,
31 Dec 2022 2,088 42,081 5,204 -2,261 23,923 53 71,087
32
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Notes to the consolidated
nancial statements
Financial statements
of the parent
company
Notes to the nancial
statements of the parent
company
Signatures Auditor’s Report
Consolidated
nancial statements
2 General information
33
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
34
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
35
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
3 Financial development
Net sales
EUR million
2018 2019 2020 2021 2022
112
132
139
156
171
36
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
37
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
38
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
39
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
40
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
41
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
42
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
43
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
4 Human resources
44
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
45
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
46
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
5 Working capital
47
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
6 Capital structure
48
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
49
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
50
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
51
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
52
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
53
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
7 Other items
54
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
55
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
56
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
57
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
58
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
59
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
8 Formulas for the indicators and
reconciliations
60
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
61
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
financial statements
Notes to the consolidated
financial statements
Financial statements
of the parent
company
Notes to the financial
statements of the parent
company
Signatures Auditor’s Report
9 Parent company’s financial statements (FAS)
9.1 Parent company’s income statement
EUR Note 1.1.–31 Dec 2022 1.1.–31 Dec 2021
Net sales
1 16,275,998.26 13,387,000.00
Other operating income
2 77,290.00 41,934.00
Materials and services -1,287,601.08 0
Personnel expenses
3 -4,548,223.84 -4,100,382.01
Depreciation, amortisation and
impairment
4 -772,115.42 -430,994.10
Other operating expenses
5 -9,206,650.53 -8,329,762.28
-15,737,300.87 -12,819,204.39
Operating profit 538,697.39 567,795.61
Financial income and expenses
6 -1,127,017.02 -629,511.98
Profit before appropriations and taxes -588,319.63 -61,716.37
Accumulated appropriations
Group contribution 10,400,000.00 12,000,000.00
Depreciation differences -359,233.80 0.00
Profit before taxes 9,452,446.57 11,938,283.62
Income taxes
7 -1,882,836.48 -2,405,101.58
Net profit 7,569,610.09 9,533,182.05
9.2 Parent company balance sheet
EUR Note 31 Dec 2022 31 Dec 2021
ASSETS
FIXED ASSETS
Intangible assets
8 57,489.85
Intangible rights 3,446,808.82 28,841.99
Other long-term expenses 0.00 3,025,073.47
3,504,298.67 3,053,915.46
Tangible assets
9
Land and water areas 16,818.79 16,818.79
Buildings and structures 18,132.01 24,725.47
Machinery and equipment 374,043.37 367,278.34
Other fixed assets 1,210.95 1,210.95
410,205.12 410,033.55
Investments
10
Shares in Group companies 180,427,733.37 158,375,053.19
Other shares and holdings 480,004.54 480,004.54
180,907,737.91 158,855,057.73
Total fixed assets 184,822,241.70 162,319,006.74
62
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
nancial statements
Notes to the consolidated
nancial statements
Notes to the nancial
statements of the parent
company
Signatures Auditor’s Report
Financial statements
of the parent
company
EUR Note 31 Dec 2022 31 Dec 2021
CURRENT ASSETS
Non-current receivables
Prepayments and accrued income 217,516.93 302,222.43
Current receivables
11
Accounts receivable 0.00 260.40
Receivables from Group companies 11,792,152.78 2,955,524.62
Other receivables 339,705.91 141,043.78
Prepayments and accrued income 1,942,473.29 1,028,612.86
14,074,331.98 4,125,441.66
Cash and cash equivalents 4,457,051.25 7,762,533.69
Total current assets 18,748,900.16 12,190,197.78
Total assets 203,571,141.86 174,509,204.52
EUR Note 31 Dec 2022 31 Dec 2021
SHAREHOLDERS’ EQUITY AND LIABILITIES
SHAREHOLDERS’ EQUITY
Equity attributable to parent-company
shareholders
12
Share capital 2,087,564.50 2,087,564.50
Unrestricted shareholders’ equity reserve 42,540,499.12 42,540,499.12
Retained earnings 14,385,253.40 9,749,865.95
Net profit 7,569,610.09 9,533,182.05
Total shareholders’ equity 66,582,927.11 63,911,111.62
EUR Note 31 Dec 2022 31 Dec 2021
ACCUMULATED APPROPRIATIONS
Depreciation difference 359,233.80 0.00
LIABILITIES
Non-current liabilities
Loans from financial institutions
13 17,000,000.00 16,000,000.00
Other non-current liabilities 5,730,000.00 2,324,000.00
22,730,000.00 18,324,000.00
Current liabilities
Accounts payable 232,282.15 902,901.78
Current interest-bearing liabilities
14 8,000,000.00 5,000,000.00
Liabilities to Group companies 95,623,033.20 79,449,092.38
Other liabilities 8,838,123.93 5,245,978.00
Accruals and deferred income 1,202,541.67 890,866.04
Taxes based on the net result for the year 3,000.00 785,254.70
113,898,980.95 92,274,092.90
Total liabilities 136,628,980.95 110,598,092.90
Total shareholders’ equity and liabilities 203,571,141.86 174,509,204.52
63
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
nancial statements
Notes to the consolidated
nancial statements
Notes to the nancial
statements of the parent
company
Signatures Auditor’s Report
Financial statements
of the parent
company
9.3 Parent company’s cash flow
statement
EUR Note
1.1.-31 Dec
2022
1.1.-31 Dec
2021
Cash flow from operations:
Net profit 7,569,610.09 9,533,182.05
Adjustments to net profit -6,295,077.28 -9,249,919.55
Change in working capital 12,082,371.99 -2,090,324.04
Interest paid -295,317.60 -639,295.79
Interest income 1,237.03 -
Taxes paid -3,197,137.93 -1,620,247.66
Cash flow from operations 9,865,686.30 -4,066,604.99
Cash flow from
investments:
Purchases of tangible and
intangible assets
-2,418,788.01 -1,764,741.50
Acquisition of subsidiary, net
of cash acquired
-13,700,023.96 -12,707,037.01
Cash flow from investments -16,118,811.97 -14,471,778.50
Cash flow from financing:
Acquisition of treasury shares -1,962,752.48 -630,085.36
Sale of treasury shares 162,597.84 -
Repayment of current loans -5,000,000.00 -9,700,000.00
Withdrawals of current loans 1,000,000.00 3,000,000.00
Withdrawals of non-current
loans
8,000,000.00 10,900,000.00
Group financing items
1
2,725,483.63 8,400,326.93
Group contribution 2,500,000.00 10,000,000.00
Dividends paid
12 -4,477,685.76 -4,001,719.35
Cash flow from financing 2,947,643.23 17,968,522.22
Change in cash and cash
equivalents
-3,305,482.44 -569,861.27
Cash and cash equivalents
at beginning of period
7,762,533.69 8,332,394.96
Change in cash and cash
equivalents
-3,305,482.44 -569,861.27
Cash and cash equivalents
at end of period 4,457,051.25 7,762,533.69
1 Group financing items comprise changes in loans between the parent
company and its subsidiaries.
9.4 Basic information on the parent
company and accounting policies
Basic information on the company
Digia Plc is the parent company of the Digia Group. It is
domiciled in Helsinki and its registered office is at Atomitie 2,
00370 Helsinki. Digia Plc’s active subsidiaries are Avalon Oy,
Digia Finland Oy, Digia Hub Oy, Most Digital Oy and its subsi-
diaries, Productivity Leap Oy, Solasys Oy, Digia Sweden AB and
Climber International AB with their subsidiaries.
Accounting policies
The parent company’s financial statements have been
prepared in accordance with Finnish Accounting Standards
(FAS). The financial statements are based on original acqui-
sition costs. Book values based on original costs have been
reduced to correspond to fair value as necessary.
Since 1 June 2005, the parent company has operated as the
Group’s administrative company and charged the Group
companies for services rendered.
Pension schemes
The Group’s pension schemes are arranged through a pen-
sion insurance company. Pension premiums and expenses
allocated to the financial period are based on confirmations
received from the insurance company. Pension expenses are
recognised as expenses for the year in which they arise.
Leasing payments
Leasing payments are recognised as annual expenses.
Share-based payments
Digia has a share-based incentive scheme where payments
are made either in equity instruments or in cash. The com-
pany complies with Statement 1998, 15 January 2020 of the
Accounting Board (KILA) in the treatment of benefits granted
in such schemes. According to the statement, the terms and
conditions of a share-based incentive scheme are irrevocab-
ly fulfilled only at the end of the incentive period. Therefore,
the service commitment required of an employee under the
share-based incentive scheme is indivisible by nature – the
performance is to be considered to have been rendered on
the one hand and received on the other by the company at
the end of the incentive period, at which point the employee
shall have an irrevocable right to the shares specified in the
scheme.
Fixed assets, depreciation and amortisation
Fixed assets are recognised in the balance sheet at imme-
diate cost less planned depreciation and amortisation.
The economic lives underlying planned depreciation and
amortisation are as follows:
Intangible assets
Intangible rights 3–5 years
Other long-term expenses 3–5 years
Tangible assets
Buildings and structures 25 years
Machinery and equipment 3–8 years
Purchases of fixed assets with an economic life of less than
three years are recognised as annual expenses.
Board’s dividend proposal
According to the balance sheet dated 31 December 2022,
Digia Plc’s distributable shareholders’ equity was EUR
64,495,362.61, of which EUR 7,569,610.61 was profit for the
fiscal year. At the Annual General Meeting (AGM), the Board
of Directors will propose that a dividend of EUR 0.17 per share
be paid according to the confirmed balance sheet for the
fiscal year ending 31 December 2022. Shareholders listed in
the shareholders’ register maintained by Euroclear Finland
Oy on the dividend reconciliation date, 27 March 2023, will be
eligible for the payment of dividend. Dividends will be paid on
3 April 2023.
64
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
nancial statements
Notes to the consolidated
nancial statements
Notes to the nancial
statements of the parent
company
Signatures Auditor’s Report
Financial statements
of the parent
company
9.5 Notes to the parent company’s financial statements
1. Net sales
Net sales by segment
EUR 2022 2021
Projects 760.00 -
Group administration services 16,275,238.26 13,387,000.00
Total 16,275,988.26 13,387,000.00
2. Other operating income
EUR 2022 2021
Rental income 41,010.00 41,199.00
Other operating income 36,280.00 735.00
Total 77,290.00 41,934.00
3. Information on personnel and governing bodies
EUR 2022 2021
Board emoluments and remuneration and CEO’s compensation 707,131.80 834,259.55
Other salaries and remunerations 3,151,886.46 2,640,118.86
Pension insurance contributions 603,562.19 542,390.58
Other personnel expenses 85,643.39 83,613.02
Total 4,548,223.84 4,100,382.01
Number of personnel, 31 Dec 2022 2021
Management and administration 46 43
Total 46 43
4. Depreciation, amortisation and impairment
EUR 2022 2021
Planned depreciation and amortisation
Property, plant, and equipment, and intangible assets 772,115.42 430,994.10
Total 772,115.42 430,994.10
5. Auditors’ fees
EUR 2022 2021
Audit 91,630.50 86,000.00
Tax counselling - 1,627.50
Other services 10,640.00 14,645.00
Total 102,270.50 102,272.50
6. Financial income and expenses
Financial income
EUR 2022 2021
Interest and financial income from Group companies 2,297.34 0.00
Interest and financial income from others 152,952.38 67,198.57
Total 155,249.72 67,198.57
Financial expenses
EUR 2022 2021
Interest expenses to Group companies 854,178.48 300,795.96
Interest expenses to other companies 351,250.98 320,273.29
Loan administration fees 38,175.00 46,655.97
Other financial expenses 38,662.86 28,985.33
Total 1,282,266.74 696,710.55
65
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
nancial statements
Notes to the consolidated
nancial statements
Financial statements
of the parent
company
Signatures Auditor’s Report
Notes to the nancial
statements of the parent
company
7. Income taxes
EUR 2022 2021
Income taxes on operations -1,882,836.48 -2,405,101.58
Income taxes for previous periods - -
Total -1,882,836.48 -2,405,101.58
Deferred tax assets arising from accrual differences and from temporary differences
between book values and taxation values are unrecorded in the statement of financial
position, in accordance with the principle of prudence. Deferred tax assets totalled EUR
225 thousand at the end of the fiscal year.
8. Intangible assets
EUR
Intangible
rights
Other long-term
expenses
Intangible
assets in
progress Total 2022 Total 2021
Acquisition cost, 1 Jan 5,386,528.99 1,524,947.33 2,836,532.91 9,748,009.23 7,593,183.77
Increases 1,014,054.08 5,484.98 - 1,019,539.06 2,779,760.46
Decreases - - - - -624,935.00
Transfers between items 2,836,532.91 - -2,836,532.91 -
Acquisition cost, 31 Dec 9,237,115.98 1,530,432.31 - 10,767,548.29 9,748,009.23
Accumulated
depreciation and
amortisation, 1 Jan.
-5,357,687.00 -1,336,406.77 - -6,694,093.77 -6,509,764.60
Depreciation -432,620.16 -136,535.69 - -569,155.85 -184,329.17
Accumulated
depreciation and
amortisation, 31 Dec
-5,790,307.16 -1,472,942.46 - -7,263,249.62 -6,694,093.77
Book value, 1 Jan 28,841.99 188,540.56 2,836,532.91 3,053,915.46 1,083,419.17
Book value, 31 Dec 3,446,808.82 57,489.85 - 3,504,298.67 3,053,915.46
Intangible assets in progress are disclosed in Note 7.3: Intangible assets.
9. Property, plant and equipment
EUR
Land and
water areas
Buildings and
structures
Machinery
and
equipment Total 2022 Total 2021
Acquisition cost, 1 Jan 16,818.79 162,905.90 3,523,610.57 3,703,335.26 3,603,262.98
Increases - - 203,131.14 203,131.14 100,072.28
Acquisition cost, 31 Dec 16,818.79 162,905.90 3,726,741.71 3,906,466.40 3,703,335.26
Accumulated
depreciation and
amortisation, 1 Jan
- -138,180.43 -3,155,121.28 -3,293,301.71 -3,046,636.78
Depreciation - -6,593.46 -196,366.11 -202,959.57 -246,664.93
Accumulated
depreciation and
amortisation, 31 Dec
- -144,773.89 -3,351,487.39 -3,496,261.28 -3,293,301.71
Book value, 1 Jan 16,818.79 24,725.47 368,489.29 410,033.55 556,626.20
Book value, 31 Dec 16,818.79 18,132.01 375,254.32 410,205.12 410,033.55
66
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
nancial statements
Notes to the consolidated
nancial statements
Financial statements
of the parent
company
Signatures Auditor’s Report
Notes to the nancial
statements of the parent
company
10. Investments
EUR
Investments
in subsidiary
shares
Other shares
and holdings Total 2022 Total 2021
Acquisition cost, 1 Jan 158,404,009.19 606,292.32 159,010,301.51 141,077,082.83
Increases 22,052,680.18 - 22,052,680.18 17,933,218.68
Decreases - - - -
Acquisition cost, 31 Dec 180,456,689.37 606,292.32 181,062,981.69 159,010,301.51
Accumulated amortisation, 1 Jan -28,956.00 -126,287.78 -155,243.78 -155,243.78
Impairment - - - -
Accumulated amortisation,
31 Dec
-28,956.00 -126,287.78 -155,243.78 -155,243.78
Book value, 1 Jan 158,375,053.19 480,004.54 158,855,057.73 140,921,839.05
Book value, 31 Dec 180,427,733.37 480,004.54 180,907,737.91 158,855,057.73
Itemisation of subsidiaries and other shares and holdings
Group companies Domicile
Domestic
segment
Share of
ownership Share of votes
Avalon Oy Oulu Finland 100% 100%
Climber International AB Stockholm Sweden 100% 100%
Digia Finland Ltd Helsinki Finland 100% 100%
Digia Hub Oy Helsinki Finland 100% 100%
Digia Sweden Ab Stockholm Sweden 100% 100%
Most Digital Oy Lempäälä Finland 100% 100%
Productivity Leap Oy Joensuu Finland 100% 100%
Solasys Oy Turku Finland 100% 100%
11. Current receivables
EUR 2022 2021
Receivables from Group companies
Accounts receivable 1,542,855.44 914,072.38
Loan receivables 347,000.00 0.00
Prepayments and accrued income 9,902,297.34 2,041,452.24
Accounts receivable 0.00 260.40
Other receivables 339,705.91 141,043.78
Prepayments and accrued income 1,942,473.29 1,028,612.86
Total 14,074,331.98 4,125,441.66
67
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
nancial statements
Notes to the consolidated
nancial statements
Financial statements
of the parent
company
Signatures Auditor’s Report
Notes to the nancial
statements of the parent
company
13. Non-current liabilities
EUR 2022 2021
Loans from financial institutions 17,000,000.00 16,000,000.00
Other non-current liabilities 5,730,000.00 2,324,000.00
Total 22,730,000.00 18,324,000.00
14. Current liabilities
EUR 2022 2021
Interest-bearing
Current interest-bearing liabilities 8,000,000.00 5,000,000.00
Liabilities to Group companies
Borrowings 75,474,255.21 72,552,623.45
Total interest-bearing current
liabilities 83,474,255.21 77,552,623.45
Liabilities to Group companies
Accounts payable 1,540,722.59 -
Accruals and deferred income 18,608,055.40 6,896,468.93
To others
Accounts payable 232,282.15 902,901.78
Other liabilities 8,838,123.93 5,245,978.00
Accruals and deferred income 1,205,541.67 1,676,120.74
Total interest-free current
liabilities 30,424,725.74 14,721,469.45
Total current liabilities 113,898,980.95 92,274,092.90
Material items included in accrued expenses arise from
the accrual of holiday pay, as well as accrued provisions
for salaries and fees.
15. Contingent liabilities
Lease liabilities
EUR 2022 2021
Due during the current financial period 68,680.17 62,849.82
Due later 45,824.61 25,387.76
Total 114,504.78 88,237.58
Other lease liabilities
EUR 2022 2021
Due during the current financial period 2,753,091.14 2,709,633.60
Due later 2,423,861.79 3,508,262.08,
Total 5,176,952.93 6,217,895.68
Other liabilities
EUR 2022 2021
Collateral pledged for own
commitments
Other 582,617.82 582,617.82
Total 582,617.82 582,617.82
16. Share-based incentive scheme
The purpose and key terms of the share-based incentive
scheme are presented in section 4.4 of the consolidated
financial statements.
The maximum number of shares promised as share
rewards is 525,000. They represent 2.0 per cent of share
capital and the total number of shares. The number of
people participating in the scheme as at 31 Decem-
ber 2022 was 13, including the CEO. The estimate of the
amount of bonuses to be paid on 31 Dec 2022 is EUR 805
thousand.
12. Shareholders’ equity
EUR 2022 2021
Share capital, 1 Jan 2,087,564.50 2,087,564.50
Share capital, 31 Dec 2,087,564.50 2,087,564.50
Total restricted shareholders’ equity 2,087,564.50 2,087,564.50
Unrestricted shareholders’ equity
reserve, 1 Jan
42,540,499.12 42,540,499.12
Unrestricted shareholders’ equity
reserve, 31 Dec
42,540,499.12 42,540,499.12
Accrued earnings, 1 Jan 19,283,048.00 14,381,670.66
Changes during the fiscal year
Dividends -4,477,685.76 -4,001,719.35
Acquisition of treasury shares -1,962,752.48 -630,085.36
Share-based payments 1,542,643.64 -
Accrued earnings, 31 Dec 14,385,253.40 9,749,865.95
Net profit 7,569,610.09 9,533,182.05
Total unrestricted shareholders’
equity 64,495,362.61 61,823,547.12
Total shareholders’ equity 66,582,927.11 63,911,111.62
Calculation of distributable shareholders’ equity, 31 Dec
EUR 2022 2021
Unrestricted shareholders’ equity
reserve
42,540,499.12 42,540,499.12
Retained earnings 14,385,253.40 9,749,865.95
Net profit 7,569,610.09 9,533,182.05
Total 64,495,362.61 61,823,547.12
68
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
nancial statements
Notes to the consolidated
nancial statements
Financial statements
of the parent
company
Signatures Auditor’s Report
Notes to the nancial
statements of the parent
company
Signatures to the Board’s Report and
Financial Statements
Helsinki, 10 February 2023
Robert Ingman Martti Ala-Härkönen Santtu Elsinen
Chair of the Board of Directors
Sari Leppänen Seppo Ruotsalainen Outi Taivainen
Timo Levoranta
President & CEO
69
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
nancial statements
Notes to the consolidated
nancial statements
Financial statements
of the parent
company
Notes to the nancial
statements of the parent
company
Auditor’s Report
Signatures
Auditor’s Note
A report of the audit has been submitted today.
Helsinki, 10 February 2023
Ernst & Young Oy
Terhi Mäkinen
Authorised Public Accountant
70
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
nancial statements
Notes to the consolidated
nancial statements
Financial statements
of the parent
company
Notes to the nancial
statements of the parent
company
Auditor’s Report
Signatures
Auditor’s report (Translation of the Finnish original)
Opinion
We have audited the financial statements of Digia Plc
(business identity code 0831312-4) for the year ended
31 December, 2022. The financial statements comprise
the consolidated income statement, statement of
comprehensive income, balance sheet, cash flow
statement, statement of changes in equity and notes,
including a summary of significant accounting policies,
as well as the parent company’s income statement,
balance sheet, cash flow statement and notes.
In our opinion
• the consolidated financial statements give a true and
fair view of the group’s financial position as well as its
financial performance and its cash flows in accordance
with International Financial Reporting Standards (IFRS)
as adopted by the EU.
• the financial statements give a true and fair view of the
parent company’s financial performance and financial
position in accordance with the laws and regulations
governing the preparation of financial statements in
Finland and comply with statutory requirements.
Our opinion is consistent with the additional report
submitted to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with good
auditing practice in Finland. Our responsibilities under
good auditing practice are further described in the
Auditor’s Responsibilities for the Audit of Financial
Statements
section of our report.
We are independent of the parent company and of
the group companies in accordance with the ethical
requirements that are applicable in Finland and are
relevant to our audit, and we have fulfilled our other
ethical responsibilities in accordance with these
requirements.
In our best knowledge and understanding, the non-audit
services that we have provided to the parent company
and group companies are in compliance with laws
and regulations applicable in Finland regarding these
services, and we have not provided any prohibited non-
audit services referred to in Article 5(1) of regulation (EU)
537/2014. The non-audit services that we have provided
have been disclosed in note 3.7 to the consolidated
financial statements and note 5 to the parent company
financial statements.
We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our
professional judgment, were of most significance in our
audit of the financial statements of the current period.
These matters were addressed in the context of our audit
of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate
opinion on these matters.
We have fulfilled the responsibilities described in the
Auditor’s Responsibilities for the Audit of the Financial
Statements
section of our report, including in relation
to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our
assessment of the risks of material misstatement of the
financial statements. The results of our audit procedures,
including the procedures performed to address the atters
below, provide the basis for our audit opinion on the
accompanying financial statements.
We have also addressed the risk of management
override of internal controls. This includes consideration
of whether there was evidence of management bias that
represented a risk of material misstatement due to fraud.
To the Annual General Meeting of Digia Plc
71
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
nancial statements
Notes to the consolidated
nancial statements
Financial statements
of the parent
company
Notes to the nancial
statements of the parent
company
Signatures
Auditor’s Report
Key Audit Matter How our audit addressed the Key Audit Matter
Revenue Recognition
We refer to note 3.2 of the consolidated financial statements.
The group has multiple sources of revenue, including work performed by people, licenses and
maintenance of own products, products of third parties and their maintenance as well as
services.
Revenue on work performed by people is recognized over time in accordance with progress.
Fixed price projects are recognized over time based on their percentage of completion. Licenses
of own products are recognized when the product has been delivered and maintenance is
recognized over time during the contract period. Revenue on third-party licenses is recognized
on delivery. If Digia bears the responsibility of the product, revenue is recognized on gross basis
and if third party bears the responsibility, the margin or commission is recognized as revenue.
Revenue from services is recognized over time during the agreement period.
There is a risk in revenue recognition due to various terms and conditions included in the sales
contracts and management judgment required in applying percentage of completion method.
Because of the risk associated with the correct timing of revenue recognition, revenue recogni-
tion was determined to be a key audit matter and a significant risk of material misstatement
referred to in EU Regulation No 537/2014, point (c) of Article 10(2).
Our audit procedures to address the risk of material misstatement in respect of revenue
recognition included, among others, following procedures:
• We evaluated revenue recognition principles applied by the group from the perspective of
applicable accounting standards.
• We evaluated the applied revenue recognition methods in relation to the terms and conditions
of sales contracts.
• We tested correctness of the timing of revenue recognition.
• Concerning fixed price projects, we compared estimates of project revenues to sales agree-
ments.
• We evaluated estimates of remaining amount of work in order to recognize potential loss-ma-
king projects.
• We evaluated appropriateness and sufficiency of the notes relating to group’s revenues.
Valuation of Goodwill
We refer to note 7.1 of the consolidated financial statements.
At the balance sheet date of 31.12.2022 the value of goodwill amounted to 86 million euros,
representing 54 % of total assets and 121 % of shareholders’ equity.
Valuation of goodwill was a key audit matter because
• the annual impairment testing process is complex, it includes estimates and it requires
significant management judgment,
• impairment testing is based on management’s assumptions relating to market and economic
conditions, and
• goodwill is significant to the financial statements.
The Board of Directors has determined that the group in its entirety is a cash generating unit
subject to impairment test. The recoverable amount is determined based on value in use calcu-
lation. The outcome of the calculation may vary significantly when the underlying assumptions
change. Value in use is dependent on several assumptions such as revenue growth, operating
profit and discount rate applied. Changes in these assumptions may lead in impairment of
goodwill.
Our audit procedures included, among others, following procedures:
• We evaluated with the assistance of our valuation specialists the appropriateness of underlying
assumptions and methods applied by the management with regards to following assumptions:
forecasted revenue growth, operating profit percentage and weighted average cost of capital
on discounted cash flows.
• We evaluated with the assistance of our valuation specialists the appropriateness of sensitivity
analysis and whether any reasonably possible change in an underlying assumption could
cause the book value to exceed the value in use.
• We compared future estimates to the budget approved by the Board of Directors, we compared
the available historical information to actual outcome, and we tested the mathematical
accuracy of the impairment calculation.
• We compared note 7.1 of impairment testing to the disclosure requirements of the applicable
accounting standard and evaluated appropriateness and sufficiency of information included
the note.
72
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
nancial statements
Notes to the consolidated
nancial statements
Financial statements
of the parent
company
Notes to the nancial
statements of the parent
company
Signatures
Auditor’s Report
Key Audit Matter How our audit addressed the Key Audit Matter
Business combinations
We refer to note 3.5 of the consolidated financial statements.
The group executed three acquisitions during the financial year. Acquisitions were a key audit
matter because of them being at a total level significant and they comprise of management
judgement related to the valuation processes and methods used. Management judgment
was involved especially in determining fair value of assets and liabilities acquired as well as in
allocation of purchase price into identifiable immaterial assets, such as customer relationships,
brand and technologies.
Our audit procedures included, among others, following procedures:
• We evaluated applied group’s accounting policies from the perspective of IFRS 3 Business
Combinations standard.
• We evaluated with the assistance of our valuation specialists processes and methods applied by
the management to identify assets and liabilities acquired and to determine their fair values.
• We evaluated appropriateness and sufficiency of notes related to business combinations.
73
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
nancial statements
Notes to the consolidated
nancial statements
Financial statements
of the parent
company
Notes to the nancial
statements of the parent
company
Signatures
Auditor’s Report
Responsibilities of the Board of Directors and the
Managing Director for the Financial Statements
The Board of Directors and the Managing Director are
responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance
with International Financial Reporting Standards (IFRS)
as adopted by the EU, and of financial statements that
give a true and fair view in accordance with the laws
and regulations governing the preparation of financial
statements in Finland and comply with statutory
requirements. The Board of Directors and the Managing
Director are also responsible for such internal control as
they determine is necessary to enable the preparation
of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of
Directors and the Managing Director are responsible
for assessing the parent company’s and the group’s
ability to continue as going concern, disclosing, as
applicable, matters relating to going concern and using
the going concern basis of accounting. The financial
statements are prepared using the going concern basis
of accounting unless there is an intention to liquidate the
parent company or the group or cease operations, or
there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the
Financial Statements
Our objectives are to obtain reasonable assurance on
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance
with good auditing practice will always detect a material
misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if,
individually or in aggregate, they could reasonably be
expected to influence the economic decisions of users
taken on the basis of the financial statements.
As part of an audit in accordance with good auditing
practice, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement
of the financial statements, whether due to fraud
or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness
of the parent company’s or the group’s internal control.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
• Conclude on the appropriateness of the Board of
Directors’ and the Managing Director’s use of the going
concern basis of accounting and based on the audit
evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the parent company’s or the
group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the
related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future
events or conditions may cause the parent company or
the group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content
of the financial statements, including the disclosures,
and whether the financial statements represent the
underlying transactions and events so that the financial
statements give a true and fair view.
• Obtain sufficient appropriate audit evidence regarding
the financial information of the entities or business
activities within the group to express an opinion on the
consolidated financial statements. We are responsible
for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit
opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and
communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged
with governance, we determine those matters that
were of most significance in the audit of the financial
statements of the current period and are therefore the
key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not
74
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
nancial statements
Notes to the consolidated
nancial statements
Financial statements
of the parent
company
Notes to the nancial
statements of the parent
company
Signatures
Auditor’s Report
be communicated in our report because the adverse
consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such
communication.
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual
General Meeting on 21.3.2022.
Other information
The Board of Directors and the Managing Director
are responsible for the other information. The other
information comprises the report of the Board of Directors
and the information included in the Annual Report,
but does not include the financial statements and our
auditor’s report thereon. We have obtained the report of
the Board of Directors prior to the date of this auditor’s
report, and the Annual Report is expected to be made
available to us after that date.
Our opinion on the financial statements does not cover
the other information.
In connection with our audit of the financial statements,
our responsibility is to read the other information
identified above and, in doing so, consider whether the
other information is materially inconsistent with the
financial statements or our knowledge obtained in the
audit, or otherwise appears to be materially misstated.
With respect to report of the Board of Directors, our
responsibility also includes considering whether the
report of the Board of Directors has been prepared in
accordance with the applicable laws and regulations.
In our opinion, the information in the report of the Board of
Directors is consistent with the information in the financial
statements and the report of the Board of Directors has
been prepared in accordance with the applicable laws
and regulations.
If, based on the work we have performed on the other
information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material
misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Helsinki 10.2.2023
Ernst & Young Oy
Authorized Public Accountant Firm
Terhi Mäkinen
Authorized Public Accountant
75
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
nancial statements
Notes to the consolidated
nancial statements
Financial statements
of the parent
company
Notes to the nancial
statements of the parent
company
Signatures
Auditor’s Report
Independent Auditor’s Report on Digia Oyj’s
ESEF-Consolidated Financial Statements
(Translation of the Finnish original)
To the Board of Directors of Digia Oyj
We have performed a reasonable assurance engagement
on the iXBRL tagging of the consolidated financial statements
included in the digital files 743700QVAG6OXK5OP587-2022-
12-31-fi.zip of Digia Oyj for the financial year 1.1.-31.12.2022 to
ensure that the financial statements are marked/tagged with
iXBRL in accordance with the requirements of Article 4 of EU
Commission Delegated Regulation (EU) 2018/815 (ESEF RTS).
Responsibilities of the Board of Directors and
Managing Director
The Board of Directors and Managing Director are responsible
for the preparation of the Report of Board of Directors and
financial statements (ESEF financial statements) that comply
with the ESESF RTS. This responsibility includes:
• preparation of ESEF-financial statements in accordance
with Article 3 of ESEF RTS
• tagging the consolidated financial statements included
within the ESEF- financial statements by using the iXBRL
mark ups in accordance with Article 4 of ESEF RTS
• ensuring consistency between ESEF financial statements
and audited financial statements
The Board of Directors and Managing Director are also res-
ponsible for such internal control as they determine is neces-
sary to enable the preparation of ESEF financial statements in
accordance with the requirements of ESEF RTS.
Auditor’s Independence and Quality Control
We are independent of the company in accordance with the
ethical requirements that are applicable in Finland and are
relevant to the engagement we have performed, and we
have fulfilled our other ethical responsibilities in accordance
with these requirements.
The auditor applies International Standard on Quality Cont-
rol (ISQC) 1 and therefore maintains a comprehensive
quality control system including documented policies and
procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory
requirements.
Auditor’s Responsibilities
In accordance with the Engagement Letter we will express an
opinion on whether the electronic tagging of the consolidated
financial statements complies in all material respects with
the Article 4 of ESEF RTS. We have conducted a reasonable
assurance engagement in accordance with International
Standard on Assurance Engagements ISAE 3000.
The engagement includes procedures to obtain evidence on:
• whether the tagging of the primary financial statements in
the consolidated financial statements complies in all mate-
rial respects with Article 4 of the ESEF RTS
• whether the tagging of the notes to the financial state-
ments and the entity identifier information in the con-
solidated financial statements complies in all material
respects with Article 4 of the ESEF RTS
• whether the ESEF-financial statements are consistent with
the audited financial statements
The nature, timing and extent of the procedures selected
depend on the auditor’s judgement including the assessment
of risk of material departures from requirements sets out in
the ESEF RTS, whether due to fraud or error.
We believe that the evidence we have obtained is sufficient
and appropriate to provide a basis for our statement.
Opinion
In our opinion the tagging of the consolidated financial sta-
tement included in the ESEF financial statement of Digia Oyj
for the year ended 31.12.2022 complies in all material respects
with the requirements of ESEF RTS.
Our audit opinion on the consolidated financial statements
of Digia Oyj for the year ended 31.12.2022 is included in our
Independent Auditor’s Report dated 10.2.2023. In this report,
we do not express an audit opinion any other assurance on
the consolidated financial statements.
Helsinki 1.3.2023
Ernst & Young Oy
Authorized Public Accountant Firm
Terhi Mäkinen
Authorized Public Accountant
76
REPORT BY THE BOARD OF
DIRECTORS AND FINANCIAL
STATEMENTS
Board of Directors’
Report 2022
Consolidated
nancial statements
Notes to the consolidated
nancial statements
Financial statements
of the parent
company
Notes to the nancial
statements of the parent
company
Signatures
Auditor’s Report
