WE SEE WEALTH
AS AN ENGINE TO
DRIVE SUSTAINABLE
PROGRESS
ANNUAL REPORT 2022
EVLI PLC
22
GovernanceResponsibilityBusiness Overview GovernanceResponsibility Financial Review
Contents
BUSINESS OVERVIEW
Evli in brief ................................................................................................................. 3
CEO's review ........................................................................................................... 5
Highlights of 2022 ................................................................................................ 7
Business model ..................................................................................................... 9
Megatrends & Strategy ................................................................................. 10
FINANCIAL REVIEW
Financial figures ................................................................................................ 48
Graphs of the financial development ................................................... 49
Board of Director’s report ......................................................................... 50
Shares and shareholders ........................................................................... 56
Information for shareholders and investors ................................. 59
Capital adequacy .............................................................................................. 60
Calculation of key ratios ............................................................................... 61
Financial statement 1.1.-31.12.2022 .................................................... 62
Board of Director’s proposal to the General
Meeting for profit distribution ............................................................... 122
Auditor’s report ............................................................................................... 123
CORPORATE RESPONSIBILITY
Wealth and responsibility drive positive change together ..... 15
Responsible products and services ...................................................... 19
Responsible governance .............................................................................. 26
Responsible employer ................................................................................... 29
Reporting practices ......................................................................................... 33
GRI content index ............................................................................................. 35
Annex: Task Force on Climate-related
Financial Disclosures report ..................................................................... 40
GOVERNANCE
Corporate governance statement 2022 .........................................129
Remuneration policy ......................................................................................137
Remuneration report 2022 ...................................................................... 140
Board of Directors .......................................................................................... 144
Executive Group ............................................................................................... 145
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GovernanceResponsibilityBusiness Overview GovernanceResponsibility Financial Review
Finland’s leading
asset manager
Founded in 1985
Employees ~300
Sales in 15 countries
Finland’s 3rd largest
EUR 16.0 Billion
2015
Listed on the Nasdaq
Helsinki main list since
Assets under
management
trough own offices and co-operation partners
fund management company
We see wealth as an engine to drive progress. We draw on our heritage,
broad expertise and Nordic values to grow and manage wealth for
institutions, corporations and private persons in a responsible way.
Evli is the leading asset manager in Finland* offering a broad range of
investment and asset management services through the business areas
Wealth Management and Investor Clients, and Advisory and Corporate
Clients. The business areas are supported by Group operations.
The Wealth Management and Investor Clients segment offers mutual
funds, asset management and capital markets services as well as
alternative investment products. The Advisory and Corporate Clients
segment provides advisory services related to M&A transactions,
incentive program design and administration services and investment
research for listed companies. Responsible investing is integrated in
every investment decision and our expertise is widely acknowledged by
our clients. Evli has Finland's best expertise in responsible investment.
Read more: evli.com
Kantar Prospera External Asset Management Finland 2015, 2016, 2017, 2018, 2019, 2021, 2022
Kantar Prospera Private Banking 2019, 2020, 2021, 2022 Finland
SFR Scandinavian Financial Research Institutional Investment Services Finland 2017, 2021, 2022
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GovernanceResponsibilityBusiness Overview GovernanceResponsibility Financial Review
Branding reflects Evli’s
competitive advantage
in different markets
1
Kantar Prospera External Asset Management Finland 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021. 2022
Finland and Sweden
Comprehensive Wealth Management and
Investment Banking services
Internationally
Nordic fund management boutique for
institutional investors
Wealth Management and Investor Clients
- Product and service offering
- Private Banking and Evli Digital wealth management
services
- Institutional Asset Management
- Public and private market funds
- Capital Markets services
- Finland’s 3rd largest Fund Management
Company; market share 6.8%
- Employs 208 investment specialists in Finland
and Sweden
- Evli has been ranked the best institutional
asset manager in Finland for six years and
the second best for four years, based on the
overall quality assessment
1
Advisory and Corporate Clients
- Product and service offering
- Corporate Finance: Financial advisor in financial
arrangements for listed and unlisted companies
- Evli Alexander Incentives: Planning and administration
of compensation and incentive plans for listed and
unlisted companies
- Evli Research Partners: Research services to small and
mid-sized listed companies
- Employs 83 investment specialists in Finland
and Sweden
Evli’s operations are divided into two client segments
Sales through co-operation partnersSales through Evli
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GovernanceResponsibilityBusiness Overview GovernanceResponsibility Financial Review
Exceptional times call for
collaboration and foresight
The year 2022 will be remembered as a year of
upheaval and great uncertainty. In many respects it
was also the year when the world gravitated back to
fundamentals. Evli performed well during this turbulent
year, and also succeeded to deliver on its strategy.
Strengthened with an even sharper focus on wealth
management with the successful demerger of banking
services and the full integration of EAB Group Plc
(“EAB”), Evli is now well equipped to pursuit its goal of
becoming the leading wealth management firm in the
Nordics.
The year 2022 has been exceptional on several fronts. As the world
started to recover from the pandemic, Russia invaded Ukraine in
February, causing immense human suffering and upending the global
economy that was already descending into a fragile state with rising
inflation. The war in Ukraine sent shocks to energy prices, including gas,
vital for many large European economies, accelerating inflation from
being a temporary disturbance to becoming structural. In response
to this central banks, both in the EU and the US, raised interest rates
aggressively in 2022 and will continue the interest rate hikes in 2023.
CEO’S REVIEW
Geopolitical tensions, mainly between the US and China, but also
elsewhere in the world, further accelerated the restructuring of supply
chains set in motion by pandemic-infused lockdowns. The tendency
towards protectionism showed little signs of receding, and polarisation,
both financial and political, was on a rise.
Amid geopolitical unrest and tumultuous market developments, the
effects of climate change have never been as visible as they were during
2022.
As we manoeuvre short-term challenges, we need to keep our sight
steadfast on the future as well and act with foresight.
Satisfactory result after a record-breaking year in 2021
In 2022, the circumstances were unprecedented. In this context,
Evli’s business developed satisfactorily even though both revenue and
operating profit declined. Against the backdrop that Evli delivered its
best result ever in 2021, our net revenue for the year 2022 of EUR 96.1
million (2021: EUR 116.2) was more satisfactory, as was our operating
profit of EUR 30.9 million compared to the previous year’s record of EUR
56.6 million. Our return on equity was 20.4 percent (50.4). The ratio of
recurring revenue to operating costs was 123 percent (135%). During
2022 our one-off charges amounted to EUR 6.3 million mainly due to
integration costs of EAB.
During this tumultuous year, we still succeeded in delivering on our
strategic objectives. We finalised the demerger of our bank operations
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GovernanceResponsibilityBusiness Overview GovernanceResponsibility Financial Review
and successfully integrated EAB into Evli. The expected synergy benefits
from the merger of EUR 8 million is expected to show in the 2023
figures.
However, Evli was not immune to the global turbulence. Lower market
capitalisations had negative effects on Evli’s businesses. In the Wealth
Management and Investor Clients segment net revenue decreased by
17 percent to EUR 75.7 million (EUR 91.4 million) and in the Advisory and
Corporate Clients segments revenues decrease by 19 percent to EUR
16.4 million (EUR 20.2 million). At the end of 2022, our client assets under
management decreased to EUR 16.0 billion, down from last year’s all-
time record of EUR 17.5 billion.
The current market situation affected international clients as well,
resulting in net redemptions. The fact that Finland shares a 1300 km
long border with an aggressive state who unprovoked invaded Ukraine
temporarily swayed international clients’ confidence in Finland as a
stable economic region. Confidence was largely reinstalled during
2022, partly thanks to Finland’s pending Nato membership status. The
long-term rationale for investing in the Nordic region is still valid: in a
turbulent world the stability of the Nordic countries will increasingly be a
competitive advantage for international clients looking for predictability.
Strong interest for alternative investment funds
The interest for our alternative investment funds remained strong.
Evli’s alternative investment funds raised almost EUR 500 million in net
subscriptions in 2022, bringing Evli’s client assets under management in
alternative funds to EUR 2.4 billion at the end of the year. During the year
we raised EUR 104 million in our Evli Infrastructure Fund II, showing
that unlisted infrastructure has emerged as one of the key alternative
asset classes alongside private equity, private debt, and real estate. This
wide interest in infrastructure can be seen as a sign that investors are
increasingly interested in investments that drive positive change.
During the year we also successfully closed our Evli Impact Forest Fund,
giving our clients an opportunity to invest in the world’s leading forest
funds globally. This is another example of a fund where our clients can
make an impact and support sustainable development as forests are in
a key position for lowering the carbon footprint and reducing the effects
of climate change.
With the acquisition of EAB, we complemented our range in alternative
investments with a new real estate funds, a logistics fund, a renewable
energy fund and a private equity fund. Now we can offer our clients a
comprehensive offering comprising of infrastructure, forest, real estate,
renewable energy, private equity and buyout investments.
Collaborating for a sustainable future
We see wealth as an engine to drive positive progress and take our
responsibility as resource allocators in the financial industry seriously.
We can clearly see that our clients are interested in making an impact.
Our long-term efforts to integrate sustainability in investment decisions
was again rewarded in 2022 as we were announced having the
best responsible investment expertise in Finland among large asset
management companies.
1
To truly make an impact we must move beyond ESG
2
measures towards
real actions. Climate change also changes the time horizon: while we
always take our clients’ personal objectives for their wealth as a starting
point, including investment horizon, it’s evident that long-term returns
are compromised in faltering societies that are ridden by climate
change. Investing with foresight has never been more important. Climate
change is a challenge we share globally. This calls for collaboration on
large scale, and the investment community plays an important role.
Human rights are an integral part of ESG activities. Evli is participating
in a project initiated by UNICEF Finland to increase the understanding
of how Finnish companies tackle children’s rights. Our role in this project
is to uncover how Finnish companies report on children’s rights to
investors.
Well-poised to tackle the future
I take a positive view of the future: we are returning to normalcy in
many ways. Further interest rate rises are to be expected, most likely
making a global recession inevitable, but necessary to rein in inflation.
A world where money has no price is an unnatural world with extreme
consequences. Investors need to accept that previous bull years’
returns may be as good as they will ever get, and that we are now
returning to levels that are closer to the average returns. In some ways,
this can make it easier to predict the future.
Still, in a world ridden by geopolitical upheaval and polarisation-infused
unrest, uncertainty is bound to persist. I firmly believe that the need
for a trusted advisor, a pilot that scans wide to see far, will only be
heightened in a world fraught by turmoil and bad visibility.
The accumulated wealth is growing in Finland and in the Nordic
countries, as so-called baby boomers are increasingly transferring
their wealth to younger generations. The need for a wealth manager
for clients who do not settle for second best and who want to be piloted
through uncertainty in a responsible way, will increase. We continue
to have our clients’ confidence and have for 10 years in a row been at
the top of the list when it comes to being the most preferred wealth
management partner in Finland.
3
We are committed to continue to deliver on our long-term goals. With
the successful integration of EAB, we are now well poised to pursuit our
goal of becoming the leading wealth management firm in the Nordics
who invests responsibly for profitable growth, and the leading expert on
the Nordic region for international clients.
I want to thank our clients, shareholders and my colleagues at Evli. Let’s
continue our journey together for a sustainable future!
Maunu Lehtimäki
CEO
1
SFR Scandinavian Financial Research Institutional Investment Services Finland 2017, 2021, 2022
2
ESG stands for Environmental, Social, and Governance
3
Kantar Prospera External Asset Management Finland 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020,
2021, 2022
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Highlights for 2022
03/2022
Evli Finnish Small Cap the best Finnish equity
fund
Evli Finnish Small Cap fund wan the award for the best
Finnish equity fund, for the third time, at the annual fund
and fund house awards organised by the investment
research firm Morningstar. The winners in the fund
categories are selected based on 1, 3 and 5-year returns
and 3 and 5-year risk.
Read more: evli.com
04/2022
Evli’s funds continued to be rewarded at the
Lipper Fund Awards 2022
Evli Short Corporate Bond fund and Evli Nordic equity
fund were awarded as the best funds in their respective
categories in Europe at the Lipper Fund Awards. In
addition, Evli Short Corporate Bond fund was awarded
in Germany and France and Evli Finnish Small Cap equity
fund as the best fund in its category in the Nordics. Evli’s
funds have been rewarded at the Lipper Fund Awards for
several years.
Read more: evli.com
04/2022
Evli Bank Plc became Evli Plc
Evli sharpened its focus on responsible wealth
management and became Evli Plc, following the partial
demerger of Evli Bank Plc. The aim is to be even better
equipped to help institutions, corporations and private
persons grow their wealth in a way that renders benefits
on a private, institutional, and societal level.
Read more: evli.com
06/2022
Saving the Baltic Sea together with the John
Nurminen Foundation
Evli continued its cooperation with the John Nurminen
Foundation to protect the Baltic Sea. Evli’s support to the
foundation focuses on projects that improve the marine
environment by reducing pollution and environmental
problems in the Baltic Sea.
Read more: evli.com
Consistent top positions
for Evli in institutional asset
management surveys
Evli was ranked again among the best institutional asset
manager in overall quality assessment in Finland in the Kantar
Prospera “External Asset Management 2022 Finland” and in
the SFR Institutional Client -surveys. Evli has been leading the
Kantar Prospera -survey for the last 10 years and the SFR
survey for the last 7 years.
Read more: evli.com
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Evli again Finland’s best in
responsible investing
Evli was awarded for the second year in a row the
”Responsible Investment Award” for the best responsible
investment expertise in Finland in the SFR’s institutional asset
management survey.
Read more: evli.com
06/2022
Evli rated Finland’s best fund management company
Evli was rated the best fund management company in Finland, when
comparing the Morningstar qualitative ratings of investment funds
registered in Finland. The comparison includes those fund management
companies with at least ten Morningstar-rated investment funds
registered in Finland.
Read more: evli.com
11/2022
Evli started a joint project with UNICEF to advance the
integration of child rights into business operations
Evli participates in a project led by UNICEF Finland focusing on
increasing companies’ understanding of child rights and their ability
to integrate child rights into business operations. The project seeks to
map the attitudes and concrete actions of companies and investors on
child rights.
Read more: evli.com
10/2022
EAB Group Plc became part of Evli Plc
Evli Plc and EAB Group Plc merged to form Evli Plc, providing an even
more comprehensive range of wealth management products and
services. The merger enabled Evli to offer an even more extensive
range of alternative investment products, digital service solutions,
and remuneration and personnel fund services in addition to its
comprehensive range of more traditional asset management services.
Read more: evli.com
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BUSINESS PROCESSESBUSINESS AREAS
ADDED VALUE AND IMPACTSRESOURCES
STRATEGY
More information on
pages 11-13
VALUES
Entrepreneurship, Valuable
relationships, Learning, Integrity
CLIENTS
- Products and services that
correspond to clients’ needs
and goals
- Opportunity to tailor service
solutions
- Professional and competent
service
- Responsible investments
PERSONNEL
- 300 investment specialists
- Salary and bonuses EUR 34.2
million
- Pension expenses EUR 5.0 million
OWNERS AND INVESTORS
- Dividend proposal EUR 1.15/share
(dividend EUR 0.80/share and
EUR 0.35/share from reserve for
unrestricted equity)
- Equity/share EUR 5.28
- Stable development
- Responsible investment
SOCIETY AND ENVIRONMENT
- Investments EUR 3.6 million
- Paid taxes EUR 5.8 million
- Collaboration, support and
sponsorship with universities as
well as sports, culture and the
environment
WEALTH MANAGEMENT AND
INVESTOR CLIENTS
Wealth management services, mutual
funds, various capital market services
and alternative investment products
to private persons, corporations and
institutions
ADVISORY AND CORPORATE
CLIENTS
Corporate advisory services, incentive
plan design and administration as well
as investment research for companies
of different sizes
Self-developed
products and
services
Perseverance
and goal
orientation
Comprehensive support functions
and controls including IT, financial
administration, back-office, marketing
communication & IR, legal & compliance
Individual service
combining traditional
and digital service
models and channels
Stewardship
thinking and
responsibie
operations
PERSONNEL
- 300 investment specialists
OFFICES AND DISTRIBUTION
NETWORK
- 3 offices: Helsinki, Turku and
Stockholm
- Distribution through partners
and own offices in 15 countries
INTANGIBLE ASSETS
- Products and services
- Brand
- Client relationships
- Social network: partners,
distribution network and
community relations
FINANCIAL RESOURCES
- Balance sheet EUR 366.6 million
- Equity EUR 143.4 million
- Assets under Management
EUR 16.0 billion
- Net revenue EUR 96.1 million
PROCESSES
- Product development
- Sales processes
- Utilization of automation,
artificial intelligence and
robotization
- Personnel management
Added value with stable earnings development
Our ambition is to be the leading wealth
manager and a responsible, proactive
capital allocator in the Nordic region.
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After a long period of low interest rates and inflation,
the world could end up in stagflation.
Megatrends
We’re living in a time of great upheaval and change
The world is changing due to digital transformation, polarisation,
financial markets behaving abnormally and geopolitical unrest. While
short-term geopolitical turbulence and changes in the economy may
affect investors’ immediate incentives to take a broader view of the
world, climate change is forcing everyone to think about the long-term.
A new generation is stepping into positions within boards and in
leadership positions, looking at the world differently and prioritising
different issues than their predecessors. This new generation
demands concrete action to put the world on a sustainable path, both
environmentally and societally.
Responsibility has become part of investment decision-making. Climate
change requires cooperation on an unprecedented scale. Different
actors need to work together across national borders and with supply
chains, competitors and customers. It forces companies to reassess
their own agenda, in order to enable sustainable development at all
levels: not just economic, but also environmental and societal. The world
is more prosperous than at any time in history. The wise allocation
of this capital is crucial to putting the world on a sustainable path.
It requires broad understanding, curiosity, and a strong sense of
foresight.
MEGATRENDS & STRATEGY
Russia’s invasion of Ukraine creates a long lasting conflict
in a multilateral world where Asian influence is growing.
SHORT-TERM LONG-TERM
A new generation of consumers, workers and leaders demand concrete action to put the
world on a sustainable path, both environmentally and societally.
Climate change has forced the world to grapple with perhaps the greatest global
challenge in history. It will require cooperation on an unprecedented scale.
GEOPOLITICAL UNREST
CLIMATE CHANGE
MACROECONOMIC TURMOIL
GENERATION SHIFT
1111
Growing client’s wealth responsibly
Evli aims to be the leading asset manager and responsible capital
allocator in the Nordic region. The cornerstones of growth are finding and
developing new investment solutions, leveraging digitalisation, creating
a unique client experience and integrating responsibility into business
operations.
Creating a unique client experience
Evli’s vision is to be “Simply Unique”, with the aim of simplifying both its own
and its clients’ investment processes and offering unique product and
service solutions to clients. Succeeding in this will enable Evli to achieve
its business objectives of clear revenue growth, strong profitability and a
competitive return on equity.
Revenue growth will be pursued primarily organically and, where
possible, through acquisitions. Evli offers a comprehensive range of
investment and wealth management product and service solutions, as
well as advisory services related to corporate finance, M&A and planning
and administration of compensation and incentive plans. The focus is
on wealth management, where growth is sought by increasing both the
assets under management and the number of new client relationships.
In addition to Finland and Sweden, Evli also sees growth potential in asset
management in other Nordic countries and Europe.
Evli is focused on serving wealthy and prosperous individuals,
organisations, and institutions. Evli has a demanding client base, which
is why it is constantly prioritising to find and develop new investment
solutions. The work towards development and innovation draws on both
the strong expertise and specialised knowledge of businesses and their
different perspectives on markets and client needs.
Evli’s constant pursuit is to create an even more scalable business model. Digitalisation
will play an important role in this, as Evli streamlines its investment and brokerage
processes. The aim is to make it as simple and clear as possible for clients to do
business with Evli. The service experience will seamlessly integrate traditional personal
service with the use of electronic channels and digital services.
The unique service experience is underpinned by Evli’s corporate culture, which is
based on a mindset where the client’s interests always come first and where the
client’s assets are managed as if they were our own. It is based on hard work and
resourcefulness, customer service and teamwork, building excellence and integrity in
all our activities. Moreover, in an increasingly unpredictable world, Evli strives to be one
step ahead of our clients so that we can guide them in an uncertain future.
Responsibility has already long been a part of Evli’s investment activities. Evli’s
ability to integrate responsibility throughout its operations is essential to creating
value. In asset management, Evli’s most important area of operation, factors
related to sustainability are systematically integrated into investment activities and
portfolio management. Evli is constantly looking for new ways to further improve
the sustainability of its products and services. More about Evli’s sustainability and
responsible investment practices on page 14-46.
Evli’s long-term goal is to be a growing and profitable asset manager with a unique
client base and a broader international business.
Financial objectives
Evli’s strategy is guided by the financial targets it has set for itself:
- Recurring revenues to exceed operating costs by an average of 130 percent.
- Doubling assets under management from current levels over the long-term.
- Maintaining return on equity at an average annual rate above 25 percent.
GovernanceResponsibilityBusiness Overview GovernanceResponsibility Financial Review
MEGATRENDS & STRATEGY
Strategy
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GEOPOLITICAL
UNREST
MACROECONOMIC
TURMOIL
GENERATION
SHIFT
CLIMATE
CHANGE
ENTREPRENEURSHIP
An entrepreneurial attitude gives everyone
the freedom to act on opportunities.
CLIENT EXPERIENCE
NEW
INVESTMENT OPPORTUNITIES
DIGITALISATION
Our ambition is to be the
leading wealth
manager and a
responsible, proactive
capital allocator in the
Nordic region.
VALUABLE RELATIONSHIPS
We value our relationship with each other and
want to help our colleagues succeed.
We are inspired by and want to inspire our
clients. We walk along side them.
Increasing recurring revenues to
exceed operating costs by 130% on
average
Doubling assets under management
from current levels in the long-
term
Return on equity exceeding 25
percent on average per annum
INTEGRITY
We stand behind our decisions and have the
courage to say no.
LEARNING
We always strive to become better and are
curious to explore new opportunities.
Megatrends
MEGATRENDS & STRATEGY
RESPONSIBILITY
Values Strategic focus areas Targets Ambition
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CORNERSTONES OF THE STRATEGY
CLIENT EXPERIENCE
- Increasing the client base in Finland and internationally
- Perceived as ”Simply Unique” by clients
NEW INVESTMENT OPPORTUNITIES
- Mutual Funds and alternative investment products to private clients and
institutions
- Development of the integrated corporate service model to corporate
clients
RESPONSIBILITY
- Responsible products and services
- Positive influence on society and the environment
DIGITALISATION
- New digital investment solutions and service models
- Streamline investment and brokerage processes
2022 OUTCOMES
CLIENT EXPERIENCE
- Total assets under management of EUR 16.0 billion (2021: EUR 17.5 billion)
- International assets under management decreased to EUR 2.2 billion (2021: EUR 3.3
billion)
- Evli has been ranked in top positions in Kantar Prospera’s survey for 10 consecutive
years in terms of overall quality: the first in six years and the second in four years
NEW INVESTMENT OPPORTUNITIES
- Assets under management in mutual funds EUR 8.6 billion (2021: EUR 10.6 billion) and
in alternative investment funds EUR 2.4 billion (2021: EUR 1.6 billion)
- New mutual funds: Evli Nordic Small Cap equity fund and Evli USA Growth factor
fund
- New alternative investment fund Evli Infrastructure Fund II
- New Evli Leveraged Loan Fund (AIF)
RESPONSIBILITY
- Stronger climate commitment & biodiversity work: signing the Net Zero Asset Managers
initiative and joining the Taskforce on Nature-related Financial Disclosures forum
- Beginning the study with UNICEF Finland on how investors and asset managers can
promote children’s rights
- Systematic engaging with companies independently and together with other
investors
- Evli was awarded for Finland’s best expertise in responsible investment
DIGITALISATION
- Modifications to processes and systems in relation to the demerger in April 2022 and the
merger of EAB Group Plc in October 2022
- New features in the My Evli online service
CLIENT EXPERIENCE
- Deepen the presence in current markets
- Stronger presence in Sweden
- Expand the customer base
- The best and most used asset manager in Finland
NEW INVESTMENT OPPORTUNITIES
- Launch 1-2 new traditional mutual funds
- Launch 2-3 new alternative investment fund
RESPONSIBILITY
- Deepen ESG integration in portfolio management
- Develop the climate, biodiversity and human rights work
- Continued development of ESG integration, through among others internal ESG
training and the development of data capabilities and reporting
- Further improving the diversity of personnel
DIGITALISATION
- Development of internal processes
- Process developments to support the strategic focus areas
- Finalizing the process for becoming a client
- Development of new functionalities for the My Evli online service
-
TARGETS 2023
1
Kantar Prospera External Asset Management Finland 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022
2
SFR Scandinavian Financial Research Institutional Investment Services Finland 2017, 2021, 2022
GovernanceFinancial ReviewBusiness Overview
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RESPONSIBILITY
Responsibility is one of Evli’s strategic focus areas and
the company is actively developing its procedures. During
the year 2022, Evli strengthened its climate commitment
by signing the Net Zero Asset Managers (NZAM) initiative,
joined the Taskforce on Nature-related Financial
Disclosures forum as part of its biodiversity research
work, launched a study with UNICEF on how investors
and asset managers can promote children’s rights and
launched new sustainability-focused investment products.
Evli was also rewarded for having the best responsible
investment (ESG) expertise in Finland
1
.
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
1
SFR Scandinavian Financial Research Institutional Investment Services Finland 2017, 2021, 2022
GovernanceFinancial ReviewBusiness Overview Responsibility
1515
Responsibility built on Evli’s values and transparency
Evli’s business starts with clients and understanding their needs. The company’s primary responsibility is to
grow clients’ wealth responsibly, according to their individual goals. Evli’s client relationships are long-term and
based on mutual trust and ethical business practices. Evli’s development and business opportunities depend not
only on the trust of its clients, but also on the trust of its employees, owners, investors, partners and society.
To maintain and strengthen this trust, Evli must be proactive, transparent, highly ethical and responsible in all
aspects. Responsibility is based on Evli’s values: entrepreneurship, valuable relationships, learning, and integrity.
These values also form the foundation for the ethical principles which direct the actions of Evli and its employees
and which guide the company’s relationship with its clients and other stakeholders.
Evli seeks to be a responsible member of society and is committed to taking into account both the direct and
indirect environmental impacts of its operations. Because corporate responsibility is part of Evli’s everyday
business operations, its annual report includes a corporate responsibility report. The responsibility section
includes detailed information on how responsibility has been integrated into business operations and what
indicators have been deemed essential for measuring Evli’s responsibility.
Responsibility report based on stakeholders’ expectations
(GRI 102-46: Defining the content of the report, GRI 102-47: Material considerations, GRI 103-1: Material
issues and their threshold)
At Evli, responsibility is broadly defined as financial, social and environmental responsibility. Ongoing dialogue
with stakeholders is very important for Evli, as it helps to develop responsible ways of working and doing
business. In 2018, for the first time, Evli conducted a materiality analysis for its key stakeholders to ensure that
its responsibility report and responsibility priorities for the coming years reflect stakeholders’ expectations and
focus on issues that are material to the company. In 2021, the material topics were reassessed to ensure that
RESPONSIBILITY
Wealth and responsibility
drive positive change
together
Prioritized areas of responsibility work at Evli.
These have been identified as important to
ensure Evli’s future competitiveness and create
added value for its stakeholders in the long-
term.
Issues relevant to Evli and its stakeholders that
enable more responsible business operations.
Determined in part by laws and regulations.
However, Evli itself determines how much it
develops these areas of responsibility in order
to be a more responsible company and to meet
stakeholder expectations now and in the future.
Areas that are fundamental to trust in the
financial industry and are directly related to
stakeholder confidence in Evli and its business.
These are always handled in accordance with
current legislation and regulatory requirements.
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
FOCUS AREAS
Grouping of material topics based on the materiality analysis
DEVELOPMENT AREAS
BASE
- Responsible investing
- Profit performance
- Fairness: equality,
non-discrimination and diversity
- Attractive employer
- Responsible marketing
- Work well-being and health
- Education and development
- Direct environmental impacts
- Customer privacy protection and data
security
- Taxes and tax footprint
- Prevention of corruption, bribes and
money laundering
1616
these remain relevant and properly grouped. On the basis of the re-evaluation, the material topics remained
unchanged, but the grouping was changed by dividing the material topics into three main groups: base,
development areas, and focus areas, covering a total of eleven most relevant topics. No changes were made for
the 2022 analysis.
The materiality analysis has taken into account the importance of the issues raised for stakeholders and for
Evli’s business. A more detailed grouping also took into account the opportunity for Evli to develop these areas
to make its business more responsible. The base of the grouping are topics that create the foundation for
business operations and are directly related to stakeholders’ confidence in Evli and its business. At the middle
of the grouping are the development areas, which are relevant to Evli and its stakeholders, enabling even more
responsible business, and are partly determined by laws and regulations. At the top of the grouping are the
focus areas of Evli’s responsibility work. These are the topics that Evli has identified as significant to ensure its
future competitiveness and create added value for its stakeholders in the long-term.
As a result of the materiality analysis, Evli has recognised, among others, that in improving responsibility and
with regard to environmental impacts, the single most important factor in Evli’s operations is the responsibility of
the company’s investment operations and taking this into account in the product and service range.
Continuous dialogue with stakeholders
(GRI 102-40: List of stakeholder groups, GRI 102-43: Approach to stakeholder engagement, GRI 102-44: Key
topics and concerns raised)
Evli’s principal stakeholders are its clients, personnel, shareholders, investors, the authorities, partners and
media. An active and open dialogue with these principal stakeholders helps Evli to identify the areas of its
operations that should be prioritised and developed. Regular discussions with different stakeholders form a
foundation for understanding their views and needs. Correspondingly, it is important to tell stakeholders about
the company’s goals, execution policies, values and changes in the operating environment. This helps create a
common understanding and trust concerning business operations and factors that influence it.
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
1717
STAKEHOLDERS STAKEHOLDER’S EXPECTATIONS CHANNELS EVLI’S ACTIONS IN 2022
CLIENTS
- Competitive products and services
- Useful auxiliary and advisory services
- Reliability, data protection
- Service channels that meet needs
- Responsible operations
- Questionnaires and client feedback
- Websites and social media channels
- Client meetings, events and webinars
- Emails, newsletters and phone calls
- Two new Article 8 equity funds and two new Article 8 alternative investment product were launched
- The climate commitment was reinforced by the signing of the Net Zero Asset Managers (NZAM) initiative
- Customer and investment product specific sustainability reports were published as part of reporting
- Information in accordance with the Sustainable Finance Disclosure Regulation (SFDR) were given from funds and asset
management strategies
- Internal processes were developed to improve operational efficiency and customer service
PERSONNEL
- Fair treatment and open interaction
- Job stability and competitive pay
- Opportunities for professional development
- Occupational health and well-being
- Intranet and HR personnel system
- Occupational healthcare
- Performance reviews and training events
- Personnel surveys and other internal surveys
- Personnel events
- The expertise and knowledge of the employees were developed
- Operations were developed based on personnel surveys
- Self-management webinars were organised
- The recruitment process and trainee program were developed
SHAREHOLDERS
AND INVESTORS
- Creating long-term value
- Profit performance
- Dividend and good return on equity
- Capital adequacy
- Responsible operations
- Interim and half-year reports, financial statements
bulletins and annual report
- Corporate Governance Statement
- Remuneration policy and report
- Stock exchange and press releases
- Annual General Meeting, Investor and analyst meetings
- evli.com
- Evli continued to implement its strategy from 2017
- Operations were developed to create long-term stable
financial performance
- Economic, social and environmental aspects were taken into account in operations
- Corporate transactions to increase efficiency and growth.
PARTNERS
INCLUDING AGENTS
AND DISTRIBUTORS
- Fair and equal treatment
- Competitive products and services
- Reliability and capital adequacy
- Two-way communications
- evli.com
- Meetings and training
- Emails and phone calls
- Information and trainings about new products and services
- Operational development based on feedback received
- Open communication and continuous dialogue
THE AUTHORITIES
- Compliance with laws and regulations,
integration of sustainable development with
operations
- Open, transparent and reliable reporting
- Continuous interaction
- Phone calls and emails
- Participation in events and training
- Compliance with new laws, regulations and provisions and developing
business operations to adapt to changes in the operating environment
- Open communication and continuous dialogue
MEDIA AND
JOURNALISTS
- Relevant, reliable and open communications
- Expertise
- Press and stock exchange releases
- Press events and interviews
- evli.com and social media channels
- Monthly reviews, newsletters, emails and phone calls
- Multi-channel communication on topical matters
- Prompt replies to inquiries and interview requests from the media
- Media meetings
LOCAL
COMMUNITIES
- Employment opportunities
- Co-operation with universities
- Support to communities and co-operation
with businesses
- Meetings, events and webinars
- evli.com and social media channels
- Activities of the universities were supported
- Summer employments and the trainee program were developed
- Continued support for sports and cultural activities and environmental actions.
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
1818
Focus areas in Evli’s responsible operations
In 2022, Evli’s sustainability work was divided into responsible products
and services, responsible governance, and responsibility as an employer.
In terms of responsible products and services, the focus areas were
responsible marketing, customer privacy protection and data security,
and responsible investing. The focus areas for responsible governance
were profit performance, taxes and tax footprint, prevention of
corruption, bribery and money laundering, and direct environmental
impacts. As a responsible employer, Evli’s focus areas were fairness,
health and well-being at work, training and development, and employer
branding.
Responsible products
and services
- Responsible marketing
- Customer privacy protection
and data security
- Responsible investing
Responsible
employer
- Fairness: equality and diversity
- Health and well-being at work
- Training and development
- Employer branding
Responsible
governance
- Profit performance
- Taxes and tax footprint
- Prevention of corruption, bribes and
money laundering
- Direct environmental impacts
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
Responsible business supports the company’s value creation
GovernanceGovernanceFinancial ReviewFinancial ReviewBusiness OverviewBusiness Overview Responsibility
1919
Evli’s key principle is to offer products and services that meet its clients’
needs and goals. In selling products and services, Evli focuses on
ensuring that clients understand the product or service they are buying
and the associated risks, as well as ensuring that the product or service
suits the clients’ investment goals. At Evli, responsible investing means
that environmental, social, and good governance (ESG) factors are an
integrated part of portfolio management.
Responsible marketing based on integrity, clarity and
transparency
Evli aims to be the leading asset manager and responsible capital
allocator in the Nordic region. Achieving the aim, is supported by Evli’s
corporate culture, which is based on a mindset where the client’s
interests always come first and where the client’s assets are managed
as if they were our own. It is based on hard work and resourcefulness,
customer service and teamwork, building excellence and integrity in all
Evli’s activities. Moreover, in an increasingly unpredictable world, Evli
strives to be one step ahead of our clients so that we can guide them in
an uncertain future. The cornerstone of this kind of operation is that Evli
knows its clients and becomes familiar with their business and financial
situation as required by the client relationship. This enables Evli to offer
every client products and services that fit their needs and goals and to
ensure that clients truly understand the product or service they are
buying.
Responsible
products and
services
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2020
Transparent products and services that promote clients’ needs improve client satisfaction. Evli measures client
satisfaction. By measuring client satisfaction Evli wants to identify issues that clients consider relevant, develop
them, and quickly react to problems. In addition to Evli’s internal client satisfaction surveys, Evli takes part in
annual surveys conducted by external parties concerning wealth management.
Results and priorities for 2022
- In Kantar Prospera’s ”External Asset Management Finland” survey, Evli was the most used institutional asset
manager in Finland for the sixth consecutive year and among the best institutional asset manager in Finland
for the tenth time
1
.
- Evli received top rankings for the seventh year in a row in terms of overall quality in the institutional asset
management survey 2022 by SFR among large asset management companies. Evli was also rewarded
for having the best responsible investment (ESG) expertise among large asset management companies in
Finland
2
.
Customer data protection as a basis for trust
(GRI 418-1: Number of legitimate complaints about customer privacy violation and customer loss)
In Evli’s operations, particular attention is devoted to data protection and the safeguarding of the client’s privacy
protection in the processing of personal data. Personal data is used for taking care of client relationships,
offering products and services, direct marketing, and risk management. Evli is committed to processing personal
data in accordance with the laws, appropriately and transparently. Personal data is processed in compliance
with the EU’s General Data Protection Regulation (GDPR) and specific legislation for the financial industry.
Evli Group has several person registers for managing personal data, each of which has a separate data
protection notice. Data security is improved on a continual basis to ensure that it meets the requirements of the
authorities, clients, and the changing operating environment.
Results and priorities for 2022
- New employees were trained in Evli’s data protection and digital security.
Responsible investing
Evli believes that incorporating responsibility considerations into investment decisions increases the
understanding of the investments and the related risks and opportunities more than by simply analysing
financial figures.
Responsible investment an integrated part of investment operations and reporting
At Evli, responsibility factors have been integrated into the investment operations of Wealth Management, which
means that responsibility is systematically considered in portfolio management. In practice, this is done through
an internal ESG database based on sustainability data produced by MSCI ESG Research and ISS ESG, as well
as through information published by companies and attained through company meetings. The purpose of the
ESG database is to provide portfolio managers with easy access to ESG data when making equity and fixed-
income investments. For instance, portfolio managers can search for the following information on a company:
responsibility assessments (so-called ESG scores), data on controversial activities’ contribution to revenue,
and any ESG violations as well as emission data, information on companies’ emission reduction targets and how
companies are aligned with the Paris Climate Agreement.
The ESG database is also used for reporting purposes. Evli publishes public ESG reports on all of its equity and
corporate bond funds. This means that anyone can check the responsibility of Evli’s investments. In addition
to ESG and UN Global Compact analyses, the ESG reports include development of investments’ ESG scores,
reputational risk, carbon footprint and company-specific ESG data for the 10 largest holdings. In addition, Evli
1
KANTAR Prospera ”External Asset Management Finland”; 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021,2022
SFR Scandinavian Financial Research, “Institutional Investment Services Finland, Competitive Positioning Report, Investment Services Combined, Average of
all Criteria, Large Asset Managers”; 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022.
ESG stands for Environmental, Social, and Governance.
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2121
reports half-yearly about the responsibility of its clients’ equity and corporate bond investments in the client-
specific ESG reports.
An investment-specific ESG analysis is part of all investments, including those in alternative funds. In the Evli
Private Equity, Evli Infrastructure and Evli Private Debt funds, each new fund is analysed against the same ESG
criteria and investments are only made in funds that meet the criteria. The funds are also analysed according to
the same criteria during the investment and the ESG analysis data is transparently available to investors. In the
same way, in Evli’s growth company funds, the ESG analysis and value creation are a key part of the investment
process. Examples of portfolio work include the creation of ESG principles and KPI metrics together with each
target company. For real estate funds, Evli operates in a socially responsible manner and expects the same from
its partners. In addition, Evli is able to contribute to the energy efficiency of buildings and the carbon footprint
of construction through concrete measures. Evli’s forest fund, Evli Impact Forest Fund, identifies ESG risks
and opportunities for target funds by assessing, among other things, the environmental performance of forest
managers and ensures sustainable forest management through forest certification schemes developed over
the past 25 years. Responsibility is a concrete part of investment decisions also in the funds transferred to Evli’s
management in the merger of Evli and EAB Group Plc.
More responsible practices through engagement
Evli analyses the active selections in its equity and corporate bond funds and wealth management direct
investments every three months to identify potential non-compliance with the UN Global Compact, the UN
Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises,
and to ensure compliance with Evli’s Climate Change Principles. The UN Global Compact is an international
corporate responsibility standard that requires companies to respect human rights, fight corruption and
take environmental issues into account. The UN Guiding Principles on Business and Human Rights set out how
states and companies should implement their obligations and responsibilities. The OECD Guidelines contain
recommendations for multinational enterprises made by governments. The recommendations consist of
voluntary principles and standards of corporate responsibility and the application of law to international
business. Information on non-compliance is available from the MSCI and ISS ESG databases and other sources,
such as news reports.
Every case of non-compliance with the norms and Climate Change Principles triggers a pre-determined
process at Evli. The case is first handled with a portfolio manager, after which Evli’s Responsible Investment
team analyses the company’s situation. The Responsible Investment team has two options for further action:
1. Initiate measures for engagement
2. Exclude the investment
Cases of engagement through the quarterly review mostly concern environmental problems, human rights,
workers’ rights, or actions to mitigate climate change. Evli does not disclose the names of the companies that are
subject to engagement activities, as it believes that confidentiality with the company is more effective.
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2222
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
1. Analysis of factors related to
responsibility and calculation of ESG
scores
Active investments are regularly analysed in terms of ESG factors. Evli has ESG
data on 13,900 companies in an internal database. An ESG score is calculated for
each fund and direct equity investment, which reflects how well the companies as
a whole have taken into consideration the risks and opportunities associated with
responsibility. Of Evli’s funds, 90% have an excellent, very good or good ESG score.
3. Exclusion of companies from
investments
All of Evli’s equity and corporate bond funds, as well as direct equity and
corporate bond investments, follow the general exclusion principles.
In accordance with these principles, manufacturers of controversial
weapons with a 0% revenue threshold and tobacco manufacturers, adult
entertainment producers and controversial lending companies (including
so-called “quickie loan” companies) with a 5% revenue threshold are excluded.
In addition, Russia is excluded as a region where investments can be made.
The exclusion covers both Russian companies and the Russian state. It is also
possible to exclude companies that violate ESG principles and do not show
a willingness to change their practices. In addition, investing in companies
with more than 30% of their revenue coming from thermal coal mining, its
use in energy production, or oil sand extraction is avoided and companies
producing peat for energy production are excluded. Some funds comply
with broader exclusion criteria. In addition to equity and corporate bond
investments, Evli’s alternative investment funds also aim to comply with the
same general exclusion criteria.
2. Monitoring, active ownership and
engagement
Evli monitors its active equity and corporate bond investments regularly
and strives to influence the way companies operate. If a company violates
the principles set out in the UN Global Compact, the UN Guiding Principles on
Business and Human Rights, the OECD Guidelines for Multinational Enterprises
or Evli’s climate principles, Evli will either seek to engage the company or
exclude it from its investments. Evli also engages companies related to
different ESG themes and participates in various collaborative engagements
and initiatives with other investors with the aim of making the operations of
even more companies responsible.
4. Reporting on investments’
responsibility
factors to clients
Evli’s responsible investing is based on transparency and openness, which is why
responsibility factors are reported comprehensively to clients. The responsibility
reporting consists for example of the equity and corporate bond funds’ public
ESG reports, client-specific portfolio reports and the responsible investment
annual report. In addition, information in accordance with the Sustainable
Finance Disclosure Regulation (SFDR) is reported from funds and asset
management strategies.
EVLI’S
METHOD
2323
Results and priorities for 2022
- Evli expanded its client-specific ESG reports with new ESG indicators and published a second allocation and
impact report on the Evli Green Corporate Bond fund. The allocation and impact report provides transparent
information on the concrete impact of the fund’s investments.
- Russia was excluded as a region where investments can be made. The exclusion covers both Russian
companies and the Russian State.
- EGP Fund II Ky, a private equity fund investing in the most promising Finnish and European growth
companies, launched its operations. The fund takes sustainability into account not only through ESG
assessments of its investments, but also by creating ESG performance indicators (KPIs) for its investments
and by organising workshops for companies on various ESG topics.
- ESG training days were organised for portfolio managers, with the main topics being climate, biodiversity, and
EU sustainable finance legislation.
- Evli strengthened its climate commitment by signing the Net Zero Asset Managers (NZAM) initiative, where for
example, asset managers must set clear milestones within a year of signing up to the initiative and then report
annually on their progress.
- Work on climate targets continued in terms of building a snapshot, developing climate risk management
and engagement. The climate targets’ working committee’s analysis of how best to achieve the investment
milestone in real-world emission reductions and in line with the Paris Agreement focused on identifying best
practices and building on them to develop clear next steps for 2023.
- For biodiversity, in addition to the ESG indicators, the research was extended, for example through the
publicly available ENCORE online tool. The ENCORE online tool can be used to examine the nature dependencies
and impacts of production processes in different sectors.
- As part of its biodiversity work, Evli became the first Finnish asset manager to join the Taskforce on Nature-
related Financial Disclosures (TNFD) forum (more information on page 25).
- Evli launched two new Article 8 equity funds, Evli USA Growth and Evli Nordic Small Cap, and a new alternative
fund, the global infrastructure fund Evli Infrastructure Fund II, which has a robust ESG process. Additionally,
Evli’s range of products expanded as a result of the merger of Evli and EAB Group Plc with among others
Elite Alfred Berg Renewable Energy Infrastructure Fund II, which invests in European renewable energy
projects.
- During the year, Evli attended 34 company general meetings. Attendance took into account the restrictive
measures brought about by the coronavirus pandemic, and meetings were therefore attended by voting
in advance. Evli representatives attended the general meetings of among others Fortum, Gofore, Kamux,
Marimekko, Modulight, QT Group, Sanoma, Sitowise, Terveystalo and Verkkokauppa.com. The meetings were
selected on the basis of the content of the agenda and the ability of the fund management company to
influence.
- Systematic engagement with companies continued. Evli was in contact with 22 companies. The cases of
engagement related to companies’ climate work and targets, companies’ ESG work in general, suspected
breaches of norms and good corporate governance. In the quarterly monitoring, Evli excluded one company
on the basis of suspected non-compliance.
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
Continuous work
towards climate
targets
Research around
biodiversity
Working to
promote human
rights
Continuing to
deepen ESG
integration
in portfolio
management
New responsibility
themed products
Following EU
sustainable
finance legislation
Focus areas for responsible investing 2022-2023
2424
- In addition to independent engagement, Evli was involved in the following collaborative engagement initiatives
and/or investor letters:
- CDP Investor Letters (climate change, deforestation, water),
- Climate Action 100+ and
- the CDP’s collaborative engagement to set Science-Based Targets.
- Evli signed a letter to governments, the 2022 Global Investor Statement to Governments on the Climate
Crisis, which encourages ensuring a limitation of global temperature increase to 1.5°C, taking early action
to keep greenhouse gas emissions in line with the 2030 target, promoting non-carbon emission reductions,
increasing the supply of climate finance and strengthening climate reporting across the financial system
through mandatory reporting under the TCFD framework.
- Evli joined as an endorser the PRI Advance initiative, which brings investors together to take action on
human rights and social issues.
- Evli signed the global COP15 initiative, which was among other things calling on governments to give
financial institutions a stronger mandate to align their financial activities with biodiversity targets (more
information on page 25).
- As part of its human rights work, Evli launched a research project together with UNICEF Finland to find out
how investors and asset managers can promote children’s rights.
- Evli’s responsible investment performed exellently in external evaluations. Evli was awarded the “Responsible
Investment Award 2022” in the SFR customer survey for the best responsible investment skills among the
large asset management companies in Finland. In the SFR survey, Finnish institutional investors evaluated 18
asset management companies on a total of 11 different quality criteria, including investment performance,
investment process, resources, and responsibility.
More detailed information about Evli’s responsible investment and its development can be found at evli.com
and in the Annual Responsible Investment Report. Evli also reports its climate risks following the guidelines of
the Task Force on Climate-related Financial Disclosures (TCFD). More information on 2022 reporting on pages
40-46. In 2022 Evli also continued the implementation of the EU Sustainable Finance Disclosure Regulation
(SFDR) requirements and reports according to them within the timetable given in the second level of the SFDR.
SFR Scandinavian Financial Research Institutional Investment Services Finland 2017, 2021, 2022
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
Taskforce on Nature-related Financial Disclosures
(TNFD)
TNFD is a market-driven initiative to develop a risk management
and communication framework for organisations and financial
institutions, regardless of their size or geographical location.
The aim is to help organisations identify and report on the risks,
opportunities, impacts, and dependencies associated with the
nature of their activities in a standardised way. Increased
reporting and more comprehensive data will allow biodiversity
to be taken into account in future investment activities. The
TNFD disclosure recommendations are built on the previously
published and already widely used climate reporting framework
TCFD
5
, following the same four pillars: 1) governance, 2) strategy,
3) risk management and 4) metrics and targets. Various beta
versions of the framework have been published and the final
framework is scheduled for release in September 2023.
4
https://tnfd.global/
5
Task Force on Climate-Related Financial Disclosures (TCFD) https://www.fsb-tcfd.org/
2525
For a long time, the main focus of responsible investment has been on climate change and greenhouse gas emissions.
However, biodiversity is gaining importance in the investment arena.
“The lack of a measurable link between corporate activities and nature has prevented companies from assessing its
economic importance and has meant that nature has not been systematically taken into account in investment activities”,
says Petra Hakamo, Head of Sustainability at Evli.
This is about to change, as biodiversity impact indicators are being developed. The Taskforce on Nature-related Financial
Disclosures (TNFD) initiative aims to develop a framework for nature reporting for organisations to better identify the
dependencies and impacts of their activities on nature, as well as the risks and opportunities associated with nature. In
2022, Evli became the first Finnish asset manager to join the TNFD Forum. As a member of the TNFD Forum, Evli is able to
follow the development of the framework more closely.
Evli has been studying biodiversity metrics for a few years now as part of its development work on responsible
investment. In 2022, Evli expanded the research using the five nature loss drivers
1
identified by IPBES
2
as a framework:
land and sea use change, climate change, pollution, natural resource use and exploitation and invasive species. In addition,
Evli examined the nature dependencies and impacts of production processes in different sectors using the public
ENCORE
3
online tool. The underlying data for ENCORE is freely available for download for proprietary use and Evli has
used this data to develop an analysis that can be used to examine which different ecosystem services the industries in the
portfolio are dependent on and what impacts the production processes of the industries in the portfolio have on nature.
While ENCORE’s data is based only on industry-specific information, and company-specific activities cannot be included
in the analysis, it helps to assess portfolio-specific nature-related risks. The results of this analysis can be used in the
future to develop Evli’s own biodiversity work, such as identifying the most critical sectors and targeting companies with a
significant impact on nature.
In addition to seeking better data, investors can also engage companies and policy makers. Evli signed with other investors
the global COP15 initiative, released in conjunction with the UN Biodiversity Conference (COP15), calling on governments
to take coordinated action to tackle climate change and biodiversity loss around the world, to set a stronger mandate
for financial institutions to align financial activities with biodiversity targets, and for the adoption of an ambitious Global
Biodiversity Framework at COP15 in Montreal.
Businesses and investors have a major role to
play in biodiversity conservation
CASE: BIODIVERSITY
1
https://ipbes.net/models-drivers-biodiversity-ecosystem-change.
The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) is a UN-based organisation whose mission is to bring
together science and policy on biodiversity and ecosystem services and to develop their activities for human well-being and sustainable development.
3
ENCORE by Natural Capital Finance Alliance, https://encore.naturalcapital.finance/en
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2626
Responsible
governance
Evli’s operations are always based on good governance, legislation, and
official regulations. In addition, integrity and ethical operations are
considered the foundation of sustainable business.
Profit performance forms the core of financial
responsibility
(GRI 201-1: Direct economic value generated and distributed)
Financial responsibility is fundamental to Evli’s operations. Financial
responsibility means maintaining competitiveness, strong performance
and good profit performance. These factors enable profitable growth
and thus add value in the long-term to all Evli’s key stakeholders:
clients, society, personnel, and shareholders. Evli aims to improve
profit performance by enhancing operating efficiency, innovating new
products and service solutions, and developing its core processes.
A financially solid company can shoulder its responsibility for the
environment, look after its personnel, meet its clients’ needs and
serve society. Evli’s goal is to increase the sales of its existing wealth
management services, mutual funds, and alternative investment
products in Finland and to increase the international sales of selected
funds. The goal is also to bring new products and service solutions to
the market, which will help to achieve a positive result development. In
addition, Evli’s aim is to enhance its operations in order to ensure the
competitiveness of services and continuity of operations in the future.
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2727
Evli aims to be an interesting investment, both from the perspective of dividend income and the increase in share
value. Evli avoids unnecessary risks and concentrates on moderate, long-term growth and development. With
responsible operations, Evli creates long-term value for the owners and improves the ability to react to the
opportunities and risks arising from economic, social and environmental megatrends.
Results and priorities for 2022
- Evli Group’s net revenue decreased by 17 percent to EUR 96.1 million. The alternative investments and the
incentives business continued its growth, but the traditional fund sales and Corporate Finance business
contributed negatively to the performance.
- Sales of alternative investment products increased significantly from the previous year and alternative assets
under management reached EUR 2.4 billion at the end of the year.
- International sales had a challenging year, with the geopolitical uncertainties, energy crises and uncertain
market outlook impacting the sales. At the end of 2022, EUR 2.2 billion of Evli’s fund capital came from clients
outside Finland. This was a decrease of 30 percent compared to 2021.
- Evli continued its IT investments with the aim of streamlining processes and improving service to clients.
During the year, Evli among other things streamlined its processes in conjunction to the demerger of the
banking license and the merger of EAB Group Plc into Evli.
Taxes are paid in accordance with local legislation in each country of operation
(GRI 201-1: Direct economic value generated and distributed)
Evli’s head office is located in Finland. The company also has branch offices and subsidiaries in Sweden and
the United Arab Emirates. In each country, Evli pays its taxes in accordance with the local legislation. Evli is
committed to ensuring that it complies with all statutory obligations, and it discloses all required information to
the relevant tax authorities and engages in an open discussion with them. Evli considers compliance with tax
legislation as an important part of its corporate responsibility.
Results and priorities for 2022
- Evli paid a total of EUR 5.8 million in taxes (2021: EUR 11.2 million).
Corruption, bribes and money laundering not acceptable
(GRI 205-2: Communication and training about anti-corruption policies and procedures, GRI 205-3:
Confirmed incidents of corruption and actions taken)
Evli does not accept corruption, bribery, or any other illegal activity under any circumstances. Evli’s ethical
principles guide its personnel in this matter. For example, employees will not offer, demand, or accept
inappropriate gifts, trips, or payments. Moreover, there is an internal guideline on hosting in the company’s name
and giving business gifts.
Evli plays an important role in preventing money laundering and the funding of terrorism. For this purpose,
Evli has clear operating instructions that apply to the entire personnel. In addition to statutory obligations,
preventing money laundering is part of Evli’s risk management and an important part of its business operations.
Knowing the client is an integral part of the prevention of money laundering. Therefore, before a new client
relationship is formed, the client’s information is always analysed as required by guidelines based on the law. All
personnel who have direct contact with clients must take part in annual training events on money laundering
and knowing the customer. Evli has also adopted an active role in developing the regulation and good operating
practices in the industry.
Evli provides an opportunity to report violations through the whistleblowing procedure. If an employee suspects
that unethical activities have occurred or that someone has engaged in activities that violate the law, regulations,
the authorities’ instructions, or Evli’s internal guidelines, a separate procedure is available with dedicated
guidelines that the employee can follow to report the matter.
Results and priorities for 2022
- No cases of corruption, bribery or money laundering in Evli’s operations were reported.
- Training events were mainly regarding prevention of money laundering and funding of terrorism.
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
2828
Environmental impacts of Evli’s own operations
(GRI 302-1: Energy consumption within the organisation, GRI 302-4: Reduction of energy consumption)
Evli’s own operations do not have any significant immediate environmental impacts. The company’s principal
environmental impacts are related to its investment activities. However, the company is aware that it can
promote positive environmental impacts through its own operations by reducing the energy consumption and
CO2 emissions of its offices and paying attention to the environmental impacts of waste and consumption of
paper. Unnecessary travel is avoided by favouring telephone and video conferences. Employees continuously
strive to reduce their ecological footprint in their everyday work.
Evli has set a target to be net zero in terms of emissions from its own operations (Scope 1 and 2) by 2025 at the
latest.
Evli’s head office in Helsinki has been awarded the LEED
1
Gold certification, one of the world’s best-known green
building certificates.
It is also important for Evli to increase environmental awareness among its clients and employees and offer
products and services that help to mitigate harmful environmental impacts. With the continuous development of
digital transaction channels and utilising the opportunities given by technology, Evli offers new forms of services
that have a smaller environmental impact than before.
Results and priorities for 2022
- Evli continued the development of its website evli.com and the My Evli online service in order to, among others,
reduce the amount of paper reporting.
- Evli’s energy consumption was on the previous years level.
LEED=Leadership in Energy and Environmental Design
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2929
Responsible
employer
Evli’s success is based on the professional skills of its employees and
their ability to create new solutions, added value for the benefit of the
clients and to serve them professionally. Evli believes that employee
commitment and thriving at work is reinforced by creating a flexible,
efficient and balanced work community, which is characterised by
innovativeness and the capability to develop and bring about change.
To ensure that the best experts in the business will serve clients also in
the future, Evli pays particular attention to employee development and
motivation. In addition to competitive pay, personnel benefits include
expert level occupational healthcare services and varied opportunities
for developing skills.
Most of the personnel work in Finland
(GRI 102-8: Information on employees and other workers, GRI 401-1:
New employee hires and employee turnover)
At the end of 2022, the Evli Group had 344 employees, up by 19 percent
on the previous year. The increase in the amount of emplouyees was
mainly due to the merger of EAB Group Plc into Evli in October 2022. Of
the total personnel, 94 percent worked in Finland, over five percent in
Sweden and nearly one percent in the United Arab Emirates.
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
3030
The total number of new hires in 2022 was 29. The number of new employees does not include summer workers
and trainees. The average personnel turnover was 8.3 percent.
PERSONNEL DATA 2022 2021 2020 2019 2018
Personnel 344 290 261 249 254
Permanent 294 251 233 224 226
Temporary
1
50 39 24 25 24
On study or parental leave 11 7 4 3 4
Full time
2
312 244 240 237 243
Part time
3
32 39 21 12 11
Women/men (%) 38/62 38/62 39/61 36/64 38/62
Average age 40 40 41 41.1 40.5
Average period of service (years) 8 9 11 9.9 9.1
Average personnel turnover (%)
4
8.3 10.0 8.0 8.5 8.3
New hires 29 32 20 16 15
Sickness absences, days/person 2.2 1.8 1.2 2.2 2.9
Occupational accidents at work 1 0 0 0 0
Training days/person 1.0 1.3 1.0 2.1 3.7
Personnel covered by performance reviews (%) 100 100 100 100 100
1
Includes both trainees and summer workers
2
Includes both permanent and temporary employees with full-time contracts.
3
Includes both permanent and temporary employees with part-time contracts
4
Personnel turnover was calculated using the following formula: ((Number of new persons employed Jan 1-Dec 31 + number of employees leaving Jan 1-Dec 31)/2)/number of
employees on Dec 31..
5
Includes conversion of fixed-term contracts into permanent contracts during the year
The figures for 2018-2021 are those of Evli Pankki Plc. Evli Plc was created by a partial demerger from Evli Bank Plc on April 2, 2022.
A diverse work environment and equal opportunities
(GRI 405-1: Diversity of governance bodies and employees)
Fairness, including equality, non-discrimination and diversity are a material part of Evli’s responsibility. Work
in this was further organised in 2018 as the Board of Directors approved Evli Group’s diversity policy and
goals for 2022. The diversity policy defines the company’s principles concerning equality, non-discrimination,
and diversity. Under the principles, Evli commits to creating a workplace that is non-discriminatory, open,
and positive and in which all employees are treated equally, irrespective of gender, age, ethnic or national
background, nationality, language, or faith.
In addition, a material factor of diversity is that all employees feel they have the same opportunities to develop
and advance in their careers. Good management of diversity and work for non-discrimination can improve
personnel well-being and commitment and enable employees to perform to their full potential. In addition,
diversity promotes innovations, productivity, and the company’s competitiveness.
At Evli, diversity applies to all business areas and diversity is taken into account in all personnel management
from hiring to career progress and development.
In addition to Evli Group’s diversity policy, the goal of the Board of Directors’ diversity policy is to ensure that the
Board is as diverse as possible. Diversity emphasises the Board members’ expertise regarding different industry
sectors and training and skills that complement those of other members. In addition, factors that are relevant
regarding the diversity of the Board include age and gender distribution and the length of term. The goal is for
both genders to be represented on the Board. Additional information about diversity of the Board of Directors is
found on page 130.
Results and priorities for 2022
- Evli’s recruitment process was further improved, and recruitment increasingly focused on diversity,
including through collaboration with different stakeholders. For example, efforts are being made to make the
investment industry more attractive to women.
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3131
Evli looks after the well-being of its employees
(GRI 403-2: Types of injury and rates of injury, occupational diseases, lost
days, and absenteeism, and number of work-related fatalities, GRI 401-3:
Parental leave)
Motivated and committed employees whose well-being are at a high level are
vital to Evli’s operations, development, and profitability. Evli’s goal is to develop
and promote the comprehensive well-being of the employees and invest in
preventive well-being measures. One of the key conditions for both mental
and physical well-being is work-life balance. This is supported at Evli through
a flexible working culture, which includes, among others, the possibility of
flexible working hours, remote working, and a shortened workweek. In
addition, Evli uses a so-called age management model that takes into account
and supports employees at different stages of their careers and lives.
Evli’s employees have access to expert level occupational healthcare including,
among others, access to specialist-level doctors, physiotherapy, endoscopies,
ultrasound scans, X-rays, MRIs and personal vaccinations. In addition,
the mental and physical well-being are supported by offering employees
opportunities to take part in exercise classes and lectures. Evli’s policy also
includes preventing long-term sick leave through an early support model.
Job satisfaction and well-being at work are measured by means of an
employee survey and smaller in-house surveys. The results drive the further
development of workplace well-being and practices.
Results and priorities for 2022
- Four employees worked a shorter week and were, for example, on part-
time childcare leave.
- The implementation of the hybrid model combining remote and office
working, launched in autumn 2021, continued in 2022.
- Monthly employees responded to a so-called ’well-being at work’
questionnaire. The survey results and feedback were a tool for managers
to manage and strategically develop well-being at work.
ENTIRE PERSONNEL
344 persons
49 persons
TEAM LEADERS
EXECUTIVE GROUP
7 persons
BOARD OF DIRECTORS
6 persons
- There are at least 40 percent of each
gender represented in expert positions in
all business areas.
- There are at least 30 percent of
each gender represented in team
leader positions in business areas and
administration.
- Both genders are sufficiently represented
on the Board of Directors and in the
Executive Group. In planning the
composition of the Board, important
factors include members’ skills,
experience, and expertise to ensure
effective performance.
- In recruitment, the most suitable person
for the position is always selected. The
annual equality and equal treatment
review developed policies to ensure
equal opportunities for all applicants in
recruitment and to achieve the greatest
possible diversity in the organisation.
- Both genders must be represented in the
group of people selected for the trainee
program.
Women
38%
18%
14%
17%
62%
82%
86%
83%
Men
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
EVLI’S DIVERSITY 2022
DIVERSITY
GOALS FOR
2022
3232
Personnel development helps increase competitiveness
(GRI 404-1: Average hours of training per year per employee, GRI 404-2: Programs for upgrading employee
skills and transition assistance programs)
The skills of motivated and committed employees support the execution of the company’s strategy and targets.
Evli constantly develops its employees’ professional expertise, as this enables it to keep up with the changes
in the environment and offer innovative solutions that meet the market demand. In addition, training and skills
development aim to increase staff motivation and job satisfaction. Evli Academy, established in 2006, organises
both internal and external trainings to improve the employees’ skills and to enhance occupational health and
well-being.
In addition to training opportunities, Evli encourages learning on the job and job rotation. Job rotation is
encouraged by, for example, publishing all open positions on Evli’s Intranet.
The work of Team Leaders is considered an important part of personnel development and work satisfaction.
Team Leaders are trained on a continuous basis to enable them to support their team members as well as
possible and to develop the teams’ practices. The work of Team Leaders is evaluated regularly based on external
surveys.
Results and priorities for 2022
- The number of training days per person was around one. Training days include internally organised
training.
- A total of nine persons transferred to new job tasks as part of job rotation.
An attractive employer
Competition for the best talent is very severe in the financial sector. Finding the right people and keeping them
is vital for a company that offers expert services. Evli believes that by offering its employees good learning
and development opportunities, and by investing in their well-being and work-life balance, it can attract new
employees and commit them to the company.
Evli’s recruitment activities emphasise finding the right people who match Evli’s corporate culture and are
prepared to develop to become future top experts at Evli. Fresh graduates or students close to graduation
are attracted to work at Evli by offering, for example, a trainee program. The goal of the trainee program is to
find motivated young talents that can become future top experts at Evli and bring innovations and ideas to the
company.
In addition to the trainee program, Evli supports schools and subject organizations, visits schools and introduces
students to the field and Evli as a company and participates in various recruitment events. The purpose of these
events is to increase awareness of Evli among students.
Results and priorities for 2022
- Systematic work to improve employer branding continued. Evli feels that by improving the image of the
company as an employer, it will be easier to attract promising new employees and to retain current
employees. In order to improve the employer image, more systematic use of social media and the
improvement of the content of Evli’s own website continued as well as the co-operation with schools and
subject organizations.
- The trainee program was carried out around the year. During the year around 516 persons applied for the
trainee-program and from these ten persons were hired to Evli as trainees.
- Evli partnered with the Women’s Career Society in order to support female students’ career paths.
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
3333
Reporting
practice
GRI 102-47: List of material topics
The economic, social and environmental impact of Evli’s business
comes both directly through its own operations and indirectly through
its investment activities. The topics and priorities relevant to Evli’s
responsibility are presented on pages 15.
GRI 102-48: Restatements of information
No material changes have been made to previously reported data.
GRI 102-49: Changes in reporting
Evli conducted its first GRI
1
Corporate Responsibility Report in 2018. In
the 2022 report, the scope and boundaries of the report have remained
the same and the content matches that of the 2021, 2020 and 2019
reports.
GRI 102-50: Reporting period
The reporting period is from January 1 to December 31, 2022.
GRI 102-51: Date of most recent report
Evli’s Annual Report 2021 including the Responsibility Report was
published on February 16, 2022.
1
GRI= Global Reporting Initiative
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility GovernanceFinancial ReviewBusiness Overview
GRI 102-52: Reporting cycle
Evli’s Annual Report is published yearly, by calendar year. The Annual Report consists of a Business
Overview, Responsibility Report, Financial Statement and Corporate Governance Statement as well as
the Remuneration Policy and Report.
GRI 102-53: Contact point for questions regarding the report
The contact point for questions is Evli’s Responsible Investment team as well as the Marketing,
communications and IR team. Contact details are available at evli.com.
GRI 102-54: Claims of reporting in accordance with the GRI standards
The corporate responsibility report includes a GRI report which has been drawn up in accordance
with the GRI standards, where applicable. The report also includes information that concerns Evli’s own
relevant responsibility matters in accordance with the reporting principles of the GRI standard. The
GRI content comparison on pages 35-39 lists the GRI indicators used and where more information
is available. The corporate responsibility report, including the GRI report, supplements Evli’s financial
reporting and concerns the operations of the Group as a whole unless otherwise indicated. The GRI
report includes information and indicators that have been identified through materiality analysis that
are relevant to stakeholders and Evli’s business operations.
GRI 102-56: External assurance
The responsibility report, which includes a GRI report, is not externally audited.
Responsibility
3434
GRI 103-1: Explanation of the material topic and its boundary
RESPONSIBILITY
THEMES
RELEVANT
RESPONSIBILITY SUBJECTS
SIGNIFICANCE TO BUSINESS
OPERATIONS AND STAKEHOLDERS
CALCULATION
PARAMETERS
Responsible products
and services
Responsible marketing Development area Own operations
Customer privacy protection and data
security
Base Own operations
Responsible investing Focus area
Own operations -
Responsibility of wealth
management investments
Responsible
governance
Profit performance Focus area Own operations
Taxes and tax footprint Base Own operations
Corruption, bribes and money laundering Base Own operations
Direct environmental impacts Development area
Own operations
(Helsinki office)
Responsible
employer
Fairness: equality, non-discrimination
and diversity
Focus area Own operations
Work well-being and health Development area
Own operations
(Helsinki office)
Education and development Development area
Own operations
(Helsinki office)
Attractive employer Focus area Own operations
GRI 103-2: The management approach and its components
All business areas at Evli are part of ensuring that responsibility is integrated into everyday work. Every
employee is responsible for observing it in practice. Evli’s Responsible Investments team supports the business
areas in matters concerning responsibility and especially the coordination of responsible investment.
Evli believes that through responsible investment activities the company can have the most impact on
responsibility. This is why Evli has invested most in the development of responsible investment in recent years.
Evli has a Responsible Investment team that carries out responsible investment under the Head of Sustainability.
Compliance with the principles of responsible investment at Evli is supervised by the Responsible Investment
Executive Group. The members of the Executive Group include the CEO, executives from the legal and risk
management department, institutional and private clients’ departments, portfolio management and the
responsible investment team. The Responsible Investment Executive Group decides on Evli’s Principles for
Responsible Investment and related practices and reports to Evli’s Executive Group.
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
3535
GRI content index
DISCLOSURE INDEX DISCLOSURE TITLE PAGE ADDITIONAL INFORMATION
GENERAL DISCLOSURE
Organizational Profile
102-1 Name of the organization Financial Statements, p. 67
102-2 Activities, brands, products and services Evli in brief, p. 3-4
102-3 Location of headquarters Financial Statements, p. 67
Aleksanterinkatu 19, 00101 Helsinki
102-4 Location of operations Evli in brief, p. 3-4
102-5 Ownership and legal form Shares and Shareholders, p. 56-58, Financial Statements,
p. 103-105
102-6 Markets served Evli in brief, p. 3-4
102-7 Scale of the organization Evli in brief, p. 3-4, Financial figures, p. 48-49
102-8 Information on employees and other workers Responsibility, p. 29-30
102-10 Significant changes to the organization and its supply chain Financial Statements, p. 106
102-11 Precautionary Principle or approach Risk management and internal control, p. 91-98
102-12 External initiatives Responsibility, p. 21
Strategy and analysis
102-14 Statement from senior decision-maker CEO’s review, p. 5-6
102-15 Key impacts, risks, and opportunities Megatrends & Strategy, p. 10-11
Ethics and integrity
102-16 Values, principles, standards, and norms of behavior Business model, p. 9
102-17 Mechanisms for advice and concerns about ethics Responsibility, p. 27
Governance
102-18 Governance structure Corporate Governance Statement, p. 129
102-19 Delegating authority Responsibility, p. 34
102-20 Executive-level responsibility for economic, environmental, and social topics Responsibility, p. 34
102-22 Composition of the highest governance body and its committees Corporate Governance Statement, p. 130-132
102-23 Chair of the highest governance body Corporate Governance Statement, p. 130-132
102-24 Nominating and selecting the highest governance body Corporate Governance Statement, p. 130
102-26 Role of highest governance body in setting purpose, values, and strategy Corporate Governance Statement, p. 130
102-27 Collective knowledge of highest governance body Corporate Governance Statement, p. 130-132
102-28 Evaluating the highest governance body’s performance Corporate Governance Statement, p. 131
102-30 Effectiveness of risk management processes Risk management and internal control, p. 91-98
102-35 Remuneration policies Remuneration policy, p. 137-139
102-36 Process for determining remuneration Remuneration policy, p. 137-139
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
3636
DISCLOSURE INDEX DISCLOSURE TITLE PAGE ADDITIONAL INFORMATION
GENERAL DISCLOSURE
Stakeholder engagement
102-40 List of stakeholder groups Responsibility, p. 17
102-43 Approach to stakeholder engagement Responsibility, p. 16-17
102-44 Key topics and concerns raised Responsibility, p. 17
Reporting practice
102-45 Entities included in the consolidated financial statements Financial Statements, p. 70
102-46 Defining report content and topic boundaries Responsibility, p. 15-18
102-47 List of material topics Responsibility, p. 15-18
102-48 Restatements of information Responsibility, p. 33
102-49 Changes in reporting Responsibility, p. 33
102-50 Reporting period Responsibility, p. 33
102-51 Date of most recent report Responsibility, p. 33
102-52 Reporting cycle Responsibility, p. 33
102-53 Contact point for questions regarding the report Responsibility, p. 33
102-54 Claims of reporting in accordance with the GRI Standards Responsibility, p. 33
102-55 GRI content index GRI content index, p. 35-39
102-56 External assurance Responsibility, p. 33 The report has not been externally
assured
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
3737
DISCLOSURE INDEX DISCLOSURE TITLE PAGE ADDITIONAL INFORMATION
MATERIAL TOPICS
Management approach
103-1 Explanation of the material topic and its boundary Responsibility, p. 34
103-2 The management approach and its components Responsibility, p. 34
Economic topics
Economic performance
201-1 Direct economic value generated and distributed
ECONOMIC VALUE GENERATED AND DISTRIBUTED
Income distribution, M€ 2022
Carve-out
2021
Commission income and expense, net 92.1 111.7
Net income from securities transactions 3.7 3.7
Income from equity investments 0.0 0.0
Net interest income 0.1 0.6
Other operating income 0.1 0.2
Share of profits (losses) of associates 0.3 0.5
Total income 96.1 116.2
Personnel expenses 39.2 36.6
Other administrative expenses 19.6 17.6
Depreciation and amortization on tangible and intangible
assets 5.1 4.8
Other operating expenses 0.8 1.3
Expected credit losses on loans and other receivables 0.0 0.1
Impairment losses on loans and other receivables 0.7 0.1
Taxes 5.8 0.0
Shareholders of parent company 20.7 38.8
Minority interest 4.3 6.7
Distribution of income 96.1 116.2
Anti-corruption and
anti-bribery
205-2 Communication and training about anti-corruption policies and procedures Responsibility, p. 27
205-3 Confirmed incidents of corruption and actions taken Responsibility, p. 27
Environmental topics
Energy
302-1 Energy consumption within the organization Responsibility, p. 28
302-4 Reduction of energy consumption Responsibility, p. 28
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
3838
DISCLOSURE INDEX DISCLOSURE TITLE PAGE ADDITIONAL INFORMATION
MATERIAL TOPICS
Social responsibility
Employment
401-1 New employee hires and employee turnover Responsibility, p. 30
401-2 Full-time staff benefits not provided to fixed-term or part-time staff All employee benefits are offered throug
-
hout the personnel, regardless of emplo-
yment.
401-3 Parental leave Employees are provided with an opportu
-
nity of shortened working hours and
depending on work tasks, the possibility of
flexible working hours.
Occupational health and
safety
403-2 Types of injury and rates of injury, occupational diseases, lost days, and
absenteeism, and number of work-related fatalities
Responsibility, p. 30
Training and education
404-1 Average hours of training per year per employee Responsibility, p. 30
404-2 Programs for upgrading employee skills and transition assistance pro
-
grams
Responsibility, p. 32
404-3 Percentage of employees receiving regular performance and career
development reviews
Evli’s development discussion process
covers all permanent employees who are
not absent due to, for example, parental
leave or study leave. Developmental
discussion needs for temporary emplo
-
yees are assessed case-by-case.
Diversity and equal
opportunity
405-1 Diversity of governance bodies and employee Responsibility, p. 31, Board of Director’s Diversity;
Corporate Governance Statement, p. 131
Customer privacy protection
418-1 Number of legitimate complaints about customer privacy violation and
customer loss
Responsibility, p. 20
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
3939
DISCLOSURE INDEX DISCLOSURE TITLE PAGE ADDITIONAL INFORMATION
MATERIAL TOPICS
Social responsibility
Evli’s own material CSR topics
Responsible investments
Engaging with investment objects on environmental, social and governance
matters
Responsibility, p. 23
Taxes and tax footprint
Total tax Responsibility, p. 27
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
4040
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
Evli has committed to supporting the Task Force on Climate-related Financial Disclosures (TCFD) reporting
framework and published its first TCFD report in 2020 based on the situation in 2019. This annex provides
updated information on Evli’s climate risks and opportunities and compiles information on Evli’s climate work
progress in 2022.
Introduction
In August 2019, Evli became a public supporter of the TCFD with the goal of developing Evli’s own climate risk
reporting. The TCFD is an international climate risk reporting framework designed to improve reporting on the
economic impact of climate change by making it clearer, more comparable, and more consistent.
It is important for asset managers and other investors to be able to identify and assess the economic impact of
climate change on both their own operations and those of investment companies. The transition to a low-carbon
economy is changing the business environment and companies are also exposed to the physical effects of
climate change. On the other hand, climate change also creates opportunities for companies that offer products
or services that contribute to climate change adaptation and mitigation.
Reports based on TCFD’s recommendations provide stakeholders of the company information on:
1. the management of climate-related risks and opportunities (role of the Board of Directors and the
management)
2. the actual and potential impact of climate-related risks and opportunities on the company’s business,
strategy and financial planning
3. risk management, the company’s processes for identifying, assessing and managing climate risks
4. the indicators and targets for assessing and managing climate-related risks and opportunities.
ANNEX
Task Force on Climate-related
Financial Disclosures report
1.
MANAGEMENT
2.
STRATEGY
3.
RISK MANAGEMENT
4.
INDICATORS
AND TARGETS
REPORTING FRAMEWORK OF THE TCFD REPORT
4141
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
Management
As part of the broader debate on responsibility, Evli’s Board and Executive Group regularly address climate-
related issues. Evli’s Head of Sustainability attends Board and Executive Group meetings from time to time. In
addition to the work of the Board and Executive Group, Evli has a Responsible Investment Executive Group, which
decides on the principles and practical procedures of responsible investment at Evli. In addition to the CEO, the
Responsible Investment Executive Group includes managers from Legal and Risk Management, Private and
Institutional Clients, Portfolio Management and the Responsible Investment team.
The Responsible Investment team, under the supervision of the Head of Sustainability, is responsible for
coordinating and developing ESG issues in the funds and discretionary portfolio management, as well as for
engaging with companies. The Responsible Investment team monitors implementation of the UN Global Compact,
the UN Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises and
the Evli Principles for Climate Change and has the right to exclude individual companies from investment.
When analysing potential investments and making investment decisions, Evli’s portfolio managers also take
ESG matters into account, including climate issues. Portfolio managers are responsible for implementing the
Principles for Responsible Investment and ESG integration in portfolio management.
The investment activities of Wealth Management are guided by the Evli Principles for Responsible Investment,
which define Evli’s responsible investment practices. In addition, Wealth Management is governed by the Evli
Principles for Climate Change, which describe Evli’s approach to taking climate change and its related impacts
on its investments into account. In 2021, Evli published separate climate targets, according to which, Evli aims to
achieve carbon neutrality by 2050 at the latest. The target applies to emissions from both Evli’s own operations
and its investments. The targets include separate milestones. A separate roadmap has also been defined for
the climate targets and a separate working committee has been set up to further clarify how the investment
milestone can best be achieved through real-world emission reductions and in line with the Paris Agreement.
Responsible Investment Executive Group
- Decides on the principles and practical procedures of responsible investing
- Members: CEO, executives from the legal and risk management department, institutional and
private clients’ departments, portfolio management and the Responsible Investment team
- Regular meetings approximately on a quarterly basis
- Reports to Evli’s Executive Group
Responsible investment team
- Monitors norm violations and Evli’s Principles for Climate Change, and has the right to exclude
individual companies from investments
- Is responsible for engaging with companies
- Report to the Responsible Investment Executive Group
Portfolio managers
- Take ESG matters into consideration when analysing potential investments and making
investment decisions
- Are responsible for implementing the Principles for Responsible Investment and ESG
integration
- Reports to the Responsible Investment team on companies that violate the Principles for
Responsible Investment
THE RESPONSIBLE INVESTMENTS GOVERNANCE MODEL
4242
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
Strategy
At Evli, responsibility has been an integral part of portfolio management for many years, and the company
believes that taking responsibility into account will create long-term added value. In January 2020, Evli made
responsibility one of its strategic focus areas for the coming years, and in June 2021, Evli set its climate targets
and related milestones in line with its strategic objectives. Climate change mitigation has always been an
important issue for Evli, and the company wants to contribute to creating products that address climate change
challenges.
As an asset manager, the most significant climate risks and opportunities for Evli are related to its investment
activities, as Evli’s own operations do not cause significant direct environmental impacts. In its own operations,
Evli has committed to reducing energy consumption and carbon emissions from its premises and to avoiding
unnecessary travel. As part of its climate targets, Evli also set separate milestones for emissions from its own
operations (Scope 1 and 2). However, Evli’s strategy focuses on the integration of climate-related risks and
opportunities and their impacts into Evli’s products and investment strategies, and this is also reflected in the
2021 climate targets.
Most of Evli’s emissions come indirectly through investments. The second milestone of the climate targets is to
reduce indirect emissions from investments by 50 percent by 2030, provided that the investment environment
allows this. In the longer term, Evli aims to be a carbon neutral asset manager by 2050 at the latest. To reinforce
this commitment, Evli joined the Net Zero Asset Managers initiative in summer 2022.
The TCFD divides climate change risks into risks from the transition to a low-carbon economy and physical risks
from climate change. Transition risks are the financial risks arising from the transition to a low-carbon economy.
These include risks arising from changes in policy, regulation, technology, and markets, which, if they materialise,
could affect the market value and returns on investments. As clients’ climate strategies evolve, Evli must be able
to ensure that its products and services meet their changing needs. Investing in companies that are perceived
to contribute to climate change also increases the reputational risk associated with investment activities.
Physical risks, on the other hand, are the economic risks arising from climate change, which can be the result of
single events or long-term changes in the climate. In Evli’s investment activities, physical risks may materialise,
for example, in real estate investments, which may be increasingly exposed to extreme weather events, sea-
level rise or flooding damage, for example, as a result of climate change. The physical impacts of climate change
also extend to other asset classes such as equity and corporate bond investments. Within these asset classes,
industries dependent on foreign raw materials, for example, may be vulnerable to increasing extreme weather
conditions.
In addition to physical and transition risks, climate change risks can also be considered through the climate
targets of the investee companies. Such targets can be used to examine how well companies’ business and
strategy are aligned with the Paris Agreement, and how well they are prepared to respond to climate change
in their own operations. Setting climate targets is part of a company’s long-term risk management, and their
absence also increases risk from an investor’s perspective. Evli regularly monitors the climate targets of
its active equity and corporate bond funds and its direct equity and corporate bond investments and their
development. In addition, Evli’s engagement work aims to encourage companies to set science-based climate
targets. The first phase of the engagement, which started in 2021, has focused in particular on high emitting
companies whose emissions or targets are not aligned with the 1.5°C target. In 2022, Evli has monitored the
progress of the engaged companies and developed its engagement process as part of the climate targets
roadmap.
Climate change also brings opportunities for investors. These include investing in companies that take advantage
of opportunities to mitigate and adapt to climate change. In addition, climate change will increase the market for
sustainable investments, such as green bonds, providing opportunities for the development of new products. In
autumn 2019, Evli organised the first issuance of Green Note autocall certificates in Finland. The funds raised
through the issue will be used to finance projects supporting sustainable development. In 2021, Evli carried
out three similar issuances. In addition to these, two new funds were launched in 2020, Evli Green Corporate
Bond, an investment fund focusing on green corporate bonds, and Evli Impact Forest Fund I, a forest fund that
aims to mitigate climate change by achieving positive carbon impacts. In the case of the forest fund, which is
part of the alternative investment funds, Evli’s performance fee is dependent on the achievement of the fund’s
decarbonisation target. In 2022, as part of the merger of EAB Group Plc into Evli, the range of sustainability
funds increased with among others Elite Alfred Berg Renewable Energy Infrastructure Fund II, a renewable
energy fund that offers the opportunity to invest in reducing global carbon emissions.
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GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
Evli has examined the sustainability of its investment strategy by conducting scenario analyses based on climate
data provided by ISS ESG. The purpose of the scenario analysis is to assess the potential impact of climate-
related risks and opportunities in global warming scenarios. The scenario analysis is included also in the tools
used by portfolio managers of the equity and corporate bond funds managed by Evli. This information can be
used both before and during the investment decision. The tools also allow systematic monitoring of the evolution
of investment strategy scenarios. For example, Evli monitors how equity and corporate bond funds are aligned
with the 1.5- and 2-degree scenarios. The scenario analyses are based on analyses produced by ISS ESG.
In addition to the scenarios, Evli monitors and reports on the fossil fuel reserves of its investments and the
transition of companies to low carbon. More detailed figures on scenarios and other metrics can be found in the
section Indicators and objectives on pages 44-46.
Risk Management
Evli’s Principles for Climate Change and climate targets set the baseline for taking into account and managing
climate change and its impacts in investment activities. The identification and assessment of climate risks
are based on an analysis of the investment portfolio by portfolio managers and the Responsible Investment
team. Climate risk management measures include the analysing and monitoring, engagement, and exclusion
of greenhouse gas emissions from investments. Evli uses data from an external service provider, which is also
used by the company’s portfolio managers for investment decisions, for monitoring the climate principles and
other day-to-day work related to responsibility. Evli has also set a separate roadmap for its climate targets,
according to which it will systematically build on its climate work.
The emissions of companies in Evli’s equity and corporate bond funds are monitored by analysing the carbon
intensity weighted by the portfolio weights of the funds, among others, as recommended by the TCFD, which
measures the exposure of the portfolio to carbon-intensive companies. Emissions data and other climate
analysis data, along with other ESG data, are integrated into the portfolio management systems, allowing Evli
also that way to monitor and assess the evolution of climate risks in its investments. In line with its Principles
for Climate Change, Evli has excluded companies producing peat for energy production and avoids investing
in companies with a significant proportion (30% or more) of their revenue coming from thermal coal mining,
its use in energy production or oil sands extraction. If the company has a credible plan to reduce its use of
1. Building a snapshot
5. Systematic analysis of the targets
4. Engagement
2. Development of climate risk management
3. Updating the exclusions
ROADMAP TO BECOMING A NET ZERO ASSET MANAGER
coal, the exclusion may be waived by a decision of the Responsible Investment team. In addition to the general
exclusion principles, some of Evli’s funds follow an even broader exclusion for coal and fossil fuels, with a 5
percent revenue threshold for exclusion. The information required by the climate principles, as well as the
broader exclusion information for the funds, are included in the portfolio management system, which prevents
investments in excluded companies and requires portfolio managers to justify any investment that exceeds
the avoidable limits. Should the avoidable limit for climate principles be exceeded, this would automatically be
reported to the Responsible Investment team, which would analyse the company and decide on further action.
Evli sees active ownership and corporate engagement as one of the ways to manage climate change risks.
Climate change mitigation is one of Evli’s key themes for engagement. In its engagement work, Evli also
encourages companies to report transparently in line with the TCFD framework and set climate targets. In
addition, Evli monitors company-specific targets and their progress. As part of its independent engagement
work based on its climate targets, Evli was in contact with 16 companies during 2022 and monitored the
progress of the companies that were engaged with in 2021. In 2022, Evli attended in 34 general meetings in
Finland.
4444
Scope 1 + 2 Scope 1+2+3
Absolute emissions (t CO e, coverage 70%) 759,000 3,807,000
Carbon intensity (t CO e/$M Sales, coverage 77%) 143.1 824.0
Source: Evli, MSCI ESG Research
GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
In addition to independent engagement, Evli is committed to several investor initiatives that aim, among
other things, to have a broader impact on the market, to influence companies at risk from a climate change
perspective and to encourage governments in different countries to take more ambitious measures to mitigate
climate change.
Evli is involved in major climate initiatives such as the Climate Action 100+ initiative, which aims to influence the
major emitters of greenhouse gases, the CDP investor letters (climate change, deforestation, and water) and
the CDP-coordinated collaborative engagement campaign to set science-based climate targets. Evli has also
co-signed with other investors a letter to governments, the Global Investor Statement to Governments on the
Climate Crisis, encouraging governments to ensure that global temperature increases are limited to 1.5°C, take
early action to keep greenhouse gas emissions in line with the 2030 target, promote non-carbon emission
reductions, increase the supply of climate finance and strengthen climate reporting across the financial system
through mandatory TCFD reporting, requiring science-based climate transition plans, and coordinating and
promoting coherence in global financial regulation. In addition to these measures, Evli regularly monitors
changes in climate change regulation and has been involved in the EU legislative debate in Finland.
Indicators and objectives
Evli regularly monitors the development of the carbon footprint of its equity and corporate bond funds by
calculating the carbon intensity weighted by the portfolio weights of the funds, i.e. by analysing Scope 1 and
2 emissions
1
of each investment, relating them to the company’s revenue and weighting each investment by
its relative share in the portfolio. The carbon intensity obtained by the fund is compared to the corresponding
figure of the fund’s benchmark index.
Evli has also mapped the absolute and financed emissions of its investments. The absolute emissions of Evli’s
investments are the total emissions of the investments in relation to Evli’s ownership share of the total value
of the investments. Similarly, the financed emissions are calculated by dividing the absolute emissions of the
investments by the present value of all investments. The absolute emissions and weighted average carbon
intensity is presented in the table to the left for Scope 1, 2 and 3 emissions. For Scope 3 emissions, it should be
noted that the figures are largely still based on estimates and should be interpreted as indicative. In addition
to Evli’s equity and corporate bond funds, direct equity and corporate bond investments are included in the
data in the table. While carbon footprint tracking helps to understand the emissions profile of investments, it is
not a complete single measure of the emissions associated with a portfolio and does not help to assess future
emissions trends or mitigation opportunities. For this reason, in addition to carbon emissions, Evli monitors
the emissions reduction targets of its investments and their development as one of its key indicators. Evli has
mapped the distribution of its investments’ climate targets between 2019 and 2022, and the development of
the targets is shown in the graph below. The climate targets for investments are split between No target and
Approved science-based target (SBT). Evli aims to increase the share of investments with science-based climate
targets and thereby reduce the potential risks to investments from climate change.
Distribution of climate targets 2019-2022
Source: Evli, ISS ESG
1
The calculation of carbon footprint figures is defined by the international standard GHG protocol (Greenhouse Gas Protocol), for example. The GHG proto-
col breaks down greenhouse gas emissions into scopes 1-3. Scope 1 greenhouse gas emissions refer to emissions directly occurring from sources that are
owned or controlled by the company. Scope 2 greenhouse gas emissions refer to indirect emissions generated in the production of electricity purchased by
the company. Scope 3 includes indirect emissions related to the company, including those from products, outsourcing, and business travel.
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
No target Non-Ambitious Target Ambitious target Committed SBT Approved SBT
2019 2020 2021 2022
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GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
All of Evli’s direct investments, including equity and corporate bond funds and direct equity and corporate bond
investments in asset management, have been taken into account in the mapping of climate targets. The graph
shows the evolution of the climate targets between 2019 and 2022. The graph indicates that over the course
of four years, the share of “No Target” has significantly decreased and the share of science-based targets has
clearly increased. For example, the share of “Approved SBT” has increased by 22 percentage points and the
share of “Committed SBT” increased by 11 percentage points. Correspondingly, in the same period, the share of
“No Targets” decreased by 27 percentage points. The positive development shown in the graph is also in line with
Evli’s aspirations, as encouraging the setting of climate targets is an important part of both Evli’s engagement
work and Evli’s climate roadmap. Eight of the companies under Evli’s own climate engagement that Evli started in
2021 committed to SBT in 2022.
Evli also uses scenario analysis to identify climate-related risks and opportunities. Based on the situation at the
end of 2022, 14 percent of Evli’s equity and corporate bond funds were aligned with the 1.5-degree scenario
and 58 percent with the 2-degree scenario. In addition, Evli analyses the share of companies owning fossil fuel
reserves and compares it to the corresponding figure in the fund’s benchmark index. Evli also examines the
transition of companies to low-carbon status, dividing companies into different categories according to the
risks and opportunities associated with their energy transition. This allows Evli to better assess the potential
for reducing the carbon footprint of funds and to identify companies that are at risk from a climate change
perspective. Evli also regularly explores new tools to better measure the actual impact of investments on
different stakeholders and the environment, including the impact on climate change. Evli’s ESG reports for equity
and corporate bond funds are also publicly available on Evli’s website evli.com.
In line with its responsible investment objectives, Evli set separate climate targets in June 2021. Evli aims to
achieve carbon neutrality by 2050 at the latest. The target applies to emissions from both Evli’s own operations
and investments. In addition to the main target, Evli set three intermediate targets:
1) Evli aims to achieve carbon neutrality for emissions from its own operations (Scope 1 and 2) by 2025 at
the latest.
2) Evli sets an interim target of a 50 percent reduction in indirect emissions from investments by 2030,
provided that the investment environment allows for it. The base year is 2019.
3) Evli established a Working Committee for the years 2021-2022 in order to assess how the
investment-related interim target can be reached through real world carbon emission reductions and
to ensure that it will be in line with the Paris Agreement. In this assessment work, Evli will use, among others,
a Science-Based Targets (SBT) framework.
The milestones and roadmap of climate targets support the long-term target of carbon neutrality. In line with
the climate targets roadmap, Evli will refine the monitored metrics as work progresses and report accordingly.
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GovernanceBusiness Overview GovernanceFinancial ReviewBusiness Overview Responsibility
Carbon intensity (1)
(t CO
2
e / USD million)
Compared
to benchmark (2)
Weight of companies
owning fossil fuel
reserves (3) (%)
Compared to
benchmark
(2) (%-points) Coverage / Fund (4)
Coverage /
Benchmark index (4)
Investments in Solutions
category in the MSCI’s
Low Carbon Transition
classification (5)
Equity Funds
Evli Emerging Frontier 177.6 5.8% 42.0% 0.0%
Evli Europe 270.6 135.2% 5.7% -3.2% 96.7% 99.9% 12.3%
Evli GEM 564.3 75.3% 7.8% -0.2% 92.8% 99.9% 0.0%
Evli Japan 71.1 -8.7% 0.0% -7.0% 85.2% 100.0% 1.6%
Evli Global 64.7 -54.1% 0.0% -7.8% 96.2% 99.6% 4.4%
Evli Global X 58.7 -58.4% 0.0% -7.8% 95.3% 99.6% 4.7%
Evli Equity Factor Europe 46.8 -59.3% 0.0% -8.9% 96.2% 99.9% 5.9%
Evli Equity Factor Global 46.1 -67.3% 0.0% -7.8% 94.7% 99.6% 3.8%
Evli Equity Factor USA 41.2 -71.3% 0.0% -6.5% 98.5% 99.6% 3.2%
Evli North America 92.8 -38.4% 0.7% -6.4% 99.3% 99.6% 3.2%
Evli Nordic 68.2 2.6% 4.3% 0.4% 94.2% 99.7% 10.3%
Evli Nordic Small Cap 143.0 49.1% 4.1% 3.0% 64.3% 85.0% 9.8%
Evli Sweden Equity Index 23.9 0.0% 0.0% 0.0% 96.5% 100.0% 3.4%
Evli Swedish Small Cap 107.6 132.6% 0.0% 0.0% 76.2% 92.3% 3.1%
Evli Finland Mix 181.9 0.0% 82.2% 5.8%
Evli Finnish Small Cap 89.8 -11.2% 0.0% 0.0% 67.8% 72.5% 13.8%
Evli Finland Select 127.8 15.5% 0.0% 0.0% 92.1% 91.0% 8.0%
Evli USA Growth 127.6 -11.1% 6.1% -0.4% 97.3% 99.6% 11.7%
Fixed Income Funds
Evli Green Corporate Bond 135.6 -36.8% 0.6% -6.3% 77.9% 94.0% 8.7%
Evli European High Yield 124.0 -29.7% 0.5% -3.0% 58.1% 76.5% 0.0%
Evli European Investment Grade 111.7 -34.5% 1.0% -8.3% 90.2% 95.8% 10.9%
Evli Emerging Markets Credit 312.0 -50.2% 12.5% -2.6% 65.0% 87.2% 3.5%
Evli Euro Liquidity 114.3 0.0% 67.3% 0.9%
Evli Short Corporate Bond 196.9 0.0% 79.8% 3.7%
Evli Nordic Corporate Bond 87.2 -31.4% 0.0% -6.7% 78.0% 96.0% 13.3%
Evli Nordic 2025 Target Maturity 105.0 0.0% 58.9% 11.5%
Evli Target Maturity Nordic Bond 122.4 0.0% 65.0% 2.2%
Evli Corporate Bond 128.3 -16.8% 0.0% -6.9% 84.9% 92.1% 6.6%
Sources: Evli, MSCI ESG Research
Evli uses weighted average carbon intensity to measure carbon footprint. A fund’s weighted average carbon intensity is calculated by dividing the company-specific scope 1 and scope 2 greenhouse gas emissions by the company’s revenues. After that, company-specific carbon intensity is multiplied by the company’s
portfolio weight. The fund-specific carbon footprint is a sum of company-specific carbon intensities apportioned based on portfolio weights. Scope 1 greenhouse gas emissions refer to emissions directly occurring from sources that are owned or controlled by the company. Scope 2 greenhouse gas emissions refer to
indirect emissions generated in the production of electricity purchased by the company.
Compared to benchmark figure shows how the fund compares to corresponding figures for the benchmark index. As it is not possible to calculate this figure to all benchmark indeces, some sections are left blank.
Weight of companies owning fossil fuel reserves shows the share of companies owning coal, gas or oil reserves in the fund. In this report coal reserves refer to use of coal in energy production (thermal coal).
Coverage indicates the share of fund’s/index’s holdings (measured by market value) for which emissions data is available. The emissions data is based on emissions reported by the companies or other publicly available emissions data (e.g. CDP) and the data provider’s estimate of emissions.
Shows the share of companies which have been classified in MSCI’s Low Carbon Transition Classification to Solutions category. The Solutions category means that, according to MSCI’s analysis, the companies in this category have the potential to benefit through the growth of low-carbon products and services.
Although Evli Plc’s (later Evli) information providers, including without limitation, MSCI ESG Research Inc. and its affiliates (the “ESG Parties”), obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness of any data herein. None of the
ESG Parties makes any express or implied warranties of any kind, and the ESG Parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose, with respect to any data herein. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data
herein. Further, without limiting any of the foregoing, in no event shall any of the ESG Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
4747
GovernanceResponsibilityBusiness Overview GovernanceResponsibility Financial ReviewBusiness Overview
FINANCIAL REVIEW
GovernanceBusiness Overview Responsibility Financial Review
The year 2022 was particularly significant for Evli with
two large and successful M&A transactions. In the partial
demerger carried out in the spring, Evli focused on
investment services and the banking business was merged
with Fellow Finance Plc. EAB Group Plc merged with Evli at
the beginning of October, which further strengthened Evli’s
position as Finland’s leading asset manager. At the same
time, the alternative investment funds continued to grow,
driven by strong client demand. Over the past two years,
Evli has managed to more than double the assets under
management in alternative investment funds.
48484848
Key financial figures
2022
Carve-out
2021
Carve-out
2020
Carve-out
2019
Carve-out
2018
Income statement key figures
Net revenue, M€ 96.1 116.2 80.1 74.9 69.7
Operating profit/loss, M€ 30.9 56.6 32.3 25.5 25.6
Operating profit margin, % 32.1 48.7 40.4
1
34.0
1
36.7
1
Profit/loss excl. non-recurring items related to
mergers and acquisitions, M€
37.1 - - - -
Profit for the financial year, M€ 25.1 45.5 25.5 20.2 20.6
Profitability key figures
Return on equity (ROE), % 20.4 50.4 35.7 32.3 35.8
Balance sheet key figures
Equity-to-assets ratio, % 39.1 27.7 - - -
Other key figures
Expense ratio (operating costs to net revenue) 0.67 0.52 - - -
Recurring revenue ratio, % 123 135 128 124 113
Permanent personnel at the end of the period 294 283 - - -
Assets Under Management, mrd. € 16.0 17.5 - - -
Share based key figures
Earnings per share, € 0.83 - - - -
Equity to owners of parent entity per share, € 5.1 - - - -
Dividend per share, € 0.80 - - - -
Capital return per share, € 0.35 - - - -
Dividend to earnings ratio, % 97% - - - -
Effective dividend yield, % 7.6% - - - -
Price to earnings ratio (P/E) 18.3 - - - -
Market value, M€ 398.1 - - - -
Diluted number of shares at the end of period 26,945,975 - - - -
Trading volume (B-share), % 6% - - - -
1
Unaudited
20.4
123
16.0
RETURN ON EQUITY %
RECURRING REVENUE RATIO %
ASSETS UNDER MANAGEMENT BN. €
(2021: 50.4)
(2021: 135)
(202 1 : 17.5)
GovernanceResponsibility Financial ReviewBusiness Overview
49494949
Graphs of the financial development
Board of Directors’ proposal to the annual
general meeting
GovernanceResponsibility Financial ReviewBusiness Overview
NET REVENUE M€
OPERATING PROFIT M€ AND
PROFIT MARGIN %
NET COMMISSION INCOME M€
PROPORTION OF RECURRING REVENUE
TO OPERATING EXPENSES %
RETURN ON EQUITY % DEVELOPMENT OF ASSETS UNDER
MANAGEMENT, BN. €
2018 2018
69.7
25.6
36.7
34.0
40.3
25.5
32.3
56.6
32.2
2019 2019
74.9
2020 2020
80.1
2021 2021
116.2
2022 2022
96.1
2018
67.0
2019
72.2
2020
76.8
2021
111.7
2022
92.1
2018
35.8
2019
32.3
2020
35.7
2021
50.4
2022
20.4
2018
11.4
2019
14.3
2020
14.1
2021
17.5
2022
16.0
45.9
30.9
2018
113
100
2019
124
2020
128
2021
135
2022
123
NET PROFIT M€
2018
20.6
2019
20.2
2020
25.5
2021
45.5
2022
25.1
DIVIDEND & EARNINGS/SHARE €
2018
0.68
2019
0.71
2020
0.88
2021
1.47
2022
0.81
1.15
0.73
0.66
0.61
1.06
5050
Market Developments
From an investor’s perspective, 2022 was anything but a good year. Several years of positive market
momentum was turned on its head when Russia launched a war of aggression in Ukraine at the end of
February. The war in Europe, combined with surging inflation and rapidly rising interest rates, increased
fear and uncertainty about the future. Meanwhile, economic growth was pressured by continued pandemic
restrictions in Asia, which resulted in logistical challenges for many industries in terms of production inputs.
As a result of the negative operating environment, asset valuations in fixed income, equities and real assets fell
and fears of a recession grew.
A major driver behind the accelerating inflation was the explosion in raw material and energy prices following
the war launched by Russia. For energy in particular, price pressures increased during the summer and
autumn as gas supplies from Russia to Europe declined while each country sought to build up energy reserves
for the coming winter. The situation was further complicated by the exceptional weather conditions seen
during the year, which limited Europe’s own energy production. Asia was also hit by weather-related issues,
where an exceptionally hot summer forced plant closures and industrial activity to be curtailed.
As inflation rose, the US and European central banks rapidly increased their policy rates, which was reflected
in a fall in the value of fixed income investments. Despite these measures, inflation remained high until the end
of the year.
In the investment markets, valuation levels fell across the board. In equity markets, US equities (S&P 500) fell
by 18.1 percent and European equities (Stoxx 600) by 10.3 percent year-over-year. Over the same period,
Finnish shares (OMX Helsinki Cap) fell by 12.7 percent.
The development in fixed income markets was also negative in 2022. The value of higher-rated corporate
bonds fell by 14.2 percent and euro area government bonds by 18.4 percent. Lower-rated high yield bonds fell
by 9.4 percent. The euro depreciated by 5.8 percent against the dollar and reached parity.
Development of revenue and result
In 2022, reflecting the general market development, Evli Group’s net revenue decreased by 17 percent from
the previous year to EUR 96.1 million (EUR 116.2 million). The negative development of net revenue was mainly
due to lower fees from advisory business as well as a significant decrease in performance-based fees, which
are dependent on the development of investment activities, versus the previous year. The performance-based
fees for the review period amounted to EUR 0.6 million (EUR 15.9 million). The net fee income for the Group
fell by 17 percent compared to the comparison period to EUR 92.1 million (EUR 111.7 million). Income from own
investment activities amounted to EUR 3.7 million (EUR 3.5 million), including income from securities trading and
currency brokerage.
Total costs for the year 2022, including depreciation and impairment, amounted to EUR 65.5 million (EUR
60.1 million). The costs include EUR 6.3 million of non-recurring costs related to the corporate transactions
made during the year, the most significant of which was the merger of EAB Group Plc with Evli in the autumn.
The Group’s personnel expenses amounted to EUR 39.2 million (EUR 36.6 million), including an estimate of
performance bonuses for the personnel. The Group’s administrative expenses amounted to EUR 19.6 million
(EUR 17.6 million). The Group’s depreciation and impairment amounted to EUR 5.8 million (EUR 4.8 million). Other
operating expenses were EUR 0.8 million (EUR 1.3 million). Evli’s expense/income ratio was 0.67 (0.52).
The operating profit decreased from the previous year by 46 percent and was EUR 30.9 million (EUR 56.6
million). Operating profit margin was 32.1 percent (48.7%). The operating profit and the operating profit margin
excluding non-recurring items were EUR 37.1 million and 39 percent, respectively. The net result for the period
considered was EUR 25.1 million (EUR 45.5 million). Due to the weakened result, the Group’s return on equity
decreased to 20.4 percent (50.4%).
At the beginning of April, Evli Plc was created as a result of a partial demerger. As part of the overall
arrangement, Evli made a significant investment in another entity created by the arrangement, Fellow Bank
Plc. The investment is of a long-term nature and is not related to the Group’s operational activities. For
these reasons, the company presents the result of the valuation of the investment as a separate item in the
statement of other comprehensive income in accordance with IFRS 9. During the period, the change in value of
the investment amounted to EUR -3.4 million.
Board of directors report
1.1.–31.12.2022
GovernanceResponsibility Financial ReviewBusiness Overview
5151
DEVELOPMENT OF COMMISSION INCOME M€ NET SALES PER FUND CLASSES 2022 M€
600
400
200
0
-200
-400
-600
-800
-1000
-1200
Fixed income
funds
Alternative
investment
funds
Other
-190
-991
427
-8
Equity
funds
Traditional funds
Alternative funds
Fund performance
fees
Brokerage
Asset Management
(AM)
AM performance fees
Advisory fees
Incentive
management
Other advisory fees
2022 2021
40.5
44.2
19.2
12.3
0.6
8.2
8.9
11.7
6.6
7.3
0.0
7.7
5.8
11.8
10.4
8.5
0.5
0.5
Business areas
Wealth management and investor clients
The Wealth Management and Investor Clients segment offers services to present and future high net
worth private individuals and institutions. The comprehensive product and service selection includes asset
management services, fund products offered by Evli and its partners, various capital market services and
alternative investment products. The segment also includes execution and operations activities that directly
support these core activities.
Discretionary asset management
In 2022 Assets under management decreased from the level of the previous year due to the weak market
development at the beginning of the year. At the end of the year, Evli had EUR 5.5 billion (EUR 6.0 billion) in
discretionary asset management assets, which includes both traditional and digital services.
According to the Kantar Prospera’s “External Asset Management 2022 Finland” survey published in the
summer, Evli’s institutional asset management was the most used asset manager in Finland. According to the
survey, Evli was rated the second-best asset manager in Finland in terms of overall quality. Evli has been
ranked in top positions in the survey for 10 consecutive years in terms of overall quality: first in six years and
second in four years.
In the institutional asset management survey by SFR published in November, Evli was awarded the “Gold
Award” for excellence in asset management services and ranked second in terms of overall quality among
large asset management companies. In addition, Evli was awarded for the best responsible investment (ESG)
expertise in Finland among large asset managers.
Traditional mutual funds
In 2022 mutual funds received more redemptions than subscriptions, as a result of which the net sales of
the funds remained clearly negative. In cumulative terms, net redemptions of EUR -1.2 billion (EUR 1.2 billion)
were made to Evli’s mutual funds in January-December. According to Evli’s strategy, the goal is to increase the
international sales of its investment products. In 2022, net subscriptions from foreign investors amounted to
EUR -0.7 billion (EUR 0.7 billion).
The returns of Evli’s fixed income funds remained negative in the review period due to higher interest rates.
The best performing funds in relation to the benchmark index were Evli Euro Government Bond and Evli
European High Yield. The performance of equity funds was also negative in the review period due to the
general market situation. The Evli Japan and Evli Equity Factor USA funds performed best in relation to the
benchmark index.
During the review period, 41 percent of Evli’s traditional mutual funds outperformed their benchmarks. In a
three-year review, 44 percent of the mutual funds outperformed the benchmark. At the end of the review
period Evli was ranked as the second-best fund management company in Finland, in Morningstar’s qualitative
ranking, with 3.77 stars.
The combined capital of traditional investment funds managed by Evli Fund Management Company was EUR
8.6 billion (EUR 10.6 billion). Of this, approximately EUR 2.8 billion was invested in equity funds (EUR 3.4 billion),
EUR 5.6 billion in fixed income funds (EUR 7.0 billion) and EUR 0.2 billion in balanced funds (EUR 0.1 billion). At the
end of December, EUR 2.2 billion of Evli’s fund capital came from clients outside of Finland (EUR 3.3 billion), when
regarding direct mutual fund investments.
Responsibility is a central part to Evli’s asset management. At the end of the review period, the average ESG
rating of Evli’s funds was “AA” (source: MSCI ESG database).
GovernanceResponsibility Financial ReviewBusiness Overview
5252
Other investment products
The challenging market environment was also reflected in the commissions received from brokerage of other
investment products. During the period under review, commissions from brokerage activities fell from the
comparison period.
Financial performance
In 2022 the net revenue of the Wealth Management and Investor Clients segment decreased from the
comparison period due to the weak market development, the fund redemptions, and lower performance-based
fees. The net revenue of the segment decreased by 17 percent from the previous year and was EUR 75.7 million
(EUR 91.4 million). The performance-based fees from asset management and funds amounted to EUR 0.6 (EUR
15.9 million).
KEY FIGURES WEALTH MANAGEMENT AND INVESTOR CLIENTS SEGMENT
M€ 2022
Carve-out
2021 Change %
Net revenue 75.7 91.4 -17%
Operating profit/loss before Group allocations 38.1 53.8 -29%
Operating profit/loss 27.4 44.8 -39%
Development of client assets under management
Client assets under management consist of direct investments in mutual funds, discretionary asset
management and assets managed through Evli’s subsidiaries and associated companies.
Assets under management decreased from the previous year due to negative net sales and the market
development. At the end of December 2022, the Group’s total net assets under management amounted to EUR
16.0 billion (EUR 17.5 billion).
At the end of December, assets under discretionary management amounted to EUR 5.5 billion (EUR 6.0 billion).
Correspondingly, direct investments in Evli’s traditional mutual funds were EUR 6.0 billion (EUR 7.6 billion) at the
end of the year. The assets under management in alternative investment products was EUR 2.4 billion (EUR 1.6
billion). Assets managed through subsidiaries and associated companies stayed at the previous year’s level and
were EUR 2.1 billion (EUR 2.1 billion).
SPLIT OF ASSETS UNDER MANAGEMENT IN
ALTERNATIVE INVESTMENT PRODUCTS %
Real Estate 34.0
Private Equity 39.0
Private Debt 9.0
Othe alternatives 18.0
ASSETS UNDER MANAGEMENT BN. €
Asset Management 5.5
Mutual Funds (Direct) 6.0
Alternative Funds 2.4
Other asset 2.1
ASSETS UNDER MANAGEMENT BN. €
Advisory and corporate clients
The Advisory and Corporate Clients segment provides corporate and capital management services, including
advisory services on acquisitions and divestments, IPOs and share issues. The segment also provides planning
and administration of compensation and incentive plans and corporate analysis services for listed companies.
M&A transactions
Client activity in the advisory business was challenging throughout the year, due to the challenging market
environment. In particular, fundraising transactions were cancelled or postponed to the future. Despite all
that, the company’s order book is at a good level and the outlook for the future is favorable.
Incentive plans
At the end of the year 2022, the company had around 130 incentive plans under administration. Evli annually
advises around 120 companies on compensation design mandates. In the Finnish client base, activity remained
at a very high level in listed companies, especially with the implementation of employee share issues and
employee share savings plans for the entire personnel. Also, sales to both Swedish listed and domestic unlisted
companies increased during the year.
2018
11.4
2019
14.3
2020
14.1
2021
17.5
2022
16.0
ASSETS UNDER MANAGEMENT IN ALTERNATIVE
INVESTMENT PRODUCTS BN. €
2018
0.3
2019
0.9
2020
1.1
2021
1.6
2022
2.4
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5353
Net revenue for the Incentives business for the year 2022 was EUR 10.4 million (EUR 8.5 million), positively
impacted by both the increase in the number of client companies compared to the previous year and the
continued growth in cross-selling of solutions for incentive design and administration. In addition, the interest
of existing clients in more comprehensive incentive plans, such as all employee share saving plans, continued
to grow. The merger of Evli and EAB Group Plc further strengthened Evli’s position as the leading remuneration
expert in Finland. In the arrangement, the activities of Elite Palkitsemispalvelut Oy, which mainly focus on
the establishment and administration of personnel funds, were combined with the incentive business of Evli.
As a result, Evli now manages personnel or remuneration funds also for around 90 companies, covering
approximately 105,000 fund members.
Financial performance
In 2022, the net revenue in the Advisory and Corporate Clients segment decreased from the previous year
and amounted to EUR 16.4 million (EUR 20.2 million). The net revenue was negatively impacted especially by
the decrease in advisory fees from M&A transactions. By contrast, commissions in the incentive business
continued to grow and rose to a higher level than in the previous year. Significant fluctuations in revenue from
one quarter and year to the next are typical of the segment’s M&A activities
KEY FIGURES ADVISORY AND CORPORATE CLIENTS SEGMENT
M€ 2022
Carve-out
2021 Change %
Net revenue 16.4 20.2 -19%
Operating profit/loss before Group allocations 6.1 9.6 -37%
Operating profit/loss 4.2 7.4 -43%
Group operations
The Group Operations segment includes support functions serving the business areas, such as Information
Management, Financial Administration, Marketing, Communications and Investor Relations, Legal Department,
Human Resources, and Internal Services. The company’s own investment operations that support the
company’s operations, and the Group’s supervisory functions (Compliance, Risk Management and Internal
Audit) are also part of Group Operations.
Financial performance
In 2022 the net revenue in the Group Operations segment decreased compared to the previous year and was
EUR 4.0 million (EUR 4.6 million).
KEY FIGURES GROUP OPERATIONS SEGMENT
M€ 2022
Carve-out
2021 Change %
Net revenue 4.0 4.6 -13%
Operating profit/loss before Group allocations -13.6 -7.3 86%
Operating profit/loss -1.0 4.0 -126%
Personnel
At the end of December, Evli had 294 (250) permanent employees. In addition, the Group employed 50 (36)
temporary employees including trainees and summer workers. 94 percent (92%) of the personnel worked in
Finland and six percent (8%) outside Finland.
GovernanceResponsibility Financial ReviewBusiness Overview
5454
Responsibility
Responsibility is one of Evli’s strategic focus areas. In asset management, the company’s most important
business area, responsibility factors are integrated into investment activities and responsible investment
is therefore a systematic part of portfolio management. The investments made by Evli’s mutual funds are
monitored for potential breaches of standards, and the asset management team works independently and
together with other investors to influence companies.
Evli’s successful work in responsible investment received again recognition in external evaluations. Evli was
rated the best in responsible investing among large asset management companies in a client survey by SFR
Scandinavian Financial Research, which evaluated 18 asset managers on their responsible investing expertise
based on the views of Finland’s largest professional institutional investors.
Find out more about the development of responsibility and responsible investment at Evli during 2022 on page
14-46.
Balance sheet and funding
The Group’s balance sheet total at the end of December 2022 was EUR 366.6 million (EUR 368.3 million). The
Group’s equity at the end of the review period was EUR 143.4 million (EUR 102.1 million). A breakdown of the
changes in equity during the period is given in the table section of the release.
At the end of the year, the Group’s cash and cash equivalents amounted to EUR 115.4 million (EUR 47.8 million)
and liquid mutual fund investments to EUR 23.8 million (EUR 42.7 million). Evli Plc has granted investment loans
to its clients. At the end of the year, the loans totalled EUR 34.8 million (EUR 87.4 million). There were no credit
losses during the review period.
The lease liability recognised in the balance sheet for business premises at the end of the year was EUR
12.9 million (EUR 7.6 million), of which short-term liabilities amounted to EUR 1.7 million (EUR 1.7 million). Evli Plc
has issued structured bonds for a total amount of EUR 106.3 million (EUR 91.0 million), which together with
equity form the basis of the Group’s long-term debt financing. At the end of December 2022, the company’s
share capital amounted to EUR 53.7 million. The share capital was increased by EUR 30 million in the EAB
arrangement.
The group’s core capital (CET 1) as at December 31, 2022, was EUR 42.3 million and the group’s own funds
to minimum capital ratio was 257.2 percent. As an investment services company, Evli Plc complies with the
Investment Firm Regulation and Directive (IFR/IFD). The most restrictive capital requirement for Evli at the
end of the year was determined on the basis of fixed overhead costs. The minimum capital requirement based
on fixed overhead costs was EUR 16.4 million. The Group’s equity ratio was 39.1 percent at December 31, 2022.
Decisions taken by the extraordinary general meeting
Evli Plc’s Extraordinary General Meeting held on July 14, 2022 approved Evli Plc’s (“Evli”) and EAB Group Plc’s
arrangement pursuant to which EAB group’s parent company EAB Group Plc, and its fully owned subsidiary
EAB Asset Management Ltd will merge into Evli.
Merger, Evli and EAB Group Plc
To carry out the combination, the General Meeting resolved to approve the statutory absorption merger
of EAB Group into Evli as set forth in the merger plan (“the Merger Plan”) approved and signed by the Board
of Directors of the companies, dated and published on May 31, 2022, as well as registered with the Trade
Register on June 2, 2022, and the proposals of the Board of Directors for the execution of the plan regarding
following matters:
a) issuance of shares of Evli as merger consideration to the shareholders of EAB Group Plc, and
b) increase of share capital
The contemplated effective date of the merger is October 1, 2022. The effective date of the merger can still
change in accordance with the merger plan.
According to the Merger Plan, EAB Group Plc will merge into Evli by way of statutory absorption merger
whereby all assets and liabilities of EAB Group Plc are transferred to Evli without a liquidation procedure in
accordance with the Merger Plan.
In addition to other matters described in the Merger Plan, the resolution on the merger included, among other
things, the following key matters described more detail in the Merger Plan:
a) Merger consideration
Pursuant to the Merger Plan, the shareholders of EAB Group Plc will receive as merger consideration
0.172725 new class B shares in Evli for each share they own in EAB Group Plc and a cash consideration for
a total amount of EUR three (3) million, which shall be equally distributed between the outstanding shares
of EAB Group Plc.
b) Increase of share capital
The General Meeting resolved pursuant to the Merger Plan to increase the share capital of Evli by EUR
30,000,000 in connection with the registration of the completion of the merger. After the increase, the
share capital of Evli is EUR 53,745,459.66.
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5555
Merger, Evli and EAB Asset Management Ltd
The General Meeting resolved to approve the statutory absorption merger of EAB Asset Management Ltd into
Evli as set forth in the merger plan approved and signed by the Board of Directors of the companies, dated and
published on May 31, 2022, as well as registered with the Trade Register on June 2, 2022. As the Evli and EAB
Asset Management Ltd merger is completed after the merger of Evli and EAB Group Plc has been completed,
EAB Asset Management Ltd shall be a fully owned subsidiary of Evli at the time of the completion and no
merger consideration shall be issued.
Shares and shareholders
Evli Plc was created by a partial demerger from Evli Bank Plc on April 2, 2022. Trading in Evli Plc’s Series B
shares began on the main list of Nasdaq Helsinki on April 4, 2022.
Evli Plc’s total number of shares at the end of December was 26,275,302 shares, of which 14,485,148 were
series A shares and 11,790,154 series B shares. The company held no own shares at the end of December
2022.
The closing price of Evli Plc’s share on December 31, 2022, was EUR 15.15. The lowest closing price for the year
was EUR 14.95 and the highest was EUR 19.90. A total of 641,637 Evli Plc shares were traded during April to
December. The combined market value of A and B shares was EUR 398.1 million. For the purpose of calculating
the market value, the A share is valued at the closing price of the B share for the period.
Evli’s total number of shareholders was 6,595 at the end of December 2022. Finnish companies owned 53
percent and the shareholding of Finnish private individuals was 28 percent. The remaining 19 percent of the
shares were owned by financial and insurance corporations, general government, non-profit-making entities
and foreign investors. The ten largest shareholders are presented on page 57.
Business risks and risk management
the most significant risks for the Group in the near term are the general market development and the impact
of the changing operating environment and inflation on Evli’s businesses. The performance of the asset
management business is mainly influenced by the development of assets under management, which depends
on, among others, the development of capital markets and the general demand for investment products. On the
other hand, alternative investment products in particular are based on long-term agreements which provide
a steady income stream. Profit development is also influenced by the realisation of performance-related fee
income linked to the successful management of client assets. Performance fees can vary widely from quarter
to quarter and from financial year to financial year.
General market developments also have an impact on brokerage and advisory mandates. In the Corporate
Finance business, potential changes in market confidence among investors and corporate managers may lead
to project delays or interruptions.
In addition to its core business, Evli has granted investment loans to its clients, as well as owning equity and
mutual fund investments. The most significant risks related to its own investment activities are liquidity,
market and interest rate risks. These risks are managed through limits set by Evli Plc’s Board of Directors,
which are monitored on an ongoing basis. The company’s investments are made on the basis that they must
not endanger the Group’s results or solvency. Despite good supervision, investment activities always involve
a certain degree of risk, which may result in significant quarterly fluctuations in the returns from investment
activities.
A more detailed description of operational risks is provided on pages 91-98.
Outlook for 2023
the year 2023 will start in an uncertain mood, due to increased interest rate and inflation fears, risen
geopolitical risks and a market downturn.
Evli has managed to strengthen its market position as a result of the corporate transactions made during
2022. With synergies from the arrangements and the non-recurring costs allocated to 2022, we expect the
operating result to be well above the comparison period (EUR 30.9 million in 2022).
Helsinki, January 26, 2023
EVLI PLC
Board of Directors
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5656
Shares and Shareholders’
Evli Plc was created by a partial demerger from Evli Bank Plc on April 2, 2022. Trading in Evli Plc’s Series B
shares began on the main list of Nasdaq Helsinki on April 4, 2022.
Shares and Shareholders’ Equity
Evli Plc has two series of shares, the A and B series. One series A share entitles the holder to twenty (20) votes
and one series B to one (1) vote at the General Meeting. The two series of shares have equal rights to dividends
and other forms of profit distribution. The Company’s series B share is listed on the official list of Nasdaq
Helsinki with the ticker symbol “EVLI” and ISIN code FI4000513437.
At the end of December 2022, the aggregate number of Evli’s shares was 26,275,302, with the series A shares
accounting for 14,485,148 shares and series B shares for 11,790,154 shares. The company held no own shares
at the end of December 2022. At the end of 2022, the company’s share capital amounted to EUR 53.7 million.
Evli’s share capital was increased by EUR 30.0 million in connection with the registration of the completion of
the merger between EAB Group Plc and Evli on October 1, 2022.
Trading in shares
At the end of December, 11,790,154 of Evli’s series B shares were publicly traded in Nasdaq Helsinki. The share
exchange between April and December totalled EUR 10.9 million while the number of Evli shares exchanged
was 641,637. During 2022, the highest closing price of the share was EUR 19.90 while the lowest closing price
was EUR 14.95. The share’s closing price on December 31, 2022 was EUR 15.15. Evli’s market capitalisation,
calculated based on both the unlisted series A and the listed series B shares, was EUR 398.1 million on
December 31, 2022. The series A shares are valued at the year-end closing price of the series B shares.
Shareholders
At the end of 2022, Evli had 6,595 shareholders in the book-entry register. The stake of Finnish companies
was 53 percent and that of private Finnish individuals was 28 percent. The remaining 19 percent of the shares
were owned by Financial and insurance institutions, public sector organizations, non-profit institutions serving
households and foreign investors.
398.1
MARKET CAPITALISATION, M€
BREAKDOWN OF SHAREHOLDINGS
BY OWNER GROUP
BREAKDOWN OF VOTES
BY OWNER GROUP
GovernanceResponsibility Financial ReviewBusiness Overview
Companies 53.1
Financial and insurance institutions 12.2
Public sector organizations 0.8
Households 28.0
Non-profit institutions 2.0
Foreigners 0.9
Companies 64.3
Financial and insurance institutions 16.0
Public sector organizations 0.1
Households 19.4
Non-profit institutions 0.2
Foreigners 0.1
5757
LARGEST SHAREHOLDERS 31.12.2022
A Shares B Shares Shares total % of shares Number of votes % of votes
1. Oy Prandium Ab 3,803,280 950,820 4,754,100 18.1 77,016,420 25.6
2. Oy Scripo Ab 3,803,280 950,820 4,754,100 18.1 77,016,420 25.6
3. Ingman Group Oy Ab 1,860,000 800,000 2,660,000 10.1 38,000,000 12.6
4. Oy Fincorp Ab 2,319,780 323,694 2,643,474 10.1 46,719,294 15.5
5. Lehtimäki Jyri Maunu Olavi 533,728 171,031 704,759 2.7 10,845,591 3.6
6. Moomin Characters Oy Ltd 0 411,235 411,235 1.6 411,235 0.1
7. Tallberg Claes Henrik 369,756 32,588 402,344 1.5 7,427,708 2.5
8. Hollfast John Erik 328,320 71,680 400,000 1.5 6,638,080 2.2
9. Joensuun Kauppa ja Kone Oy 0 262,265 262,265 1.0 262,265 0.1
10. Umo Invest Oy 0 240,074 240,074 0.9 240,074 0.1
Total 26,275,302 100.0 301,493,114 100.0
BREAKDOWN OF SHAREHOLDINGS BY OWNER GROUP 31.12.2022
Number of
shareholders % of shareholders Number of shares % of shares Number of votes % of votes
Companies 301 4.6 13,950,071 53.1 193,814,711 64.3
Financial and insurance institutions 29 0.4 4,016,634 12.2 48,092,454 16.0
Public sector organizations 3 0.0 206,583 0.8 206,583 0.1
Households 6,209 94.1 7,346,115 28.0 58,623,467 19.4
Non-profit institutions 26 0.4 522,922 2.0 522,922 0.2
Foreigners 27 0.4 232,977 0.8 232,977 0.1
Total 6,595 100.0 26,275,302 100.0 301,493,114 100.0
of which nominee registered 830,580 3.2 830580 0.3
Number of shares issued 26,275,302 100.0 301493114 100.0
BREAKDOWN OF SHAREHOLDINGS BY SIZE CLASS 31.12.2022
Number of
shareholders % of shareholders Number of shares % of shares Number of votes % of votes
1 - 100 2,990 45.3 127,881 0.5 127,881 0.0
101 - 1,000 3,004 45.6 949,226 3.6 949,226 0.3
1,001 - 10,000 487 7.4 1,338,730 5.1 1,566,730 0.5
10,001 - 100,000 82 1.2 2,886,634 11.0 11,153,724 3.7
100,001 - 1,000,000 26 0.4 4,891,714 18.6 37,533,144 12.4
> 1,000,000 6 0.1 16,081,117 61.2 250,162,409 83.0
Total 6,595 100.0 26,275,302 100.0 301,493,114 100.0
of which nominee registered 10 830,580 3.2 830,580 0.3
Number of shares issued 26,275,302 100.0 301,493,114 100.0
GovernanceResponsibility Financial ReviewBusiness Overview
5858
Authorisations given to the Board of Directors
The Annual General Meeting on March 9, 2022 authorized the Board of Directors to decide on the repurchase
of the company’s own shares in one or more lots. The total number of own shares to be repurchased may be a
maximum of 8,700,000 shares. The number of shares represents approximately ten percent of all the shares
of the company after the demerger between the company and Fellow Finance Plc had been executed and the
directed share issue taking place in connection with the demerger had been duly completed.
Evli’s series A shares can be converted into series B shares under Article 4 of the Articles of Association.
During 2022, the company converted A shares into B shares as follows:
- 8,000 A shares were converted into B shares on July 25, 2022. Public trading with the converted shares
began at Nasdaq Helsinki Ltd on July 26, 2022.
Option and share-based incentive programs
Evli’s has five share-based incentive programs in place: 2018, 2019, 2021, 2021-2025 and 2022-2023. The
rewards based on the incentive program are given in Evli shares. Further information on the incentive program
on the web page evli.com/investors and Note 2.8. Employee benefits as well as from the remuneration policy
on pages 137-139.
Share ownership of executives
The share ownership of the Board members of Evli Plc, including the holdings in the controlled corporations,
were 10,176,914 shares in total on December 31, 2022, accounting for 30.2 percent of the total shares and
38.1 percent of voting rights. The members of the Board of Directors of Evli Plc held no stock options.
At year-end, CEO Maunu Lehtimäki owned 704,759 shares which is 2.7 percent of the shares and 3.6 percent
of the voting rights. Moreover, he has been allocated 50,000 Evli shares in the context of the share-based
incentive program established in 2019.
At year-end, other members of Evli Group’s Executive Group owned 700,017 shares in aggregate,
corresponding to 2.7 percent of the total shares and 2.4 percent of the voting rights. In addition, the Executive
Group holds rights to 163,201 shares in total through different share-based incentives described above.
Detailed information on ownership is given on page in the corporate governance report, on page 133.
CHANGES IN THE SHARE CAPITAL, BOARD AUTHORIZATIONS AND OPTION PROGRAMS
A-shares B-shares shares, total
Share capital,
M€
Fund
of invested
nonrestricted
equity, M€
2.4.2022 14,493,148 9,364,289 23,857,437 23.7 26.7
Aquisition of own shares 2,425,865 2,425,865 30.0 0.0
Disposal of own shares -8,000 -8,000 0.0 0.0
Other changes - - - 0.0 0.0
31.12.2022 14,485,148 11,790,154 26,275,302 53.7 26.6
SHARE PRICE DEVELOPMENT AND TRADING VOLUME SERIES B SHARES FROM APRIL 4 TO DECEMBER 31, 2022
4.4.2022
Daily trading volume, Nasdaq Helsinki Share price development Evli series B share
4.5.2022 4.6.2022 4.7.2022 4.8.2022 4.9.2022 4.10.2022 4.11.2022 4.12.2022
0
0,0
5 000
10 000
15 000
20 000
25 000
5,0
Daily turnover, pcs
Price, EUR
30 000
10,0
35 000
15,0
40 000
20,0
45 000
25,0
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5959
Information to shareholders
Basic share information
Evli Plc has two share series, series A shares and series B shares. A series A share confers twenty (20) votes,
and a series B share confers one (1) vote at the General Meeting. The share series have identical entitlements
to dividends and other profit sharing. The company’s series B shares are listed on the official list of Nasdaq
Helsinki with the ticker symbol “EVLI” and ISIN code FI4000513437.
- A shares (December 31, 2022): 14,485,148
- B shares (December 31, 2022): 11,790,154
Investor calendar 2023
- Annual report and financial statements for the financial year 2022: week 7
- Final registration date for voting at the Annual General Meeting: March 7, 2023 at 4.00 pm.
- Annual General Meeting (AGM), Helsinki: March 14, 2023
- Dividend record date: March 16, 2023
- Proposed dividend payment date: March 23, 2023
- Silent period: March 26–April 25, 2023
- The interim report for January–March 2023: April 25, 2023
- Silent period: June 18–July 18, 2023
- The half-year financial report for January–June 2023: July 18, 2023
- Silent period: September 26–October 26, 2023
- The interim report for January–September 2023: October 26, 2023.
Evli’s financial reports as well as stock exchange and press releases are published in Finnish and in English.
Evli’s stock exchange releases and press releases can be subscribed to at evli.com/investors.
Annual General Meeting of shareholders
The Annual General Meeting (AGM) of Evli Plc will be held on March 14, 2023 in Helsinki.
The notice to the AGM and the Board’s proposals to the AGM are published as a stock exchange release and on
evli.com. The notice lists the matters to be discussed at the AGM. A shareholder has the right to request on the
agenda of the annual general meeting an item that falls within the competence of the general meeting by virtue
of the Limited Liability Companies Act, provided that the shareholder demands so in writing from the Board
of Directors, well in advance of the meeting, so that the item can be added in the notice of the annual general
meeting.
A shareholder is entitled to participate in the AGM, if the shareholder’s date of entry in the list of shareholders
maintained by Euroclear Finland Oy is not later than March 2, 2023.
Registration and voting
A shareholder wishing to participate in the AGM must register as a participant by March 7, 2023. Additional
information about the registration at evli.com/agm2023.
Proposed distribution of dividends
The Board of Directors proposes to the Annual General Meeting of Shareholders that a dividend of EUR 0.80
per share be paid, in addition to which a maximum of EUR 0.35 per share will be distributed from the reserve
for invested unrestricted equity. The Board of Directors proposes that the dividend is paid on March 23, 2023.
Evli’s investor communications
The main channel for Evli’s investor communications is the company’s website, evli.com/investors, where the
company publishes all its stock exchange and press releases, its interim reports, financial statements, annual
reports, and General Meeting notices. The website also has presentations related to the reporting of results
for investors and analysts, an investor calendar, and information intended for shareholders and analysts about
the company’s shares, financial performance, ownership, and Corporate Governance.
14.3.
2023
ANNUAL GENERAL MEETING
Contact information
Juho Mikola
CFO
juho.mikola@evli.com
Tel. +358 40 717 8888
Mikaela Herrala
Head of Marketing, Communication
and Investor Relations
mikaela.herrala@evli.com
Tel. +358 50 544 5740
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6060
Managing capital adequacy
Capital adequacy management is a central part of Evli’s day-to-day operations. Evli operates on a sustained
basis and capital adequacy management aims to ensure the continuity of operations also in the long run.
Although all business operations are inherently risky, Evli’s capital adequacy management is founded on the
premise that risks are controlled and the group does not take excessive risks. Risk modelling and contingency
planning aims to ensure that own funds are sufficient to cover any material risks to Evli.
Evli Plc’s Board of Directors has overall responsibility for capital adequacy management. The responsibility
for day-to-day management lies primarily with the group’s Financial Administration. Risk management and
internal audit support the management process by helping to ensure that the risks associated with operations
are taken into account with sufficient accuracy and that operations do not take on such a high level of risk
that it would pose a material risk to Evli’s operations.
The management of capital adequacy is based on a capital plan, which is reviewed at least once a year and is
based on an analysis of the company’s business, outlook and key risks. As part of the overall capital plan, Evli
defines and maintains targets for capital adequacy levels and acceptable risk levels and limits.
As an investment firm, Evli Plc complies with the EU investment firm framework (IFD/IFR). The starting point
for capital adequacy management is formed by the regulatory minimum capital adequacy requirements, which
are described by the Pillar I capital requirement. These are complemented by an additional consideration of
risks outside Pillar I or the Pillar II elements.
Evli applies a minimum target according to which its own funds in relation to risk-weighted balance sheet
items must not fall below 13 percent (the minimum target level for capital adequacy). The Group’s core capital
(CET 1) as at December 31, 2022 was EUR 42.3 million. Correspondingly, the ratio of own funds to risk-
weighted exposure was 20.6 percent, and the ratio of own funds to the minimum capital requirement was
257.2 percent. The most restrictive capital requirement for Evli at the end of the reporting period was based
on fixed overheads. The minimum capital requirement based on fixed overheads was EUR 16.4 million. Evli
Group’s leverage ratio was 39.1 percent as at December 31, 2022. Detailed information on capital adequacy is
provided i tne tabel to the right.
M€
IFR, 31.12.2022
Evli-Group
IFR, 31.12.2022
Evli Plc
Total equity 143.4 105.9
Common Equity Tier 1 capital (CET 1) before deductions 143.4 105.9
Deductions from CET 1, total -101.1 -87.6
Intangible assets -49.6 -20.1
Profit for the financial year -25.1 -2.0
Other deductions -26.4 -65.6
Common Equity Tier 1 capital (CET1) 42.3 18.3
Additional Tier 1 capital (AT1)
Additional Tier 1 capital (T1 = CET1 + AT1) 42.3 18.3
Tier 2 capital (T2)
Total own funds (TC = T1 + T2) 42.3 18.3
Own funds requirement (IFR)
Fixed overhead costs requirement 16.4 9.9
K-factor requirement 3.7 3.6
Minimum requirement 0.75 0.75
Total requirement (most restrictive) 16.4 9.9
CET1 compared to total requirement (%) 257.2 % 183.7 %
T1 compared to total requirement (%) 257.2 % 183.7 %
Total own funds compared to total requirement (%) 257.2 % 183.7 %
Total risk weighted assets 205.4 124.4
CET1 compared to risk weighted assets (%) 20.6 % 14.7 %
T1 compared to risk weighted assets (%) 20.6 % 14.7 %
Total own funds compared to risk weighted assets (%) 20.6 % 14.7 %
Excess own funds compared to total requirement 25.8 8.3
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Calculation of key ratios
IFRS KEY RATIOS
Net revenue
From Income Statement. Includes gross returns, deducted by interest and
commission expenses.
Profit/loss for the financial year From Income Statement.
Earnings per Share (EPS),
undiluted
=
Profit for the year after taxes attributable to the shareholders of Evli Plc
x 100
Average number of shares outstanding during the reporting period
Earnings per Share (EPS),
diluted
=
Profit for the year after taxes attributable to the shareholders of Evli Plc
x 100
Average number of shares outstanding during the period including option
rights issued through share-based incentive plans
Equity ratio, % =
Equity incl. non-controlling interest’s share of equity
x 100
Average balance total
ALTERNATIVE KEY RATIOS
Operating profit/loss =
Net revenue - administrative expenses - depreciation, amortisation and
impairment - other operating expenses +- share of results of associates
Operating profit/loss excluding
non-recurring items related to
mergers and acquisitions
=
Operating profit less non-recurring items related to corporate
restructuring
Return on equity (ROE), %
=
Profit / Loss for financial year
x 100
Equity capital and minority interest (average of the figures for the
beginning and at the end of the year)
Return on assets (ROA), % =
Profit / Loss for financial year
x 100
Average total assets (average of the figures for the beginning and at the
end of the year)
Equity-to-assets ratio, % =
Equity
x 100
Balance sheet total
Expense ratio as earnings to
operating costs
=
Administrative expenses + depreciation and impairment charges+
other operating expenses
Net interest income + net commission income + net income from securities
transactions and foreign exchange dealing + other operating income
Equity per share
=
Equity attributable to the shareholders of the Group
Operating expenses of the company, excluding the reservation for person-
nel bonuses for the review period
Recurring revenue to operating
costs ratio
=
Revenue from time-based contracts
All operative expenses excluding reservation for personnel bonuses
for the review period
Dividend per share = Dividend paid or proposed for the financial year
Market value = Number of shares at the end of the period x closing price
Earnings per share (EPS) excl.
one-off effects of acquisitions.
diluted
=
Operating profit less one-off items for corporate restructuring
Average number of shares outstanding during the reporting including
option rights issued through share-based incentive plans
Management, analysis, custody and client interest margin income from wealth management,
fund savings and incentive plans
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Financial statements1.1.-31.12.2022 Contents
Consolidated comprehensive income statement ................................................63
Consolidated balance sheet ..............................................................................................64
Consolidated statement of cash flow .........................................................................65
Consolidated statement of changes in equity ...................................................... 66
Notes to the consolidated financial statements .............................................67
1. Accounting policies .....................................................................................................67
1.1. Basic information on the company .......................................................................67
1.2. Basis for preparation of the financial statements ...................................67
1.3. Translation of items denominated in foreign currency .........................68
1.4. Financial assets and liabilities ..................................................................................68
1.5. Matters requiring management judgment ................................................... 69
1.6. Provisions .......................................................................................................................... 69
1.7. Adoption of new and amended standards and interpretations
applicable in future financial years .......................................................................... 69
1.8. Carve out basis of preparation ............................................................................. 69
2. Notes to the consolidated income statement .............................................73
2.1. Commission income .......................................................................................................73
2.2. Net income from trading and fx .............................................................................74
2.3. Income from equity investments .........................................................................74
2.4. Interest income...............................................................................................................75
2.5. Other operating income ............................................................................................. 75
2.6. Commission expenses .................................................................................................75
2.7. Interest expenses ..........................................................................................................75
2.8. Personnel expenses .....................................................................................................76
2.8.1. Personnel count .................................................................................................76
2.8.2. Share based incentives ................................................................................. 77
2.9. Other administrative expenses .............................................................................78
2.10. Depreciation, amortization and impairment losses ................................ 78
2.11. Other operating expenses ...................................................................................... 78
2.12. Expected credit losses on loans and other receivables ......................78
2.13. Share of profit or loss of associate companies ........................................79
2.14. Income taxes .................................................................................................................. 79
2.14.1. Analysis of income taxes ............................................................................. 79
2.15. Earnings per share (EPS) ........................................................................................79
3. Notes to the consolidated balance sheet ......................................................80
3.1. Cash and cash equivalents ....................................................................................... 80
3.2. Claims on credit institutions ................................................................................... 80
3.3. Claims on the public and public sector entities by sector ................... 80
3.4. Debt securities ................................................................................................................ 80
3.5. Shares and participations ....................................................................................... 80
3.6. Derivative contracts ..................................................................................................... 81
3.7. Shares and participations in associates and joint ventures ................82
3.8. Intangible assets and goodwill ..............................................................................82
3.9. Property, plant and equipment ..............................................................................84
3.10. Right-of-use-assets ................................................................................................85
3.11. Other assets ....................................................................................................................85
3.12. Accrued income and prepayments ...................................................................85
3.13. Income tax receivables ............................................................................................85
3.14. Deferred taxes ..............................................................................................................86
3.15. Liabilities to credit institutions and central banks ..................................86
3.16. Debt securities issued to the public .................................................................86
3.16.1. Changes in debt securities issued to the public ...........................86
3.17. Derivative contracts and other liabilities held for trading ..................86
3.18. Other liabilities ...............................................................................................................86
3.19. Accrued expenses and deferred income ......................................................86
3.20. income tax liability .......................................................................................................86
3.21. Deferred tax liabilities ...............................................................................................87
3.22. Equity capital..................................................................................................................87
3.23. Own shares held by the company ....................................................................87
4. Off-balance-sheet commitments ...................................................................88
4.1. Breakdown of off-balance sheet commitments .........................................88
5. Segment reporting ....................................................................................................89
5.1. Segment income statement .....................................................................................89
5.2. Geographical income statement and balance sheet ............................... 90
6. Notes on risk position ...............................................................................................91
Risk management and internal control ......................................................................91
6.1. Market risk ..........................................................................................................................92
6.1.1. Minimum capital requirement from market risk .............................93
6.1.2. Assets and liabilities in domestic and foreign currencies ........93
6.2. Liquidity risk ......................................................................................................................94
6.2.1. Maturities of financial assets and liabilities ....................................... 94
6.3. Credit risk ...........................................................................................................................95
6.3.1. Collaterals set and received .......................................................................95
6.3.2. Use of collaterals ...............................................................................................95
6.4. Expected credit losses ............................................................................................... 96
6.4.1. Distribution of assets and loans .............................................................. 96
6.4.2. Expected credit losses based on IFRS 9 ............................................97
6.5. Operational risk ...............................................................................................................98
6.6. Business continuity .......................................................................................................98
6.7. Management of capital adequacy .........................................................................98
7. Other notes .....................................................................................................................99
7.1. Classification of Assets and Liabilities ............................................................... 99
7.2. Financial instruments measured at fair value
through other comprehensive income ....................................................................101
7.3. Analysis of financial instruments categorized in level 3 ...................... 102
7.4. Fair values and book values of financial assets
and financial liabilities ........................................................................................................ 102
7.5. Asset under Management .......................................................................................102
8. Consolidation and related party ......................................................................103
Consolidation principles ...................................................................................................103
8.1. Corporate structure ................................................................................................. 104
8.2. Financial success in companies with minority shareholders .......... 105
8.3. Changes in corporate structure ....................................................................... 106
8.4. Holdings in consolidated associated companies ......................................106
8.5 Related party disclosures .......................................................................................107
8.6. Transactions with related parties ....................................................................107
8.7 Fees paid to auditors .................................................................................................. 108
9. Parent company’s financial statements ...................................................... 109
The figures in the financial statement are presented in millions
of euros, unless indicated otherwise.
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Consolidated comprehensive income statement , IFRS
| Carve-out | |||
Note | 2022 | 2021 | |
Fee and commission income | 2.1 | ||
Net income from securities transactions | 2.2 | ||
Income from equity investments | 2.3 | ||
Interest income | 2.4 | ||
Other operating income | 2.5 | ||
| INCOME TOTAL | |||
Fee and commission expenses | 2.6 | - | - |
Interest expenses | 2.7 | - | - |
NET REVENUE | |||
| Administrative expenses | |||
Personnel expenses | 2.8 | - | - |
Other administrative expenses | 2.9 | - | - |
Depreciation and amortization on tangible and intangible assets | 2.10 | - | - |
Other operating expenses | 2.11 | - | - |
Expected credit losses on loans and other receivables | |||
Impairment loss on other financial assets | 2.12 | - | |
Share of profit or loss of associates | 2.13 | ||
OPERATING PROFIT/LOSS | |||
Income taxes | 2.14 | - | - |
PROFIT / LOSS FOR THE FINANCIAL YEAR | |||
Attributable to Non-controlling interest | |||
Shareholders of parent company | |||
| OTHER COMPREHENSIVE INCOME / LOSS | |||
| Items that are or may be reclassified subsequently to profit or loss | |||
Foreign currency translation differences - foreign operations | - | ||
| Items that may not be reclassified subsequently to profit or loss | |||
Fair value change of financial instruments recognized in OCI | - | ||
Deferred taxes | |||
Other comprehensive income / loss | - |
Other comprehensive income after taxes / loss for the year -3.3 0.1
| Carve-out | |||
Note | 2022 | 2021 | |
OTHER COMPREHENSIVE INCOME / LOSS FOR THE YEAR | |||
Attributable to Non-controlling interest | |||
Equity holders of parent company | |||
Earnings / Share (EPS) | 2.15 | ||
Earnings / Share (EPS), fully diluted | 2.15 |
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ASSETS | Note | 2022 | Carve-out 2021 |
Cash and equivalents | 3.1 | ||
Claims on credit institutions | 3.2 | ||
Claims on the public and public sector entities | 3.3 | ||
Debt securities | 3.4 | ||
Shares and participations | 3.5 | ||
Derivative contracts | 3.6 | ||
Shares and participations in associates | 3.7 | ||
Intangible assets and goodwill | 3.8 | ||
Property, plant and equipment | 3.9 | ||
Right-of-use assets | 3.10 | ||
Other assets | 3.11 | ||
Accrued income and prepayments | 3.12 | ||
Income tax receivables | 3.13 | ||
Deferred tax assets | 3.14 | ||
TOTAL ASSETS |
LIABILITIES AND EQUITY | Note | 2022 | Carve-out 2021 |
| LIABILITIES | |||
Liabilities to credit institutions and central banks | 3.15 | ||
Liabilities to the public and public sector entities | 3.15 | ||
Debt securities issued to the public | 3.16 | ||
Derivative contracts and other liabilities held for trading | 3.17 | ||
Other liabilities | 3.18 | ||
Accrued expenses and deferred income | 3.19 | ||
Income tax liability | 3.20 | ||
Deferred tax liabilities | 3.21 | ||
TOTAL LIABILITIES | |||
| EQUITY | |||
Share capital | |||
Fund of invested non-restricted equity | |||
Fair value reserve | - | ||
Translation difference | - | ||
Retained earnings | |||
Non-controlling interest | |||
TOTAL EQUITY | 3.22 | ||
TOTAL LIABILITIES AND EQUITY |
Consolidated balance sheet, IFRS
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Cash flow statement, IFRS
| Carve-out | ||
| 2022 | 2021 | |
| Operating activities | ||
Operating profit | ||
Adjustment for items not included in cash flow | ||
Income taxes paid | - | - |
| Cash flow from operating activities before changes | ||
| in operating assets and liabilities | ||
Changes in operating asset | ||
Changes in operating liablities | - | - |
Cash flow from operating activities | ||
| Investing activities | ||
Merger cash consideration | - | |
Dividends from associated companies | ||
Change in intangible asset | - | - |
Change in property, plant and equipment | - | |
Cash flow from investing activities | - | |
| Financing activities | ||
Changes in Loans from credit institutions | - | |
Changes in Loans from parent entity Evli Bank* | - | |
Equity Transactions with the parent entity Evli Bank* | - | |
Dividends paid to company´s shareholders | - | - |
Dividends paid to non-controlling interests in subsidiaries | - | - |
Payments of loan/IFRS 16 Right of use assets | - | - |
Cash flow from financing activities | - | - |
Cash and cash equivalents at the beginning of period | ||
Cash and cash equivalents through merger | ||
Cash and cash equivalents at the end of year | ||
Change |
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Consolidated statement of changes in equity, IFRS
| Equity attributable | ||||||||
| Translation | Fund of invested | to the owners of | Non-controlling | |||||
Share Capital | Fair value reserve | difference | unrestricted equity | Retained earnings | parent entity | interest | Total equity | |
Equity 1.1.2021 | ||||||||
Translation difference | - | - | - | |||||
Profit/loss for the period | ||||||||
Dividends | - | - | - | - | ||||
Other changes | - | |||||||
Equity transactions with Evli Bank Plc | - | - | - | |||||
Equity 31.12.2021 | ||||||||
Translation difference | - | - | - | |||||
Profit/loss for the period | ||||||||
Dividends | - | - | - | - | ||||
Fair value changes of Fellow Bank Plc shares | ||||||||
Other changes | - | - | - | |||||
Equity 1.4.2022 | - | |||||||
Translation difference | - | - | - | - | ||||
Profit/loss for the period | ||||||||
Dividends | - | - | ||||||
Fair value adjustment of Fellow Bank Plc shares | - | - | - | |||||
Other changes | - | |||||||
EAB Group Plc merger 1.10.2022 | ||||||||
Effect of demerger 2.4.2022 | - | |||||||
Equity 31.12.2022 | - | - | ||||||
A more detailed breakdown of the Group’s equity is given in Note 3.22. Equity capital.
Other changes from 2022 include the recognition of equity in accordance with IFRS 2. The effect of the demerger in equity EUR 9.6 million is the difference between the equity calculated in accordance with the carve-out financial statements accounting policies and the equity allocated to Evli Plc in accordance with the dis-
tribution plan
Other changes from 2021 include the accrual of expenses arising from granted retention programs. which is presented as part of the change in the retained earnings column and a one-off impact from the acquisition of Alexander Incentives Oy.
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6. Notes on the risk position
Risk management and internal control
Evli operates in a constantly changing market environment, which subjects the company to risks caused by
changes in the business environment and the company’s own operations.
Risk management refers to actions aimed at systematically surveying, identifying, analyzing and managing
risks. The objective of risk management is to:
- Ensure the sufficiency of Evli’s own assets in relation to risk positions
- Maintain the financial result and the variation in valuations within the set objectives and limits
- Price risks correctly to reach sustainable profitability.
Organization of the control operations
The company’s Board of Directors is primarily responsible for the Company Group’s risk management. The
Board of Directors confirms the principles and responsibilities of risk management, the Group’s risk limits and
other general guidelines according to which the risk management and internal control is organized. The Board
has also set up a Management Risk Committee (Credalco) that briefs it on risk-taking matters.
The Group’s risk management is founded on the “three lines of defense” model.
1. The first line of defense consists of the business units. The managers of the business units are responsible
for ensuring that risk management is at a sufficient level in each respective unit.
2. The second line of defense consists of the Risk Control and Compliance functions. The Risk Control
function oversees daily operations and compliance with the risk limits granted to the business units, as well as
compliance with risk-taking policies and guidelines. The Risk Control function reports its findings to the Risk
Committee, the Executive Group and the Board of Directors.
The Compliance function is responsible for ensuring compliance with the rules in all of the Group’s operations
by supporting operating management and the business units in applying the provisions of the law, the official
regulations and internal guidelines, and in identifying, managing and reporting on any risks of insufficient
compliance with the rules.
3. The third line of defense is Internal Audit. Internal Audit is a body that is independent of business
operations, supports the Board of Directors and the senior management, and is organized administratively
under the CEO. Internal Audit assesses the functioning of the Company Group’s internal control system, the
appropriateness and efficiency of the functions and compliance with instructions. It does this by means of
inspections that are based on the internal audit action plan adopted annually by the Audit Committee of the
Board of the company.
Main risk areas
Evli divides risks into three main categories:
1. Strategic risks: Changes in the market environment, new products
2. Financial risks: market, liquidity and credit risks
3. Operational risks: Practices, processes and information systems
Strategic risks
Strategic risk is closely linked to a change in either the market environment, customer behavior or the
company’s own operations. In terms of own operations, this could be new products or partnerships. Changes
in the business environment and customer behavior have a significant impact on Evli’s performance, which is
why strategic risks are actively monitored and managed.
The performance of assets under management is a key determinant of the returns of Wealth Management
and it depends on factors such as the performance of capital markets, the general demand for investment
products and the success of investment operations. As a result, the Group’s fee income is partly dependent
on general stock and interest rate market developments. Market developments and investment trends also
influence the type of investment products that customers are interested in.
Evli cannot influence general market developments or the state of the economy through its activities, but
through its own actions it can reduce its sensitivity to changes in the market environment. Evli’s management
aims to contribute to improving the manageability and profitability of its operations by ensuring efficient
organization of its businesses and diversification of its income base through the provision of a wide range
of investment products and services. In addition, the Group’s management seeks to oversee key business
development projects and, where appropriate, make financially sound acquisitions to scale up operations.
Evli seeks to identify and manage strategic risks by analyzing market developments and the competitive
environment. The strategy and related risks are regularly on the Board’s agenda.
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7. Other notes
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8.1. CORPORATE STRUCTURE
Evli Plc
Evli Corporate
Finance AB
(55,1%)
Evli Research
Partners Oy
(70%)
Evli Funds’
GP companies
Evli Alexander
Incentives Oy
(65%)
Terra Nova Capital
Advisors Ltd
(55%)
Evli Investment
Solutions Oy
(85%)
Evli Life Ltd
(100%)
Evli Fund
Management
Company Ltd (100%)
Evli AB
(100%)
EAI Palkitsemis -
palvelut Oy
(100%)
EAB Service Ltd
(100%)
Elite Sijoitus Oy
(100%)
EAB Private
Equity Oy
(65%)
Thermo Power
Finland Oy
(100%)
Elite
Rahoitus Oy
(100%)
EAB Funds’ GP
companies
Elite Assurance
Services Ltd
(100%)
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8.2. FINANCIAL SUCCESS IN COMPANIES WITH NONCONTROLLING OWNERS ANIES WITH NON-CONTROLLING OWNERS
COMPANY, 2022 Assets Liabilities
Profit/Loss
for financial year
Dividends
paid to
non-controlling
interest
Evli Corporate Finance AB 3.7 1.8 1.3 1.7
Terra Nova Capital Advisors Ltd 0.5 0.1 0.6 0.2
Evli Research Partners Oy 0.3 0.1 0.1 0.0
Evli Investment Solutions Oy 0.8 0.0 0.7 0.2
EAI Residential Partners Oy 0.6 0.1 0.4 0.1
Evli Private Equity Partners Oy 1.2 0.4 1.9 0.4
Evli HC I GP Oy 0.2 0.0 0.0 0.0
EGP General Partner Oy 0.6 0.0 0.5 0.1
Evli Infrastructure Partners Oy 0.2 0.1 1.3 0.2
Evli Alexander Incentives Oy 8.3 4.1 3.6 1.2
Evli Private Debt I Gp Oy 0.4 0.2 0.2 0.0
Evli Residential II GP Oy 0.4 0.1 0.2 0.0
Evli Private Equity III GP Oy 1.6 0.5 1.0 0.0
EGP General Partner II Oy 1.6 0.3 1.0 0.0
Evli Impact Forest Oy 0.7 0.6 0.0 0.0
COMPANY, Carve-out 2021 Assets Liabilities
Profit/Loss
for financial year
Dividends
paid to
non-controlling
interest
Evli Corporate Finance AB 6.7 2.1 4.8
Terra Nova Capital Advisors Ltd 0.3 0.1 4.0 1.7
Evli Research Partners Oy 0.4 0.2 0.0 0.0
Evli Investment Solutions Oy 1.2 0.1 1.1 0.2
EAI Residential Partners Oy 0.7 0.1 0.5 0.1
Evli Private Equity Partners Oy 0.7 0.0 1.7 0.4
Evli HC I GP Oy 0.5 0.4 0.0 0.0
EGP General Partner Oy 0.6 0.1 0.5 0.2
Evli Infrastructure Partners Oy 0.0 0.0 0.4 0.0
Evli Alexander Incentives Oy 7.3 3.1 2.8 0.4
Evli Private Debt I Gp Oy 0.0 0.0 -0.1 0.0
Evli Residential II GP Oy 0.1 0.0 0.0 0.0
Evli Private Equity III GP Oy 0.0 0.0 0.0 0.0
EGP General Partner II Oy 0.4 0.1 0.2 0.0
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Parent company’s income statement
Note 2022
Fee and commission income 9.1 25.7
Net income from securities transactions 9.2 4.3
Income from equity investments 9.3
Subsidiaries 0.0
Associated companies 0.2
Other 0.0
Interest income 9.4 1.3
Other operating income 9.5 11.2
INCOME TOTAL 42.7
Fee and commission expenses 9.6 -2.6
Interest expenses 9.7 -1.2
NET REVENUE 38.9
Administrative expenses
Personnel expenses 9.8.1 -19.6
Other administrative expenses 9.9 -10.6
Depreciation and amortization on tangible and intangible assets 9.10 -4.6
Other operating expenses 9.11 -1.7
Expected credit losses on loans and other receivables 9.12 0.0
Impairment losses on other financial assets 0.0
OPERATING PROFIT/LOSS 2.3
Income taxes 9.13 -0.4
PROFIT / LOSS FOR THE FINANCIAL YEAR 2.0
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Parent company’s balance sheet
ASSETS Note 2022
Cash and equivalents 9.14 0.0
Claims on credit institutions 9.15
Repayable on demand
45.8
Other
22.9
Claims on the public and public sector entities 9.16 55.0
Debt securities 9.17 2.0
Shares and participations 9.18 39.1
Shares in associated companies
9.20 6.9
Shares in subsidiaries
22.2
Derivative contracts 9.19 0.4
Intangible assets and goodwill 9.21 20.1
Property, plant and equipment 9.22 0.8
Other assets 9.23 77.4
Accrued income and prepayments 9.24 1.3
Deferred tax assets 9.25 0.7
TOTAL ASSETS 294.7
LIABILITIES AND EQUITY Note 2022
LIABILITIES
Liabilities to credit institutions 9.26 0.0
Liabilities to the public and public sector entities 0.0
Debt securities issued to the public 9.27 106.3
Derivative contracts and other liabilities held for trading 9.28 0.4
Other liabilities 9.29 66.0
Accrued expenses and deferred income 9.30 16.0
Deferred tax liabilities 0.0
TOTAL LIABILITIES 188.8
EQUITY
Share capital 53.7
Fair value reserve -2.7
Fund of invested non-restricted equity 25.1
Retained earnings 27.7
Profit/loss for financial year 2.0
TOTAL EQUITY 9.31 105.9
TOTAL LIABILITIES AND EQUITY 294.7
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Parent company’s statement of cash flow
2022
Operating activities
Operating profit 2.3
Adjustment for items not included in cash flow 5.6
Income taxes paid -2.3
Cash flow from operating activities before changes
in operating assets and liabilities
5.7
Changes in operating asset -10.6
Changes in operating liabiities 4.7
Cash flow from operating activities -0.2
Investing activities
Cash consideration in EAB Group Plc merger -3.0
Dividends from associated companies 0.2
Change in intangible asset -0.4
Change in property, plant and equipment -0.1
Cash flow from investing activities -3.3
Financing activities
Change in loans from credit institutions -4.8
Cash flow from financing activities -4.8
Cash and cash equivalents at the beginning of period 78.1
Cash received through merger of EAB Group Plc 1.1
Cash and cash equivalents at the end of year 68.7
Change -8.3
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Parent Company’s accounting policies
Basic information on the company
Evli Plc (“Evli” or “company”) is domiciled in Helsinki and its registered address is Aleksanterinkatu 19, 00100
Helsinki, Finland.
Evli’s financial statements have been prepared and presented in accordance with the provisions of the
Act on Credit Institutions, the Ministry of Finance decision regarding credit institutions’ and investment
services providers’ financial statements and the Financial Supervisory Authority’s regulations. In addition, the
provisions of the Accounting Act and the Limited Liability Companies Act concerning financial statements are
complied with, with the exceptions mentioned in Article 30(2) of the Act on Credit Institutions.
Evli’s accounting policies are consistent with those of the Evli Group, except as described below.
Employee benefits
The Evli Group finances all its retirement plans as contributions to pension insurance companies.
Income taxes
Deferred tax is generally calculated on all temporary differences between the carrying amount of an asset or
liability in the balance sheet and its tax base. The largest temporary differences arise from the depreciation of
fixed assets.
Leases
Leases of property, plant and equipment in which substantially all the company’s risks and rewards of
ownership are classified as finance leases. In Evli’s financial statements, leases payable under these contracts
are treated as rental expenses. Moreover, an asset acquired under a finance lease is not included in the
balance sheet.
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Parent company’s notes to income statement
9.1. FEE AND COMMISSION INCOME
2022
Credit related fees and commissions 0.0
Income from payment transactions 0.0
Insurance brokerage 0.0
Advisory services 1.1
Securities brokerage 5.1
Securities issue 0.0
Mutual funds 14.3
Asset management 4.1
Custody services 0.4
Other operations 0.8
Commission income, total 25.7
Profits and losses on sales and changes in the fair value of securities transactions are recorded in the profit
and loss statement. In addition, exchange rate profits and losses relating to the underlying business are
recorded under net income from foreign exchange operations.
9.2. NET INCOME FROM SECURITIES TRANSACTIONS
2022
Gains and
losses on sales
Changes in
fair value
Other
items Total
Debt securities 1.0 -0.0 1.0
Shares and derivative contracts 0.2 1.5 1.8
Net income from securities transactions, total 1.3 1.5 2.8
Net income from foreign exchange operations 1.5 0.0 1.5
Net income from securities transactions
and foreign exchange operations, total
2.8 1.5 4.3
9.3. INCOME FROM EQUITY INVESTMENTS
2022
Dividends from financial assets valued at fair value 0.0
Dividends from available-for-sales securities 0.0
Dividends from associated companies 0.2
Income from equity investments, total 0.2
9.4. INTEREST INCOME
2022
Claims on credit institutions 0.7
Claims on the public and public sector entities 0.6
Other interest income 0.0
Interest income, total 1.3
9.5. OTHER OPERATING INCOME
2022
Rental income 0.0
Gain on sale of owner-occupied investment properties 0.0
Other income 11.2
Other operating income, total 11.2
9.6. FEE AND COMMISSION EXPENSES
2022
Trading fees paid to stock exchanges 0.5
Other commission expenses 2.1
Commission expenses, total 2.6
9.7. INTEREST EXPENSES
2022
Liabilities to the public, public sector entities and credit institutions -0.3
Debt securities issued to the public -0.8
Other interest expenses -0.1
Interest expenses, total -1.2
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9.8.1. PERSONNEL EXPENSES
2022
Wages and salaries -14.1
Social security costs
Pension expenses -2.6
Other social security costs -0.4
Equity-settled share options -2.5
Employee benefits, total -19.6
9.8.2. PERSONNEL COUNT
2022
Number of personnel during the period, average 158
Number of personnel at the end of the period 161
Number of employees per segment
Wealth Management and Investor Clients 112
Advisory and Corporate Clients 6
Group Operations 43
Total 161
9.9. OTHER ADMINISTRATIVE EXPENSES
2022
Office expenses -1.4
IT and infosystems -4.9
Business expenses -0.5
Travel expenses -0.2
Car costs 0.0
Other HR related expenses -0.6
Marketing expenses -0.4
Banking and custodian expenses -0.5
External services -2.1
Other administrative expenses, total -10.6
9.10. DEPRECIATION AND AMORTIZATION ON TANGIBLE AND INTANGIBLE ASSETS
2022
Applications and software -3.5
Other intangible assets -0.2
Leasehold improvements 0.0
Assets acquired under finance leases 0.0
Equipment and furniture -0.1
Impairment of goodwill -0.8
Depreciation, amortization and impaiment losses, total -4.6
9.11. OTHER OPERATING EXPENSES
2022
Supervision expenses -0.1
Rental expenses -1.4
Other expenses -0.2
Other operating expenses, total -1.7
9.12. EXPECTED CREDIT LOSSES ON LOANS AND OTHER RECEIVABLES
2022
Claims on the public and public sector entities
Expected credit losses on group level 0.0
Expected credit losses individual 0.0
Guarantees and other off-balance sheet commitments 0.0
Sales receivables 0.0
Realised loan losses 0.0
Impairment losses on other financial assets 0.0
Impairment losses, total 0.0
9.13. INCOME TAXES
2022
Current tax expense 0.0
Taxes from previous years 0.0
Deferred taxes -0.4
Other taxes 0.0
Income taxes, total -0.4
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Parent company’s notes to balance sheet
9.14. CASH AND EQUIVALENTS
2022
Petty cash 0.0
Balances with central banks 0.0
Other 0.0
Cash and cash equivalents total 0.0
9.15. CLAIMS ON CREDIT INSTITUTIONS
2022
Repayable on demand
Domestic credit institutions 45.8
Foreign credit institutions 0.0
Repayable on demand, total 45.8
Other than repayable on demand
Domestic credit institutions 2.1
Foreign credit institutions 20.9
Other than repayable on demand, total 22.9
Claims on credit institutions, total 68.7
9.16. CLAIMS ON THE PUBLIC AND PUBLIC SECTOR ENTITIES
2022
Enterprises and housing associations 12.9
Financial and insurance corporations 0.3
Households 17.4
Foreign countries 3.6
Group companies 20.8
Claims on the public and public sector entities by sector, total 55.0
9.17. DEBT SECURITIES
2022
Publicly quoted 0.0
Others
Bonds issued by banks 2.0
Other debt securities 0.0
Debt securities, total 2.0
Debt securities are valued at fair value and relate to Finnish investments.
9.18. SHARES AND PARTICIPATIONS
2022
Publicly quoted
Held for trading 0.0
Other 29.4
Shares and participations, total 29.4
Others
Held for trading 0.0
Other 9.7
Shares and participations, total 9.7
Net risk position is described in section Market Risk, Notes on Risk Position.
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9.19. DERIVATIVE CONTRACTS
Overall effect of risks associated with derivative contracts
Nominal value of underlying, gross
Remaining maturity
2022 Less than 1 year 1-5 years 5-15 years Fair value (+/-) ASSETS LIABILITIES
Held for trading
Interest rate swaps 3.3 18.2 0.2 0.0 0.4 0.4
Futures 0.0 0.0 0.0 0.0 0.0 0.0
Options bought 0.0 0.0 0.0 0.0 0.0 0.0
Options sold 0.0 0.0 0.0 0.0 0.0 0.0
Currency-linked derivatives 0.0 0.0 0.0 0.0 0.0 0.0
Held for trading, total 3.3 18.2 0.2 0.0 0.4 0.4
9.20. SHARES AND PARTICIPATIONS IN ASSOCIATES AND JOINT VENTURES
2022
At the beginning of the period 5.4
Additions 1.5
Disposals 0.0
At the end of the period 6.9
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9.21. INTANGIBLE ASSETS AND GOODWILL
2022
Goodwill
Cost at 2.4 1.2
Increases/Decreases 18.0
Cost at 31.12. 19.2
Accumulated depreciation at 2.4 -0.8
Impairment losses for the period 0.0
Accumulated depreciation at 31.12. -1.6
Book value at 31.12. 17.5
Software or projects in progress
Cost at 2.4 0.0
Increases/Decreases 0.0
Cost at 31.12. 0.0
Book value at 31.12. 0.0
Applications and software
Cost at 2.4 21.5
Increases/Decreases 0.7
Cost at 31.12. 22.2
Accumulated amortisation and impairment losses at 2.4 -17.7
Amortisation for the period -2.0
Accumulated amortisation and impairment losses at 31.12. -19.7
Book value at 31.12. 2.5
Other intangible assets
Cost at 2.4 2.3
Increases/Decreases 0.0
Cost at 31.12. 2.3
Accumulated amortisation and impairment losses at 2.4 -2.1
Amortisation for the period -0.2
Accumulated amortisation and impairment losses at 31.12. -2.3
Book value at 31.12. 0.0
The most significant "Other intangible assets" are client relationships.
Book value of intangible assets at 31.12. 20.1
Intangible assets, total at 31.12. 20.1
9.22. PROPERTY, PLANT AND EQUIPMENT
2022
Equipment and furniture
Cost at 2.4 1.7
Exchange difference 0.0
Increases/Decreases 0.1
Cost at 31.12. 1.7
Accumulated amortisation and impairment losses at 2.4 -1.3
Translation difference from depreciation for the period 0.0
Amortisation for the period -0.2
Accumulated amortisation and impairment losses at 31.12. -1.5
Book value at 31.12. 0.2
Property, plant, and equipment, total 31.12.
Leasehold improvements
Cost at 12.4 1.4
Cost at 31.12. 0.0
Accumulated depreciation at 2.4 1.4
Depreciation for the period -1.4
Accumulated depreciation at 31.12. 0.0
Book value at 31.12. -1.4
Other tangible assets
Cost at 2.4 0.6
Cost at 31.12. 0.6
Book value at 31.12. 0.6
Property, plant and equipment, total at 31.12. 0.8
Book value of tangible assets at 31.12. 0.8
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9.23. OTHER ASSETS
2022
Securities sale receivables 1.3
Commission receivables 3.8
Securities broking receivables 63.2
Other receivables 9.2
Other assets total 77.4
Other receivables include, inter alia, intra-group receivables.
9.24. ACCRUED INCOME AND PREPAYMENTS
2022
Interest 0.2
Taxes 0.0
Staff-related 0.0
Other items 1.1
Accrued income and prepayments total 1.3
9.25. DEFERRED TAX ASSETS
2022
Tax assets
Due to timing differences 0.7
Other temporary differences
From tax losses carried forward 0.0
Deferred taxes total 0.7
Deferred tax assets result from timing differences in fixed asset depreciation.
9.26. LIABILITIES TO CREDIT INSTITUTIONS AND CENTRAL BANKS
2022
Credit institutions
Repayable on demand 0.0
Other than repayable on demand 0.0
Liabilities to credit institutions and central banks, total 0.0
9.27. DEBT SECURITIES ISSUED TO THE PUBLIC
2022
Certificate of deposits 0,0
Bonds 106.3
Debt securities issued to the public, total 106.3
CHANGES IN BONDS ISSUED TO THE PUBLIC 2022
Issues 30.9
Repurchases 16.0
9.28. DERIVATIVE CONTRACTS AND OTHER LIABILITIES HELD FOR TRADING
2022
Derivative contracts 0.4
Due to short selling of shares 0.0
Derivative contracts and other liabilities held for trading, total 0.4
9.29. OTHER LIABILITIES
2022
Securities broking liabilities 62.5
Securities purchase liabilities 0.0
Finance lease payables 0.0
Right-of-use liability 0.0
Income tax payable 0.0
Personnel related 0.6
Other short-term liabilities 2.6
Prepayments of cash customers 0.0
VAT payable 0.3
Other liabilities, total 66.0
Other short-term liabilities are trading-related short-term liabilities
9.30. ACCRUED EXPENSES AND DEFERRED INCOME
2022
Interest 0.0
Tax payables 0.4
Personnel related 12.5
Other accrued expenses 3.2
Accrued expenses and deferred income, total 16.0
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9.31. SHARE CAPITAL
kpl
EUR
2022 A-share B-share Shares total Share capital Fair value reserve
Fund of invested
unrestricted equity Retained earnings Total equity
At the beginning of period 2.4. 14,493,148 9,364,289 23,857,437 23.7
0.0 25.1 27.7
76.6
Additions 2,425,865 2,425,865 30.0
0.0 0.0 2.0
2.0
Decreases -8,000 -8,000 0.0
-2.7 0.0 0.0
0.0
At the end of period 31.12. 14,485,148 11,790,154 26,275,302 53.7
-2.7 25.1 29.7
105.9
9.32. MATURITIES OF ASSETS AND LIABILITIES
2022 Total
Maturity:
less than 3 months
Maturity:
3-12 months
Maturity:
1-5 years
Maturity:
over 5 years
Assets
Financial assets at amortized cost
Cash and cash equivalents 0.0 0.0 0.0 0.0 0.0
Claims on credit institutions 68.7 68.7 0.0 0.0 0.0
Claims on the public and public sector entities 54.8 4.7 13.0 37.1 0.0
Financial assets at fair value through profit or loss
Debt securities 2.0 0.0 0.0 2.0 0.0
Shares and participations 39.1 29.2 0.9 2.6 6.3
Derivative contracts 0.4 0.1 0.0 0.3 0.0
Accrued interest 0.2 0.0 0.2 0.0 0.0
Other assets 77.4 77.4 0.0 0.0 0.0
Liabilities
Financial liabilities at amortized cost
Liabilities to credit institutions 0.0 0.0 0.0 0.0 0.0
Liabilities to the public and public sector entities 0.0 0.0 0.0 0.0 0.0
Debt securities issued to the public 106.3 6.6 11.8 81.8 6.2
Financial liabilities at fair value through profit or loss 0.4 0.1 0.0 0.3 0.0
Accrued interest, debt 0.0 0.0 0.0 0.0 0.0
Other liabilities 66.0 66.0 0.0 0.0 0.0
Off-balance sheet commitments 6.3 3.2 1.2 1.9 0.0
Rental commitmens
12.9 0.4 1.3 10.4 0.8
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9.33. ASSETS AND LIABILITIES IN DOMESTIC AND FOREIGN CURRENCIES
2022
Domestic
currency
Foreign
currency Tota l
Assets
Financial assets at amortized cost
Cash and cash equivalents 0.0 0.0 0.0
Claims on credit institutions 66.4 2.4 68.7
Claims on the public and public sector entities 54.4 0.6 55.0
Financial assets at fair value through profit or loss
Debt securities 2.0 0.0 2.0
Shares and participations 59.9 1.5 61.4
Derivative contracts 0.4 0.0 0.4
Other asset items 105.4 2.0 107.4
Total 288.4 6.5 294.9
Liabilities
Financial liabilities at amortized cost
Liabilities to credit institutions 0.0 0.0 0.0
Liabilities to the public and public sector entities 0.0 0.0 0.0
Debt securities issued to the public 106.3 0.0 106.3
Financial liabilities at fair value through profit or loss
Derivative contracts 0.4 0.0 0.4
Other liabilities items 76.0 6.0 82.0
Total 182.8 6.0 188.8
9.34. SECURITIES LENDING
2022
Market value of securities lending at 31.12., lent in 0.0
Market value of securities lending at 31.12., lent out 0.0
9.35. FAIR VALUES AND BOOK VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES
2022
Book
value
Fair
Value
Financial assets
Liquid assets 0.0 0.0
Claims on credit institutions 68.7 68.7
Claims on the public and public sector entities 55.0 55.0
Debt securities 2.0 2.0
Shares and participations 39.1 39.1
Derivative contracts 0.4 0.4
Financial liabilities
Liabilities to credit institutions 0.0 0.0
Liabilities to the public and public sector entities 0.0 0.0
Debt securities issued to the public 106.3 106.5
Derivative contracts and other liabilities held for trading 0.4 0.4
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9.36. RISK MANAGEMENT GIVEN AND RECEIVED COLLATERALS
2022
Fair value of
encumbered
assets
Fair value of
unencumbered
assets
of which
usable as
collateral
ASSETS
Liquid assets and Central Bank deposits 0.0 0.0 0.0
Debt securities eligible for refinancing with central banks 0.0 0.0 0.0
Claims on credit institutions 22.9 45.8 45.8
Claims on the public and public sector entities 0.0 55.0 0.0
Debt securities 0.0 2.0 0.0
Shares and participations 0.0 39.1 39.1
Other assets 0.0 77.4 0.0
Total 22.9 219.3 86.9
USAGE OF COLLATERAL 2022
Asetetyut vakuudet
Markeplace collateral, stock- and derivatives trades 0.1
Collateral for OTC derivatives trades 22.8
Collateral for securities lending 0.0
Total 22.9
Received collateral
Received cash 0.0
Received securities 166.9
Total 166.9
9.37. FEES PAID TO AUDITORS
2022
Parent Company
Audit 0.2
Assignments referred to in section 1, subsection 1, point 2 of the Audit Act
0.1
Tax advice
0.0
Other services 0.0
Total 0.3
9.38. BREAKDOWN OF OFFBALANCE SHEET COMMITMENTS
2022
Commitments given to a third party on behalf of a customer 0.0
Irrevocable commitments given in favour of a customer 2.8
Rental commitments 12.9
Unused credit facilities, given to clients 3.7
Business mortgages 4.5
MANDATORY ELEMENTS OF THE ESEF TAXONOMY
Name of reporting entity or other means of identification
Domicile of entity
Legal form of entity
Country of incorporation
Address of entity's registered office
Principal place of business
Description of nature of entity's operations
and principal activities
Name of parent entity
Name of ultimate parent of group
Evli Plc
Helsinki
Public limited company
Finland
Aleksanterinkatu 19, 00100 Helsinki
Helsinki
Evli Plc is a investment company whose clients are institu-
tions, companies and present or future high net worth indi-
viduals. Evli Plc and its subsidiaries form the Evli Group. Evli
serves its clients in international groups in two business ar-
eas: Wealth Management and Investor Clients and Advisory
and Corporate Clients. Evli’s product and service selection
include mutual funds, asset management, capital market
services, alternative investment products, investment re-
search, planning and management of incentive systems, and
M&A services.
Evli Plc
Evli Plc
The ESEF report has not been assured by the auditors.
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The Board of Directors’ proposal to the general meeting
for the distribution of profits
TThe parent company’s distributable assets on December 31, 2022 totalled EUR 54,845,301.93 of which EUR 29,720,987.61 were retained earnings and EUR
25,124,314.32 were in the reserve for invested unrestricted equity. The Board of Directors proposes to the Annual General Meeting of Shareholders that a
dividend of EUR 0.80 per share be paid, in addition to which a maximum of EUR 0.35 per share will be distributed from the reserve for invested unrestricted
equity. The total proposed dividend calculated according to the number of shares (excluding own shares held by the company) on the balance sheet date is EUR
30,216,597.30. There have been no major changes in the company’s financial position after the end of the financial year. The proposed distribution of profit does
not endanger the financial solidity or liquidity of the company.
Helsinki, February 14, 2023
Auditor’s Note
Based on the auditing an audit report has been issued today.
Helsinki, February 17, 2022
PricewaterhouseCoopers Oy
Authorised Public Accountants
Henrik Andersin
Chairman
Jukka Paunonen
Authorised Public Accountant (KHT)
Antti Kuljukka
Robert Ingman
Teuvo Salminen
Fredrik Hacklin
Maunu Lehtimäki
CEO
Sari Helander
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Auditor’s Report
(Translation of the Finnish Original)
To the Annual General Meeting of Evli Plc
Report on the Audit of the Financial Statements
Opinion
In our opinion
- the consolidated financial statements give a true and fair view of the group’s financial position and financial
performance and 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 the financial statements in
Finland and comply with statutory requirements.
Our opinion is consistent with the additional report to the Audit Committee.
What we have audited
We have audited the financial statements of Evli Plc (business identity code 3239286-2) for the financial year
April 2 to December 31, 2022. The financial statements comprise:
- the consolidated balance sheet as of December 31, 2022, consolidated comprehensive income statement,
consolidated statement of cash flow, consolidated statement of changes in equity and notes to the financial
statements for the period January 1, 2022 to December 31, 2022, including a summary of significant
accounting policies
- the parent company’s balance sheet as of December 31, 2022, parent company’s income statement, parent
company’s statement of cash flow and notes to the financial statements for the financial year April 2, 2022 to
December 31, 2022.
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 the Financial Statements
section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
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.
To the best of our knowledge and belief, the non-audit services that we have provided to the parent company
and to the group companies are in accordance with the applicable law and regulations in Finland and we have
not provided non-audit services that are prohibited under Article 5(1) of the Regulation (EU) No 537/2014. The
non-audit services that we have provided are disclosed in note 8.7 to the Financial Statements.
Emphasis of Matter – Basis for preparation of the Group
We would like to draw your attention to section 1.2 Basis for preparation of the financial statements in note 1
Notes to the consolidated financial statements of the consolidated financial statements, which describes the
preparation of the consolidated financial statements on a carve-out basis until April 1, 2022 and as consolidated
group figures from April 2, 2022, as well as the basis for the applied preparation basis. Our opinion is not
modified in respect of this matter.
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Our Audit Approach
Overview
How we tailored our group audit scope
We tailored the scope of our audit, taking into account the structure of Evli Group, the accounting processes and
controls, and the industry in which the group operates.
We determined the type of work that needed to be performed at group companies by us, as the group
engagement team. Audits were performed in group companies which were considered significant either
because of their individual financial significance or due to their specific nature, covering the majority of
revenue, assets and liabilities of the group. Analytical procedures were performed to cover the remaining group
companies.
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.
MATERIALITY
- Overall group materiality: € 2.0 million, which represents
approximately 5% of the average of the profit before taxes of Evli
Group for the financial years 2021-2022
AUDIT SCOPE
- In addition to the parent company, the group audit scope included
four significant companies
KEY AUDIT MATTERS
- Recognition of commission income
- Valuation of financial assets and financial liabilities measured at
fair value
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the
financial statements. In particular, we considered areas where management made subjective judgements; for
example, in respect of significant accounting estimates that involve assumptions and evaluation of future events
that are inherently uncertain.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable
assurance whether the financial statements are free from material misstatement. Misstatements may arise due
to fraud or error. They 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.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including
the overall group materiality for the consolidated financial statements as set out in the table below. These,
together with qualitative considerations, helped us to determine the scope of the audit and the nature, timing
and extent of the audit procedures and to evaluate the effect of misstatements on the financial statements as a
whole.
OVERALL GROUP MATERIALITY
€ 2.0 million
HOW WE DETERMINED IT
Approximately 5% of the average of the profit before taxes of Evli Group
for the financial years 2021-2022
RATIONALE FOR THE MATERIALITY
BENCHMARK APPLIED
We chose profit before taxes as the benchmark, because in our view, it is
the benchmark against which the performance of the Group is commonly
measured by users, and it is a generally accepted benchmark. We chose
approximately 5%, which is within the range of acceptable quantitative
materiality thresholds in auditing standards.
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As in all of our audits, we also addressed the risk of management override of internal controls, including
among other matters consideration of whether there was evidence of bias that represented a risk of material
misstatement due to fraud.
We have no key audit matters to report with respect to our audit of the parent company financial statements.
There are no significant risks of material misstatement referred to in Article 10(2c) of Regulation (EU) No
537/2014 with respect to the consolidated financial statements or the parent company financial statements.
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 the 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
KEY AUDIT MATTER IN THE AUDIT OF THE GROUP HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER
RECOGNITION OF COMMISSION INCOME
Note 2.1 in the consolidated financial statements
The assets managed by Evli Group entitle it to fee and
commission income under the agreements made with
customers and cooperation parties.
The accuracy of calculation of commission and fee
income inherently involves risk, considering that the
calculation is system-based and partly manual based
on contract data and other source data.
Commission income in the consolidated financial
statements was EUR 95.4 million representing a
significant item in the consolidated income statement.
We have determined recognition of commission
and fee income as a key audit matter due to above
mentioned aspects.
We obtained an understanding of business processes
and IT systems related to commission and fee income
and assessed the control environment.
Our audit work also included a comparison of
accounting data between sub-ledger systems and
the general ledger. Furthermore, we have performed
substantive testing of commission and fee income.
We have assessed calculation models for recognized
commission and fee income and compared the input
parameters applied in the calculations to agreements
on a sample basis.
KEY AUDIT MATTER IN THE AUDIT OF THE GROUP HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER
VALUATION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES MEASURED AT FAIR VALUE
Notes 3.4, 3.5, 3.6, 3.17, 7.1, 7.2, 7.3 and 7.4 in the
consolidated financial statements
Determination of fair values is based on valuation
principles outlined in the accounting policies of Evli
Group’s financial statements.
A significant amount of financial assets and liabilities
valued at fair value (hereafter referred to as
“investments”) is comprised of investments for which a
quoted market price cannot be obtained, i.e. hierarchy
level 2 and 3 investments. Fair values for these are
based on valuation models that involve management
judgment.
Investments are a material line item in Evli Group’s
financial statements, and we have therefore
determined their valuation as a key audit matter.
We have evaluated the valuation process, valuation
model and control environment of investments and the
compliance with the accounting policies in Evli Group.
In connection with our audit, we have compared input
parameters applied in the valuation model to market
quotations and other external price sources and
assessed the results of the valuation model.
We have also assessed the appropriateness of
the notes in the consolidated financial statements
regarding investments.
GovernanceResponsibilityBusiness Overview GovernanceResponsibility Financial ReviewBusiness Overview
126126
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 a 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 to 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 about 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 the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these 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 ’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
operations 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 to 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
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 have acted as the auditor appointed by the Annual General Meeting since April 2, 2022.
GovernanceResponsibilityBusiness Overview GovernanceResponsibility Financial ReviewBusiness Overview
127127
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.
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 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 the 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
- 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, we conclude that there is a material misstatement of the other
information, we are required to report that fact. We have nothing to report in this regard.
Helsinki February 17, 2023
PricewaterhouseCoopers Oy
Authorised Public Accountants
Jukka Paunonen
Authorised Public Accountant (KHT)
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ResponsibilityBusiness Overview Responsibility Financial ReviewBusiness Overview Governance
GOVERNANCE
Business Overview Responsibility Financial Review Governance
Evli’s management and business operations are the
responsibility of the General Meeting, the Board of
Directors and the CEO, whose tasks are determined in the
Finnish Limited Liability Companies Act and in Evli’s Articles
of Association. Evli Group’s Executive Group assists the
CEO in the operative management of the company. The
Executive Group consists of managers of the business
areas and group functions, and it helps the CEO in the
approval and execution of Group-level operating principles
and procedures.
The members of Evli Plc’s Board of Directors in 2022 were
Henrik Andersin, Fredrik Hacklin, Sari Helander, Robert
Ingman, Antti Kuljukka, and Teuvo Salminen. Evli’s CEO in
2022 was Maunu Lehtimäki.
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Auditors
CEO
Board of Directors
Audit and Risk Committee
Compensation Committee
ResponsibilityBusiness Overview Responsibility Financial ReviewBusiness Overview Governance
The governance of Evli Plc (“Evli” or “company”) is based on the Articles of Association, the Finnish Limited Liability
Companies Act, applicable statutory provisions governing the Finnish securities markets, the Market Abuse
Regulation (MAR), the regulations of the Finnish Financial Supervisory Authority, the rules and regulations of
Nasdaq Helsinki Ltd, and other statutes and regulations concerning the governance of public limited companies.
The Articles of Association, the published policies and other information on Evli’s corporate governance can be
found at the company’s website evli.com/en/investors.
Evli also complies with the Finnish Corporate Governance Code issued by the Securities Market Association.
The Code can be viewed in full on the Securities Market Association’s website at cgfinland.fi/en. This Corporate
Governance Statement referred to in Chapter 7, section 7 of the Securities Markets Act (746/2012) has been
compiled in compliance with the Finnish Corporate Governance Code and it has been prepared as a separate
report from the Board of Directors’ Report.
Evli’s governance structure
Evli’s management and business operations are the responsibility of the General Meeting, the Board of Directors
and the CEO, whose tasks are determined in the Finnish Limited Liability Companies Act and in Evli’s Articles of
Association. Evli Group’s Executive Group assists the CEO in the operative management of the company. The
Executive Group consists of managers of the business areas and group functions, and it helps the CEO in the
approval and execution of Group-level operating principles and procedures.
Evli’s Board of Directors is primarily responsible for Evli Group’s risk management. The Board of Directors
confirms the principles and responsibilities of risk management, the risk limits of the Group and other general
guidelines according to which the risk management and internal audit are organised.
Corporate governance
statement
General Meeting of Shareholders
EVLI PLC’S GOVERNANCE STRUCTURE
Risk management and
Internal audit
Risk management
Compliance
Internal audit
Executive Group
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ResponsibilityBusiness Overview Responsibility Financial ReviewBusiness Overview Governance
General Meeting of Shareholders
The ultimate decision-making power in the company is exercised by shareholders at General Meetings. By
participating in the General Meeting either personally or via a proxy, a shareholder may exercise his/her right to
vote and make inquiries and participate in decision-making on matters concerning the company. At the General
Meeting, each Series A share of Evli entitles its holder to twenty (20) votes and each Series B share to one (1)
vote. General Meetings are held at least once a year. The Annual General Meeting (AGM) is held upon completion
of the company’s financial statements, at a place and on a date designated by the Board of Directors. The date
must be no later than the end of June.
Matters to be discussed at a General Meeting are specified in the Limited Liability Companies Act and in Evli’s
Articles of Association. The General Meeting normally discusses not only the matters specified by law and in
the Articles of Association but also items presented to the meeting by the Board of Directors. Under the Limited
Liability Companies Act, shareholders are also entitled to bring up for discussion at a General Meeting any
matter that falls within the authority of the meeting.
A notice to the General Meeting is published no earlier than three (3) months prior the record date of the General
Meeting, and no later than three (3) weeks prior to the General Meeting, however, no later than nine (9) days
before the record date of the General Meeting. The notice is published on Evli’s website (evli.com) and as a stock
exchange release. The Board of Directors may, at their discretion, announce the General Meeting in one or more
newspapers. Documents to be presented in the General Meeting and the Board’s proposals for decisions to the
General Meeting are made available at Evli’s website (evli.com) three (3) weeks before the General Meeting.
Annual General Meeting (AGM)
At the AGM, information is presented about the company’s activities. The AGM also decides on the following:
- the adoption of the financial statements of the previous financial year
- the company’s profit distribution
- discharging the Board members and the CEO and his/her deputy from liability
- the election of Board members and their remuneration
- the appointment of auditors and their remuneration.
Extraordinary General Meeting
The Board of Directors may convene an Extraordinary General Meeting if it considers this necessary. The
auditor and any shareholder with more than ten percent of the company’s shares also have the right to
demand that an Extraordinary General Meeting be called to discuss a matter to be presented by the auditor or
shareholder.
Board of Directors
The AGM of Evli Plc elects each year a Board of Directors, which, between General Meetings, exercises the
ultimate decision-making power in Evli Group. The task of Evli’s Board is to manage the company in accordance
with the laws and official regulations, and in compliance with the Articles of Association and the decisions of the
General Meeting.
Duties of the Board of Directors
The Board has approved a written procedure defining its duties and meeting practices. The tasks of the Board
are, among others:
- taking responsibility for the company’s administration and appropriate organisation of operations
- ensuring that the company’s accounting and asset management are monitored in an appropriate manner
- handling all matters that are of extensive and fundamental importance for the operation of the company and
the entire Group
- deciding upon the Evli Group’s business strategy and approving the budget
- confirming the principles for the arrangement of Evli Group’s risk management and internal audit
- appointing the CEO and the members of the Executive Group and relieving them of their duties
- deciding on the CEO’s salary and other benefits
- approving the objectives for the Group’s human resources planning and monitoring their implementation
- deciding the basis for the Group’s remuneration system and other comprehensive matters that concern the
personnel.
In accordance with the principles of good governance, the Board also ensures that the company, in its
operations, endorses the corporate values that have been set out for compliance. The Board conducts an annual
review of its activities and working practices in the form of an internal self-assessment.
Composition of the Board of Directors
At the AGM, four to eight (4–8) members are elected to Evli’s Board of Directors by representatives of major
shareholders and external independent experts. The major shareholders of the company prepare a proposal on
the composition of the Board for the AGM. The Board members should be elected so that the composition of the
Board is as diverse as possible and supports Evli’s business goals and meets the following principles:
- The Board as a whole must have sufficient competence and experience to be able to carry out its duties
diligently and efficiently, taking into consideration the type and scope of the company’s operations and its
strategic goals and the changes within business and the rest of society.
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ResponsibilityBusiness Overview Responsibility Financial ReviewBusiness Overview Governance
- The members of the Board should have supplementary education and skills and experience in areas that are
important to the company.
- The members of the Board should have experience of Board work and executive duties in business or other
areas of society.
- The Board should include both men and women as far as it is possible.
- The Board should also be diverse in terms of age distribution and number of terms.
In addition, in accordance with the Corporate Governance Code 2020, persons elected to the Board must have
the opportunity to spend sufficient time carrying out their duties. All Board candidates must submit their own
assessment of their independence to the Board at least once every year. In addition, the company also evaluates
the independence of all existing members on the basis of documents in its possession and, when needed,
using public documents in accordance with the Corporate Governance Code issued by the Securities Market
Association in 2020 or other applicable regulations.
The Board members are elected for a term of one year, which starts at the conclusion of the AGM and ends
at the conclusion of the next AGM following the election. The Board elects a Chairman and a Deputy Chairman
among themselves.
The members of Evli’s Board of Directors in 2022 were Henrik Andersin, Fredrik Hacklin, Sari Helander, Robert
Ingman, Antti Kuljukka and Teuvo Salminen.
Evli’s Board of Directors consists of industry experts and the company’s major shareholders. All Board members
are independent of the company. With the exception of Henrik Andersin and Robert Ingman, the other Board
members are independent of the company’s significant shareholders. Based on the shareholdings of controlled
companies, Henrik Andersin and Robert Ingman are not independent of the company’s significant shareholders.
Diversity of the Board of Directors
The principles concerning the diversity of the Board of Directors are stated in the Board’s diversity policy, which
the Board approved on December 13, 2017. Diversity strengthens Evli’s goal of having a Board whose overall
competence profile supports the development of Evli’s business. Diversity is seen as a key success factor that
enables Evli to reach its strategic goals and continuously improve its client-centric operations.
The diversity of the Board is viewed from different perspectives. For Evli, the essential factors are the Board
members’ versatile and complementary expertise, experience from various industries and management, and
the personal qualities of the members. The age and gender distribution of the Board members are taken into
account, which supports the diversity of the Board. The actualisation and development of diversity towards the
goals is evaluated in the annual self-evaluation discussion of the Board.
At the end of the financial year 2022, the Board members represented a wide range of expertise on
management and board tasks in several industries, and their educational backgrounds and expertise
complement each other. In addition, both genders were represented on the Board. Of the Board members, one
was female and five were male. The median age was 59, and the age difference between the youngest and the
oldest member was 24 years.
Committees set up by the Board
The Board has established an Audit and Risk Committee and a Compensation Committee to prepare matters
to be handled by the Board. The committees have no independent decision-making power; instead, decisions
are made by the Board on the basis of recommendations and information supplied by the committees. The
committees make regular reports on their activities to the Board.
Audit and Risk Committee
The Audit and Risk Committee is responsible for assisting the Board in ensuring that the company has an
adequate internal audit system covering all operations and that the company’s risk management has been
arranged appropriately. It also monitors the financial statements reporting process.
The Audit and Risk Committee is also responsible for:
- Overseeing the accuracy and correctness of the company’s financial reporting and monitoring the statutory
auditing of the financial statements and consolidated financial statements.
- Preparing the proposal on the appointment of auditors and the auditors’ fees, to be made to the AGM.
- Ensuring that the company’s operations and internal audit have been arranged in accordance with all
applicable laws, regulations, and good management and governance practices.
- Monitoring the activity and efficiency of the internal audit function.
- Assessing the independence of the statutory auditor or auditing firm, and especially the provision of ancillary
services to the company.
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The Audit Committee consists of at least three members, who may not be part of the company’s management
and must be independent of the company. In addition to the Committee’s regular members, the meetings are
attended by the auditors, the CEO, the CFO and the internal auditor. The Committee meets every quarter.
The Audit and Risk Committee’s members are Teuvo Salminen (Chairman), Robert Ingman and Antti Kuljukka. The
Committee met four times in 2022. The Audit Committee members’ average attendance rate at meetings was
100 percent. The participation of each member in the meetings is listed in table 1.
Compensation Committee
The Compensation Committee is responsible for assisting the Board of Directors in the preparation of matters
related to the company’s employment terms and compensation.
In addition, the Compensation Committee assists the Board in the following:
- Preparation of matters related to the compensation and incentive systems for management and personnel.
- Regular assessment of the functioning of and compliance with the compensation system.
In addition, the Compensation Committee prepares the remuneration policy and remuneration report of the
company’s governing bodies.
The Committee consists of at least three members, elected by the Board from among its members. The
Committee Chairman is chosen from among the Committee members and must be an independent Board
member.
The members of Evli’s Compensation Committee are Sari Helander (chairman), Henrik Andersin and Fredrik
Hacklin. The Committee met four times in 2022. The Compensation Committee members’ average attendance
rate at meetings was 100 percent. The participation of each member in the meetings is listed in the table 1.
ATTENDANCE
AT BOARD
MEETINGS
IN 2022
ATTENDANCE
IN AUDIT
AND RISK
COMMITTEE
MEETINGS
2022
ATTENDANCE
IN COMPEN
SATION
COMMITTEE
MEETINGS
2021
OWNERSHIP
IN THE COMPANY
1
,
NUMBER OF SHARES INDEPENDENCY
Name Personal data ASHARES BSHARES
OF THE
COMPANY
OF THE
SHARE
HOLDERS
Henrik
Andersin
Chairman of the of the Board of
Directors
Member of the Compensation
Committee
Born 1960, M.Sc. (Econ)
Board professional
21/22 5/5 3,803,280 950,820 √
Fredrik
Hacklin
Member of the Board of Directors
Member of the Compensation
Committee
Born 1978, Ph.D. (Management),
M.Sc. (Engineering)
Main occupation: Professor, Director
and Member of Executive Committee
at ZHAW School of Management and
Law, Zurich, Associate professor at
ETH Zurich
22/22 5/5 - 2,150 √ √
Sari
Helander
Member of the Board of Directors
Member of the Compensation
Committee (chairman)
Born 1967, M.Sc. (Econ)
Main occupation: CFO, Ramirent
Group
22/22 5/5 - 4,000 √ √
Robert
Ingman
Member of the Board of Directors
Member of the Audit and Risk
Committee
Born 1961, M.Sc. (Tech), M.Sc. (Econ.
And Business Administration
Board professional
22/22 5/5 1,860,000
2
802,000
2
√
Antti
Kuljukka
Member of the Board of Directors
Member of the Audit and Risk
Committee
Born 1961, M.Sc.(Soc.Sc.), eMBA. Maj
evp
Main occupation: CEO, Fennia Group
16/16 4/4 - 4,712 √ √
Teuvo
Salminen
Member of the Board of Directors
Member of the Audit and Risk
Committee (Chairman)
Born 1954, M.Sc. (Econ. and business
administration)
Board professional
21/22 5/5 - 89,952 √ √
1
Shareholding on December 31, 2022, including holdings through a controlled company.
2
Includes holdings of Ingman Group Oy Ab
Member of the Board of Directors since April 2, 2022
Table 1: Evli Plc’s Board of Directors in 2022
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Corporate management
Evli’s corporate structure
Evli’s business operations are organised around two client segments: Wealth Management and Investor
Clients, and Advisory and Corporate Clients. These are supported by common group functions, which include
Information Management, Financial Administration, Marketing, Communications and Investor Relations, Legal and
Compliance, Human Resources, Internal Services, Risk Management and Internal Audit.
CEO
Evli’s Board of Directors appoints the company’s CEO and decides the terms and conditions of his or her
service relationship. The CEO is responsible for the company’s day-to-day management in compliance with the
instructions and decisions provided by the Board of Directors. Evli Group’s Executive Group assists the CEO in
the operative management of the company.
The CEO’s duties include the management and supervision of the Group’s business, preparation of matters to
be handled by the Board, and implementation of the Board’s decisions. In accordance with the Limited Liability
Companies Act, the CEO ensures that the company’s accounting is lawful, and that the asset management is
arranged reliably.
The CEO’s period of notice is six months, and the severance compensation payable to the CEO in addition to the
salary for the period of notice corresponds to 12 months’ salary. The CEO’s retirement age is 63 years. The
company’s CEO is Maunu Lehtimäki, M.Sc. (Econ.), born in 1967.
Executive Group
The Executive Group consists of the CEO and six members. The CEO presents a proposal regarding the choice of
members to the Executive Group, and these names are then subject to confirmation by the Board of Directors.
The CEO convenes the Executive Group as necessary and serves as its Chairman. The Executive Group normally
meets twice a month. The Executive Group’s task is to support the CEO in preparing and implementing the
strategy and in coordinating the Group’s operations. The Executive Group’s duties also include preparing and
executing matters that are significant or involve fundamental principles and ensuring internal co-operation and
communication.
Additional information:
Board of Directors on page 144 and Executive Group on page 145.
Risk management and internal control
The company’s organisational structure, clearly established responsibilities and authorisations, and its
competent employees support the planning, execution, control, and monitoring of business operations in a
manner that facilitates the achievement of set objectives.
Risk management refers to actions aimed at systematically surveying, identifying, analysing, and preventing
risks. The objectives of risk management are to:
- ensure the sufficiency of own assets in relation to risk positions
- ensure that fluctuations in financial results and valuations remain within the confirmed objectives and limits
- price risks correctly to achieve sustainable profitability
- support the uninterrupted implementation of the Group’s strategy and income generation.
Ownership in the company
1
,
number of shares
Name Area of responsibility A-share B-share
Maunu Lehtimäki
2
born in 1967, M.Sc. (Econ.) CEO 533,728 171,031
Mari Etholén
3
born 1973, LL.M. Legal and Human Resources functions 60,000 19,108
Panu Jousimies
4
born in 1969, M.Sc. (Econ.)
Production and execution of securities
transactions 59,691 84,249
Juho Mikola
5
born in 1981, M.Sc. (Econ.)
Financial and Group Administration,
Deputy CEO 68,000 44,580
Esa Pensala
6
born in 1974, M.Sc. (Tech) Private clients 142,000 35,500
Kim Pessala
7
born in 1969, M.Sc. (Econ.) Institutional clients 12,331 94,558
Mikael Thunved
4
born in 1965, B.Sc. (Econ.) Corporate Finance business - 80,000
1
Shareholdings on December 31, 2022, including holdings through controlled entities.
2
50,000 Evli shares allocated under the share-based incentive scheme established in 2019.
3
4,667 Evli shares allocated under the share-based incentive scheme established in 2018 and 20,000 Evli shares under the share-based incentive scheme
established in 2019.
4
20,000 Evli shares allocated under the share-based incentive scheme established in 2019.
5
9,200 Evli shares allocated under the share-based incentive scheme established in 2017, 4,667 Evli shares under the share-based incentive scheme
established in 2018 and 30,000 Evli shares under the share-based incentive scheme established in 2019.
6
30,000 Evli shares allocated under the share-based incentive scheme established in 2019.
7
4,667 Evli shares allocated under the share-based incentive scheme established in 2018 and 20,000 Evli shares under the share-based incentive scheme
established in 2019.
Table 2: Evli’s Executive Group in 2022
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Evli defines risk as an event or series of events that jeopardise the company’s income generation over the short
or long term.
Evli’s Board of Directors is primarily responsible for Evli Group’s risk management. The Board of Directors
confirms the risk management policies, responsibilities, the Group’s risk limits, and other general guidelines
governing how risk management and internal control are to be organised. The Board has also set up a credit
and asset-liability committee (Credalco), which briefs the Audit and Risk Committee on risk-taking matters. In
addition to the general risk management policies, Evli Group’s risk management is founded on the “three lines of
defence” model.
First line of defence – business units
Risk management is a part of internal control, and therefore the responsibility for executing risk management
measures lies first with the business units, as the first line of defence. The managers of the business units
are responsible for ensuring that risk management is at a sufficient level in each respective unit. The task of
business units is to:
- build the processes and competence for risk management and internal audit
- identify and analyse risks
- make decisions on risk management by means of various protection measures.
Second line of defence – Risk Control and Compliance
The second line of defence comprises the independent Risk Control and Compliance functions, whose primary
tasks are to develop, maintain and oversee the general principles and framework of risk management.
The Risk Control function oversees daily operations and compliance with the risk limits granted to the business
units, as well as compliance with risk-taking policies and guidelines. Risk Control reports on Evli Group’s overall
risk position to the Board and the Executive Group each month.
Credit and
assetliability
committee
Business processes
Board of Directors and
Executive Group
2
ND
LINE
OF DEFENCE
1
ST
LINE
OF DEFENCE
3
RD
LINE
OF DEFENCE
INTERNAL AUDIT
Independent of business operations. Supports
the Board of Directors and senior management
in assessing internal control
RISK MANAGEMENT AND COMPLIANCE
Independent of business operations. Develops,
maintains and oversees the general principles of
risk management
BUSINESS UNITS
Risk management and internal audit in daily
operations and identifying and analyzing risk
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The Compliance function is responsible for ensuring compliance with the rules in all of Evli Group’s operations
by supporting operating management and the business units in applying the provisions of the law, the official
regulations and internal guidelines, and in identifying, managing and reporting on any risks of insufficient
compliance with the rules in accordance with the separate compliance policy and monitoring plan confirmed by
Evli’s Board of Directors. The Compliance function reports regularly via the Audit and Risk committee to Evli’s
Board and also to the operating management.
Third line of defence – Internal Audit
The third line of defence is Internal Audit. The Internal Audit is a support function for the Board of Directors and
senior management that is independent of the business functions. It is administratively subordinate to the CEO
and reports to the CEO and, via the Audit and Risk Committee, to the Board of Evli. The Internal Audit assesses
the functioning of Evli Group’s internal control system, the appropriateness and efficiency of the functions and
the compliance with instructions. It does this by means of inspections that are based on the internal audit action
plan adopted annually by the Audit and Risk Committee of the Board of Evli.
Internal Audit follows not only the internal audit guidelines, but also the internationally acknowledged framework
of professional practices (The Institute of Internal Auditors) and corresponding guidelines on information
systems audit standards (The Information Systems Audit and Control Association).
Audit
The shareholders elect the company’s auditors each year at the AGM. The auditors must be an auditing firm
approved by the Finland Chamber of Commerce. The auditors’ term continues until the end of the first AGM that
follows the election of the auditors. The auditors’ duties are to ensure that the financial statements have been
prepared in accordance with the applicable statutes and provide a true and fair view of the company’s financial
position and performance and other necessary information for the company’s stakeholders.
As part of their annual audit duties, the auditors of Evli Plc audit the accounts and administration of the separate
companies. The internal audit requirements are taken into account in the auditors’ audit plans. Each year, the
auditors submit their report to Evli’s AGM.
The auditors also report the main points of the annual audit plan to the Board of Directors and to the Board’s
Audit and Risk Committee as well as presenting, in connection with each interim report and the financial
statements, a written audit report covering the entire Group.
The auditor of the company in 2022 was PricewaterhouseCoopers Oy, an auditing firm, with Jukka Paunonen,
Authorised Public Accountant, as the principally responsible auditor. In addition, KPMG Oy Ab, an auditing firm,
with Tuomas Ilveskoski, as the principally responsible auditor has audited the companies that joined Evli Group
when EAB Group Plc merged into Evli in October 2022.
In 2022, the total fees paid to the auditors amounted to EUR 0.5 million. The audit fee was EUR 0.4 million and the
non-audit fees amounted to EUR 0.1 million.
Insider management
Evli has a guideline on insider rules and regulations that is approved by its Board of Directors and is based
on the Market Abuse Regulation (MAR), Nasdaq Helsinki Ltd’s Guidelines for Insiders of Listed Companies, as
well as other relevant regulations and directives. Evli Group companies that are registered outside of Finland
shall comply not only with these guidelines, but also with the national legislation and official regulations of the
country where the company is located. The guideline on insider rules and regulations is distributed to all persons
engaged in an employment or service relationship with the Group. The persons defined in the guideline on insider
rules and regulations shall comply with the restrictions regarding the use of insider information and trading, for
example the closed window period.
The company has determined that the persons subject to notification obligations for their transactions with Evli
shares and other financial instruments based on it are the members of the Board of Directors and the Executive
Group and their related parties. Evli publishes in a stock exchange release the transactions in Evli shares
and other financial instruments carried out by persons in management positions and their related parties as
required by the Market Abuse Regulation.
According to the law, a person in a managerial position may not trade in securities issued by the company for
30 days before the publication of an interim report or the financial statements bulletin. Evli also applies a similar
30-day trading restriction to Evli Group’s employees who participate in the preparation or publication of the
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interim report and financial statements and who become aware of unpublished financial information at the
Group level. The person in charge of insider issues at Evli is the company’s Head of Legal Affairs. Evli evaluates
and monitors related party transactions between the company and its related parties.
Evli maintains a list of related parties. Evli’s related parties comprise its subsidiaries as well as the Board of
Directors, the CEO, and the Executive Group, including any companies controlled or significantly influenced by
them. Evli’s financial management monitors and reports related party transactions as part of the company’s
normal reporting and control practices. Related party transactions which are not considered normal business
activities are decided by the Board of Directors. Evli reports relevant and material related party transactions
annually in the notes of the consolidated financial statements.
Evli also maintains registers of project-specific and transaction-specific insiders that are required at any given
time.
Financial reporting
The Board of Directors is responsible for overseeing Evli Group’s financial reporting. The Audit and Risk
Committee assists the Board in this work. The CEO’s and CFO’s tasks are to monitor and ensure that the
accounting and the financial reporting accord with the law, the Group’s accounting policies and the guidelines
and orders issued by the Group’s Board of Directors.
The Group’s accounting and results reporting are centralised under the responsibility of the Group’s Financial
Administration unit. The Financial Administration unit is subordinate to the CFO and is responsible for producing,
on a centralised basis, the financial statements information required for external accounting. The unit also
produces internal accounting analyses and the results reports for monitoring business activities, the separate
companies and the Group’s profitability. Profit performance is reported monthly both to the Executive Group and
the Board of Directors in the form of specific results reports. The aim is to identify and demonstrate success
factors as well as development areas well in advance, thus making it possible to react to these. Reporting
practices are also used for monitoring the implementation of the business plans for the business units. The
Group’s Financial Administration unit is also responsible for monitoring and reporting on the performance of
each business unit. Further responsibilities include reporting the financial results, sales and activity at least
monthly, and even daily depending on the unit, to the Executive Group and other concerned parties.
Evli Group complies with the International Financial Reporting Standards (IFRS) approved for application in the
EU. The Group prepares annual financial statements and also quarterly interim reports (IAS 34). The instructions
on financial reporting and the accounting principles are applied in all of the Group companies. The accounting
of all of the Group companies is included in the same accounting system, with the exception of the Group
companies transferred to Evli in connection of the merger of EAB Group Plc, and a Group company in the United
Arab Emirates.
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Remuneration policy
Introduction
The following Remuneration Policy of Evli Plc (“Evli” or “company”) describes the general principles and the
framework concerning the remuneration of the Board of Directors and the CEO. The policies regarding the
CEO also apply to a potential Deputy CEO. Evli also complies with the Finnish Corporate Governance Code
issued by the Securities Market Association. The objective of Evli Group’s remuneration model is to support
the implementation of the company’s strategy and to promote the company’s competitiveness and long-term
financial success. A further aim is to contribute to a positive trend in shareholder value, committing Evli’s Board
of Directors and CEO to the company’s objectives in the long run.
Evli complies with the Securities Market Association’s Corporate Governance Code. This Remuneration Policy has
been prepared in accordance with the Corporate Governance Code 2020. The Remuneration Policy is presented
at Evli’s Annual General Meeting (AGM) at least every four years and whenever significant changes are proposed.
The Remuneration Report is presented annually at Evli’s AGM.
In all remuneration, Evli complies with applicable financial regulations. This Remuneration Policy has been
prepared taking into account the applicable regulations and Evli Group’s overall remuneration model for
all employees. The Remuneration Policy must comply with the remuneration principles applicable to all Evli
employees.
The Group’s remuneration model consists of the following elements:
- A competitive fixed basic salary constitutes a solid foundation for maintaining and constantly developing basic
functions.
- A short-term variable remuneration, in accordance with the annual remuneration plan approved by the Board
of Directors, is used to promote both Evli’s short-term growth objectives and the attainment of its strategic
targets.
- Long-term variable remuneration is used to support the company’s strategic development and to commit key
employees to the company’s business operations.
In accordance with the remuneration principles, the short-term and long-term variable remuneration may not
exceed 200 percent of the annual fixed salary.
Decision-making relating to remuneration
The Remuneration Policy is prepared by the Board’s Compensation Committee and approved by the Board for
presentation to the General Meeting. Compliance with, and the performance and outcomes of, the remuneration
model are monitored by the Compensation Committee appointed by the Board of Directors, and by the Board of
Directors. The company’s internal audit conducts an annual audit of the remuneration.
The remuneration of members of Evli Group’s bodies is always decided by the body that has appointed them.
Evli’s AGM decides on the compensations payable to the members of the Board of Directors. The company’s
major shareholders are responsible for preparing the remuneration proposal. The principles and elements of
the remuneration of the CEO and any Deputy CEO are approved by Evli’s Board of Directors in accordance
with this Remuneration Policy. The Compensation Committee, appointed by the Board of Directors, prepares
proposals on matters related to remuneration for decision-making by the Board. All changes to the CEO’s
salary and remuneration or executive contract are made by the Board of Directors based on a proposal by the
Compensation Committee in accordance with the Remuneration Policy.
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ELEMENTS OF THE
REMUNERATION PURPOSE AND LINK TO STRATEGY DESCRIPTION
FIXED SALARIES
The aim is to recruit and commit high-
quality experts to implement the
company’s strategy.
The base salary includes taxable fringe benefits (for example, a mobile phone). When evaluating the base salary level, a variety of
factors can be taken into account, such as market conditions, competitiveness, past performance and individual skills, as well as
experience in the company and in business management. The base salary is, in principle, reviewed annually.
SHORT-TERM
INCENTIVES (STI)
The purpose is to encourage and guide
in achieving short-term financial and
operational goals.
The short-term incentive scheme is based on one-year performance criteria. Rewards are paid in cash after the end of the
performance period, based on the achievement of the targets. The maximum pay-out for the annual incentive is capped. Short-
term incentives are tied to the company’s financial success, adherence to policies and guidelines, and ensuring solvency.
LONG-TERM
INCENTIVES (LTI)
The purpose is to encourage for long-
term shareholder value growth and
commitment to the company.
The Board of Directors decides on long-term incentives within the limits set by the Annual General Meeting. Long-term incentive
programs generally include a minimum three-year vesting period. The Board of Directors sets the targets, indicators and their
weightings that may be the basis for the incentives. At the end of the vesting period, the Board of Directors can evaluate the
payment criteria to determine the final payment level.
PENSION
The purpose is to provide a pension in
accordance with local market practices.
The retirement age and any supplementary pension arrangements provided are decided by the Board of Directors in line with
market practices.
SHARE OWNERSHIP
The purpose is to ensure strong
alignment between the interests of the
CEO and the shareholders in the longer
term.
The Board decides on the long-term target share ownership for the CEO.
ResponsibilityBusiness Overview Responsibility Financial ReviewBusiness Overview Governance
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Remuneration of the Board of Directors
In general, the remuneration of the Board of Directors is decided by the General Meeting based on a proposal
by the major shareholders. The decision on the remuneration of the members of the Board of Directors shall be
based on the Remuneration Policy presented to the AGM and which is in force.
The remuneration of the members of the Board of Directors consists of a fixed monthly compensation and
possible compensation for meeting attendance. The Chairman of the Board of Directors and the chairmen of the
committees appointed by the Board of Directors may be paid an increased compensation.
The remuneration of the members of the Board of Directors consists of a fixed monthly compensation and
possible compensation for meeting attendance. The Chairman of the Board of Directors and the chairmen of the
committees appointed by the Board of Directors may be paid an increased compensation.
In situations in which a member of the Board of Directors participates in project-based activities to develop the
company’s operations outside the work carried out by the Board of Directors, a separate compensation may be
paid for such work at the Board’s discretion. In addition to the monthly compensation and possible compensation
for meetings, the members of the Board of Directors are compensated for their travel expenses. In principle, the
Board of Directors’ compensation and allowance are paid in cash.
Remuneration of the CEO
The Board of Directors of Evli Group adopts the principles and elements of the CEO’s remuneration on an annual
basis in line with the Remuneration Policy in force. All changes to the CEO’s salary and remuneration are subject
to approval by the Board of Directors.
The CEO’s remuneration is comprised, in principle, of a fixed salary and short-term and long-term variable
remuneration. In addition, the CEO may be granted a separate, reasonable retirement plan or other benefits to
ensure that a competent CEO is committed to the company’s development.
The amount of the CEO’s variable remuneration and the relative proportion to his fixed salary are within the
limits set by financial regulations. The CEO’s short-term and long-term variable remuneration may not exceed
200 percent of the annual fixed salary.
The variable remuneration is linked to the company’s financial success and the achievement of its strategic goals.
If deemed pertinent, the company may, by a decision of the Board of Directors, decide not to pay the variable
bonus, in whole or in part. The Board decides on the long-term variable renumeration for the CEO on a case-
by-case basis.
In certain circumstances, the company is obliged to defer payment of the variable bonus. In such case, the
company will defer payment of the variable bonus in accordance with the regulations set by the financial market.
The amount of the bonus payable after the deferral depends on the financial performance of the company
during the deferral period and may even be zero. The company expects that the CEO will not hedge with his/
her personal actions against any risk related to the amount or timing of future variable remuneration. In certain
circumstances, the company may also reclaim a variable bonus already paid.
The company shall also always have the right to reclaim a variable bonus already paid if, after such payment, it
becomes apparent that the person receiving the bonus has endangered the financial position of the company,
violated the company’s operating principles and practices, or contributed to such conduct through neglect. The
CEO has a notice period consistent with current market practices. Similarly, in cases where the CEO’s contract is
terminated by the company, he/she is entitled to severance pay in accordance with prevailing market practices.
The above matters concerning the CEO also apply to a potential Deputy CEO.
Conditions for temporary deviation
The remuneration of the company’s bodies must, in general, be based on the Remuneration Policy approved
by the General Meeting. Deviations from the policy’s principles can only be made if the achievement of the
company’s long-term goals and strategy is otherwise judged to be at risk. The option to temporarily deviate
from the Remuneration Policy of the bodies is intended to apply only in exceptional circumstances in which the
core operating circumstances of a listed company have, after the General Meeting’s consideration of the bodies’
Remuneration Policy, changed as a result of a change of CEO or a merger or an acquisition proposal, and the
existing Remuneration Policy is thus no longer appropriate in the changed circumstances.
Deviation is also possible in situations where remuneration policy would not be possible due to remuneration
restrictions under financial regulations. If the deviation from the Remuneration Policy is expected to continue
other than on a temporary basis, the company shall draw up a new Remuneration Policy, which will be discussed
at the next AGM. Because of the provisions regarding the notice to the AGM and the availability of the meeting
materials, there may be insufficient time to submit a new Remuneration Policy to the next AGM if the need for
deviation arises close to the time of the meeting. In such a case, the Remuneration Policy shall be submitted to
the General Meeting for which it can be appropriately prepared.
If the temporary deviation from the Remuneration Policy concerns the remuneration of a new CEO or is due to a
corporate restructuring or similar exceptional circumstances, the new remuneration terms will apply as agreed
regardless of the duration of the temporary deviation. Deviations from the policies and principles of the policy
are documented and reported to the Board of Directors and as part of the remuneration report at the AGM.
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Remuneration Report 2022
ResponsibilityBusiness Overview Responsibility Financial ReviewBusiness Overview Governance
This Remuneration Report sets out how Evli Plc (“Evli” or “company”) has implemented its Remuneration Policy in
2022 and presents the remuneration and other financial benefits paid to the members of the Board of Directors
(“Board”) and the Group’s CEO during the year.
Evli Plc was created as a result of a partial demerger from Evli Bank Plc on April 2, 2022. Remuneration of the
company’s governing bodies is based on the Remuneration Policy that was presented for an advisory decision
at the Annual General Meeting held on March 9, 2022. The policy will be applied until the Annual General Meeting
2026, unless the Board decides to bring it forward for an advisory decision at an earlier General Meeting.
The Remuneration Report has been reviewed by Evli’s Compensation Committee and approved by the Board. The
shareholders will make an advisory decision on the approval of the Remuneration Report 2022 at Evli’s Annual
General Meeting in spring 2023.
Overview of remuneration in 2022
The decision-making process on remuneration, as defined in the Remuneration Policy, has been followed in the
remuneration decision-making in 2022. No temporary deviations from the Remuneration Policy were applied
in 2022. Furthermore, the Board did not observe any circumstances or activities that would have resulted
in a need to apply claw-back clauses applicable to the CEO’s variable remuneration in 2022. Regardless of
the extraordinary business environment, the Board did not deem it necessary to use its right to adjust the
performance criteria applied in 2022.
In line with the Remuneration Policy, remuneration in 2022 has supported Evli’s business strategy with a focus
on creating long-term growth and shareholder value. Although a significant part of the CEO’s total remuneration
is in the form of fixed payments, performance-based components are set to encourage the achievement of
targets. Remuneration is balanced to avoid excessive risk-taking. The Compensation Committee has evaluated
NET COMMISSION INCOME M€
2018
67.0
2019
72.2
2020
76.8
2021
111.7
2022
92.1
RETURN ON EQUITY %
2018
35.8
2019
32.3
2020
35.7
2021
50.4
2022
20.4
DEVELOPMENT OF ASSETS UNDER
MANAGEMENT, BN. €
2018
11.4
2019
14.3
2020
14.1
2021
17.5
2022
16.0
PROPORTION OF RECURRING REVENUE
TO OPERATING EXPENSES %
2018
113
100
2019
124
2020
128
2021
135
2022
123
DIVIDEND & EARNINGS/SHARE €
2018
0.68
2019
0.71
2020
0.88
2021
1.47
2022
0.81
1.15
0.73
0.66
0.61
1.06
The Board of Directors proposal to the Annual
General Meeting
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the CEO’s remuneration for 2022 to ensure a competitive and fair total remuneration opportunity compared to
relevant peers and the market. To encourage share ownership in the company, shareholding guidelines for the
CEO were in place to further support and align shareholder and top executive interests.
Development of financial performance and remuneration
5-year development of financial performance
Evli’s business has developed positively over the past five years. The review takes into account the investment
services activities of Evli Bank Plc. The company has set four key performance indicators that it considers to
be good proxies for its business performance. These are the development of assets under management, the
recurring revenue ratio, return on equity and net commission income. From a shareholder perspective, the
company has been able to provide stable returns to investors as depicted by dividend per share development.
Remuneration of the Board of Directors in 2022
Evli’s General Meeting decides on the compensations payable to the Board members. The Annual General Meeting
of March 9, 2022 made the following resolution on the compensation for attendance at meetings payable to the
Chairman of the Board and other members:
- Chairman of the Board EUR 7,500 per month
- Chairmen of the committees EUR 6,000 per month
- Members EUR 5,000 per month
The Board has established and appointed an Audit and Risk Committee and a Compensation Committee to
prepare matters to be handled by the Board. In 2022, the total compensation paid to the Evli Group Board
members amounted to EUR 399,000. This sum is made up of meeting participation fees related to the work
carried out in the Board and its committees. In 2022, the Board members did not receive any shares or share-
based rights as compensation for their work, nor were they granted any other benefits.
5YEAR DEVELOPMENT OF REMUNERATION
2022 2021 2020 2019 2018
BOARD OF DIRECTORS
Chairman of the Board of Directors, EUR 90,000 90,000 84,000 90,000 86,500
Development, % - 7% -7% 4% 20%
Chairmen of the committees (on average), EUR 72,000 70,500 67,200 72,000 70,834
Development, % 2% 5% -7% 2% 35%
Other members of the Board of Directors (on average), EUR 60,000 60,000 56,000 60,000 60,000
Development, % - 7% -7% - 22%
CEO
CEO, EUR 626,010 699,888 446,605
3
488,116
2
440,109
Development, % -11% 57% -9% 11% 4%
AVERAGE EMPLOYEE SALARY
Total salary costs, EUR 32,100,000 29,500,000 24,600,000 29,000,000 22,700,000
Number of employees at the end of the year 344 290 261 249 254
Average salary for the employees, EUR
1
103,780 101,724 94,253 116,466 89,370
Development, % 2% 8% -3% 9% -8%
1
The salary development of the average employee is calculated from personnel expenses by deducting other personnel expenses from the total and dividing it by the number
of employees at the end of the year.
2
In addition, the CEO subscribed to the 212,500 shares granted to him in the Option-program 2014. The total value of the subscription was EUR 1,810,500 based on the closing
price on the subscription day.
3
In addition, the CEO subscribed to the 40,000 shares granted to him in the Option-program 2016. The total value of the subscription was EUR 372,000 based on the closing
price on the subscription day.
The figures for 2018-2021 are those of Evli Pankki Plc. Evli Plc was created by a partial demerger from Evli Bank Plc on April 2, 2022.
The calculation of the average salary takes into account the merger of EAB Group Plc, which effected the salary payments and number of employees only during the last
quarter of the year.
COMPENSATION PAID TO THE MEMBERS OF THE BOARD, €
2022
Henrik Andersin, Chairman of the Board 90,000
Fredrik Hacklin, member of the Board of Directors 60,000
Sari Helander, member of the Board of Directors, Chairman of the Compensation Committee 72,000
Robert Ingman, member of the Board of Directors 60,000
Antti Kuljukka, member of the Board of Directors (member starting April 2, 2022) 45,000
Teuvo Salminen, Vice Chairman of the Board, Chairman of the Audit and Risk Committee 72,000
TOTAL 399,000
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Remuneration of the CEO
The Board of Evli Group adopts the principles and elements of the remunerations for the CEO on an annual basis.
The remuneration of the CEO follows Evli’s Remuneration Policy in force. All changes in the CEO’s salary and
remuneration are subject to the Board’s approval.
Application of performance criteria in 2022
In 2022, Evli had a short-term incentive plan in place for the CEO. No long-term incentive plans were issued to
the CEO during 2022. The short-term and long-term incentive plan performance criteria are evaluated annually
by the Board. In accordance with the remuneration policy, variable remuneration may not exceed 200 percent
of the annual fixed remuneration. The purpose of the short-term incentive is to incentivise for the achievement
of stretched financial and non-financial short-term targets aligned with the business strategy. The short-term
incentive plan remuneration is dependent on the financial performance of Evli, as well as reaching strategic
targets. The Board of Directors decided on the performance targets and maximum amount of the short-term
incentive plan for 2022 at the beginning of the financial year as follows:
SHORTTERM INCENTIVE PLAN CRITERIA 2022 WEIGHT
Evli Group financial performance 50%
Group level Key Performance Indicator targets 30–50%
Finalising strategic projects 0–20%
Since there were strategically significant corporate restructuring during the review period, the performance
evaluation emphasized the success of strategic projects over other performance goals. With regard to the
projects, the company estimated that the objectives have been met and management was eligible to variable
remuneration. In accordance with the regulations, the renumeration will be paid in installments: in spring 2023
(50%) and during the next three years in steps totaling 50 percent. The realisation of short-term incentives in
2022 was around 20 percent of the maximum compensation according to the remuneration policy.
During 2022, the company paid the CEO remuneration in accordance with the performance targets set for the
financial year 2021, which were based on the performance targets of the 2021 short-term incentive plan and
the delayed 2018 short-term variable remuneration.
Share-Based Incentives
Evli’s long-term incentive plans have been implemented mainly as restricted share plan (RSP) schemes. The
purpose of the share-based retention plans is to encourage the executives and the selected key employees
to work on a long-term basis to increase shareholder value and to commit to the company. The Board decides
annually on the issuance of new plans based on the Compensation Committee’s proposal within limits provided
by the General Meeting.
The Restricted Share Plan offers an opportunity to earn a predetermined number of the company’s shares as
a reward for continuous service and retention. Evli’s Restricted Share Plans consist of one to three, annually
commencing periods followed by vesting periods of a minimum of three years. After the vesting period, shares
in the Restricted Share Plans are usually delivered to the participants provided that their employment with the
company has continued uninterrupted throughout the duration of the plan and until the shares are delivered.
The vesting period is further followed by a one-year waiting period in accordance with the regulation set for the
financial sector. The possible rewards under the Restricted Share Plans are paid as a combination of shares and
cash. The cash component is dedicated to cover the taxes and tax-related costs related to restricted shares.
SUMMARY OF SHARE-BASED INCENTIVES PAID TO THE CEO AND DEPUTY CEO
GRANTED INSTALLMENTS,
NUMBER OF SHARES
PLAN INSTALLMENT
GRANT
DATE
CEO
DEPUTY
CEO
VESTING
PERIOD
PAYMENT
YEAR
WAITING
PERIOD
Restricted share plan
2017 - Installment 3
30.9.2019 9,200 3 years 2022 +1 year
Restricted share plan
2018 - Installment 3
11.6.2020 4,667 3 years 2023 +1 year
Restricted share plan
2019 - Installment 1
14.6.2019 50,000 30,000 3 years 2023 +1 year
Gross number of shares before income taxes on the payment of shares.
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No share-based incentives were granted to the CEO during the reporting period 2022. No share-based
incentives were paid to him during the year ended.
Remuneration of the CEO in 2022
Evli’s CEO in 2022 was Maunu Lehtimäki. The CEO was paid EUR 489,040 in salary and fringe benefits,
performance bonuses amounting to EUR 63,614 and a supplementary pension of EUR 73,356, totaling EUR
626,010. The CEO has no significant separate fringe benefits and is covered by the shared Evli Group reward
system. The CEO is covered by a six-month period of notice binding to both parties. The CEO is entitled to receive
a severance pay corresponding to 12-months’ salary if the CEO’s contract is terminated by the company.
Base salary 78%
Additional pension 12%
Paid annual incentive 10%
Paid long-term retention 0%
Base salary 47%
Paid annual incentive 21%
Additional pension 0%
Paid long-term retention 32%
CEO, € BASE SALARY
ADDITIONAL
PENSION
PAYMENT
PAID ANNUAL
INCENTIVE
PAID LONG
TERM
RETENTION
TOTAL PAID
COMPENSATION
EARNED
ANNUAL
INCENTIVE
EARNED LONG
TERM
RETENTION TOTAL
CEO, MAUNU LEHTIMÄKI 489,040
1
73,356 63,614
2
3
626,010 200,000
4
5
826,010
6
1
Including fringe benefits.
2
Annual incentives earned in 2021 and annual incentives earned and delayed in 2018.
3
No installments paid in 2022.
4
Earned in 2022. In accordance with the regulations, part of the renumeration will be paid in 2023 and part will be delayed for 3 years and will be paid in
steps.
5
No long-term compensation program has been introduced for the CEO in 2022.
6
Total compensation earned in 2022. Base salary is paid in 2022 and incentives partly paid in 2023 and partly in steps over the next three years.
REMUNERATION OF THE DEPUTY CEO IN 2022
DEPUTY CEO, € BASE SALARY
ADDITIONAL
PENSION
PAYMENT
PAID ANNUAL
INCENTIVE
PAID LONG
TERM
RETENTION
TOTAL PAID
COMPENSATION
EARNED
ANNUAL
INCENTIVE
EARNED
LONGTERM
RETENTION TOTAL
CFO, JUHO MIKOLA 215,840
1
99,222
2
147,691
3
462,753 82,645
4
5
545,398
6
1
Including fringe benefits.
2
Annual incentives earned in 2021 and annual incentives earned and delayed in 2018.
3
Payment for the long-term incentives for 2017.
4
Earned in 2022. In accordance with the regulations, part of the renumeration will be paid in 2023 and part will be delayed for 3 years and will be paid in
steps.
5
No long-term compensation program has been introduced for the Deputy CEO in 2022.
6
Total compensation earned in 2022. The base is paid in 2022 and the incentives partly in 2023 and partly in steps over the next three years.
STRUCTURE OF PAID COMPENSATION IN 2022 STRUCTURE OF EARNED COMPENSATION IN 2022
CEO, MAUNU LEHTIMÄKI
CFO, JUHO MIKOLA
REMUNERATION OF THE CEO IN 2022
Earned annual incentives 100%
Earned long-term retention 0%
Earned annual incentives 100%
Earned long-term retention 0%
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Board of Directors
HENRIK ANDERSIN
BORN 1960
M.Sc. (Econ.)
FREDRIK HACKLIN
BORN 1978
Ph.D. (Management),
M.Sc. (Engineering)
SARI HELANDER
BORN 1967
M.Sc. (Econ.)
ROBERT INGMAN
BORN 1961
M.Sc. (Tech.), M.Sc. (Econ.
and Business Administration)
ANTTI KULJUKKA
BORN 1961
M.Sc. (Soc.Sc.), eMBA, Maj evp.
TEUVO SALMINEN
BORN 1954
M.Sc. (Econ. and Business
Administration)
- Chairman of the Board of
Directors
- Member of the Compensation
Committee
- Board professional
- One of Evli Bank’s founding
partners and main owners
- Chairman of the Board of
Directors of Oy Scripo Ab
- Independent of the company
- Shareholding: Holdings through
controlled company Oy Scripo Ab
3,803,280 A shares and 950,820
B shares
- Member of the Board of
Directors
- Member of the Compensation
Committee
- Main occupation: Professor,
Director and Member of Executive
Committee at ZHAW School of
Management and Law, Zurich,
Associate professor at ETH
Zurich
- Independent of the company and
its significant shareholders
- Shareholding: 2,150 B shares
- Member of the Board of
Directors
- Chairman of the Compensation
Committee
- Main occupation: CFO, Ramirent
- Member of the Boards of Directors
of Enersense International Plc
- Independent of the company and
its significant shareholders
- Shareholding: 4,000 B shares
- Member of the Board of
Directors
- Member of the Audit and Risk
Committee
- Board professional
- Chairman of the Boards of
Directors of Ingman Group Oy Ab,
Ingman Finance Oy Ab, Ingman
Development Oy Ab, Digia Plc,
Etteplan Oyj, Halti Oy and Qt Group
Plc
- Independent of the company
- Shareholding: 1,860,000 A shares
and 802,000 B shares
- Member of the Board of Directors
of Evli Plc since April 2, 2022
- Member of the Audit and Risk
Committee
- Main occupation: Senior Advisor,
Fennia Group
- Member of the Boards of
Directors of Finnish Figure
Skating Association, Elo Mutual
Pension Insurance Company,
Turvallisuuden tukisäätiö,
Jääkärisäätiö and Finance
Finland, and Vice-Chairman of
the delegation of the Finnish
Orienteering Federation
- Independent of the company and
its significant shareholders
- Shareholding: 4,712
- Member of the Board of Directors,
Vice Chairman of the Board
- Chairman of the Audit and Risk
Committee
- Board professional
- Chairman of the Board of
Directors of T2H Oy, Member
of the Boards of Directors of
Cargotec Corporation and 3Step
It Group Oy
- Independent of the company and
its significant shareholders
- Shareholding: 89,952 B shares
ResponsibilityBusiness Overview Responsibility Financial ReviewBusiness Overview Governance
Includes holdings of Ingman Group Oy Ab
145145
Executive Group
MAUNU LEHTIMÄKI
BORN 1967
M.Sc. (Econ.)
MARI ETHOLÉN
BORN 1973
LLM
PANU JOUSIMIES
BORN 1969
M.Sc. (Econ.)
JUHO MIKOLA
BORN 1981
M.Sc. (Econ.)
ESA PENSALA
BORN 1974
M.Sc. (Tech.)
KIM PESSALA
BORN 1969
M.Sc. (Econ.)
MIKAEL THUNVED
BORN 1965
M.Sc. (Econ.)
- Chief Executive Officer
- Joined Evli in 1996
- Shareholding:
533,728 A shares and 171,031
B shares
- Legal and human resources
functions
- Joined Evli in 2001
- Shareholding:
60,000 A shares and 19,108
B shares
- Execution and Operations
unit
- Joined Evli in 1997
- Shareholding:
59,691 A shares and 84,249
B shares
- Financial and Group
administration, Deputy CEO
- Joined Evli in 2004
- Shareholding:
68,000 A shares and 44,580
B shares
- Private clients
- Joined Evli in 2001
- Shareholding:
142,000 A shares and 35,500
B shares
- Institutional clients
- Joined Evli in 1995
- Shareholding:
12,331 A shares and 94,558
B shares
- Corporate Finance business
area
- Joined Evli in 2002
- Shareholding:
Holdings through controlled
company 80,000 B shares
ResponsibilityBusiness Overview Responsibility Financial ReviewBusiness Overview Governance
Evli Plc | Aleksanterinkatu 19 | P.O. Box 1081| FI-00101 Helsinki, Finland | Tel. +358 (0)9 476 690| evli.com
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