WE SEE WEALTH
AS AN ENGINE TO
DRIVE SUSTAINABLE
PROGRESS
ANNUAL REPORTEVLI PLC 2023
2
GovernanceResponsibility Financial ReviewBusiness Overview
Contents
Business Overview
Evli in brief ................................................................................................................ 4
CEO's review ........................................................................................................... 6
Highlights of 2023 ............................................................................................... 8
Business model ................................................................................................... 10
Megatrends and strategy ............................................................................. 11
Financial Review
Financial figures ................................................................................................ 55
Graphs of the financial development ................................................... 56
Board of Director’s report .......................................................................... 57
Shares and shareholders .......................................................................... 64
Information for shareholders and investors ................................. 68
Capital adequacy .............................................................................................. 69
Calculation of key ratios ............................................................................... 70
Financial statement 1.1.-31.12.2023 ..................................................... 71
Board of Director’s proposal to the General
Meeting for profit distribution ............................................................... 134
Auditor’s Report .............................................................................................. 135
Corporate Responsibility
Wealth and responsibility drive positive change together ..... 18
Responsible products and services ..................................................... 22
Responsible governance .............................................................................. 32
Responsible employer ................................................................................... 35
Reporting practices ........................................................................................ 39
GRI content index .............................................................................................. 41
Annex: Task Force on Climate-related
Financial Disclosures report ..................................................................... 46
Governance
Corporate Governance Statement 2023 ....................................... 139
Remuneration Policy ..................................................................................... 147
Remuneration Report 2023 .................................................................... 150
Board of Directors ......................................................................................... 154
Executive Group .............................................................................................. 155
Independent Auditor’s Report on Evli Oyj’s ESEF-Consolidated
Financial Statements .................................................................................... 156
3
BUSINESS OVERVIEW
GovernanceResponsibility Financial ReviewBusiness OverviewBusiness Overview
4
GovernanceResponsibility Financial ReviewBusiness OverviewBusiness Overview
On the way to become the
leading wealth manager in
the Nordics
We see wealth as an engine to drive sustainable 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 best fund house in the Nordics
1
and the leading asset manager in Finland
2
offering a broad range
of services including mutual funds, asset management, and capital markets services, alternative investment
products, equity research, share plan design and administration as well as Corporate Finance services.
Responsible investing is integrated in every investment decision and Evli’s expertise is widely acknowledged
by clients. Evli has Finland's best expertise in responsible investment
3
.
Read more at evli.com
Founded in
Employees
Sales in
15
3rd largest
EUR 18.0
billion
2015
Listed on the Nasdaq
Helsinki main list since
Assets under management
countries through own offices
and co-operation partners
Fund management company
in Finland
1
Lipper Fund Awards 2023, kategoria Small Fund Companies.
2
Morningstar Awards 2023 (c). Morningstar, Inc. All Rights Reserved. Awarded to Evli for the Best Fund House in Finland.
Kantar Prospera External Asset Management 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2021, 2022, 2023 Finland. Kantar Prospera Private
Banking 2019, 2020 Finland.
3
SFR Scandinavian Financial Research Institutional Investment Services Finland 2017, 2019, 2021, 2022; Kantar Prospera External Asset
Management 2017, 2018, 2019, 2020, 2023 Finland.
1985
~300
Evli in brief
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GovernanceResponsibility Financial ReviewBusiness OverviewBusiness Overview
Branding reflects Evli’s competitive advantage
in different markets
Finland and Sweden
Comprehensive Wealth Management and
Investment Banking services for private
persons, corporations, and institutions
Internationally
Nordic fund management boutique for
institutional investors
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.
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.
Evli’s operations are divided into
two client segments
Sales through co-operation partner
Sales through Evli
Finland Sweden
Norway
Denmark
Netherlands
France
Spain
Portugal
Italy
Estonia
Lithuania
Latvia
Germany
Luxembourg
Austria
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GovernanceResponsibility Financial ReviewBusiness OverviewBusiness Overview
Strong performance in
a challenging environment
Inflation, fast-rising interest rates, continued geopolitical unrest, and generative AI
characterized 2023. Evli performed strongly in this challenging environment and is
now well-equipped for our next growth phase.
CEO’s review
2023 was the year of racing inflation and fast-rising interest rates,
straining life for families and businesses alike. Towards the end of the
year, the stubborn inflation that has plagued much of the world since
2021, showed signs of easing and the European Central Bank ended
its run of 10 consecutive interest rate hikes since July 2022. Still,
core inflation remained above the 2 percent target, and thus interest
rates are expected to remain elevated for some time before hopefully
converging together with inflation to a healthy and sustainable level.
Younger generations, who only have experience of a world with low or
even zero-level interest rates, have had to adapt to a new reality. For the
rest of us, it’s a return to an old reality.
It’s not necessarily a bad one. A world with no price on money easily
becomes a world of excesses, increasing the risk for bubbles. While the
move away from a zero-interest rate world has undeniably been painful,
it has also presented interesting investment opportunities, offering
healthy returns with moderate risk.
Despite warnings of hard landings throughout the year, the US economy
held up remarkably well. Economic activity in the EU was more sluggish
and will most likely remain so well into 2024.
Growth in a new rate environment
Evli's revenue and operating profit developed strongly during 2023. The
net revenue for 2023 was EUR 108.7 million (2022: EUR 96.1 million) and
the operating profit was EUR 40.2 million (EUR 30.9 million), largely driven
by increased fund fees. Return on equity was 22.8 percent (20.4%) with
the ratio of recurring revenue to operating costs being 130 percent
(123%).
The mutual fund capital, including alternative investment products, grew
to approximately EUR 12.6 billion during the year and clients’ assets
under management rose to EUR 18.0 billion (EUR 16.0 billion).
Our remuneration services, Evli Alexander Incentive (EAI), continued its
uninterrupted growth trajectory of 10 years: revenue increased to EUR
12.2 million (EUR 10.2 million). Incentive compensation gives employees
a chance to increase their financial wellbeing, benefiting society as a
whole, and I am hence pleased to see that our clients are increasingly
interested in broadening their remuneration programs. In 2023 EAI also
won new clients in Sweden, where we are expecting further growth in
the coming years.
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GovernanceResponsibility Financial ReviewBusiness OverviewBusiness Overview
The year was not without its challenges. A trend of lower valuations
combined with higher interest rates led to a slowdown in M&A activity
and lower trading volumes, resulting in lower commission income for our
Corporate Finance unit and brokerage activities.
Evli’s international sales, accounting for 19 percent of Evli’s total fund
capital, faced unexpected headwinds in the early part of the year, but
towards the end of the year there were signs of recovery.
After a period of strong interest in alternative funds, the higher interest
rate levels together with inflation made investors more cautious towards
the end of the year. Still, subscriptions and investment commitments
to our alternative investment funds remained at a satisfactory level.
In 2023, Evli launched the Evli Impact Forest Fund II, which collected
subscriptions totaling approximately EUR 19 million in investment
commitments at first closing. In total Evli’s Alternative Investment funds
collected subscriptions totaling EUR 225 million (EUR 500 million) in 2023.
Responsible investing for real-world change
During 2023, the discussion on ESG1 regrettably became increasingly
polarized. A nuanced discussion aiming to increase overall understanding
is more helpful when we are to tackle the multi-faceted, complex
challenges the world is facing in climate change and nature loss.
These issues are systemic in nature and hence lack straightforward
solutions. Yet, we humans tend to simplify things to be able to make
sense of them. But simplifying very complex challenges rarely leads to
any common-sense solutions solving real world problems.
ESG is not about right or wrong, black or white. It’s a framework, and
a very necessary one, to help us measure, categorize, prioritize and
improve. To do this, we need data and some form of taxonomy. Yet, the
world is far too complex to be captured solely in data and taxonomy.
These need to be complemented with a common-sense analysis, where
we focus on the whole rather than on selected parts.
Only then can we arrive at what we at Evli call ‘responsible investing’.
In 2023, we updated our strategy and identified measures to help us
grow substantially to become one of the leading wealth management
firms in the Nordics. Encouraged by our proven track record of
successful integration of acquired companies, we continue to carefully
ponder future acquisitions.
During the year we intensified our operations in Sweden, especially when
it comes to funds and remuneration programs. According to the updated
strategy, we will continue to develop our operations in Sweden, but also
develop our product offering and make sure we remain an attractive
employer in the future. Engaging younger generations and creating a
diverse working environment is crucial.
2023 was the year when generative AI made a decisive breakthrough,
and we have explored AI’s possibilities in investment activities as well
as taken new tools into use to make our everyday work more efficient.
Yet, the human element, be it in making investment decisions or client
interaction, will be more important than ever in a turbulent world.
With the accumulated wealth growing in the Nordic countries due to
entrepreneurial activity and generational transfer of family assets,
I strongly believe that the need for a trusted advisor that can pilot
clients towards their objectives, with the foresight the world needs, will
increase.
Despite big global challenges, I remain an optimist. The financial
resources to tackle these challenges have never been more plentiful.
As wealth managers we play an important role in making sure that this
capital is allocated wisely.
I want to thank clients, shareholders, and my colleagues at Evli and look
forward to continuing our journey together!
1
ESG stands for Environmental, Social and Governance
At Evli, we see responsible investing as an integral part of the risk
analysis needed in any kind investment activity. Failing to consider
sustainability issues when making investment decisions will compromise
long-term value creation.
The key is long-term. While our job as wealth managers is to safeguard
our clients from the impact of climate risk, we are also operating on the
mandate to manage clients’ wealth according to their objectives and
investment horizons.
Endeavors aiming at decarbonizing the world are typically capital-
intensive and tend to come with longer investment horizons. These
features have temporarily reshuffled some investors’ priorities.
Still, climate change is not going away and it’s clear that radical
measures are needed. Necessary actions entail financing new
endeavors that ultimately help us decarbonize, but the responsible
investor should not categorically shun high-emitting companies either.
It is within these companies that the potential for change is the greatest.
Active involvement, calling for clear road maps to diversify business
portfolios, drives change more efficiently than categorical exclusion.
Evli remains committed to making real-world change happen. During the
year, we signed the investor statement on the European Sustainability
Reporting Standards (ESRS). We also continued our joint research
project together with UNICEF Finland to explore investors’ role in
promoting child rights. In addition, Evli submitted its interim targets to
Net Zero Asset Managers initiative and joined the global Nature Action
100 investor engagement initiative.
Geared for international growth
Diversification will be increasingly important in a tumultuous and
uncertain world. We continued to broaden our offering and signed an
agreement in November 2023 to acquire 67 percent of Zenito Oy. The
Finnish investment service company has an impressive portfolio of funds
that are among the best in their international asset classes, including the
only precious metal mining fund in Finland.
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GovernanceResponsibility Financial ReviewBusiness OverviewBusiness Overview
Highlights for 2023
03/2023
Morningstar awarded Evli as the best
fund house in Finland
Morningstar, a fund research firm, awarded Evli Fund
Management Company as the best fund house in
Finland in its annual Morningstar Awards comparison.
Evli Fund Management Company was also ranked in the
top three in the Best Fixed Income Manager category.
In addition, the Evli Global B Fund was among the top
three in the Global Equities category.
Read more: evli.com
05/2023
Evli and HJK continued cooperation to
support football for young people
The collaboration between Evli and HJK to support
children and young people in football was continued
in 2023. The aim of the collaboration was to provide
all children and youth the opportunity to play
football, regardless of family background, financial
situation, physical disability or other factors.
Read more: evli.com
05/2023
Evli was chosen as the best Nordic
fund house in the Lipper Fund Awards
The Lipper Fund Awards chose Evli Fund
Management Company as the best Nordic fund
house in the category Small Fund Companies. In
addition, Evli's funds again achieved the top spot
both at the European level and in major European
countries.
Read more: evli.com
03/2023
Evli joined to support Team Rynkeby’s
God Morgon charity bike ride
Evli joined as one of the sponsors of the Finnish
Team Rynkeby – God Morgon cycling team. The
Team Rynkeby – God Morgon Finland is part of a
European charity cycling team in which local teams
from different countries bike to Paris every year to
raise money for seriously ill children.
Read more: evli.com
08/2023
Partnership between Evli and John
Nurminen Foundation to protect the
Baltic Sea continued
Evli continued for a third year as a key partner of
the John Nurminen Foundation. The Foundation
aims to improve the state of the Baltic Sea through
projects that deliver measurable results. Another
mission of the Foundation is to safeguard the marine
cultural heritage.
Read more: evli.com
06/2023
Institutional investors ranked Evli the
best asset manager in Finland
Evli was again ranked as “the Best Institutional Asset Manager”
among 11 asset management companies, in the Kantar
Prospera "External Asset Management Finland 2023" -survey.
In addition to this, Evli was placed first overall in sustainable
investments expertise.
Read more: evli.com
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GovernanceResponsibility Financial ReviewBusiness OverviewBusiness Overview
09/2023
Evli joined the Nature Action 100
initiative to prevent nature loss
Evli joined the Nature Action 100, a global investor-led initiative, which focuses on
driving greater corporate ambition and action to reduce nature loss. The initiative
engages with 100 companies in key sectors that are deemed to be systemically
important regarding nature and biodiversity loss.
Read more: evli.com
10/2023
Head of Institutional Clients Mona
von Weissenberg was appointed
member of Evli's Executive Group
M.Sc. (Econ.) Mona von Weissenberg was
appointed as a member of Evli’s Executive Group
as of October 1, 2023. Von Weissenberg joined
Evli at the end of 2022 following the merger of
EAB Group Plc and Evli.
Read more: evli.com
11/2023
Evli reached again top positions in the
SFR institutional client survey
Evli was awarded the ”Silver Award” in the
”Institutional Investment Services Finland 2023”
survey conducted by SFR Scandinavian Financial
Research. Evli strengthened its market position as
the leading institutional asset management house.
Evli had highest market share as well as was the
most used institutional asset manager in Finland.
Read more: evli.com
11/2023
Evli expands its fund offering by
acquiring the majority of Zenito Oy
Evli announced the acquisition of a majority stake in
a Finnish investment services company Zenito Oy,
whose specialized and active investment strategies
have produced top results in their comparison
groups.
Read more: evli.com
11/2023
Evli continued the study on taking
child rights into account in investment
activities
Evli continued the research project started with
UNICEF Finland in autumn 2022 to find out how
Finnish companies take child rights into account in
their activities. In the project, Evli explores which
industries have risks that may affect child rights
and how child rights could be better considered in
investment decisions.
Read more: evli.com
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Added value with stable earnings development
BUSINESS PROCESSESBUSINESS AREAS
ADDED VALUE AND IMPACTSRESOURCES
STRATEGY
More information on
pages 11-15
VALUES
Entrepreneurship, Valuable
relationships, Learning, and Integrity
CLIENTS
- Products and services that
correspond to clients’ needs
and goals
- Opportunity to tailor service
solutions
- Professional and competent
service
- Responsible investments
PERSONNEL
- Over 300 investment specialists
- Salary and bonuses EUR 36.0
million
- Pension expenses EUR 5.0 million
OWNERS AND INVESTORS
- Dividend proposal EUR 1.16/share
- Equity/share EUR 5.02
- Stable development
- Responsible investment
SOCIETY AND ENVIRONMENT
- Investments EUR 1.0 million
- Paid taxes EUR 8.2 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
- 7 offices: Helsinki, Lahti, Oulu,
Tampere, Turku, Vaasa, 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 344.7 million
- Equity EUR 137.2 million
- Assets under Management
EUR 18.0 billion
- Net revenue EUR 108.7 million
PROCESSES
- Product development
- Sales processes
- Utilization of automation,
artificial intelligence and
robotization
- Personnel management
Our ambition is to be the leading wealth
manager and a responsible, proactive
capital allocator in the Nordic region.
Business model
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GovernanceResponsibility Financial ReviewBusiness OverviewBusiness Overview
Megatrends and
strategy
MEGATRENDS
We’re living in a time of great upheaval and change
The world is changing due to digital transformation, polarization, financial markets behaving abnormally, and
geopolitical unrest. A new generation is stepping into positions within boards and in leadership positions, looking
at the world differently and prioritizing different issues than their predecessors.
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.
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.
We need to think broader to get further.
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.
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.
SHORT-TERM LONG-TERM
Climate change
Sharply risen interest rates and inflation that has remained clearly above the
central banks' targets are slowing down growth and economic prospects.
The Russian invasion of Ukraine and the unrest in the Middle East as well as increased
confrontation between the great powers are increasing uncertainty in the markets.
Geopolitical unrest
Macroeconomic turmoil
Generation shift
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GovernanceResponsibility Financial ReviewBusiness OverviewBusiness Overview
We see wealth as an engine to drive progress
Evli see wealth as an engine to drive sustainable 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's offerings include mutual funds, asset management and capital markets services, alternative investment
products, equity research, share plan design and administration as well as Corporate Finance services.
Responsible investing is integrated in every investment decision and our expertise is widely acknowledged by our
clients.
We are in a vanguard position to steer capital sustainably in the Nordic region. We believe that wealth and
sustainability drive positive change together. Evli has the expertise, the vision, and the courage to initiate and
drive the discussion on the initiatives that long-term value creation enables both for individuals, society, and our
planet.
The Evli way of working
Over time, our founders’ entrepreneurial attitude, courage and curiosity evolved into a unique way of working
that fuels our work every day. Our way of working is deeply rooted in our four values: entrepreneurship,
valuable relationships, learning, and integrity.
- An entrepreneurial attitude gives everyone the freedom to act on opportunities.
- We foster good relations with each other and with our clients. 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 alongside
them.
- Constant learning means that we always strive to become better and are curious to explore new
opportunities.
- Integrity means for us that we stand behind our decisions and have the courage to say no.
Long-term growth and development
Evli's long-term goal is to be a growing and profitable asset manager with a unique customer base and a
broader international business. We want to be the forerunner in responsible wealth management in the Nordics,
and in this way help our clients in managing their wealth to support a sustainable future. The cornerstones of
our growth are finding and developing new investment solutions, leveraging digitalization, creating a unique client
experience, and integrating responsibility into business operations.
Evli’s constant pursuit is to create an even more scalable business model. Digitalization will play an important
role in this, as Evli streamlines its investment and brokerage processes. The service experience seamlessly
integrates traditional personal service with the use of electronic channels and digital services.
We aim to simplify both our own and our clients’ investment processes and offer unique product and service
solutions to our 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. In wealth
management, the company’s most important business area, 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.
Client’s interest always come first
Evli strives to create long-term client relationships. The company's client base is focused on institutional
investors, other professional operators as well as wealthy and affluent individuals.
”We want to be the forerunner in responsible
wealth management in the Nordics, and in this
way help our clients in managing their wealth
to support a sustainable future.”
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GovernanceResponsibility Financial ReviewBusiness OverviewBusiness Overview
To serve a demanding client base, Evli constantly invests in finding and developing new investment solutions. The
work towards development and innovation draws on both the strong expertise and specialized knowledge of
businesses and their different perspectives on markets and client needs.
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 well as our own assets. 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. We are our clients’ wise and savvy pilot that scans wide in
order to see far.
Responsibility is part of business operations
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 17-53.
Financial objectives
Evli’s strategy is guided by its long-term financial targets:
- Significant growth of AUM (EUR 30 billion) over the long-term
- EBIT margin of 30%
- High return on equity (25%)
- Recurring revenue ratio in excess of 130%.
“We are our clients’ wise and
savvy pilot that scans wide in
order to see far.”
14
Geopolitical
unrest
Macroeconomic
turmoil
Climate
change
Generation
shift
Entrepreneurship
- An entrepreneurial attitude gives everyone
the freedom to act on opportunities.
Client experience
New investment opportunities
Digitalisation
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.
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
Responsibility
VALUES STRATEGIC FOCUS AREAS TARGETS AMBITION
Our ambition is to be
the leading wealth manager
and a responsible, proactive
capital allocator in
the Nordic region.
Significant growth of AUM
(EUR 30 billion) over the
long-term
EBIT margin of 30%
High return on equity
(25%)
Recurring revenue ratio in
excess of 130%
GovernanceResponsibility Financial ReviewBusiness OverviewBusiness Overview
Evli's strategy
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GovernanceResponsibility Financial ReviewBusiness OverviewBusiness Overview
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
OUTCOME 2023
CLIENT EXPERIENCE
- Total assets under management of EUR 18.0 billion (2022: EUR 16.0 billion)
- International assets under management EUR 2.4 billion (2022: EUR 2.2 billion)
- Evli has been ranked in top positions in Kantar Prospera’s survey for over 10
consecutive years in terms of overall quality: the first in seven years and the
second in four years
1
NEW INVESTMENT OPPORTUNITIES
- Assets under management in mutual funds EUR 9.9 billion (2022: EUR 8.6 billion)
and in alternative investment funds EUR 2.7 billion (2022: EUR 2.4 billion)
- New mutual fund Evli Impact Equity
- New alternative investment funds Evli Impact Forest Fund II and Evli Private
Debt II
RESPONSIBILITY
- Stronger climate commitment & biodiversity work: launching the biodiversity
roadmap, updating the Climate Change Principles, and publishing
intermediate targets in relation to the Net Zero Asset Managers initiative
- Continuing the study with UNICEF Finland on how investors and asset
managers can promote child rights
- Systematic engaging with companies independently and together with other
investors
- Evli was awarded for Finland’s best expertise in responsible investment
2
DIGITALISATION
- Developing processes, systems and offering using artificial intelligence
- Launching new features in the My Evli online service
- Launching new system for client communication
CLIENT EXPERIENCE
- Deepen the presence in chosen markets
- Strengthen the presence in Sweden
- Expand the customer base
- Stay the best and most used asset manager in Finland
NEW INVESTMENT OPPORTUNITIES
- Launch 1-2 new traditional mutual funds
- Launch 1-2 new alternative investment funds
RESPONSIBILITY
- Continue work on climate change, biodiversity, and human
rights
- Continue ESG integration, through among others internal
ESG training and the development of data capabilities and
reporting
- Further improve the diversity of personnel
DIGITALISATION
- Develop internal processes using artificial intelligence
- Promote process development to support the strategic focus
areas
- Finalize the process for becoming a client
- Develop new functionalities for the My Evli online service
TARGETS 2024
1
Kantar Prospera External Asset Management 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022 Finland
2
Kantar Prospera External Asset Management 2017, 2018, 2019, 2020, 2023 Finland
CASE
Revolution ahead: AI impacts on economy,
earnings & market trends
When ChatGPT, a chatbot based on large language models, was launched in November
2022, it garnered 100 million users in less than two months. Following in ChatGPT's
footsteps, similar software applications were introduced also by Google and Meta in
2023.
Prior to this, AI had primarily been a tool harnessed by major tech giants, often referred to as the “Magnificent 7”
– the seven largest US companies. By 2023, AI technology became accessible to both the general public and
smaller enterprises.
Despite these advancements, investors remained relatively cautious, often comparing the rise of AI to other
recent hypes like SPACs and cryptocurrencies.
“However, AI is more than just a passing trend. It has the potential to revolutionize the way we work and
significantly boost economic growth,” says Peter Lindahl, Head of Systematic Funds at Evli.
Impact of AI on the economy
The potential of AI to boost economic growth is significant, evoking memories of the productivity surge that
the ICT revolution ignited nearly three decades ago. Capital Economics points out that from 1995 to 2005,
technologies such as the Internet increased US productivity by 1.5 percent annually. According to both Capital
Economics and Goldman Sachs, the influence of AI might achieve similar heights in the upcoming years.
“The magnitude of this impact will however vary across countries and industries. Countries where innovation is
robust and where companies actively invest in research and development are poised to emerge as frontrunners.
Presently, the US appears to be the evident leader in this domain,” states Lindahl.
Investment opportunities
Naturally, AI presents investment opportunities. Investors should distinguish between the AI hype and genuine
investment ideas. While many AI-centric firms have risen in value, technology companies' growth outlook has
concurrently been revised positively. For example, Goldman Sachs predicts that potential earnings for software
firms could rise by 46% from current baseline levels, driven by AI.
“At present, the most promising AI investment opportunities are in US growth companies, predominantly within
the tech sector. As AI evolves, opportunities will diversify across sectors and countries,” says Lindahl.
The early beneficiaries of this technological wave are semiconductor and cloud companies. As previously noted,
the software sector is also poised to lead in the development of AI products and solutions for both businesses
and consumers.
However, there remains a looming risk of an investment bubble on the horizon. A recent report from Goldman
Sachs, though, shows that the tech sector's valuations are currently far from bubble territory.
AI trends
Most AI-related innovation, R&D, and investments are concentrated in the US. In the long run, many global
companies will benefit from AI, with varying degrees of impact.
“US growth stocks have excelled in 2023, even with rising bond yields, which usually challenge such companies.
However, a specific subset of growth stocks, the unprofitable ones, has been impacted by higher interest rates.
In contrast, many profitable growth firms are capitalizing on the AI trend,” states Lindahl.
“AI is likely to influence markets for an extended period, bolstered by an improved economic and earnings
growth outlook. Therefore, at least for the present, AI emerges as an investment theme that seems somewhat
insulated from the effects of rising interest rates and a potential economic downturn.”
16
GovernanceResponsibility Financial ReviewBusiness OverviewBusiness Overview
17
RESPONSIBILITY
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
At Evli, responsibility has been an integral part of business for years and we are actively developing
responsibility in our operations. Responsibility is also one of Evli's strategic focus areas. Evli has been
awarded several years for the best expertise in responsible investment in Finland
1
.
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. When we help individuals and companies prosper
in the long-term, we create progress also on a larger scale.
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.
Wealth and responsibility drive
positive change together
1
SFR Scandinavian Financial Research Institutional Investment Services Finland 2017, 2021, 2022; Kantar Prospera External Asset Man-
agement 2017, 2018, 2019, 2020, 2023 Finland
18
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
Responsibility
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.
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
19
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
Responsibility report based on stakeholders’ expectations
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 2020, the material topics were reassessed to ensure
that these remain relevant and properly grouped. Based on 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. In 2023, no changes were
made to the analysis.
The materiality analysis has taken into account the importance of the issues raised for stakeholders and for
Evli’s business. The more detailed grouping also takes 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 recognized, among others, that in improving responsibility and
regarding 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
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 prioritized 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 them.
STAKEHOLDERS STAKEHOLDER’S EXPECTATIONS CHANNELS EVLI’S ACTIONS IN 2023
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
- One new Article 9 UCITS fund and two new alternative investment funds were launched
- The climate commitment was reinforced providing more specific milestones for 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 for 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
- Coaching was offered to management and employees on the theme of creating quality communication and encounters
- 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 updated its strategy
- 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
- Universities' activities were supported
- Summer employments and the trainee program were developed
- Continued support for sports and cultural activities and environmental actions.
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GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
Focus areas in Evli’s responsible operations in 2023
In 2023, 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.
21
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
Responsible business supports
the company’s value creation
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
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 well as our own assets. 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 such products and services that fit their needs and goals and to ensure that
clients truly understand the product or service they are buying.
Transparent products and services that promote clients’ needs improve client satisfaction. Evli measures
client satisfaction. monitors clients' opinions by collecting feedback from them. 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.
Responsible products
and services
22
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
23
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
Results and priorities for 2023
- In Kantar Prospera’s ”External Asset Management Finland 2023” survey, Evli was ranked “the Best
Institutional Asset Manager” among 11 asset management companies. Evli has been leading the Kantar
Prospera survey for over 10 years, based on the overall quality assessment. Evli was also the most used
institutional asset manager in Finland for seventh year in a row.
1
- In the SFR institutional client survey, Evli was awarded the ”Silver Award” for excellence in asset management
and mutual fund services in 2023. Based on the overall quality, Evli was ranked third in the survey. In addition,
Evli clearly strengthened its market position as the leading institutional asset management house. More than
72 percent of the respondents use Evli’s institutional asset management and mutual fund services.
2
Customer data protection as a basis for trust
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 2023
- Evli invested particularly in data protection by reviewing internal practices with an external partner.
- New employees joining Evli were trained in Evli's data protection and digital security.
1
Kantar Prospera External Asset Management 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023 Finland
2
SFR Institutional Asset Management 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023
At Evli, we believe that taking responsibility issues into account in investment decisions, alongside the analysis
of key financial figures, increases understanding of the investment target and the risks and opportunities
associated with it.
Responsible investment is integrated into investment activities and reporting
At Evli, responsibility factors have been integrated into the investment activities of Wealth Management,
which means that responsibility is systematically considered in portfolio management. In practice, for listed
investments this is done through an internal ESG
1
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 ESG database provides portfolio managers with easy access to companies’ ESG
data when making equity and fixed income investments. For example, portfolio managers can search for
companies’ responsibility assessments (the so-called ESG scores), information on the share of revenue
generated by controversial activities and any ESG violations, as well as information on companies’ emissions
and 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 its equity and
corporate bond funds, allowing anyone to monitor the responsibility of Evli’s investments. In addition to ESG
and UN Global Compact analyses, the ESG reports show the development of the investment’s ESG ratings
as well as the investment’s reputational risk, carbon footprint, and company specific ESG data for the ten
largest holdings. Furthermore, Evli reports on a semi-annual basis the responsibility of its clients’ equity and
corporate bond investments in separate client-specific responsibility reports.
Responsible
investment at Evli
1
ESG stands for Environmental, Social and Governance.
24
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
An investment specific ESG analysis is part of all investments, including those for alternative investment
funds. In the Evli Private Equity, Evli Infrastructure and Evli Private Debt funds, each new target fund is
analyzed against the same ESG criteria, and investments are only made in funds that meet the criteria. The
funds are also analyzed according to the same criteria during the investment period, and the ESG analysis
data is transparently available to investors. Similarly, in Evli’s growth company funds, 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.
With its real estate funds, Evli works in a socially responsible manner and demands the same from its
partners. In addition, through concrete measures Evli is able to influence the energy efficiency of buildings
and the construction’s carbon footprint. Evli’s forestry funds identify ESG risks and opportunities in their
target funds as well as measure and report on the carbon impact of the funds annually. The funds invest
in sustainable commercial forestry that produce renewable, environmentally friendly products for a range
of end uses. Sustainable forest management is ensured through third-party forest certification schemes,
such as FSC and PEFC.
Four Pillars of Responsible Investing at Evli
Principles for
Responsible Investment
- Policies by asset
classes
- Separate Climate
Change Principles and
engagement policy
- Climate Target and
Biodiversity Roadmap
for taking biodiversity
into account
- Internal division of
responsibilities and
governance model
ESG
-integration in
investment process
- Responsibility
analysis as part of
the investment
decision-making
- Asset class-specific
responsibility
expertise
- Responsible
investment team as
support for portfolio
managers
Engagement and active
ownership
- Independent
discussions with
companies
- Collaborative
engagement and
investor initiatives
- Asset class-specific
engagement and
active ownership
Reporting
- Comprehensive and
transparent reporting
at fund and client
level
- Responsible
Investment Annual
Report overviews
annually progress
in responsible
investing
25
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
More responsible practices through engagement
Evli analyses its actively managed equity and corporate bond funds and the direct investments made by
Wealth Management 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 informs 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 responsibility and the application of legislation to international business.
Information on non-compliance is available from the MSCI and ISS ESG databases and other sources such as
news reports.
Each case of non-compliance and violation of the Climate Change Principles triggers a pre-defined process at
Evli. First, the case is discussed with the portfolio manager, after which Evli’s Responsible Investment (RI) team
analyses the company’s situation. The RI team has two options for further action:
1. Initiate measures of engagement
2. Exclude the investment.
The cases calling for engagement that have come to light in the quarterly inspections mostly concern
environmental problems, human rights, workers’ rights, or actions to mitigate climate change. Evli does not
disclose the names of the companies with which it engages, as it believes that engagement with the company in
a confidential manner is more effective.
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. Responsibility is also systematically raised with the companies and partners of the alternative
investment funds taking into consideration asset class-specific differences and best practices.
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GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
Kun suuriin kielimalleihin perustuva ChatGPT lanseerattiin marraskuussa 2022, se sai
sata miljoonaa käyttäjää alle kahdessa kuukaudessa. ChatGPT:n vanavedessä omia
ohjelmistojaan julkaisivat vuonna 2023 myös Google ja Meta.
Aiemmin tekoälyä hyödynsivät etenkin teknologiajättiläisten “seitsemän mahtavaa” eli Yhdysvaltain seitsemän
suurinta yritystä. Vuonna 2023 tekoälyteknologia tuli myös laajan yleisön ja pienempien yritysten saataville.
Näistä kehityskuluista huolimatta sijoittajat pitivät malttinsa. Tekoälyn nousua verrattiin muihin viime vuosien
hypeihin, kuten SPACeihin ja kryptovaluuttoihin.
”Tekoäly on kuitenkin paljon muuta kuin ohimenevä trendi. Sillä on mahdollisuus mullistaa työnteko ja piristää
talouskasvua merkittävästi”, sanoo Peter Lindahl, joka työskentelee Evlin allokaatiotiimin puheenjohtajana ja Evlin
systemaattisten rahastojen johtajana.
Tekoälyn vaikutus talouteen
Tekoäly saattaa vauhdittaa talouskasvua tuntuvasti. Sen mahdollisuudet tuovat mieleen ICT-vallankumouksen
käynnistämän tuottavuuskasvun lähes 30 vuotta sitten. Capital Economics kertoo, että internetin kaltaiset
teknologiat kasvattivat Yhdysvaltojen tuottavuutta 1,5 prosenttia vuosina 1995–2005. Tekoälyllä voi olla
samanlainen vaikutus tuottavuuteen tulevina vuosina, arvioivat Capital Economics ja Goldman Sachs.
”Vaikutusten laajuus vaihtelee kuitenkin maittain ja toimialoittain. Todennäköisiä edelläkävijöitä ovat maat, joissa
innovoidaan paljon ja joissa yritykset panostavat tutkimus- ja kehitystyöhön. Tällä hetkellä Yhdysvallat on
selkeässä johtoasemassa”, Lindahl kertoo.
Sijoitusmahdollisuudet
Tekoäly tarjoaa myös sijoitusmahdollisuuksia. Sijoittajien pitäisi kuitenkin pystyä löytämään aidot sijoitusideat
tekoälyhypen keskeltä. Monet tekoälyyn keskittyvät yritykset ovat kasvattaneet arvoaan, mutta myös
27
CASE
What is an investor's role in combating
climate change and biodiversity loss?
Climate change and biodiversity loss are a systemic risk, and its management is
resource intensive. Investments can change the world for the better.
We know that the climate is warming and biodiversity is declining, but what are we going to do about it?
According to Mikko Spolander, Director General of the Economics Department at the Ministry of Finance,
continuing the current way of consuming the planet's resources will become impossible before long, but a
radical cut in our living standards is not realistic either.
The global average temperature increase might be stopped by reducing our living standards or by developing
and introducing more efficient and cleaner technologies.
“We should make such drastic reductions in our living standards over the coming decades that I don't think it's
possible. Adaptation to such changes is comparable to a situation where our living standards in Finland would fall
to the level of early 1950s by 2050,” Spolander comments in light of his calculations.
Therefore, Spolander puts his faith in technology and in the production and consumption based on more
sustainable clean energy and recycling of materials, all generated by technology. Technology and industrial
restructuring require innovation and fresh solutions which, in turn, open the door to the redistribution of
markets and new success stories.
The change will require significant investments by the public as well as the private sector, and at least in the
beginning we have to compromise on other aspects for their sake. However, according to Spolander, Finland
cannot afford to be a bystander as then we would be unable to offer solutions to global markets and our
competitiveness would be undermined.
Economic value of nature must be made visible
The megatrends report of Sitra, published in early 2023, highlights the erosion of nature’s carrying capacity
as a key challenge of our time and emphasizes that the slower we change our ways, the worse the impacts of
biodiversity loss will become.
“Biodiversity loss presents a systemic risk to the financial markets, too,” reminds Outi Haanperä, project director
of Sitra’s Nature and the economy project.
More and more individuals, companies and public operators are aware of the risks and impacts of biodiversity
loss but carry on living as before. According to Haanperä, change is only achieved by making the economic value
of nature visible in decision-making. She gives forests and wood as an example.
“We recognize very well the value of wood as a raw material and know the price of logs per cubic meter and the
forest industry’s share in exports. But forests provide a huge number of other benefits as well.”
Trees sequester carbon, cool down and control local climate, promote biodiversity, contribute to human
wellbeing, and prevent erosion. These important services are not visible, however, in our current way of valuing
nature.
Haanperä says that the economic value of biodiversity can be better showcased by pricing nature risks in
financial markets and putting a price on burdening nature. Mechanisms included in the latter are, for example,
sustainable growth tax reform and introduction of ecological compensations. In addition, Haanperä believes
there is room for innovative investment products in the markets.
Change is also an opportunity
Investments are not only an interesting global question, but also a local one. Finland’s export potential of
climate-aligned solutions is significant: up to 85–100 billion dollars by 2035 according to Boston Consulting
Group’s estimate. In terms of export, climate-aligned construction, bio-based materials as well as green
hydrogen and green metals, for example, are interesting industries.
Spolander sees the consulting firm’s estimate as large, but he believes Finland is in a position to become a great
exporter – compared to its size – of climate-aligned and green knowledge and technology. The realization of
investment plans relating to green energy and industries in Finland would be significant for the economy too.
Government, companies, and investors alike will play a key role in the change.
Spolander and Haanperä were guest speakers at Evli’s internal ESG training days for portfolio management in
November 2023.
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
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Focus areas for responsible investing 2023
Results and priorities for 2023
- Evli launched a new ESG report for the Evli Euro Government Bond fund. The ESG report will be published once
a year, and it includes country-specific information on, for example, investments’ carbon footprint as well as
on the social and governance factors.
- In respect of the Sustainable Finance Disclosure Regulation (SFDR), Evli published the necessary information
on its funds that are disclosed before investing, in accordance with the regulation. As part of the annual
review of the funds, Evli published its periodic reports on how the sustainability characteristics of the equity
and fixed income funds were met during 2022, as required by the SFDR. The corresponding periodic report
was also published on alternative investment funds as well as on a portfolio-basis for asset management
clients.
- Evli reported on the company-level PAI
1
indicators and adverse sustainability impacts in accordance with the
regulation schedule at the end of June. Evli has also developed its monitoring and analysis process of the PAI
indicators.
- In May, Evli organized an ESG seminar where investors and experts discussed the most important responsible
investment themes. Incorporating biodiversity into investing took center stage in the keynote presentations
and the panel discussion.
- Trainings on the SFDR reporting and responsible investing were arranged for Evli’s personnel in the spring
of 2023. In November, Evli organized portfolio management’s ESG training days for over 50 people. The main
themes of the training days were climate, biodiversity, and children’s rights.
- Evli participated in general meetings of 27 companies and engaged 37 companies independently. The
general meetings were attended by voting in advance or attending physical meetings. Prior to the general
meetings, Evli engaged with eight companies in relation to good governance. Furthermore, Evli engaged with
19 companies in relation to climate targets and/or principles. In addition, ten engagement discussions and/
or emails were also related to changing a company’s operating practices, a suspected breach of norms,
environmental issues, social responsibility in companies’ subcontracting chains, for example, and developing
companies’ sustainability activities. Evli also participated in companies’ materiality analyses, discussed
sustainability themes with other stakeholders and actively participated in consultation discussion of the SFDR
with various actors. In addition to its independent engagement, Evli was involved in collaborative engagement
initiatives and/or investor letters, such as the Action 100+ initiative and the CDP investor letters.
- Related to the quarterly monitoring of norm violations, Evli excluded three companies from its investment
universe. Of the exclusions, one was due to a serious environmental controversy and two due to a serious
human rights violation. Evli’s Responsible Investment team also dealt with two companies on suspicion of
being related to nuclear weapons, and after the processing, both companies were excluded.
- Evli’s Climate Targets’ Working Committee continued its active work and set up smaller focus groups to
focus on various climate work aspects. As part of its work towards climate targets, the principles of climate
change and responsible investment were updated, especially in relation to exclusion and engagement. The
update resulted in four companies being moved to the list of excluded companies. The following points of the
principles were updated, for example:
- With thermal coal and oil sands, the revenue threshold for exclusion at Evli was set at 10 percent. In
accordance with the principles, it is accepted to depart from the exclusion if the company has a concrete
plan to change its procedures and/or the company supports Just transition.
1
Principal Adverse Impact, i.e. PAI indicators mean indicators that describe adverse impacts of investment decisions on sustainability factors.
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
29
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
- In addition to revenue restrictions, Evli does not finance new thermal coal-fired power plants, thermal coal
mines or oil sands projects that are in the planning or construction stages.
- In the summer of 2023, Evli submitted a more detailed interim target to the Net Zero Asset Managers (NZAM)
initiative. Evli’s equity and corporate bond funds are included in the first interim target. With other asset
classes, the work will be continued in accordance with Evli’s road map of climate targets. Furthermore, the
interim target consisted of three separate targets for investments, which are discussed in more detail on
page 52.
- In July, Evli signed, together with other investors, the investor statement on the European Sustainability
Reporting Standards (ESRS) of Eurosif, PRI, IIGCC, EFAMA and UNEP FI. The statement calls on the European
Commission to uphold the previously set policies of the ESRS reporting to address the current data gaps of
the European Union’s sustainable finance rules.
- In September 2023, Evli joined the global Nature Action 100 initiative, which focuses on driving necessary
corporate action to reverse nature loss.
- During 2023 Evli continued its research on biodiversity metrics regarding, for example, portfolio-specific
analyses and TNFD reporting framework development. In December, Evli published Evli Wealth Management’s
biodiversity roadmap which sets action steps for 2023–2025 to consider biodiversity. The purpose of the
roadmap is to gain a better understanding of the impact of investments on biodiversity, to promote Evli’s
biodiversity research and to develop biodiversity-related reporting.
- As part of its human rights work, Evli continued its joint research project it started together with UNICEF
Finland to find out how investors can advance the fulfilment of children’s rights. Evli was an expert in a
benchmark survey conducted by UNICEF Finland of Finnish companies as well as considered ways to
integrate children’s rights more broadly into responsible investment practices. In addition, Evli constructed an
extensive sector-specific, children’s rights analysis primarily from the point of view of Finnish companies. In
2023, the sector analysis was developed for two sectors; as for other sectors, the work will continue in 2024.
Evli was also interviewed about its work to promote children’s rights by UNICEF’s global Child-Lens Investing
Framework publication.
- Evli’s equity and fixed income funds were granted the ESG4Real certificate in the fall. ESG4Real is a non-
profit and politically independent certificate that provides a foundation for responsible investment and
analysis of ESG factors and provides independent quality assurance on how asset managers meet these
requirements.
- In December, Evli’s product range expanded with the Evli Impact Equity Fund that invests its assets mainly
in the developed and emerging markets’ equities without geographical restrictions. The fund invests in
companies that, based on a sustainability and impact analysis, are engaged in economic activities that are
considered to be materially sustainable and contribute to selected United Nations Sustainable Development
Goals (SDGs). The fund is an Article 9 fund, so the aim of investment activities is to make sustainable
investments in assets to contribute to positive, measurable social and environmental impact.
- In 2023, Evli’s alternative investment funds also systematically developed responsible investment practices.
Here are some examples of them:
- In the Evli Private Equity, Evli Infrastructure and Evli Private Debt funds, responsible investment work
continued with an ESG analysis of 13 new funds, and the fund managers were provided the results of the
previous year’s ESG survey, so that they get feedback on their performance, in relation to the peer group, in
various aspects of responsible investment. In addition, in the annual ESG assessment, more detailed bilateral
discussions with the low performers among the target fund managers on their development areas were
held. At the end of the year, the fund team also familiarized itself with the anti-ESG movement, which started
in the United States, and analyzed its possible effects on the US target funds and specified the ESG survey’s
questions related to climate and biodiversity.
- In 2023, the growth company fund, Evli Growth Partners I, continued its work on climate in terms the
calculation of carbon emissions and offsetting. In the Evli Growth Partners II fund, the calculation of carbon
emissions and offsetting was performed for the fund’s companies for the first time in 2023. For both funds,
for the first time, data on the PAI indicators was collected and companies’ capacity to check their business
partners and key employees for sanctions was examined. In addition, two out of the three new investments of
the Evli Growth Partners II fund drafted a responsibility policy. In the growth company funds, many portfolio
companies also updated their ESG policies, and three companies published an extensive public report on the
responsibility of their operations. For the new portfolio company, a sustainability analysis was made as part
of the due diligence process, and the findings will serve as the basis for the ESG policy and the company’s
targets for the coming year.
- In EAB Private Equity’s target companies, responsible investment activities were continued. Depending on
a company’s growth and holding period, an own responsibility policy and description on the integration of
responsibility into the companies’ business strategy was made or will be made. In the most recent investment,
an ESG assessment was carried out as part of the due diligence inspection. In one target company, tailored
30
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
ESG training was arranged for the Board of Directors and management. All target companies also received
one or more ISO certifications and published a whistleblowing channel. At the end of 2023, EAB Private Equity
and Evli Growth Partners arranged a workshop for their portfolio companies that covered preparation for
the CSRD directive and best practices and offered the participants an opportunity for peer learning and
networking.
- In 2023, in Evli’s real estate fund operations, operating models were combined, and new common responsible
activities were planned. In addition, it was decided to make the real estate funds’ first own responsibility
report, and one quarter of the funds participated in the global GRESB (Global Real Estate Sustainability
Benchmark). In properties owned by funds, several sustainability activities were carried out, such as energy
efficiency projects and energy audits, and energy certificates were renewed. Furthermore, real estate funds
engaged in active stakeholder engagement. The annual tenant satisfaction survey examined the tenants’
views on responsibility. Tenant events were organized in many properties to improve understanding of
responsible practices and of reducing environmental impact. As for suppliers, responsible operating models
were demanded and monitored.
- In 2023, the Evli Impact Forest Fund I developed an ESG survey and assessment of its investee funds
and assets. The questionnaire sought answers to issues related to the climate and biodiversity actions of
investee managers. In addition, in 2023 the new Evli Impact Forest Fund II was launched, which continues
its predecessor’s investment strategy and seeks to create a positive carbon impact. In both funds, the
performance fee received by Evli depends on the achievement of the stated carbon dioxide removal
targets.
- Evli’s responsible investment performed excellently in external evaluations, too. Evli was placed first overall
in sustainable investments expertise in Finland in the Kantar Prospera’s “External Asset Management
2023 Finland survey
1
. In the annual institutional investors’ SFR customer survey Evli was ranked second in
responsible investment expertise in Finland among large asset management companies
2
.
You can read more about Evli’s responsible investing and its development at evli.com. Evli also reports its climate
risks according to the guidelines of the Task Force on Climate-related Financial Disclosures (TCFD) reporting
framework. The 2023 TCFD report can be read on pages 46-53.
1
Kantar Prospera External Asset Management 2017, 2018, 2019, 2020, 2023 Finland
2
SFR Scandinavian Financial Research Institutional Investment Services Finland 2017, 2021, 2022
”We want to strengthen our position
as a forerunner in responsible wealth
management. We are committed to providing
our clients with innovative, responsible, and
impactful investment opportunities.”
31
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
CASE
Evli’s new equity fund promotes a low carbon, resource
efficient economy and human development
In late 2023, Evli launched a new Article 9 equity fund, Evli Impact Equity, which
responds to investors’ interest in investing to promote a low carbon, resource
efficient economy and human development.
The Evli Impact Equity fund invests its assets both in developed and emerging markets’ equities without
geographical restrictions. The fund focuses on companies operating in areas such as power generation,
renewables, environmental infrastructure, resource efficiency and reliability, provision of affordable and
accessible education, and health care.
Aiming a positive environmental and social impact
Evli Impact Equity is specialized in impact investing. Impact investing in listed equities is about investing in
companies that with their products, services, or technology or with significant turnaround of operations,
contribute to transition to low carbon, resource efficient economy and human development. Impact investing
also aims to generate competitive financial returns relative to broad stock market performance over the long
term.
Evli Impact Equity measures contribution to positive environmental and social impact with real indicators such
as renewable energy capacity added, energy savings, and life expectancy improved.
“Climate action urgency, regulatory pressure, technology advancement, and responsible consumption
preferences create huge investment opportunities. According to McKinsey estimates transition to net zero
emissions requires ca USD 9.2 trillion annual capital spending during 2022-2050¹. Many investors have set goals
to transit to global net zero emissions in 2050,” says Olga Marjasova, Fund Manager of the Evli Impact Equity.
“With the Evli Impact Equity fund we want to contribute to the transition to low carbon economy by investing in
companies whose products, technology and at times significant operation transition make achievement of net
zero emissions possible.”
Impact is integral part of fund investment process
Evli Impact Equity has defined an investment process on how to implement environmental and social impact
objectives with portfolio holdings. First, impact objectives are stated and company activities relevant to
contribute to objectives are screened. Then, quantitative and qualitative evaluation of impact potential and
investment case is done. The fund also engages with companies on impact management and measurement
as well as issues regarding environmental and social sustainability and good governance. The results will be
reported on an annual basis in the fund's allocation and impact report.
The Evli Impact Equity complements Evli's broad range of funds and strengthens Evli's position in sustainable
investing.
¹ McKinsey, The net-zero transition, What it would cost, what it could bring, January 2022
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
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.
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.
Responsible
governance
32
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
Results and priorities for 2023
- Evli Group’s net revenue increased by 13 percent compared to the previous year and was EUR 108.7 million
(1-12/2022: EUR 96.1 million). The rise was driven by the acquisition of EAB Group Plc, successful new sales,
and positively developed financial markets.
- During January-December, net subscriptions of EUR 0.5 billion were made to Evli’s traditional mutual funds
(EUR -1.2 billion).
- The sales and product development of the alternative investment products performed well considering the
market situation: in total, subscriptions and investment commitments to alternative investment products were
made to the value of approximately EUR 225 million during 2023 (nearly EUR 500 million).
- Evli’s international sales faced unexpected headwinds in the early part of the year, but towards the year-
end there were signs of recovery. At the end of December, EUR 2.4 billion of Evli’s fund capital came from
customers outside Finland (EUR 2.2 billion).
- In 2023, Evli updated its strategy and identified measures to help us grow substantially to become one of the
leading wealth management firms in the Nordics.
Taxes are paid in accordance with local legislation in each country of operation
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 2023
- Evli paid a total of EUR 8.2 million in taxes (2022: EUR 5.8 million).
Corruption, bribes, and money laundering not acceptable
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 analyzed 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.
33
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
Results and priorities for 2023
- No cases of corruption, bribery or money laundering were reported in Evli’s operations.
- Training events were mainly regarding prevention of money laundering and funding of terrorism.
Environmental impacts of Evli’s own operations
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, Evli 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 favoring 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 utilizing the opportunities given by technology, Evli offers new forms of services
that have a smaller environmental impact than before.
Results and priorities for 2023
- Evli continued the development of its digital channels (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 five percent higher than in the comparison period. The increase was mainly
due to expanded office space.
1
LEED=Leadership in Energy and Environmental Desig
34
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
As an employer, Evli is committed to creating responsible and high-quality work-life experiences for its
employees and job applicants. Responsibility and responsible working practices are based on Evli’s values:
entrepreneurship, valuable relationships, learning, and integrity. Fairness, which encompasses equality, non-
discrimination, and diversity, is an integral part of Evli’s responsibility.
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
characterized 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
At the end of 2023, the Evli Group had 354 employees, up by 2.9 percent on the previous year. Of the total
personnel, 94 percent worked in Finland, approximately five percent in Sweden and nearly one percent in the
United Arab Emirates.
The total number of new hires in 2023 was 29. The number of new employees does not include summer workers
and trainees. The average personnel turnover was 6.8 percent.
Responsible
employer
35
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
PERSONNEL DATA
2023 2022
2021
6
2020
6
Personnel
354 344 290 261
Permanent
316 294 251 233
Temporary
1
38 50 39 24
On study or parental leave
5 11 7 4
Full time
2
327 312 244 240
Part time
3
27 32 39 21
Women/men (%)
38/62 38/62 38/62 39/61
Average age
41 40 40 41
Average period of service (years)
8.33 7.97 9.3 10.5
Average personnel turnover (%)
4
6.8 8.3 10.0 8.0
New hires5
29 29 32 20
Sickness absences, days/person
3.0 2.2 1.8 1.2
Occupational accidents at work
4 1 0 0
Training days/person
3.0 1.0 1.3 1.0
Personnel covered by performance reviews (%)
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.
6 The figures for 2020-2021 are those of Evli Pankki Plc. Evli Plc was created by a partial demerger from Evli Bank Plc on April 2, 2022.
The figures in the table represent the situation on the last day of the year in question (31 December) and relate to persons employed by Evli.
In addition, at the end of 2023, Evli employed 7 people under consulting or similar contracts to complement its own staff.
Diversity and equal opportunities
Evli Group’s diversity is based on its values, ethical principles, and Human Resources Policy. 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. Diversity
is taken into account in all personnel management from hiring to career advancement and development. All
employees have equal opportunities to advance in their career.
Efficient diversity management and promotion of equality help improve work well-being, increase employee
commitment, and fulfil the employees’ competence potential. In addition, diversity increases innovation,
productivity, and the company’s competitiveness.
The diversity goals provide the guidelines for Evli’s diversity and equality work and set a target level for Evli
to achieve in promoting diversity across the organization. The diversity goals also define the guidelines for
increasing gender equality and, where possible, promoting the employment of people from different language
and ethnic groups in Finland. The diversity goals apply to all Evli’s functions, and progress on achieving these
goals is monitored annually.
One of the key elements of attaining the diversity goals is the recruitment process. All recruitment is based
on fairness, transparency, and equity. The aim is to ensure that all qualified applicants have an equal chance
of being selected. In addition to recruitment, equal treatment is ensured to all in the division of work tasks and
career advancement.
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 Board has a Diversity Policy, which includes the
principles of diversity.
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 actualization and development of diversity towards the
goals is evaluated in the annual self-evaluation discussion of the Board. Additional information about diversity of
the Board of Directors is found on page 141.
Results and priorities for 2023
- Evli's recruitment process was improved, and recruitment was further enhanced with a focus on diversity,
for example by cooperating with various stakeholders to make the investment industry more attractive to
women.
- In 2023, the trainees selected for the trainee program were of different genders. In all recruitment, the most
suitable person, regardless of gender, was always selected.
- Progress was made on improving the representation of the under-represented gender on the Board, and
currently two of the six members of the Board are women.
- In the autumn 2023, a second female member was appointed to Evli Group's six-member Executive Group.
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GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
- The long-term goal is gender balance in the organization.
- The minimum amount of under-represented gender in the Board shall be 40% by June 2026.
- The recruitment process will be further developed, and greater attention will be paid to diversity in
recruitment, for example by working more closely with stakeholders, including students, to make
the investment industry more attractive to women.
- In recruitment, the most suitable person for the position is always selected.
- We ensure that there are always candidates of different genders when filling leadership
positions.
- Both genders must be represented in the group of people selected for the trainee program.
Women
38%
23%
29%
33%
62%
77%
71%
67%
Men
EVLI’S DIVERSITY 2023
EVLI'S DIVERSITY GOALS
Employee well-being is taken care of
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. Evli also aims to provide its personnel with a good and
safe working environment that promotes well-being and job satisfaction for all.
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.
Employees also have the possibility to use sport, culture, and transport benefits, as well as an employee benefit
bike.
Evli’s age management model and the work capacity support model take into account physical, mental and social
work capacity. The age management model aims, among other things, to share skills and knowledge and to keep
work meaningful and motivating. Mental and physical well-being is also supported by providing employees with
the opportunity to participate in various sports and recreational activities.
Job satisfaction and well-being at work are measured by means of an employee survey and regular in-house
surveys. Based on the results, well-being at work and working practices are continuously developed.
Results and priorities for 2023
- Evli employees worked on a hybrid model combining remote and office work.
- Employees responded daily to a 'mood survey', which measured their daily wellbeing and their opinion on a
topic changing each month. The survey and its results and feedback were used to support managers in the
strategic development of leadership and well-being at work.
- Employees responded to a wider personnel survey conducted around every 18 months, the results of which
are used at the organization-wide level.
- A well-being day was offered to employees, during which they had the opportunity to participate in various
activities. In addition, employees had the opportunity to participate in golf training and competition and a
downhill skiing weekend.
37
ENTIRE PERSONNEL
344 persons
EXECUTIVE GROUP
7 persons
BOARD OF DIRECTORS
6 persons
49 persons
TEAM LEADERS
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
Continuous personnel development enables to increase competitiveness
Professional 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
clients innovative solutions that meet the market demand.
Training and skills development aim to increase staff motivation and job satisfaction. Evli’s internal training
program, Evli Academy, organizes events run by both internal and external trainers to develop the employees’
skills and to improve occupational health and well-being at work.
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.
Staff development and performance are supported by good leadership. Management’s task is to support and
encourage employees to succeed and to continuously develop their skills and common practices. To ensure
that our team leaders are highly skilled, regular training and meetings are organized to promote their personal
development. The leadership work is evaluated regularly based on external surveys.
Results and priorities for 2023
- The number of training days per person was around three. Training days mainly include internally organized
training.
- During the year, Evli organized around 50 different types of internal training and information sessions.
- A total of 12 persons transferred to new job tasks as part of job rotation.
- Coaching was offered to management and employees on the theme of creating quality communication and
encounters. In addition, regular team leader briefings were held throughout the year.
- Evli also used a reverse mentoring program, where both parties can gain new ideas and insights into the work
by sharing new or more in-depth knowledge and so-called ‘silent knowledge’.
Job stability and competitive pay
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 providing 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 strives to offer competitive salaries to ensure the retention of talented people and their interest in
Evli as an employer. The Evli Group's remuneration model is in place to promote the implementation of the
company's strategy, competitiveness, and long-term financial success. It also aims to contribute to the positive
development of shareholder value and to engage employees in a long-term commitment to the company's
objectives.
Evli’s recruitment activities emphasize finding people with the right qualities for the industry and who match
Evli’s corporate culture and are prepared to develop themselves to become future top experts at Evli. The
primary way to attract recent graduates or students close to graduation to work at Evli is through the
company's Trainee program. The goal of the 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 works closely with schools and subject organizations, and visits schools
to introduce students to the investment industry and Evli as a company. The purpose is to further increase
awareness of Evli among students.
Results and priorities for 2023
- Systematic work continued to improve employer branding and awareness of Evli. To strengthen the employer
image, for example, a more systematic use of social media channels and the improvement of Evli’s own
website continued as well as the cooperation with schools and subject organizations.
- The Trainee program was carried out around the year. During the year around 1,000 persons applied for the
Trainee program and from these nine persons were hired to Evli as trainees.
- Evli continued its cooperation with the Women’s Career Society to raise awareness of the financial sector
among female students.
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GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
Scope and structure of the report
As part of Evli's corporate responsibility report, the GRI report conducted complies with the Global Reporting
Initiative (GRI) where applicable. The report also includes information related to Evli's own significant
sustainability topics in accordance with the GRI standards' reporting principles. The GRI content index (pages
41–45) lists the GRI indicators used and provides information on where to find additional details related to them.
The corporate responsibility report, which includes the GRI report, complements Evli's financial reporting and
addresses the entire group's operations unless stated otherwise. The GRI report contains key information and
metrics identified based on a materiality analysis of stakeholders and business relevance.
The report is divided into three parts: responsible products and services, responsible governance, and
responsible employer. Under each section, the most relevant sustainability aspects related to the topic are
examined. Evli’s significant topics and focus areas for sustainability are presented in more detail on page 19.
Evli conducted its first GRI-compliant sustainability report in 2018. The scope and calculation boundaries of
the 2023 report have remained the same, and its content and structure are consistent with the reports of the
years 2022, 2021, 2020, and 2019.
The corporate responsibility report pertains to the fiscal year January 1 to December 31, 2023. The report
was published on February 16, 2024. Evli's 2022 annual report, which also included the corporate responsibility
report, was released on February 17, 2023.
Evli's annual report is published annually on a calendar year basis. The annual report includes a business
review, corporate responsibility report, financial review, and financial statements, a description of the corporate
governance and control systems, and the remuneration policy and report.
Further information about the corporate responsibility report can be obtained from Evli's responsible
investment team and the marketing, communications, and investor relations team. Contact details for the teams
are available at evli.com.
Reporting practice
Material topics and their calculation threshold
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
39
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
The management approach and its components
All business areas and functions 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's Responsible Investment team carries out the responsible investment work under the Head of
Sustainability.
Compliance with the principles of responsible investment at Evli is supervised by the Responsible Investment
Executive Group. In addition to the CEO, the Responsible Investment Executive Group includes managers
from the business areas, Portfolio Management, Responsible Investment team, and Legal and Compliance. The
Responsible Investment Executive Group decides on Evli’s Principles for Responsible Investment and related
practices and reports to Evli’s Executive Group and through the Executive Group to Evli's Board of Directors.
40
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
GRI-index
GRI STANDARD REPORTING REQUIREMENTS REPORTING REFERENCE ADDITIONAL INFORMATION
GENERAL DISCLOSURES
GRI 2: General Disclosures
2-1 Organizational details p. 5, 76, 114
2-2 Entities included in the organixzation's sustainability report p. 39, 48-49
2-3 Reporting period, frequency and contact point p. 39
The report was published on February 16 2024 and
refers to the period 1.1.-31.12.2023, unless otherwi
-
se stated. The Evli Group publishes the Sustainability
Report annually.
2-4 Restatements of information
No material changes have been made to previously
reported data. Only smal adjustments to the
reported data in the GRI-Index reporting table.
2-5 External assurance
The responsibility report, which includes a GRI
report, is not externally audited.
2-6 Activities, value chain, and other business relationships p. 4-5, 10-15
A list of the Group's subsidiaries and investments in
associates is included in the financial statements
section of the Annual Report. Legal entities and
countries of operation are also listed in the financial
statements.
2-7 Employees p. 35-36
2-8 Workers who are not employees p. 36
2-9 Governance structure and composition p. 47, 139-143
2-10 Nomination and selection of the highest governance body p. 140-141
2-11 Chair of the highest governance body p. 141
2-12
Role of the highest governance body in overseeing the management of
impacts
p. 40, 47
2-13 Delegation of responsibility for managing impacts p. 40, 47
2-14 Role of the highest governance body in sustainability reporting p. 47
The report is part of the Annual Report, which has
been approved by the Board of Directors.
2-15 Conflicts of interest
Evli Group Ethical Principles:
www.evli.com
Evli Group Manager's transactions: www.evli.com
2-16 Communication of critical concerns
Whistleblowing:
www.evli.com The Board is
informed of all whistleblowing cases.
2-17 Collective knowledge of the highest governance body
The Board of Directors of Evli has extensive experti
-
se in different business areas, including responsible
business management.
2-18 Evaluation of the performance of the highest governance body p. 140-141
2-19 Remuneration policies p. 147-149
2-20 Process to determine remuneration p. 147-149
2-21 Annual total compensation ratio p. 151
2-22 Statement on sustainable development strategy p. 6-7, 18
41
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
GRI STANDARD REPORTING REQUIREMENTS REPORTING REFERENCE ADDITIONAL INFORMATION
GENERAL DISCLOSURES
GRI 2: General Disclosures
2-23 Policy commitments
Investment commitments are defined in the
Principles for Responsible Investment. For own
activities, this will be clarified in the coming years.
The key principles guiding the Evli Group's respon
-
sible investment policy are described at
www.evli.com
2-24 Embedding policy commitments
Investment commitments are defined in the
Principles for Responsible Investment. For own
activities, this will be clarified in the coming years.
The key principles guiding the Evli Group's respon
-
sible investment policy are described at www.evli.
com/responsibility
2-25 Processes to remediate negative impacts
Investment commitments are defined in the
Principles for Responsible Investment. For own
activities, this will be clarified in the coming years.
The key principles guiding the Evli Group's respon
-
sible investment policy are described at
www.evli.com
2-26 Mechanisms for seeking advice and raising concerns Evli Group Ethical Principles: www.evli.com
2-27 Compliance with laws and regulations p. 21-23, 33 There have been no non-compliance cases in 2023.
2-28 Membership associations p. 28-30
2-29 Approach to stakeholder engagement p. 19-20
2-30 Collective bargaining agreements
Evli complies with the collective agreenments of the
Financial Sector valid at the time. Employees with
managerial contracts are not covered by the
collective agreement.
42
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
GRI STANDARD REPORTING REQUIREMENTS REPORTING REFERENCE ADDITIONAL INFORMATION
MATERIAL TOPICS
GRI 3: Material topics
3-1 Process to determine material topics p. 19
3-2 List of material topics
p. 19, 39
3-3 Management of material topics
p. 19, 39
Economic impacts
Economic Performance
3-3 Process to determine material topics
p. 19
201-1 Direct economic value generated and distributed
p. 10, 24-30
201-2
Financial implications and other risks and opportunities due to climate
change
p. 46-53
Anti-corruption
3-3 Process to determine material topics
p. 19
205-2 Communication and training about anti- corruption policies and procedures
p. 33
205-3 Confirmed incidents of corruption and actions taken
No incidents in 2023.
Anti-Competitive behaviour
3-3 Process to determine material topics
p. 19
206-1
Legal actions for anti-competitive behavior, anti-trust, and monopoly
practices
No legal actions in 2023.
Tax
3-3 Process to determine material topics
p. 19
207-1 Approach to tax
p. 33
Emissions
Energy
3-3 Process to determine material topics
p. 19
302-1 Energy consumption within the organisation
p. 34
302-4 Reduction of energy consumption
p. 34
43
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
GRI STANDARD REPORTING REQUIREMENTS REPORTING REFERENCE ADDITIONAL INFORMATION
MATERIAL TOPICS
Social impacts
Employment
3-3 Process to determine material topics
p. 19
401-1 New employee hires and employee turnover
p. 35-36
401-2
Benefits provided to full-time employees that are not provided to
temporary or part-time employees
All employee benefits are offered throughout the
personnel, regardless of employment.
401-3 Parental leaves
p. 37
Employees are provided with an opportunity of
shortened working hours and depending on work
tasks, the possibility of flexible working hours.
Occupational health and safety
3-3 Process to determine material topics
p. 19
403-1 Occupational health and safety management system
Evli Group maintains occupational safety operations
covering the entire personnel and carries out
workplace audits and monitoring which, in compliance
with the Occupational Safety and Health Act, include
both risk assessments and basic surveys required by
the Occupational Health Care Act.
403-3 Occupational health services
p. 37
403-6 Promotion of worker health
p. 37
403-9 Work-related injuries
p. 36
Training and Education
p. 19
404-1 Average hours of training per year per employee
p. 36
404-2
Programmes for upgrading employee skills and transition assistance
programmes
p. 37-38
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 employees are
assessed case-by-case
Diversity and Equal Opportunity
3-3 Process to determine material topics
p. 19
405-1 Diversity of governance bodies and employees p. 36, 143
44
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GRI STANDARD REPORTING REQUIREMENTS REPORTING REFERENCE ADDITIONAL INFORMATION
MATERIAL TOPICS
Social impacts
Marketing and labelling
3-3 Process to determine material topics
p. 19
417-3 Incidents of non-compliance concerning marketing communications
No incidents in 2023.
Customer Privacy
3-3 Process to determine material topics
p. 19
418-1
Substantiated complaints concerning breaches of customer privacy and
losses of customer data
p. 22-23 No incidents in 2023.
45
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
46
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
information, based on TCFD’s recommendations, on Evli’s climate risks and opportunities and compiles
information on Evli’s climate work progress in 2023.
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, as the transition to a low-
carbon economy is changing the business environment. Furthermore, 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 information on a company’s:
1. governance of climate-related risks and opportunities (role of the Board of Directors and the
management);
2. strategy related to the actual and potential impact of climate-related risks and opportunities on the
company’s business, strategy and financial planning;
3. risk management related to the company’s processes for identifying, assessing and managing climate
risks;
4. metrics 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
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47
Governance
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 the business areas, Portfolio Management,
Responsible Investment team, and Legal and Compliance.
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 the implementation of the UN
Global Compact principles, the UN Guiding Principles on Business and Human Rights, the OECD Guidelines
for Multinational Enterprises and the Evli Principles for Climate Change. The team has the right to exclude
individual companies from investments. 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. Portfolio management and other specialists working on responsible investment are systematically
offered training in climate change, risks and opportunities caused by it and its potential impacts on investments.
In 2023, for example, Evli organised portfolio management’s ESG training days, with one of the main topics being
climate change.
The investment activities of Wealth Management are guided by the Evli Principles for Responsible Investment,
which define 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. Evli published separate climate targets in 2021, 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
investments. The climate targets also include separate milestones. For climate targets, a roadmap has been
defined and a working committee has been set up to further clarify how to best achieve the investment-related
milestone 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 and managers from the business areas, Portfolio Management, Responsible
Investment team, and Legal and Compliance
- Regular meetings approximately on a quarterly basis
- Reports to Evli’s Executive Group
Responsible investment team
- Makes proposals to the Responsible Investment Executive Group on responsible
investment principles and practices, and supports the work of portfolio managers and
client representatives
- 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
- Reports 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
- Report to the Responsible Investment team on companies that violate the Principles for
Responsible Investment
THE RESPONSIBLE INVESTMENTS GOVERNANCE MODEL
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48
Strategy
At Evli, responsibility has been an integral part of portfolio management for many years, as 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 the included 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 dioxide emissions from its premises and to
avoiding unnecessary travel. One of Evli’s three milestones of climate targets concerns 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, which has also been reflected in
the 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 (NZAM) initiative in the summer of 2022. As the initiative
signatory, Evli must confirm its interim target, in accordance with the initiative, within a year of making the
commitment. In the summer of 2023, Evli submitted its interim target to the NZAM initiative, which was based on
a report made by Evli’s Climate Working Committee. The interim target is in line with the best practices defined
by the initiative, and it was approved by the member organisations of the NZAM initiative in summer 2023. Evli’s
interim target in line with the NZAM initiative is described in more detail in the section “Metrics and targets” on
page 52.
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 and 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 the
absence of targets 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 2023, Evli 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, for example, 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
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
49
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
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 2023, Evli launched
the new Evli Impact Forest II fund, which continues its predecessor’s investment strategy and pursues a
positive carbon impact. In the case of the forest funds, which are part of the alternative investment funds,
Evli’s performance fee depends on the achievement of the fund’s carbon dioxide removal target. In 2022, as
part of the merger of EAB Group Plc into Evli, the range of sustainability funds increased with among others
Evli Renewable Energy Infrastructure Fund II, a renewable energy fund that offers the opportunity to invest
in reducing global CO2 emissions. Evli also offers its clients the wealth management’s climate portfolio strategy
that aims to reduce the investment portfolio’s greenhouse gas emissions and direct investments towards
climate solutions according to the client’s objectives. Careful allocation and risk analysis are the core of the
investment strategy.
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 also included in the tools
used by portfolio managers of the equity and corporate bond funds managed by Evli, so the analysis 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-degree 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 the scenarios and other metrics can be
found in the section “Metrics and targets” on page 50-53.
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 investments by portfolio managers and the Responsible Investment team. Climate
risk management measures include analysing and monitoring greenhouse gas emissions of investments,
engagement and exclusion. 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 change principles and other day-to-
day work related to responsibility. Evli has also defined a climate roadmap for its climate targets, according to
which it will systematically carry out its climate work.
The emissions of investee 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. Emission data and other climate
analysis data, along with other ESG data, are integrated into the portfolio management systems, and thereby
allowing Evli to also 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 (at least 10%) of their revenue coming from thermal coal mining, its use
in energy production or oil sands extraction. If a company has a concrete plan to change its procedures and/
or the company supports Just Transition, the Responsible Investment team may decide to depart from the
exclusion. Evli does not finance new thermal coal-fired power plants, thermal coal mines or oil sands projects
that are in the planning or construction stages. 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 change 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 change 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
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
50
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. When making the NZAM commitment, Evli
also set targets for engagement, which continue engagement in line with Evli’s roadmap of climate targets. These
targets are described in more detail in the section “Metrics and targets”. As part of its independent engagement
work based on its climate targets, Evli was in contact with 19 companies in 2023 and monitored the progress of
the companies that were engaged with in the previous years. In 2023, Evli attended in 26 general meetings in
Finland and one general meeting in Sweden.
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 the following major climate initiatives, for example: the Climate Action 100+
initiative, CDP investor letters (climate change, deforestation and water) and the CDP’s collaborative engagement
to set science-based targets. Evli has also signed, together with other investors, a letter to governments, the
Global Investor Statement to Governments on the Climate Crisis, which encourages governments to ensure
that the global temperature rise is limited to 1.5°C, take early action to keep greenhouse gas emissions in line
with the 2030 target, promote the reduction of non-carbon emissions, increase the availability 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 consistency in global financial
regulation. In addition, Evli has signed, together with other investors, the global COP15 investor statement
“Moving Together on Nature”, which called on governments to take coordinated action to tackle climate change
and biodiversity loss around the world and give financial institutions a stronger mandate to align financial
activities with biodiversity targets, and to adopt an ambitious Global Biodiversity Framework.
In addition to these measures, Evli regularly monitors changes in climate change regulation. Evli has been
involved in the EU legislative debate in Finland as a member of Finsif and Finance Finland and participated in
global discussion, as a PRI signatory, at events organised by PRI. In 2023, Evli participated in Finance Finland’s
Sustainable Finance Disclosure Regulation (SFDR) consultation as well as in a workshop, organised by PRI for its
signatories, related to SFDR consultation. Furthermore, one significant stakeholder group is Evli’s data providers,
with which Evli engages in continuous dialogue about, among others, climate data. The purpose is to develop Evli’s
own operations, tools and reporting as well as to improve the data available to investors in order to achieve the
climate targets.
Metrics and targets
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
Scope 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 below table 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 in wealth management
are included in the data in the table.
Scope 1 + 2 Scope 1+2+3
Absolute emissions (t CO2 e, coverage 73%) 937,000 4,903,000
Carbon intensity (t CO2 e/$M Sales, coverage 81%) 131.9 804.1
Source: Evli, MSCI ESG Research
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 2023, and the development of the targets
is shown in the graph on page 51. The climate targets of the investments range from “No target” to “Approved
science-based target (SBT)”. Evli aims to increase the proportion of investments that have science-based
climate targets, thereby reducing the potential risks to investments caused by climate change.
1
The calculation of carbon footprint figures is defined by the international standard GHG protocol (Greenhouse Gas Protocol), for example. The GHG protocol breaks down
greenhouse gas emissions into scopes 1–3. Scope 1 greenhouse gas emissions refer to direct emissions from activities that are owned or controlled by the company. Scope
2
greenhouse gas emissions, on the other hand, refer to the indirect emissions from the activity that arise from the production of purchased energy, and Scope 3 includes
indirect emissions related to products purchased by the company, outsourcing, business travel, etc.
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51
Distribution of climate targets 2019-2023
Source: Evli, ISS ESG
0,5
0,4
0,3
0,2
0,1
0
No target Non-Ambitious Target Ambitious target Committed SBT Approved SBT
2019 2020 2021 2022 2023
The mapping of climate targets takes into account all of Evli’s direct investments, including equity and corporate
bond funds and the direct equity and corporate bond investments made in wealth management. The graph
shows the evolution of the climate targets between 2019 and 2023. The graph indicates that over the course
of five 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” increased by 27 percentage points and the share
of “Committed SBT” increased by 8 percentage points. In 2023, the share of committed SBTs was a little smaller
than in 2022 which can be explained by the companies with committed SBTs getting the targets approved.
Hence the share of approved SBTs was 5 percentage points higher compared to 2022 level. Correspondingly,
between 2019 and 2023, the share of “No targets” decreased by 28 percentage points. The positive trend shown
in the graph is in line with Evli’s ambitions, as encouraging the setting of climate targets is an important part of
Evli’s engagement work and climate roadmap. 10 of the companies covered by Evli’s own climate engagement,
which started in 2021, committed to a science-based climate target in 2022–2023.
Evli also uses scenario analysis to identify climate-related risks and opportunities. At the end of 2023, 28
percent of Evli’s equity and corporate bond funds were aligned with the 1.5-degree scenario and 41 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 publicly available on Evli’s website evli.com.
Evli’s climate targets
In line with its responsible investment objectives, Evli published 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 interim 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 set an interim target of a 50% reduction in indirect emissions from investments by 2030, provided that
the investment environment enables this. The base year is 2019.
3) Evli set up a Working Committee to further explore how best to achieve the investment-related milestone
through real-world emission reductions and in line with the Paris Climate Agreement.
In 2022, it was decided that the Climate Working Committee continues supporting climate work until 2025.
In 2022, Evli strengthened its climate commitment by signing the Net Zero Asset Managers initiative.
The interim targets and the roadmap of climate targets support Evli’s long-term goal of carbon neutrality. In
line with the climate targets roadmap, Evli will refine the monitored metrics as work progresses and report
accordingly.
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
52
Targets in line with the Net Zero Asset Managers initiative
In addition to its own climate targets, Evli has an interim target approved by the Net Zero Asset Managers
(NZAM) initiative in 2023, which is based on Evli’s milestones of climate targets and roadmap, set in 2021, and
providing more concrete tools and clearer metrics to support Evli’s short-term and long-term climate targets.
In the first stage, the NZAM interim target includes Evli’s equity and corporate bond funds, as sufficient data
is most readily available on them. With other asset classes, the work will be continued in accordance with Evli’s
roadmap of climate targets.
Evli’s NZAM interim target is based on two methodologies approved by the initiative. Evli defined the interim
targets related to assessment of companies (portfolio coverage targets) by following the Paris Aligned
Investment Initiative’s
1
Net Zero Investment Framework
2
(NZIF) methodology. Based on Net Zero Asset Owner
Alliance’s
3
Target-Setting Protocol
4
(TSP) methodology, Evli defined an interim target for investments (sub-
portfolio target) and an engagement target. Evli will report on the progress of the targets annually.
At the end of 2023, the situation in the interim target of investments (sub-portfolio target) was a -44.7 percent
decrease in carbon footprint compared with the base year 2019.
In accordance with the engagement target, Evli engaged with four company independently and with 12
companies through collaborative engagement initiatives in 2023. In addition, Evli continued its independent
engagement with other high emitting companies.
At the end of 2023, 49.6 percent of the investments of material sectors were net zero, aligned or aligning.
Sub-portfolio target
Base year 2019
Carbon footprint of the base year 241.8 t CO
2
e/$M Sales
Target year 2030
Decrease in the emissions of investments -50%
Engagement target
The aim is that Evli will engage with the 20 highest emitting companies that have not committed
to or do not have an approved science-based target (SBTi) or that are not aligned to a net zero
pathway as defined in the NZIF methodology.
Base year 2022
Target year 2025
Portfolio coverage targets
The target is to achieve a certain percentage of assets under management (AUM) in material
sectors that is net zero, aligned or aligning.
Base year 2022, share of AUM 42%
Target year 2027, share of AUM 55%
Target year 2030, share of AUM 65%
NET ZERO ASSET MANAGERS INTERIM TARGETS
1
The Paris Aligned Investment Initiative (PAII) was launched in May 2019 by the Institutional Investors Group on Climate Change (IIGCC). The
objective of the initiative is to examine how investors can align their portfolios to the goals of the Paris Agreement.
2
The Net Zero Investment Framework developed by the PAII provides a common set of recommended actions, metrics and methodologies
through which investors can maximise their contributions to achieving global net zero emissions by 2050 or sooner (www.parisalignedasse-
towners.org/media/2021/03/PAII-Net-Zero-Investment-Framework_Implementation-Guide.pdf).
3
The UN-convened Net Zero Asset Owner Alliance (NZAOA) is a member-led initiative of institutional investors committed to transitioning their
investment portfolios to net zero greenhouse gas emissions by 2050 – consistent with a maximum temperature rise of 1.5°C.
4
Target-Setting Protocol is a broad framework for reporting and delivering short-term climate targets (www.unepfi.org/industries/tar-
get-setting-protocol-third-edition/).
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
Sources: Evli, MSCI ESG Research
1 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.
2 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.
3 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).
4 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.
5 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.
Carbon intensity
(t CO
2
e / USD million) (1) Compared to benchmark (2)
Weight of companies
owning fossil fuel reserves
(%) (3)
Compared to benchmark
(%-points) (2) Coverage / Fund (4)
Coverage /
Benchmark index (4)
Investments in Solutions class in
the MSCI Low Carbon Transition
classification (5)
Equity Funds
AJ Evli Value Hedge 176.5 1.4% 64.3% 5.2%
Evli Emerging Frontier 124.1 2.3% 21.3%
Evli Europe 200.4 115.8% 13.6% 5.3% 99.6% 99.6% 4.2%
Evli GEM 422.3 27.6% 8.6% 1.0% 91.2% 99.6% 3.3%
Evli Impact Equity 178.7 38.9% 0.0% -6.8% 89.2% 99.9% 15.2%
Evli Japan 81.5 3.6% 4.3% -3.3% 90.4% 100.0% 2.1%
Evli Global 52.3 -51.0% 0.0% -6.7% 96.8% 99.6% 3.3%
Evli Global X 52.9 -50.4% 0.0% -6.7% 97.1% 99.6% 3.3%
Evli Equity Factor Europe 38.8 -58.2% 0.0% -8.4% 98.8% 99.6% 9.0%
Evli Equity Factor Global 41.4 -61.2% 0.0% -6.7% 98.1% 99.6% 4.0%
Evli Equity Factor USA 42.2 -59.4% 0.0% -5.2% 99.3% 99.6% 2.4%
Evli North America 134.9 22.6% 10.8% 5.1% 99.4% 99.6% 1.4%
Evli Nordic 173.6 204.0% 10.4% 7.4% 97.5% 99.6% 6.4%
Evli Nordic Small Cap 43.3 -58.0% 4.7% 3.0% 79.0% 87.8% 8.9%
Evli Sweden Equity Index 18.5 0.0% 0.0% 0.0% 95.4% 100.0% 2.7%
Evli Swedish Small Cap 65.2 44.7% 0.0% 0.0% 78.5% 93.7% 5.7%
Evli Finland Mix 143.4 0.0% 82.4% 4.5%
Evli Finnish Small Cap 117.6 21.5% 0.0% 0.0% 69.3% 72.7% 12.7%
Evli Finland Select 182.5 12.8% 0.0% 0.0% 94.5% 91.4% 9.6%
Evli USA Growth 42.7 -58.9% 3.6% -1.6% 90.8% 99.6% 17.4%
Fixed Income Funds
Evli Green Corporate Bond 100.4 -40.3% 3.7% -3.4% 91.1% 96.0% 12.8%
Evli European High Yield 102.6 -18.4% 0.6% -3.8% 64.3% 78.7%
Evli European Investment Grade 79.5 -43.5% 0.0% -8.7% 91.4% 97.6% 7.4%
Evli Emerging Markets Credit 369.9 -35.9% 11.8% -4.0% 71.8% 87.3% 2.7%
Evli Euro Liquidity 103.0 0.5% 78.5% 4.5%
Evli Short Corporate Bond 210.8 0.0% 83.9% 4.6%
Evli Nordic 2025 Target Maturity 98.4 0.0% 64.0% 12.9%
Evli Nordic Corporate Bond 113.8 9.8% 0.0% -6.4% 7 7.9% 97.8% 13.2%
Evli Corporate Bond 97.6 -18.6% 1.0% -5.7% 85.5% 93.9% 4.6%
53
GovernanceResponsibility Financial ReviewBusiness Overview Responsibility
54
FINANCIAL REVIEW
GovernanceResponsibilityBusiness Overview Financial Review
55
5555
Key financial figures
2023 2022
1
Carve-out 2021 Carve-out 2020 Carve-out 2019
Income statement key figures
Net revenue, M€ 108.7 96.1 116.2 80.1 74.9
Operating profit/loss, M€ 40.2 30.9 56.6 32.3 25.5
Operating profit margin, % 37.0 32.1 48.7 40.4
2
34.0
2
Profit/loss excl. non-recurring items related to
mergers and acquisitions, M€
37.1
Profit for the financial year, M€ 32.0 25.1 45.5 25.5 20.2
Profitability key figures
Return on equity (ROE), % 22.8 20.4 50.4 35.7 32.3
Balance sheet key figures
Equity-to-assets ratio, % 39.8 39.1 27.7 - -
Other key figures
Expense ratio (operating costs to net revenue) 0.63 0.67 0.52 - -
Recurring revenue ratio, % 130 123 135 128 124
Permanent personnel at the end of the period 316 294 283 - -
Assets Under Management, mrd. € 18.0 16.0 17.5 - -
Share based key figures
Earnings per share, € 1.09 0.83 - - -
Equity to owners of parent entity per share, € 4.9 5.1 - - -
Dividend per share, € 1.16 0.80 - - -
Capital return per share, € - 0.35 - - -
Dividend to earnings ratio, % 105% 97% - - -
Effective dividend yield, % 5.8% 7.6% - - -
Price to earnings ratio (P/E) 18.1 18.3 - - -
Market value, M€ 521.8 398.1 - - -
Diluted number of shares at the end of period 27,367,899 26,945,975 - - -
Trading volume (B-share), % 10 6 - - -
1
Includes Carve-out figures for 1-3/2022
2 Unaudited
22.8
RETURN ON EQUITY (%)
(2022: 20.4)
ASSETS UNDER MANAGEMENT (BN. €)
18.0
(2022: 16.0)
RECURRING REVENUE RATIO (%)
130
(2022: 123)
GovernanceResponsibilityBusiness Overview Financial Review
56
5656
Graphs of the financial development
1 Board of Directors’ proposal to the annual
general meeting
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. €)
NET PROFIT (M€)
DIVIDEND & EARNINGS/SHARE (€)
2019 2019 2019
2019201920192019
2019
34.0
40.3
25.5
32.3
56.6
2020 2020 2020
2020202020202020
2020
74.9
20.2
2021 2021 2021
2021202120212021
2021
80.1
25.5
2022 2022 2022
2022202220222022
2022
116.2
45.5
2023 2023 2023
2023202320232023
2023
96.1
108.7
72.2
76.8
111.7
92.1
25.1
23.4
26.2
50.4
20.4
14.3
14.1
17.5
16.0
45.9
124
128
135
0.71
0.88
1.47
0.81
1.15
0.73
0.66
1.06
100
32.0
130
22.8
18.0
32.1
37.0
30.9
40.2
123
1.05
1,161
GovernanceResponsibilityBusiness Overview Financial Review
57
Board of directors report
1.1.–31.12.2023
Market Developments
Despite the market turbulence seen during the autumn, 2023 was a good year from an investor’s perspective.
The stock markets, which had risen rapidly during the first half of the year, especially in the United States,
Europe, and Japan, took a downturn in the third quarter. However, the decline quickly reversed, and valuation
levels rose towards the end of the year, despite the weakening outlook for corporate earnings growth. At
the same time, the return levels of fixed income investments increased during the year, offering interesting
investment opportunities. Despite the rise in valuation levels, uncertainty and risks in the market were high.
The continuation of the war in Ukraine, the escalation of the Israeli-Palestinian situation into an attack on Gaza
in late autumn, and the subsequent rise in tensions in the Middle East put investors on their toes. In addition to
the geopolitical risks, concerns were raised about China’s weaker-than-expected economic growth, problems
plaguing the country’s real estate sector, and ongoing tensions with the United States. The Nordic real estate
market also ran into problems, which led to depreciations in values and a slowdown in trade. This was reflected
especially in the operations of real estate funds.
Central banks’ interest rate movements were a significant factor in the development of equity and fixed
income markets during 2023. Central banks in Europe and the United States sought to curb accelerating
inflation with rapid interest rate hikes in the early part of the year, while slowing economic growth. Although
inflation began to decline at the end of the year, the continued strong economic growth and employment
situation in the United States led the Federal Reserve to indicate that a decline in key interest rates was not
imminent soon. This was also indicated by the European Central Bank, which stressed that the tightening policy
would continue in monetary policy.
In the United States and Europe, investment market development was generally positive, as was in Japan. In
Finland, on the other hand, valuation levels declined, weighed down by the price development of the largest,
cyclical companies on the stock exchange. U.S. equities (S&P 500) rose 26.3 percent and European equities
(Stoxx 600) rose 16.8 percent between January and December 2023. During the same period, Finnish equities
(OMX Helsinki Cap) fell by 0.6 percent.
The development of the fixed income markets was also positive during 2023. The value of corporate bonds with
a higher credit rating increased by 8.2 percent. Euro area government bond values rose by 7.2 percent. The
value of lower-rated high-yield bonds, on the other hand, increased by 11.8 percent. The exchange rate of the
euro rose by 3.1 percent against the dollar.
Development of revenue and result
Following the acquisition of EAB Group Plc (“EAB”), successful new sales, and positively developed financial
markets, Evli Group’s net revenue increased by 13 percent compared to the previous year and was EUR 108.7
million (1-12/2022: EUR 96.1 million). Performance-related fees during 2023 amounted to EUR -0.4 million
(EUR 0.6 million). The performance-based fees include a write-down of EUR 0.5 million related to EAB-era fee
provisions for Solar Yield Funds and a write-down of EUR 0.9 million in the Evli Residential I fund’s carry fee
accrual from previous financial years. The Group’s net commission income increased nearly by nine percent
from the comparison period to EUR 100.0 million (EUR 92.1 million). Income from own investments amounted to
EUR 3.0 million (EUR 3.7 million), including income from securities trading and currency brokerage.
Total costs for 2023, including depreciation and impairment, amounted to EUR 69.2 million (EUR 65.5 million).
The increase in expenses is mainly explained by the acquisition of EAB and general inflation. Personnel
expenses amounted to EUR 41.0 million (EUR 39.2 million), including an estimate of performance-based bonuses
for the personnel. Other administrative expenses amounted to EUR 21.0 million (EUR 19.6 million). Depreciation,
amortizations, and impairments amounted to EUR 5.6 million (EUR 5.8 million) and other operating expenses
to EUR 1.6 million (EUR 0.8 million). Impairment losses on other financial assets amounted to EUR -0.8 million,
consisting of a write-down of shares in the associated company SAV-Rahoitus Oyj (EUR -0.75 million). The
share of profit of associates was EUR 0.7 million (EUR 0.3 million). Evli’s cost-income ratio was 0.63 (0.67).
Operating profit increased by more than 30 percent year-on-year and was EUR 40.2 million (EUR 30.9 million).
The operating profit margin was 37.0 percent (32.1%). The profit for the year 2023 was EUR 32.0 million (EUR
25.1 million).
Evli presents the result of the valuation of the investment of Alisa Bank Plc as a separate item in the statement
of other comprehensive income in accordance with IFRS 9. During 2023, the change in value of the investment
amounted to EUR -2.3 million.
GovernanceResponsibilityBusiness Overview Financial Review
58
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
Assets under management increased from the level of the previous year as a result of strong market
development. At the end of 2023 Evli had EUR 5.7 billion (EUR 5.5 billion) in discretionary asset management
assets, which includes both traditional and digital services.
Traditional mutual funds
Net subscriptions of EUR 0.5 billion (EUR -1.2 billion) were made to Evli’s mutual funds during January-
December. According to Evli’s strategy, the goal is to increase the international sales of its investment
products. In 2023 net subscriptions from foreign investors amounted to EUR -20 million (EUR -0.7 billion).
The returns of all Evli’s fixed income funds developed positively during 2023. Of the funds, the best returns
relative to the benchmark index were generated by Evli Short Corporate Bond and Evli Nordic Corporate
Bond funds. The return development of almost all equity funds was also positive during the year, driven by the
general market situation. Relative to the benchmark index, the best returns were generated by Evli Finnish
Small Cap and Evli GEM funds.
During 2023, 42 percent of Evli’s traditional investment funds performed better than their benchmark index.
In a three-year review, 45 percent of mutual funds outperformed the benchmark index. At the end of the
year, Evli was best in the comparison of management companies by the analysis house Morningstar, receiving
4.00 stars.
The total capital of traditional investment funds managed by the fund management company was EUR 9.9
billion (EUR 8.6 billion). Of this, around EUR 3.5 billion were invested in equity funds (EUR 2.8 billion), EUR 6.3
billion in fixed income funds (EUR 5.6 billion) and EUR 0.2 billion in mixed funds (EUR 0.2 billion). At the end of
December, EUR 2.4 billion of Evli’s fund capital came from customers outside Finland (EUR 2.2 billion) when
direct fund investments are examined.
Responsibility is a central part to Evli’s asset management. At the end of the year, the average ESG rating of
Evli’s funds was “A” (source: MSCI ESG database).
Alternative investment products
The sales and product development of the strategically important alternative investment products performed
well considering the market situation during the review period. In total, subscriptions and investment
commitments to alternative investment products were made during 2023 to the value of approximately EUR 225
million. The largest subscriptions were directed to Evli Private Equity I (approximately EUR 56 million), Evli Private
Debt II (approximately EUR 54 million) and Evli Leveraged Loan (approximately EUR 39 million).
350
300
250
200
150
100
50
0
-50
Traditional funds
20222023
44.3
227
289
225
-33
40.5
25.7
19.2
-0.4
0.6
7.7
8.9
6.5
6.6
0.0
0.0
3.7
5.8
11.6
10.4
0.4
0.5
DEVELOPMENT OF COMMISSION INCOME (MEUR) NET SALES PER FUND TYPE 2023 (MEUR)
Alternative funds
Fund performance fees
Brokerage
Asset Management (AM)
AM performance fees
Advisory fees
Incentive programs
Other advisory fees
Equity
funds
Fixed
income
funds
Alternative
investment
finds
Other
GovernanceResponsibilityBusiness Overview Financial Review
59
Other investment products
During 2023, demand for direct investment products was modest despite the high volatility in the markets.
During the year, commissions from brokerage activities decreased from the comparison period in almost all
asset classes.
Financial performance
In 2023 the net revenue of the Wealth Management and Investor Clients segment increased from the
comparison period due to good fund development and net sales carried over from the acquisition of EAB. The
development of net sales was burdened by clearly lower commission income and lower yield fees than in the
comparison period. Net sales increased by 11 percent from the previous year and were EUR 84.2 million (EUR
75.7 million). During the year, performance-related fees from asset management or funds amounted to EUR -0.4
million (EUR 0.6 million).
The operating result increased by 20 percent on the comparison period and was EUR 33.0 million (EUR 27.4 million).
KEY FIGURES – WEALTH MANAGEMENT AND INVESTOR CLIENTS
M€ 2023 2022* Change %
Net revenue 84.2 75.7 11%
Operating profit/loss before Group allocations 43.4 38.1 14%
Operating profit/loss 33.0 27.4 20%
* Includes carve-out figures for 1–3/2022
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.
Customer assets under management increased from the previous year’s level due to new sales and positive
market development. At the end of the year, the Group’s total net assets under management stood at EUR
18.0 billion (EUR 16 billion). At the end of the year, the full power of attorney was within the scope of asset
management for EUR 5.7 billion (EUR 5.5 billion). Correspondingly, direct investments in Evli’s traditional
investment funds totaled EUR 7.2 billion (EUR 6.0 billion) at the end of 2023. The assets under management of
alternative investment funds amounted to EUR 2.7 billion (EUR 2.4 billion). Assets managed through subsidiaries
and associated companies also rose to EUR 2.4 billion (EUR 2.1 billion).
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
Uncertainty and increased financing costs weighed on the M&A markets well into the autumn, but as the end
of the year approached, the situation improved, and assignments reached the finish line. Despite the uncertain
market environment, the company’s order book is reasonable, and the outlook is favorable.
Remuneration services
At the end of 2023, the company had over 220 incentive programs or personnel funds under management.
Evli annually advises around 150 companies on compensation planning mandates. In the domestic client base,
ASSETS UNDER MANAGEMENT IN ALTERNATIVE
FUNDS 31.12.2023
Real Estate 31%
Private Equity 38%
Private Debt 11%
Othe alternatives 19%
ASSETS UNDER MANAGEMENT (BN. €)
Asset Management 5.7
Mutual Funds (Direct) 7.2
Alternative Funds 2.7
Other asset 2.4
ASSETS UNDER MANAGEMENT (BN. €)
ASSETS UNDER MANAGEMENT IN ALTERNATIVE
FUNDS (BN. €)
2019
0.9
2020
1.1
2021
1.6
2022
2.4
2023
2.7
2019 2020
14.3
2021
14.1
2022
17.5
2023
16.0
18.0
GovernanceResponsibilityBusiness Overview Financial Review
60
activity remained at a very high level, especially with the implementation of share issues and share savings
plans for the entire personnel. Sales to both Swedish listed and domestic unlisted companies also increased
during the year. The company’s offer base has also grown steadily.
Net revenue of the incentive business during the year was approximately EUR 12.2 million (EUR 10.2 million).
The development of net revenue was positively affected by, among other things, the increase in the number of
customer companies from the comparison period and the still growing cross-selling of services. In addition,
existing customers’ interest in more extensive incentive plans, such as share savings plans for the entire
personnel, and communication services continued to grow. The personnel fund business resulting from the
acquisition of EAB and the expansion of the business into Sweden also brought growth.
Financial performance
In 2023 the net revenue in the Advisory and Corporate Clients segment decreased by four percent from
the previous year and amounted to EUR 15.8 million (EUR 16.4 million). Revenue development was negatively
impacted by the decrease in advisory fees received from M&A transactions. Significant fluctuations in revenue
from one year to the next are typical of the segment’s M&A activities.
KEY FIGURES – ADVISORY AND CORPORATE CLIENTS
M€ 2023 2022* Change %
Net revenue 15.8 16.4 -4%
Operating profit/loss before Group allocations 4.5 6.1 -26%
Operating profit/loss 2.7 4.2 -37%
* Includes carve-out figures for 1–3/2022
Group operations
The Group Operations segment includes support functions serving the business areas, such as Information
Management, Financial Administration, Marketing, Communications and Investor Relations, Human Resources,
and Internal Services. The company’s own investment operations and the Group’s supervisory functions (Legal
and Compliance, Risk Management, and Internal Audit) are also part of Group Operations.
Financial performance
In 2023 the net revenue in the Group Operations segment increased compared to the previous year and was
EUR 8.7 million (EUR 4.0 million). The increase was driven by a change in the interest rate environment reflected
in the interest margin and by own investment activity.
KEY FIGURES – GROUP OPERATIONS
M€ 2023 2022* Change %
Net revenue 8.7 4.0 119%
Operating profit/loss before Group allocations -7.7 -13.3 43%
Operating profit/loss 4.5 -0.8 691%
* Includes carve-out figures for 1–3/2022
Responsibility
Responsibility is one of Evli’s strategic focus areas. Responsible operations create long-term value and keep
us competitive in the changing global operating environment.
Responsible investing
In Wealth Management, the company’s most significant business area, responsibility factors have been
integrated as a systematic part of portfolio management. The investments made by Evli’s mutual funds are
monitored for possible breaches of standards. In addition, the asset management team engages in influencing
the companies it invests in independently and together with other investors.
Evli’s work in the field of responsibility was recognized by customers. In Kantar Prospera’s “External Asset
Management 2023 Finland” -survey Evli’s responsible investing expertise was ranked the best in Finland
and in the SFR Scandinavian Financial Research client survey, Evli was ranked second among large asset
management houses in Finland in terms of responsible investment expertise.
GovernanceResponsibilityBusiness Overview Financial Review
61
Responsible employer
Evli is committed to creating responsible and high-quality work-life experiences for its employees and job
applicants. Fairness, which encompasses equality, non-discrimination, and diversity, is an integral part of Evli’s
responsibility. At Evli, each business unit is responsible for ensuring that responsibility issues are taken into
account in their daily work and that all employees are implementing responsibility into practice. Responsible
working practices are based on Evli’s values: entrepreneurship, valuable relationships, learning, and integrity.
Read more about the development of responsibility at Evli during 2023 on pages 17-53.
Balance sheet and funding
At the end of December 2023, Evli Group’s balance sheet total was EUR 344.7 million (EUR 366.6 million). The
Group’s equity at the end of the year stood at EUR 137.2 million (EUR 143.4 million).
The Group’s cash and cash equivalents at the end of 2023 stood at EUR 126.0 million (EUR 115.4 million) and
liquid investment fund investments totaled EUR 26.0 million (EUR 23.8 million). Evli Plc has granted investment
loans to its customers. At the end of 2023, loans drawn totaled EUR 19.2 million (EUR 34.8 million). These are
presented in the balance sheet under claims on the public and public sector entities. There were no credit
losses during 2023.
The lease liability related to business premises recorded in the balance sheet at the end of 2023 was EUR 11.3
million (EUR 12.9 million), of which short-term liabilities accounted for EUR 2.4 million (EUR 1.7 million). Evli Plc has
issued structured notes totaling EUR 106.7 million (EUR 106.3 million). These form the basis of the Group’s long-
term financing together with equity. The company’s share capital at the end of December was EUR 53.7 million.
There were no changes in the share capital during the year.
The Group’s Common Equity Tier 1 capital per 31.12.2023 was EUR 42.9 million and the Group’s own funds in
relation to the required minimum capital were 258.2 percent. As an investment firm, Evli Plc complies with
the Investment Services Companies’ Capital Adequacy Framework (IFD/IFR). The most restrictive capital
requirement for Evli at the end of the year was determined based on fixed overheads. The minimum capital
requirement based on fixed overheads was EUR 16.6 million. The Group’s equity ratio was 39.8 percent on
31.12.2023.
Decisions taken by the general meeting
Evli Plc’s Annual General Meeting, held in Helsinki on March 14, 2023, decided on the following matters:
Adoption of the financial statements, use of the profit shown on the balance sheet and the payment of
dividend
Evli Plc’s Annual General Meeting approved the financial statements for the financial year 2022. The Annual
General Meeting approved the Board of Directors’ proposal to pay a dividend for the financial year 2022 for
the amount of EUR 0.80 per share, in addition to which EUR 0.35 per share will be distributed from the reserve
for invested unrestricted equity. The dividend and the distribution from the reserve for invested unrestricted
equity will be paid to shareholders who are entered in the shareholder register maintained by Euroclear
Finland Oy on the dividend record date.
The release from liability of the members of the Board of Directors and the CEO
The Annual General Meeting granted release from liability to the Members of the Board of Directors and the
CEO for the 2022 financial year.
Number of Board members, members, and fees
The Annual General Meeting decided that the Board of Directors will consist of six (6) members. The present
members of the Board of Directors Henrik Andersin, Fredrik Hacklin, Sari Helander, Robert Ingman and Antti
Kuljukka were re-elected as members of the Board of Directors and Christina Dahlblom was elected as a new
member.
It was decided that the following remuneration shall be paid to the members of the Board of Directors: EUR
5,000.00 per month to the Members of the Board, EUR 6,000.00 per month to the Chairmen of the Board
Committees and EUR 7,500.00 per month to the Chairman of the Board.
Auditors and auditors’ fees
The auditing firm Ernst & Young Oy (EY) was elected as the company’s auditor and Miikka Hietala, Authorized
Public Accountant, as the principally responsible auditor. The auditor shall be paid remuneration according to a
reasonable invoice approved by the company.
Authorizing the Board of Directors to decide on the acquisition of the company’s own shares
The Annual General Meeting authorized the Board of Directors to decide on the acquisition of the company’s
own series A and series B shares in one or more tranches as follows:
GovernanceResponsibilityBusiness Overview Financial Review
62
The total number of own series A shares to be acquired may be a maximum of 1,448,515 shares, and the total
number of own series B shares to be acquired may be a maximum of 1,179,015 shares. The proposed number
of shares represents approximately 10 percent of all the shares of the company on the date of the Notice of
the Annual General Meeting.
Based on the authorization, the company’s own shares may only be acquired with unrestricted equity.
The Board of Directors will decide how the company’s own shares will be acquired. Financial instruments such
as derivatives may be used in the purchasing. The company’s own shares may be acquired in other proportion
than the shareholders’ proportional shareholdings (private purchase). Shares may be acquired through public
trading at the prevailing market price formed for the series B shares in public trading on the Nasdaq Helsinki
Oy on the date of acquisition.
The authorization will replace earlier unused authorizations to acquire the company’s own shares. The
authorization will be in force until the next Annual General Meeting but no later than until June 30, 2024.
Authorizing the Board of Directors to decide on the issuance of shares as well as the issuance of options
and other special rights entitling to shares
The Annual General Meeting authorized the Board of Directors to decide on the issuance of shares and special
rights entitling to shares pursuant to Chapter 10, section 1, of the Companies Act in one or more tranches, for
a fee or free of charge.
Based on the authorization, the number of shares issued or transferred, including shares received based on
special rights, may total a maximum of 2,627,530 series B shares. The proposed number of shares represents
approximately 10 percent of all the shares of the company on the date of the Notice of the Annual General
Meeting. Of the above-mentioned total number, however, a maximum of 262,753 shares may be used as part of
the company’s share-based incentive schemes, representing approximately one (1) percent of all the shares
of the company on the date of the Notice of the Annual General Meeting.
The authorization will entitle the Board of Directors to decide on all the terms and conditions related to the
issuing of shares and special rights entitling to shares, including the right to deviate from the shareholders’
pre-emptive subscription rights. The Board of Directors may decide to issue either new shares or any own
shares in the possession of the company.
The authorization will replace earlier unused authorizations concerning the issuance of shares as well as the
issuance of options and other special rights entitling to shares. The authorization is proposed to be in force
until the end of the next Annual General Meeting but no longer than until June 30, 2024.
Amendment of the Articles of Association with regard to the arrangements for the General Meeting of
Shareholders
The Annual General Meeting decided to add to the Articles of Association the possibility to alternatively attend
the General Meeting remotely during the meeting (hybrid meeting) or without a physical meeting place (remote
meeting). The amendment was made to Article 10 (Notice Convening the General Meeting of Shareholders) of
the Articles of Association.
New article in the Articles of Association:
“Article 10 § Notice Convening the General Meeting of Shareholders
A notice convening the general meeting of shareholders shall be published on the company’s website and as a
stock exchange release no earlier than three (3) months before and no later than three (3) weeks prior to the
meeting. The notice shall, however, be announced at least nine (9) days before the record date of the general
meeting of shareholders. The board of directors may at their discretion decide to publish notice of the general
meeting of shareholders in one or several newspapers.
The Board of Directors may decide that a shareholder may also participate in the General Meeting by
exercising his/her right to vote by means of a telecommunication link and technical aid before or during
the meeting (hybrid meeting). The Board of Directors may also decide that the general meeting is to be held
without a meeting venue so that shareholders exercise their decision-making power fully and in a timely
manner during the meeting by means of telecommunication and technical aids (remote meeting).”
Shares and shareholders
Evli Plc’s total number of shares at the end of December was 26,484,899 shares, of which 14,425,812 were
series A shares and 12,059,087 series B shares. The company held no own shares at the end of December
2023.
Pursuant to Section 4 of the Articles of Association, the company converted 18,000 A shares into B shares on
May 8, 2023. The converted shares were admitted to public trading on Nasdaq Helsinki on May 9, 2023.
GovernanceResponsibilityBusiness Overview Financial Review
63
The company decided on April 21, 2022, on a directed share issue without consideration for the reward
payments based on the Restricted Share Plans 2018 and 2019. A total of 209,597 new B shares of Evli Plc
were entered into the Trade Register on June 27, 2023. The new shares were admitted to public trading on
Nasdaq Helsinki on June 28, 2023
Pursuant to Section 4 of the Articles of Association, the company converted 8,000 A shares into B shares on
July 25, 2023. The converted shares were admitted to public trading on Nasdaq Helsinki on July 26, 2023.
Pursuant to Section 4 of the Articles of Association, the company converted 33,336 A shares into B shares on
November 10, 2023. The converted shares were admitted to public trading on Nasdaq Helsinki on November 13,
2023.
The closing price of Evli Plc’s share on December 31, 2023, was EUR 19.70. The lowest closing price for the
period was EUR 15.25 and the highest was EUR 21.30. A total of 1,151,499 Evli Plc shares were traded during
the review period. The combined market value of A and B shares was EUR 521.8 million on December 31, 2023.
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 6,697 at the end of year. Finnish companies owned 53 percent and
the shareholding of Finnish private individuals was 27 percent. The remaining 19 percent of the shares were
owned by financial and insurance corporations, general government, non-profit-making entities, and foreign
investors. More information about the share and shareholders on pages 64-67.
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 realization 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 101-108.
Outlook for 2024
The business environment is expected to remain uncertain and difficult to predict in 2024. The expansion
of geopolitical risks, fears of inflation and interest rates, and concerns about the sustainability of economic
growth increase uncertainty in the markets.
Despite the challenging market environment, Evli has succeeded in strengthening its position in the market.
Growth is supported by a wide range of products and customer base. Due to our strong position and growth
prospects, we esti-mate that the operating result will be at or above the comparison period.
Helsinki, January 25, 2024
EVLI PLC
Board of Directors
GovernanceResponsibilityBusiness Overview Financial Review
64
Shares and Shareholders
Shares and Shareholders’ Equity
Evli Plc has two share series, series A and series B shares. One series A share confers twenty (20) votes and
one series B share 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 2023, the aggregate number of Evli’s shares was 26,484,899, with the series A shares
accounting for 14,425,812 shares and series B shares for 12,059,087 shares. The company held no own shares
at the end of December 2023. At the end of 2023, the company’s share capital amounted to EUR 53.7 million.
Trading in shares
At the end of December, 12,059,087 of Evli’s series B shares were publicly traded in Nasdaq Helsinki. The share
exchange between January and December totaled EUR 21.7 million while the number of Evli shares exchanged
was 1,151,499. During 2023, the highest closing price of the share was EUR 21.30 while the lowest closing price
was EUR 15.25. The share’s closing price on December 31, 2023, was EUR 19.70. Evli’s market capitalization,
calculated based on both the unlisted series A and the listed series B shares, was EUR 521.8 million on
December 31, 2023. Series A shares are valued at the year-end closing price of series B shares.
Shareholders
At the end of 2023, Evli had 6,697 shareholders in the book-entry register. The stake of Finnish companies
was 53 percent and that of private Finnish individuals was 27 percent. The remaining 20 percent of the shares
were owned by Financial and insurance institutions, public sector organizations, non-profit institutions and
foreign investors.
521.8
MARKET CAPITALISATION, M€
(2022: 398.1)
BREAKDOWN OF SHAREHOLDINGS
BY OWNER GROUP
BREAKDOWN OF VOTES
BY OWNER GROUP
Companies 53.4
Financial and insurance institutions 12.8
Public sector organizations 0.8
Households 27.2
Non-profit institutions 2.0
Foreigners 0.8
Companies 64.6
Financial and insurance institutions 16.0
Public sector organizations 0.1
Households 19.1
Non-profit institutions 0.2
Foreigners 0.1
GovernanceResponsibilityBusiness Overview Financial Review
65
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 17,95 77,016,420 25,62
2. Oy Scripo Ab 3,803,280 950,820 4,754,100 17,95 77,016,420 25,62
3. Ingman Group Oy Ab 1,860,000 905,000 2,765,000 10,44 38,105,000 12,68
4. Oy Fincorp Ab 2,319,780 330,394 2,650,174 10,01 46,725,994 15,55
5. Lehtimäki Jyri Maunu Olavi 533,728 117,031 650,759 2,46 10,791,591 3,59
6. Moomin Characters Oy Ltd 0 609,810 609,810 2,3 609,810 0,2
7. Tallberg Claes Henrik 369,756 32,588 402,344 1,52 7;427,708 2,47
8. Hollfast John Erik 328,320 71,680 400,000 1,51 6,638,080 2,21
9. Danske Invest Finnish Equity Fund 0 286,940 286,940 1,08 286,940 0,1
10. Umo Invest Oy 0 240,074 240,074 0,91 240,074 0,08
BREAKDOWN OF SHAREHOLDINGS BY OWNER GROUP 31.12.2023
Number of
shareholders % of shareholders Number of shares % of shares Number of votes % of votes
Companies 303 4.52 14,140,543 53.39 194,005,183 64.55
Financial and insurance institutions 27 0.40 3,384,295 12.78 48,244,402 16.05
Public sector organizations 3 0.05 206,583 0.78 206,583 0.07
Households 6,309 94.21 7,209,431 27.22 57,359,399 19.08
Non-profit institutions 24 0.36 521,280 1.97 521,280 0.17
Foreigners 31 0.46 220,290 0.83 238,480 0.08
Total 6,697 100.00 26,484,899 100.00 301,377,804 100.00
of which nominee registered 802,477 3.03 802,477 0.27
Number of shares issued 26,484,899 100.00 301,377,804 100.00
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 3,077 45.95 128,404 0.49 128,404 0.04
101 - 1,000 3,022 45.13 948,851 3.58 948,851 0.32
1,001 - 10,000 483 7.21 1,329,681 5.02 1,557,681 0.52
10,001 - 100,000 85 1.27 3,083,880 11.64 12,338,970 4.11
100,001 - 1,000,000 26 0.39 6,070,709 22.92 46,737,587 15.55
> 1,000,000 4 0.06 14,923,374 56.35 238,863,834 79.47
Total 6,697 100.00 26,484,899 100.00 301,377,804 100.00
of which nominee registered 9 802,477 3.03 802,477 0.27
Number of shares issued 26,484,899 100.00 301,377,804 100.00
GovernanceResponsibilityBusiness Overview Financial Review
66
Authorisations given to the Board of Directors
The Annual General Meeting authorized the Board of Directors to decide on the acquisition of the company’s own
series A and series B shares in one or more tranches. The total number of own series A shares to be acquired
may be a maximum of 1,448,515 shares, and the total number of own series B shares to be acquired may be
a maximum of 1,179,015 shares. The proposed number of shares represented approximately 10 percent of all
the shares of the company on the date of the Notice of the Annual General Meeting. Based on the authorization,
the company’s own shares may only be acquired with unrestricted equity. The Board of Directors will decide
how the company’s own shares will be acquired. Financial instruments such as derivatives may be used in the
purchasing. The company’s own shares may be acquired in other proportion than the shareholders’ proportional
shareholdings (private purchase). Shares may be acquired through public trading at the prevailing market
price formed for the series B shares in public trading on the Nasdaq Helsinki Oy on the date of acquisition. The
authorization replaced earlier unused authorizations to acquire the company’s own shares. The authorization will
be in force until the next Annual General Meeting but no later than until June 30, 2024.
The Annual General Meeting authorized the Board of Directors to decide on the issuance of shares and special
rights entitling to shares pursuant to Chapter 10, section 1, of the Companies Act in one or more tranches, for a
fee or free of charge. Based on the authorization, the number of shares issued or transferred, including shares
received based on special rights, may total a maximum of 2,627,530 series B shares. The proposed number of
shares represents approximately 10 percent of all the shares of the company on the date of the Notice of the
Annual General Meeting. Of the above-mentioned total number, however, a maximum of 262,753 shares may
be used as part of the company’s share-based incentive schemes, representing approximately one (1) percent
of all the shares of the company on the date of the Notice of the Annual General Meeting. The authorization will
entitle the Board of Directors to decide on all the terms and conditions related to the issuing of shares and
special rights entitling to shares, including the right to deviate from the shareholders’ pre-emptive subscription
rights. The Board of Directors may decide to issue either new shares or any own shares in the possession of the
company. The authorization replaced earlier unused authorizations concerning the issuance of shares as well as
the issuance of options and other special rights entitling to shares. The authorization will be in force until the end
of the next Annual General Meeting but no longer than until June 30, 2024.
Evli’s series A shares can be converted into series B shares under Article 4 of the Articles of Association.
During 2023, the company converted A shares into B shares as follows:
- 18,000 A shares were converted into B shares on May 8, 2023. Public trading with the converted shares
began at Nasdaq Helsinki Ltd on May 9, 2023.
- 8,000 A shares were converted into B shares on July 25, 2023. Public trading with the converted shares
began at Nasdaq Helsinki Ltd on July 26, 2023.
- 33,336 A shares were converted into B shares on November 10, 2023. Public trading with the converted
shares began at Nasdaq Helsinki Ltd on November 13, 2023.
Option and share-based incentive programs
Evli has five share-based incentive programs in place: 2021, 2021–2025, 2022, 1/2023–6/2026, and
9/2023–12/2026. The rewards based on the incentive program are given in Evli shares. Further information
on the incentive program on Evli’s webpage evli.com/en/investors and Note 2.8. Employee benefits as well as
from the remuneration policy on pages 147-149.
GovernanceResponsibilityBusiness Overview Financial Review
67
SHARE PRICE DEVELOPMENT AND TRADING VOLUME (SERIES B SHARES) FROM JANUARY 1 TO DECEMBER 31, 2023
Daily trading volume, Nasdaq Helsinki Closing price
Daily turnover, pcs
Price, EUR
Share ownership of executives
The share ownership of Evli’s Board members , including the holdings in the controlled corporations, were
7 535,962 shares in total on December 31, 2023, accounting for 28.5 percent of the total shares and 38.3
percent of voting rights. The members of the Board held no stock options.
At year-end, CEO Maunu Lehtimäki owned 650,759 shares which is 2.5 percent of the shares and 3.6 percent
of the voting rights. Moreover, he has been allocated 40,000 Evli shares in the context of the share-based
incentive program 9/2023–12/2026.
At year-end, other members of Evli Group’s Executive Group owned 660,083 shares in aggregate,
corresponding to 2.5 percent of the total shares and 2.4 percent of the voting rights. In addition, the Executive
Group has been allocated 180,000 Evli shares in total in the context of the share-based incentives program
9/2023-12/2026. Detailed information on ownership is given in the corporate governance report, on page
143.
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€
1.1.2023 14,485,148 11,790,154 26,275,302 53.7 26.6
Additions - 268,933 268,933 0.0 0.0
Decreases -59,336 - -59,336 0.0 -9.2
31.12.2023 14,425,812 12,059,087 26,484,899 53.7 17.5
Jan Feb March April May June July Aug Sep Oct Nov Dec
0
0,0
5,0
10,0
200 000
150 000
100 000
50 000
15,0
20,0
250 000
25,0
GovernanceResponsibilityBusiness Overview Financial Review
68
Information to shareholders
Basic share information
Evli Plc has two share series, series A and series B shares. One 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, 2023): 14,425,812
- B shares (December 31, 2023): 12,059,087
Investor calendar 2024
- Silent period December 26, 2023–January 25, 2024
- Financial Statements Bulletin 2023 on January 25, 2024
- Annual Report and Financial Statements for 2023 approximately on February 14, 2024
- Final registration date for voting at the Annual General Meeting on March 8, 2024, at 4:00 pm.
- Annual General Meeting in Helsinki on March 14, 2024
- Dividend record date on March 18, 2024
- Proposed dividend payment date on March 25, 2024
- Silent period March 23–April 22, 2024
- Interim Report January-March 2024 on April 22, 2024
- Silent period June 15–July 15, 2024
- Half-year Financial Report January-June 2024 on July 15, 2024
- Silent period September 22–October 25, 2024
- Interim Report January-September 2024 on October 25, 2024.
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/en/investors.
Annual General Meeting of shareholders
The Annual General Meeting (AGM) of Evli Plc will be held on March 14, 2024, 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 AGM 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 to 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 4, 2024.
Registration and voting
A shareholder wishing to participate in the AGM must register as a participant by March 8, 2024, at 4:00 pm.
Additional information about the registration at evli.com/agm2024.
Proposed distribution of dividends
The Board of Directors proposes to the Annual General Meeting of Shareholders that a dividend of EUR 1.16.
The Board of Directors proposes that the dividend is paid on March 25, 2024.
Evli’s investor communications
The main channel for Evli’s investor communications is the company’s website, evli.com/en/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.
2024
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
GovernanceResponsibilityBusiness Overview Financial Review
69
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, 2023 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 39.8 percent as at December 31, 2023. Detailed information on capital adequacy is
provided i the tabel to the right.
M€
IFR, 31.12.2023
Evli-Group
IFR, 31.12.2023
Evli Plc
Total equity 137.2 99.2
Common Equity Tier 1 capital (CET 1) before deductions 137.2 99.2
Deductions from CET 1, total -94.2 -74.3
Intangible assets -48.7 -16.0
Profit for the financial year -32.0 -25.7
Other deductions -13.6 -32.5
Common Equity Tier 1 capital (CET1) 42.9 24.9
Additional Tier 1 capital (AT1)
Additional Tier 1 capital (T1 = CET1 + AT1) 42.9 24.9
Tier 2 capital (T2)
Total own funds (TC = T1 + T2) 42.9 24.9
Own funds requirement (IFR)
Fixed overhead costs requirement 16.6 10.2
K-factor requirement 4.1 4.1
Minimum requirement 0.75 0.75
Total requirement (most restrictive) 16.6 10.2
CET1 compared to total requirement (%) 258.2% 244.0%
T1 compared to total requirement (%) 258.2% 244.0%
Total own funds compared to total requirement (%) 258.2% 244.0%
Total risk weighted assets 207.7 127.8
CET1 compared to risk weighted assets (%) 20.7% 19.5%
T1 compared to risk weighted assets (%) 20.7% 19.5%
Total own funds compared to risk weighted assets (%) 20.7% 19.5%
Excess own funds compared to total requirement 26.3 14.7
GovernanceResponsibilityBusiness Overview Financial Review
70
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 contracts1
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
1 Management, analysis, custody and client interest margin income from wealth management,
fund savings and incentive plans
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Financial statements 1.1.-31.12.2023 Contents
Consolidated comprehensive income statement ................................................72
Consolidated balance sheet .............................................................................................. 73
Consolidated statement of cash flow ..........................................................................74
Consolidated statement of changes in equity ....................................................... 75
Notes to the consolidated financial statements .............................................76
1. Accounting policies .....................................................................................................76
1.1. Basic information on the company .......................................................................76
1.2. Basis for preparation of the financial statements ...................................76
1.3. Translation of items denominated in foreign currency ......................... 77
1.4. Financial assets and liabilities .................................................................................. 77
1.5. Matters requiring management judgment ....................................................78
1.6. Provisions ........................................................................................................................... 78
1.7. Adoption of new and amended standards and interpretations
applicable in future financial years ...........................................................................78
1.8. Carve out basis of preparation ..............................................................................78
2. Notes to the consolidated income statement ............................................ 83
2.1. Commission income .......................................................................................................83
2.2. Net income from trading and fx ............................................................................84
2.3. Income from equity investments ........................................................................84
2.4. Interest income...............................................................................................................85
2.5. Other operating income .............................................................................................85
2.6. Commission expenses .................................................................................................85
2.7. Interest expenses ..........................................................................................................85
2.8. Personnel expenses .....................................................................................................86
2.8.1. Personnel count ...........................................................................................................86
2.8.2. Share based incentives ..........................................................................................87
2.9. Other administrative expenses .............................................................................88
2.10. Depreciation, amortization and impairment losses ................................88
2.11. Other operating expenses ......................................................................................88
2.12. Expected credit losses on loans and other receivables ......................88
2.13. Share of profit or loss of associate companies ........................................89
2.14. Income taxes ..................................................................................................................89
2.14.1. Analysis of income taxes ......................................................................................89
2.15. Earnings per share (EPS) ........................................................................................89
3. Notes to the consolidated balance sheet ......................................................90
3.1. Cash and cash equivalents ....................................................................................... 90
3.2. Claims on credit institutions ................................................................................... 90
3.3. Claims on the public and public sector entities by sector ................... 90
3.4. Debt securities ................................................................................................................ 90
3.5. Shares and participations ....................................................................................... 90
3.6. Derivative contracts ..................................................................................................... 91
3.7. Shares and participations in associates and joint ventures ................92
3.8. Intangible assets and goodwill ..............................................................................92
3.9. Property, plant and equipment ..............................................................................94
3.10. Right-of-use-assets ................................................................................................95
3.11. Other assets ....................................................................................................................95
3.12. Accrued income and prepayments ...................................................................95
3.13. Income tax receivables ............................................................................................95
3.14. Deferred taxes ............................................................................................................. 96
3.15. Liabilities to credit institutions and central banks ................................. 96
3.16. Debt securities issued to the public ................................................................ 96
3.16.1. Changes in debt securities issued to the public ................................... 96
3.17. Derivative contracts and other liabilities held for trading ................. 96
3.18. Other liabilities .............................................................................................................. 96
3.19. Accrued expenses and deferred income ..................................................... 96
3.20. income tax liability .......................................................................................................97
3.21. Deferred tax liabilities ...............................................................................................97
3.22. Equity capital..................................................................................................................97
3.23. Own shares held by the company ....................................................................97
4. Off-balance-sheet commitments ...................................................................98
4.1. Breakdown of off-balance sheet commitments .........................................98
5. Segment reporting ....................................................................................................99
5.1. Segment income statement .................................................................................... 99
5.2. Geographical income statement and balance sheet ............................. 100
6. Notes on risk position ............................................................................................ 101
Risk management and internal control .................................................................... 101
6.1. Market risk ....................................................................................................................... 102
6.1.1. Minimum capital requirement from market risk ................................... 103
6.1.2. Assets and liabilities in domestic and foreign currencies .............. 103
6.2. Liquidity risk ................................................................................................................... 104
6.2.1. Maturities of financial assets and liabilities ............................................. 104
6.3. Credit risk ........................................................................................................................ 105
6.3.1. Collaterals set and received ............................................................................. 105
6.3.2. Use of collaterals ..................................................................................................... 105
6.4. Expected credit losses ............................................................................................. 106
6.4.1. Distribution of assets and loans ..................................................................... 106
6.4.2. Expected credit losses based on IFRS 9 ...................................................107
6.5. Operational risk ............................................................................................................ 108
6.6. Continuity management .......................................................................................... 108
7. Other notes ................................................................................................................... 109
7.1. Classification of Assets and Liabilities ............................................................. 109
7.2. Financial instruments measured at fair value
through other comprehensive income .....................................................................111
7.3. Analysis of financial instruments categorized in level 3 .......................112
7.4. Fair values and book values of financial assets
and financial liabilities .........................................................................................................112
7.5. Asset under Management ........................................................................................112
8. Consolidation and related party ...................................................................... 113
Consolidation principles ....................................................................................................113
8.1. Corporate structure ..................................................................................................114
8.2. Financial success in companies with minority shareholders ...........115
8.3. Changes in corporate structure ........................................................................116
8.4. Holdings in consolidated associated companies .......................................116
8.5 Related party disclosures ....................................................................................... 117
8.6. Transactions with related parties .................................................................... 117
8.7 Fees paid to auditors ...................................................................................................118
9. Parent company’s financial statements ...................................................... 119
The figures in the financial statement are presented in millions of euros,
unless indicated otherwise.
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Consolidated comprehensive income statement , IFRS
Operating profit
Note | 2023 | 2022 | |
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 tangibleand intangible assets | 2.10 | - | - |
Other operating expenses | 2.11 | - | - |
Excpected credit losses on loans and other receivables | |||
Impairment losses 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 Minority interest | |||
Shareholders of parent company |
Note 2023 2022
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 | - | - | |
OTHER COMPREHENSIVE INCOME / LOSS FOR THE YEAR | |||
Attributable to Non-controlling interest | |||
Equity holders of parent company | |||
| 2.15 | |||
Earnings per share (EPS), fully diluted (EUR) | 2.15 | ||
Earnings per share (EPS), undiluted (EUR) |
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ASSETS | Note | 31.12.2023 | 31.12.2022 |
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 | 31.12.2023 | 31.12.2022 |
| 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
2023 | 2022 | |
| Operating activities | ||
Operating profit | ||
Adjustment for items not included in cash flow | ||
Income taxes paid | - | - |
Cash flow from operating activities before changes in operating | ||
Changes in operating asset | ||
Changes in operating liabilities | - | - |
Cash flow from operating activities | ||
| Investing activities | ||
Merger cash consideration | - | |
Dividends and changes in associated companies | ||
Change in intangible asset | - | - |
Change in property. plant and equipment | ||
Cash flow from investing activities | - | - |
| Financing activities | ||
Change in Loans from credit institutions | - | |
Equity transactions with the parent entity Evli Bank* | ||
Dividends paid | - | - |
Dividends paid to NCI | - | - |
Payments of loan/IFRS 16 Right of use asset | - | - |
Cash flow from financing activities | - | - |
Cash and cash equivalents at the beginning of period | ||
Cash received in merger | ||
Cash and cash equivalents at the end of period | ||
Change |
* Items from the comparative periods which are based on carve-out principles. The effect in 2022 is the difference between the equity in the carve-out financial statements and the actual split of
equity in the demerger agreement.
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Consolidated statement of changes in equity, IFRS
| Equity attributable | ||||||||
| Fair value | Translation | Fund of invested | Retained | to the owners | Non-controlling | |||
| Share Capital | reserve | difference | unrestricted equity | earnings | of parent entity | interest | Total equity | |
Equity 31.12.2021 | ||||||||
Translation difference | - | - | - | - | ||||
Profit/loss for the period | ||||||||
Distributions | - | - | - | - | ||||
Fair value adjustment of Alisa Bank Plc shares | - | - | - | |||||
Other changes | - | |||||||
Equity transactions with Evli Bank | ||||||||
Effect of demerger 2.4.2022 | - | |||||||
Equity 31.12.2022 | - | - | ||||||
Translation difference | - | - | - | |||||
Profit/loss for the period | ||||||||
Dividends | - | - | - | - | - | |||
Fair value adjustment of Alisa Bank Plc shares | - | - | - | |||||
Other changes | - | - | - | - | ||||
Equity 31.12.2023 | - | - |
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Notes to the consolidated financial statements
1. Accounting policies
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CHANGE IN EQUITY FOR THE CARVE-OUT PERIOD
Share Capital
Fair value
reserve
Translation
difference
Fund of invested
unrestricted equity
Retained
earnings
Equity attributable
to the owners
of parent entity
Non-controlling
interest Total equity
Equity 31.12.2021 0.0 0.0 0.1 0.0 96.8 96.9 5.2 102.1
Translation difference - - -0.2 - - -0.2 - -0.2
Profit/loss for the period - - - - 6.9 6.9 0.8 7.7
Distributions - - - - -25.3 -25.3 -3.9 -29.1
Other changes - - - - 1.1 1.1 0.0 1.1
Equity transactions with Evli Bank - - - - -0.6 -0.6 - -0.6
Equity 1.4.2022 0.0 0.0 -0.1 0.0 78.9 78.8 2.2 81.0
Translation difference - - -0.4 - - -0.4 -0.3 -0.6
Profit/loss for the period - - - - 13.9 13.9 3.5 17.3
Dividends - - - - 0.0 0.0 -0.3 -0.3
Fair value adjustment of Alisa Bank Plc shares - -2.7 - - - -2.7 - -2.7
Other changes - - - 0.0 0.7 0.7 -0.4 0.3
Equity transactions with Evli Bank 30.0 - - - 8.9 38.9 - 38.9
effect of demerger 2.4.2022 23.7 - - 26.7 -40.8 9.6 - 9.6
Equity 31.12.2022 53.7 -2.7 -0.5 26.6 61.5 138.7 4.7 143.4
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MANAGEMENT JUDGMENT
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2.8.1. PERSONNEL COUNT
2023 2022
Number of personnel during the period, average 354 312
Number of personnel at the end of the period 354 344
Employees by business segment at the end of the period
Wealth Management and Investor Clients 218 208
Advisory and Corporate Clients 87 83
Group Operations 49 53
Total 354 344
Employees by geographic market at the end of the period
Finland 332 322
Sweden 20 20
Arab Emirates 2 2
Total 354 344
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2.15. EARNINGS PER SHARE (EPS)
2023 2022
Profit for the year attributable to shareholders in Evli Bank Plc 28.8 20.7
Avarage number of A-shares 14,455,480 14,489,148
Avarage number of B-shares 11,924,621 10,577,222
Share and option rights for share-based incentive programs
1.09 0.83
Own shares 883,000 670,673
Comprehensive income attributable to shareholders in Evli Bank Plc 1.05 0.81
As both A and B series shares entitle holders to equal amounts of the company’s profit, these are not shown
separately.
2.13. SHARE OF PROFIT OR LOSS OF ASSOCIATES
2023 2022
Northern Horizon Capital A/S 0.7 0.3
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3.13. INCOME TAX RECEIVABLES
2023 2022
Income tax receivables 1.3 1.0
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5.1. SEGMENT INCOME STATEMENT
2023 2022
Wealth
Management and
Investor Clients
Advisory
and Corporate
Clients
Group
Operations Unallocated Group
Wealth
Management and
Investor Clients
Advisory
and Corporate
Clients
Group
Operations Unallocated Group
REVENUE
Net Interest Income 0.0 0.0 4.8 0.0 4.8 0.0 0.0 0.1 0.0 0.1
Commission income and expense. net 84.2 15.8 0.0 0.0 100.0 75.7 16.4 0.0 0.0 92.1
Net income from securities transactions and foreign exchange dealing 0.0 0.0 3.2 0.0 3.2 0.0 0.0 3.7 0.0 3.7
Other operating income 0.0 0.0 0.8 0.0 0.8 0.0 0.0 0.1 0.0 0.1
External sales 84.2 15.8 8.7 0.0 108.7 75.7 16.4 4.0 0.0 96.1
Inter-segment sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total revenue 84.2 15.8 8.7 0.0 108.7 75.7 16.4 4.0 0.0 96.1
Timing of revenue recognition
Over time 77.4 8.1 0.0 0.0 85.6 67.1 7.5 0.0 0.0 74.5
At a point of time 6.8 7.6 0.0 0.0 14.4 8.5 9.0 0.0 0.0 17.6
RESULT
Segment operating expenses -39.3 -10.8 -13.6 0.0 -63.6 -35.6 -9.9 -14.1 0.0 -59.7
Business units operating profit before depreciations and Group allocations 44.9 5.0 -4.9 0.0 45.1 40.0 6.5 -10.1 0.0 36.4
Depreciation. amortisation and write-down -1.6 -0.5 -2.7 0.0 -4.8 -1.2 -0.4 -3.5 0.0 -5.1
Impairment losses on loans and other receivables 0.0 0.0 -0.7 0.0 -0.7 -0.7 0.0 0.0 0.0 -0.7
Share of profits (losses) of associates 0.0 0.0 0.7 0.0 0.7 0.0 0.0 0.3 0.0 0.3
Business units operating profit before Group allocations 43.4 4.5 -7.7 0.0 40.2 38.1 6.1 -13.3 0.0 30.9
Allocated corporate expenses -10.4 -1.8 12.2 0.0 0.0 -10.7 -1.9 12.6 0.0 0.0
Operating profit including Group allocations 33.0 2.7 4.5 0.0 40.2 27.4 4.2 -0.8 0.0 30.9
Income taxes 0.0 0.0 0.0 -8.2 -8.2 0.0 0.0 0.0 -5.8 -5.8
Segment profit/loss after taxes 33.0 2.7 4.5 -8.2 32.0 27.4 4.2 -0.8 -5.8 25.1
5. Segment reporting
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5.2. GEOGRAPHICAL REVENUES
2023 2022
Finland 103.5 88.8
Sweden 4.1 6.2
Other countries 1.2 1.1
Total 108.7 96.1
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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.
- Support an disturbance free implementation of the Group’s strategy and business.
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 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 and 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
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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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6.5. Operational risks
Operational risks mean a direct or indirect danger or financial loss that is caused by insufficient or failed
internal processes; systems, personnel or external factors. Operational risks also include legal risks and
compliance and data security risks. Therefore, operational risks are associated, for example, with the
management system, operative processes, information systems, persons and various external factors or
threats. In addition to the direct risk of financial loss, operational risk can also take the form of a weakening or
loss of reputation or trust.
Operational risks are seen as a key area of risk management at Evli. Each business unit is responsible for
managing the operational risks of its own business area. Evli continuously pays special attention to the
identification, monitoring and control of operational risks. Business units carry out regular self-assessments
of the operational risks of products, services, persons, operating processes and systems. Evli has prepared
a separate group-wide procedure for identifying, assessing, controlling and reporting risks. Through
operational risk self-assessment, the company aims to identify critical risks and identify appropriate
measures to minimize or control them. The reporting of disruptions to operations and errors and losses
caused by operational risks to the authorities is carried out in accordance with established requirements.
The basic approach to operational risk management is to prevent risks on the one hand, and to minimize
the damage caused by risks on the other. To this end, Evli has, among other things, comprehensive internal
guidelines, which are monitored. Employees are regularly trained, and daily work processes and systems
are actively monitored. Security is ensured and efforts have been made to duplicate critical systems to
ensure continuity. In addition, the company has prepared for possible risks by, among other things, taking out
comprehensive insurance policies.
Evli operates in an industry governed by strict rules and regulations. The company has a separate Compliance
function, which aims to ensure that Evli always complies with laws and regulations. While the materialization
of operational risk often leads to reputational and financial damage, the materialization of compliance risk can
also lead to sanctions imposed by the authorities. Responsibility for compliance and supervision always lies
with top and executive management, and with all managers. Nevertheless, every Evli employee is responsible
for complying with rules and regulations. Compliance risk is managed by monitoring legislative developments
and by continuously training employees internally on upcoming regulatory changes.
Modern investment services are essentially digital and digital services are a key part of Evli’s strategy. At the
heart of everything Evli does is information systems that involve data protection and security risks. One of the
key objectives of all of the Group’s functions is the efficient, error free and secure processing of information
in a variety of formats. The confidentiality, accuracy and usability of such information is protected at all times.
Evli has designated data protection and information security managers who are responsible for developing,
monitoring, guiding and reporting on data protection and security to management.
The capital requirement for operational risks is part of the capital requirement set out in the Investment
Firms Regulation. The own funds requirement calculated on the basis of the Evli Group’s fixed overheads was
EUR 16.6 million and the Group’s own funds amounted to EUR 42.9 million at December 31, 2023.
6.6. Continuity management
The company’s operations may be threatened by external or internal crises of a physical or other nature. In
crisis situations, an organization must:
- be prepared
- have crisis management capability
- have prepared by means of drills.
To ensure operational continuity, Evli has a continuity plan that covers all of its functions. The purpose of
continuity planning is to ensure that, in the event of certain threats materializing, it is possible to ensure the
safety of the Group’s customers and employees, to protect tangible and intangible property, to comply with
the law and other regulations, to maintain the targeted level of customer service and internal operations
and to preserve the trust of stakeholders. Each continuity plan will include system recovery plans, including
guidelines on how to get information systems into operating condition in situations of severe failure, how
to continue operations and how to return operations to normal. In addition, the company has compiled a
recovery plan that complies with official requirements.
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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%)
EAB Service Ltd
(100%)
Elite Sijoitus Oy
(100%)
EAB Private
Equity Oy
(65%)
Elite
Rahoitus Oy
(100%)
EAB Funds’ GP
companies
Elite Assurance
Services Ltd
(100%)
Entities outside the group
Companies in which the Group has a majority holding but in which a third party has control are not consolidated in
the consolidated financial statements. In addition, holding companies owned in connection with the management
of customer company incentive programs have not been consolidated. Evli is not entitled to the variable returns
of these holding companies and Evli does not bear risk in the companies’ assets or liabilities. Furthermore, funds
managed on behalf of clients are also not consolidated, since the Group has no control over them.
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Parent company’s income statement
Note 2023 2022
Fee and commission income 9.1 49.1 25.7
Net income from securities transactions 9.2 3.1 4.3
Income from equity investments 9.3
Subsidiaries 14.7 0.0
Associated companies 0.4 0.2
Other 0.1 0.0
Interest income 9.4 8.7 1.3
Other operating income 9.5 6.8 11.2
INCOME TOTAL 82.9 42.7
Fee and commission expenses 9.6 -3.2 -2.6
Interest expenses 9.7 -4.0 -1.2
NET REVENUE 75.7 38.9
Administrative expenses
Personnel expenses 9.8.1 -21.3 -19.6
Other administrative expenses 9.9 -14.0 -10.6
Depreciation and amortization on tangible and intangible assets 9.10 -4.9 -4.6
Other operating expenses 9.11 -3.1 -1.7
Expected credit losses on loans and other receivables 9.12 0.0 0.0
Impairment losses on other financial assets -0.8 0.0
OPERATING PROFIT/LOSS 31.7 2.3
Appropriations -2.8
Income taxes 9.13 -3.1 -0.4
PROFIT / LOSS FOR THE FINANCIAL YEAR 25.7 2.0
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Parent company’s balance sheet
ASSETS Note 2023 2022
Cash and equivalents 9.14 0.0 0.0
Claims on credit institutions 9.15
Repayable on demand
88.5 45.8
Other
4.2 22.9
Claims on the public and public sector entities 9.16 37.4 55.0
Debt securities 9.17 2.0 2.0
Shares and participations 9.18 40.4 39.1
Shares in associated companies
9.20 6.2 6.9
Shares in subsidiaries
20.4 22.2
Derivative contracts 9.19 5.9 0.4
Intangible assets and goodwill 9.21 16.0 20.1
Property. plant and equipment 9.22 1.0 0.8
Other assets 9.23 10.1 7 7.4
Accrued income and prepayments 9.24 1.4 1.3
Deferred tax assets 9.25 1.3 0.7
TOTAL ASSETS 234.8 294.7
LIABILITIES AND EQUITY Note 2023 2022
LIABILITIES
Liabilities to credit institutions 9.26 3.4 0.0
Liabilities to the public and public sector entities 0.0 0.0
Debt securities issued to the public 9.27 106.7 106.3
Derivative contracts and other liabilities held for trading 9.28 6.0 0.4
Other liabilities 9.29 5.7 66.0
Accrued expenses and deferred income 9.30 13.7 16.0
Deferred tax liabilities 0.0 0.0
TOTAL LIABILITIES 135.5 188.8
EQUITY
Share capital 53.7 53.7
Fair value reserve -5.1 -2.7
Fund of invested non-restricted equity 15.9 25.1
Retained earnings 8.9 27.7
Profit/loss for financial year 25.7 2.0
TOTAL EQUITY 9.31 99.2 105.9
TOTAL LIABILITIES AND EQUITY 234.8 294.7
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Parent company’s statement of cash flow
2023 2022
Operating activities
Operating profit 31.7 2.3
Adjustment for items not included in cash flow 3.6 5.6
Income taxes paid -1.1 -2.2
Cash flow from operating activities before changes in operating assets
and liabilities
34.2 5.7
Changes in operating asset 38.0 -10.6
Changes in operating liabiities -18.7 4.7
Cash flow from operating activities 53.5 -0.2
Investing activities
Cash consideration in EAB Group Plc merger 0.0 -3.0
Change in participating interests and subsidiaries -1.9 0.2
Change in intangible asset -0.5 -0.4
Change in property. plant and equipment -0.3 -0.1
Cash flow from investing activities -2.6 -3.3
Financing activities
Change in loans from credit institutions 3.3 -4.8
Distributions -30.2 0.0
Cash flow from financing activities -26.9 -4.8
Cash and cash equivalents at the beginning of period 68.7 78.1
Cash received through merger of EAB Group Plc 0.0 1.1
Cash and cash equivalents at the end of year 92.7 68.7
Change 23.9 -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. The financial
years are not comparable regarding to the income statement. Evli Oyj was established 2.4.2022
Employee benefits
The Evli Group finances all its retirement plans as contributions to pension insurance companies.
Income and deferred 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.
Brokerage receivables and liabilities
The brokerage receivables and liabilities have been netted in 2023 according to FSA’s regulations.
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
2023 2022
Credit related fees and commissions 0.0 0.0
Income from payment transactions 0.0 0.0
Insurance brokerage 0.0 0.0
Advisory services 1.7 1.1
Securities brokerage 6.0 5.1
Securities issue 0.0 0.0
Mutual funds 32.3 14.3
Asset management 6.5 4.1
Custody services 0.6 0.4
Other operations 1.9 0.8
Commission income, total 49.1 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
Gains and
losses on sales
Changes in
fair value
Other
items Total
2023
Debt securities 0.0 0.0 - 0.0
Shares and derivative contracts 0.2 1.9 - 2.1
Net income from securities transactions, total 0.2 1.9 - 2.1
Net income from foreign exchange operations 0.6 0.4 - 1.0
Net income from securities transactions
and foreign exchange operations, total
0.8 2.3 - 3.1
2022
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
2023 2022
Dividends from financial assets valued at fair value 0.1 0.0
Dividends from subsidiaries 14.7 0.0
Dividends from associated companies 0.4 0.2
Income from equity investments, total 15.2 0.2
9.4. INTEREST INCOME
2023 2022
Claims on credit institutions 7.2 0.7
Claims on the public and public sector entities 1.3 0.6
Other interest income 0.2 0.0
Interest income, total 8.7 1.3
9.5. OTHER OPERATING INCOME
2023 2022
Rental income 0.0 0.0
Gain on sale of owner-occupied investment properties 0.0 0.0
Other income 6.8 11.2
Other operating income, total 6.8 11.2
9.6. FEE AND COMMISSION EXPENSES
2023 2022
Trading fees paid to stock exchanges -0.2 -0.5
Other commission expenses -3.1 -2.1
Commission expenses, total -3.2 -2.6
9.7. INTEREST EXPENSES
2023 2022
Liabilities to the public, public sector entities and credit institutions -0.0 -0.3
Debt securities issued to the public -4.0 -0.8
Other interest expenses -0.0 -0.1
Interest expenses, total -4.0 -1.2
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9.8.1. PERSONNEL EXPENSES
2023 2022
Wages and salaries -15.7 -14.1
Social security costs - -
Pension expenses -2.2 -2.6
Other social security costs -0.4 -0.4
Equity-settled share options -2.9 -2.5
Employee benefits, total -21.3 -19.6
Detailed information on executive remuneration can be found in the remuneration annex of the annual report.
9.8.2. PERSONNEL COUNT
2023 2022
Number of personnel during the period, average 181 158
Number of personnel at the end of the period 184 161
Number of employees per segment
Wealth Management and Investor Clients 131 112
Advisory and Corporate Clients 7 6
Group Operations 46 43
Total 184 161
End of period Change
Permanent full time personnel 160 25
Permanent part time personnel 0 0
Fixed term personnel 24 -2
Total 184 23
9.9. OTHER ADMINISTRATIVE EXPENSES
2023 2022
Office expenses -1.8 -1.4
IT and infosystems -6.9 -4.9
Business expenses -0.9 -0.5
Travel expenses -0.4 -0.2
Car costs -0.1 0.0
Other HR related expenses -0.9 -0.6
Marketing expenses -0.7 -0.4
Banking and custodian expenses -0.6 -0.5
External services -1.6 -2.1
Other administrative expenses, total -13.9 -10.6
9.10. DEPRECIATION AND AMORTIZATION ON TANGIBLE AND INTANGIBLE ASSETS
2023 2022
Applications and software -1.8 -3.5
Other intangible assets -0.2 -0.2
Leasehold improvements - 0.0
Equipment and furniture -0.2 -0.1
Depreciation of goodwill -2.8 -0.8
Depreciation, amortization and impaiment losses, total -4.9 -4.6
9.11. OTHER OPERATING EXPENSES
2023 2022
Supervision expenses -0.9 -0.1
Rental expenses -1.8 -1.4
Other expenses -0.4 -0.2
Other operating expenses, total -3.1 -1.7
9.12. EXPECTED CREDIT LOSSES ON LOANS AND OTHER RECEIVABLES
2023 2022
Claims on the public and public sector entities
Expected credit losses on group level 0.0 0.0
Expected credit losses individual 0.0 0.0
Guarantees and other off-balance sheet commitments 0.0 0.0
Sales receivables 0.0 0.0
Realised loan losses 0.0 0.0
Impairment losses on other financial assets -0.8 0.0
Impairment losses, total -0.7 0.0
9.13. INCOME TAXES
2023 2022
Current tax expense -3.0 0.0
Taxes from previous years -0.1 0.0
Deferred taxes 0.0 -0.4
Other taxes 0.0 0.0
Income taxes, total -3.1 -0.4
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Parent company’s notes to balance sheet
9.14. CASH AND EQUIVALENTS
2023 2022
Petty cash 0.0 0.0
Balances with central banks 0.0 0.0
Other 0.0 0.0
Cash and cash equivalents total 0.0 0.0
9.15. CLAIMS ON CREDIT INSTITUTIONS
2023 2022
Repayable on demand
Domestic credit institutions 88.4 45.8
Foreign credit institutions 0.0 0.0
Repayable on demand, total 88.5 45.8
Other than repayable on demand
Domestic credit institutions 0.3 2.1
Foreign credit institutions 3.9 20.9
Other than repayable on demand, total 4.2 22.9
Claims on credit institutions, total 92.7 68.7
9.16. CLAIMS ON THE PUBLIC AND PUBLIC SECTOR ENTITIES
2023 2022
Enterprises and housing associations 7.0 12.9
Financial and insurance corporations 0.3 0.3
Households 8.3 17.4
Foreign countries 3.5 3.6
Group companies 18.3 20.8
Claims on the public and public sector entities by sector, total 37.4 55.0
9.17. DEBT SECURITIES
2023 2022
Publicly quoted 0.0 0.0
Others
Bonds issued by banks 2.0 2.0
Other debt securities 0.0 0.0
Debt securities, total 2.0 2.0
Debt securities are valued at fair value and relate to Finnish investments.
9.18. SHARES AND PARTICIPATIONS
2023 2022
Publicly quoted
Held for trading 0.9 0.0
Other 28.6 29.4
Shares and participations, total 29.6 29.4
Others
Held for trading 0.0 0.0
Other 10.8 9.7
Others, total 10.8 9.7
Shares and participations, total 40.4 39.1
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
2023 Less than 1 year 1-5 years 5-15 years Fair value (+/-) ASSETS LIABILITIES
Held for trading
Interest rate swaps 0.1 5.7 0.2 -0.1 5.9 6.0
Futures - - - - - -
Options bought - - - - - -
Options sold - - - - - -
Currency-linked derivatives - - - - - -
Held for trading, total 0.1 5.7 0.2 -0.1 5.9 6.0
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 - - - - - -
Options bought - - - - - -
Options sold - - - - - -
Currency-linked derivatives - - - - - -
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
2023 2022
At the beginning of the period 6.9 5.4
Additions 0.1 1.5
Disposals -0.8 0.0
At the end of the period 6.2 6.9
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9.21. INTANGIBLE ASSETS AND GOODWILL
2023 2022
Goodwill
Cost at 1.1 19.2 1.2
Increases/Decreases - 18.0
Cost at 31.12. 19.2 19.2
Accumulated depreciation at 1.1 -1.6 -0.8
Impairment losses for the period -2.8 0.0
Accumulated depreciation at 31.12. -4.4 -1.6
Book value at 31.12. 14.8 17.5
Software or projects in progress
Cost at 1.1 0.0 0.0
Increases/Decreases 0.0 0.0
Cost at 31.12. 0.0 0.0
Book value at 31.12. 0.0 0.0
Applications and software
Cost at 1.1 22.2 21.5
Increases/Decreases 0.5 0.7
Cost at 31.12. 22.7 22.2
Accumulated amortisation and impairment losses at 1.1 -19.7 -17.7
Amortisation for the period -1.8 -2.0
Accumulated amortisation and impairment losses at 31.12. -21.5 -19.7
Book value at 31.12. 1.2 2.5
Other intangible assets
Cost at 1.1 2.3 2.3
Increases/Decreases 0.2 0.0
Cost at 31.12. 2.5 2.3
Accumulated amortisation and impairment losses at 1.1 -2.3 -2.1
Amortisation for the period -0.2 -0.2
Accumulated amortisation and impairment losses at 31.12. -2.5 -2.3
Book value at 31.12. 0.0 0.0
The most significant "Other intangible assets" are client relationships.
Book value of intangible assets at 31.12. 16.0 20.1
Intangible assets, total at 31.12. 16.0 20.1
9.22. PROPERTY, PLANT AND EQUIPMENT
2023 2022
Equipment and furniture
Cost at 1.1 1.7 1.7
Exchange difference - 0.0
Increases/Decreases 0.3 0.1
Cost at 31.12. 2.1 1.7
Accumulated amortisation and impairment losses at 1.1 -1.5 -1.3
Translation difference from depreciation for the period - 0.0
Amortisation for the period -0.2 -0.2
Accumulated amortisation and impairment losses at 31.12. -1.7 -1.5
Book value at 31.12. 0.4 0.2
Leasehold improvements
Cost at 1.1 1.4 1.4
Cost at 31.12. 1.4 1.4
Accumulated depreciation at 1.1 -1.4 -1.4
Depreciation for the period 0.0 0.0
Accumulated depreciation at 31.12. -1.4 -1.4
Book value at 31.12. 0.0 0.0
Other tangible assets
Cost at 1.1 0.6 0.6
Cost at 31.12. 0.6 0.6
Book value at 31.12. 0.6 0.6
Property, plant and equipment, total at 31.12. 1.0 0.8
Book value of tangible assets at 31.12. 1.0 0.8
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9.23. OTHER ASSETS
2023 2022
Securities sale receivables 1.2 1.3
Commission receivables 3.3 3.8
Securities brokerage receivables* 0.1 63.2
Other receivables** 5.4 9.2
Other assets total 10.1 7 7.4
* The presentation of brokerage receivables and liabilities has changed 2023. The items are netted in 2023.
**Other receivables include, inter alia, intra-group receivables.
9.24. ACCRUED INCOME AND PREPAYMENTS
2023 2022
Interest 0.1 0.2
Taxes 0.1 0.0
Staff-related 0.1 0.0
Other items 1.1 1.1
Accrued income and prepayments total 1.4 1.3
9.25. DEFERRED TAX ASSETS
2023 2022
Tax assets
Due to timing differences* 1.3 0.7
Other temporary differences - -
From tax losses carried forward - -
Deferred taxes total 1.3 0.7
Deferred tax assets result mainly from the valuation of Alisa Bank shares regognized directly in equity.
9.26. LIABILITIES TO CREDIT INSTITUTIONS AND CENTRAL BANKS
2023 2022
Credit institutions
Repayable on demand 0.0 0.0
Other than repayable on demand 3.4 0.0
Liabilities to credit institutions and central banks, total 3.4 0.0
9.27. DEBT SECURITIES ISSUED TO THE PUBLIC
2023 2022
Certificate of deposits 0.0 0,0
Bonds 106.7 106.3
Debt securities issued to the public, total 106.7 106.3
CHANGES IN BONDS ISSUED TO THE PUBLIC 2023 2022
Issues 34.1 30.9
Repurchases 23.7 16.0
9.28. DERIVATIVE CONTRACTS AND OTHER LIABILITIES HELD FOR TRADING
2023 2022
Derivative contracts 6.0 0.4
Due to short selling of shares 0.0 0.0
Derivative contracts and other liabilities held for trading, total 6.0 0.4
9.29. OTHER LIABILITIES
2023 2022
Securities brokerage liabilities** 0.0 62.5
Securities purchase liabilities 0.0 0.0
Finance lease payables 0.0 0.0
Right-of-use liability 0.0 0.0
Income tax payable 0.1 0.0
Personnel related 0.5 0.6
Other short-term liabilities** 5.0 2.6
Prepayments of cash customers 0.0 0.0
VAT payable 0.2 0.3
Other liabilities, total 5.7 66.0
*The presentation of brokerage receivables and liabilities has changed 2023. The items are netted in 2023.
**Other short-term liabilities are trading-related short-term liabilities
9.30. ACCRUED EXPENSES AND DEFERRED INCOME
2023 2022
Interest 0.0 0.0
Tax payables 2.5 0.4
Personnel related 10.0 12.5
Other accrued expenses 1.2 3.2
Accrued expenses and deferred income, total 13.7 16.0
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9.31. SHARE CAPITAL
Shares
EUR
2023 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 1.1. 14 485 148 11 790 154 26 275 302 53.7
-2.7 25.1 29.7
105.9
Additions - 268 933 268 933 -
- - 25.9
25.9
Decreases -59 336 - -59 336 -
-2.3 -9 -21
-32.6
At the end of period 31.12. 14 425 812 12 059 087 26 484 899 53.7
-5.1 15.9 34.6
99.2
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
32.0
Decreases -8,000 - -8,000 0.0
-2.7 0.0 0.0
-2.7
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
2023 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 92.7 92.7 0.0 0.0 0.0
Claims on the public and public sector entities 37.3 2.0 7.2 28.2 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 40.4 29.6 0.0 0.0 10.8
Derivative contracts 6.0 0.2 -0.4 5.9 0.2
Accrued interest 0.1 0.0 0.1 0.0 0.0
Other assets 54.3 54.3 0.0 0.0 0.0
Liabilities
Financial liabilities at amortized cost
Liabilities to credit institutions 3.4 3.4 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 106.7 6.0 11.7 79.6 9.4
Financial liabilities at fair value through profit or loss 6.0 0.2 -0.4 5.9 0.2
Accrued interest, debt 0.0 0.0 0.0 0.0 0.0
Other liabilities 62.3 62.3 0.0 0.0 0.0
Off-balance sheet commitments 5.3 0.0 0.0 2.6 2.8
Rental commitmens
10.4 0.6 1.4 7.6 0.8
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2022
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 7 7.4 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
2023
Domestic
currency
Foreign
currency Total
Assets
Financial assets at amortized cost
Cash and cash equivalents - - -
Claims on credit institutions 84.7 8.0 92.7
Claims on the public and public sector entities 37.0 0.4 37.4
Financial assets at fair value through profit or loss
Debt securities 2.0 - 2.0
Shares and participations 56.4 4.4 60.8
Derivative contracts 5.9 - 5.9
Other asset items 33.5 2.5 36.0
Total 219.4 15.3 234.8
Liabilities
Financial liabilities at amortized cost
Liabilities to credit institutions 3.4 - 3.4
Liabilities to the public and public sector entities - - -
Debt securities issued to the public 106.7 - 106.7
Financial liabilities at fair value through profit or loss
Derivative contracts 6.0 - 6.0
Other liabilities items 16.7 2.7 19.4
Tota 132.8 2.7 135.5
2022
Domestic
currency
Foreign
currency Total
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
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9.34. SECURITIES LENDING
2023 2022
Market value of securities lending at 31.12., lent in 0.0 0.0
Market value of securities lending at 31.12., lent out 0.0 0.0
9.35. FAIR VALUES AND BOOK VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES
2023 Book value Fair value Level 1 Level 2 Level 3
Financial assets
Liquid assets - -
Claims on credit institutions 92.7 92.7
Claims on the public and public sector entities 37.4 37.4
Debt securities 2.0 2.0 2.0
Shares and participations 40.4 40.4 29.6 10.8
Derivative contracts 5.9 5.9 5.9
Financial liabilities
Liabilities to credit institutions 3.4 3.4
Liabilities to the public and public sector entities 0.0 0.0
Debt securities issued to the public 106.7 105.7
Derivative contracts and other liabilities held for trading 6.0 6.0 6.0
2022 Book value Fair value Level 1 Level 2 Level 3
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 2.0
Shares and participations 39.1 39.1 29.5 9.6
Derivative contracts 0.4 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 0.4
9.36. RISK MANAGEMENT - GIVEN AND RECEIVED COLLATERALS
2023
Fair value of en-
cumbered assets
Fair value of un-
encumbered
assets
of which
usable as
collateral
ASSETS
Liquid assets and Central Bank deposits - - -
Claims on credit institutions 4.2 88.5 88.5
Claims on the public and public sector entities - 37.4 -
Debt securities - 2.0 2.0
Shares and participations - 40.4 40.4
Other assets - 66.6 -
Total 4.2 234.8 130.8
2022
Fair value of en-
cumbered assets
Fair value of un-
encumbered
assets
of which
usable as
collateral
ASSETS
Liquid assets and Central Bank deposits 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 2.0
Shares and participations 0.0 39.1 39.1
Other assets 0.0 7 7.4 0.0
Total 22.9 219.3 86.9
USAGE OF COLLATERAL 2023 2022
Collaterals placed
Markeplace collateral, stock- and derivatives trades 0.1 0.1
Collateral for OTC derivatives trades 3.9 22.8
Collateral for securities lending 0.1 0.0
Total 4.2 22.9
Received collateral
Received cash 3.4 0.0
Received securities 96.9 166.9
Total 100.3 166.9
GovernanceResponsibilityBusiness Overview Financial Review
133
9.37. FEES PAID TO AUDITORS
2023 2022
Tilintarkastus
Ernst & Young Oy 0.1 0.0
PricewaterhouseCoopers Oy 0.1 0.2
Assignments referred to in section 1, subsection 1, point 2 of the Audit Act
Ernst & Young Oy 0.0 0.0
PricewaterhouseCoopers Oy 0.0 0.1
Tax advice
Ernst & Young Oy 0.0 0.0
PricewaterhouseCoopers Oy 0.0 0.0
Other services
Ernst & Young Oy 0.0 0.0
PricewaterhouseCoopers Oy 0.0 0.0
Total 0.2 0.3
9.38. BREAKDOWN OF OFF-BALANCE SHEET COMMITMENTS
2023 2022
Commitments given to a third party on behalf of a customer 0.0 0.0
Irrevocable commitments given in favour of a customer 2.8 2.8
Rental commitments 10.4 12.9
Unused credit facilities, given to clients 2.6 3.7
Business mortgages 0.0 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 Evli Group’s (“Evli”) parent company, which is listed on the
Nasdaq Helsinki stock exchange. Evli is Finland’s leading asset man-
ager, serving institutional, corporate and private clients. Its services
include mutual funds, asset management and capital markets ser-
vices, alternative investment products, corporate analysis, planning
and management of incentive systems, and M&A services.
Evli Plc
Evli Plc
The ESEF report has been assured by the auditors.
GovernanceResponsibilityBusiness Overview Financial Review
134
The Board of Directors’ proposal to the general meeting
for the distribution of profits
The parent company’s distributable assets on December 31, 2023 totaled EUR 50.5 million of which EUR 34.6 million were retained earnings and EUR 15.9 million
were in the reserve for invested unrestricted equity. When calculating the distributable assets, the parent company’s capitalized development costs of EUR 1.2
million need to be deducted. The Board of Directors proposes to the Annual General Meeting of Shareholders that a dividend of EUR 1.16 per share be paid. 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 30.7 million.
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, 2024
Auditor’s Note
Based on the auditing an audit report has been issued today.
Helsinki, February 16, 2024
Ernst & Young Oy (EY)
Authorized Public Accountants
Henrik Andersin
Chairman
Miikka Hietala
Authorised Public Accountant
Robert Ingman
Christina Dahlblom
Antti Kuljukka
Fredrik Hacklin
Maunu Lehtimäki
CEO
Sari Helander
GovernanceResponsibilityBusiness Overview Financial Review
135
Auditor’s report
(Translation of the Finnish Original)
To the Annual General Meeting of Evli Oyj
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Evli Oyj (business identity code 3239286-2) for the year
ended 31 December, 2023. The financial statements comprise the consolidated balance sheet, statement of
comprehensive income, statement of changes in equity, statement of cash flows and notes, including material
accounting policy information, as well as the parent company’s balance sheet, income statement, statement of
cash flows and notes.
In our opinion
- the consolidated financial statements give a true and fair view of the group’s financial position, financial
performance and cash flows in accordance with IFRS Accounting Standards as adopted by the EU.
- the financial statements give a true and fair view of the parent company’s financial performance and
financial position in accordance with the laws and regulations governing the preparation of financial
statements in Finland and comply with statutory requirements.
Our opinion is consistent with the additional report submitted to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under
good auditing practice are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report.
We are independent of the parent company and of the group companies in accordance with the ethical
requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
In our best knowledge and understanding, the non-audit services that we have provided to the parent
company and group companies are in compliance with laws and regulations applicable in Finland regarding
these services, and we have not provided any prohibited non-audit services referred to in Article 5(1) of
regulation (EU) 537/2014. The non-audit services that we have provided have been disclosed in consolidated
financial statements note 8.7 and note 9.37 in the parent company’s financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the financial statements of the current period. These matters were addressed in the context of our audit
of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report, including in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of the risks of material misstatement of
the financial statements. The results of our audit procedures, including the procedures performed to address
the matters below, provide the basis for our audit opinion on the accompanying financial statements.
GovernanceResponsibilityBusiness Overview Financial Review
136
Responsibilities of the Board of Directors and the Managing Director for the Financial Statements
The Board of Directors and the Managing Director are responsible for the preparation of consolidated
financial statements that give a true and fair view in accordance with IFRS Accounting Standards as
adopted by the EU, and of financial statements that give a true and fair view in accordance with the laws
and regulations governing the preparation of financial statements in Finland and comply with statutory
requirements. The Board of Directors and the Managing Director are also responsible for such internal control
as they determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are responsible for
assessing the parent company’s and the group’s ability to continue as going concern, disclosing, as applicable,
matters relating to going concern and using the going concern basis of accounting. The financial statements
are prepared using the going concern basis of accounting unless there is an intention to liquidate the parent
company or the group or cease operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance on whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with good auditing practice will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of the financial
statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the parent company’s or the group’s internal control.
We have also addressed the risk of management override of internal controls. This includes consideration of
whether there was evidence of management bias that represented a risk of material misstatement due to
fraud.
There are no significant risks of material misstatement referred to in EU regulation No 537/2014, point (c) of
Article 10(2) relating to the consolidated financial statements or the parent company’s financial statements.
KEY AUDIT MATTER HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER
Recognition of commission income
We refer to the accounting policy and the note 2.1
“Fee and commission income”
The commission income in the consolidated financial
statements mainly consist of fund management fees,
asset management fees, securities brokerage fees
and advisory fees. The total amount of commission
fees amounted to 102,9 million euros, which is
94,6% of the net revenue of the group. Commission
income consist of performance-based fees and
fee reimbursements. There are manual phases in
the processing of commission income recognition.
Recognition of commission fee was determined to
be key audit matter because there are management
estimation and assumptions involved regarding the
timing and measurement of performance-based fees
recognition and reimbursements.
Our audit procedures included, among others,
evaluation of the revenue recognition principles in
the group accounting policies in accordance with the
applicable accounting standards. We assessed the
processes and IT-systems supporting recognition
of commission income. We audited the accruals of
recognition of commission income by utilizing data-
analytic methods. In addition, we tested single
transactions to verify proper cut-off of commission
income and matched against agreements.
We also evaluated the appropriateness and
sufficiency the of the disclosures made by
management.
GovernanceResponsibilityBusiness Overview Financial Review
137
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
- Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going
concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the parent company’s or the
group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial statements or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the parent
company or the group to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events so that
the financial statements give a true and fair view.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the group to express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the group audit. We remain solely responsible
for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were
of most significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General Meeting on March 14, 2023.
Other information
The Board of Directors and the Managing Director are responsible for the other information. The other
information comprises the report of the Board of Directors and the information included in the Annual Report,
but does not include the financial statements and our auditor’s report thereon. We have obtained the report of
the Board of Directors prior to the date of this auditor’s report, and the Annual Report is expected to be made
available to us after that date.
Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
With respect to report of the Board of Directors, our responsibility also includes considering whether the
report of the Board of Directors has been prepared in accordance with the applicable laws and regulations.
In our opinion, the information in the report of the Board of Directors is consistent with the information in
the financial statements and the report of the Board of Directors has been prepared in accordance with the
applicable laws and regulations.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Helsinki February 16, 2024
Ernst & Young Oy
Authorized Public Accountant Firm
Miikka Hietala
Authorized Public Accountant
GovernanceResponsibilityBusiness Overview Financial Review
138
GOVERNANCE
GovernanceResponsibility 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 organized.
Corporate
Governance Statement
139
GovernanceResponsibility Financial ReviewBusiness Overview Governance
AUDITORS
CEO
BOARD OF DIRECTORS
Audit and Risk Committee
Compensation Committee
GENERAL MEETING OF SHAREHOLDERS
EVLI PLC’S GOVERNANCE STRUCTURE
RISK MANAGEMENT AND
INTERNAL AUDIT
Risk management
Compliance
Internal audit
EXECUTIVE GROUP
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
Evli’s AGM elects each year a Board of Directors (“Board”), 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 organization 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 the Board of Directors of Evli 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:
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GovernanceResponsibility Financial ReviewBusiness Overview Governance
- 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.
- 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 2023 were Henrik Andersin, Fredrik Hacklin, Sari Helander, Robert
Ingman and Antti Kuljukka as well as from January 1 to March 14, 2023 Teuvo Salminen and as of March 14,
2023 Christina Dahlblom.
The Board 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 Board has a diversity policy that includes diversity principles. 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 is taken into account,
which supports the diversity of the Board. The actualization 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 2023, 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, two
were female and four were male. The median age was 56, and the age difference between the youngest and the
oldest member was 18 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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GovernanceResponsibility Financial ReviewBusiness Overview Governance
The Audit and Risk 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 in 2023 were Sari Helander (Chairman), Robert Ingman and Antti
Kuljukka. The Committee met five times in 2023. The Audit and Risk 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 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 in 2023 were Fredrik Hacklin (chairman), Henrik Andersin and
Christina Dahlblom. The Committee met five times in 2023. 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 2023
ATTENDANCE
IN AUDIT
AND RISK
COMMITTEE
MEETINGS
2023
ATTENDANCE
IN COMPEN-
SATION
COMMITTEE
MEETINGS
2023
OWNERSHIP
IN THE COMPANY
1
,
NUMBER OF SHARES INDEPENDENCY
Name Personal data A-SHARES B-SHARES
OF THE
COMPANY
OF THE
SHARE-
HOLDERS
Henrik
Andersin
Chairman of the of the Board
Member of the Compensation
Committee
Born 1960
M.Sc. (Econ.)
Board professional
13/13 - 5/5 3,803,280 950,820 √
Christina
Dahlblom
Member of the Board since
March 14, 2023
Member of the Compensation
Committee
Born 1978
Ph.D. (Marketing)
Entrepreneur, Flo Co Oy
9/10 - 4/4 - 1,000 √ √
Fredrik
Hacklin
Member of the Board
Chairman of the Compensation
Committee
Born 1978
Ph.D. (Management), M.Sc.
(Engineering)
Professor, Director, and Member of
Executive Committee at ZHAW School
of Management and Law, Zurich,
Associate professor at ETH Zurich
13/13 - 5/5 - 2,150 √ √
Sari
Helander
Member of the Board
Chairman of the Audit and Risk
Committee
Born 1967
M.Sc. (Econ.)
CFO, Ramirent Group
13/13 4/4 1/1
-
4,000 √ √
Robert
Ingman
Member of the Board
Member of the Audit and Risk
Committee
Born 1961
M.Sc. (Tech.), M.Sc. (Econ.)
Board professional
12/13 5/5 - 1,860,000
2
910,000
2
√
Antti
Kuljukka
Member of the Board
Member of the Audit and Risk
Committee
Born 1961
M.Sc. (Soc.Sc.), eMBA. Maj evp.
Board professional
12/13 5/5 - - 4,712 √ √
Teuvo
Salminen
Member of the Board until
March 14, 2023
Chairman of the Audit and Risk
Committee
Born 1954
M.Sc. (Econ.)
Board professional
2/3 1/1 - 59,952 √ √
1
Shareholding on December 31, 2023, including holdings through a controlled company
2
Includes holdings of Ingman Group Oy Ab
Table 1: Evli Plc’s Board of Directors in 2023
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GovernanceResponsibility Financial ReviewBusiness Overview Governance
Corporate management
Evli’s corporate structure
Evli’s business operations are organized around two client segments: Wealth Management and Investor Clients,
and Advisory and Corporate Clients. The segments 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 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. 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.
Table 2: Evli’s Executive Group in 2023
Ownership in the company
1
,
number of shares
Name and personal data Role and responsibility A shares B shares
Maunu Lehtimäki
2
Born 1967, M.Sc. (Econ.)
CEO
53
3,728
117,031
Mari Etholén
3
Born 1973, LL.M.
Head of HR and Legal Affairs
60,000
30,948
Panu Jousimies
4
Born 1969, M.Sc. (Econ.)
Head of Execution and Operations
59,691 69,049
Juho Mikola
5
Born 1981, M.Sc. (Econ.)
CFO and Deputy CEO
68,000 61,220
Esa Pensala
6
Born 1974, M.Sc. (Tech.)
Head of Private Clients
142,000 50,200
Kim Pessala
7
Born 1969, M.Sc. (Econ.)
Head of Investment products and
services; CEO of Evli Fund Management
Company Ltd 12,331 106,644
Mikael Thunved
In the Executive Group until September
30, 2023, Born 1965, B.Sc. (Econ.)
CEO of Evli Ab
- 83,600
Mona von Weissenberg
8
In the Executive Group since October 1,
2023, Born 1979, M.Sc. (Econ.)
Head of Institutional clients
- -
1
Shareholdings on December 31, 2023, including holdings through controlled entities
2
40,000 Evli shares allocated under the share-based incentive scheme established in 2023
3
30,000 Evli shares allocated under the share-based incentive scheme established in 2023
4
20,000 Evli shares allocated under the share-based incentive scheme established in 2023
5
40,000 Evli shares allocated under the share-based incentive scheme established in 2023
6
30,000 Evli shares allocated under the share-based incentive scheme established in 2023
7
35,000 Evli shares allocated under the share-based incentive scheme established in 2023
8
25,000 Evli shares allocated under the share-based incentive scheme established in 2023
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Risk management and internal control
The company’s organizational structure, clearly established responsibilities and authorizations, 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, analyzing, 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.
Evli defines risk as an event or series of events that jeopardize the company’s income generation over the short
or long term.
The Board of Evli is primarily responsible for Evli Group’s risk management. The Board 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 organized. The Board has also set up a Management Risk Committee,
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 defense” model.
First line of defense – 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 defense. 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 analyze risks
- make decisions on risk management by means of various protection measures.
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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
MANAGEMENT RISK
COMMITTEE
Second line of defense – Risk Control and Compliance
The second line of defense 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.
The Compliance function is responsible for ensuring compliance with the rules in all 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
the Board of Evli. The Compliance function reports regularly via the Audit and Risk committee to the Board of Evli
and to the operating management.
Third line of defense – Internal Audit
The third line of defense 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 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 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 was the auditing firm PricewaterhouseCoopers Oy from January 1 to March 14,
2023, with Authorised Public Accountant Jukka Paunonen as the principally responsible auditor. Since March 14,
2023, the auditor of the company was an auditing firm EY Oy, with Authorised Public Accountant Miikka Hietala
as the principally responsible auditor.
In 2023, the total fees paid to PricewaterhouseCoopers Oy amounted to EUR 0.2 million and the total fees paid
to EY Oy amounted to EUR 0.1 million. In addition, EUR 0.0 was paid in 2023 to the auditing firm KPMG Oy Ab, who
acted as the auditor of EAB Group Plc in 2022. In 2023, the total fees paid to the auditors amounted to EUR 0.4
million. The audit fee amounted to EUR 0.4 million and the non-audit fees to EUR 0.0 million.
Insider management
Evli has a guideline on insider rules and regulations that is approved by the Board of Evli 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
interim report and financial statements and who become aware of unpublished financial information at the
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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 centralized under the responsibility of the Group’s Financial
Administration. The Financial Administration is subordinate to the CFO and responsible for producing, on a
centralized basis, the financial statements information required for external accounting as well as 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 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 company
in the United Arab Emirates.
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GovernanceResponsibility Financial ReviewBusiness Overview Governance
The 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.
Remuneration Policy
Decision-making relating to remuneration
The Remuneration Policy has been 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.
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GovernanceResponsibility Financial ReviewBusiness Overview Governance
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.
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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GovernanceResponsibility Financial ReviewBusiness Overview Governance
This Remuneration Report sets out how Evli Plc (“Evli” or “company”) has implemented its Remuneration Policy in
2023 and presents the remuneration and other financial benefits paid to the members of the Board of Directors
(“Board”) and to the Group’s CEO and the Deputy CEO during the year. Remuneration of the company’s governing
bodies and their members is based on the Remuneration Policy approved 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 2023 at Evli’s
Annual General Meeting in spring 2024.
Overview of remuneration in 2023
The decision-making on remuneration has been made in accordance with the decision-making process defined
in the Remuneration Policy. No temporary deviations from the Remuneration Policy were applied in 2023.
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 2023. The Board also did not deem it
necessary to use its right to adjust the performance criteria applied in 2023.
Remuneration Report 2023
In line with the Remuneration Policy, remuneration in 2023 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 and the
Deputy 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 the CEO’s and the Deputy CEO’s remuneration for 2023 to ensure
a competitive and fair total remuneration 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
Evli’s business has developed positively over the past five years. The review takes into account the investment
services activities carried out before the foundation of Evli Plc, during the period 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.
NET COMMISSION INCOME (M€)
RETURN ON EQUITY (%)
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DEVELOPMENT OF ASSETS UNDER
MANAGEMENT, (BN. €)
PROPORTION OF RECURRING REVENUE
TO OPERATING EXPENSES (%)
DIVIDEND & EARNINGS/SHARE (€)
2019 2020 2021 2022 2023
14.3
14.1
17.5
16.0
18.0
2019 2020 2021 2022 2023
124
128
135
130
123
2019 2020 2021 2022 2023
23.4
26.2
50.4
20.4
22.8
2019 2020 2021 2022 2023
72.2
76.8
111.7
92.1
100
1 Board of Directors’ proposal to the annual
general meeting
2019 2020 2021 2022 2023
0.71
0.88
1.47
0.81
1.15
0.73
0.66
1.06
1.05
1.161
YEAR DEVELOPMENT OF REMUNERATION
2023 2022 2021 2020 2019
BOARD OF DIRECTORS
Chairman of the Board of Directors, EUR 90,000 90,000 90,000 84,000 90,000
Development, % - - 7 -7 4
Chairmen of the committees (on average), EUR 71,000 72,000 70,500 67,200 72 000
Development, % -1 2 5 -7 2
Other members of the Board (on average), EUR 60,000 60,000 60,000 56,000 60,000
Development, %
-
- 7 -7 -
CEO
CEO, EUR 844,204
4
626,010 699,888 446,605
3
488,116
2
Development, % 35 -11 57 -9 11
AVERAGE EMPLOYEE SALARY
Total salary costs, EUR 33,100,000 32,100,000 29,500,000 29,000,000 29,000,000
Number of employees at the end of the year 354 344 290 261 249
Average salary for the employees, EUR
1
93,503 103,7805 101,724 116,466 116,466
Development, % -10 2 8 -3 9
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. The comparability of wage developments is weakened by the variability
of fixed-term contracts from one year to the next.
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.
4
In addition, the CEO recieved 50,000 shares granted to him in the Option-program 2019. The total value of the subscription was EUR
992,516 based on the closing price on the subscription day.
Remuneration of the Board of Directors in 2023
Evli Plc’s General Meeting decides on the compensations payable to the Board members. The Annual General
Meeting of March 14, 2023, 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 2023, the total compensation paid to the Evli Group Board
members amounted to EUR 414,652. This sum is made up of meeting participation fees related to the work
carried out by the Board and its committees. In 2023, the Board members did not receive any shares or share-
based rights as compensation for their work, nor were they granted any other benefits.
COMPENSATION PAID TO THE MEMBERS OF THE BOARD, €
2023
Henrik Andersin, Chairman of the Board 90,000
Christina Dahlblom, Member of the Board since March 14, 2023 48,043
Fredrik Hacklin, Member of the Board, Chairman of the Compensation Committee 70,000
Sari Helander, Member of the Board, Chairman of the Audit and Risk Committee 72,000
Robert Ingman, Member of the Board 60,000
Antti Kuljukka, Member of the Board 60,000
Teuvo Salminen, Member of the Board until March 14, 2023 14,609
TOTAL 414,652
Remuneration of the CEO and the Deputy CEO in 2023
The Board of Evli Group adopts the principles and elements of the remunerations for the CEO and the Deputy
CEO on an annual basis. The remuneration follows Evli’s Remuneration Policy in force. All changes in the CEO’s
and the Deputy CEO’s salary and remuneration are subject to the Board’s approval.
Short-term incentives in 2023
In 2023, Evli had a short-term incentive plan in place for the employees, including the CEO and the Deputy CEO.
The incentive plan performance criteria are evaluated annually by the Board. The performance targets linked
to the short-term incentive for the CEO and his deputy for 2023 are presented in the table on next page. In
accordance with the remuneration policy, variable remuneration may not exceed 200 percent of the annual
fixed remuneration. The purpose of short-term incentives is to encourage the achievement of financial and
other short-term objectives in line with the business strategy. The short-term incentive plan remuneration is
dependent on the financial performance of Evli, as well as reaching strategic targets.
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GovernanceResponsibility Financial ReviewBusiness Overview Governance
SHORT-TERM INCENTIVE PLAN CRITERIA 2023
WEIGHT ACHIEVEMENT, CEO
ACHIEVEMENT,
DEPUTY CEO
Evli Group financial performance, development of the oper-
ating profit
50% Exceeded Exceeded
Group level Key Performance Indicator targets 30–50% Partly exceeded Partly exceeded
Finalizing strategic projects 0–20% Partly exceeded Partly exceeded
Although the business environment turned out to be extraordinary during 2023 due to realized geopolitical risks
and a changed inflation and interest rate environment, no adjustments were made to the performance targets.
For 2023, the achievement of the criteria is shown in the table above.
For the CEO, the short-term incentives earned in 2023 amounted to approximately 29 percent of the maximum
compensation in accordance with the Remuneration Policy. For the Deputy CEO, the corresponding figure was
approximately 29 percent. In accordance with the regulations, the renumeration will be paid in installments: 50
percent in spring 2024 and 50 percent in steps during the next three years. The delayed remuneration is linked
to the performance of Evli Plc's share price during the delay period.
Long-term incentives in 2023
The existing long-term incentive plans for the CEO and his deputy have been implemented as performance
share plans (PSP). 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 Performance Share Plan offers an opportunity to earn the company’s shares as a reward for continuous
service and retention of the company and the individual. Under performance share plans, rewards are granted
on the achievement of targets linked to the plan. The grant is followed by a vesting period of at least three years.
Granting is based on the Board's assessment of the achievement of the targets set for the plan at the given time.
Share Plans are usually delivered to the participants after the delay period, provided that the conditions for
payment of variable remuneration are met and 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 retention period of one year in accordance with the regulation set for the financial sector. The rewards under
the Share Plans are paid as a combination of shares and cash. The cash component is dedicated to cover the
taxes and statutory social security contributions related to shares.
The CEO and the Deputy CEO participated in the 2023 long-term incentive plan. In the plan, the target group
has an opportunity to earn Evli Plc’s series B shares based on performance. The performance period of the
plan began on September 1, 2023, and will end on December 31, 2026. The performance criteria of the plan are
tied to the operating profit of the company (EBIT). The potential rewards from the plan will be deferred and
paid to participants approximately three years after the end of the performance period, in compliance with the
legislation governing the financial sector. The payment of the rewards is followed by a retention period of one
year, during which the key employee cannot transfer the shares paid as a reward.
During 2023, the CEO was paid a reward of 50,000 shares under the 2019 Restricted Share Plan. The Deputy
CEO was paid a reward of 30,000 shares under the corresponding plan. In addition, he was paid a reward
under the 2018 Restricted Share Plan equivalent to 4,667 shares.
SUMMARY OF SHARE-BASED INCENTIVES ISSUED AND PAID TO THE CEO AND THE DEPUTY CEO
GRANTED INSTALLMENTS,
NUMBER OF SHARES
1
PLAN - INSTALLMENT GRANT DATE CEO
DEPUTY
CEO
PERFORMANCE
PERIOD
VESTING
PERIOD PAYMENT YEAR
WAITING
PERIOD
Restricted share plan 2018 -
Installment 2
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
2023 long-term incentive plan 14.9.2023 max. 40,000 max. 40,000 3 years 3 years 2029 +1 year
1
Gross number of shares before income taxes on the payment of shares.
152
GovernanceResponsibility Financial ReviewBusiness Overview Governance
Remuneration paid to the CEO and the Deputy CEO in 2023
REMUNERATION OF THE CEO IN 2023, €
BASE SALARY
ADDITIONAL PENSION
PAYMENT
PAID SHORT-TERM
INCENTIVES
PAID LONG-TERM
INCENTIVES TOTAL
CEO, MAUNU LEHTIMÄKI 509,040
1
76,356 258,807
2
992,516
3
1,836,720
1
Including fringe benefits.
2
Total short-term incentives paid in 2023. The table below details the vesting periods for which short-term incentives paid in 2023
have vested. Incentive awards paid are always based on performance in previous years.
3
Includes the 2019 RS plan payment at 19.4729 EUR/share (exchange rate on 28.6.2023).
BREAKDOWN OF SHORT-TERM INCENTIVES PAID IN 2023
FROM 2019 FROM 2020 FROM 2021 FROM 2022 TOTAL
CEO, MAUNU LEHTIMÄKI 158,808 - - 100,000 258,807
The CEO has no significant separate fringe benefits and is covered by the shared Evli Group reward system.
The CEO has a six-month notice period binding on 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.
The variable remuneration due to CEO Maunu Lehtimäki from 2023, which has not yet been paid at the time of
publication of this report, amounts to EUR 300,000.
REMUNERATION OF THE DEPUTY CEO IN 2023, €
BASE SALARY
ADDITIONAL PENSION
PAYMENT
PAID SHORT-TERM
INCENTIVES
PAID LONG-TERM
INCENTIVES TOTAL
CFO, JUHO MIKOLA 222,840
1
- 132,045
2
688,151
3
1,043,036
1
Including fringe benefits.
2
Total short-term incentives paid in 2023. The table below details the vesting periods for which short-term incentives paid in 2023 have vest
ed. Incentive awards paid are always based on performance in previous years.
3
Includes the 2019 RS plan payment at 19.4729 EUR/share (exchange rate on 28.6.2023) and the 2018 RS plan payment at 19.4729 EUR/share
(exchange rate on 28.6.2023).
BREAKDOWN OF SHORT-TERM INCENTIVES PAID IN 2023
FROM 2019 FROM 2020 FROM 2021 FROM 2022 TOTAL
CFO, JUHO MIKOLA 90,723 - - 41,322 132,045
The Deputy CEO has no significant separate fringe benefits and is covered by the shared Evli Group reward
system. The deputy CEO has a notice period in accordance with the collective agreement in the financial sector
binding on both parties.
The variable remuneration due to Deputy CEO Juho Mikola from 2023, which has not yet been paid at the time of
publication of this report, amounts to EUR 127,500.
153
GovernanceResponsibility Financial ReviewBusiness Overview Governance
1 Includes holdings of Ingman Group Oy Ab
Board of Directors
HENRIK ANDERSIN
Chairman of the Board
Member the Compensation
Committee
CHRISTINA DAHLBLOM
Member of the Board since March
14, 2023
Member the Compensation
Committee
FREDRIK HACKLIN
Member of the Board
Chairman of the Compensation
Committee
SARI HELANDER
Member of the Board
Chairman of the Audit and Risk
Committee
ROBERT INGMAN
Member of the Board
Member of the Audit and Risk
Committee
ANTTI KULJUKKA
Vice-Chairman of the Board
Member of the Audit and Risk
Committee
TEUVO SALMINEN
Member of the Board until
March 14, 2023
- Born 1960
- M.Sc. (Econ.)
- Member of the Board of Directors
of Evli Plc since April 2, 2022
(Member of the Board of Directors
of Evli Bank Plc 1985-April 1, 2022,
Chairman of the Board 2006-
2022; CEO of Evli 1994–2006)
- Board professional
- One of Evli Bank’s founding
partners and main owners
- Chairman of the Board of Oy
Scripo Ab
- M.Sc. (Econ.). Born 1960
- Independent of the company
- Shareholding: Holdings through
controlled company Oy Scripo Ab
3,803,280 A shares and 950,820 B
shares
- Born 1978
- Ph.D. (Econ.)
- Member of the Board of
Directors of Evli Plc since March
14, 2023
- Main occupation: Entrepreneur,
Flo Co Oy
- Professor of Practice, Hanken
School of Economics
- Vice-Chairman of the Board
of Nuorten yrittäjyys ja talous
NYT ry, Member of the Board of
Viking Line Abp, and Member of
the Supervisory Board of Hive
Helsinki Sr
- Independent of the
company and of significant
shareholders
- Shareholding: 1,000 B shares
- Born 1978
- Ph.D. (Management), M.Sc.
(Engineering)
- Member of the Board of
Directors of Evli Plc since April
2, 2022 (Member of the Board
of Directors of Evli Bank Plc
2019-April 1, 2022)
- Main occupation: Professor,
Director and Member of
Executive Committee at ZHAW
School of Management and Law,
Zurich, and Associate professor
at ETH Zurich
- Independent of the
company and its significant
shareholders
- Shareholding: 2,150 B shares
- Born 1967
- M.Sc. (Econ.)
- Member of the Board of Directors
of Evli Plc since April 2, 2022
(Member of the Board of Directors
of Evli Bank Plc 2019-April 1,
2022)
- Main occupation: CFO, Ramirent
Group
- Member of the Board of Enersense
International Plc
- Independent of the company and
its significant shareholders
- Shareholding: 4,000 B shares
- Born 1961
- M.Sc. (Tech.), M.Sc. (Econ.)
- Member of the Board of Directors
of Evli Plc since April 2, 2022
(Member of the Board of Directors
of Evli Bank Plc 2010-April 1,
2022)
- 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, Qt Group Plc, and Halti
Oy
- Independent of the company
- Shareholding: 1,860,000 A shares
and 910,000 B shares
1
- Born 1961
- M.Sc. (Soc.Sc.), eMBA. Maj evp.
- Member of the Board of Directors
of Evli Plc since April 2, 2022
- Board professional
- Main occupation: Senior advisor,
HTM Solutions Oy
- Member of the Boards of Directors
of Turvallisuuden tukisäätiö and
Jääkärisäätiö; Vice-Chairman
of the delegation of the Finnish
Orienteering Federation
- Independent of the company and
significant shareholders
- Shareholding: 4,712 B share
- Born 1954
- M.Sc. (Econ.)
- Member of the Board of
Directors of Evli Plc until March
14, 2023 (Member of the Board
of Directors of Evli Bank Plc
2010-April 1, 2022)
- Board professional
- Chairman of the Board of T2H
Oy, Member of the Boards
of Alisa Bank Plc, Cargotec
Corporation and 3Step It Group
Oy
- Independent of the company
and significant shareholders
- Shareholding: 59,952 B
shares
154
GovernanceResponsibility Financial ReviewBusiness Overview Governance
1 Sisältää Ingman Group Oy Ab:n omistuksen
Executive Group
PANU JOUSIMIES
Head of Execution and
Operations
- Born 1969
- M.Sc. (Econ.)
- Joined Evli in 1997
- Shareholding:
59,691 A shares and
69,049 B shares
MAUNU LEHTIMÄKI
Chief Executive Officer
- Born 1967
- M.Sc. (Econ.)
- Joined Evli in 1996
- Shareholding:
533,728 A shares and
117,031 B shares
MONA VON WEISSENBERG
Head of Institutional Clients
Executive Group member
since October 1, 2023
- Born 1979
- M.Sc. (Econ.)
- Joined Evli in 2022
- Shareholding:
no shares
MARI ETHOLÉN
Head of HR and Legal
Affairs
- Born 1973
- LLM
- Joined Evli in 2001
- Shareholding:
60,000 A shares and
30,948 B shares
JUHO MIKOLA
CFO, Deputy CEO
- Born 1981
- M.Sc. (Econ.)
- Joined Evli in 2004
- Shareholding:
68,000 A shares and
61,220 B shares
ESA PENSALA
Head of Private Clients
- Born 1974
- M.Sc. (Tech.)
- Joined Evli in 2001
- Shareholding:
142,000 A shares and
50,200 B shares
KIM PESSALA
Head of Investment
products and services; CEO
of Evli Fund Management
Company
- Born 1969
- M.Sc. (Econ.)
- Joined Evli in 1995
- Shareholding:
12,331 A shares and
106,644 B shares
MIKAEL THUNVED
CEO of Evli Ab
Executive Group member
until September 30, 2023
- Born 1965
- B.Sc. (Econ.)
- Joined Evli in 2002
- Shareholding:
Holdings through controlled
company 83,600 B shares
155
GovernanceResponsibility Financial ReviewBusiness Overview Governance
Independent Auditor’s Report on Evli Oyj’s ESEF-Consolidated Financial Statements (Translation of the Finnish original)
To the Board of Directors of Evli Oyj
We have performed a reasonable assurance engagement on the iXBRL tagging of the consolidated financial
statements included in the digital files Evli-2023-12-31-fi.zip of Evli Oyj (business identity code: 3239286-2)
for the financial year 1.1.-31.12.2023 to ensure that the financial statements are marked/tagged with iXBRL
in accordance with the requirements of Article 4 of EU Commission Delegated Regulation (EU) 2018/815 (ESEF
RTS).
Responsibilities of the Board of Directors and Managing Director
The Board of Directors and Managing Director are responsible for the preparation of the Report of Board
of Directors and financial statements (ESEF financial statements) that comply with the ESESF RTS. This
responsibility includes:
- Preparation of ESEF-financial statements in accordance with Article 3 of ESEF RTS
- Tagging the primary financial statements, notes to the financial statements and the entity identifier
information in the consolidated financial statements included within the ESEF-financial statements by using
the iXBRL mark ups in accordance with Article 4 of ESEF RTS
- Ensuring consistency between ESEF financial statements and audited financial statements.
The Board of Directors and Managing Director are also responsible for such internal control as they determine
is necessary to enable the preparation of ESEF financial statements in accordance the requirements of ESEF
RTS.
Auditor’s Independence and Quality Management
We are independent of the company in accordance with the ethical requirements that are applicable in Finland
and are relevant to the engagement we have performed, and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
The firm applies International Standard on Quality Management (ISQM) 1, which requires the firm to design,
implement and operate a system of quality management including policies or procedures regarding compliance
with ethical requirements, professional standards and applicable legal and regulatory requirements.
Auditor’s Responsibilities
In accordance with the Engagement Letter we will express an opinion on whether the electronic tagging of
the consolidated financial statements complies in all material respects with the Article 4 of ESEF RTS. We have
conducted a reasonable assurance engagement in accordance with International Standard on Assurance
Engagements ISAE 3000.
The engagement includes procedures to obtain evidence on:
- whether the tagging of the primary financial statements in the consolidated financial statements complies in
all material respects with Article 4 of the ESEF RTS
- whether the tagging of the notes to the financial statements and the entity identifier information in the
consolidated financial statements complies in all material respects with Article 4 of the ESEF RTS
- whether the ESEF-financial statements are consistent with the audited financial statements.
The nature, timing and extent of the procedures selected depend on the auditor’s judgement including the
assessment of risk of material departures from requirements sets out in the ESEF RTS, whether due to fraud or
error.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our statement.
Opinion
In our opinion the tagging of the primary financial statements, notes to the financial statements and the entity
identifier information in the consolidated financial statements included in the ESEF financial statements Evli-
2023-12-31-fi.zip of Evli Oyj for the year ended 1.1.-31.12.2023 complies in all material respects with the
requirements of ESEF RTS.
Our audit opinion on the consolidated financial statements of Evli Oyj for the year ended 1.1.-31.12.2023 is
included in our Independent Auditor’s Report dated 15.2.2024. In this report, we do not express an audit opinion
any other assurance on the consolidated financial statements.
Helsinki 16.2.2024
Ernst & Young Oy
Authorized Public Accountant Firm
Miikka Hietala
KHT
Evli Plc | Aleksanterinkatu 19 | P.O. Box 1081| FI-00101 Helsinki, Finland | Tel. +358 (0)9 476 690| evli.com
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