Board of Directors’ Report and Financial Statements
Financial statements
Main statements in the
consolidated financial statements (IFRS)...................
General information .............................................
Financial development ..........................................
Human resources ................................................
Working capital ...................................................
Capital structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other items .......................................................
Formulas for the indicators and reconciliations............
Parent company’s financial statements (FAS)..............
Signatures to the Board’s Report and
Financial Statements............................................
Auditor’s Note.....................................................
Auditor’s report
Independent Auditor’s Report on Digia Oyj’s
ESEF-Consolidated Financial Statements
Board of Directors’ Report 2023
Digia in brief........................................................
Group structure ...................................................
Digia’s strategy – “Unlock Your Intelligence” – and financial
objectives for 2023–2025........................................
Major events in 2023 .............................................
Key indicators......................................................
Profit guidance for 2024 .........................................
Markets, business environment and
Digia’s market position ...........................................
Acquisitions and business combinations .....................
Financial review 2023.............................................
Corporate governance ...........................................
Events after the balance sheet date...........................
Risks and uncertainties ..........................................
Board’s dividend proposal .......................................
Non-financial reporting ........................................
Reporting based on EU taxonomy.............................
Board of Directors’ Report
Contents
This is a voluntary published pdf report, so it does not fulfill the disclosure
obligation pursuant to Section 7:5§ of the Securities Markets Act.
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
2
Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statementsBoard of Directors’ Report
Board of Directors’ Report 2023
Digia in brief
Digia is a growing software and service company that combines techno-
logical possibilities and human capabilities to build intelligent business,
society and a sustainable future. Our mission is to keep our customers at
the forefront of digital evolution by harnessing our well-rounded expertise,
comprehensive offering and operational models that suit the customer’s
needs. Digia is a intelligent business partner with a comprehensive IT service
offering: we provide all the layers of digitalisation from business systems to
integrations, digital services and 24/7 monitoring and service management.
2023 was the first year of our “Unlock your intelligence” strategy. Our
updated strategy is based on delivery capabilities that are valued by
customers and our organisation’s ability to engage in continuous renewal.
Our financial objectives for the strategy period 2023–2025 are annual growth
of over 10 per cent in net sales, including both organic and inorganic growth,
and operating profit (EBITA) of more than 12 per cent of net sales at the end
of the strategy period. We are also aiming for our international business to
account for more than 15 per cent of net sales by the end of the strategy
period.
Even though inflation and higher interest costs created a challenging
market in 2023, we maintained our profitable growth trend for the eight
consecutive year. During the past year, growth was particularly strong
in customer relationship management solutions, Digia’s automation and
artificial intelligence services, and ERP systems using Microsoft Business
Central and Oracle Netsuite solutions. The net sales of the Digia Hub subcon-
tracting network also saw good growth. In this uncertain environment, the
large share of the company’s net sales accounted for by continuous services
was a strength, bringing stability to our business.
Group structure
Digia operates in ten locations in Finland – Helsinki, Joensuu, Jyväskylä,
Kuopio, Lahti, Oulu, Rauma, Tampere, Turku and Vaasa. Abroad, we operate
in Stockholm and Malmö in Sweden, and Hengelo in the Netherlands. Service
for our Danish customers is provided from Sweden. Our head quarters are
located in Helsinki. On 31 December 2023, the Digia Group included the
parent company Digia Plc and the following subsidiaries:
● Digia Finland Ltd and its subsidiary Most Digital Sweden AB
● Productivity Leap Oy
● Digia Sweden AB
● Climber International AB and its subsidiaries Climber Finland Oy,
Climber Benelux B.V., Climber Danmark ApS, Climber Holding AB and its
subsidiary Climber AB
● Top of Minds AB and its subsidiaries Top of Minds Accelerate AB, Top of
Minds Drive AB, Top of Minds Go AB, Top of Minds Steam AB and Top of
Minds Top AB.
All subsidiaries are wholly owned by Digia.
In November 2022, to clarify its group structure, Digia started the
merger process of its subsidiary Avalon Oy into Digia Finland Ltd, which
was completed on 1 May 2023. In March 2023, Digia started the merger
process of its subsidiary Solasys Oy into Digia Finland Ltd, which was
completed on 1 October 2023.
Digia’s strategy – “Unlock Your Intelligence” –
and financial objectives for 2023–2025
We combine technological possibilities and human capabilities to build
intelligent business, society and a sustainable future. We ensure that our
customers are at the forefront of digital evolution, with an operational
model and rhythm that are right for them. We harness Digia’s well-rounded
expertise and comprehensive offering as well as operational models that
suit the customer’s needs. We constantly renew our own operations and
Top of Minds
Accelerate AB
Top of Minds AB
Climber
International AB
Digia
Sweden AB
Digia Oy
j
Productivity
Leap Oy
Digia Finland Oy
Most Digital
Sweden AB
Climber
Finland Oy
Climber
Danmark ApS
Climber
Benelux B
.V.
Climber
Holding AB
Climber AB
T
op of Minds
Drive AB
T
op of Minds
Go AB
T
op of Minds
Steam AB
T
op of Minds
Top AB
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
3
Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
expertise, and work with reliable partners. As a versatile company, Digia
can offer its employees meaningful job tasks and things to learn. We are
building a responsible society and a sustainable Digia.
We implement our strategy by tapping into our strengths and the
specialist expertise of our service areas. As a unified company, we provide
our customers with extensive solution packages and the expertise of our
specialised service areas for their individual needs. We build long-term
customer relationships and partnerships.
Our main strengths are:
● reliability and long-term customer relationships
● diverse and constantly evolving top expertise
● a versatile offering where solution connectivity enables expanding
customer relationships
● a strong financial position
● a business model in which continuous services yield operational
stability
● the ability to carry out successful acquisitions and grow the acquirees
as part of Digia.
Digia’s specialised service areas at the beginning of the strategy period:
Digital Solutions: Intelligent solutions for data utilisation and
customer experience
Digital Solutions provides comprehensive digital services for developing
intelligent business and enhancing the customer experience. Key areas
include a variety of data utilisation solutions, customer relationship
management, artificial intelligence, e-commerce, versatile online and
mobile services, and the digital marketing, service design and business
services provided by the Avalon unit.
Business Platforms: Versatile and comprehensive ERP solutions
Business Platforms provides versatile and comprehensive solutions for
intelligent enterprise resource planning in which systems, processes and
data flows are connected in a single, reliable, data-driven package. Our
offering comprises Microsoft Dynamics 365 solutions, Oracle NetSuite and
our own Digia Envision ERP product (which has been awarded the Key Flag
symbol).
Financial Platforms: Service and system packages for fund
management companies, asset managers and stockbrokers
Financial Platforms provides versatile system packages for customers
in the financial sector. Our business revolves around the Digia Financial
Systems product family (DiFS), which is one of the most extensive
financial systems for fund management companies, asset managers and
brokers in the Nordic countries. DiFS also includes comprehensive account
and loan functionalities for banks and lenders. We also provide the
necessary back-office functions and processes as a flexible end-to-end
service. The Digia Financial Products and Services unit, which is respon-
sible for the DiFS product family and services, is covered by Digia’s ISO
27001 certificate.
Managed Solutions: Service packages and outsourcing for
maintenance, continuous development and security
Managed Solutions provides customers with the cornerstones of
intelligent digital business. Our service packages help customers to utilise
data for business and process development, and guarantee the reliability
of critical services. Packages includes cloud services, Finland’s leading
integration and API solutions, robotics and artificial intelligence services,
knowledge-based management services, information security, high-secu-
rity software development and continuous services (that is, 24/7 Managed
Services).
Strategy growth paths
1. Specialised service areas: Precision solutions delivered using a model
suitable for customers. We are expanding our customer relationships
into deeper partnerships, harnessing all of Digia’s diverse offering and
expertise.
2. Large scale solutions: Extensive and demanding solution packages in
which we utilise all of Digia’s extensive offering, from project deliveries
to outsourcing.
3. Acquisitions: Enriching our offering and venturing into new markets
and customer relationships.
4. International operations: Expanding our target market and customer
relationships.
Strategy enablers
A modern and at tractive work community: Skilled employees are the
most important success factor for Digia. Sustainable growth is part of the
personal and professional development of each and every Digia employee.
We invest in our learning-focused, professional and relaxed culture. We
want our employees to enjoy working at Digia. Hybrid work, smart ways of
working and tools help us to succeed together.
Scalability and productivity: We invest in scalability and productivity
in both our own operations and the solutions we provide for customers. In
our own operations, productivity development is based on the continuous
renewal of working methods, an intelligent technology platform that
supports them, and harnessing Digia-level synergies. In customer
solutions, we focus on increasing scalability in our service and product
solutions. We scale our expertise through our Digia Hub network.
Responsibility: Responsibility is part of our day-to-day operations.
Our corporate responsibility is based on the UN Global Compact principles
and objectives. Our own operations are already carbon neutral. We see
the green transition and solving of sustainability challenges as business
opportunities. We are ambitiously seeking to do even bet ter in all subareas
of responsibility (environment, people and trusted partner), improving on
our already good baseline situation.
Objectives for the 2023–2025 strategy period
Financial objectives:
Net sales growth:
over 10 per cent annually, including organic and
inorganic growth.
Operating profit
(EBITA):
over 12 per cent of net sales at the end of the
strategy period.
Expanding our international business
Our aim is that international business will account for over 15 per cent of
net sales at the end of the strategy period.
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
4
Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
Sustainability objectives:
Environment: carbon neutrality: CO
2
emissions –60%
1)
People: healthy, diverse and skilled personnel: eNPS +35%
2)
Trusted partner: a visionary, reliable and secure partner: NPS +25%
2)
1)
CO
2
– the comparison year for emissions calculations is 2019, the target value is
for the end of 2025
2)
eNPS (employee net promoter score) and NPS (customer net promoter score) –
the comparison year is 2022, the target value is for the end of 2025
Strategy implementation in 2023
Digia’s strategy seeks to generate sustainable growth both organically
and through acquisitions. Although we achieved our net sales growth
target during the fiscal year, we fell slightly short of our EBITA target due
to the challenging market. During the review period, we took another step
on our international growth journey with the acquisition of the Swedish IT
consulting and service company Top of Minds. Top of Minds provides its
customers with high-quality services for data and analytics consulting,
integrations, e-commerce and project management. International
operations accounted for 8.7 per cent of net sales at the end of the fiscal
year.
Our responsible way of working is integral to our strategy. Our goal
during the strategy period is to reduce our carbon footprint, and to be a
good and at tractive employer and a trusted partner to our customers. Our
carbon footprint decreased by 37 per cent compared to the 2019 baseline.
Both our customer and personnel satisfaction have also been at a good
level over the past year. Compared to the previous year, Digia’s Customer
Net Promoter Score (NPS) improved by 23 per cent and its Employee Net
Promoter Score (eNPS) by 25 per cent. We achieved a Silver rating from
Ecovadis – an international assessment of sustainability – for the third
time in a row.
Digia is also a responsible partner to its customers when it comes to
data security. Towards the end of 2023, we expanded our international
ISO 27001 data security certification in connection with the annual audit
to cover new business functions in Managed Solutions and Financial
Platforms as well as our offices in Turku and Oulu. For example, our artificial
intelligence and automation services are now covered by the data security
certificate.
Major events in 2023
● Net sales: EUR 192.1 (170.8) million, up 12.5 per cent
● Operating profit (EBITA): EUR 16.7 (15.7) million, change 6.3 per cent;
EBITA margin: 8.7 (9.2) per cent of net sales
● Acquisition of Top of Minds AB
● Earnings per share: EUR 0.37 (0.36)
● Board of Directors’ proposal for the distribution of profit to the Annual
General Meeting: The Board of Directors will propose to the Annual
General Meeting that a dividend of EUR 0.17 per share be paid (EUR 0.17
per share in 2022).
Key indicators
Unless otherwise stated, the comparison figures provided in parentheses
always refer to the corresponding period of the previous year.
EUR 1,000 2023 2022 2021
Extent of business
Net sales 192,087 170,754 155,939
– net sales growth, % 12.5% 9.5% 12.1%
Gross capital expenditure
1)
149 1,253 1,768
– % of net sales 0.1% 0.7% 1.1 %
Number of personnel, 31 Dec 1,527 1,426 1,339
Average number of personnel 1,465 1,399 1,334
Profitability
Operating profit plus purchase price
allocation amortisation and costs (EBITA), 16,727 15,733 17,739
– % of net sales
2)
8.7% 9.2% 11.4%
Operating profit (EBIT), 13,835 12,727 14,680
– % of net sales 7.2% 7.5% 9.4%
Net profit, 9,872 9,571 11,772
– % of net sales 5.1% 5.6% 7.5%
Return on equity, % 13.5% 13.8% 18.3%
Return on investment, % 12.9% 12.9% 16.3%
EUR 1,000 2023 2022 2021
Financing and financial standing
Interest-bearing net liabilities 24,771 17,608 10,663
Net gearing, % 32.8% 24.8% 15.7%
Equity ratio, % 46.7% 45.9% 48.0%
Cash flow from operations, 16,973 14,252 16,648
Dividends (paid), 4,515 4,478 4,002
Earnings per share (EPS), EUR, undiluted
3)
0.37 0.36 0.44
Earnings per share (EPS), EUR, diluted
3)
0.37 0.36 0.44
Equity/share, EUR
4)
2.81 2.65 2.54
Equity/share, EUR 2.81 2.65 2.54
Dividend per share (2023 proposal), EUR 0.17 0.17 0.17
Dividend payout ratio 45.9% 47.2% 38.5%
Effective dividend yield 3.1% 3.0% 2.5%
Price/earnings ratio (P/E)
3)
14.59 15.86 16.00
Lowest share price 4.74 5.62 6.30
Highest share price 6.66 7.80 9.46
Average share price 5.96 6.67 7.51
Market capitalisation, EUR 1,000 144,848 153,163 188,839
Trading volume, shares 1,830,983 3,683,503 5,558,726
Trading volume, % 6.8% 13.2% 20.8%
1)
Gross capital expenditure includes gross investments in tangible and intangible
assets.
2)
Foreign exchange gains and losses from operations are included in the
corresponding items above EBIT. Purchase price allocation amortisation includes
the amortisation on the transaction prices allocated to customer contracts and
other intangible assets in business combinations.
3)
The dilution-adjusted key figures account for the effect of the share-based
incentive scheme for management.
4)
Shareholders’ equity divided by the undiluted number of shares on the closing
date.
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
5
Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
As alternative performance measures, the Group reports operating
profit before purchase price allocation amortisation and costs (EBITA),
operating profit (EBIT), return on equity, return on investment, net gearing
and equity ratio, which are not defined in IFRS. The company presents
the alternative performance measures to describe the financial situation
and development of business operations, as it considers this information
necessary for investors. Formulas for the key figures are presented in Note
8.1 and reconciliations in Note 8.2.
Profit guidance for 2024
Digia’s profit guidance for 2024: Digia’s net sales (EUR 192.1 million in
2023) and operating profit (EBITA) (EUR 16.8 million in 2023) will increase
compared to 2023.
Markets, business environment and Digia’s market position
Digia’s main market is Finland, and we also provide solutions internation-
ally. In addition to Finland, Digia operates in Sweden and the Netherlands.
Digia believes that the IT service market will grow during the strategy
period, even though risks related to short-term demand have increased in
the operating environment, particularly due to the weaker macroeconomic
outlook and high inflation. This is to some extent being reflected in
customer behaviour.
However, the long-term trend in demand for digital solutions is strong,
and data utilisation that harnesses intelligent technology both efficiently
and securely is an increasingly essential success factor for all organisa-
tions. Expanding existing systems and utilising the data they generate
will play a central role alongside new digital solutions. This means that
both integration and data expertise will become increasingly important.
Interest in automation and harnessing artificial intelligence is also growing
strongly. Although streamlining is often the focus during an economic
downturn, our customers’ goal is to boost the efficiency of their current
operations and thereby enable investments in continuous digitalisation
and, above all, artificial intelligence.
Digia’s extensive offering – through both individual service areas and
broader customer solutions – brings stability and balances out the effects
of any market fluctuations in our business.
We see the following trends:
● User-centred and secure solutions are gaining further ground. A good
user experience for applications is of paramount importance.
● The level of automation and intelligent functionalities is growing. Digital
evolution is trending towards automated and AI-assisted or controlled
processes and services. These are based on reliable data, its secure
availability, and the organisation’s ability to refine and utilise data and
technology.
● Instead of isolated solutions, the renewal of entire businesses as
a whole is being considered. Application and IT system entities are
expanding and becoming more complex. Operational continuity, which
is critical for organisations and business, emphasises the interopera-
bility, reliability and security of system entities. When an overview and
roadmap of the business have been drafted, system modernisation can
be carried out in phases.
● Business operations are becoming networked both internally and
externally. Secure and reliable integrations are at the heart of digital
evolution. They enable the functionality of application packages and
data availability.
● Sustainable development and the green transition are megatrends. The
utilisation of digital technologies and data is key to solving sustaina-
bility challenges.
Digia combines technological possibilities and human capabilities to build
intelligent business, society and a sustainable future. In line with our
strategy, we develop and maintain high-quality business solutions for our
customers, which we fine-tune with automation and intelligent tech-
nology. Our mission is to ensure that our customers are at the forefront of
digital evolution, with an operational model and rhythm that are right for
them.
Acquisitions and business combinations
On 2 October 2023, Digia acquired the entire share capital of the Swedish
IT consulting and service company Top of Minds AB. Top of Minds provides
its customers with high-quality services for data and analytics consulting,
integrations, e-commerce and project management. The acquisition
has strengthened Digia’s position in the Swedish market. Thanks to the
acquisition, Digia has nearly 300 data and analytics professionals on its
payroll. Top of Minds’ figures have been consolidated with the Digia Group
from the beginning of October 2023.
Calculations for the allocation of the purchase prices have been made,
and the impact of the acquisitions on Digia’s figures is reported in the
tables section.
Financial review 2023
Net sales
Digia’s consolidated net sales for the fiscal year were EUR 192.1 (170.8)
million, up 12.5 per cent on the previous year. Particularly strong net sales
growth was seen in customer relationship management solutions, Digia’s
automation and artificial intelligence services, and ERP systems using
Microsoft Business Central and Oracle Netsuite solutions. The net sales
of the Digia Hub subcontracting network also saw good growth. The large
share of the company’s net sales accounted for by continuous services
once again brought stability to our business. Growth was also accelerated
by acquisitions.
The service and maintenance business accounted for 56.0 (60.3) per
cent and the project business for 44.0 (39.7) per cent of net sales. The
net sales of both the project and the service and maintenance businesses
include product business activities, which accounted for 12.1 (12.8) per
cent of the Group’s total net sales.
Profit and profitability
Digia’s operating profit (EBITA) for the fiscal year was EUR 16.7 (15.7)
million with an operating margin (EBITA %) of 8.7 (9.2) per cent. Operating
profit (EBITA) was impacted by both increased costs arising from inflation
and non-recurring costs related to our internationalisation strategy and
compliance with sustainability reporting legislation.
Earnings before taxes were EUR 12.4 (12.0) million, with earnings after
taxes totalling EUR 9.9 (9.6) million.
Earnings per share were EUR 0.37 (0.36). Net financial expenses
amounted to EUR –1.4 (–0.7) million.
Financing, cash flow and expenditure
At the end of the fiscal year on 31 December 2023, Digia’s balance sheet
total stood at EUR 168.2 (160.1) million and its equity ratio at 46.7 (45.9)
per cent. Balance sheet growth was largely due to the acquisition of Top
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
6
Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
of Minds AB which was carried out during the fiscal year. Net gearing was
32.8 (24.8) per cent.
At the end of the fiscal year on 31 December 2023, Digia had EUR 37.2
(31.9) million in interest-bearing liabilities. Interest-bearing liabilities
consisted of EUR 20.6 million in long-term and EUR 11.6 million in
short-term loans from financial institutions, and EUR 5.0 million in lease
liabilities.
Cash flow from operations totalled EUR 17.0 (14.3) million in the 2023
fiscal year. Cash flow from investments came to EUR –16.4 (–11.8) million.
Acquisitions of subsidiaries are included in cash flow from investments.
Cash flow from financing was EUR –2.5 (–6.1) million.
Total investments in tangible assets amounted to EUR 2.3 (3.1) million
during the 2023 fiscal year. The return on investment (ROI) was 12.9 (12.9)
per cent, and return on equity (ROE) was 13.5 (13.8) per cent.
Report on the extent of research and development
Digia constantly invests in enhancing its long-term competitiveness.
Research and development expenses totalled EUR 4.8 million in the 2023
fiscal year (2022: 5.5), representing 2.5 per cent of net sales (2022:
3.2%). All research and development expenses have been recognised in
the result. R&D mainly focused on the development of our updated Digia
Envision ERP solution and the Digia OIVA Smart Automation platform. We
also continued to develop ERP systems for the financial and logistics
sectors.
More information about Digia’s services and solutions can be found on
the company’s website: digia.com/en/services.
Human resources and management
At the end of the period, the total number of Group personnel was 1,527
(1,426), representing an increase of 101 employees or 7.1 per cent since the
end of the 2022 fiscal period. The average number of employees was 1,465
(1,399), an increase of 66 employees, or 4.7 per cent, on the 2022 average.
Digia employees by location:
31 Dec 2023 31 Dec 2022
Change, no.
of employees
Helsinki 726 722 4
Tampere 289 275 14
Jyväskylä 178 171 7
Stockholm, Sweden 116 53 63
Turku 83 76 7
Joensuu 27 29 –2
Oulu 25 22 3
Rauma 21 22 –1
Lahti 21 18 3
Malmö, Sweden 14 13 1
Vaasa 11 10 1
Kuopio 8 8 0
Hengelo, The Netherlands 8 7 1
Total
1,527 1,426 101
’
Share capital and shares
On 31 December 2023, the number of Digia Plc shares totalled 26,823,723
and the company had a total of 8,064 shareholders. Foreign shareholders
accounted for 0.5 per cent of all Digia Plc shareholders and they held 0.9
per cent of all shares and votes. Nominee shareholding accounted for 0.1
per cent of all Digia Plc shares and 3.1 per cent of all votes.
The weighted average number of shares during the accounting period,
adjusted for share issues, was 26,514,556. The diluted weighted average
number of shares during the period was 26,694,119. The number of
outstanding shares at the end of the review period was 26,477,330.
Ten largest shareholders on 31 December 2023
Shareholder
Percentage of shares
and votes
Ingman Development Oy Ab 29.5%
Etola Oy 12.8%
Ilmarinen Mutual Pension Insurance Company 9.9%
Varma Mutual Pension Insurance Company 4.7%
Savolainen Mat ti Ilmari 3.3%
Rausanne Oy 0.9%
Varelius Juha Pekka 0.8%
EAM Digia Holding Oy 0.8%
Kohonen Jorma Tapani 0.8%
Mandatum Life Insurance Company 0.7%
Shareholding by number of shares held on 31 December 2023
Number of shares
Percentage of
shareholders
Percentage of shares
and votes
1–100 35.2% 0.5%
101–500 36.3% 2.8%
501–1,000 13.1% 3.0%
1,001–5,000 12.5% 7.6%
5,001–10,000 1.3% 2.7%
10,001–50,000 1.1 % 7.1 %
50,001–100,000 0.2% 4.6%
100,001–500,000 0.2% 9.4%
500,001– 0.1% 62.3%
100% 100%
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
7
Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
Shareholding by sector on 31 December 2023
Percentage of
shareholders
Percentage
of shares and
votes
Companies 3.2% 47.4%
Households 95.8% 30.6%
Public-sector organisations 0.0% 14.6%
Financial and insurance institutions 0.3% 6.2%
Non-profit associations 0.2% 0.3%
Foreign holding 0.5% 0.9%
100% 100%
Digia Plc held a total of 129,604 treasury shares at the end of 31 December
2023. The company held about 0.5 per cent of its capital stock.
At the end of the period, a total of 216,789 company shares, previously
funded by Digia for use in the incentive system for key personnel and
owned by EAM Digia Holding Oy, remained undistributed.
Up-to-date information about the company’s major shareholders and
the distribution of their shareholdings can be found on Digia’s website:
digia.com/en/investors/shareholders.
Share-based payments
Share-based bonuses
During the 2023 fiscal year, Digia had two long-term share-based incentive
schemes for senior executives: performance-based incentives were
paid on the basis of the 2020–2022 earnings period, and the 2023–2025
earnings period was launched for the new scheme.
On 4 May 2023, Digia Plc’s Board of Directors decided to establish a
new long-term share-based incentive scheme. The Board will confirm
the target group of the long-term incentive scheme at a later date. In
principle, the target group consists of the CEO and the company’s senior
executives. The scheme may also cover other individual key personnel.
The scheme is designed to align the goals of the company’s shareholders
and management in order to increase the company’s value, and to commit
executive management to the company and its long-term objectives.
The new long-term incentive scheme will run for 2023–2025. It offers
participants the chance to earn company shares if the targets set by the
Board of Directors for the three-year bonus period are met.
These targets are based on the company’s net sales, cumulative
earnings per share (EPS) for 2023–2025, and sustainability objective.
The earnings period for indicators is three years (2023–2025), and the
targets for all indicators have been set for the final date of the earnings
period. During the bonus period, the company’s CEO and other scheme
participants are entitled to a bonus equivalent to a maximum of 480,000
new Digia Plc shares. If the terms are met, the bonuses for all indicators
based on the new scheme will be paid at the end of the reward period in
spring 2026. All bonuses under this scheme will be paid as a combination
of shares and cash. The cash component of the bonus will primarily be
used to cover taxes and other comparable costs arising from the scheme.
As a rule, the bonus will not be paid if a member resigns or if a member’s
employment or post is terminated prior to the bonus payment date
specified in the incentive scheme. Under certain conditions, the Board
may, at its discretion, decide on possible bonuses in accordance with the
pro-rata principle.
EUR 0.4 million in expenses were incurred by the new incentive scheme
during the 2023 fiscal year, and EUR 0.1 million by the previous scheme.
EUR 0.1 million in expenses were incurred by the previous incentive
scheme during the previous fiscal year.
Digia has an agreement with Evli Awards Management Ltd for the
coordination of the company’s share-based incentive schemes, their
associated share management, and the payment of incentives to individ-
uals in accordance with the terms and conditions of the schemes.
Management ownership
According to the list of shareholders on 31 December 2023, Digia’s Board of
Directors and CEO owned shares in the company as follows (includes the
holdings of related-parties and related-party organisations):
Board of Directors No. of shares
Robert Ingman, Chair of the Board 7,934,000
Mart ti Ala-Härkönen, Vice Chair of the Board 20,000
Sant tu Elsinen 0
Sari Leppänen 0
Henry Nieminen, as of 23 March 2023 1,543
Seppo Ruotsalainen, until 23 March 2023 6,000
Outi Taivainen 872
Timo Levoranta, President and CEO 154,238
At year-end, the CEO and members of the Board of Directors held a total
of 8,073,884 of the company’s shares, representing 30.10 per cent of all
shares and votes.
Trading in shares during the fiscal year
Digia Plc’s share is listed on Nasdaq Helsinki Ltd in the Technology sector.
The company’s short name is DIGIA.
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
8
Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
Summary of trading on Nasdaq Helsinki, 1 Jan – 31 Dec 2023
January–December
2023
Trading volume,
shares Value total, EUR High, EUR Low, EUR
Trade-weighted
average price, EUR Latest, EUR
DIGIA 1,830,983 10,905,933 6.66 4.74 5.96 5.40
31 Dec 2023 31 Dec 2022
Market capitalisation, EUR 144,848,104 153,163,458
Shareholders 8,067 8,315
Flagging notifications
On 27 December 2023, Digia received notification of changes in the
company’s ownership in accordance with Chapter 9 Section 10 of the
Finnish Securities Market Act. According to the notification, Ilmarinen
Mutual Pension Insurance Company held a total of 26,823,723 Digia Plc
shares and votes, corresponding to 9.91 per cent of all Digia shares and
votes.
Corporate governance
Annual General Meeting 2023
Digia Plc’s Annual General Meeting (AGM) was held on 23 March 2023.
The AGM adopted the financial statements for 2022, released the Board
members and the CEO from liability, determined Board emoluments and
auditor fees, set the number of Board members at six, and elected the
company’s Board of Directors for a new term.
With regard to profit distribution for 2022, the AGM approved the
Board’s proposal to pay a dividend of EUR 0.17 per share to all shareholders
listed in the shareholder register maintained by Euroclear Finland Ltd on
the reconciliation date of 27 March 2023. The dividend payment date was
3 April 2023.
The AGM granted the following authorisations to the Board
Authorising the Board of Directors to decide on buying
back own shares and/or accepting them as collateral
The Annual General Meeting authorised the Board to decide on the
acquisition and/or pledging of treasury shares with the following terms
and conditions:
● A maximum total of 2,000,000 shares may be bought back and/or
pledged in one or more instalments. The proposed number is under 10
per cent of the company’s total number of shares.
● Only unrestricted equity may be used to buy back treasury shares.
● The Board will decide on how these shares are to be acquired. Treasury
shares may be bought back in disproportion to shareholders’ holdings
(directed acquisition). This authorisation also includes the acquisition
of shares through public trading on Nasdaq OMX Helsinki in accordance
with the rules and instructions of Nasdaq OMX Helsinki and Euroclear
Finland Ltd, or through offers made to shareholders.
● Shares may be acquired in order to improve the company’s capital
structure, to fund or complete acquisitions or other business trans-
actions, to offer share-based incentive schemes, to sell on, or to be
annulled.
● The shares must be acquired at the market price in public trading.
The minimum price of the shares to be acquired shall be the lowest
quotation in public trading while the authorisation is in force and,
correspondingly, the maximum price shall be the highest quotation in
public trading while the authorisation is in force.
● The Board of Directors is otherwise authorised to decide on all terms
relating to share buyback.
This authorisation will supersede the authorisation granted by the AGM of
21 March 2022 and is valid for 18 months, that is, until 23 September 2024.
Authorising the Board of Directors to decide on a
share issue and granting of special rights
The AGM authorised the Board to decide on an ordinary or bonus issue of
shares and the granting of special rights (as defined in Section 1, Chapter
10 of the Limited Liability Companies Act) in one or more instalments, with
the following conditions:
● This issue may total a maximum of
2,500,000 shares. The proposed number is under 10 per cent of the
company’s total number of shares. The authorisation applies to both
new shares and treasury shares held by the company.
● The authorisation may be used to fund or complete acquisitions
or other business transactions, for offering share-based incentive
schemes, to develop the company’s capital structure, or for other
purposes decided by the Board.
● It is proposed that this authorisation should include the right for the
Board to decide on all terms related to the share issue or special rights,
including the subscription price, payment of the subscription price
in cash or (partly or wholly) in capital contributed in kind or its being
writ ten off against the subscriber’s receivables, and its recognition in
the company’s balance sheet.
This authorisation will supersede the authorisation granted by the AGM of
21 March 2022 and is valid for 18 months, that is, until 23 September 2024.
More information about the AGM’s decisions is available at
digia.com/en/investors/governance/annual-general-meeting/agm-2022.
Board of Directors and auditor
Digia Plc’s Annual General Meeting (AGM) of 23 March 2023 re-elected
Mart ti Ala-Härkönen, Sant tu Elsinen, Robert Ingman, Sari Leppänen and
Outi Taivainen as members of the Board. Henry Nieminen was elected
to the Board as a new member. At its organisational meeting after the
AGM, the Board of Directors elected Robert Ingman as Chair and Mart ti
Ala-Härkönen as Vice Chair of the Board.
Ernst & Young Oy, Authorised Public Accountants, are Digia’s auditors,
with Authorised Public Accountant Terhi Mäkinen as the chief auditor.
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
9
Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
Commit tees of the Board of Directors
During the 2023 fiscal year, Digia’s Board of Directors had three (3)
commit tees: the Audit Commit tee, the Compensation Commit tee, and the
Nomination Commit tee.
● The Audit Commit tee consisted of Mart ti Ala-Härkönen (Chair), Sant tu
Elsinen and Henry Nieminen.
● The Compensation Commit tee consisted of Outi Taivainen (Chair),
Robert Ingman and Sari Leppänen.
● The Nomination Commit tee consisted of Sant tu Elsinen (Chair), Robert
Ingman and Mart ti Ala-Härkönen.
CEO and the Management Team
Digia Plc’s CEO is Timo Levoranta, who also serves as the Chair of the
Management Team.
On 31 December 2023, Digia’s Management Team consisted of:
● Timo Levoranta, President and CEO
● Pia Huhdanmäki, Senior Vice President, HR, Culture & Sustainability
● Juhana Juppo, CTO and Senior Vice President
● Mika Kervinen, General Counsel
● Jukka Kotro, Senior Vice President, Business Platforms
● Tuomo Niemi, Senior Vice President, Financial Platforms and M&As
● Sami Paihonen, Senior Vice President, Digital Solutions
● Pasi Ropponen, Senior Vice President, Sales and Marketing
● Kristiina Simola, Chief Financial Officer (CFO)
● Janne Tuominen, Senior Vice President, Managed Solutions
You can read more about Digia’s Management Team on the company’s
website: digia.com/en/investors/governance/ceo-and-management.
Events after the balance sheet date
There have been no major events since the balance sheet date.
Risks and uncertainties
Digia’s risk management process is supported by centralised risk manage-
ment software. Risks are classified as strategic, financial, operational
and sustainability risks. The Audit Commit tee of the Board of Directors
is responsible for supervising the implementation of risk management
and assessing its effectiveness. Monitoring focuses on risks of material
significance to the company that are classified as high risk. Digia’s Group
Management Team is responsible for the appropriateness of risk manage-
ment and overseeing operational activities. The owner of risk management
is responsible for reporting on risks and their correct assessment.
The development of the risk status is reported to the Audit Commit tee
twice a year and the Group Management Team monitors the risk status
at its regular meetings. Reports cover the risk status, the impacts of
significant risks and measures used to manage them, and the monitoring
of objectives, including the specified indicators.
The company’s strategic and financial risks relate to increasing
competition and potential significant changes in the company’s operating
environment and service areas. General economic trends and changes
in customers’ operating environment and financial position may have an
unfavourable impact on the company’s business, financial position and
result through slower decision-making and the postponement or cancella-
tion of IT investments.
Implementing the growth strategy places demands on both the
organisation and its management. The company’s ability to recruit,
maintain and develop the correct competence – and also to correctly time
the offering to meet demand – will play a vital role. In line with its strategy,
Digia is also seeking growth through acquisitions. However, Digia cannot
be certain of locating suitable companies for acquisition or of successfully
integrating them.
Operational and cyclical risks largely involve short-term demand in
the operating environment and remain in effect due to the uncertainty in
the business climate. If demand sees a sharp fall, price levels might also
decline. Although the pricing models used in the service business balance
out cyclical business, products provided via SaaS (Software as a Service)
involve longer-term revenue streams compared to the one-off payment
of product licenses. In an inflationary environment, it is not certain how
quickly and to what extent the rise in costs will be passed on to market
prices.
Major customer projects – and fixed-price projects in particular –
involve both business opportunities and risks. As customer projects
increase in size, the risks associated with profitability management also
grow, and there is a greater need to manage extensive contract and
delivery packages. Large customer projects typically involve delivery-re-
lated sanctions whose materialisation always poses a risk. Risks related to
customer receivables are also growing.
Data security and protection risks comprise a significant risk area in
the company’s business operations. Organisations have more and more
information that is critical to their operations. Threats to data security and
protection, and their quality and quantity, have risen significantly in recent
years. Data security and protection risks mainly concern technology and
people. Significant risk factors include, for instance, risks in high-security
projects and the subcontracting chain. Due to the nature of its operations,
the company is also the target of hostile influence. The company
identifies, manages and prevents both internal and external threats.
The company implements a regular ISO 27001-certified risk management
process based on best practices in handling data security and protection
risks. Risks are identified and their impact and significance are analysed.
The risk level is reduced with appropriate measures where possible.
Operational response and the handling of potential threats have been
planned, rehearsed and tested in practice. The company’s employees are
continuously trained, and data security and protection issues are actively
communicated within the company and, if necessary, also to partners and
customers. The company works in close cooperation with a variety of data
security and protection authorities and networks. Physical security and
personnel safety issues are managed using mechanisms similar to those
employed in data security and data protection.
Sustainability risks consist of environmental, social and governance
risks. Office work poses a rather low risk of environmental damage. The
potential risks related to social responsibility that are monitored include
experiences of overwork, occupational well-being, discrimination and
unequal treatment. The monitoring of procurements, in turn, involves
potential human rights risks such as the use of forced labour in the manu-
facture of equipment and the sourcing of raw materials. Administrative
risks primarily concern the company’s legality and ethical operations. You
can read more about Digia’s sustainability and risks in the “Non-financial
reporting” section of the Report of the Board of Directors.
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
10
Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
Board’s dividend proposal
According to the balance sheet dated 31 December 2023, Digia Plc’s
distributable shareholders’ equity was EUR 66,799,448.52, of which EUR
8,056,007.48 was profit for the fiscal year. At the Annual General Meeting
(AGM), the Board of Directors will propose that a dividend of EUR 0.17 per
share be paid according to the confirmed balance sheet for the fiscal
year ending 31 December 2023. Shareholders listed in the shareholders’
register maintained by Euroclear Finland Oy on the dividend reconciliation
date, 22 March 2024, will be eligible for the payment of dividend. Dividends
will be paid on 2 April 2024.
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
11
Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
Digia reports on responsibility to external stakeholders in connection with
its annual reporting. The report complies with the requirements set for
disclosure of non-financial information in accounting legislation. Digia’s
sustainability indicators, such as key environmental and personnel figures,
are reported for the same period as our financial indicators: 1 January – 31
December 2023
In this report on non-financial information, the following topics are dealt
with in compliance with the requirements of the Accounting Act:
Accounting Act requirement Location in report
Description of business model Business model
Environmental issues Environment
HR mat ters and social responsibility People
Human rights People
Anti-corruption measures Trusted Partner
Business model
Digia is a growing software and service provider with a comprehensive
offering of IT services. We manage the entire lifecycle of our services from
implementation to maintenance and further development. We provide our
customers with a service package covering mobile and online services,
data platforms and knowledge-based management, integrations and
APIs, as well as business core systems including high-security solutions.
We provide maintenance services for all our solutions to ensure that
our customers can operate their business-critical systems and services
around the clock. Our operations are founded on strong customer
relations, product and service packages, a partnership network, respon-
sibility, professionalism and a culture that supports the success of our
professionals.
Digia’s main market is Finland, and we also provide solutions
internationally. In addition to Finland, Digia operates in Sweden and the
Netherlands. Digia’s group structure is described in more detail on page 3
of the Report of the Board of Directors.
Non-financial reporting
Digia’s material sustainability themes are presented in the materiality matrix.
Busines
conduct
Clima
te
change
Resour
ce use and
circular economy
Workers in the
value chain
Consumer
s
and end-users
Own workforce
Impact materiality
Financial materiality
MINIMAL
INFORMA TIVE
IMPORTANT
SIGNIFICANT
CRITICAL
MINIMAL
INFORMA TIVE
IMPORTANT
SIGNIFICANT
CRITICAL
Our material sustainability themes
Description of the materiality assessment process
Digia carried out a double materiality assessment in 2023. The assessment
identified the most significant sustainability themes for Digia’s business,
taking the entire value chain into account. The assessment was based on the
EU Corporate Sustainability Reporting Directive (CSRD) and the European
Sustainability Reporting Standards (ESRS). It determined the themes on
which Digia’s business has significant positive and/or negative impacts and
the themes that create the most significant business risks and/or opportuni-
ties for Digia.
The double materiality assessment was carried out in collaboration with
an expert partner. Digia’s Group Management Team actively participated
throughout the assessment process. Other internal experts also took part in
the assessment, for example, via interviews or workshops. The assessment
was also discussed by the Audit Commit tee of the Board of Directors.
The process utilised existing data on Digia’s sustainability themes, plans,
and external sources of information about typical sustainability themes
within the sector. Digia’s earlier work on stakeholders’ expectations for
sustainable development was also used. This stakeholder-related back-
ground material included customer interviews, online customer surveys, a
reputation survey and an employer image survey.
We review our materiality assessment at least once per strategy period
and, if necessary, also at more frequent intervals if there are significant
changes in our operating environment or business. Digia current strategy
period covers the years 2023–2025.
Digia’s material sustainability themes
Six out of the ten sustainability themes mentioned in the directive also
emerged as material themes in Digia’s double materiality assessment:
climate change, resource use and circular economy, own workforce, workers
in the value chain, consumers and end-users, and business conduct.
We have appointed people to take responsibility for and promote specific
themes in accordance with the Corporation Sustainability Reporting
Directive.
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
12
Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
Material sustainability themes, and their impacts, risks and opportunities
Negative impacts Positive impacts Business risks Business opportunities
E1 Climate change Emissions and resource use caused by the value
chain: emissions and resource use caused by the
value chain, the company’s own operations and IT
solutions.
Supporting GHG emission reductions: an opportunity
to support emission reductions with the aid of
digital solutions that facilitate energy and resource
efficiency.
Equipment availability: Global supply chains for IT
equipment may be disrupted as a consequence of
climate threats.
Supporting the customer’s sustainability pathway:
increasing requirements highlight the need for
sustainability-related data management and
reporting, a reduction in emissions and energy
consumption, and the adoption of resource-efficient
and circular economy-based business models.
E5 Resource use and the circular
economy
Overview of the entire value chain: Even though IT
equipment and waste is recycled, there is limited
visibility in the value chain towards the end of a
device’s lifecycle.
Supporting resource use and the circular economy:
an opportunity to support resource wisdom with the
aid of digital solutions.
Ability to meet the requirements of environmental
responsibility: there are increasing requirements
related to emissions and the circular economy in
particular, both in terms of business operations and
customer needs.
Supporting the customer’s sustainability pathway:
increasing requirements highlight the need for more
efficient use of resources, which can be facilitated by
digital solutions.
S1 Own workforce Challenges in the workplace: gender distribution,
equal treatment, inclusion of different personnel
groups, mental health problems.
Providing employees with meaningful and
challenging work: supporting wellbeing at work and
continuous personal development.
Challenges in workforce availability and retention:
skilled in-house personnel and subcontracting are
key success factors.
An at tractive employer: the ability to provide good
working conditions and meaningful work that leads to
personal development is an advantage in at tracting
in-house personnel and partners.
S2 Workers in the value chain Negative impacts on value chain workers: potential
challenges relating to working conditions with
respect to both subcontractors and IT equipment
purchases.
Providing meaningful and challenging work to a broad
network of subcontractors.
Disadvantages in the use of external labour:
potential shortcomings in nearshore, offshore or
subcontractor networks can undermine trust and
cause reputational damage.
Providing meaningful and challenging work to a broad
network of subcontractors.
S4 Consumers and end-users Negative impacts on the end-users of services:
potential data protection breaches and users’
varying starting points and levels in the use of digital
services.
Accessibility of information and services to
end-users: Promoting the digitalisation of society
and developing secure, accessible and easy-to-use
services for end-users.
Data protection and security breaches: are
particularly harmful to reputation and high
compensation claims are also possible; the use of
artificial intelligence must also be examined in the
future.
Secure, accessible and easy-to-use solutions:
the ongoing digitalisation of society will create
opportunities for partners who are able to provide
services while taking the safety and starting points of
users into account.
G1 Business conduct Digia operates in areas in which the negative impacts
of ethical activities are relatively minor on a global
scale.
Systematic management practices and training that
promote ethical conduct in accordance with the
company’s guidelines.
Violations of ethical business practices: although
violations are unlikely, their consequences can be
significant.
A reliable partner: becomes increasingly important
with the rise in ethical business practices, growing
legal requirements and an increasing need to ensure
data protection and security.
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
13
Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
Stakeholder expectations and dialogue
When identifying the material aspects of responsibility for each of our
stakeholders, we have taken into account the most significant economic,
social and environmental impacts of our operations and services, as
well as other significant trends affecting the ICT sector. We build up an
understanding of materialities and stakeholders’ expectations through a
combination of routine management and regular meetings, surveys and
analyses. Our most important stakeholders are customers, personnel,
investors, potential employees and educational institutions, technology
partners, subcontractors, and organisations and communities.
Both investors and our customers have become increasingly active in
areas relating to sustainable development. ESG themes already form an
integral part of calls for tenders and require detailed information about a
variety of sustainability themes, such as climate action, ethical business,
responsible sourcing and human rights. We have also set shared sustain-
ability targets for our customer relations. As part of our customers’ supply
chain, we must also actively communicate about our own sustainability
themes and our success in these areas.
As we want to be a trusted, long-term partner to our customers, we
engage in regular dialogue via a variety of channels in order to further
develop our partnership. We actively listen to and survey our customers
through regular supplier and customer relations questionnaires, in
which we also ask for our customers’ views and assessments of Digia’s
sustainability.
Our most important stakeholders
Stakeholder Our approach Key topics, action and interaction
Customers We create value for our customers by utilising
our technological expertise and harnessing our
understanding of both our customers and their
industries.
We want to be a long-term development partner
to our customers
• Meeting customer needs with our broad-ranging expertise and the benefits generated by
our extensive offering.
• Collecting and utilising ESG data, for example, in connection with increased regulation.
• Resource efficiency, green coding and the responsible use of data.
• In addition to engaging in continuous dialogue with our customers, we also gather feedback
with the aid of customer and supplier surveys and assessments.
Personnel Our healthy, skilled and diverse personnel are our
most important resource.
We want to provide our employees with
a community in which the value of their
competence increases through on-the-job
learning.
• Support and early intervention with regard to health, wellbeing and safety – and in
particular mental health.
• A hybrid work model and flexible working hours.
• Diversity and inclusion.
• Learning and learning targets.
• We collect feedback from personnel through a variety of channels, such as regular
employee surveys.
Investors Regular dialogue with shareholders and
the investor community. Objectives include
increasing shareholder value.
• Investor events and meetings.
• Collecting feedback, such as surveying our small investors.
Potential employees
and educational
institutions
Close cooperation, particularly with educational
institutions in the ICT sector.
We participate in events and activities, and also
share our expertise in areas such as training.
• Cooperation with educational institutions, training (including retraining and qualification
upgrades), internships, excursions and theses.
• Active communications about our workplace community on social media.
• We regularly participate in surveys made among students and job seekers.
Technology partners Active participation with an extensive, active and
skilled partner network.
• Technology trends, capability development
• Networking and cooperation to enhance customer value.
Subcontractors Subcontracting and networking are
characteristic of today’s ICT sector.
Subcontractors and freelance developers enable
project scalability.
• Commit ting to Digia’s Supplier Code of Conduct.
• Responsible cooperation and the management of sustainability risks throughout the entire
supply chain.
• We ensure compliance with the Code of Conduct with the aid of an annual supplier survey
and random supplier audits.
Organisations and
communities
Active cooperation with selected partners. Participation in activities such as:
• Key Flag Symbol/Association for Finnish Work
• Confederation of Finnish Industries (EK)
• the Inklusiiv community
• itSMF Finland ry
• Finland Chamber of Commerce/chambers of commerce
• Code from Finland
• the Mimmit koodaa (Women code) programme run by Ohjelmisto- ja e-business ry
• Finnish Association of Purchasing and Logistics LOGY
• Technology Industries of Finland
• TIEKE Finnish Information Society Development Centre
• Women in Tech
• UN Global Compact Network
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
14
Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
Focus areas, objectives and key indicators of
Digia’s corporate responsibility 2023–2025
Our sustainable business model and responsible way of working are
integral to our strategy and instrumental to our business success. We
updated our sustainability programme and its objectives for the new
2023–2025 strategy period.
Our focus areas in corporate responsibility are based on our strategic
policies, the expectations of key stakeholders, the characteristics of
the ICT sector and business environment, the impacts of the company’s
operations, and the objectives of the UN’s Sustainable Development Goals
and Global Compact.
The material focus areas in our corporate responsibility will remain the
same during the current strategy period, and we see the green transition
and the solving of sustainability challenges as business opportunities.
Digital solutions have the potential to significantly contribute to solving
sustainability challenges in other fields of business. In the strategy period,
we are ambitiously seeking to do even bet ter in all subareas of responsi-
bility (E, S and G). As our company also grows through acquisitions, we
are constantly developing and refining our targets and their monitoring in
collaboration with our subsidiaries, so as to create a consistent monitoring
model throughout the Group.
Topic UN Sustainable Development Goals Objective Key indicator Target level, 2025 2023
Planet (E)
We are reducing our carbon
footprint
CO
2
emissions from the entire
value chain
60% reduction in CO
2
emissions compared to 2019
–37%
1)
People (S)
Healthy, diverse and skilled
personnel
Employee Net Promoter Score
(eNPS)
eNPS +35% compared to 2022 +25%
2)
Increased diversity at a
number of organisational
levels
Proportion of women in
executive roles
25% 16%
Digia leaves a responsible
mental footprint
Absences related to mental
health
Fewer than 1.0 days of
absence per person per year
1,3
2)
We provide opportunities for
lifelong learning
Percentage of employees for
whom a learning target has
been set
A learning target has been set
for 75% of personnel
54%
Trusted partner
(G)
A visionary, reliable and
secure partner
Net Promoter Score (NPS) NPS +25% compared to 2022 +23%
3)
Entire organisation has
adopted ethical ways of
working
Percentage of employees who
have completed annual Code
of Conduct training
90% of Digia employees had
completed annual Code of
Conduct training
84%
4)
Digia’s subcontractors are
commit ted to Digia’s Code of
Conduct
Percentage of subcontractors
who are commit ted to Digia’s
Supplier Code of Conduct
100% of subcontractors are
commit ted to Digia’s Supplier
Code of Conduct
80%
Safe partner Percentage of employees
who have completed annual
security training
90% of Digia employees had
completed security training
95%
2)
1)
Digia’s emissions reduction plan has been drafted on the basis of the situation and scope defined in 2019.
Digia’s total carbon footprint for 2023 covers the entire Group with the exception of Top of Minds AB.
2)
Digia Plc and Digia Finland Ltd
3)
Digia Plc’s operations in Finland
4)
The entire Group excluding Top of Minds AB
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
15
Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
20232022202120202019
376
353
386
343
337
2.0
2 .1
2.52.5
2.6
20232022202120202019
3,900
1,930
1,700
1,210
1,510
3,050
9%
1%
90%
Planet (E)
Information and communications technology (ICT) is an important part of
society’s critical infrastructure. All who operate in this sector – like Digia
– also play a key role in reconciling society’s activities with the carrying
capacity of nature and the climate.
The largest environmental impacts of Digia’s operations are related to
energy consumption and equipment. Office work typically poses a very low
risk of environmental damage.
Our key environmental principles are:
1. Our own operations are in balance with the climate and the carrying
capacity of nature.
2. Environmental responsibility is part of the daily life and expertise of our
work community.
3. We accelerate the ecological renewal of society.
The focus areas during the 2023–2025 strategy period:
● We will reduce our carbon emissions throughout our value chain (–60
per cent by 2025 compared to the 2019 baseline).
● We favour circular economy functions.
● We operate resource-wisely and develop resource wisdom, green IT
and green coding activities.
● We produce customer solutions to solve sustainability challenges.
Digia’s carbon footprint
Digia has been carbon-neutral in terms of its own operations (Scope 1
and 2) in Finland since the beginning of 2020. In 2023, we expanded our
calculations to cover the entire Group. We are seeking to reduce emissions
from our own operations by, for example, favouring renewable energy in
our premises. We also compensate for any remaining emissions from our
own operations in a reliable manner. Digia has been offset ting emissions
from its own operations through Hiilipörssi since 2020.
Our goal is to reduce carbon emissions throughout our value chain
(Scope 1–3) by 60 per cent by 2025 and by 75 per cent by 2030 compared
to the 2019 baseline. We have drawn up a climate roadmap that contains
an action plan to reduce emissions, and also defines our climate
objectives until 2030. The plan also includes increasing Digia’s carbon
handprint. We aim to be carbon neutral throughout our entire value chain
by the end of 2030.
How Digia’s carbon footprint is calculated
We have been calculating the carbon footprint of our companies in Finland
since 2019. In accordance with the GHG Protocol, this calculation includes
emissions from the company’s own operations (Scope 1 and 2) as well as
emissions from the value chain (Scope 3) based on calculation scope that
is assessed annually. The company has chosen to employ the operational
control criterion when making these calculations.
Since 2019, Digia has expanded with the aid of seven acquisitions in
Finland and two abroad. In 2023, we extended our Group-level carbon
footprint calculation to cover foreign subsidiaries as well. The calculation
for 2023 covers all of the Digia Group’s operations with the exception of
the Swedish company Top of Minds AB, which was acquired towards the
end of the year. Digia’s emissions reduction plan has been drafted on the
basis of the situation and scope defined in 2019.
Digia is continuously developing and refining its carbon footprint
calculations. During 2023, we were preparing to meet the 2024 require-
ments of the EU Corporate Sustainability Reporting Directive (CSRD)
and the European Sustainability Reporting Standards (ESRS), and have
proactively taken our reporting in the direction of the new regulations. You
can read more about the scope of the calculation in the section “Reporting
principles and scope”.
Digia’s carbon footprint 2023
The carbon footprint of Digia’s own operations (Scope 1 and 2) in 2023
was about 376 t CO
2
eq. This figure includes emissions from the heating
and cooling of the Digia Group’s premises, emissions from the electricity
consumption of premises and data centres, and emissions from the fuel
consumption of leased cars.
In 2023, Scope 1 and 2 emissions increased by approximately 26 t CO
2
eq
compared to 2022. This was mainly due to an increase in the number of
premises in Finland and the fact that foreign offices were also included in
the calculations for the first time.
The carbon footprint of the entire value chain was about 3,903 t CO
2
eq.
In addition to the aforementioned, the figures include emissions related to
waste management, energy production and fuel manufacture, emissions
from business trips and commuting, and emissions from equipment and
Indicators for carbon footprint of own operations 2019–2023
Digia’s carbon footprint 2019–2023, own operations and
value chain, t CO
2
e
Digia’s carbon footprint 2023, in accordance with the
GHG Protocol
Carbon footprint of own operations
(scope 1+2)
Carbon footprint of the entire value chain
(scope 3, 2019 limit)
Carbon footprint of the entire value chain
(scope 3, 2023 limit)
Scope 1
Scope 2
Scope 3 (upstream)
Carbon footprint of own operations
(scope 1+2), t CO
2
e
Carbon footprint of own operations
relative to net sales, kg CO2e / EUR 1,000
3,900 t
CO
2
e
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Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
other purchases. Emissions related to energy and fuel production were
included in the calculations for the first time. The purchase of equipment
and services was also calculated much more accurately than in previous
years. Compared to previous years, emissions – and particularly Scope 3
emissions – rose throughout the entire value chain, but this was mainly
due to the increased scope and accuracy of the calculations. When the
scope of the calculations was limited to the 2022 scope, per-employee
emissions did not increase relative to the corresponding emissions in
2022.
Using the 2019 scope, our 2023 carbon footprint was 1,929 t CO
2
eq,
which was 37 per cent lower than in 2019 (3,050 t CO
2
eq).
Emissions from premises for the 2022 carbon footprint calculation were
recalculated in the fall of 2023, increasing emissions for the whole year to
1,700 t CO
2
eq (+50 t CO
2
eq compared to previously reported).
Carbon footprint indicators show emissions trends relative to changes
in our business. In 2023, emissions relative to personnel were about 2.6
t CO
2
eq tons per employee and 10 kg CO
2
eq per EUR 1,000 relative to net
sales. When using the 2019 scope, our per-employee carbon footprint
remained the same as it was in 2022. Our own emissions relative to net
sales have decreased slightly on 2022, which indicates that progress has
been made in the climate-smart use of resources.
Carbon footprint indicators 2019 2020 2021 2022 2023 Unit
Carbon footprint of own operations (Scope 1+2) 337 343* 386* 353* 376* tonnes CO
2
e
Carbon footprint of own operations (Scope 1+2,
2019 limit) 337 343* 386* 353* 372*
Own emissions relative to net sales 2.6 2.5* 2.5* 2.1* 2.0* kg CO
2
e / EUR 1,000
Carbon footprint of the entire value chain 3,050 1,510 1,210 1,700 3,900 tonnes CO
2
e
Emissions per employee (2019 limit) 2.4 1.1 1.0 1.3 1.3 tonnes CO
2
e/employee
Emissions per employee (2023 limit) – – – – 2.6 tonnes CO
2
e/employee
Emissions relative to net sales 23.2 10.9 7.8 9.7 10.0 kg CO
2
e / EUR 1,000
* Digia has been compensating for the emissions of its own operations since 2020.
Energy consumption and mix (ESRS E1–5)
Energy consumption and mix 2023
Total fossil energy consumption (MWh) 554.8
Fossil energy sources as a percentage of total energy consumption (%) 29%
Total consumption of nuclear energy products (MWh) 242.2
Nuclear energy products as a percentage of total energy consumption (%) 13%
Consumption of fuel from renewable sources, including biomass (and organic industrial and municipal waste,
biogas, renewable hydrogen, etc.) (MWh) 176.0
Consumption of purchased or acquired electricity, heat, steam and cooling from renewable sources (MWh) 8.1
Consumption of self-generated non-fuel renewable energy (MWh) 0.00
Total consumption of renewable energy (MWh) 507.9
Renewable energy sources as a percentage of total energy consumption (%) 27%
Total energy consumption (MWh) 1,889.4
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
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Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
Gross Scopes 1, 2, 3 and Total GHG emissions (ESRS E1–6)
2023
Scope 1 GHG emissions
Gross Scope 1 GHG emissions (tCO
2
eq) 40.7
Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%) 0
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions (tCO
2
eq) 289.6
Gross market-based Scope 2 GHG emissions (tCO
2
eq) 335.2
Significant Scope 3 GHG emissions
Total Gross indirect (Scope3) GHG emissions (tCO
2
eq) 3,527.1
1 Purchased goods and services 1,571.6
Cloud computing and datacentre services 199.3
2 Capital goods 362.9
3. Fuel and energy-related activities (not included in Scope 1 or 2 emissions) 163.4
4 Upstream transportation and distribution N/A
5 Waste generated inoperations 7.5
6 Business travel 410.1
7 Employee commuting 1,011.7
Total GHG emissions 3,903.1
Total GHG emissions(location-based) (tCO
2
eq) 289.6
Total GHG emissions(market-based) (tCO
2
eq) 335.2
Energy intensity based on net revenue (ESRS E1–6)
GHG intensity relative to net revenue 2023
Total GHG emissions (location-based) per net revenue (tCO
2
eq/Monetary unit) 1.5 kg CO
2
e / 1,000 EUR
Total GHG emissions (market-based) per net revenue (tCO
2
eq/Monetary unit) 1.7 kg CO
2
e / 1,000 EUR
Green Code
According to Tieke’s Guide to ecologically sustainable public software
procurement, the Information and Communication Technology (ICT)
sector’s emissions are one of the fastest growing individual sources of
carbon dioxide emissions. The ICT sector accounts for about 4–10 per cent
of global electricity consumption. However, digital solutions can also help
to achieve emission reductions.
The green code is one way of curbing emissions. It refers to code that
has been optimised for maximum efficiency, and also methods seeking to
minimise the energy consumption of software. In 2023, Digia published an
internal guide to increase awareness of green code methods within our
organisation. The contents of this guide will be further developed with
the aim of making green software practices part of our everyday life and
cooperation with customers. This theme was actively discussed with our
customers over the course of the year. We have also been actively involved
in green code forums.
People (S)
Everything we do is based on people in our work community and network.
Competence and its continuous development, coupled with an ethical
operating culture, are essential if we want to take good care of our experts
and provide our customers with the best possible service. We want the
value of Digia personnel’s expertise to increase during their term of
employment.
Diversity and inclusion are part of our evolving day-to-day work,
something that we encourage throughout our network. A good manage-
ment and work culture bolsters the achievement of an excellent employee
experience.
The focus areas during the 2023–2025 strategy period:
● We strengthen a safe, healthy and thriving operating environment
● We promote diversity and inclusion.
● We offer opportunities for lifelong learning in accordance with our
cultural principles.
● We produce customer solutions that promote social responsibility.
During 2023, we were preparing to meet the 2024 requirements of the EU
Sustainability Reporting Directive (CSRD) and the European Sustainability
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
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Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
Reporting Standards (ESRS), and have proactively taken our reporting in
the direction of the new regulations. Notes on whether the figures apply
to the entire Group or whether there are some country- or subsidiary-spe-
cific exceptions have been given in connection with the data.
Personnel
The Digia Group employed 1,527 people in Finland, Sweden and the
Netherlands at the end of 2023. In addition to its in-house personnel, Digia
utilises subcontracting in its customer work.
We monitor and measure our employee net promoter score (eNPS) on
an annual basis. Our goal for 2025 is to improve our eNPS by 35 per cent
compared to 2022. A 25 per cent improvement was achieved in 2023. This
result covers personnel at Digia Plc and Digia Finland Ltd. Other subsidi-
aries have their own indicators to monitor employee satisfaction.
Finland Sweden Total*
Number of employees
1,389 130 1,519
Number of employees with permanent employment contracts
1,381 130 1,511
Number of employees with fixed-term employment contracts
8 0 8
Number of employees with employment contracts for variable working hours
23 0 23
Number of employees with full-time employment contracts
1,263 124 1,387
Number of employees with part-time employment contracts
126 6 132
* Personnel in the Netherlands are excluded due to their small number.
A total of 174 employees left Digia during the reporting period, resulting in
turnover of 9.5 per cent. The figures do not include Top of Minds AB.
Characteristics of non- employee workers in the
undertaking’s own workforce (ESRS S1–7)
Subcontracting is a natural part of established practices in the IT sector.
This operational model enables rapid scaling and the ability to meet a
variety of technology requirements in accordance with customer needs.
Digia’s subcontracting mainly focuses on the Digia Hub network, which
consists of more than 5,000 freelance professionals and hundreds of
subcontracting companies in Finland. Digia Hub also has nearshore
subcontractors in the EU. In addition to our domestic subcontractors and
nearshore operators, Fulcrum Digital is Digia’s main partner for subcon-
tracting international experts and has also commit ted to Digia’s Code of
Conduct. A total of 417 people were working as subcontractors in Digia’s
projects at the end of 2023.
Characteristics of the undertaking’s employees (ESRS S1–6)
The figures indicate the number of employees at the end of the reporting
period.
Gender Number of employees
Men 1,092
Women 435
Other 0
Not reported 0
Total number of employees 1,527
Country Number of employees
Finland 1,389
Sweden 130
Netherlands 8
Women Men Other Not reported Total
Number of employees
435 1,092 0 0 1,527
Number of employees with permanent employment contracts
431 1,085 0 0 1,516
Number of employees with fixed-term employment contracts
4 7 0 0 11
Number of employees with employment contracts for variable working hours
9 14 0 0 23
Number of employees with full-time employment contracts
377 1,015 0 0 1,392
Number of employees with part-time employment contracts
58 77 0 0 135
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
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Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
80%
20%
0%
63%
9%
28%
Collective bargaining coverage and social dialogue (ESRS S1–8)
Digia has its own collective agreement in Finland, which entered into force
in May 2023. This collective agreement covers employees of Digia Plc and
Digia Finland Ltd, which equates to about 84 per cent of the Digia Group’s
total number of personnel. Digia Plc’s subsidiary Productivity Leap Oy uses
the Collective Agreement for the IT Service Sector as an unorganised
employer. Digia Sweden AB, Climber International AB and its subsidiaries,
and Top of Minds AB and its subsidiaries are not covered by a collective
agreement. Most Digital Sweden AB does not have any employees.
Diversity and inclusion
Diversity is part of Digia’s corporate responsibility: our goal is to make
Digia an even more inclusive workplace – a place where everyone can be
themselves. Psychological safety is one key aspect of inclusivity, and
studies have shown it to be a common factor among successful workplace
communities. Non-discrimination and equality are enshrined in our Code
of Conduct.
In 2023, we commissioned an equality and non-discrimination survey
of our personnel and used the results to prepare a new equality and
non-discrimination plan for 2023–2025. The plan’s key themes are an
inclusive culture and psychological safety, making the use of English
commonplace, increasing the proportion of women working at Digia, and
increasing inclusivity and career opportunities for women. The equality
and non-discrimination survey was also sent to our subcontractors for the
first time.
We monitor whether personnel feel they can be themselves in the
workplace. Our goal is for Digia employees to feel accepted for who they
are, and for as few employees as possible to give their experience a
low score. 7 per cent (5.3%) of employees gave their experience a low
score in 2023. In 2023, action related to this theme included training and
tribal meetings on the theme of neurodiversity, the Konkarit (Veterans)
programme for employees approaching retirement age, and LGBTQ++
afterwork meetings.
As part of Digia’s equality and non-discrimination work in 2023, we
joined the UN Global Compact’s Target Gender Equality Accelerator
training programme. This provides important information, and helps
companies to find suitable targets and draw up an action plan to promote
gender equality, diversity and equal pay.
Diversity indicators (ESRS S1–9)
We want to encourage women to enter the IT sector. We monitor and
measure the proportion of women in a variety of different roles on an
annual level. At the moment, Digia has the highest number of women in
project manager, service manager and consulting roles, and the least in
senior executive and architectural roles. Our goal for 2025 is for women to
account for 25 per cent of those in senior executive roles. The result for
2023 was 16 per cent. We are also aiming to increase the number of women
in architectural roles (3 per cent in 2023). Women accounted for 29 per
cent (31.2%) of those in supervisory roles in 2023.
The gender distribution of Digia’s top management and the age
distribution of employees is presented below. Digia’s definition of “top
management” is a member of the Group Management Team.
Wellbeing and competence
Wellbeing and a humane working day are two of the cornerstones of Digia’s
HR strategy and one of the main themes of our sustainability programme
and sustainable business operations. We support wellbeing by developing
everyday management skills, self-direction and personal competence
– and thereby the ability to meet the expectations of changing work
practices. We also ensure that work-related goals and expectations are
clear, and invest in our feedback culture, flexible working arrangements,
comprehensive occupational healthcare services, early intervention
processes and open communication. Digia offers training, coaching and
a variety of mental wellbeing services to help our personnel manage their
work.
Gender distribution at top management level
Distribution of employees by age group
Men (8)
Women (2)
Other
Under 30 years old
30–50 years old
Over 50 years old
Collective bargaining coverage Social dialogue
Coverage Employees – EEA (countries in which there are
at least 50 employees and they account for
more than 10 per cent of the total number of
employees)
Employees – non-EEA (an estimate for regions
in which there are at least 50 employees and the
employees account for more than 10 per cent of
the total number of employees)
Workplace representation (EEA only) (countries
in which there are at least 50 employees and the
employees account for more than 10 per cent of
the total number of employees)
0–19% Sweden Sweden
20–39%
40–59%
60–79%
80–100% Finland Finland
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
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Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
In recent years, national and global events have brought changes to
both everyday life and work that are affecting us all. Mental wellbeing is
also influenced by other internal and external factors. There are many
ways of nurturing and supporting mental wellbeing in everyday life. Digia
has now placed a special focus on strengthening mental wellbeing. Mental
wellbeing is strongly influenced by targets and competence, which we
monitor separately, but we also monitor and measure the number of
absences arising from mental health issues on an annual level. Our target
for 2025 is to have fewer than 1.0 days of absence per person per year for
mental health reasons. The number of absences in 2023 was 1.3 days of
absence per person. These figures cover Digia Plc and Digia Finland Ltd.
Adequate wages (ESRS S1–10)
Digia always pays at least the minimum wage specified in the collective
agreement. At Digia, salaries are determined in accordance with standard-
ised principles, and employees are treated equally and equitably. Gender,
age, other personal characteristics or minority status cannot affect salary
development. Digia seeks an average salary level that is in line with the
general market salary level in the sector. The need for salary reviews is
proactively assessed twice a year.
As part of the human rights survey we conducted in 2023, we also
reviewed the remuneration practices of our subcontractors’ nearshore
and offshore operations to ensure that adequate wages were being paid.
Social protection (ESRS S1–11)
Digia wants to be family-friendly employer that understands diverse
life situations. We support the varying life situations, working capacity
and care responsibilities of our employees by offering flexible, location-
independent working hours and providing occupational healthcare
services (which may vary from country to country and company to
company).
At Digia Plc and Digia Finland Ltd, employees have access to a care
service for sick children and can take a variety of family-related leave. In
addition to statutory occupational accident, life and pension insurance,
Digia also offers a range of additional insurance, such as medical expense
insurance and travel insurance for both working hours and leisure time.
Climber Finland Oy and Productivity Leap Oy have boosted social protec-
tion with leisure-time accident insurance.
Training and skills development indicators (ESRS S1–13)
Expertise and its continuous development plays a key role in enabling us
to serve our customers based on the latest information. We want the value
of Digia personnel’s expertise to increase during their term of employment.
Competence development occurs through interaction with others, our
feedback culture, and interesting new kinds of tasks and training.
As part of ensuring competence development of our personnel, we
monitor and measure the percentage of personnel for whom a learning
target has been set on an annual basis. In 2023, we renewed our perfor-
mance and development discussion and feedback collection process,
and also recorded learning objectives in our new ERP system for the first
time. Our goal for 2025 is to set a learning target for 75 per cent of our
personnel. Learning targets were recorded for 54 per cent of personnel in
2023.
Percentage of employees that participated in regular
performance and career development reviews*
All personnel Men Women Other
100% 100% 100% –
Average number of training hours per person for
employees, by employee category and by gender*
All personnel Men Women Other
52 h 51.5 h 53.3 h –
* Includes all of the Digia Group’s Finnish companies, Digia Sweden AB and Climber
Sweden AB.
Health and safety indicators (ESRS S1–14)
100 per cent of the Digia Group’s own workforce is covered by occupational
healthcare. Occupational healthcare coverage may vary between
companies.
There were five work-related accidents in 2023. There were no fatalities
as a result of work-related injuries and work-related ill health at Digia.
Work-life balance indicators (ESRS S1–15)
All of the Digia Group’s employees are entitled to take family-related leave.
6.2 per cent of Digia personnel took family-related leave in 2023. 5.5 per
cent of all women and 6.4 per cent of all men took family-related leave. The
figures do not include Top of Minds AB.
Compensation indicators (pay gap and total
compensation) (ESRS S1–16)
We analyse the realisation of pay equality from different perspectives
(such as gender, the competence classification of positions, and task
profiles). This figure is based on the aforementioned classification of
profiles and does not take into account other factors that may affect
salaries, such as personal competence levels.
Country Gender pay gap Total earnings ratio
Finland 97%
14%
Sweden* 102% 44%
* The figures do not include Top of Minds AB.
Incidents, complaints and severe human rights
impacts and incidents (ESRS S1–17)
All Digia employees play their part in creating a functional and psychologi-
cally safe workplace. During 2023, we revised our guidelines on intervening
in inappropriate behaviour and harassment, and organised training on
how to intervene in such situations for supervisors and others in positions
of trust. It is of primary importance to arrange a discussion between the
parties involved, facilitated by HR if necessary. If other reporting methods
do not feel safe, Digia employees can also report harassment and inappro-
priate behaviour through the Whistleblower channel.
Digia did not receive any reports of discrimination as specified in the
Equality Act, nor any reports of serious cases of human rights violations.
Human rights
Respect for human rights is also an important part of Digia’s ethical
operating culture.
In 2022, we conducted a survey of human rights risks and impacts
related to Digia’s business. This analysis was carried out in accordance
with the UN Guiding Principles on Business and Human Rights, and took
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
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Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
into account both actual and potential human rights risks and impacts.
Digia’s human rights impacts on its own personnel and human rights
impacts arising from Digia’s most significant procurements were both
selected for special examination.
In 2023, we deepened this analysis by extending the mapping of human
rights risks and impacts to Digia’s entire value chain (own operations,
supply chain, customers). We used this analysis to further develop our risk
management and controls in this area.
We also drew up our own human rights commitment, which has been
published on our website.
The actual or potential human rights risks identified in our value chain
were:
● Right to health and safety.
● Right to freedom of discrimination.
● Right to decent work.
● Right to freedom from labour exploitation and forced labour.
● Right to freedom of association and collective bargaining.
● Right to privacy.
We will use the results of our work to further develop our operating
methods, so as to mitigate human rights risks in our operations.
Trusted Partner (G)
We want to be a long-term development partner to our customers. Our
most important themes – also from the standpoint of customer expecta-
tions – are to be a visionary, reliable and secure partner.
Business is becoming networked, complexity is increasing and security
is ever-more important. Data responsibility, secure operations and their
promotion also facilitate the sustainable development of societies. In
addition, responsible data utilisation has a social responsibility dimension
through the privacy protection of individuals.
The focus areas during the 2023–2025 strategy period:
● We promote digital security by promoting secure operations and
responsible data utilisation.
● We develop the digital functionality of society.
● We promote ethics and responsibility.
● We are a visionary, reliable and secure partner.
Principles and management of sustainability
Digia’s operations are governed by the Finnish Limited Liability Companies
Act, regulations concerning publicly listed companies, the rules and
regulations of Nasdaq Helsinki Oy, and Digia’s Articles of Association.
Our operations are also guided by the policies and operating principles
approved by the Board of Directors or Group Management Team. Our
responsibility is based on our Code of Conduct, which is approved by
the Board of Directors, and the UN Sustainable Development Goals. We
are commit ted to respecting human rights in accordance with the UN’s
Universal Declaration of Human Rights, the UN Global Compact, and the
International Labour Organisation’s (ILO) Fundamental Principles and
Rights at Work.
However, in our changing business environment, responsibility is
based above all else on the continual monitoring and improvement of
our operations. We closely monitor Finnish and international corporate
responsibility regulation and develop our corporate responsibility
proactively. We have fallen within the scope of the Non-Financial Reporting
Directive (NFRD) since 2017, and are now preparing for the develop-
mental needs and requirements that will arise from the EU Corporate
Sustainability Reporting Directive (CSRD) and other EU regulations. During
the year, our corporate responsibility development activities focused
on projects and measures aimed at meeting the requirements of the
upcoming Sustainability Reporting Directive. The most important of these
were the double materiality assessment and an ESG data management
package, which included the acquisition of an ESG reporting solution.
As the highest administrative body, Digia’s Board of Directors is
also responsible for steering the company’s operations with respect
to sustainability themes. The Audit Commit tee annually reviews
non-financial information, including our sustainability objectives and
sustainability-related risks. The Audit Commit tee also reviews a report on
whistleblowing twice a year. When necessary, all critical or urgent topics
can be reported to the Audit Commit tee on a case-by-case basis.
The Board of Directors’ Audit Commit tee is also responsible for
monitoring, assessing and preparing information to the Board about the
company’s measures in the development of reporting, internal control and
auditing, and the effectiveness of risk management systems. The Audit
Commit tee also provides guidance on measures related to the verification
of sustainability reporting. Due to the increased need to address sustain-
ability issues, the Audit Commit tee added one additional meeting to its
annual meeting calendar.
The CEO is responsible for Digia’s corporate responsibility, while the
Senior Vice President, HR, Culture and Sustainability is in charge of
responsibility reporting. The Group Management Team discusses the
most important sustainability themes, which are prepared by a sustain-
ability steering group consisting of members of the Group Management
Team. The Group Management Team decides on sustainability indicators
and monitors their realisation. The Group Management Team approves
new policies and commitments, such as the human rights commitment
published during the review period. The sustainability steering group also
discusses measures related to various areas of corporate responsibility,
which in 2023 included a double materiality assessment and developing
sustainability reporting.
The sustainability working group heads up operational responsibility
efforts, coordinated by focus area (themes). The Senior Vice President,
HR, Culture and Sustainability, chairs the working group. Corporate
responsibility activities are led and coordinated by the Head of
Sustainability.
Our governance structure is described in more detail in our separate
Corporate Governance Statement.
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An ethical operating culture, anti-bribery and anti-corruption
Our sustainable way of working is based on our shared cultural principles,
Code of Conduct, and ethical, law-abiding operations. Compliance with
the Code of Conduct and our responsible way of working are integral to
our strategy and instrumental to our business success. In collaboration
with our customers and network, this approach guides us in our everyday
work and helps us achieve our goals. The only way we can lay a foundation
for the growth and success of our company is by doing the right thing. Our
Code of Conduct demonstrates our commitment to ethical and sustain-
able activity in all of our business operations.
To help mobilise our Code of Conduct among personnel, we have
introduced mandatory training that must be renewed on an annual basis.
This training runs through our Code of Conduct and other guidelines, and
provides instructions on how Digia employees should act if, for example,
they suspect misconduct in the company’s business. The training is avail-
able in Finnish and English via Digia’s e-learning platform. We monitor and
measure how many of our employees have completed Code of Conduct
training each year. The goal is for 90 per cent of personnel to complete
annual training. 84 per cent of our personnel (68%) had completed this
training in 2023. Employees with long absences have been excluded from
the figures. Top of Minds is also not included in the figures.
In 2023, we published a Code of Conduct for our suppliers and subcon-
tractors, to which all subcontractors must commit. Compliance with the
Code of Conduct is ensured with the aid of an annual supplier survey
and random audits of selected suppliers and subcontractors. 80 per cent
(73%) of our subcontractors had commit ted to the Code of Conduct in
2023. 2023 was also the first year that we sent our subcontractors an
equality and non-discrimination survey and a data protection and security
survey.
In addition to our Code of Conduct, Digia has a supplementary anti-
bribery and anti-corruption policy that is based on the UN Convention
against Corruption. The purpose of this policy is to emphasise that
Digia deems bribery and corruption to be serious mat ters and it aims to
define rules and guidelines that promote ethical and legal conduct. The
anti-bribery and anti-corruption policy is included in our Code of Conduct
training.
Digia’s operations do not pose a high risk in terms of anti-bribery
and anti-corruption activities. This is because Digia operates largely in
Finland. Furthermore, the operations of Group companies mainly extend
Management of Sustainability
Board of Directors
Audit Commit tee
Remuneration Commit tee
Board of Directors
The Sustainability Steering Group
Sustainability Working Group
The Sustainability Steering Group
Human rights, equality and non-discrimination Digital safety: data security and privacy
Supply chain and procurement Environment and energy
Good governance and law Customers and subcontracting
Policies and commitments
Planet People Trusted Partner
Environmental policy
Climate roadmap: responsible
procurement
Hybrid work model
Circular economy practices: IT
hardware purchases/leasing,
furniture purchases/leasing
Digia’s Green code -guide
Human rights commitment
Cultural principles
Equality and non-discrimination plan
Early intervention
Salary and r
emuneration hand book
Business ethics and rules, Code
of Conduct and Supplier Code of
Conduct
Anti-corruption and anti-bribery
policy
Disclosure policy
Ethical principles for using artificial
intelligence
Digital safety: data security and
privacy policies
ISO 27001 information security
management system
ISO 9001 quality management system
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
23
Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
to countries classified as having a low risk of corruption according to
Transparency International.
The importance of anti-bribery and corruption activities is heightened
by our extensive participation in public procurement and the large
proportion of public administration organisations in our customer base.
We pay particular at tention to fighting corruption in public procurement.
Digia does not participate in any political activities through donations or
sponsorship.
Digia has foreign partners in countries where the risk of bribery and
corruption is high. We take this risk into account in our supplier assess-
ments, and otherwise select our partners very carefully. We also require
our partners to commit to compliance with anti-bribery and corruption
legislation.
All Digia Group companies are commit ted to complying with the same,
or a similar, code of conduct, and also to corresponding anti–bribery
and corruption policies. Personnel working for Group companies have
been instructed to use low-threshold advisory and reporting channels.
These can be used to inquire about a conflict of interest in the tendering
process, either their own or another person’s.
We have introduced a reporting channel in accordance with the EU
Whistleblower Directive (EU2021/1937), through which a Digia employee or
external person can report any suspected misconduct or violations of our
Code of Conduct, either anonymously or under their own name. Digia is
commit ted to ensuring that no retaliatory measures will be taken against
whistleblowers. The channel can be found here:
ht tps://whistleblower.digia.com.
Digia will handle the reports in its own separately appointed processing
team. This processing team will consist of the Chair of the Board of
Directors’ Audit Commit tee, the General Counsel and a lawyer. If neces-
sary, the process will move forward to the next review stage in accordance
with the report’s classification, led by the appointed Group Management
Team member. The General Counsel regularly informs the Audit
Commit tee of any reports that have been received via the whistleblowing
channel and how they have been handled.
A total of 16 reports were received through the whistleblowing channel
in 2023, two of which required further action after investigation. These
follow-up measures involved revising internal guidelines. Digia had no
confirmed cases of bribery or corruption in 2023.
Reports of misconduct 2023
All reports received via the whistleblowing channel 16
Reports concerning employment contracts 12
Reports of financial misconduct 3
Reports of privacy infringements 1
Customer experience
The strategic objective of developing the customer experience is to
ensure that our customers are at the forefront of digital evolution, with an
operational model and rhythm that are right for them. We are a visionary,
reliable and secure partner.
Active dialogue with our customers enables us to forge trust in
everyday interactions. By broadly assessing our customer experience, we
seek ways in which we can develop together with our customers. Our goal
is to integrate the customer experience into our sustainability priorities,
objectives and indicators. We see strong links between the various areas
of our customer experience and sustainability.
The Net Promoter Score (NPS) is our main measure of customer
satisfaction and the customer experience. We are seeking a 25 per cent
improvement by 2025, and a result of +23 per cent was achieved in 2023.
This figure covers all of the Digia Group’s Finnish companies.
Data protection and information security
Data protection and security comprise an extremely important aspect of
our operations. We maintain a high level of data protection and security by
training our personnel, administrative and technical controls, audits, and
continually developing processes.
Digia was issued with an international ISO 27001 data security
management certificate in late 2022, and its scope was expanded in 2023.
ISO 27001 is an international information security standard that provides
organisations with a security management framework for implementing,
administering and continuously improving information security manage-
ment. The certificate is granted to organisations whose operations have
been audited according to the standard.
The certificate covers some of the operations in Digia’s Managed
Services and Financial Platforms business areas, as well as our offices
in Helsinki, Tampere, Jyväskylä, Turku, Oulu and Rauma. This certificate
sets strict requirements for our operations and guides us to maintain our
information security expertise at a peak level going forward.
Every Digia employee familiarises themselves with our data security
practices and guidelines as part of their induction. In addition, every
Digia employee and subcontractor working on our premises completes
a training package each year. In 2023, we updated our safety training to
reflect our renewed ISO 27001-certified security management system.
Our goal is for at least 90 per cent of Digia employees to have completed
security training by 2025. This target applies to Digia Plc and Digia Finland
Ltd. 95 per cent of personnel had completed this training in 2023. In 2023,
we carried out a maturity assessment of Digia’s units and defined a plan
and focus areas for enhancing data protection.
The Finnish Defence Forces have granted Digia national facility security
clearance, which must be renewed at regular intervals. Facility security
clearance is a recognition of Digia as a proven, reliable IT partner that has
the ability to fulfil national deliveries with strict security requirements. In
addition to the Defence Forces, Digia also works closely with many other
socially significant official bodies and security of supply actors.
Tax footprint
We comply with local legislation on the payment, collection, recognition
and reporting of taxes. Filing accurate tax returns on time and handling our
other statutory obligations both play a key role in this.
The tax returns for each of Digia’s companies are made by a responsible
accountant. Withholding tax and social security contributions are handled
by each company’s outsourced payroll administration. Information is
submit ted to the Tax Administration by each company’s accountant, but
the Group’s financial administration will provide support as necessary.
The payment of tax-like fees is handled by each company using the
same process as other payments. The company did not engage in closer
cooperation with the tax authorities of any country in 2023.
Around 30.6 per cent of Digia’s shareholder base consists of Finnish
households. In addition, our largest shareholders include Finnish pension
companies. Digia Plc’s Annual General Meeting of 23 March 2023 decided
to pay a dividend of EUR 0.17 per share. The dividends were paid on 3 April
2023 and totalled EUR 4,515,000.
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
24
Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
Taxes and tax-like payments
EUR 1,000 2023 2022
Corporate tax 2,242 5,290
Indirect taxes 34,439 31,968
Withholding tax on salaries 27,154 24,509
Social security contributions 3,167 2,514
Total 67,002 64,279
Supply chain management
We developed various aspects of our supply chain management in 2023,
such as supplier selection, classification and risk management. We also
carried out a supply chain mapping of human rights risks and impacts,
which is described in more detail in the section “Human rights”. Our focus
was on subcontracting, as it is the most significant procurement category
with respect to sustainability. We will continue to develop our supply chain
management in 2024.
Sustainability risks
Digia’s sustainability risks consist of environmental, social and
governance risks. Digia has defined its sustainability risks as potential
negative impacts on people and the environment both within its own
organisation and in its value chain. Sustainability risks are part of the
Group’s risk management and follow the same internal control processes
as other risk management. Digia’s Group-level risk management and
the company’s most significant risks are described in more detail in the
Report of the Board of Directors under “Risks and uncertainties” and in the
Corporate Governance Statement, which also includes sustainability risk
management.
Environmental risks
The largest environmental impacts of Digia’s operations are related to
energy consumption and equipment. Office work typically poses a very low
risk of environmental damage. Environmental impacts are assessed every
six months. The significant environmental risks identified in conjunction
with these assessments fall within the scope of the company’s risk
management and are handled in accordance with the appropriate
procedure.
Social responsibility risks
The main social responsibility risks affecting Digia are related to personnel
and the supply chain. Data protection risks are inherent in the sector, and
are therefore one of Digia’s risk themes. We carried out a survey of human
rights risks and impacts related to Digia’s business in 2022, and deepened
this analysis during 2023. A more detailed description of these risks can be
found in the section “Human rights”.
Governance risks
Digia’s operations do not pose a high risk in terms of anti-bribery and
anti-corruption activities. This is because Digia operates largely in
Finland. Furthermore, the operations of Group companies mainly extend
to countries classified as having a low risk of corruption according to
Transparency International. However, Digia has foreign partners in coun-
tries where the risk of bribery and corruption is high. We take this risk into
account and select our partners very carefully.
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
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Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
Reporting principles and scope
The report complies with the requirements set for disclosure of
non- financial information in accounting legislation. We utilised the EU
Corporate Sustainability Reporting Directive (CSRD) and the European
Sustainability Reporting Standards (ESRS) when defining the content of
the report and carrying out the materiality assessment.
Digia’s financial reporting complies with IFRS accounting standards. The
financial responsibility information and key indicators have been taken
from the Consolidated Financial Statements.
Environmental and emissions reporting
Our environmental responsibility figures cover those operations that have
the greatest environmental impacts. Greenhouse gas emissions have
been calculated in accordance with the Greenhouse Gas (GHG) Protocol
standards and guidelines developed by the World Business Council for
Sustainable Development (WBCSD) and the World Resources Institute
(WRI). The company has chosen to employ the operational control
criterion when making these calculations.
Carbon dioxide equivalent factors have been used as emission factors
whenever they have been available.
The calculations cover all of Digia’s operations with the exception of Top
of Minds AB, which was acquired in late 2023.
Calculation scope as per the GHG protocol
Scope 1: direct emissions
Category
Digia’s
calculation Comments and reasoning
Heat, electricity, steam, water Not included No direct emissions from energy consumption or refrigerant leaks.
Cars owned or managed by the
company
Included Fuel consumption of leased cars is included (gasoline).
Scope 2: indirect emissions
Category
Digia’s
calculation Comments and reasoning
Electricity Included For all of the Digia Group’s locations, excluding the locations of new subsidiaries acquired in H2/2023.
Heating Included For all of the Digia Group’s locations, excluding the locations of new subsidiaries acquired in H2/2023.
Cooling Included District cooling (in Tampere).
Purchased steam Not included Steam is not used.
Water Not included Low water consumption (office work) and poor data availability.
Electric cars owned or managed by
the company
Not included Some leased vehicles are electric, but no data on their energy consumption was available for use in the calculations.
Scope 3: Other emissions in the value chain
Downstream emissions
Category
Digia’s
calculation Comments and reasoning
Purchased products and services (€) Included Emissions from general procurements by Digia Group companies have been included.
Capital goods Included Emissions from the Digia Group’s equipment purchases.
Other fuel and energy purchases Included Emissions from the transportation and distribution of purchased energy and consumed fuel.
Transportation and distribution Not included Goods transportation has been calculated on a cost basis as part of purchased products and services.
No distribution activity
.
Waste Included Waste from all of the Digia Group’s locations (excl. companies acquired in H2/2023).
Business travel Included Flights, rail travel and work-related use of road vehicles.
Commuting Included Employee commuting at all of the Digia Group’s locations (excl. companies acquired in H2/2023).
Alavirran päästöt
Category
Digia’s
calculation Comments and reasoning
All categories Not included Downstream emissions are not included in the calculation.
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
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Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
Taxonomy-alignment in 2023
Digia has assessed its taxonomy-eligible activities on the basis of
technical criteria. The analysis was carried out using a multidimensional
approach, by combining data from the supply chain with data provided
by others. Analysis was carried out by ensuring that the supplier met the
technical criteria and there was no significant harm done to other climate
targets (DNSH).
The fulfillment of the criteria for significant promotion of Activity 8.1
(“Data processing, hosting and related activities”) was evaluated based
on material generated by supplier management. As part of the “Climate
Neutral Data Centre Pact” commitment, which meets the criteria for
significant promotion, “The operation has implemented all relevant
procedures which have been designated as “the expected practices”
in the European Data Center Energy Efficiency Code”. In addition, data
centers ensured that the potential for heat-effect (GWP) of refrigerants
used in cooling systems is no greater than 675.
The fulfillment of the criteria for significant promotion of Activity 8.2
(“Data-driven solutions for GHG emissions reductions”) was assessed on a
project-by-project basis. The criteria for significant promotion were met if
the end result of the project was a solution for the customer that allowed
the greenhouse gas emissions to be reduced significantly at address and
there was no alternative solution or technology on the market.
The DNSH criteria shared for both activities were evaluated for adap-
tation to climate change by conducting a climate risk and vulnerability
assessment with a life cycle assumption of over 10 years. The risk and
vulnerability assessment included an assessment of the economic impact
of physical climate risks and an adaptation plan for significant risks. Risk
assessments were based on the latest version of IPCC AR 2022. Scenarios
were used for optimistic assessment, SSP1-2.6 and SSP5-8.5 for pessi-
mistic assessment. No significant risks were identified for either activity.
DNSH criteria for the transition to a circular economy were analysed by
ensuring that data centre equipment and their lifecycle management
processes meet the requirements of Directives 2009/125/EC, 2011/65/EU
and 2012/19/EU.
In Activity 8.1 (“Data processing, hosting and related activities”)
“Sustainable Use and Conservation of Water Resources and Marine
Resources” the DNSH criterion was verified by stating that the year and
location of the data center construction followed an environmental permit
procedure in which the effects on water resources have been assessed.
Digia meets the minimum safeguards for its entire operation. The
implementation of the minimum safeguards was assessed based on
the documentation and their practical application. The assessment
ensured compliance of the ethical guidelines with the OECD, UN and ILO
guidelines. The verification covered the code of conduct for suppliers,
code of conduct for own workforce, quality, environmental and information
security systems, risk management guidelines, cultural principles, salary
and reward handbook, and equality and compliance guidelines.
Due to the nature of its business operations, Digia estimates that
the size of its taxonomy-aligned operations may vary significantly from
year to year due to reasons such as variations in the demand for climate
change-related customer-specific solutions and changes in the supply
chain.
Turnover KPI
The denominator of the turnover KPI (the key performance indicator for
net sales) covers Digia’s total turnover, which is recognised in line with
IFRS 15 (Note 3.2 to the Financial Statements). The numerator of the
turnover KPI is the turnover from products or services related to taxono-
my-eligible or taxonomy-aligned economic activities, including intangible
assets, presented by taxonomy class. The table lists the turnover of
activities identified as falling in taxonomy Activities 8.1 and 8.2 based
on analyses. Turnover from Activity 8.1 (“Data processing, hosting and
related activities”) amounts to EUR 37,098 thousand, representing 19.31%
of total turnover. Turnover from Activity 8.2 (“Data-driven solutions for
GHG emissions reductions”) amounts to EUR 292 thousand, representing
0.15% of total turnover. These combined comprise the taxonomy-aligned
turnover, which totals EUR 37,390 thousand, or 19.46% of total turnover.
Reporting based on EU taxonomy
The European Green Deal is a European growth strategy aimed at
improving the health and wellbeing of all citizens, making Europe
climate-neutral by 2050, and protecting, conserving and enhancing
the EU’s natural capital and biodiversity. The Taxonomy Regulation (EU
2020/852) seeks to define standardised, science-based assessment
criteria for environmentally sustainable economic activities. Advances
in digitalisation, technology and energy efficiency will play a major role
in achieving this goal. The information and communication sector is
constantly growing – and so, too, is its share of greenhouse gas emissions.
At the same time, information and communications technology has the
potential to contribute to the mitigation of climate change and reduce
greenhouse gas emissions in other sectors, such as by providing solutions
to facilitate decision-making and thereby enable the reduction of green-
house gas emissions or other positive actions to mitigate climate change
and its impacts.
Taxonomy eligibility in 2023
Digia’s field of business is to build IT solutions and engage in related
projects, maintenance and consulting. Digia has identified taxonomy-eli-
gible activities based on technical descriptions and criteria for economic
activities. Digia’s climate change adaptation activities fall under taxonomy
Activity 8.2 (“Data-driven solutions for GHG emissions reductions”) and
Activity 8.1 (“Data processing, hosting and related activities”).
Digia reports revenue and expenses under climate change adaptation
activities 8.1 (“Data processing, hosting and related activities”) and 8.2
(“Data-driven solutions for GHG emissions reductions”).
Digia reassessed the principles of its taxonomy calculation based on
the more detailed taxonomy guidelines, on the basis of which Digia will
not report revenue or expenses as of 2023 to climate change adaptation
activities 8.2 (“Computer programming, consultancy and related activi-
ties”) and 8.1 (“Data processing, hosting and related activities”). Digia does
not report revenues or costs to those categories based on the European
Commission Notice C/2023/305.
Digia’s assessment did not identify any taxonomy-classified activities
related to the circular economy or sustainable use of water resources.
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
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Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
OpEx KPI
The denominator of the OpEx KPI (key performance indicator for opera-
tional expenses) includes direct non-capitalised expenses related to R&D,
renovation activities in buildings, short-term leases, maintenance and
repairs and other direct costs related to the daily maintenance of tangible
assets (Note 3.7 to the Financial Statements).
The numerator of the OpEx KPI is the proportion of net sales that are
taxonomy-eligible or taxonomy-aligned in relation to the OpEx KPI denom-
inator. These refer to OpEx in taxonomy category a) and Digia has not
identified any OpEx falling in categories b) and c). The table lists the OpEx
of activities identified as falling in taxonomy Activities 8.1 and 8.2 based
on analyses. OpEx in Activity 8.1 (“Data processing, hosting and related
activities”) amounts to EUR 26,623 thousand, representing 19.31% of
total OpEx. OpEx in Activity 8.2 (“Data-driven solutions for GHG emissions
reductions”) amounts to EUR 207 thousand, representing 0.15% of total
OpEx. These combined comprise the taxonomy-aligned OpEx, which is
EUR 26,830 thousand, or 19.46% of total OpEx. Total expenses were EUR
137,871 thousand.
CapEx KPI
The denominator of the CapEx KPI (key performance indicator for gross
capital expenditure) covers increases in tangible and intangible assets
during the fiscal year before depreciation, amortisation and revaluation
(Notes 7.1 and 7.2 to the Financial Statements). The denominator also
covers increases in right-of-use asset items in leases under IFRS 16 (Note
7.4 to the Financial Statements).
Taxonomy-aligned CapEx KPI on reporting year, MEUR 29
Share of intangible assets 0
Share of tangible non-use items 29
Share of leased assets 0
The numerator of the CapEx KPI is the proportion of CapEx included in the
denominator that is connected to taxonomy-eligible or taxonomy-aligned
economic activities. The numerator also includes the proportions of any
capital expenditure on centralised systems for the business functions in
relation to the direct expenses incurred by taxonomy-eligible or taxono-
my-aligned economic activities. In accordance with the taxonomy, these
constitute category a) capital expenditure, and Digia has not recognised
capital expenditure in other categories.
The taxonomy classification with respect to the numerator of the
CapEx KPI is shown in the adjacent table. The table lists the CapEx of
activities identified as falling in taxonomy climate change mitigation
Activities 8.1 and 8.2 based on analyses. CapEx in Activity 8.1 (“Data
processing, hosting and related activities”) amounts to EUR 28.8
thousand, representing 19.31% of total CapEx. CapEx in Activity 8.2
(“Data-driven solutions for GHG emissions reductions”) amounts to EUR
0.2 thousand, or 0.15% of total CapEx. These combined comprise the
taxonomy-aligned CapEx, which totals EUR 29 thousand, or 19.46% of
total CapEx. Total expenses were EUR 149 thousand.
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
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Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
Turnover KPI
Financial year 2023 Year 2023 Substantial Contribution Criteria
DNSH criteria (‘Does Not Significantly Harm’)
(h)
Economic Activities (1)
Code (a) (2)
Turnover (3)
Proportion of
Turnover, year 2023
(4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12 )
Water (13)
Pollution (14)
Circular Economy
(15)
Biodiversity (16)
Minimum Safeguards
(17)
Proportion of
Taxonomy aligned
(A.1.) or eligible
(A.2.) turnover, year
2022 (18)
Category enabling
activity (19)
Category
transitional activity
(20)
MEUR %
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c) Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Adaptation 8.1 Data processing, hosting and related activities CCM 8.1 37,098 19.31% Y N/EL N/EL N/EL N/EL N/EL N/EL Y Y N/EL Y N/EL Y 14.10% T
Adaptation 8.2 Data-driven solutions for GHG emissions
reductions
CCM
8.2 292 0.15% Y N/EL N/EL N/EL N/EL N/EL N/EL Y N/EL N/EL Y N/EL Y 0.10% M
Turnover of environmentally sustainable activities (Taxonomy-
aligned) (A.1) 37,390 19.46% 19.46% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 14.20%
Of which Enabling 292 0.15% 0.15% 0% 0% 0% 0% 0% N/EL Y N/EL N/EL Y N/EL Y 0.10% M
Of which Transitional 19.31% 19.31% N/EL Y Y N/EL Y N/EL Y 14.10% T
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (g)
EL; N/EL
(f)
EL; N/EL
(f)
EL; N/EL
(f)
EL; N/EL
(f)
EL; N/EL
(f)
EL; N/EL
(f)
Turnover of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2) 0 0.00% 0% 0% 0% 0% 0% 0% 0%*
A. Turnover of Taxonomy eligible activities (A.1+A.2) 19.46% 19.46% 0% 0% 0% 0% 0% 14.2%*
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities 154,697 80.54%
TOTAL
100%
* Adjusted figure to correspond to the 2023 revised calculation model
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective
N – No
, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective
N/EL – not eligible, Taxonomy non-eligible activity for the relevant environmental objective
Proportion of turnover/Total turnover
Taxonomy-aligned per objective Taxonomy-eligible per objective
CCM 19.46% 19.46%
CCA 0.00% 0.00%
WTR 0.00% 0.00%
CE 0.00% 0.00%
PPC 0.00% 0.00%
BIO 0.00% 0.00%
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
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Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
OpEx KPI
Financial year 2023 Year 2023 Substantial Contribution Criteria
DNSH criteria (‘Does Not Significantly Harm’)
(h)
Economic Activities (1)
Code (a) (2)
OpEx (3)
Proportion of OpEx,
year 2023 (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12 )
Water (13)
Pollution (14)
Circular Economy
(15)
Biodiversity (16)
Minimum Safeguards
(17)
Proportion of
Taxonomy aligned
(A.1.) or eligible
(A.2.) OpEx, year
2022 (18)
Category enabling
activity (19)
Category
transitional activity
(20)
MEUR %
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c) Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Adaptation 8.1 Data processing, hosting and
related activities CCM 8.1 26,623 19.31% Y N/EL N/EL N/EL N/EL N/EL N/EL Y Y N/EL Y N/EL Y 13.1% T
Adaptation 8.2 Data-driven solutions for GHG emissions
reductions
CCM
8.2 207 0.15% Y N/EL N/EL N/EL N/EL N/EL N/EL Y N/EL N/EL Y N/EL Y 0.1% M
OpEx of environmentally sustainable activities (Taxonomy-
aligned) (A.1) 26,830 19.46% 19% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 13.3%
Of which Enabling 207 0.15% 0% 0% 0% 0% 0% 0% N/EL Y N/EL N/EL Y N/EL Y 0.1% M
Of which Transitional 19.31% 19% N/EL Y Y N/EL Y N/EL Y 13.1% T
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (g)
EL; N/EL
(f)
EL; N/EL
(f)
EL; N/EL
(f)
EL; N/EL
(f)
EL; N/EL
(f)
EL; N/EL
(f)
OpEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2) 0 0% 0% 0% 0% 0% 0% 0% 0%*
A. OpEx of Taxonomy eligible activities (A.1+A.2) 19% 0% 0% 0% 0% 0% 0% 13%*
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities 111,041 80.54%
TOTAL
100%
Proportion of turnover/Total turnover
Taxonomy-aligned per objective Taxonomy-eligible per objective
CCM 19.46% 19.46%
CCA 0.00% 0.00%
WTR 0.00% 0.00%
CE 0.00% 0.00%
PPC 0.00% 0.00%
BIO 0.00% 0.00%
* Adjusted figure to correspond to the 2023 revised calculation model
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective
N – No
, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective
N/EL – not eligible, Taxonomy non-eligible activity for the relevant environmental objective
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
30
Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
CapEx KPI
Financial year 2023 Year 2023 Substantial Contribution Criteria
DNSH criteria (‘Does Not Significantly Harm’)
(h)
Economic Activities (1)
Code (a) (2)
CapEx (3)
Proportion of CapEx,
year 2023 (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular Economy
(15)
Biodiversity (16)
Minimum Safeguards
(17)
Proportion of
Taxonomy aligned
(A.1.) or eligible
(A.2.) CapEx, year
2022 (18)
Category enabling
activity (19)
Category
transitional activity
(20)
MEUR %
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c) Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Adaptation 8.1 Data processing, hosting and
related activities CCM 8.1 28.8 19.31% Y N/EL N/EL N/EL N/EL N/EL N/EL Y Y N/EL Y N/EL Y 13.1% T
Adaptation 8.2 Data-driven solutions for GHG emissions
reductions
CCM
8.2 0.2 0.15% Y N/EL N/EL N/EL N/EL N/EL N/EL Y N/EL N/EL Y N/EL Y 0.1% M
CapEx of environmentally sustainable activities (Taxonomy-
aligned) (A.1) 29 19.46% 19% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 13.3%
Of which Enabling 0.2 0.15% 0% 0% 0% 0% 0% 0% N/EL Y N/EL N/EL Y N/EL Y 0.1% M
Of which Transitional 19.31% 19% N/EL Y Y N/EL Y N/EL Y 13.1% T
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (g)
EL; N/EL
(f)
EL; N/EL
(f)
EL; N/EL
(f)
EL; N/EL
(f)
EL; N/EL
(f)
EL; N/EL
(f)
CapEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2) 0 0% 0% 0% 0% 0% 0% 0% 0%*
A. CapEx of Taxonomy eligible activities (A.1+A.2) 19.46% 0% 0% 0% 0% 0% 0% 13%*
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities 120 80.54%
TOTAL
100%
* Adjusted figure to correspond to the 2023 revised calculation model
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective
N – No
, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective
N/EL – not eligible, Taxonomy non-eligible activity for the relevant environmental objective
K – Kyllä, luokitusjärjestelmäkelpoinen ja luokitusjärjestelmän mukainen toiminta kyseisen ympäristötavoit teen osalta
E – Ei, luokitusjärjestelmäkelpoinen mut tei luokitusjärjestelmän mukainen toiminta kyseisen ympäristötavoit teen osalta
E/S – Ei sovelleta, ei-luokitusjärjestelmäkelpoinen toiminta kyseisen tavoit teen osalta
Proportion of turnover/Total turnover
Taxonomy-aligned per objective Taxonomy-eligible per objective
CCM 19.46% 19.46%
CCA 0.00% 0.00%
WTR 0.00% 0.00%
CE 0.00% 0.00%
PPC 0.00% 0.00%
BIO 0.00% 0.00%
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Board of Directors’ Report Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statements
1 Main statements in the consolidated financial
statements (IFRS)................................................
1.1 Consolidated Income Statement ...............................
1.2 Consolidated statement of comprehensive income ............
1.3 Consolidated balance sheet ...................................
1.4 Consolidated cash flow statement ............................
1.5 Changes in shareholders’ equity ...............................
2. General information ..........................................
2.1 Basic information on the Group ................................
2.2 Approval by the Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.3 Accounting policies ...........................................
2.4 New and amended standards..................................
3 Financial development ........................................
3.1 Reportable segments ..........................................
3.2 Net sales .....................................................
3.3 Provisions .....................................................
3.4 Other operating income .......................................
3.5 Acquired business operations .................................
3.6 Depreciation, amortisation and impairment ....................
3.7 Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.8 Income taxes..................................................
3.9 Deferred tax assets and liabilities..............................
3.10 Earnings per share............................................
4 Human resources ..............................................
4.1 Personnel expenses ...........................................
4.2 Pension liabilities..............................................
4.3 Personnel remuneration .......................................
4.4 Share-based payments........................................
5 Working capital ................................................
5.1 Change in working capital ......................................
5.2 Accounts payable and other liabilities .........................
6 Capital structure...............................................
6.1 Capital management and net ..................................
6.2 Receivables and financial assets ..............................
6.3 Financial liabilities .............................................
6.4 Lease liabilities ...............................................
6.5 Financial income and expenses ...............................
6.6 Financial risks .................................................
6.7 Shareholders’ equity ..........................................
7. Other items .....................................................
7.1 Goodwill........................................................
7.2 Property, plant and equipment .................................
7.3 Intangible assets ..............................................
7.4 Right-of-use assets ...........................................
7.5 Notes to the cash flow statement .............................
7.6 Related party transactions.....................................
7.7 Events after the balance sheet date............................
8 Formulas for the indicators and reconciliations .........
8.1 Formulas for the indicators .....................................
8.2 Reconciliation of alternative performance measures ...........
9 Parent company’s financial statements (FAS) ...........
9.1 Parent company’s income statement ..........................
9.2 Parent company balance sheet ...............................
9.3 Parent company’s cash flow statement ........................
9.4 Basic information on the parent company and
accounting policies ...............................................
9.5 Board’s dividend proposal .....................................
9.6 Notes to the parent company’s financial statements...........
Signatures to the Board’s Report and
Financial Statements............................................
Auditor’s Note.....................................................
Auditor’s report
Independent Auditor’s Report on Digia Oyj’s
ESEF-Consolidated Financial Statements
Tilinpäätös
Financial statements
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Notes to the consolidated financial statements Parent company’s financial statementsConsolidated financial statementsBoard of Directors’ Report
1.1 Consolidated Income Statement
1 Main statements in the consolidated financial statements (IFRS)
1.2 Consolidated statement of comprehensive income
EUR 1,000 Note 1 Jan–31 Dec 2023 1 Jan–31 Dec 2022
Net sales 3.2 192,087 170,754
Other operating income 3.4 145 248
Materials and services –33,270 –28,512
Depreciation, amortisation and impairment 3.6 –7,256 –7,094
Personnel expenses 4.1, 4.2, 4.4, 7.6 –115,603 –105,827
Other operating expenses 3.7 –22,267 –16,843
–178,251 –158,028
Operating profit 13,835 12,727
Financial income 6.5 53 233
Financial expenses 6.5 –1,459 –910
–1,405 –677
Profit before taxes 12,430 12,050
Income taxes 3.8 –2,558 –2,479
Net profit
Earnings per share, EUR, undiluted 3.10 0.37 0.36
Earnings per share, EUR
(diluted) 0.37 0.36
Distribution of income for the period:
Parent company shareholders 9,868 9,533
Non-controlling interests 4 39
1 Jan–31 Dec 2023 1 Jan–31 Dec 2022
Net profit 9,872 9,571
Other comprehensive income items:
Items that may later be reclassified as profit or loss:
Exchange differences on translation of foreign operations 728 –1,721
Total comprehensive income
Distribution of total comprehensive income:
Parent company shareholders 10,596 7,812
Non-controlling interests 4 39
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Notes to the consolidated financial statements Parent company’s financial statementsConsolidated financial statementsBoard of Directors’ Report
1.3 Consolidated balance sheet
EUR 1,000 Note 31 Dec 2023 31 Dec 2022
ASSETS
Non-current assets
Goodwill 7.1 93,295 85,829
Intangible assets 7.3 13,338 14,389
Tangible assets 7.2 481 570
Right-of-use assets 7.4 4,634 5,957
Financial assets recognised at fair value through profit or loss 6.2 482 483
Non-current receivables 6.2 593 372
Deferred tax assets 3.9 290 332
Current assets
Accounts receivable and other receivables 5.2, 6.2 42,639 37,846
Cash and cash equivalents 6.2 12,404 14,338
Total assets
EUR 1,000 Note 31 Dec 2023 31 Dec 2022
SHAREHOLDERS’ EQUITY AND LIABILITIES
Equity at tributable to parent-company shareholders
Share capital 2,088 2,088
Other reserves 5,204 5,204
Unrestricted shareholders’ equity reserve 42,081 42,081
Translation difference –1,533 –2,261
Retained earnings 17,713 14,391
Net profit 9,868 9,533
Equity at tributable to non-controlling interests 0 53
Total shareholders’ equity
6.7 75,420 71,087
Non-current liabilities
Deferred tax liabilities 3.9 2,534 2,553
Non-current advances received 15 107
Financial liabilities 6.3 20,572 17,270
Lease liabilities 1,913 3,032
Other non-current liabilities 3.5 3,480 5,232
Current liabilities
Accounts payable and other liabilities 5.2 27,989 27,764
Accruals and deferred income 21,543 21,427
Lease liabilities 6.4 3,117 3,450
Other financial liabilities 6.3 11,572 8,194
Total liabilities 92,736 89,028
Total shareholders' equity and liabilities
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Notes to the consolidated financial statements Parent company’s financial statementsConsolidated financial statementsBoard of Directors’ Report
1.4 Consolidated cash flow statement
EUR 1,000 Note 1 Jan–31 Dec 2023 1 Jan–31 Dec 2022
Cash flow from operations:
Net profit 9,868 9,571
Adjustments to net profit 7.5 11,744 9,194
Change in working capital 5.1 –3,379 –1,547
Change in other receivables and liabilities 1,467 2,567
Interest paid –1,070 –308
Interest income 263 16
Taxes paid –1,920 –5,242
Cash flow from operations
Cash flow from investments:
Purchases of tangible and intangible assets –56 –1,177
Acquisition of subsidiaries, net of cash and cash equivalents at the time of
acquisition 3.5 –7,251 –10,646
Additional purchase prices of subsidiaries –9,059 –
Cash flow from investments
–16,366 –11,823
EUR 1,000 Note 1 Jan–31 Dec 2023 1 Jan–31 Dec 2022
Cash flow from financing:
Repayment of lease liabilities 6.3 –3,478 – 3,810
Repayment of current loans 6.3 –8,319 –5,000
Withdrawals of non-current loans 6.3 15,000 9,000
Acquisition of treasury shares –1,237 –1,963
Sale of treasury shares - 163
Dividends paid –4,515 –4,478
Cash flow from financing
–2,549 –6,087
Change in cash and cash equivalents
–1,942 –3,659
Cash and cash equivalents at beginning of period 14,338 18,148
Change in cash and cash equivalents –1,942 –3,659
Effects of changes in foreign exchange rates 9 –151
Cash and cash equivalents at end of period
6.2 12,404 14,338
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Notes to the consolidated financial statements Parent company’s financial statementsConsolidated financial statementsBoard of Directors’ Report
1.5 Changes in shareholders’ equity
EUR 1,000 Notes Share capital
Unrestricted shareholders’
equity reserve Other reserves Translation difference Retained earnings Non-controlling interests Total shareholders’ equity
Shareholders’ equity, 1 Jan 2022 2,088 42,081 5,204 –541 19,226 14 68,072
Comprehensive income
Net profit (+) / loss (–) 1.1 9,533 39 9,571
Other comprehensive income items 1.2 – – – –1,721 – - –1,721
Total comprehensive income
Transactions with shareholders
Share-based transactions set tled
in equity 4.4 – – – – 63 - 63
Dividends – – – – –4,478 - –4,478
Acquisition of treasury shares – – – – –420 - –420
Transactions with shareholders, total
–4,835 –4,835
Shareholders’ equity, 31 Dec 2022
EUR 1,000 Notes Share capital
Unrestricted shareholders’
equity reserve Other reserves Translation difference Retained earnings Non-controlling interests Total shareholders’ equity
Shareholders’ equity, 1 Jan 2023 2,088 42,081 5,204 –2,261 23,923 53 71,087
Comprehensive income
Net profit (+) / loss (–) 1.1 9,868 4 9,872
Other comprehensive income items 1.2 – – – 728 - 728
Total comprehensive income
Transactions with shareholders
Share-based transactions set tled
in equity 4.4 – – – – –217 - –217
Acquisition of minority shares - - - - –242 –56 –298
Dividends – – – – –4,515 –4,515
Acquisition of treasury shares – – – – –1,237 - –1,237
Transactions with shareholders, total
–6,210 –56 –6,267
Shareholders’ equity, 31 Dec 2023
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Notes to the consolidated financial statements Parent company’s financial statementsConsolidated financial statementsBoard of Directors’ Report
2. General information
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Parent company’s financial statementsBoard of Directors’ Report Notes to the consolidated financial statementsConsolidated financial statements
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Parent company’s financial statementsBoard of Directors’ Report Notes to the consolidated financial statementsConsolidated financial statements
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Parent company’s financial statementsBoard of Directors’ Report Notes to the consolidated financial statementsConsolidated financial statements
3 Financial development
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Parent company’s financial statementsBoard of Directors’ Report Notes to the consolidated financial statementsConsolidated financial statements
recognised as an expense. Additional information is provided in Note 3.3
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Parent company’s financial statementsBoard of Directors’ Report Notes to the consolidated financial statementsConsolidated financial statements
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Parent company’s financial statementsBoard of Directors’ Report Notes to the consolidated financial statementsConsolidated financial statements
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Parent company’s financial statementsBoard of Directors’ Report Notes to the consolidated financial statementsConsolidated financial statements
5 Working capital
Digia ensures optimal working capital through the turnover of accounts
receivable and payable. Additional information on accounts receivable is
provided in Note 6.2.
5.1 Change in working capital
EUR 1,000 2023 2022
Change in accounts receivable –4,957 –1,700
Change in accounts payable 1,579 –1,302
Total
–3,379 –3,003
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Parent company’s financial statementsBoard of Directors’ Report Notes to the consolidated financial statementsConsolidated financial statements
6 Capital structure
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Parent company’s financial statementsBoard of Directors’ Report Notes to the consolidated financial statementsConsolidated financial statements
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Parent company’s financial statementsBoard of Directors’ Report Notes to the consolidated financial statementsConsolidated financial statements
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Parent company’s financial statementsBoard of Directors’ Report Notes to the consolidated financial statementsConsolidated financial statements
Changes in financial liabilities with an effect on cash flow and no effect on cash flow in 2023
Changes with
an effect on
cash flow
Changes with
no effect on
cash flow
EUR 1,000 1 Jan
Changes in
leases
Other
changes 31 Dec
Non-current interest-bearing financial
liabilities including a current component
Loans from financial institutions 25,464 6,681 – 32,145
Lease liabilities 6,472 –3,578 2,136 – 5,031
Total
31,936 3,103 2,136 – 37,175
Current interest-bearing liabilities 133 271 – – 404
Changes in financial liabilities with an effect on cash flow and no effect on cash flow in 2022
Changes with
an effect on
cash flow
Changes with
no effect on
cash flow
EUR 1,000 1 Jan
Changes in
leases
Other
changes 31 Dec
Non-current interest-bearing financial
liabilities including a current component
Loans from financial institutions 21,000 4,000 – 464 25,464
Lease liabilities 7,785 –3,810 2,497 6,472
Total
28,785 190 2,497 31,936
Current interest-bearing liabilities 95 38 – – 133
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Parent company’s financial statementsBoard of Directors’ Report Notes to the consolidated financial statementsConsolidated financial statements
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Parent company’s financial statementsBoard of Directors’ Report Notes to the consolidated financial statementsConsolidated financial statements
7. Other items
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IFRS performance measures:
Earnings per share (EPS), EUR:
Profit for the period at tributable to parent company shareholders
Weighted average number of shares during the period
Earnings per share (EPS), EUR, diluted:
Profit for the period at tributable to parent company shareholders
Diluted weighted average number of shares during the period
non-IFRS performance measures:
Net sales growth, %:
Net sales for the period x 100
Net sales for the comparison period
Operating profit (EBIT):
Profit for the period + income taxes + financial income and expenses
Operating profit (EBITA):
Operating profit + purchase price allocation amortisation and costs
Operating profit (EBITA) margin, %:
(Operating profit + purchase price allocation amortisation and costs) × 100
Net sales
Return on investment (ROI),%:
(Profit or loss before taxes + interest and other financing costs) × 100
Balance sheet total – non-interest bearing financial liabilities (average)
Return on equity (ROE),%:
(Profit or loss before taxes – taxes) × 100
Shareholders’ equity (average)
Equity ratio, %:
(Shareholders’ equity + minority interest) × 100
Balance sheet total – advances received
Dividend/share, EUR:
Total dividend
Number of shares at the end of the period, adjusted for share issues
Dividend payout ratio, %:
Dividend per share
Earnings per share
Net gearing, %:
(Interest-bearing liabilities – cash and cash equivalents) × 100
Shareholders’ equity
Effective dividend yield, %:
Dividend per share × 100
Last trading price for the period, adjusted for share issues
Price/earnings (P/E):
Last trading price for the period, adjusted for share issues
Earnings per share
8 Formulas for the indicators and reconciliations
8.1 Formulas for the indicators
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Parent company’s financial statementsBoard of Directors’ Report Notes to the consolidated financial statementsConsolidated financial statements
8.2 Reconciliation of alternative
performance measures
As alternative performance measures, the Group reports operating profit
plus purchase price allocation amortisation (EBITA) and costs, operating
profit (EBIT), return on equity, return on investment, net gearing and
equity ratio, which are not defined in IFRS. The company presents the
alternative performance measures to describe the financial situation
and development of business operations, as it considers this information
necessary for investors.
Operating profit (EBITA) 31 Dec 2023 31 Dec 2022
Operating profit 13,835 12,727
Purchase price allocation amortisation and costs 2,891 3,006
Operating profit (EBITA)
16,727 15,733
Return on equity, % 31 Dec 2023 31 Dec 2022
Profit before taxes 12,430 12,050
Taxes –2,558 –2,479
Profit after taxes 9,872 9,571
Shareholders’ equity (average for the year) 73,254 69,580
Return on equity, %
13.5% 13.8%
Return on investment, % 31 Dec 2023 31 Dec 2022
Profit before taxes 12,430 12,050
Financial expenses –1,458 –910
Profit before taxes + financial expenses 13,888 12,960
Balance sheet total (average for the period) 164,136 151,578
Non-interest-bearing liabilities (average for the
year) 56,322 51,003
Balance sheet total – non-interest bearing
liabilities 107,814 100,575
Return on investment, %
12.9% 12.9%
Net gearing, % 31 Dec 2023 31 Dec 2022
Interest-bearing liabilities 37,175 31,946
Cash and cash equivalents 12,404 14,338
Shareholders’ equity 75,420 71,087
Net gearing, %
32.8% 24.8%
Equity ratio, % 31 Dec 2023 31 Dec 2022
Shareholders' equity 75,420 71,087
Balance sheet total 168,157 160,116
Advance payments received 6,499 5,108
Balance sheet total – advances received 161,658 155,008
Equity ratio, %
46.7% 45.9%
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Parent company’s financial statementsBoard of Directors’ Report Notes to the consolidated financial statementsConsolidated financial statements
9.1 Parent company’s income statement
EUR Note 1 Jan–31 Dec 2023 1 Jan–31 Dec 2022
Net sales 1 18,955,102.83 16,275,998.26
Other operating income 2 56,068.00 77,290.00
Materials and services –1,318,907.57 –1,287,601.08
Personnel expenses 3 –5,542,196.79 –4,548,223.84
Depreciation, amortisation and impairment 4 –762,873.68 –772,115.42
Other operating expenses 5 –9,951,325.39 –9,206,650.53
–17,519,235.43 –15,737,300.87
Operating profit
1,435,867.40 538,697.39
Financial income and expenses 6 –3,730,086.14 –1,127,017.02
Profit before appropriations and taxes –2,294,218.74 –588,319.63
Accumulated appropriations
Group contribution 12,600,000.00 10,400,000.00
Depreciation differences –219,764.90 –359,233.80
Profit before taxes 10,086,016.36 9,452,446.57
Income taxes
7 –2,030,008.88 –1,882,836.48
Net profit
8,056,007.48 7,569,610.09
9 Parent company’s financial statements (FAS)
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Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statementsBoard of Directors’ Report
EUR Note 31 Dec 2023 31 Dec 2022
ASSETS
FIXED ASSETS
Intangible assets 8 3,330.16 57,489.85
Intangible rights 2,889,350.82 3,446,808.82
Other long-term expenses 0.00 0.00
2,892,680.98 3,504,298.67
Tangible assets 9
Land and water areas 16,818.79 16,818.79
Buildings and structures 11,538.55 18,132.01
Machinery and equipment 232,851.01 374,043.37
Other fixed assets – 1,210.95
261,208.35 410,205.12
Investments 10
Shares in Group companies 194,130,695.55 180,427,733.37
Other shares and holdings 480,004.54 480,004.54
194,610,700.09 180,907,737.91
Total fixed assets 197,764,589.42 184,822,241.70
CURRENT ASSETS
Non-current receivables
Prepayments and accrued income 78,641.87 217,516.93
Current receivables 11
Receivables from Group companies 11,206,864.92 11,792,152.78
Other receivables 305,654.91 339,705.91
Prepayments and accrued income 2,139,693.08 1,942,473.29
13,664,916.71 14,074,331.98
Cash and cash equivalents 2,759,576.31 4,457,051.25
Total current assets 16,424,493.02 18,748,900.16
Total assets 214,267,724.31 203,571,141.86
EUR Note 31 Dec 2023 31 Dec 2022
SHAREHOLDERS’ EQUITY AND LIABILITIES
SHAREHOLDERS’ EQUITY
Equity at tributable to parent-company shareholders 12
Share capital 2,087,564.50 2,087,564.50
Unrestricted shareholders’ equity reserve 42,540,499.12 42,540,499.12
Retained earnings 16,202,941.42 14,385,253.40
Net profit 8,056,007.48 7,569,610.09
Total shareholders’ equity 68,887,013.02 66,582,927.11
ACCUMULATED APPROPRIATIONS
Depreciation difference 578,998.70 359,233.80
LIABILITIES
Non-current liabilities
Loans from financial institutions 13 20,500,000.00 17,000,000.00
Other non-current liabilities 4,371,720.25 5,730,000.00
24,871,720.25 22,730,000.00
Current liabilities
Accounts payable 316,907.16 232,282.15
Current interest-bearing liabilities 14 11,500,000.00 8,000,000.00
Liabilities to Group companies 102,375,690.23 95,623,033.20
Other liabilities 4,443,692.45 8,838,123.93
Accruals and deferred income 1,293,703.49 1,202,541.67
Taxes based on the net result for the year – 3,000.00
119,929,992.34 113,898,980.95
Total liabilities 144,801,712.59 136,628,980.95
Total shareholders’ equity and liabilities 214,267,724.31 203,571,141.86
9.2 Parent company balance sheet
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Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statementsBoard of Directors’ Report
9.3 Parent company’s cash flow statement
EUR 1 Jan–31 Dec 2023 1 Jan–31 Dec 2022
Cash flow from operations:
Net profit 8,056,007.48 7,569,610.09
Adjustments to net profit –5,867,511.40 –6,295,077.28
Change in working capital 8,155,720.58 12,082,371.99
Interest paid –4,203,860.31 –295,317.60
Interest income 174,641.65 1,237.03
Taxes paid –1,905,837.05 –3,197,137.93
Cash flow from operations
4,409,160.95 9,865,686.30
Cash flow from investments:
Purchases of tangible and intangible assets 7,985.78 –2,418,788.01
Acquisition of subsidiary, net of cash acquired –19,342,700.10 –13,700,023.96
Cash flow from investments
–19,334,714.32 –16,118,811.97
Cash flow from financing:
Acquisition of treasury shares –1,237,419.08 –1,962,752.48
Sale of treasury shares – 162,597.84
Repayment of current loans –8,000,000.00 –5,000,000.00
Withdrawals of current loans – 1,000,000.00
Withdrawals of non-current loans 15,000,000.00 8,000,000.00
Group financing items * 180,000.00 2,725,483.63
Group contribution 11,800,000.00 2,500,000.00
Dividends paid 12 –4,514,502.49 –4,477,685.76
Cash flow from financing
13,228,078.43 2,947,643.23
Change in cash and cash equivalents
–1,697,474.94 –3,305,482.44
Cash and cash equivalents at beginning of period 4,457,051.25 7,762,533.69
Change in cash and cash equivalents –1,697,474.94 –3,305,482.44
Cash and cash equivalents at end of period
2,759,576.31 4,457,051.25
* Group financing items comprise changes in loans between the parent company and its subsidiaries.
9.4 Basic information on the parent
company and accounting policies
Basic information on the company
Digia Plc is the parent company of the Digia Group. It is domiciled in
Helsinki and its registered office is at Atomitie 2, 00370 Helsinki. Digia Plc’s
active subsidiaries are Digia Finland Ltd and its subsidiaries, Productivity
Leap Oy, Digia Sweden AB, Climber International AB and its subsidiaries,
and Top of Minds AB and its subsidiaries.
Accounting policies
The parent company’s financial statements have been prepared in
accordance with Finnish Accounting Standards (FAS). The financial
statements are based on original acquisition costs. Book values based on
original costs have been reduced to correspond to fair value as necessary.
Since 1 June 2005, the parent company has operated as the Group’s
administrative company and charged the Group companies for services
rendered.
Pension schemes
The Group’s pension schemes are arranged through a pension insurance
company. Pension premiums and expenses allocated to the financial
period are based on confirmations received from the insurance company.
Pension expenses are recognised as expenses for the year in which they
arise.
Leasing payments
Leasing payments are recognised as annual expenses.
Share-based payments
Digia has a share-based incentive scheme where payments are made
either in equity instruments or in cash. The company complies with
Statement 1998, 15 January 2020 of the Accounting Board (KILA) in
the treatment of benefits granted in such schemes. According to the
statement, the terms and conditions of a share-based incentive scheme
are irrevocably fulfilled only at the end of the incentive period. Therefore,
the service commitment required of an employee under the share-based
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
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Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statementsBoard of Directors’ Report
incentive scheme is indivisible by nature – the performance is to be
considered to have been rendered on the one hand and received on the
other by the company at the end of the incentive period, at which point
the employee shall have an irrevocable right to the shares specified in the
scheme.
Fixed assets, depreciation and amortisation
Fixed assets are recognised in the balance sheet at immediate cost less
planned depreciation and amortisation.
The economic lives underlying planned depreciation and amortisation are
as follows:
Intangible assets
Intangible rights 3–5 years
Other long-term expenses 3–5 years
Tangible assets
Buildings and structures 25 years
Machinery and equipment 3–8 years
Purchases of fixed assets with an economic life of less than three years
are recognised as annual expenses.
9.5 Board’s dividend proposal
According to the balance sheet dated 31 December 2023, Digia Plc’s
distributable shareholders’ equity was EUR 66,799,448.52, of which EUR
8,056,007.48 was profit for the fiscal year. At the Annual General Meeting,
the Board of Directors will propose that a dividend of EUR 0.17 per share be
paid according to the confirmed balance sheet for the fiscal year ending
31 December 2023. Shareholders listed in the shareholders’ register
maintained by Euroclear Finland Oy on the dividend reconciliation date, 22
March 2024, will be eligible for the payment of dividend. Dividends will be
paid on 2 April 2024.
5. Auditors’ fees
EUR 2023 2022
Audit, EY 191,510.00 91,630.50
Tax counselling 32,763.00 –
Other statutory duties 4,100.00 –
Other services 92,038.25 10,640.00
Total
320,411.25 102,270.50
6. Financial income and expenses
Financial income
EUR 2023 2022
Interest and financial income from Group
companies 12,087.43 2,297.34
Interest and financial income from others 82,805.36 152,952.38
Total
94,892.79 155,249.72
Financial expenses
EUR 2023 2022
Interest expenses to Group companies 2,549,566.96 854,178.48
Interest expenses to other companies 1,181,453.75 351,250.98
Loan administration fees 43,288.68 38,175.00
Other financial expenses 50,668.66 38,662.86
Exchange rate losses 0.88 –
Total
3,824,978.93 1,282,266.74
7. Income taxes
EUR 2023 2022
Income taxes on operations –2,010,319.56 –1,882,836.48
Income taxes for previous periods –19,689.32 –
Total
–2,030,008.88
–1,882,836.48
Deferred tax assets arising from accrual differences and from temporary
differences between book values and taxation values are unrecorded in
the statement of financial position, in accordance with the principle of
prudence. Deferred tax assets totalled EUR 146 thousand at the end of the
fiscal year.
9.6 Notes to the parent company’s
financial statements
1. Net sales
Net sales by segment
EUR 2023 2022
Projects – 760.00
Group administration services 18,955,102.83 16,275,238.26
Total
18,955,102.83 16,275,988.26
2. Other operating income
EUR 2023 2022
Rental income 45,823.00 41,010.00
Other operating income 10,245.00 36,280.00
Total
56,068.00 77,290.00
3. Information on personnel and governing bodies
EUR 2023 2022
Board emoluments and remuneration and CEO’s
compensation 1,334,099.40 707,131.80
Other salaries and remunerations 3,499,856.55 3,151,886.46
Pension insurance contributions 606,013.38 603,562.19
Other personnel expenses 102,227.46 85,643.39
Total
5,542,196.79 4,548,223.84
Number of personnel, 31 Dec 2023 2022
Management and administration 47 46
Total
47 46
4. Depreciation, amortisation and impairment
EUR 2023 2022
Planned depreciation and amortisation
Property, plant, and equipment, and intangible
assets 762,873.68 772,115.42
Total
762,873.68 772,115.42
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Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statementsBoard of Directors’ Report
8. Intangible assets
EUR Intangible rights
Other long-term
expenses Total 2023 Total 2022
Acquisition cost, 1 Jan 9,237,115.98 1,530,432.31 10,767,548.29 9,748,009.23
Increases – – – 1,019,538.06
Decreases – – – –
Transfers between items – – –
Acquisition cost, 31 Dec
9,237,115.98 1,530,432.31 10,767,548.29 10,767,548.29
Accumulated depreciation and
amortisation, 1 Jan –5,790,307.16 –1,472,942.46 –7,263,249.62 –6,694,093.77
Depreciation –557,458.00 –54,159.69 –611,617.69 –569,155.85
Accumulated depreciation and
amortisation, 31 Dec
–6,347,765.16 –1,527,102.15 –7,874,867.31 –7,263,249.62
Book value, 1 Jan 3,446,808.82 57,489.85 3,504,298.67 3,053,915.46
Book value, 31 Dec 2,889,350.82 3,330.16 2,892,680.98 3,504,298.67
9. Property, plant and equipment
EUR
Land and water
areas
Buildings and
structures
Machinery and
equipment Total 2023 Total 2022
Acquisition cost, 1 Jan 16,818.79 162,905.90 3,726,741.71 3,906,466.40 3,703,335.26
Increases – – 2,259.22 2,259.22 203,131.14
Acquisition cost, 31 Dec
16,818.79 162,905.90 3,729,000.93 3,908,725.62 3,906,466.4
Accumulated depreciation and
amortisation, 1 Jan – –144,773.89 –3,351,487.39 –3,496,261.28 –3,293,301.71
Depreciation – –6,593.46 –144,662.53 –151,255.99 –202,959.57
Accumulated depreciation and
amortisation, 31 Dec
– –151,367.35 –3,496,149.92 – 3,647,517.27 3,496,261.28
Book value, 1 Jan 16,818.79 18,132.01 375,254.32 410,205.12 410,033.55
Book value, 31 Dec 16,818.79 11,538.55 232,851.01 261,208.35 410,205.12
10. Investments
EUR
Investments in
subsidiary shares
Other shares and
holdings Total 2023 Total 2022
Acquisition cost, 1 Jan 180,456,689.37 606,292.32 181,062,981.69 159,010,301.51
Increases 14,598,704.35 – 14,598,704.35 22,052,680.18
Decreases –895,742.17 – –895,742.17 –
Acquisition cost, 31 Dec
194,159,651.55 606,292.32 194,765,943.87 181,062,981.69
Accumulated amortisation, 1 Jan –28,956.00 –126,287.78 –155,243.78 –155,243.78
Impairment – – – –
Accumulated amortisation, 31 Dec
–28,956.00 –126,287.78 –155,243.78 –155,243.78
Book value, 1 Jan 180,427,733.37 480,004.54 180,907,737.91 158,855,057.73
Book value, 31 Dec 194,130,695.55 480,004.54 194,610,700.09 180,907,737.91
Itemisation of subsidiaries and other shares and holdings
Group companies Domicile Domestic segment Share of ownership Share of votes
Climber International AB Stockholm Sweden 100% 100%
Digia Finland Ltd Helsinki Finland 100% 100%
Digia Sweden Ab Stockholm Sweden 100% 100%
Productivity Leap Oy Joensuu Finland 100% 100%
Top of Minds AB Stockholm Sweden 100% 100%
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Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statementsBoard of Directors’ Report
11. Current receivables
EUR 2023 2022
Receivables from Group companies
Accounts receivable 267,071.08 1,542,855.44
Loan receivables 167,000.00 347,000.00
Prepayments and accrued income 10,772,793.84 9,902,297.34
Accounts receivable 12,703.80 –
Other receivables 305,654.91 339,705.91
Prepayments and accrued income 2,139,693.08 1,942,473.29
Total
13,664,916.71 14,074,331.98
12. Shareholders’ equity
EUR 2023 2022
Share capital, 1 Jan 2,087,564.50 2,087,564.50
Share capital, 31 Dec 2,087,564.50 2,087,564.50
Total restricted shareholders’ equity 2,087,564.50 2,087,564.50
Unrestricted shareholders’ equity reserve, 1 Jan 42,540,499.12 42,540,499.12
Unrestricted shareholders’ equity reserve,
31 Dec 42,540,499.12 42,540,499.12
Accrued earnings, 1 Jan 21,954,863.49 19,283,048.00
Changes during the fiscal year
Dividends –4,514,502.49 –4,477,685.76
Acquisition of treasury shares –1,237,419.08 –1,962,752.48
Share-based payments – 1,542,643.64
Accrued earnings, 31 Dec 16,202,941.92 14,385,253.40
Net profit 8,056,007.48 7,569,610.09
Total unrestricted shareholders’ equity 66 799 448,52
64,495,362.61
Total shareholders’ equity 68 887 013,02
66,582,927.11
Calculation of distributable shareholders’ equity, 31 Dec
EUR 2023 2022
Unrestricted shareholders’ equity reserve 42,540,499.12 42,540,499.12
Retained earnings 16,202,941.92 14,385,253.40
Net profit 8,056,007.48 7,569,610.09
Total
66,799,448.52 64,495,362.61
13. Non-current liabilities
EUR 2023 2022
Loans from financial institutions 20,500,000.00 17,000,000.00
Other non-current liabilities 4,371,720.25 5,730,000.00
Total
24,871,720.25 22,730,000.00
14. Current liabilities
EUR 2023 2022
Interest-bearing
Current interest-bearing liabilities 11,500,000.00 8,000,000.00
Liabilities to Group companies
Borrowings 75,478,332.79 75,474,255.21
Total interest-bearing current liabilities
86,978,332.79 83,474,255.21
Liabilities to Group companies
Accounts payable 125,364.26 1,540,722.59
Accruals and deferred income 26,768,669.16 18,608,055.40
To others
Accounts payable 316,907.16 232,282.15
Other liabilities 4,447,016.47 8,838,123.93
Accruals and deferred income 1,293,703.49 1,205,541.67
Total interest-free current liabilities
32,951,659.55 30,424,725.74
Total current liabilities
119,929,992.34 113,898,980.95
Material items included in accrued expenses arise from the accrual of
holiday pay, as well as accrued provisions for salaries and fees.
15. Contingent liabilities
Lease liabilities
EUR 2023 2022
Due during the current financial period 57,388.70 68,680.17
Due later 45,176.03 45,824.61
Total
102,564.73 114,504.78
Other lease liabilities
EUR 2023 2022
Due during the current financial period 2,271,117.36 2,753,091.14
Due later 1,429,928.36 2,423,861.79
Total
3,701,045.72 5,176,952.93
Other liabilities
EUR 2023 2022
Collateral pledged for own commitments
Other 453,863.80 582,617.82
Total
453,863.80 582,617.82
16. Share-based incentive scheme
The purpose and key terms of the share-based incentive scheme are
presented in section 4.4 of the consolidated financial statements.
During the 2023 fiscal year, Digia had two long-term share-based incen-
tive schemes for senior executives: performance-based incentives were
paid on the basis of the 2020–2022 earnings period, and the 2023–2025
earnings period was launched for the new scheme. The maximum number
of shares promised as share rewards in the new scheme is 480,000. They
represent 1.8 per cent of share capital and the total number of shares. The
number of people participating in the scheme on 31 December 2023 was
21, including the CEO. The estimate of the amount of bonuses to be paid
on 31 Dec 2026 is EUR 1,586 thousand.
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Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statementsBoard of Directors’ Report
Signatures to the Board’s Report
and Financial Statements
A report of the audit has been submit ted today.
Helsinki, 8 February 2024
Ernst & Young Oy
Terhi Mäkinen
Authorised Public Accountant
Auditor’s Note
Helsinki, 8 February 2024
Robert Ingman Mart ti Ala-Härkönen Sant tu Elsinen
Chair of the Board of Directors
Sari Leppänen Henry Nieminen Outi Taivainen
Timo Levoranta
President & CEO
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
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Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statementsBoard of Directors’ Report
Auditor’s report (Translation of the Finnish original)
To the Annual General Meeting of Digia Plc
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Digia Plc (business identity
code 0831312-4) for the year ended 31 December, 2023. The financial
statements comprise the consolidated income statement, statement of
comprehensive income, balance sheet, cash flow statement, statement
of changes in equity and notes, including material accounting policy
information, as well as the parent company’s income statement, balance
sheet, cash flow statement and notes.
In our opinion
● the consolidated financial statements give a true and fair view of the
group’s financial position, 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 compa-
ny’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 submit ted to the Audit
Commit tee.
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 compa-
nies in accordance with the ethical requirements that are applicable in
Finland and are relevant to our audit, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
In our best knowledge and understanding, the non-audit services that
we have provided to the parent company and group companies are in
compliance with laws and regulations applicable in Finland regarding these
services, and we have not provided any prohibited non-audit services
referred to in Article 5(1) of regulation (EU) 537/2014. The non-audit
services that we have provided have been disclosed in note 3.7 to the
consolidated financial statements and note 5 to the parent company
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Key Audit Mat ters
Key audit mat ters are those mat ters that, in our professional judgment,
were of most significance in our audit of the financial statements of the
current period. These mat ters 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 mat ters.
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 mat ters. 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 mat ters below, provide the basis for our audit
opinion on the accompanying financial statements.
We have also addressed the risk of management override of internal
controls. This includes consideration of whether there was evidence of
management bias that represented a risk of material misstatement due to
fraud.
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
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Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statementsBoard of Directors’ Report
Key Audit Mat ter How our audit addressed the Key Audit Mat ter
Revenue Recognition
We refer to note 3.2 of the consolidated financial
statements.
The group has multiple sources of revenue, including
work performed by people, licenses and maintenance
of own products, products of third parties and their
maintenance as well as services.
Revenue on work performed by people is recog-
nized over time in accordance with progress. Fixed
price projects are recognized over time based on their
percentage of completion. Licenses of own products
are recognized when the product has been delivered
and maintenance is recognized over time during the
contract period. Revenue on third-party licenses is
recognized on delivery. If Digia bears the responsibility
of the product, revenue is recognized on gross basis
and if third party bears the responsibility, the margin or
commission is recognized as revenue. Revenue from
services is recognized over time during the agreement
period.
There is a risk in revenue recognition due to various
terms and conditions included in the sales contracts
and management judgment required in applying
percentage of completion method. Because of the
risk associated with the correct timing of revenue
recognition, revenue recognition was determined
to be a key audit mat ter and a significant risk of
material misstatement referred to in EU Regulation No
537/2014, point (c) of Article 10(2).
Our audit procedures to address the risk of material
misstatement in respect of revenue recognition
included, among others, following procedures:
● We evaluated revenue recognition principles applied
by the group from the perspective of applicable
accounting standards.
● We evaluated the applied revenue recognition
methods in relation to the terms and conditions of
sales contracts.
● We tested correctness of the timing of revenue
recognition.
● Concerning fixed price projects, we compared
estimates of project revenues to sales agreements.
● We evaluated estimates of remaining amount of work
in order to recognize potential loss-making projects.
● We evaluated appropriateness and sufficiency of the
notes relating to group’s revenues.
Key Audit Mat ter How our audit addressed the Key Audit Mat ter
Valuation of Goodwill
We refer to note 7.1 of the consolidated financial
statements.
At the balance sheet date of 31.12.2023 the value of
goodwill amounted to 93 million euros, representing
55% of total assets and 124% of shareholders’ equity
(2022: goodwill 86 million euros representing 54% of
total assets and 121% of shareholders’ equity).
Valuation of goodwill was a key audit mat ter
because
● the annual impairment testing process is complex,
it includes estimates and it requires significant
management judgment,
● impairment testing is based on management’s
assumptions relating to market and economic
conditions, and
● goodwill is significant to the financial statements.
The Board of Directors has determined that the
group in its entirety is a cash generating unit subject
to impairment test. The recoverable amount is
determined based on value in use calculation. The
outcome of the calculation may vary significantly
when the underlying assumptions change. Value in
use is dependent on several assumptions such as
revenue growth, operating profit and discount rate
applied. Changes in these assumptions may lead in
impairment of goodwill.
Our audit procedures included, among others, following
procedures:
● We evaluated with the assistance of our valuation
specialists the appropriateness of underlying
assumptions and methods applied by the manage-
ment with regards to following assumptions: fore-
casted revenue growth, operating profit percentage
and weighted average cost of capital on discounted
cash flows.
● We evaluated with the assistance of our valuation
specialists the appropriateness of sensitivity analysis
and whether any reasonably possible change in an
underlying assumption could cause the book value to
exceed the value in use.
● We compared future estimates to the budget
approved by the Board of Directors, we compared the
available historical information to actual outcome,
and we tested the mathematical accuracy of the
impairment calculation.
● We compared note 7.1 of impairment testing to the
disclosure requirements of the applicable accounting
standard and evaluated appropriateness and suffi-
ciency of information included the note.
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
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Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statementsBoard of Directors’ Report
Responsibilities of the Board of Directors and the
Managing Director for the Financial Statements
The Board of Directors and the Managing Director are responsible for the
preparation of consolidated financial statements that give a true and fair
view in accordance with 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, mat ters 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 influ-
ence the economic decisions of users taken on the basis of the financial
statements.
As part of an audit in accordance with good auditing practice, we
exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
● Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal
control.
● Obtain an understanding of internal control relevant to the audit
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the parent company’s or the group’s internal control.
● Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made
by management.
● Conclude on the appropriateness of the Board of Directors’ and the
Managing Director’s use of the going concern basis of accounting and
based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt
on the parent company’s or the group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are
required to draw at tention in our auditor’s report to the related disclo-
sures 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 mat ters, 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 independ-
ence, and communicate with them all relationships and other mat ters
that may reasonably be thought to bear on our independence, and where
applicable, related safeguards.
From the mat ters communicated with those charged with governance,
we determine those mat ters that were of most significance in the audit of
the financial statements of the current period and are therefore the key
audit mat ters. We describe these mat ters in our auditor’s report unless
law or regulation precludes public disclosure about the mat ter or when, in
extremely rare circumstances, we determine that a mat ter 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
21.3.2022 and our appointment represents a total period of uninterrupted
engagement of 2 years.
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
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Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statementsBoard of Directors’ Report
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 respon-
sibility 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 8.2.2024
Ernst & Young Oy
Authorized Public Accountant Firm
Terhi Mäkinen
Authorized Public Accountant
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
75
Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statementsBoard of Directors’ Report
Independent Auditor’s Report on Digia Oyj’s
ESEF-Consolidated Financial Statements (Translation of the Finnish original)
To the Board of Directors of Digia Oyj
We have performed a reasonable assurance engagement on the iXBRL
tagging of the consolidated financial statements included in the digital
files 743700QVAG6OXK5OP587-2023-12-31-fi.zip of Digia Oyj (business
identity code: 0831312-4) 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 respon-
sibility 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 compli-
ance with ethical requirements, professional standards and applicable
legal and regulatory requirements.
Auditor’s Responsibilities
In accordance with the Engagement Let ter 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 consoli-
dated 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 consol-
idated financial statements included in the ESEF financial statements
743700QVAG6OXK5OP587-2023-12-31-fi.zip of Digia 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 Digia Oyj
for the year ended 1.1.–31.12.2023 is included in our Independent Auditor’s
Report dated 8.2.2024. In this report, we do not express an audit opinion
any other assurance on the consolidated financial statements.
Helsinki 29.2.2024
Ernst & Young Oy
Authorized Public Accountant Firm
Terhi Mäkinen
Authorized Public Accountant
BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023
76
Consolidated financial statements Notes to the consolidated financial statements Parent company’s financial statementsBoard of Directors’ Report
