DIGITALISATION THAT MAKES A DIFFERENCE
Annual Report
2021
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
This is a voluntary published pdf
closure obligation pursuant to Section
7:5§ of the Securities Markets Act.
2
Digia’s direction
3 Digia in brief
5 CEO’s review
6 Markets and Digia's market position
7
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
DIGIA IN BRIEF
3
We help people and organisations renew
The utilisation of technology is a key tool in business
renewal and the development of competitiveness in both
companies and the public sector. Our customers’ needs
are connected to three main areas, which are digital
Digia’s offering is well suited to these customer needs.
Digia is a software and service provider with more than 1,300 employees. We are seeking sustainable growth from
digitalisation that reshapes everyday life and promotes our customers’ business.
systems, and data utilisation solutions. We manage all
of these layers of digitalisation and ensure that services
function around the clock.
There are more than 1,300 of us working at Digia. Our roots
are in Finland, and we operate in eight Finnish locations
subsidiary Climber operates in Sweden, Finland, Denmark,
and the Netherlands. Our headquarters is located in Hel
sinki. Digia’s net sales totalled EUR 156 million in 2021. The
company is listed on the Nasdaq Helsinki (DIGIA).
Our daily lives are guided by four cultural principles that
are based on our strengths and help us to renew our
selves: learning, sharing, courage, and professional pride.
Our Senior Trainee philosophy means that we believe that
projects can end but no one is ever done with learning.
These principles are also evident in our customer work:
new digital solutions, and boldly learn new things, so that
digital daily life would mean a better life for everyone.
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
DIGIA IN BRIEF
4
Every Digia
employee is a
Senior Trainee
“We complete our work
but we ourselves are a
LEARNING
It will not
sting that
bad
“I will choose whatever works the
best. If I made a wrong call, I’ll
COURAGE
Together
we know
more
“Shared information is double
the information. Helping
SHARING
I stand by
my work
“What goes around doesn’t
surprisingly come around
PROFESSIONAL PRIDE
Digia’s cultural principles
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
CEO’S REVIEW
5
2021 was another year marked by the corona
virus pandemic. During the year, the oppor
tunities afforded by technology received
increasing attention among our customers
investments. A clear need for business renew
al was seen in our customer base: demand
data utilisation, and customer relationship
management solutions. In late 2021, a new
stage of the pandemic once again brought
uncertainty to our operating environment.
As the need for digitalisation grows,
required from industry leaders. In addition to
recruitment and providing continuous learn
ing for our own personnel, we strengthened
our capabilities through two acquisitions and
tise and offering by acquiring the entire share
capital of the Swedish analytics company
Climber International AB. Climber implements
tions. In September, we acquired the entire
share capital of Solasys Oy. Solasys has long
been our subcontractor in the delivery and
reporting and analytics.
freelancer network in Finland. Towards the end
of the year, we signed a cooperation agree
We paid particular attention to enhancing
standard of workplace ergonomics. This is all
part of building the workplace community of
the future in which work and development will
increasingly occur in a physically decentral
ised community.
The continual development of our operating
models is part of our strategy. In 2021, we
forged ahead with our project to modernise
our own business platform (Digia Business
Renewal is taking our business to
the next level
In line with our strategy, 2021 was a year of business renewal and building growth. We continued
to develop our operations in order to better serve our customers. Our own business platform –
completed two strategic acquisitions. Our net sales grew by 12.1 percent.
Engine). In this project, we are creating a
smart technology growth platform and
overhauling our management system
to support future growth and enhanced
productivity. The Digia Business Engine will
be introduced in phases from the year 2022
onwards.
Responsible business and sustainable
growth are the basic ideas behind Digia’s
operations. 2021 marked the halfway point of
our strategy period. Although we were work
ment, we continued along our chosen path
of renewal. We want to renew Digia in order
to continue helping our customers also in
the future to successfully take advantage of
the opportunities afforded by technology.
I would like to thank our customers, person
nel, partners and other stakeholders for this
Timo Levoranta
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
MARKETS AND DIGIA'S MARKET POSITION
6
Digia operates in Finland and Sweden, and our subsidiary
Climber operates in Sweden, Finland, Denmark and the
continue to grow in the long term. Although the corona
virus pandemic still poses uncertainty in our operating
environment, we believe that demand will develop favour
ably in 2022.
The pandemic has helped to accelerate digital advance
ments: it has woken up many organisations to review their
operating methods and assess opportunities for harness
chain management.
Market trends
We see the following strengthening trends in the market
both in the business and public sector:
• Digitalisation is an increasingly important part of
the core operations of organisations and business
processes
• The world is becoming networked, and digital platforms
enable new business models
• Smart and responsible data utilisation in business pro
cesses creates a competitive advantage
•
services
• The role of cloud technologies as a platform for devel
oping and operating services is becoming the norm
• Data utilisation leads to further increases in data secu
rity and protection requirements.
Developing digital business and data utilisation continue
based business management increases a company’s
ciency of your operations, identify customer needs, and
build better customer encounters.
must run effectively. This means that there is also a
integrations and interface solutions as well as core busi
ness systems. Digia is strong in this area.
Digia’s market position
ent markets. We have systematically built up our cus
tomer and industry independent offering so as to be an
the pandemic, our special strengths have been various
the service and maintenance business.
Our comprehensive service offering enables us to serve
customers regardless of their stage of development and
out risks involving demand in individual sectors.
As part of our strategy, we have also strengthened our
data and analytics capabilities by acquiring the Swedish
business analytics specialist Climber International AB.
Read more about our strategy on page 7.
In addition to our project business, Digia provides compre
hensive services for maintenance, monitoring, and contin
uous development. Service and maintenance agreements
bring stability to Digia’s business and serve as a founda
tionships. In 2021, service and maintenance accounted for
67.1 percent of our net sales.
Markets and Digia's market position
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
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Financial statements
STRATEGY
7
Strategy 2020-2022
For its customers, Digia is a turnkey provider of smart
solutions and a service company that manages the
service lifecycle from implementation to maintenance
and development. We provide our customers with a ser
vice package covering mobile and online services, data
For all of these, we provide various levels of maintenance
services to help our customers operate their
During the 2020–2022 strategy period, we will be further
strengthening data utilisation in particular and helping
smart utilisation of data.
Read more about strategic implementation during 2021
on page 45 of the Report by the Board of Directors.
Financial objectives
Digia is seeking annual net sales growth of more than 10
percent including organic growth and acquisitions. The
gin of 10 percent by the end of the strategy period.
One of the key themes of this strategy period is to renew our operations and
strengthen our chosen priorities. In the strategy, we have placed particular
emphasis on data utilisation in our customers’ services and business processes.
Strategy is a growth journey for
both customers and personnel
Digia generates value for its customers both as a vision
ary and a reliable partner. Solid customer relations,
professionalism, corporate culture, and a strong product
and service package form the basis for our operations.
We are steered with the aid of Digia’s cultural principles:
courage, sharing, learning and professional pride. These
cultural principles are everyday rules that help us renew
learning and renewal. Responsibility is also central to our
operations. Read more about our corporate responsibility
on page 19.
As our operating environment becomes increasingly net
capabilities with the aid of partner networks. We work
with leading technology partners in the best interests of
our customers. We are able to guarantee technological
Strategic focal points
• Smart and responsible data utilisation. We will
Digia’s service areas from business systems to inte
grations and digital services. We believe that data is
a key element in all of our customers’ operations.
• Valued employer. Skilled employees are the most
important success factor for Digia. We are constantly
developing Digia into a more desirable workplace
by reinforcing our culture, at the heart of which is the
continuous learning by every employee.
• Service business. We will deepen our customer rela
tionships and further strengthen the share account
ed for by the service business.
• Productivity and scalability. We will develop our
operational models and solutions to improve our
project in the strategy period will be the reform of our
own business platform.
• Cloud technologies. Cloud technologies are the
development and operating platform for future ser
cloud services, taking into account both data securi
ty and key public cloud platforms.
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
2021 2020 Change, %
Net sales
Result for the period
Number of personnel by the end
of the period
Average personnel
Balance sheet total
Earnings per share
200
150
100
50
0
2017 2018 2019 2020 2021
156
139
132
112
96
Net sales
EUR million
20
15
10
5
0
20202019 2021
18
16
11
Operating result
EUR million
Digia proceeded to EBITA guidance in the beginning of 2020.
DIGIA IN FIGURES
10
+ 10.9%
operations
16,676,000€
Earnings per share
0.44€
Number of
employees
1,339
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Selected milestones of 2021
11
Climber joins Digia: extra resources for
the provision of data-driven services
The Swedish company Climber joined Digia on 7 January 2021.
Climber’s strengths include business analytics solutions and
integration and business analytics.
Read more
Responsible use of data, carbon
neutrality and digital expertise
We published our revised corporate responsibility priorities,
objectives, and indicators in early 2021. Although the greatest
impact will be generated through our customers, we are also
investing in diversity, personnel competence, and climate
action.
Read more about our corporate responsibility on page 19.
Digia community present at home
Although the majority of Digia personnel worked at home
due to the pandemic, we also started to develop new work
ing practices for the future. At Digia, this means things such
More power through networks
home and abroad
Our Digia Hub freelancer network grew over the course of the
and Europe. In December, we also signed a partnership
agreement with Fulcrum Digital that will make more interna
Both of these networks will play a role in achieving Digia’s
strategic growth and scalability objectives.
Read more
Towards a symbiosis of humans
and software: Digia Business Engine
Our key individual development project during the strategy
period is the development of Digia’s own business platform,
Digia Business Engine. This project is an investment in Digia’s
future competitiveness: we are building a smart growth plat
form to support future growth and productivity. Digia
Business Engine will be deployed in phases from 2022
onwards.
A leader in Microsoft solutions
tions in Finland. In addition, Microsoft invited Digia to join the
Microsoft Business Applications 2021/2022 Inner Circle partner
network as the only Finnish company. We were recognised for
our achievements in 2021, including dedication to customers
and innovations around Microsoft’s cloud services.
Read more
Digia’s direction
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Digia’s service areas
Intelligent Solutions
Intelligent Solutions provides the compre
hensive digital services that are required
for a successful digital business. Sub
areas include data utilisation solutions,
and business and service design. Our
business intelligence services. The Digia
contracting network.
Digia reports on one business segment that comprises of four service areas. In 2021, Digia’s service areas were
Business Platforms
both the public and private sectors. Our
offering comprises Microsoft Dynamics
365 solutions, Oracle NetSuite solutions,
which has been awarded the Key Flag
symbol.
Financial Platforms
Digia Financial Systems product family,
cial systems for fund management com
panies, asset managers, and brokers in
the Nordic countries. We can also provide
Managed Digital Core
The Managed Digital Core business area
brings together all Digia services that form
the foundations of our customers’ digital
business: a package that consists of cloud
opment, and 24/7 managed services.
DIGIA’S SERVICE AREAS
12
Digia’s direction
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Customer stories
DIGIA’S SERVICE AREAS
13
Finnish Tax Administration
all citizens on a centralised basis for the authorities
– is an important system for the whole of Finland.
More than 100 Digia employees worked to imple
ment project.
Finnish society as a whole are considerable.
Voimatel
Energy systems will be undergoing enormous
changes over the coming years, and the Finnish
company Voimatel is operating right at the centre
based data platform that improves management
of solutions. The introduction of the data platform
enabled all business units to better develop their
The development of smart forecasting models and
new business activities was also launched using
Digia’s Fast Track operational model.
Nordkalk
was seeking a better solution for collecting produc
tion data and reporting on its mines and produc
tion facilities.
Nordkalk’s facilities and individual production lines
most important for each person’s work.
Read more Read more Read more
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Corporate Governance
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Customer stories
DIGIA’S SERVICE AREAS
14
SOL
When SOL began to outgrow its old CRM system,
it was time to update the company’s invoicing
and CRM with a modern platform. SOL updated its
invoicing and CRM system using a solution tailored
to the company’s needs.
Digia worked with SOL to create a solution that has
Dynamics 365 platform proved surprisingly ver
satile, and allows for further development of the
company’s processes in the future.
Robit
Robit manufactures drilling equipment. A few
years ago the company noticed that its business
and worked with Digia to introduce a new Oracle
NetSuite system that would support growth and
internationalisation.
develop procedures that automatically update
per day. Digia has also developed solutions for
Unisport
Unisport is the leading producer of sports facility
concepts in the Nordic countries and has been
active for over a hundred years. To achieve sus
and scalable business platform that would import
all of the required information into the data ware
house in a transparent way, so as to support
data management.
With the help of Digia, Unisport achieved this by
adopting a Microsoft Dynamics 365 Business
Central solution tailored to its needs.
Read more Read more Read more
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Responsible Digia
Digia 2021
Corporate Governance
Report by the
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Financial statements
PERSONNEL
15
2021 was another year marked by the pandemic, and Digia personnel continued
to work mainly from home. As we did in 2020, we continued to invest in
strengthening our culture and team spirit in remote working conditions and
continuously developing our competence capital, while also preparing for the
Personnel
bined with an encouraging and evolving workplace
culture. This is why we are able to provide our customers
giving our employees varied and motivating tasks.
We are making continual investments in the creation of a
ing workplace culture and a culture of lifelong learning.
We believe that in an esteemed and productive work
place community, it is possible to create a good balance
of meaningful work, continuous learning, wellbeing,
Culture, community, and the
employee experience
Digia wants to be a pioneer in good leadership and
workplace culture. We strive to provide Digia employees
workplace community. Meaningful tasks and having the
required skills for success at work provide the best sup
Digia uses an early intervention model that supports
that employees have more freedom to decide when they
work, although naturally taking customers and teamwork
into consideration. The idea is to ensure that there are
no unnecessary cultural or other obstacles to balancing
work with other aspects of life.
requisites for cooperation at regular intervals. In our 2021
survey, meaningful work, professional colleagues, and
both valued and thought had been successfully real
of remote and hybrid working in terms of both working
hours and location. As part of our corporate responsibility
reporting, we monitor certain things in more detail, such
as personnel’s satisfaction with team spirit and their
page 50.
As remote working continued throughout 2021, we con
tinued to invest in supporting our sense of community
through a variety of internal content and virtual events.
2017 2018 2019 2020 2021
Employees 31 December
Number of employees
1,500
1,200
900
600
300
0
1,258
1,266
1,091
1,005
1,339
Personnel by location 31 December
Number of personnel
Helsinki 726
Tampere 248
Jyväskylä 172
Turku 67
Stockholm 50
Rauma 24
Lahti 15
Malmö 14
Vaasa 10
Oulu 7
Hengelo 6
Digia’s direction
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Digia 2021
Corporate Governance
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PERSONNEL
16
a virtual summer party and a Christmassy morning
iment with and deploy virtual collaboration tools and
further developed our feedback culture with the aid of an
internal virtual channel called Spread the success. Digia
personnel can use this channel to thank their colleagues
ples that embody our culture of sharing, learning, cour
age, and professional pride. Some of Digia’s Tribes and
to continue remotely.
Level Awards to teams and individuals that had been
nominated by their Digia colleagues. These awards were
based on Digia’s cultural principles. The winners were
chosen by a jury of Digia employees.
daily life, in which an increasing amount of work will be
done in different environments. We surveyed our per
sonnel’s willingness to continue remote work after the
pandemic, and have used this as a basis for developing a
hybrid work model. Based on our personnel's wishes and
better meet future needs. Employees who primarily chose
remote work also received support in the form of a home
contained equipment, an electric table and a work chair.
Diversity at Digia
Diversity is part of Digia’s corporate responsibility: our
continuous development efforts seek to make Digia an
even more inclusive workplace – a place where every
aspect of inclusivity, and studies have shown it to be a
common factor among successful workplace commu
nities. Continuous learning is also one of our key cultural
principles. In the spirit of Senior Trainee attitude, we
believe that we can continuously develop as a workplace
community with respect to how we take people’s diversity
into account.
themselves at work and whether Digia has groups whose
voice should be better heard. We used the results to
create a summary of Digia’s main priorities in the form
of an action plan, and then systematically began putting
selected measures into practice.
<1 1–5 6–10 11–15 16–20 20<
50
40
30
20
10
0
Personnel by years of service 31 December
Percent
43.6
14.6
14.1
10.6
5.1
12.0
2017 2018 2019 2020 2021
Employees by gender 31 December
Number of employees
1,500
1,200
900
600
300
0
Other Female Male
Male
Female
Other
27.6%
26.1%
24.1%
74.5%
29.1%
70.9%
72.4%
73.9%
75.9%
25.5%
400
300
200
100
0
30-39 40-49 50-59 60
≤
< 30
Personnel distribution by age 31 December
Number of persons
Men
Women
Other
Women Men Other
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
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PERSONNEL
17
With our partner Inklusiiv, we continued to provide our
personnel and supervisors with training in unconscious
prejudices and inclusive leadership. This year, we once
again received insights and new perspectives from blog
posts written by Digia employees which shed light on things
Learning
We operate in an environment where everything is in
constant motion. To keep up with the pace, we need to
learn continuously and help others learn, too. We seek to
provide our employees with a range of opportunities for
personal development, thereby ensuring that both the
company and its employees maintain their competitive
ness. This radiates out as an ability to deliver even better
value to our customers in digital networks. We want to be
a team of top professionals who are always learning. To
ensure this, we develop our employees’ competence in
technology and other specialist areas through training,
An average of 57.7 hours of training per person were
spent on competence development in 2021. The Digia
during the year. This training primarily focused on organ
ising coaching to support the technical and professional
Tribal activities focus on sharing information between
personnel, and these continued remotely. In addition
to technical topics, tribes also organised lectures on
subjects such as preparing for retirement and impostor
syndrome.
As it is one of our priority areas, we created the Digia
Master of Cloud program, with the aim of gradually
skills, whilst also taking their starting level and tasks into
account. We will also continue to invest in developing
leadership with the aid of our two customised coaching
trate cooperation.
In addition to competence development for Digia per
both its own and the sector’s needs. For the second year
in a row, we collaborated with Vaasa Entrepreneurship
course that was attended by students from the Vaasa
University of Applied Sciences and the University of Vaa
sa. We also organised recruitment training programmes
have joined Digia.
Recruitment and networks
Successful recruitment that supports Digia’s workplace
culture is essential for competence development and
business success. Induction for new employees is part of
a successful recruiting process, and we therefore invest
in this in multiple ways. In addition to online induction
which new employees have been able to meet each oth
er (remotely during the pandemic). Each business area
has induction templates to suit the role in question.
In 2021, Digia continued to recruit new employees in
spite of the coronavirus pandemic. Virtual interviews
became an everyday occurrence in recruitment, which
soned IT professionals, we offered students and career
changers not only permanent positions, but also trainee
Career Compass recruitment breakfasts. The popularity
of this programme has grown steadily, and it once again
attracted a commendable number of applications.
We continued our active cooperation with educational
establishments in 2021. We also continued to develop our
employer image on the basis of preparations made in
2020, and our new strategy was completed in spring 2021.
We participated in the virtual Mimmit koodaa (Women
a coding club in cooperation with student organisations
and educational establishments.
During the autumn, we also held four interactive remote
professionals anonymous questions. The aim of these
mation about daily life in the IT sector, support them in
their studies, and make them aware of Digia and what
we do. We also strengthened our partnership network
by launching a key partnership with Laurea University of
Applied Sciences. This cooperation will also strengthen
both parties’ understanding of working life and the com
petences required to prepare for it.
Towards the end of the year, Digia took part in the
and organisational psychologist Jaakko Sahimaa. He
worked at Digia for a month, familiarising himself with
the company’s businesses and activities. Not only did
various channels such as social media, he also provided
own internal use.
Small entrepreneurship is also gaining in popularity in
the IT sector alongside traditional employment. The Digia
Hub network offers freelancers access to a broad variety
of Digia projects. It currently consists of more than 2,000
freelance professionals in Finland and more than 10,000
within the EU.
At the end of the year, we also established the Digia
alumni group in LinkedIn, so that former employees can
keep up with what’s going on in the Digia community
after they have moved on to tackle new challenges.
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Digia 2021
Corporate Governance
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Digia – sustainable digitalisation
that makes a difference
Our responsibility is based on our own Code of Conduct and the UN’s Sustainable Development Goals. We are committed
to respecting human rights in accordance with the UN’s Universal Declaration of Human Rights 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.
Sustainable digital value for our customers
while building a functional society
in which our society is developing. By ensuring that our
solutions are functional, secure and easy to use, we also
promote the responsible digitalisation of society.
Digia aims to act as a technological pioneer whose
products and services promote the development and
wellbeing of society and the environment. We seek to
implement our solutions so that they promote our cus
tomers’ responsibility. We help our customers to utilise
data in a responsible manner, and to improve the avail
ability and usability of their services. We also seek to
promote the ethical use of data.
ent ways. In addition to customer work, we seek to con
tribute to building solutions that enhance environmental
and social responsibility for society and our customers.
RESPONSIBLE DIGIA
19
Read more about our objectives and
indicators in the Report by the Board
of Directors on page 50.
and indicators. The selected objectives and indicators will remain in effect until the end of 2022.
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
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Sustainable digital expertise for both our
personnel and Finland as a whole
Skilled personnel who are committed to the objectives of our
customers are the cornerstone of all our operations. Digia
aims to be a desired employer in the technology sector – an
employer that supports personnel wellbeing and compe
tence development. Our goal is to increase the value of our
operator in the IT sector. That’s why we also have a
meet both our own needs and those of the sector as
a whole.
Sustainable digital life in our own work
with respect for the environment
Digia wants to provide a safe and healthy working environ
ment in which everyone is valued as themselves. Continually
monitoring and supporting personnel wellbeing plays a
key role at Digia. When it comes to wellbeing, we want Digia
to be among the best in the sector. We also aim to ensure
diversity and inclusivity at all levels of our organisation. Digia
is a member of the Inklusiiv community, whose mission is to
promote increased diversity and inclusivity in the workplace.
Digia shoulders its responsibility for the environment in all
its choices. We strive to take the environmental impacts of
our business into account, in both our own operations and
procurement processes. The largest environmental impacts
of Digia’s operations are related to energy consumption and
Compliance with Digia’s Code of Conduct is an essential
factor in the success of our business. All of the company’s
employees, including management and the Board of Direc
tors, are responsible for adhering to these principles in their
work. This Code of Conduct also applies to Digia’s subcon
tractors. Our goal is for our entire organisation to internalise
and comply with these ethical practices.
RESPONSIBLE DIGIA
20
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Digia 2021
Corporate Governance
Report by the
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Digia Plc’s Corporate
Governance Statement 2021
General
This Statement has been issued separately from the
Report of the Board of Directors.
system is based on the Companies Act, the Securities
Markets Act, general corporate governance recommen
dations, the company’s Articles of Association and its
The company (and this Statement) adheres to the Gov
ernance Code for Listed Finnish Companies issued by the
Finnish Securities Market Association, which entered into
force on 1 January 2020. The Corporate Governance Code
can be read on the Finnish Securities Market Association’s
website .
Digia’s corporate governance principles are integrity,
accountability, fairness, and transparency. This means that:
• The company complies with applicable legislation and
regulations.
• When organising, planning, managing, and running its
business operations, the company abides by the appli
cable professional requirements that have been gener
ally approved by its Board members, who demonstrate
due care and responsibility in performing their duties.
• The company is prudent in the management of its
capital and assets.
• The company’s policy is to keep all parties in the market
actively, openly, and equitably informed of its business
es and operations.
• The company’s management, administration and
personnel are subject to the appropriate internal, and
Shareholders’ Meeting
on company matters. The Annual General Meeting (AGM)
must be held once a year before the end of June on a
date set by the Board of Directors. Each company share
entitles the holder to one vote at a Shareholders’ Meeting.
Board of Directors deems it necessary or if requested in
writing by a company auditor or shareholders holding a
minimum of 10 percent of the company’s shares, for the
The Finnish Companies Act and Digia’s Articles of Associ
vened. In order to participate in a Shareholders’ Meeting,
a shareholder must be entered in the Digia shareholder
register maintained by Euroclear Finland Oy on the record
date for the Shareholders’ Meeting, and must also have
registered for the meeting at the latest by the date given
in the invitation.
The Chair of the Board, Members of the Board, auditor,
should be present at Shareholders’ Meetings.
The minutes of Shareholders’ Meetings will be available
for shareholders to read on the company’s Internet site at
meeting/ within two weeks of the meeting. The decisions
made at Shareholders’ Meetings will be published in a
Shareholders have the right to add a relevant item (as
Shareholders’ Meeting, as long as the request is made in
writing to the Board of Directors in time for the item to be
added to the notice of meeting. Digia will announce the
date by which shareholders must present a requested
AGM agenda item to the company’s Board of Directors.
This deadline will be published on Digia’s website. The
date will be announced at the latest by the end of the
The 2021 Annual General Meeting was held on 17 March
2021. More information about the decisions made at
this meeting are available at
digia.com/en/investors/
.
22
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Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Board of Directors
Activities and tasks
The Board of Directors is elected by the Shareholders’
Meeting, and is in charge of Digia’s administration and
the appropriate organisation of the company’s oper
ations. Under the Articles of Association, the Board of
Directors must consist of a minimum of four and a
will present the Shareholders’ Meeting with its proposal
for the composition of the new Board of Directors to be
appointed.
The majority of Board members must be
independent of the company and a minimum of two of
those members must also be independent of the com
pany’s major shareholders. Neither the CEO nor other
company employees working under the CEO’s direction
may be elected members of the Board.
Annual General Meeting following their election. A Board
number of successive terms. The Board of Directors elects
its Chair and Vice Chair from amongst its members.
Board Diversity Policy
policy. It states that the requirements of the company’s
ed in the Board’s composition. Both genders should be
represented on the Board. It should be ensured that the
the following areas in particular:
•
•
•
•
•
•
• board work.
The composition of the 2021 Board of Directors was
successfully in line with Digia’s diversity policy.
The Board of Directors’ rules of procedure
The Board has prepared and approved written rules of
procedure for its work. In addition to the Board duties
prescribed by the Companies Act and other rules and
regulations, Digia’s Board of Directors is responsible for
the items in its rules of procedure, observing the following
general guidelines:
• good governance requires that, instead of needlessly
interfering in routine operations, the Board of Directors
should concentrate on furthering the company’s short
and long term strategies
• the Board’s general task is to steer the company’s busi
of various stakeholder groups
• Board members are required to act on the basis of
manner that serves the company’s interests.
The Board of Directors’ rules of procedure cover the
following tasks:
•
preliminary meeting schedule and framework agenda
for each meeting
• provide guidelines for the Board’s annual
• provide guidelines for distributing notices of meetings
and advance information to the Board, and procedures
for keeping and approving minutes
•
and Secretary (the latter position is held by the General
Counsel or, if absent, the CEO)
•
special committees or working groups.
The Board evaluates its activities and working methods
when necessary.
The Board convened a total of 10 times during the 2021
CORPORATE GOVERNANCE STATEMENT
23
Audit
ISO 9001 quality management system and
other written guidelines
Risk
Management
Financial and
internal control
General overview of governance
Responsibility of Digia’s operations is held by the Shareholder’s
the Group Management Team.
SHAREHOLDER’S MEETING
BOARD OF DIRECTORS
Audit
Committee
Compensation
Committee
Nomination
Committee
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Independence of the members of the
Board of Directors
The Board of Directors assesses the independence of its
members on an annual basis. Of the current members
Hokkanen, Seppo Ruotsalainen and Outi Taivainen are
independent of the company and its major shareholders.
Robert Ingman is independent of the company. Robert
Ingman is not independent of the company’s major
shareholders due to his holdings in related parties.
Committees of the Board of Directors
three (3) committees: the Audit Committee, the Compen
sation Committee, and the Nomination Committee.
and collegial responsibility over their actions.
Audit Committee
The purpose of the Audit Committee is to assist the Board
any other information provided by the company com
ply with legislation and are balanced, transparent and
clear. The Audit Committee also supervises and assesses
internal control and auditing, the effectiveness of risk
management systems, and how well agreements and
other legal actions between the company and its related
parties meet market conditions and the requirements for
ordinary operations. The Audit Committee supervises and
assesses the independence of the company’s auditor
services. The Audit Committee also supervises the com
pany’s audit and prepares a proposal for the choice of
consisted of Seppo Ruotsalainen (Chair), Santtu Elsinen
Compensation Committee
Digia’s Compensation Committee is tasked with prepar
ing and monitoring remuneration policies for the compa
ny’s governing bodies and management remuneration
schemes in order to ensure that the company’s targets
tion is objective, and that remuneration schemes are
transparent and systematic. In 2021, the Compensation
Ingman and Outi Taivainen. The committee convened
Nomination Committee
The Nomination Committee prepares proposals for the
Annual General Meeting on the number of members
of the Board of Directors, the members of the Board of
Directors, the remuneration for the Chair, Vice Chair and
members of the Board of Directors, and the remuner
ation for the Chair and members of the committees of
Nomination Committee consisted of Seppo Ruotsalainen
Nomination Committee convened seven times during the
CEO
the Board of Directors. The CEO is in charge of Digia’s
business operations and administration in accordance
with the instructions and regulations issued by the Board
of the company’s activities, only if so authorised by the
Board of Directors. The CEO chairs the Group Manage
ment Team’s meetings. The CEO is not a member of the
Board of Directors, but attends Board meetings.
The Board of Directors approves the CEO’s service con
and conditions of the CEO’s employment. Timo Levoranta
Group Management Team
CEO in the routine management of the company. Under
the authorisation of the Board of Directors, the Compen
sation Committee approves the appointments of the
members of the Group Management Team and decides
on the terms and conditions of their service contracts on
other appointments.
The CEO chairs meetings of Digia’s Management Team.
The Management Team consisted of nine members on 31
December 2021. The Team meets once every two weeks
to assist the CEO in the preparation and implementation
of strategy, operative management, and preparing items
for consideration by the Board of Directors. The Team
associated targets, and monitors their progress. It also
tions. The CEO is responsible for the Management Team’s
decisions. Members of the Management Team are tasked
with implementing these decisions within their own areas
of responsibility.
CORPORATE GOVERNANCE STATEMENT
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Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Born Holdings on 31 Dec 2021* Member since
1965 2016
Santtu Elsinen 1972
0
1959 2012
1961 2010
1954 Board professional 2012
Outi Taivainen
*Includes related parties and related party holdings
The attendance of Board and Committee members at meetings in 2021
Audit Committee
10/10 4/4 7/7
Santtu Elsinen 10/10 4/4
10/10 7/7
Robert Ingman 10/10 7/7 7/7
Seppo Ruotsalainen 10/10 4/4 7/7
Outi Taivainen 10/10 7/7
Management Team members on 31 Dec 2021
Born Holdings on 31 Dec 2020* Member since
Timo Levoranta 1965 2016
1969 LLM
Juhana Juppo 1971
Business Services
2016
Mika Kervinen General Counsel 2016
Jukka Kotro 1961
Business Information Technology
2017
Tuomo Niemi 1962 2017
1974 197 2021
Kristiina Simola 1965 2017
Janne Tuominen 2021
*Includes related parties and related party holdings
CORPORATE GOVERNANCE STATEMENT
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Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Internal control and risk
reporting
Control functions and control
environment
The company has a controller function that reports to the
CFO and is tasked with ensuring the accuracy of month
performance of the company and its divisions to Man
agement, the Board of Directors, and the Board’s Audit
Committee.
The company uses a reporting system that compiles
ments. There are also written directives for completing
monitors compliance with these instructions. The compa
ny also has the separate reporting facilities required for
monitoring business operations and asset management.
consolidated interim reports and consolidated Financial
tralised control over the Group’s funding and asset man
Internal control
Internal control helps to ensure the reliability of the Digia
matters. The Group’s business is divided into areas of
ing to the CEO. Reporting and supervision are based on
annual budgets that are reviewed monthly, on monthly
income reporting, and on updates of the latest forecasts.
bility of projects.
development matters, strategic and annual planning,
business and income monitoring, investments, potential
acquisition targets and internal organisation matters
related to their areas of responsibility. Each area of
responsibility also has its own management team.
Digia’s operational management and supervision adhere
to the corporate governance system described above.
Digia has not yet established a separate function respon
sible for internal auditing. The need for an internal audit
function is regularly assessed. With the company’s
ment functions are able to handle internal auditing tasks.
Risk management and major risks
The purpose of the company’s risk management process
is to identify and manage risks in a way that enables the
management is a continuous process by which the major
in charge of risk management are appointed, and risks
are prioritised according to an assessment scale that
implementing risk management measures, and then
monitoring their impact.
The main operational risks monitored under Digia’s risk
management are related to customers, personnel, deliv
eries, IT, data security and protection, immaterial rights,
and goodwill.
The company manages customer risks by actively devel
oping its customer portfolio structure and avoiding any
potential risk positions.
quarterly performance review and development dis
cussion process in which key personnel participate. To
enhance personnel commitment, the company strives to
nications via regular personnel events and by increasing
tematically developing our personnel’s competence and
recruitment processes as well as through subcontractor
management.
projects and continuous services are conducted with a
view to enhancing project and service risk management
and securing the success of customer deliveries. Digia
es described in this system are utilised in all operations
Audits are carried out to manage data security and pro
tection risks, and the company also continually develops
working models, practices, and processes that promote
data security and protection. Security training is organ
ised for all personnel. In 2020, we renewed our internal
data security and data protection training package. This
training must be retaken every year, not only by Digia
personnel but also any subcontractors working on Digia’s
premises.
The Management Team is tasked with systematically
managing risks associated with business integration,
shared operating models and best practices, as well
as their integrated development. Typical risks in the
software business include the appropriate protection
and appropriate supervision and analysis.
CORPORATE GOVERNANCE STATEMENT
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Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Group actively monitors goodwill and its associated
impairment tests as a part of prudent and proactive risk
Digia has assessed the corporate liability risks associated
with its own operations and business relations, and has
adequate and appropriate processes in place to predict
and take precautions against these risks.
In addition to operational risks, the company is subject
company. This function is responsible for the Group’s
ment of interest rate and currency risks. The Group is
business. The Group’s risk management seeks to mini
risks are interest rate risk, credit risk, and funding risk. The
general principles of risk management are approved by
together with the business segments is responsible for
their practical implementation.
Insider issues
Digia complies with the current Guidelines for Insiders
issued by Nasdaq Helsinki. Digia also adheres to its own
insider guidelines, which supplement Nasdaq Helsinki’s
guidelines. Digia’s General Counsel is responsible for
insider issues.
Insiders
Digia’s insiders are divided into:
1. permanent insiders, which include the CEO and
members of Digia’s Board of Directors and
Management Team
due to their position or tasks
insider registers.
Management’s business transactions
Members of Digia’s Management and those in their close
circle must report all business transactions that involve
EUR 5,000 to both Digia and the Financial Supervisory
Authority. The managerial positions covered by this obli
gation are: the CEO, members of the Management Team,
and members of Digia’s Board of Directors.
business transactions made by members of Digia’s Man
agement and those in their close circle. These releases
will be issued within three (3) days of the transaction.
Digia also keeps a record of this information on the com
pany’s website.
Closed window
Anyone working in a managerial position at Digia, or who
in the company’s securities during a period of 30 days
before the publication of one of the company’s business
securities whilst the project is ongoing.
Reporting misconduct
suspected cases of bribery and corruption, market abuse,
and violation of Digia’s insider guidelines. This channel
seeks to promote compliance with good governance
in the company’s routine activities, and to prevent and
detect misconduct. It can be used to report market abuse
and the violation of operating principles, regulations and
Anyone can make an anonymous report using the form
on either Digia’s intranet or its public website. All reports
are directed to Digia’s legal unit and the chair of the Audit
Committee of the Board of Directors. All reports will be
informant and suspect.
Related-party transactions
According to the Corporate Governance Code, a compa
ny must evaluate and monitor business transactions with
of interest are duly taken into consideration in the com
Board members, the CEO, and Management Team mem
bers with instructions concerning related parties. In order
any business. The business function and the legal counsel
actions form part of the company’s ordinary business
and whether they are subject to standard commercial
terms and conditions. The Audit Committee of the Board
of Directors monitors and supervises the assessment of
company’s ordinary business or not be subject to normal
CORPORATE GOVERNANCE STATEMENT
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Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
market conditions, then this business transaction must be
decided upon by the company’s Board of Directors.
detail in the consolidated Financial Statements. The com
market conditions and do not deviate from the compa
ny’s ordinary business.
Auditor and auditor’s fees
Central Chamber of Commerce. The auditor is elected
until further notice. The Annual General Meeting elects
chief auditor since 2015.
2021
96
39
Other statutory duties 2
2
Other services 17
Total 157
CORPORATE GOVERNANCE STATEMENT
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Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Digia’s Board of Directors
Robert Ingman
Chair of the Board of Directors
b. 1961, MSc. (Tech.), MSc. (Econ.)
Digia Board Member since 2010, Vice
Nomination Committee and Compensation
Committee.
A Member of the Directors’ Institute of
Finland.
Key work experience
CEO, Ingman Group, 2000–
CEO, Ingman Foods Ltd, 1997–2000
Chair of the Board of Directors
Ingman Group Ltd, 2009–
Ingman Development Ltd, 2013–
Ingman Finance Ltd, 2009–
Halti Ltd, 2012–
Member of the Board
Ingman Baltic Sea Finance Ltd, 2015–
Independent of the company.
Seppo Ruotsalainen
Vice Chair of the Board
b. 1954, Lic.Sc. (Tech.), MSc. (Tech.)
Digia Board member since 2012. Vice Chair
of the Board, and Chair of the Board’s Audit
Committee and Nomination Committee.
A member of the Directors’ Institute of
Finland and the Finnish Business Angels
Network, and a founder member of the
Startup Foundation.
Key work experience
Several management positions, Hewlett
Chair of the Board of Directors
Softera Ltd, 2015–2020
Viabile Ltd, 2003–
AniLinker Ltd, 2003–2007
Member of the Board
Biisafe Ltd, 2014–2016
Napakka Ltd, 1999–2013
AtBusiness Communications, 2003–2006
3StepIT Group, 2003–2006
Independent of the company and its major
shareholders.
Päivi Hokkanen
Member of the Board
b. 1959, DSc (Econ.)
Digia Board member since 2012. Chair of
the Board’s Compensation Committee.
A Member of the Directors’ Institute of
Finland.
Key work experience
CEO, ITprofs Ltd, 2017–
Development Director, SoteDigi Ltd,
Several positions, Cap Gemini Ltd,
Several positions, Kansallisrahoitus Ltd,
Chair of the Board of Directors
Wointi Ltd, 2021
Member of the Board
Wointi Ltd, 2021–
ICT Leaders Finland, 2016–
Independent of the company and its major
shareholders.
DIGIA’S BOARD OF DIRECTORS
29
Digia’s direction
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Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Santtu Elsinen
Member of the Board
the Board’s Audit Committee.
A Member of the Directors’ Institute of
Finland.
Key work experience
CEO, Winterfell Capital Ltd, 2014–
CEO, Quartal Ltd, 2011–
Director, Business Development, Talentum
Director, Business Development, Trainers’
Director, Quartal Ltd, 1997–2005
Chair of the Board of Directors
Finnish Authentication Cooperative, 2021–
Quartal Ltd, 1997–
Member of the Board
Alma Mediapartners Ltd, 2017–
Arena Interactive Ltd, 2017–2020
Media Industry Research Foundation of
Finland, 2016–
Fondia Tools Ltd, 2011–2012
Other positions of trust
Finnish Media Federation, Chair of the
technology working group, 2019–
Independent of the company and its major
shareholders.
Outi Taivainen
Member of the Board
the Board’s Compensation Committee.
Key work experience
HR Director, Aava Terveyspalvelut Ltd, 2019–
Area HR Director, Central and North Europe,
Chair of the Board of Directors
Member of the Board
Helsinki Chamber of Commerce, 2009–2011
Other positions of trust
Helsinki Chamber of Commerce, HR
Committee member, 2012–
Independent of the company and its major
shareholders.
Martti Ala-Härkönen
Member of the Board
b. 1965, DSc (Econ.), Lic.Sc. (Tech.)
Digia Board member since 2016. Member
of the Board’s Audit Committee and
Nomination Committee.
A Member of the Directors’ Institute of
Finland.
Key work experience
Corporation, 2016–
Member of the Board
Member of the Supervisory Board
2020–2021
Independent of the company and its major
shareholders.
DIGIA’S BOARD OF DIRECTORS
30
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Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Digia’s Management Team 31.12.2021
Timo Levoranta
President & CEO
b. 1965, MSc. (Tech.), MSc. (Econ.)
since 1 May 2016.
Key work experience
CEO, TDC Ltd Finland, 2011–2015
Various positions, Consumer Mobile Communication
Division, Telecom Finland Ltd, 1991–1995
Member of the Board
The Finnish Olympic Committee Marketing Ltd, 2021–
Technology Industries of Finland, Deputy Member, 2020–
Kristiina Simola
CFO
b. 1965, MSc. (Econ.)
Digia Management Team member since 14 August 2017.
Key work experience
Senior Manager, Finance Transformation, Deloitte Finland,
2010–2012
Mika Kervinen
General Counsel
Digia Management Team member since 1 May 2016.
Key work experience
Senior Legal Counsel, Fondia Ltd, 2015–2016
Director, Business Support, TDC Finland Ltd, 2012–2014
Nokia Networks Ltd, 2004–2012
DIGIA’S MANAGEMENT TEAM, 31.12.2021
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Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Pia Huhdanmäki
Senior Vice President, HR, Culture & Sustainability
b. 1969, LLM
Key work experience
HR Director/CHRO, Sanoma Media Finland Ltd, 2012–2016
Director – HR, legal and communications, Sanoma News
and Sanoma Entertainment Ltd, 2010–2011
Director – HR, legal and communications, Sanoma
Entertainment Ltd, 2007–2010
1996–2006
Juhana Juppo
CTO and Senior Vice President, Business Services
b. 1971, MSc. (Computer Science)
Digia Management Team member since 19 September
2016.
Key work experience
2013–2016
Service Director, CGI Suomi Ltd, 2011–2013
CTO, Capgemini Finland Ltd, 2005–2011
Jukka Kotro
Senior Vice President, Business Platforms
Technology
Key work experience
Management Team member, various responsibilities, CGI
Sales Director, Central Government, Logica Suomi Ltd,
2006–2010
DIGIA’S MANAGEMENT TEAM, 31.12.2021
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Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Tuomo Niemi
Senior Vice President, Financial Platforms
b. 1962, MSc. (Tech.), MSc. (Econ.)
Digia Management Team member since 1 June 2017.
Key work experience
Managing Director, Accenture Ltd, 2003–2017
Leading Consultant, Accenture Ltd, 1996–2003
Systems, 1992–1996
Sami Paihonen
Senior Vice President, Intelligent Solutions
b. 1974, MSc. (Tech.)
Key work experience
2015–2017
Janne Tuominen
Senior Vice President, Managed Digital Core
Digia Management Team member since 29 March 2021.
Key work experience
2013–2014
Client Director, Logica Suomi Ltd, 2010–2013
Member of the Board
DIGIA’S MANAGEMENT TEAM, 31.12.2021
33
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Corporate Governance
Report by the
Board of Directors
Financial statements
Digia Plc Remuneration Report 2021
Letter to shareholders from the chair
of the compensation committee
Dear Digia Plc shareholders,
The purpose of remunerations paid by the company is
development of shareholder value. I am pleased to pres
the company's Compensation Committee and the Board
of Directors. The Remuneration Report describes how
the company’s performance as well as the remuneration
paid to the Board of Directors and the CEO in 2021.
General observations about Digia’s performance
Compensation Committee
Due to the prolonged coronavirus pandemic, 2021 was
that, we forged ahead with implementing our strategy
and overhauling our selected priorities for 2020–2022.
Digia places particular emphasis on the potential of
data utilisation in its customers' services and business
processes. We believe that value is created in digital
ecosystems, making intelligent and responsible use of
data. As digitalisation progresses, the technology sector
faces now, and also in the future, challenges caused by
strong demand and competition for talent, which are
34
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Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
the industry. However, I am pleased with the company’s
overall performance during the review year. In addition to
its primary task, the Compensation Committee monitors
the development of matters related to the company’s
working culture and employees in particular.
lion. The EBITA margin remained almost unchanged at 11.4
per cent. It has been especially positive and encouraging
fulness of work) have remained at quite a good level. All
From a personnel perspective, Digia aims to be a respon
professionals that combines solid professionalism, a
Strengthening our sense of community and work culture
as well as the continuous development of competence
capital were also major HR priorities in 2021. During the
review period, the company has developed its everyday
working practices to suit the current circumstances,
whole in which hybrid everyday working practices, adapt
ing the work of the future during the period now ended
was our investment in our smart technological growth
platform, Digia Business Engine. We have invested in
competence development in many different ways. These
It should be noted that in early 2021, Digia also published
its updated corporate responsibility priorities and objec
to create a more sustainable society, everyday life and
responsibility is at the heart of successful business – and
in the future it will also be more tightly linked to remuner
ation as well.
On the remuneration of Digia’s management and
The remuneration of Digia’s Board of Directors and senior
Governing Bodies, which has been published on the com
pany’s website. Together with the Remuneration Report,
this policy aims to provide investors with a clear picture
of the overall remuneration of Digia’s governing bodies.
The main idea behind the remuneration policy is that
overall remuneration is based on the company’s perfor
mance, as evident in the weighting and indicators of the
Digia’s previous Remuneration Report – for 2020 – was
presented at the spring 2021 Annual General Meeting. The
advisory vote on the Remuneration Report at the meeting
and 640,411 votes against. On the basis of the votes, the
Annual General Meeting decided to adopt the present
ed 2020 Remuneration Report for Governing Bodies. In
response to feedback from shareholders, we have sought
to take this feedback into consideration in revising the
2021 Remuneration Report.
No major changes occurred in the remuneration of the
company’s Board of Directors and senior manage
ment in 2021. Salary and incentive structures remained
to the remuneration of senior management. A clear
difference compared with the previous year is that no
in 2021 as well.
I am proud of how Digia has grown and developed as
term development of the share price and shareholder
value. We are well poised to keep building the company
and remuneration that incentivises and elicits commit
accordance with our strategy.
Päivi Hokkanen
Chair of the Compensation Committee
REMUNERATION REPORT
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Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Introduction
Summary: Digia's remuneration in the
This Remuneration Report has been drafted in com
amending the Shareholder Rights Directive. The require
in Finland mainly in the Limited Liability Companies
Act (624/2006, as amended), Securities Markets Act
(746/2012, as amended), Decree of the Ministry of Finance
Digia's Board of Directors has approved the Remunera
tion Report on the proposal of the Compensation Com
mittee and the report will be presented to the Annual
General Meeting in spring 2022.
The remuneration of Digia’s governing bodies is based
ies, on which shareholders made an advisory decision
at the Annual General Meeting on 16 March 2020. The
Annual General Meeting unless the Board of Directors
decides to present amendments to the Remuneration
ble on our site: digia.com/en/investors/governance/
.
In general, the purpose of remunerations paid by the
company is to support its business strategy and promote
favourable development of shareholder value. Another
aim is to support the recruitment and commitment of
the best possible people to the company’s governing
bodies. The structure of the remuneration of the compa
need for deviations from the policy or the clawback of
remuneration.
and meeting fees. The amounts of the fees paid depend
ed on the role in question – Chair, Vice Chair and mem
ber of the Board and Chair and member of a committee.
The fees paid are disclosed below in the section “Board
The total remuneration paid to the CEO in 2021 consisted
scheme is on the company’s performance on the annual
level. Despite this, the goal is to set the indicators to also
bonus scheme for 2021 had the following indicators: net
any subsequent share rewards will be paid in spring 2023.
The incentive schemes and the total remuneration paid
to the CEO are described in detail below in the sections
REMUNERATION REPORT
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Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
2017 2018 2019 2020 2021
Dividends paid per share
(according to the year in which the dividend was set)
Market capitalisation
-
2017 2018 2019 2020 2021
Salaries and remunerations (EUR million)
Average personnel during report year (FTE) 954
Average salary costs
(total salary costs divided by personnel average)
2017 2018 2019 2020 2021
Annual remuneration of the Chair of the Board
Development of the remuneration of the Chair of the Board of Directors
Annual remuneration of the other members of the Board of Directors
Development of the remuneration of the other members of the Board of
Number of members of the Board of Directors in the calendar year
(including Chair and Vice Chair)
5 6 6 6 6
2017 2018 2019 2020 2021
payment and partly on previous year)
0 0 0
performance and remuneration 2017–2021
The following section describes the development of the
remuneration paid to members of the Board of Directors
and the CEO as from 2017, compared to the develop
ment of the average remuneration of employees and the
period.
• Regarding the trend in the average salary costs of all
personnel, it must be kept in mind that new recruit
ments, acquired businesses and turnover affect the
development of the average salary. The trend in aver
age personnel salaries at the company outperforms
salary increases set in accordance with collective
•
incentive scheme are primarily the company’s senior
2017 and spring 2020. The shares paid to the CEO are
and CEO" in the table.
REMUNERATION REPORT
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Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
*
-
ings
Member of the Board
Member of the Nomination Committee
Member of the Audit Committee
Santtu Elsinen Member of the Board
Member of the Audit Committee
Member of the Board
Chair of the Compensation Committee
Robert Ingman Chair of the Board of Directors
Member of the Nomination Committee
Member of the Compensation Committee
Seppo Ruotsalainen Vice Chair of the Board
Chair of the Nomination Committee
Chair of the Audit Committee
Outi Taivainen Member of the Board
Member of the Compensation Committee
Total
16
14
12
10
8
6
4
2
0
2017 2018 2019 2020 2021
Trend in operating prot (EBIT)
EUR million
1.8
6.5
9.6
14.1
14.7
Operating profit (EBIT)
+4.3%
+46.2%
+48.6%
+252%
8
7
6
5
4
3
2
1
0
2017 2018 2019 2020 2021
Trend in share price and dividends
EUR
-6.4%
+88.5%
2.35
2.85
3.99
7.52
7.04
+40%
+21.3%
Share price Dividens paid per share
0.16
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0.00
Board remunerations 2021
Remuneration of Digia’s Board of
Directors 1 Jan–31 Dec 2021
The 2021 Annual General Meeting decided on the pay
ment of monthly fees of EUR 3,000 to Board members, EUR
4,000 to the Vice Chair and EUR 5,500 to the Chair for their
at the end of the 2022 Annual General Meeting. In addi
tion, fees of EUR 1,000 to the Chair and EUR 500 to other
members are paid per each Board and Board Committee
meeting. The amounts of Board fees did not change from
the amounts decided at the 2020 Annual General Meet
ing. In addition, Board members will be reimbursed for
The following emoluments were paid to members of
Digia’s Board of Directors for Board and Committee work
180
160
140
120
100
80
60
40
20
0
2017 2018 2019 2020 2021
Trend in net sales
EUR million
112.1
94.5
131.8
139
155.9
Net sales
+12.1%
+5.5%
+17.6%
+18.6%
REMUNERATION REPORT
38
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
CEO’s remuneration 2021
Application of performance criteria and
year
based. Thus, in the total remuneration of the CEO, the
growth.
The total remuneration paid to the CEO in 2021 consisted
second instalment of the 2020 target bonuses was paid
in 2021 (payment in February of the following year, that is,
2021) as well as the target bonus for January–June 2021
(payment in August of the year in question, that is, 2021).
scheme, which is assessed on the basis of successful
performance in the full year 2021, is paid in February 2022.
The bonus component paid for January–June 2021 is
deducted from the realised bonus for the full year.
compensation of the CEO was adjusted in 2021, such that
the Board of Directors decided to allocate 10,000 addi
tional shares to the CEO. During the reward period, the
CEO can, after the allocation of additional shares, earn a
shares and cash in spring 2023. No share rewards were
payable in 2021.
scheme of the CEO were based on the company’s net
personnel satisfaction targets. The same indicators are
used for Digia's other management and the employees
have been set for the full year 2021, but in such a way
that the interim estimate and payment took place after
objectives set for January–June 2021. The bonus paid
deducted from the bonus assessed for the full calendar
year 2021 that will be paid in February 2022. The targets
for customer and personnel satisfaction are annual level
(January–June) and the realisation of the personnel sat
(July–December). All bonus indicators are assessed
bonus assessed at the end of the year would not have
acquisitions is appropriately taken into consideration
regardless of the implementation date of any acquisition.
At the same time, the model accounts for a functional
In 2021, the CEO was paid a total salary (including fringe
es of EUR 126,212.00. The target bonus consisted of the
following realised targets shown below. In addition, the
CEO had the company’s ordinary personnel and fringe
January June December
August
January June December
February August
H1/2020 intermediate target payment
The share paid for H1/2020 is deducted
H1/2021 intermediate target payment
Bonus paid: EUR 54,557.60 Bonus paid: EUR 71,654.40
01–06/2020 intermediate targets
01–06/2021 intermediate targets
REMUNERATION REPORT
39
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Salaries and remunerations paid to the CEO in the
The CEO was paid the following as salary and other ben
(2020–2022 incentive scheme)
No payment in 2021
(payable in spring 2023)
Total
Share-based incentive scheme
2020–2022
scheme. The scheme is designed to align the goals of the
company's shareholders and management in order to
tives. This scheme covers the calendar years 2020–2022
and offers participants the chance to earn company
shares if the targets set by the Board of Directors for the
group of the scheme consists of the CEO and the compa
company's net sales and total shareholder return (TSR).
The earnings period for the net sales and TSR indicators is
three years (2020–2022), and the targets for both indi
period. If the terms are met, the bonuses for both indica
tors based on the new scheme will be paid at the end of
the reward period in spring 2023.
CEO's remuneration structure
Paid 2021
Fixed salary 70.5%
Target bonus 29.5%
Share award 0.0%
900
800
700
600
500
400
300
200
100
0
2017 2018 2019 2020 2021
237
366
431
826
428
CEO's salaries and remunerations 2017-2021
EUR 1,000
9.6
Fixed total salary Short-term incentives
Bonus from the long-term incentive scheme
REMUNERATION REPORT
40
Digia’s direction
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Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
42
Company, markets and business environment
service areas. In uncertain environment, the large share
of the company’s net sales accounted for by continuous
services was a strength, bringing stability to our business.
The company acquired the entire share capital of the
Swedish company Climber International AB on 7 January
2021. The acquisition included Climber’s operations in
Sweden, Finland, Denmark and the Netherlands. Climb
er’s business is largely based on the use of advanced
Qlik technologies and an operating model that strongly
focuses on consulting. After the acquisition, Digia now
integration and business analytics.
In addition, we acquired the entire share capital of
per cent holding in Solasys Oy. Solasys has long served
as a partner in the delivery and development of the Digia
ports our strategy of combining analytics solutions with
development of our new business platform, cloud busi
ness and the working environment of the future.
Company
Digia is a growing software and service company that
business operations in our increasingly networked world.
Digia is your partner for comprehensive digitalisation: we
provide all the layers of digitalisation from business sys
tems to integrations, digital services and 24/7 monitoring
and service management.
2021 was a year of business renewal for Digia. Our major
development projects were our own business platform
(Digia Business Engine), in which we are building a smart
growth platform to support future growth and productiv
ity, and our future way of working (Digia Future of Work).
Both of these projects build a modern organisation and
way of working, a symbiosis of humans and software –
a community where people do meaningful work, while AI
and automation handle routine tasks.
During the review year, we continued implementing our
improvement while bolstering Digia’s future competitive
ness by renewing our operations. In the strategy period,
we emphasise the potential of data utilisation in services
and business processes. As a company, we will advance
for our customers in the development of their business.
Digia seeks growth both organically and through acquisi
seen in the business systems and customised solutions
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Digia 2021
Corporate Governance
Report by the
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Financial statements
43
2021 2020 2019
Extent of business
Net sales
1
213
Average number of personnel
price allocation amortisation
(EBITA)
2
2021 2020 2019
Dividends (paid)
undiluted
3
diluted
3
4
EUR
Dividend payout ratio
Effective dividend yield
3
Lowest share price
Highest share price
Average share price
Market capitalisation
ed weighted average number of shares during the period
was 26,926,305. The number of outstanding shares at the
the company held 97,369 of its own shares.
As alternative performance measures, the Group reports
return on investment, net gearing and equity ratio, which
situation and development of business operations, as
it considers this information necessary for investors.
and
reconciliations in .
1
2
includes the amortisation on the transaction prices allocated to customer
3
4
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Digia 2021
Corporate Governance
Report by the
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Financial statements
44
Net sales
155.9 (139.0) million, up 12.1 per cent on the previous year.
solutions and customised solutions in particular. Growth
was accelerated by acquisitions. Demand for Digia's own
key products, Digia Enterprise and Digia Financial Sys
The service and maintenance business accounted for 67.1
per cent of net sales. The product business accounted for
13.4 (12.9) per cent of the company’s net sales.
per cent.
through the development of operating methods and
has been weakened by strategic development projects
have invested heavily in our smart technological busi
ness platform (Digia Business Engine). The Digia Busi
million during the review period. Our recruitment drive
and efforts to build up the capabilities of cloud platform
solutions have remained strong.
expenditure
On the balance sheet date at the end of 2021, Digia’s
balance sheet total stood at EUR 143.0 (121.1) million and
balance sheet is primarily due to the acquisition of the
Climber Group. Net gearing was 15.7 (17.3) per cent.
in 2020 included a large receivable paid from an individ
Total investments in tangible assets amounted to EUR
investment (ROI) was 16.3 (16.5) per cent, and return on
Report on the extent of research
and development
2019: 6.3), representing 3.9 per cent of net sales (2020:
have been recognised in the result. The main focus of
tion, the Digia Iiris monitoring solution for the continuous
service needs of customers was developed.
More information about Digia’s services and solutions
can be found on the company’s website: digia.com/en/
services.
Personnel, management and
administration
was 1,334 (1,261), an increase of 72 employees, or 5.7 per
cent, on the 2020 average. Digia's Management Team
started their duties.
Skilled personnel who are committed to the objectives of
our customers are the cornerstone of all our operations.
community of top professionals that combines strong
We believe that the seamless interplay between people
and smart software will deepen in the future. Remote and
These trends are also evident in the development of
Digia’s work culture.
demic with the Future of Work project – one of its guiding
in working hours gave Digia employees greater freedom
in scheduling their working hours, taking their work and
life situation into consideration. We also assessed our
package that included an electric table, and also refur
bished our premises to better suit future needs.
Digia’s direction
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Digia 2021
Corporate Governance
Report by the
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Financial statements
45
development. We offered a wide range of training to
ing tailored for Digia. Cloud competence development
remained a key focus area with the provision of training
We implemented training programmes to prepare
students to work in the sector, such as in association
with Academic Work, and stepped up our cooperation
with educational institutions by signing a partnership
agreement with Laurea University of Applied Sciences,
for instance. Digia’s prestigious Career Compass pro
gramme, which is aimed at students, recent graduates
and career changers, started up again at the end of
In late 2021, we once again conducted a Siqni survey to
been at a good level had both risen in spite of the pro
employees.
We continued to develop our corporate responsibility
in cooperation with our personnel. As part of this effort,
Digia employees came up with actions to further reduce
our carbon footprint in the future, for instance. We used
Digia employees’ ideas in our climate roadmap work, that
is, our action plan to minimise climate impacts. Carbon
neutrality is part of Digia’s broader corporate responsi
bility. With respect to social responsibility, we continued
to organise diversity training. In cooperation with Digia
tion plan and its actions. Diversity and getting everyone
involved are key aspects of Digia’s corporate responsibil
ity: our development efforts seek to make Digia an even
more inclusive workplace – a place where everyone can
be themselves. For more information on Digia's corporate
responsibility priorities, objectives and actions, see the
section.
Hokkanen, Robert Ingman, Seppo Ruotsalainen and Outi
Taivainen as members of the Board. At its organisational
meeting after the AGM, the Board of Directors elected
Robert Ingman as Chair and Seppo Ruotsalainen as Vice
Chair of the Board.
On 31 December 2021, Digia’s
Management Team consisted of:
•
•
Sustainability
•
Services
• Mika Kervinen, General Counsel
•
•
•
Solutions
•
•
Core
on the company’s website: digia.com/en/investors/
.
Accountant, has been chief auditor since the 2015 Annual
General Meeting.
Digia employees by location:
31 Dec 2021 31 Dec 2020
employees
Helsinki 726 722 4
Tampere 256
172 170 2
Turku 67 51 16
Rauma 24 24 0
Lahti 15 14 1
Vaasa 10 10 0
Oulu 7 6 1
Stockholm 50 5 45
14 0 14
Hengelo 6 0 6
Total 1,339 1,258 81
Strategy implementation and
business development
digitalisation and continuous change in digital business.
Digia enables its customers to take their digital busi
responsible data utilisation in both services and business
processes comprises an important cornerstone of strat
increasingly important. The core of Digia’s service offering
is a smart and functional package of digital services,
business systems, integrations and analytics. Digia
handles the lifecycle of solutions from development to
maintenance – and also invests in harnessing the oppor
tunities of data and analytics in its own operations.
In the strategy period 2020–2022, Digia seeks annual
improvement is an EBITA margin of 10 per cent by the end
of the strategy period.
Digia’s direction
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Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
46
The focus areas of Digia's strategy to increase customer
1)
Smart data utilisation
all Digia’s service areas from business systems to inte
grations and digital services. We believe that data is a key
element in all of our customers’ operations.
We will deepen our customer relationships and
further strengthen the share accounted for by the
service business.
We will develop our operational models and solutions to
ernisation project in the strategy period will be the
renewal of our own business platform and management
system.
Cloud is the development and operating platform
for future services. We will continue to strengthen our
security and key public cloud platforms.
Skilled employees are the most important success
factor for Digia. We are constantly developing Digia into
a more desirable workplace by reinforcing our culture,
at the heart of which is the continuous learning of every
employee.
Strategy implementation in 2021
in 2021 was the renewal of our own business platform and
management system, the Digia Business Engine. The pro
ject will continue in 2022, the last year of the strategy period.
The aim is to build a constantly evolving smart technology
platform and management system that supports Digia’s
On average, 16 people worked on the project during the
Our Future of Work project focused on the development of
new working and operating methods that combine remote
with their work and management in a hybrid environment.
Among other things, this includes the development of man
agement, tools and work ergonomics at home. In addition,
We bolstered the availability and scalability of competence
network and signing partnership agreements with interna
212 persons in 2021.
At the beginning of 2021, we strengthened our data utili
sation capabilities by acquiring the entire share capital of
Climber International AB. After the acquisition, Digia now
integration and business analytics. Our strategy prioritises
agement. The acquisition of Solasys Oy in autumn 2021 also
supported this aim.
Group structure
Digia operates in eight locations in Finland – Helsinki, Lahti,
the Netherlands. Our headquarters are located in Helsinki.
Finland Oy, Digia Hub Oy, Solasys Oy, Digia Sweden AB and
Climber International AB, with its subsidiaries Climber Fin
Climber Holding AB and its subsidiary Climber AB.
holding.
Group structure
Climber
International AB
Digia Plc
Digia Finland Oy Digia Sweden AB Solasys Oy Digia Hub Oy
Climber Finland Oy
Climber Danmark
ApS
Climber Holding AB
Climber AB
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
47
Share capital and shares
shareholders. Foreign shareholders accounted for 0.4 per
and they held 3.3 per cent of all shares and votes.
Ten largest shareholders on
31 December 2021
Shareholder
Percentage of
shares and votes
Ingman Development Oy Ab
Etola Oy
Etola Group Oy
Matti Savolainen
Rausanne Oy
Kohonen Jorma
Shareholding by number of shares held
on 31 December 2021
Number of shares
Percentage of
shareholders
Percentage of
shares and votes
1–100
101–500
Shareholding by sector on
31 December 2021
Percentage of
holdings
Percentage of
shares and votes
Companies
Households
Financial and insurance
institutions
Foreign holding
of 31 December 2021. The company held about 0.4 per
cent of its capital stock.
shares, previously funded by Digia for use in the incentive
system for key personnel and owned by EAM Digia Hold
ing Oy, remained undistributed.
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
incentive scheme separately. In principle, the target
group consists of the CEO and the company’s senior
the company's shareholders and management in order
objectives.
years 2020–2022. It offers its participants the chance to
earn company shares if the targets set by the Board of
The targets are based on the company's net sales and
total shareholder return (TSR). The earnings period for the
net sales and TSR indicators is three years (2020–2022),
and the targets for both indicators have been set for the
the company’s CEO and other scheme participants are
for both indicators based on the new scheme will be paid
at the end of the reward period in spring 2023. Rewards
under the scheme will be paid as a 50/50 combination of
shares and cash. The cash component of the bonus will
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
scheme. Under certain conditions, the Board has the
option to decide on possible bonuses in accordance with
Digia has an agreement with Evli Awards Management
incentive schemes, their associated share management,
and the payment of incentives to individuals in accord
ance with the terms and conditions of the schemes.
Management ownership
According to the list of shareholders on 31 December
2021, Digia’s Board of Directors and CEO owned shares in
the company as follows (includes the holdings of relat
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
48
Board of Directors
Santtu Elsinen 0
Outi Taivainen
representing 30.10 per cent of all shares and votes.
year
Technology. The company's short name is DIGIA. The low
est reported share quotation in 2021 was EUR 6.30 and the
the last trading day of the year. The share’s trade weight
ed average price was EUR 7.51. The company's market
2021.
Other major events during the 2021
for 2020, released the Board members and the CEO from
liability, determined Board emoluments and auditor fees,
company’s Board of Directors for a new term.
approved the Board's proposal to pay a dividend of EUR
0.15 per share to all shareholders listed in the shareholder
register maintained by Euroclear Finland Ltd on the rec
onciliation date of 19 March 2021. The dividend payment
date was 26 March 2021.
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
mum 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
Helsinki in accordance with the rules and instructions
of Nasdaq Helsinki and Euroclear Finland Ltd, or through
offers made to shareholders. Shares may be acquired in
order to improve the company's capital structure, to fund
or complete acquisitions or other business transactions,
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, corre
tation 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
September 2022.
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
Companies Act) in one or more instalments, as follows:
authorisation applies both to new shares and to treasury
shares held by the company. The authorisation may be
used to fund or complete acquisitions or other business
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 and its
payment in cash or (partly or wholly) in capital contribut
ed in kind or its being written off against the subscriber's
receivables, and its recognition in the company's balance
sheet. This authorisation will supersede the authorisation
months, that is, until 17 September 2022.
More information about the AGM’s decisions is
available at digia.com/en/investors/governance/
.
Business combinations
signed an agreement to acquire the entire share capital
of Climber International AB. The terms and conditions for
the completion of the transaction were met on 7 January
2021, and Climber International AB was transferred to
Digia’s ownership. Climber International AB is a Swedish
company that provides its customers with consulting and
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Digia 2021
Corporate Governance
Report by the
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Financial statements
49
The acquisition included Climber’s operations in Sweden,
Finland, Denmark and the Netherlands. Climber continued
as a subsidiary with its own brand. After the acquisition,
Digia now employs a total of more than 300 professionals
Smart and responsible data utilisation is one of the main
focal points of Digia’s strategy. The acquisition of Climber
has accelerated growth in Digia’s data and analytics
business, primarily by providing access to markets out
side Finland.
Digia acquired the entire share capital of Solasys Oy on 1
ing in Solasys Oy. Solasys has long served as a partner
in the delivery and development of the Digia Enterprise
reporting and analytics. The acquisition supports the
company’s strategy of combining analytics solutions with
Events after the balance sheet date
Risks and uncertainties
According to the company’s estimate, there have been
no great changes in Digia’s major risks in 2021. The com
pany’s risks and uncertainty factors relate to increasing
company’s operating environment and service areas.
General economic trends and changes in customers’
have an unfavourable impact on the company’s busi
term demand in Digia’s business environment as a result
of the coronavirus epidemic.
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 provid
product licenses.
Implementing the growth strategy will place demands on
both the organisation and its management. The compa
ny’s ability to recruit, maintain and develop the correct
competence – and also to adapt the offering to meet
demand at the right time – 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 suc
cessfully integrating them. Human rights and environ
mental risks are described in the
section.
particular – involve both business opportunities and risks.
As customer projects increase in size, the risks associated
ery packages. Large customer projects typically involve
poses a risk. Risks related to customer receivables are
also growing. In addition, data security and protection
business operations.
Outlook for 2022
Markets and business environment
favourable development in demand during 2022, even
though the coronavirus pandemic will continue to gen
erate uncertainty in our operating environment in the
short term. Digitalisation will accelerate after the crisis.
are changing the world permanently – and competition
is tightening in every industry. Renewal is continuous.
Organisations' value creation models and people's work
ing methods are evolving.
Harnessing technology is a key tool in renewing our cus
tomers’ business and enhancing competitiveness in both
the public and private sectors. This is a strong trend. Our
customers’ needs dovetail into three main areas: digital
business, leading with data, and operational continuity
business.
Digia believes that modern business digitalisation is
built on four robust cornerstones – and data utilisation is
strongly linked to all of them:
•
•
•
• Seamless interplay between people and smart
software.
The development of modern digital business is supported
successfully met market demand and has also demon
During the pandemic in particular, our strength has lain in
having a broad variety of solutions for operative systems
of the pandemic, many organisations have woken up to
assessing their own operations and renewal, especially
with respect to how data utilisation and digital solutions
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
50
In the future digital world, Digia believes that corporate
business value will be generated through the smart
utilisation of data in networks and ecosystems. Data uti
lisation is becoming an increasing part of daily business
life. At the level of companies' internal operations and
individuals, we are moving towards a symbiosis between
humans and software, where people focus on meaningful
tasks while automation and smart software handle part
of the work.
Digia sees the following strengthening trends in the mar
ket both in the business and public sector:
• Digitalisation is an increasingly important part of
the core operations of organisations and business
• The world is becoming networked, and digital platforms
• Smart and responsible data utilisation in business pro
•
• The role of cloud technologies as a platform for devel
• Data utilisation leads to further increases in data secu
rity and protection requirements.
net sales.
Board’s dividend proposal
According to the balance sheet dated 31 December
Directors will propose that a dividend of EUR 0.17 per share
in the shareholders’ register maintained by Euroclear
Finland Oy on the dividend reconciliation date, 23 March
2022, will be eligible for the payment of dividend.
Dividends will be paid on 30 March 2022.
connection with its annual reporting. The report complies
information in accounting legislation.
In this report, the following topics are dealt with in com
pliance with the requirements of the Accounting Act:
Accounting Act requirement Location in this report
Description of business model Business model
Environmental issues Sustainable digital life
HR matters and social
responsibility
Sustainable digital life
Human rights
Sustainable digital life
Sustainable digital life
Business model
Digia is a software and service company whose service
offering covers all layers of digitalisation: digital servic
utilisation and analytics solutions, and cloud environments.
We ensure the business and customer orientation of our
implementations through consulting and service design.
24/7 and are continuously developed.
In 2021, Digia comprised four service areas: Intelligent
page 12.
Digia primarily operates in Finland, and also has business
in Sweden, Denmark and the Netherlands. Digia has a
broad customer base that includes organisations of var
ious sizes in different sectors. In 2021, we employed 1,339
which consists of more than 2,000 freelance professionals
in Finland and more than 10,000 within the EU.
Principles and management of
responsibility at Digia
Digia’s operations are governed by the Finnish Limited
Liability Companies Act, regulations concerning publicly
listed companies, the rules and regulations of Nasdaq
Helsinki Oy, and Digia’s Articles of Association. Operations
are also guided by the policies and operating principles
approved by the Board of Directors or 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 committed to
respecting human rights in accordance with the UN’s
Universal Declaration of Human Rights and the Interna
tional 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.
In addition, we closely monitor Finnish and international
corporate responsibility regulation and develop our cor
porate responsibility proactively.
Respect for human rights is also part of Digia’s ethical
operating culture. In 2021, we initiated systematic work on
human rights, which will continue in 2022. This effort aims
to identify and assess Digia’s major human rights risks
and ensure that its commitments and practices support
the realisation of human rights responsibility.
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51
Digia’s corporate responsibility efforts are guided by the
following key policies and principles:
• Code of Conduct
•
•
• ISO 9001 quality management system
• Environmental policy
• Disclosure policy
The CEO is responsible for corporate responsibility and
for responsibility reporting. The corporate responsibility
working group heads operational responsibility efforts,
HR, Culture and Sustainability is the chair of the working
group and is responsible to the Management Team. The
Management Team monitors the development of key
indicators of corporate responsibility. Digia's corporate
responsibility objectives and indicators as well as this
report are approved by the Board of Directors.
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Sustainable digital value for our customers while building a functional society
Topic Objective 2021
Solutions that promote the responsibility of
our customers
Improving the responsible use of data
Growth in data protection impacts and securi
amples*
See description on
of services
society
Solutions that enhance environmental and
social responsibility for society and our
customers
Description of the solutions and their sustaina
ble development impacts*
See description on page 54
Sustainable digital expertise for both our personnel and Finland as a whole
Topic Objective 2021
Employees for whom a learning target has
meet both our own needs and those of the
sector as a whole
nal and internal training programmes as well
as trainees and students working on theses*
65
52
Focus areas, objectives and key indicators of
Digia’s corporate responsibility
the end of 2022.
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Sustainable digital life in our own work with respect for the environment
Topic Objective 2021
Among the best in the sector in occupation
al wellbeing
Satisfaction with team spirit 73
Digia fosters diversity and inclusion at
different levels of the organisation
Age and gender distribution of the Manage
and personnel**
to promote diversity and inclusion *
Reducing CO
2
emissions CO
2
emissions*** See 2021 calculation on page 59
Ethical operating culture
Entire organisation has adopted ethical
ways of working
Conduct training*
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Sustainable digital value for our
customers while building a functional
society
in which our society is developing. By ensuring that our
solutions for customers are functional, accessible, secure
and easy to use, we also promote the responsible digital
isation of society.
Digia aims to act as a technological pioneer whose
products and services promote the positive development
and wellbeing of society and the environment. The most
important sustainability topics in the “sustainable digital
sibility of our customers and the sustainable digitalisation
of society.
responsibility programme. In this programme, Microsoft
partners commit to promoting the positive impacts of
Microsoft technologies to society and to make even
greater outlays on the development of digital skills,
responsible AI, equality and environmentally friendly
solutions. We were also recognised as a Nasdaq ESG
and efforts in ESG themes.
Solutions that promote the responsibility of our
customers
We seek to implement our customer solutions so that
they promote our customers’ responsibility. We aim to
improve the responsible utilisation of data. To this end, we
monitor and report on the annual growth in data protec
tion impacts and security analyses in customer orders
increase is due to both growth in the number of commis
sions and the trend in reporting accuracy.
Data security and protection are also included in Digia’s
level of data protection and security by training our
personnel, administrative and technical controls, audits,
and continually developing processes related to data
protection and security. Each Digia employee familiarises
themselves with data security and protection procedures
as part of their induction. In 2020, we renewed our internal
data security and data protection training package. This
training must be retaken every year, not only by Digia
personnel but also any subcontractors working on Digia’s
completed all sections of the training package.
We also provide our customers with services that meet
particularly high data security/protection levels both on
audited (Facility Security Clearance) premises.
We also seek to proactively promote the ethical utilisa
tion of data through various measures. In 2021, we held
two webinars for our customers and others interested in
signed up for these webinars. In addition, in association
with Sitra, we published an article in Kauppalehti on the
responsible utilisation of data and spoke about the topic
at the Shift Business Festival 2021 in August.
In addition, we aim to improve the accessibility and
monitor and report on the growth in accessibility design
sons behind this decrease is normal variation in customer
demand.
Promoting the sustainable digitalisation of society
ent ways. In addition to customer work, we seek to con
tribute to building solutions that enhance environmental
and social responsibility for society and our customers.
in 2021 in which the solution served to enhance environ
mental or social responsibility:
Visit Finland, part of Business Finland, has developed
the Sustainable Travel Finland (STF) programme, which
promotes sustainable travel and provides companies in
the sector with a development path for sustainable travel.
BI report for Business Finland’s site, enabling visitors to
see which companies have been granted the STF label
category, for instance. This evolving report will provide
valuable information about the state and development of
to it.
Digia integrated a carbon footprint calculation app
been able to see their production results in the online
service. Now, this information has been rounded out with
the inclusion of carbon footprint data into the dairy’s sys
tem, where it is available to producers along with animal
welfare information.
Mobile is the crucial user interface for mobility services
in Greater Helsinki, and HSL’s mobile app has established
its position as one of Finland’s most popular apps in just
a couple of years. As HSL’s partner, Digia is responsi
ble for developing and maintaining the app. As part of
the development of the application, a feature that was
already included in the browser version was added to
transport route, it also displays a suggested walking or
improving air quality in cities.
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Digia's tax footprint
ees, shareholders and society are part of Digia’s social
We comply with local legislation on the payment, collec
Digia has a statutory obligation to either pay or collect.
payments paid on employee salaries.
Taxes and tax-like payments
2021 2020
Social security contributions
Total 58,172 55,959
Around 31.4 per cent of Digia’s shareholder base consists
of Finnish households. In addition, our largest share
Annual General Meeting of 17 March 2021 decided to pay
a dividend of EUR 0.15 (0.10) per share. The dividends were
paid on 26 March 2021 and totalled EUR 4,001,719.
Sustainable digital expertise for both our
personnel and Finland as a whole
Skilled personnel who are committed to the objectives of
our customers are the cornerstone of all our operations.
Digia aims to be a desired employer in the technology
sector – an employer that supports personnel wellbe
ing and competence development. The most important
focus area are providing a learning community for top
Finland.
A learning community for top digital experts
Changes in the operating environment and society affect
future. We want to be a team of top professionals who are
We create opportunities for employees to pursue career
paths and personal development and to maintain their
competence at a competitive level. For instance, Digia has
active workplace tribes, whose major task is to develop
the competence of the tribe members through peer activ
technology policies in the specialist area of the tribe.
tise during their term of employment. At the annual level,
we monitor and report on the percentage of employees
for whom a personal competence target has been set. In
2021, a personal competence target had been set for 74
per cent of Digia employees.
selected areas. In 2020 and 2021, we chose to focus on
cloud, which is one of Digia’s strategic priorities. In 2021,
cially in Microsoft Azure.
Bolstering technological expertise in Finland
operator in the IT sector. That’s why we also have a
to meet both our own needs and those of the sector as
a whole. To achieve this objective, we monitor and report
on the total annual number of participants in training
programmes organised by Digia alone or in cooperation
with partners as well as trainees and students working on
theses. In 2021, the total number was 65 (65).
In addition to training programmes, Digia engages in
cooperation with educational institutions to support and
round out their offering of IT courses. In 2021, we organ
coding club, in cooperation with educational institutions
and student organisations.
Sustainable digital life in our own work with
respect for the environment
Digia wants to provide a safe and healthy working envi
ronment in which everyone is valued as themselves.
personnel are Digia's direct impacts on personnel, social
responsibility and human rights. They are also issues that
affect Digia’s reputation as an employer and improve its
top professionals. Digia’s employee turnover in 2021 was
The most important responsibility topics in the “sustain
culture.
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Employee well-being and diversity
Continually monitoring and supporting personnel well
among other things, ensuring a workload suitable for the
life situation of the employee, a coaching leadership style
and support for developing one's own competence. Digia
uses an early intervention model that supports success at
Due to the coronavirus pandemic, Digia employees con
tinued to work mainly remotely. For this reason, strength
ening our sense of community emerged as a particularly
important theme. During the year, we held a variety of vir
tual personnel meetings to bolster sense of community.
daily life and a model for hybrid work based on employ
ees’ wishes. On the basis of our personnel’s wishes and
better meet future needs. Employees who primarily chose
remote work also received support in the form of a home
table and a work chair.
Together with these partners, we also offered webinars
to employees and supervisors on a variety of themes
concerning coping at work.
Our goal is that Digia is one of the best companies in
and report on the annual average days of sick leave per
employee. In 2021, sick leave per employee averaged 5.6
days (5.1).
In addition, we monitor and report on our employees’
a personnel survey. We aim to maintain this at a good
spirit was 73 on a scale of 0–100 (75) and satisfaction
our Code of Conduct, and we treat all employees equally
tation and other such factors.
tion survey to gain a better understanding of how Digia
employees feel that these themes are realised at the
company. Digia employees praised aspects such as the
arrangements. They also highlighted the wide age range
retire every year, too.
and also requested feedback on it from our employees.
opment measures that are important to us and which
we will tackle in 2022. These priorities include fostering a
are not native Finnish speakers and encouraging women
to enter the IT industry.
The diversity of the company and its inclusive, apprecia
of Digia employees and their ability to renew themselves.
We aim to ensure diversity and inclusivity at all levels of
our organisation. We monitor and report on the gender
and age distribution of all employees, the Management
Team, supervisors and the Board of Directors at an annu
al level.
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Gender and age breakdown of management
and personnel in 2021
Men 70.9%
Women 29.1%
Other 0%
Personnel distribution by gender 31 Dec
Percent
Personnel distribution by age 31 Dec
Percent
< 30, 7.4%
30–39, 26.3%
40–49, 37.8%
50–59, 22.5%
60≤, 6.0%
Men 77.8%
Women 22.2%
Other 0%
Group Management team distribution
by gender 31 Dec
Percent
Group Management team distribution
by age 31 Dec
Percent
< 30, 0%
30–39, 0%
40–49, 22.2%
50–59, 66.7%
60≤, 11.1%
Men 69.3%
Women 30.7%
Other 0%
Supervisor distribution by gender 31 Dec
Percent
Supervisor distribution by age 31 Dec
Percent
< 30, 0.8%
30–39, 13.4%
40–49, 52.0%
50–59, 31.5%
60≤, 2.4%
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Men 67%
Women 33%
Other 0%
Board of Directors distribution
by gender 31 Dec
Percent
Board of Directors distribution by age 31 Dec
Percent
< 30, 0%
30–39, 0%
40–49, 16.7%
50–59, 33.3%
60≤, 50%
Every year, we organise training and online meetings
to promote diversity, equality and inclusion (DEI) for
management, supervisors and personnel. Digia is also
a member of the Inklusiiv community, which shares
information, provides training and promotes equality in
working life. We monitor and report on what percentage
of our supervisors have completed DEI training each year.
policy. It states that the requirements of the company’s
ed in the Board’s composition. Both genders should be
represented on the Board. More information about the
page 23.
Carbon-neutral Digia
Information and communications technology (ICT) is
part of society’s critical infrastructure today and in the
future. We all who operate in this sector also play a key
role in reconciling society’s activities with the climate and
nature's carrying capacity.
launched climate roadmap work, which we completed in
January 2022. The climate roadmap includes a compre
our climate objectives until 2030. We have been carbon
neutral in our own operations since 2020 and our objec
tive is to be carbon neutral throughout the entire value
chain by 2030. We also seek to cut emissions by 75 per
cent from the 2019 baseline by 2030. We compensate for
the remaining emissions in a reliable manner.
The climate roadmap action plan also includes Digia’s
carbon handprint – that is, how we can promote the
positive climate impacts we produce for customers and
stakeholders. Digia has the opportunity to accelerate
the ecological renewal of society by producing digital
solutions and data for solving sustainability challenges.
the section “Sustainable digital value for our customers
In addition to our work on the climate roadmap, we
updated our environmental policy in 2021 – it is based
on compliance with legislation and the UN’s Sustainable
Development Goals, as well as on active monitoring and
development of recommendations and practices appli
cable to the industry Digia operates in. Our environmental
responsibility is guided by three principles that indicate
how Digia takes responsibility for the climate and nature:
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
3. We accelerate the ecological renewal of society
Read our updated environmental policy on our site: digia.
.
tion to promote measures taken in accordance with our
environmental policy and action plan to improve Digia's
environmental responsibility and reduce our emissions.
The largest environmental impacts of Digia’s operations
work typically poses a very low risk of environmental
damage.
We monitor and report our CO
2
emissions for our own
operations and the entire value chain at an annual level
emissions. The calculations cover all of Digia Finland Oy’s
locations and employees.
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Digia's carbon footprint 2021
Percent
Travel, 9%
Premises and data
centers, 34%
Equipment and
recycling, 16%
Other procurements, 40%
1,210 t
CO
2
e
2019 2020 2021
Digia's carbon footprint
Tonnes CO
2
e
2019 2020 2021
1,210
1,510
3,050
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Premises and data centers
Travel
Equipment and recycling
Other procurements
The carbon footprint of Digia’s own operations (Scope 2)
in 2021 was 386 tonnes CO
2
-
2
2
-
-
-
-
Carbon footprint indicators 2019 2020 2021 Unit
Carbon footprint of own opera-
tions (Scope 2)
343 386 tonnes CO
2
e
Carbon footprint of the entire
tonnes CO
2
e
tonnes CO
2
2
Carbon footprint (t CO
2
e) 2019 2020 2021
360 420
240 110
680
Total* 3,050 1,510 1,210
-
footprint.
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Ethical operating culture
Compliance with Digia’s Code of Conduct is an essential
aspect of our company’s success. All of our personnel,
including management and the Board of Directors, are
responsible for complying with these principles in their
work.
Our goal is for our entire organisation to internalise and
comply with these ethical practices. We monitor and
report on how many of our employees have completed
training on the Code of Conduct each year. In 2021, 46.9
per cent of the personnel had completed this training.
In 2022, we will develop the training further. This Code of
Conduct also applies to Digia’s subcontractors. By the
end of 2021, 67 per cent of our subcontractors had signed
and legal activities. We updated the policy during 2021.
Digia's operations and business areas do not pose a high
more, the operations of Digia Group companies mainly
corruption according to Transparency International.
public procurements and the share of Digia’s customers
accounted for by public administration. . In public pro
ruption measures during its participation and instructs
participating persons to be very careful to ensure that
operations are appropriate.
Digia has foreign partners in countries where the risk of
bribery and corruption is high. We pay attention to bribery
also require our partners to commit to compliance with
All Digia Group companies have undertaken to comply
have shown them to be at least at the same level. In
addition, the employees of Group companies are pro
vided with appropriate training on these themes. The per
to counselling and whistleblowing channels through
interest, whether their own or of other persons participat
ing in a tender process, for instance. They have received
guidance on the use of these channels.
Digia has a channel through which any Digia employee
related to bribery and corruption. These reports can
also be made anonymously. All reports are directed to
Digia’s legal unit and the Audit Committee of the Board
channel can be found on Digia's website: digia.com/en/
.
The mechanism used for Digia’s whistleblowing pro
Directive (EU 2021/1937) and its national implementation
provisions. The intention is to introduce a fully anonymous
personnel can report on activities that are in contraven
Code of Conduct.
Development and assessment of responsibility
The topics, objectives and key indicators of responsibility
reported on here comprise Digia’s responsibility reporting
for 2020–2022. In 2022, our development priorities will
be to further promote an ethical operating culture and
human rights impact assessment, and to develop envi
ronmental responsibility in accordance with the climate
roadmap. In the development of our responsibility efforts,
environment, corporate responsibility regulations and
human rights.
In addition to our own internal assessment, Digia’s
EcoVadis assessment of corporate social responsibility
(CSR) indicates how well a company has integrated CSR
principles into its business and management system.
The assessment delves into questions on CSR that are
grouped into four themes: the environment, labour and
human rights, ethics and fair business practices, and
sustainable procurement.
In 2021, Digia received a rating of 56/100 from EcoVadis
environmental matters in particular. We intend to main
tain our assessment at a good level and improve our
operations on the basis of the development proposals
made during assessment.
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Business in accordance with the
EU Taxonomy
pany’s business operations belong to any of the sectors
ness operations of the company in light of the criteria of
the company operates in the Information and Communi
cation sector, but did not provide any services of the kind
Even though Digia does not yet report on operations in
amount of projects and services for its customers in 2021
that have a direct impact on both climate change miti
gation and contribution to climate change adaptation in
the operations of its customers. In addition, some of these
systems is to optimise production and service. Optimis
ing processes reduces wastage, energy consumption,
mitigating and adapting to climate change in the opera
tions of our customers.
On the other hand, we accelerate the ecological renew
al of society by providing digital solutions and data to
implementations that sustainably promote the digitalisa
tion of society are presented in the section
.
In general, the company is widely involved in building
and deploying new technologies, tools and systems to
sustainability challenges, data is required for feedback
on both decisions and the success of actions and to
ensure effective management. The data indicates where
resources are wasted and where unnecessary emissions
are produced.
Digital solutions can also be helpful in cultural changes in
society – they facilitate adopting an ecological lifestyle,
for instance. The technology and the operations of the
the solutions that it provides, Digia helps its customers
to understand their own operations and make conscious
changes towards improving them.
In addition, Digia has provided a wide range of services
other than climate change for both the customer and
society.
Share of business covered by
Share of business not covered by
Net sales 0 0 100
0 0 100
0 0 100
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62
Financial Statements
63 Main statements in the consolidated
67
General information
71
78 Human resources
80
81
87 Other items
92
reconciliations
94
101
102
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Financial statements
1 Main statements in the consolidated
Note 1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
Net sales
155,939 139,049
445 252
-21,674 -15,257
-7,485 -6,066
-99,063 -90,597
-13,482 -13,279
-141,260 -124,947
14,680 14,102
540 84
-646 -728
-107 -644
14,573 13,458
-2,801 -2,830
11,772 10,627
0.44 0.40
0.44 0.39
11,758 10,627
14 0
1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
11,772 10,627
-198 80
Total comprehensive income 11,574 10,707
11,560 10,707
14 0
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Note 31 Dec 2021 31 Dec 2020
ASSETS
Non-current assets
Goodwill
71,915 61,478
10,875 6,332
686 987
6,969 9,272
484 484
538 2
640 513
Current assets
32,785 25,600
18,148 16,410
Total assets 143,040 121,078
Note 31 Dec 2021 31 Dec 2020
Equity attributable to parent-company
shareholders
2,088 2,088
5,204 5,204
42,081 42,081
Translation difference -541 -343
7,468 1,080
11,758 10,627
interests
68,072 60,737
Non-current liabilities
1,877 1,115
0 0
16,000 8,626
4,354 6,657
2,324 2,000
Current liabilities
21,156 13,070
985 790
1,234 1,383
18,580 15,041
3,431 3,431
5,026 8,226
Total liabilities 74,968 60,341
143,040 121,078
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Note 1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
11,772 10,627
9,398 16,057
-3,204 2,815
2,517 -1,684
-299 -457
43 32
-3,580 -3,801
16,648 23,589
-1,768 -1,268
-9,933 -3,591
5 10
1,573 -
- 60
-10,124 -4,789
Note 1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
4,085 3,019
-9,726 -2,326
Withdrawals of current loans
3,000 -
-271 -
Withdrawals of non-current loans
10,900 -
-630 -301
-4,002 -2,672
-4,814 -8,317
Change in cash and cash equivalents 1,710 10,482
Cash and cash equivalents at beginning of period 16,410 5,838
1,710 10,482
28 90
Cash and cash equivalents at end of period
18,148 16,410
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1.5 Changes in shareholders’ equity
EUR 1,000 Notes
Share
capital
Unrestricted
shareholders’
equity reserve
Other
reserves
Translation
difference
Retained
earnings
Total
shareholders’
equity
Shareholders’ equity,
1 Jan 2020
Comprehensive
income
Net prot (+) / loss (-)
1.1 10,627 10,627
Other comprehensive
income items
1.2 - - - 80 - 80
Total comprehensive
income - - - 80 10,627 10,707
Transactions with
shareholders
Share-based
transactions settled in
equity
4.4 - - - - -188 -188
Dividends - - - - -2,672 -2,672
Acquisition of treasury
shares
Transactions with
shareholders, total -3,161 -3,161
Shareholders’ equity,
31 Dec 2020 2,088 42,081 5,204 -343 11,707 60,737
EUR 1,000 Notes
Share
capital
Unrestricted
shareholders’
equity reserve
Other
reserves
Translation
difference
Retained
earnings
Total
shareholders’
equity
Shareholders’ equity,
1 Jan 2021
Comprehensive
income
Net prot (+) / loss (-)
1.1 11,758 11,758
Other comprehensive
income items
1.2 - - - -198 - -198
Non-controlling
interests
- - - - 14 14
Total comprehensive
income - - - -198 11,772 11,574
Transactions with
shareholders
Share-based
transactions settled in
equity
4.4 - - - - 392 392
Dividends - - - - -4,002 -4,002
Acquisition of treasury
shares
Transactions with
shareholders, total -4,239 -4,239
Shareholders’ equity,
31 Dec 2021 2,088 42,081 5,204 -541 19,240 68,072
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2 General information
2.1 Basic information on the Group
1,300 of us working at Digia. Our roots are in Finland , and we
work with our customers both in Finland and abroad. We are
building a world in which digitalisation makes a difference –
together with our customers and partners.
The company’s strengths are its good customer base, extensive
product and service offering, 24/7 maintenance and support, and
the credible size of its business. Based on these strengths, Digia
can serve as a trusted partner to its customers in their
digitalisation transformation. We forge long-term customer
relationships and develop them to grow with our customers.
Digia operates in eight locations in Finland – Helsinki, Lahti,
Jyväskylä, Oulu, Rauma, Tampere, Turku and Vaasa – as well as
in Stockholm and Malmö in Sweden, and Hengelo in the
Netherlands. The company is listed on Nasdaq Helsinki (DIGIA).
2.2 Approval by the Board of Directors
The Board of Directors approved the financial statements
for publication on 8 February 2022. According to the
Finnish Companies Act, shareholders have the right to
approve or reject the financial statements at the General
Meeting held after publication. The General Meeting may
also decide to revise the financial statements. Digia Plc ’s
Annual General Meeting will be held on 21 March 2022.
2.3 Accounting policies
-
-
-
sidiaries are consolidated using the acquisition method,
-
rounded to the nearest thousand euro, which means that
-
-
-
-
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Accounting policy Note
Goodwill
Goodwill
-
-
-
-
Accounting estimates and judgements applied in the preparation of the
-
Note
Leases
and
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Covid-19-Related Rent Concessions beyond 30 June
Leases
-
-
Financial InstrumentsFinancial
Instruments: Recognition and Measurement
Financial Instruments: DisclosuresInsurance
ContractsLeases-
-
-
Provisions, contingent liabilities and contingent assets
-
2018–2020
and less urgent changes to the standards are gathered
• First-time Adoption of International Financial
Reporting Standards
• Financial Instruments
-
-
• Leases
-
-
• Agriculture-
-
Fair Value Measurement
-
Property, Plant and Equipment — Proceeds before
Property, Plant
and Equipment
-
er with the manufacturing costs associated with the
Business Combinations
Insurance Contracts
Financial InstrumentsRevenue from Contracts
with Customers
-
Presentation of Financial State-
ments*
69
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
1 Presentation of Financial Statements
Statement 2 Making Materiality Judgements*
Accounting Policies, Changes in Accounting
Estimates and Errors*
-
Income Taxes*
-
-
Insurance Contracts: Initial Application of IFRS 17 and
IFRS 9*
-
-
and its Associate or Joint Venture – Amendments to
Consolidated Financial Statements and IAS 28
Investments in Associates and Joint Ventures*-
Business Combinations
70
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
3.1 Reportable segments
-
Finland
Other
countries Total
net sales
3.2 Net sales
-
-
Accounting principle – recognition in net sales
-
3 Financial development
200
150
100
50
0
2017 2018 2019 2020 2021
156
139
132
112
96
Net sales
EUR million
71
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
-
-
-
-
-
-
-
-
Third-party products
-
-
-
-
Services
-
recognised as revenue over time
-
-
-
-
3.3 Provisions
2021 2020
1 Jan
31 Dec
72
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Accounting principle – provisions
-
3.4 Other operating income
2021 2020
Other income
Total 445 252
Accounting principle – government grants
are recognised in the income statement at the same
-
3.5 Acquired business operations
Business operations acquired during the 2021
-
-
-
-
-
-
Total fair values of the acquired businesses on the
Total assets 11,698
Total liabilities 8,522
Goodwill
-
-
73
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
-
Business operations acquired during the 2020
-
-
-
-
Total fair values of the acquired businesses on the
Total assets 2,275
Total liabilities 711
Goodwill
-
-
-
Accounting principle – business combinations
-
-
74
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Fair values of net assets acquired in business combina-
tions and additional purchase prices
-
3.6 Depreciation, amortisation and
impairment
2021 2020
31
Total 7,485 6,066
Total depreciation and amortisation 7,485 6,066
-
2021 2020
Total 13,482 13,279
-
Auditors’ fees
2021 2020
1
Total 157 109
Research and development costs
2021 2020
Total 6,103 5,956
-
75
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
2021 2020
-335
Total 2,801 2,830
2021 2020
11 -
-51 -3
Other items
-
Total 2,801 2,830
Taxes in the income statement 2,801 2,830
1 Jan 2021
Recognised
in income
statement
Acquired
business
operations
31 Dec
2021
-
Other items 33
Total 513 82 45 640
1 Jan 2021
Recognised
in income
statement
Acquired
business
operations
31 Dec
2021
acquisitions
Other items -
Total 1,115 -488 1,249 1,877
1 Jan
2020
Recognised
in income
statement
Acquired
business
operations
31 Dec
2020
- -
Other items -
Total 558 -45 - 513
1 Jan
2020
Recognised
in income
statement
Acquired
business
operations
31 Dec
2020
acquisitions
Total 1,250 -380 245 1,115
-
-
76
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
3.10 Earnings per share
2021 2020
Accounting principle – earnings per share
-
77
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
4 Human resources
Group personnel on average
during the period 2021 2020
Total 1,334 1,261
2021 2020
Total 99,063 90,597
-
4.2 Pension liabilities
Accounting principle – pension liabilities
-
4.3 Personnel remuneration
4.4 Share-based payments
-
ed through these arrangements are measured at fair
-
shareholders and management in order to increase the
-
-
78
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
share-based
incentive scheme
2020–2022
share-based
incentive scheme
2020–2022
Granting date
requirement
requirement
1 11
-
President and CEO's
share-based
incentive scheme
2020–2022
Key personnel's
share-based
incentive scheme
2020–2022
-
- -
Accounting principle – share-based incentive
scheme
-
-
own shares are recognised as deductions in sharehold-
-
on 2021 consolidated result
Effect on earnings
President and CEO's
share-based
incentive scheme
2020–2022
Key personnel's
share-based
incentive scheme
2020–2022 Total
shareholders'
Comparison data for 2020
Effect on earnings
President and CEO's
share-based
incentive scheme
2020–2022
Key personnel's
share-based
incentive scheme
2020–2022 Total
shareholders'
79
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
-
2021 2020
Total -3,204 2,815
5.2 Accounts payable and other liabilities
2021 2020
Total 21,156 13,070
Accounting principle – accounts payable and other liabilities
80
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
6 Capital structure
6.1 Capital management and net liabilities
-
-
2021 2020
-
sented in
6.2 Financial assets
2021 2020
agreements
Accounts receivable and other
receivables 33,963 26,115
2021 2020
Total 26,618 22,115
-
Other shares and holdings 31 Dec 2020 Change 31 Dec 2021
Other shares total
Total 484 0 484
-
81
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Accounts receivable and receivables from
customers on long-term projects
-
Balance sheet
credit loss
Credit loss
provision
3
1
Total 26,618 31
customer contracts
-
Cash and other cash equivalents
2021 2020
Fair value
hierarchy level
-
Total 22,648 19,410
Accounting principle – cash and cash equivalents
6.3 Financial liabilities
31 Dec 2021
31 Dec 2020
Credit facility
82
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
2021
Fair values
2020
Fair values
2021 Balance
sheet values
2020 Balance
sheet values
Fair value
hierarchy level
3
3
Total
Current
3
3
Total
Total
2021 2020
-
Total 28,811 15,284
Less than
Total 34,971 35,650 14,874 7,457 13,319
Less than
Total 31,801 32,093 16,649 4,760 10,685
-
1 Jan
Changes in leases 31 Dec
Non-current interest-bearing
nancial liabilities including a
current component
Total 26,889 302 1,594 28,785
83
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
1 Jan
Changes in leases 31 Dec
Total 28,375 -5,063 3,577 26,889
53
-
6.4 Lease liabilities
31 Dec 2021 31 Dec 2020
Long-term
Lease liabilities, total 7,785 10,089
Maturity distribution
Commitments to future agreements
Contingent liabilities
2021 2020
84
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Financial income
2021 2020
31
5
Total 540 84
2021 2020
3
Loan administration fees
Total 646 728
-
-
-
-
-
-
85
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
6.7 Shareholders’ equity
Number of
shares
Share capital
Number of
shares
Share capital
Reserves
-
-
-
Dividends
Accounting principle – dividends
Calculation of the parent company Digia Plc’s
distributable funds, 31 Dec
2021 2020
Total 61,824 56,922
86
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
7 Other items
-
-
2021
2020
Goodwill is recognised from the acquisition as the differ-
»
»
»
-
assets Other items
Balance
sheet value
of assets
subject to
total
-
Sensitivity analysis
-
-
-
-
87
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Accounting principle – impairments
-
7.2 Property, plant and equipment
2021
Right-of-use
assets
Buildings and
structures
Machinery and
equipment
Other
tangible
assets Total 2021
11
1
Decreases - - -
31
2020
Right-of-use
assets
Buildings and
structures
Machinery and
equipment
Other
tangible
assets Total 2020
- -
Decreases -111 - - - -111
133
31
88
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Accounting principle – property, plant and
equipment
-
2021
Development
Other
intangible
assets
assets in
progress
Allocated assets
related to
acquisitions Total 2021
- -
Translation difference - - -
- - -
Decreases - - - -
1 Jan
-
- - -31 -
Translation difference - - - -
31 Dec
-
2020
Development
Other
intangible
assets
assets in
progress
Allocated assets
related to
acquisitions Total 2020
-
- - -
- -
Decreases - - - - - -
1 Jan
-
- - -
31 Dec
-
89
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Accounting principle – intangible assets
-
tomer agreements and technologies with a limited useful
-
-
-
-
or customisation costs incurred, are recognised under
7.4 Right-of-use assets
1 Jan
2021 Depreciation Decreases
31 Dec
2021
Cars
1 Jan
2020 Depreciation Decreases
31 Dec
2020
Cars -111
-111
Accounting principle – lease agreements
-
mencement date of the contract, the lessee recognises a
-
-
-
2021 2020
355
related to customer agreements
Total 9,398 16,057
90
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
7.6 Related party transactions
•
•
Management Team, including the CEO
•
•
2021 2020
Total 2,064 3,096
-
2021 2020
Directors
51
CEO
Total 834 1,100
Group companies Domicile
Domestic
segment
Share of
Share of
votes
Digia Plc Helsinki Parent
Helsinki
Helsinki
Turku
Helsinki
Hengelo
Denmark
7.7 Events after the balance sheet date
91
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
8 Formulas for the indicators and
reconciliations
8.1 Formulas for the indicators
92
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
8.2 Reconciliation of alternative
performance measures
-
31 Dec 2021 31 Dec 2020
31 Dec 2021 31 Dec 2020
31 Dec 2021 31 Dec 2020
31 Dec 2021 31 Dec 2020
31 Dec 2021 31 Dec 2020
93
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
9.1 Parent company’s income statement
EUR Note 1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
1
3
5
9.2 Parent company balance sheet
EUR Note 31 Dec 2021 31 Dec 2020
Land and water areas
Other shares and holdings
94
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
EUR Note 31 Dec 2021 31 Dec 2020
11
Total current assets
Total assets 174,509,204.52 151,751,299.00
EUR Note 1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
shareholders
Total shareholders’ equity 63,911,111.62 59,009,734.28
13
Total liabilities 110,598,092.90 92,741,564.72
Total shareholders’ equity and liabilities 174,509,204.52 151,751,299.00
95
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
statement
EUR Note
1 Jan–31 Dec
2021
1 Jan–31 Dec
2020
-
cash acquired
Withdrawals of current loans
Withdrawals of non-current loans -
-
Change in cash and cash
Change in cash and cash
1
9.4 Basic information on the parent
company and accounting policies
Basic information on the company
-
Accounting policies
Pension schemes
Leasing payments
Share-based payments
-
-
-
Tangible assets
Board’s dividend proposal
-
96
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
9.5 Notes to the parent company’s
1. Net sales
EUR 2021 2020
-
Total 13,387,000.00 10,980,087.50
2. Other operating income
EUR 2021 2020
-
Total 41,934.00 36,445.00
EUR 2021 2020
Other salaries and remunerations
Total 4,100,382.01 3,149,665.32
2021 2020
Management and administration 35
Total 43 35
4. Depreciation, amortisation and impairment
EUR 2021 2020
Total 430,994.10 455,022.52
5. Auditors’ fees
EUR 2021 2020
-
-
Total 102,272.50 92,101.38
Financial income
EUR 2021 2020
Total 67,198.57 42,168.09
EUR 2021 2020
Loan administration fees
Total 696,710.55 735,959.53
EUR 2021 2020
-
Total -2,405,101.58 -1,810,400.80
97
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
EUR
rights
Other long-term
assets in
progress Total 2021 Total 2020
Decreases - - -
-
-
-
-
9. Property, plant and equipment
EUR
Land and
Buildings and
structures
Machinery
and
equipment Total 2021 Total 2020
- -
-
-
-
EUR
in subsidiary
shares
Other shares and
holdings Total 2021 Total 2020
-
Decreases - - - -
- - - -
Group companies Domicile
Domestic
segment
Share of
Share of votes
Helsinki
Helsinki
Turku
98
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
11. Current receivables
EUR 2021 2020
Total 4,125,441.66 855,167.90
12. Shareholders’ equity
EUR 2021 2020
-
Total unrestricted shareholders’ equity 61,823,547.12 56,922,169.78
Total shareholders’ equity 63,911,111.62 59,009,734.28
Calculation of distributable shareholders’ equity, 31 Dec
EUR 2021 2020
Total 61,823,547.12 56,922,169.78
13. Non-current liabilities
EUR 2021 2020
Total 18,324,000.00 10,600,000.00
14. Current liabilities
EUR 2021 2020
Total interest-bearing current
liabilities 77,552,623.45 72,393,871.11
-
To others
Total interest-free current
liabilities 14,721,469.45 9,747,693.61
Total current liabilities 92,274,092.90 82,141,564.72
99
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
15. Contingent liabilities
Lease liabilities
EUR 2021 2020
Due later
Total 88,237.58 335,829.33
Other lease liabilities
EUR 2021 2020
Due later
Total 6,217,895.68 9,404,067.83
Other liabilities
EUR 2021 2020
Other
Total 582,617.82 633,900.41
16. Share-based incentive scheme
of the consolidated
100
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Signatures to the Board’s Report and
Financial Statements
101
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Storage method
Journals
General ledger
Voucher types and storage method until 1 January 2027
Memoranda
103
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Auditor’s Report
Report on the Audit of
the Financial Statements
Opinion
We have audited the nancial statements of Digia Plc
(business identity code 0831312-4) for the year ended
December 31, 2021. The nancial statements comprise
the consolidated balance sheet, income statement,
statement of comprehensive income, statement of
changes in equity, statement of cash ows and notes,
including a summary of signicant accounting policies,
as well as the parent company’s balance sheet, income
statement, statement of cash ows and notes.
In our opinion
• the consolidated nancial statements give a true and
fair view of the group’s nancial position, nancial per-
formance and cash ows in accordance with Interna-
tional Financial Reporting Standards (IFRS) as adopted
by the EU
• the nancial statements give a true and fair view of the
parent company’s nancial performance and nancial
position in accordance with the laws and regulations
governing the preparation of nancial statements in
Finland and comply with statutory requirements.
Our opinion is consistent with the additional report sub-
mitted to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with good audit-
ing practice in Finland. Our responsibilities under good
auditing practice are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements
section of our report.
We are independent of the parent company and of the
group companies in accordance with the ethical require-
ments that are applicable in Finland and are relevant to
our audit, and we have fullled our other ethical responsi-
bilities 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 servic-
es, 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 provid-
ed have been disclosed in note 3.7 to the consolidated
nancial statements.
We believe that the audit evidence we have obtained
is sufcient and appropriate to provide a basis for our
opinion.
Materiality
The scope of our audit was inuenced by our application
of materiality. The materiality is determined based on
our professional judgement and is used to determine the
nature, timing and extent of our audit procedures and
to evaluate the effect of identied misstatements on the
nancial statements as a whole. The level of materiality
we set is based on our assessment of the magnitude of
misstatements that, individually or in aggregate, could
reasonably be expected to have inuence on the eco-
nomic decisions of the users of the nancial statements.
We have also taken into account misstatements and/
or possible misstatements that in our opinion are mate-
rial for qualitative reasons for the users of the nancial
statements.
Key Audit Matters
Key audit matters are those matters that, in our profes-
sional judgment, were of most signicance in our audit
of the nancial statements of the current period. These
matters were addressed in the context of our audit of
the nancial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate
opinion on these matters. The signicant risks of material
misstatement referred to in the EU Regulation No 537/2014
point (c) of Article 10(2) are included in the description of
key audit matters below.
We have also addressed the risk of management over-
ride of internal controls. This includes consideration of
whether there was evidence of management bias that
represented a risk of material misstatement due to fraud.
To the Annual General Meeting of Digia Plc
104
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
-
How the matter was addressed in the audit
• -
•
-
•
•
Revenue recognition, project accounting and
valuation of accounts receivable - Note 3.2 and 6.2
-
-
-
• -
•
•
•
•
Responsibilities of the Board of Directors and the
President and CEO for the Financial Statements
-
-
ments that are free from material misstatement, whether
105
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
matters relating to going concern and using the going
-
Auditor’s Responsibilities for the Audit of
Financial Statements
material misstatement, whether due to fraud or error,
not a guarantee that an audit conducted in accordance
-
•
risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as
-
•
•
•
•
• -
-
-
Other Reporting Requirements
-
106
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
-
-
misstatement of this other information, we are required to
Authorised Public Accountant, KHT
107
Digia’s direction
Responsible Digia
Digia 2021
Corporate Governance
Report by the
Board of Directors
Financial statements
Independent Auditor’s Reasonable Assurance
Report on Digia Oyj’s ESEF Financial Statements
To the Board of Directors of Digia Oyj
We have undertaken a reasonable assurance engage-
ment on the iXBRL marking up of the consolidated nan-
cial statements for the year ended 31 December, 2021,
included in the Digia Oyj’s digital les [743700QVAG6OX-
K5OP587-2021-12-31-en.zip] prepared in accordance with
the requirements of Article 4 of EU Delegated Regulation
2018/815 (ESEF RTS).
The Responsibility of the Board of
Directors and Managing Director
The Board of Directors and Managing Director are
responsible for preparing the report of the Board of
Directors and nancial statements (ESEF nancial state-
ments) that comply with the requirements of ESEF RTS.
This responsibility includes:
• preparation of ESEF nancial statements in XHTML for-
mat in accordance with Article 3 of the ESEF RTS
• marking up the consolidated nancial statements
included in the ESEF nancial statements with iXBRL tags
in accordance with Article 4 of the ESEF RTS; and
• ensuring consistency between ESEF nancial state-
ments and audited nancial statements.
The Board of Directors and the Managing Director are
also responsible for such internal control as they deem
necessary to prepare the ESEF nancial statements in
accordance with the requirements of the ESEF RTS.
Auditor’s Independence and Quality
Control
We are independent of the company in accordance with
the ethical requirements applicable in Finland, which
apply to the engagement we have performed, and we
have fullled our other ethical obligations in accordance
with these requirements.
The auditor applies International Standard on Quality
Control 1 and accordingly maintains a comprehensive
system of quality control including documented poli-
cies and procedures regarding compliance with ethical
requirements, professional standards and applicable
legal and regulatory requirements.
Auditor’s Responsibility
In accordance with the Engagement Letter our responsi-
bility is to express an opinion on whether the marking up
of the consolidated nancial statements included in the
ESEF nancial statements comply in all material respects
with the Article 4 of the ESEF RTS. We conducted our
reasonable assurance engagement in accordance with
International Standard on Assurance Engagements 3000.
The engagement involves procedures to obtain evidence
whether;
• the consolidated nancial statements included in the
ESEF nancial statements are, in all material respects,
marked up with iXBRL tags in accordance with Article 4
of the ESEF RTS, and;
• the ESEF nancial statements and the audited nancial
statements are consistent with each other.
The nature, timing and the extent of procedures selected
depend on practitioner’s judgement. This includes the
assessment of the risks of material departures from the
requirements set out in the ESEF RTS, whether due to fraud
or error.
We believe that the evidence we have obtained is suf-
cient and appropriate to provide a basis for our opinion.
Opinion
In our opinion, the consolidated nancial statements
included in the ESEF nancial statements of Digia Oyj
identied as [743700QVAG6OXK5OP587-2021-12-31-en.
zip] for the year ended 31 December, 2021 are marked
up, in all material respects, in compliance with the ESEF
Regulatory Technical Standard.
Our audit opinion relating to the consolidated nancial
statements of Digia Oyj for the year ended 31 December,
2021 is set out in our Auditor’s Report dated 8 February,
2022. In this report, we do not express an audit opinion,
review conclusion or any other assurance conclusion on
the consolidated nancial statements.
Helsinki 24 February, 2022
KPMG OY AB
Virpi Halonen
Authorised Public Accountant, KHT
108
