Consolidated net sales for January–December totaled EUR 15.9 million (2020: EUR 11.3 million),

an increase of 41.6 %, year on year.

The majority of SSH Communications Security’s invoicing is U.S. dollar based. During the financial

year, the average exchange rate of the U.S. dollar against the euro declined by 3.7 % compared

net loss totaling EUR -2.3 million (2020: EUR -3.1 million).

Selling, marketing, and customer support expenses amounted to EUR -8.6 million (2020: EUR -6.7

million), while research and development expenses totaled EUR -5.8 million (2020: EUR -5.0 mil-

lion) and administrative expenses EUR -4.1 million (2020: EUR -2.7 million). Operating expenses

increased by 28.8 % compared to the previous year.

tual pension insurance company. Interest-bearing liabilities include a subordinated loan of EUR

0.6 million (December 31, 2020: 0.6 million) taken out from the non-controlling interest holder,

State Security Networks Group Finland, and a premium loan from ELO mutual pension insurance

company for EUR 2.2 million. On December 31, 2021, gearing, or the ratio of net liabilities to

shareholders’ equity, was -39.8 % (31 Dec 2020: -85.3 %) and the equity ratio stood at 44.6 % (31

Dec 2020: 69.7 %).

The capital and interest of the subordinated loan, which Kyberleijona Oy has taken out from the

non-controlling interest holder State Networks Group Finland, can only be repaid in circum-

stances permitted by Chapter 12 of the Finnish Limited Liability Companies Act. The capital of the

The reported gross capital expenditure for the period totaled EUR 2.0 million (2020: EUR 2.1 mil-

lion). Financial income and expenses totaled EUR -0.3 million (2020: EUR -0.6 million), which con-

sisted mainly of exchange rate gains or losses and interest expenses from sales and leasing con-

tracts.

The Group had a cash flow of EUR 2.8 million (2020: EUR -0.2 million) from business operations,

and investments showed a cash flow of EUR -4.9 million (2020: EUR -1.5 million). Cash flow from

investments include the acquisition of Deltagon Oy for EUR -4.6 million, and government grants

EUR -1.3 million). Cash flow from financing includes the payment of the hybrid instrument inter-

Parent company salaries, bonuses, and other personnel expenses during the financial period to-

According to the Articles of Association, the highest decision-making power in the company is

wielded by the shareholders at the shareholders’ meeting. The Annual General Meeting (AGM) is

held within six months of the completion of the company’s financial period, at a time decided by

the Board. The AGM decides the number of members of the Board of Directors and elects them.

Additionally, under the Finnish Limited Liability Companies Act, the AGM has the authority to

amend the company’s Articles of Association, adopt the financial statements, approve the

SSH Communications Security abides by its Articles of Association as well as principles of trans-

parent and responsible corporate governance, and high ethical standards in its governance and

decision-making. The company complies with the Finnish company and securities market legisla-

tion, including the market abuse regulation, rules of Nasdaq Helsinki and Finnish Corporate Gov-

ernance Code 2020 adopted by the Securities Market Association.

For more information see our Corporate Governance Statement that is published annually as a

separate report and can be found at SSH’s website.

SSH has established a Code of Conduct for responsible and transparent activities, employee sat-

isfaction and ethics for all employees worldwide.

Companies that have less than 500 employees are exempt from the requirements to disclose

information according to Regulation (EU) 2020/852 of the European Parliament and of the Council

During the review period, no dividend or return of capital have been distributed.

The registered share capital of SSH Communications Security Corporation on December 31,

2021 was EUR 1,178,366.97 consisting of 39,278,899 shares.

In 2021, share capital increased by EUR 14,300 through subscription of stock options. Stock op-

Chapter 10 Section 1 of the Finnish Companies Act, either according to the shareholders’ pre-

emptive right to share subscription or deviating from this right, in one or more tranches. Based

on the authorization, it can be either issuing of new shares or transfer of own shares, which the

company possibly has in its possession.

Based on the authorization, the Board of Directors shall have the same rights as the Annual Gen-

eral Meeting to decide upon the issuing of shares against payment and special rights (including

stock options) in accordance with Chapter 10 Section 1 of the Finnish Companies Act. Thereby,

the authorization to be given to the Board of Directors includes, inter alia, the right to deviate

from the shareholders’ pre-emptive rights with directed issues providing that the company has a

SSH Communications Security Corporation helps organizations access, secure and control their

digital core – their critical data, applications and services. In the rapidly growing global data econ-

omy, secure access that enables digital transformation at business velocity is the new competitive

advantage.

Our thousands of customers include Fortune 500 companies, the world’s largest financial institu-

tions, and major organizations in all verticals. Our solutions guard against the rapidly changing

terprise-class solutions, professional services, support offering, and from our strong IP portfolio

The Group has adopted the new standards and interpretations that took effect during the ac-

counting period and are relevant to its operations. The IFRS standards and the amendments that

entered into force in 2021 had no impact on the Group’s result, the financial position, or the

or rights, to variable returns from its involvement with the investee and the ability to use its

power over the investee to affect the amount of the Group’s returns. In practice, controlling in-

terest is established when the Group owns more than half of the votes in a company.

Group-internal share ownership is eliminated using the purchase method. Subsidiaries are con-

ment of changes in equity, and in the balance sheet.

the income statement. Exchange rate gains and losses on financing are included in financing in-

come and costs.

The comprehensive income statements and cash flow statements of subsidiaries whose func-

tional currency is other than EUR are translated into euros using the exchange rate of the trans-

action dates. In practice, the translations are done once a month using the monthly average ex-

change rate. Balance sheet items are translated into euros with the exchange rate of the balance

aries and translation of equity items accrued after acquisition are recognized under other com-

prehensive profit/loss items. When a subsidiary is sold, accumulated translation differences are

recognized in the income statement as part of the gain or loss on the sale.

SSH Communications Security net sales derive mainly from software license sales and subscrip-

tions, related support and maintenance fees, and consulting fees. Net sales comprise the invoiced