Digitalisation
that makes
a difference
Annual Report 2020
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Digitalisation that makes a
data-driven world
Digia is a growing software and service company that
helps its customers to renew and develop data-driven
business operations.
The world is becoming networked and the pace of de-
velopment is accelerating. Companies and public-sector
organisations must have the capacity for continuous
renewal. We live in a digitalised world in which organisa
-
tions’ processes and services are already largely reliant
on a variety of information systems. The ability to utilise
data will determine success.
Digia is your partner for comprehensive digitalisation. We
help our customers to build strong systems and translate
-
vide all the layers of digitalisation from business systems
service management. Our Service Center ensures that
our customers’ business-critical systems and services
In order to renew your business, you have to win people
over to the changes. Systems and services must be easy
-
tine operations so that peo-
ple can focus on meaningful
work. We connect humans with
technology in a smart way.
We are also developing our own
operations. Our daily lives are guid
-
ed by our cultural principles: learn-
ing, sharing, courage and professional
pride.
Helsinki, Tampere, Jyväskylä, Turku, Oulu,
-
holm, Sweden. Digia’s net sales totalled EUR
The company is listed on Nasdaq Helsinki
(DIGIA).
We are building a world in which digitalisation
and partners.
Digia in brief
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Digia in brief
It will not sting
that bad
I will stand
is a Senior Trainee
Together we
know more
We complete
our work but
we ourselves are
a work-in-progress!
Shared information
is double the
information. Helping
others saves time.
What goes around
doesn’t surprisingly
come around to
bite us.
I will choose whatever
works the best.
If I made a wrong call,
I’ll choose again.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
-
rus changed our business environment in the early year,
and Digia personnel spent almost the entire year working
remotely. Our organisation demonstrated its strength in
our ability to operate but also developed our operations
during the past year. In spite of the uncertain market
This gives us a good foundation for future growth.
The importance of responsible operations was highlight
-
-
ic, we ensured that our customers’ services continued to
operate without interruption and that our personnel could
work safely. We also developed our corporate responsi
-
bility and updated its focal points.
strategy, which revolves around the smart utilisation of
data in services and business processes. All companies
and public-sector actors are facing a learning journey in
terms of the development of both operating culture and
technological solutions. Digia is a visionary and reliable
partner to our customers on this journey.
-
ing both our operations and our personnel’s competence.
We have, for instance, developed remote management
by coaching our supervisors and project managers on
questions concerning leadership during the pandemic.
In accordance with our cultural principles, we constantly
provide a wide variety of training for our personnel.
The continual development of our operating models
is part of our strategy. As part of this, we launched a
project to modernise our own business platform. This
modernisation seeks to support Digia’s growth, data
smooth running of daily life. We started planning
environment, we managed to safeguard the continuity of
our customers’ services and our personnel’s employment,
as well as to renew our strategy. Our net sales grew by
Over the course of the year, we strengthened our posi-
-
panded the Digia Hub (our network of freelance develop-
ers) via the acquisition of NSD Consulting. In December,
we signed an agreement to acquire Climber International
At Digia, we believe in a world where business value is
created by using data intelligently in digital ecosystems.
We are a responsible and visionary partner to our cus
-
tomers in this world.
I would like to thank our customers, personnel, partners
and other stakeholders for their responsible business
CEO, Digia Plc
CEO’s Review
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
The digitalisation trend shows no signs of stopping and is creating
a strong growth market for Digia. Customer organisations are
placing a clearer focus on data utilisation needs.
Companies and public-sector organisations are continuing
to digitise their services. The further along organisations
are on their digitalisation journey, the more clearly the
focus of demand shifts to data utilisation.
We believe that the coronavirus pandemic will primarily
accelerate developments in digitalisation, even though
more about the impacts of the coronavirus on Digia’s
business on .
We see the following strengthening trends in the market,
both in the business and public sector:
• digitalisation is becoming an increasingly important
part of organisations’ core operations;
• smart and responsible data utilisation in business
processes creates a competitive advantage;
• the world is becoming networked, and digital platforms
enable new business models;
•
for services;
• further growth in information security and protection
requirements;
• the role of cloud technologies as a platform for devel
-
oping and operating services is becoming the norm.
In many organisations, the digitalisation of operations
has progressed so far in recent years that operations are
almost entirely reliant on a variety of information systems.
This means that digitalisation will no longer be a sepa
-
how an organisation implements its core tasks. That’s
why the uninterrupted operation of services and systems
is becoming even more important. Digia meets these
of service management and monitoring options, and its
Finland-based Service Center. We are able to generate
-
When processes are highly digitalised, organisations
have access to data on practically all of their activities.
That’s why it is possible to make business even more da
-
ta-driven. Data also enables the development of brand-
new kinds of services and even new business models. In
driven operating models combined with the capability to
gather, manage, share and analyse data. Digia employs
data. In addition to analytics, we pay attention to data
utilisation needs in all of our deliveries, from ERPs
to digital services.
In our networked world, digital platforms are becoming
increasingly important in two ways. Firstly, every company
and public-sector organisation must ensure that their
own digital platform is in good working order. This means
Secondly, digital platforms enable new types of coop
-
eration models (platform economies are a well-known
operating models must also identify what kind of digital
ecosystems they should join, and also ensure they have
the capability to join these platforms and share data
between platforms.
-
er users actually make good use of digital services.
Services must be attractive and easy to use, and must
-
faces for functions implemented by many other systems.
Digia’s strength in the competitive digital services market
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
is our understanding of the entire package: we are able to
implement services from business systems all the way up
to the customer interface. This package is tied together
with a customer-centric approach and service design.
The services of the future will, above all, be data-driven.
The further we progress with digitalisation, more and
more critical data of various types is being stored in
protecting this data is vital. Data leaks and other cyber
threats are posing an increasingly critical risk to the
activities of both companies and organisations. For this
reason, customers are increasingly valuing partners, who
are able to guarantee secure systems all the way from
implementation to maintenance. Digia can safeguard
system security from implementation to maintenance.
Digia has a separate security organisation headed up
by the CSO, which is responsible for continually devel
-
in particular.
These days, the cloud is increasingly being used as a
production platform at all levels of digitalisation, from
business systems to data analytics and digital services
-
ever, it is not always appropriate to migrate all operating
and application environments to the cloud. This means
that there is a need for a variety of cloud and data centre
hybrid solutions. Digia is your comprehensive partner
in the cloud. We can help design cloud architecture,
implement cloud infrastructure, and provide continuous
cloud-based services.
Organisations are transitioning from service and process digitalisation to the next phase, which emphasises data utilisation.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
to renew our operations and strengthen the selected focus areas.
In the strategy, we place particular emphasis on data utilisation
in our customers’ services and business processes.
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
service package covering mobile and online services,
data platforms and knowledge-based management,
integrations and APIs, as well as business core systems
including high-security solutions.
For all of these, we provide various levels of maintenance
services to help our customers operate their business-
critical systems and services around the clock.
further strengthening this package and helping our cus-
utilisation of data.
.
Digia is seeking annual net sales growth of more than
Digia delivers value to its customers by acting as a visionary
and reliable partner in our networked and data-driven
world. Strong customer relations, professionalism, corpo
-
rate culture, product and service packages, a partnership
network and responsibility form the basis for our operations.
Digia employees and the company’s cultural principles
are at the core of this: courage, sharing, learning and
professional pride. These cultural principles are everyday
direction that supports learning and renewal.
The world around is becoming more networked, and
Digia is also gaining strength from partners and networks.
We work with leading technology partners in the best
interests of our customers. We are able to guarantee
technological continuity and enable the provision of a
We will bring data utilisation
as a cross-cutting theme for all Digia’s
service areas, from business systems
to integrations and digital services.
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.
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 improve our cost-
competitiveness. An essential
development project in the strategy
period will be the reform of our own
business platform.
Cloud is the
development and operating platform
for future services. We will continue
services, taking into account security
and key public cloud platforms
(Microsoft Azure, Amazon Web
Services and Google Cloud Platform).
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Net sales
EUR million
150
120
90
60
30
0
139
132
112
96
86
2016 2017 2018 2019 2020
Operating result
EUR million
20
15
10
5
0
2019
Digia proceeded to EBITA guidance in the beginning of 2020.
2020
16
11
EBITA
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
In order to prevent the spread of
have been working remotely since March. Digia’s
and we have been able to guarantee uninterrupted
services for our customers even during these
step in Digia’s growth journey. This strategy
-
data. We will continue to renew our opera
-
tions and strengthen selected focus areas.
Read more about our strategy on page.
Diversity is an aspect of Digia’s responsibility,
and we want to make our workplace even more
and organised diversity training for personnel.
We are also actively involved in
the Women in Tech network.
and the Swedish company Climber Interna-
acquired Climber’s entire share capital. The
After the acquisition, Digia now employs more
integration and business analytics.
the Digia Hub network, which
versatile projects in a wide range of
in October when Digia acquired
NSD Consulting Oy,and Digia Hub
Companies can acquire top-notch professionals
for their own software development
projects straight from this network.
During the year, we made our own contribution to
data-driven development project of the Finnish Red
Emergency Response Centre was renewed during
bulletins, which can be particularly useful during
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
In the midst of the coronavirus pandemic, we ensured
that our customers’ services continued to operate
without interruption and that our personnel could work
safely.
The market environment became more challenging
-
tions. In the short term, our customers’ need to ensure
the performance of their core business and enhance
an uncertain market, customers were also typically more
careful in evaluating the volume of development projects
and project implementation schedules. This cautiousness
The coronavirus has forced many organisations to
review their operating methods and assess opportunities
to utilise digital solutions. The crisis has also revealed
opportunities that have been opened up by digitalisation
-
erate the digitalisation trend in the years ahead. Clear
the development of e-services. Many of the new op-
and society even after the crisis is over. We are moving
towards a world in which people and software collabo
-
rate in daily life.
During the coronavirus epidemic last year, our priorities
were to ensure the safety of our employees and the
uninterrupted operation of services for our custom
-
ers, without neglecting continuous development. The
majority of our employees have been working remotely
throughout the pandemic. We introduced continuity
plans for our continuous services in the very early stages
of the pandemic, and these plans have helped to safe
-
guard service levels and the continuity of our customers’
business operations.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
This business area combines
customer-centric, tailor-made
platform solutions with Digia’s
Digia is recognised as one of
Finland’s leading operators in
integration and API solutions, and the network trend
will further strengthen the importance of smooth and
reliable integrations. This service area’s key themes are
interoperability, reliability, and data security.
In these service areas, we
provide business systems
that help our customers to
core processes. These systems also act as
-
ment. Digia Business Platforms
-
our own Digia Enterprise ERP product, which has
been awarded the Key Flag symbol. Digia Finan
-
cial Platforms is based around our Digia Financial
Solutions product family, which is a market-leading
solution for fund management companies, asset
management companies, and brokers.
This service area includes
Digia’s continuous services,
support and maintenance,
and cloud environment op
-
eration. Digia’s own Service
Center ensures that our customers’ business-
We help our customers
to utilise data and
productive services that have
been designed with a cus
-
tomer-centric approach. We provide business and
service design, analytics, e-commerce solutions,
and mobile and online services.
Digia Digital
Digia’s service
areas
Digia reports on one business segment that comprises of
Digia Financial Platforms and Digia Customer Operations.
Service areas
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Digital services, such as a mobile application, are
a critical part of HSL’s business, and uninterrupted
service must be guaranteed around the clock. This
is why HSL relies on Digia’s service management
and the Digia Iiris monitoring solution.
As part of this service management, Digia
also coordinates troubleshooting with HSL’s
other partners.
HSL
Woikoski operates in the gas industry and was
in need of a new start. Several years ago, the
company realised that it was time for some bold
new development – the digitisation of its business.
Woikoski worked with Digia to renew the
company’s entire business by building a digital
platform for it. This large-scale project included
a new ERP, an IoT solution, data analytics and
several other systems.
The Finnish Elite League, Liiga is a pioneer in
digital services for ice hockey – even on a global
scale. Liiga’s mobile apps are the very model of
innovation.
An app developed by Digia is taking the fan
experience to the next level by creating a brand-
new kind of platform for clubs and their partners
to reach audiences and sell services. Various
versions of the app are being used exceptionally
widely and innovatively.
Liiga
Service areas
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
The system that FIM was using in its fund value
calculation had fallen badly behind the times
and there was an obvious need to invest in
a new system. Strictly regulated, routine back-
oce functions tie up resources, but it is dicult
to make them generate added value.
FIM sought increased eciency and cost benets
by outsourcing fund-related back-oce functions
to Digia.
FIM
How to eectively organize volunteers when
thousands of them can unexpectedly sign up at
once? The Finnish Red Cross regularly encounters
this positive but challenging dilemma.
Signicant help came from a project with Digia,
which combined service design and data utilisation.
Now the Red Cross can guide and develop
volunteer work with data, and more and more
people are getting the help they need faster.
Monitoring the situation on a construction site
involves many challenges relating to transparency
and information ow. Fira is aiming to resolve
these issues through a variety of means, including
digitalisation.
The company worked with Digia to create a
real-time overview that collates information from
dierent systems into a single display, thereby
increasing transparency on construction sites.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Personnel
Skilled personnel who are committed to the objectives of
our customers are the cornerstone of all our operations.
We want to be a team of top professionals who are always
Technological advancements are changing the world.
Operating methods are changing and industry boundaries
are breaking down. Our professionally skilled employees
help our customers to navigate these changes and har
-
ness digitalisation opportunities.
Digia’s key strength lies in its broad-ranging and profound
and evolving workplace culture. This is why we are able
solutions and our employees with varied and motivat
-
ing tasks. We are making continual investments in the
a motivating workplace culture and a culture of lifelong
learning.
Culture is the ERP system of everyday life that guides
our choices. Digia’s cultural principles are learning,
we continued to integrate our cultural principles into our
everyday work. We will continue to develop our corporate
culture and build the best and most functional workplace
possible in the spirit of continual improvement. Due to
the coronavirus epidemic, the majority of Digia personnel
began working from home. We are therefore seeking to
maintain a sense of community with the aid of a variety
of internal virtual events and content.
Diversity is part of Digia’s corporate responsibility: our
-
eryone can be themselves. Psychological safety is one
key aspect of an inclusive workplace, and studies have
shown it to be a common factor among successful work
-
place communities. Continuous learning is one of our key
cultural principles. In the spirit of Senior Trainee attitude,
we believe that we can continuously develop as a work
-
place community with respect to how we take people’s
community, which is also the umbrella organisation
for Women in Tech. Inklusiiv seeks to promote greater
diversity and inclusivity in the workplace. In cooperation
with Inklusiiv, we organised diversity training for both
management and personnel. Our tribal activities, which
focus on the mutual sharing of information between
personnel, also received a boost with the addition of
a new tribe (the Diversity tribe) at the turn of the year
a number of ways, such as by and sharing Digia em
-
ployees’ everyday observations and stories about their
Personnel by location 31 December
Number of personnel
Helsinki 722
Tampere 256
Jyväskylä 170
Turku 51
Rauma 24
Vaasa 14
Lahti 10
Oulu 6
Stockholm 5
Employees 31 December
Number of employees
1,500
1,200
900
600
300
0
2016 2017 2018 2019 2020
1,266
1,091
1,005
872
1,258
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
We operate in an environment where everything is in
constant motion. To keep up with the pace, we need to
to provide our employees with a range of opportunities
for personal development, thereby ensuring that both
the company and its employees maintain their competi
-
tiveness. We want to be a team of top professionals who
are always learning. To ensure this, we develop Digia
employees’ competence in technology and other spe
-
cialist areas through training and learning on the job and
in networks.
during the year. Training mainly focused on organising
coaching to support the technical and professional skills
In addition to competence development for Digia per
-
-
laborated with Vaasa Entrepreneurship Society (VES)
to organise an e-commerce programming course that
was attended by students from the Vaasa University of
Applied Sciences and the University of Vaasa. We were
also involved in the Academic Work Academy’s intensive
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. Successful induction is the basis for a positive
Personnel
Personnel distribution by age 31 December
Number of persons
Women Men Other
150
120
90
60
30
0
24–27 28–31 32–35 36–39 40–43 44–47 48–51 52–55 56–59 60–63 64–67 67 << 24
Employees by gender 31 December
Number of employees
1,500
1,200
900
600
300
0
2016 2017 2018 2019 2020
Female Male Other
935
828
749
646
911
347
331
263
256
226
career changers not only permanent positions, but
also trainee placements and thesis-writing opportuni
-
ties. In the early year, we organised our popular Career
Compass recruitment breakfasts in Helsinki, Jyväskylä,
applications for the programme. Due to the coronavirus
restrictions, our recruiting events moved online and we
were actively involved in virtual events such as the Mim
-
mit koodaa (Women Code) programme.
The ways in which work is done in the IT industry are
changing quickly: small entrepreneurs are becoming
increasingly prevalent alongside traditional employment
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
top-notch professionals for their own software develop
-
ment projects straight from this network.
Continually monitoring and supporting the employee
distribution and support for competence development.
Digia uses an early intervention model that supports
success at work. Wellbeing is also supported with
-
we introduced the Siqni personnel survey to gain a bet
-
ter understanding of our employees, as understanding
key aspect of Digia’s culture of continuous improvement.
The survey revealed certain themes that are both valued
by Digia personnel and have been successfully realised:
meaningful tasks, professional colleagues, the freedom
to work independently of time and place, and job secu
-
rity and continuity. Praise was also given for maintaining
a good work-life balance and giving employees the op
-
portunity to put their skills into practice on a daily basis.
Digia wants to be a pioneer in good leadership and
workplace culture. We seek to provide a professional,
-
is founded on providing the best possible support to
employees to guarantee their success. For instance, in
-
ing our supervisors and project managers on questions
concerning leadership during the pandemic. We will
continue to coach supervisors with the basic premise
of developing a digital method of providing positive,
goal-oriented leadership with a coaching approach.
We also arranged customised virtual coaching for our
build trust and manage and orchestrate cooperation.
Personnel
Personnel by years of service 31 December
Percent
<1 1–5 6–10 11–15 16–20 20<
50
40
30
20
10
0
24.4
39.3
10.5
10.0
10.0
5.7
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
that makes a difference
Digia’s responsibility is based on our own Code of Conduct, the UN’s
Universal Declaration of Human Rights and Sustainable Development
Goals, and the International Labour Organisation’s (ILO) standards.
However, in our changing business environment, responsibility is
based above all else on the continual monitoring and improvement
of our operations.
responsibility. We interviewed various stakeholders,
such as our customers and personnel, in order to create
a responsibility framework that genuinely promotes our
-
the focus areas of corporate responsibility as well as ob
-
jectives and indicators for them. Read more about Digia’s
corporate responsibility, objectives and indicators in the
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 improve
their responsible utilisation of data, and the availability
and usability of their services. We also seek to promote
the ethical use of data.
to contribute to building solutions that enhance environ
-
mental and social responsibility for both society and our
customers.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
roots are in Finland and we work with our customers both
in Finland and abroad. Our headquarters are in Helsinki
and we have seven other locations in Finland: Tampere,
Jyväskylä, Turku, Oulu, Rauma, Vaasa and Lahti. We also
Skilled personnel who are committed to the objectives
of our customers are the cornerstone of all our opera-
tions. Digia aims to be a desired employer in the tech-
wellbeing and competence development. Our goal is to
their term of employment.
Digia wants to provide a safe and healthy working
environment in which everyone is valued as themselves.
Continually monitoring and supporting personnel wellbeing
play 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 devices. We aim to be
a carbon-neutral company.
Compliance with Digia’s Code of Conduct is an essential
aspect of our company’s success. All of our personnel,
are responsible for complying with these principles in
their work. This Code of Conduct also applies to Digia’s
subcontractors. Our goal is for our entire organisation to
internalise and comply with these ethical practices.
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.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
This Statement has been issued separately from
Digia Plc’s (hereinafter “Digia”) corporate governance
system is based on the Companies Act, the Securities
Markets Act, general corporate governance recommen
-
dations, the company’s Articles of Association and its
in-house rules and regulations on corporate governance.
The company (and this Statement) adheres to the
Governance Code for Listed Finnish Companies issued
by the Finnish Securities Market Association, which
Governance Code can be read on the
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
applicable professional requirements that have been
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 businesses and operations.
• The company’s management, administration and
personnel are subject to the appropriate internal and
Digia’s highest decision-making body is the Shareholders’
on company matters. The Annual General Meeting (AGM)
is held once a year before the end of June on a date set
the holder to one vote at a Shareholders’ Meeting.
The Annual General Meeting should convene annually
in writing by a company auditor or shareholders holding a
The Finnish Companies Act and Digia’s Articles of As
-
-
cally convened. 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.
CEO should be present at Shareholders’ Meetings.
The minutes of Shareholders’ Meetings will be available
for shareholders to read on the
within two weeks of the meeting. The decisions made at
Shareholders’ Meetings will also be published in a stock
after the meeting.
Shareholders have the right to add a relevant item (as
Shareholders’ Meeting, as long as the request is made in
added to the notice of meeting. Digia will announce the
date by which shareholders must present a requested
This deadline will be published on Digia’s website. The
date will be announced at the latest by the end of
meeting are available on the . No
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Meeting, and is in charge of Digia’s administration and the
appropriate organisation of the company’s operations.
eight members. The Nomination Committee will present
the Shareholders’ Meeting with its proposal for the com
-
the company and a minimum of two of those members
must also be independent of the company’s major share
-
holders. Neither the CEO nor other company employees
working under the CEO’s direction may be elected mem
-
the Annual General Meeting following their election. A
elects its Chair and Vice Chair from amongst its members.
policy. It states that the requirements of the company’s
-
in the following areas in particular:
•
• managing a company of similar size;
• the nature of a listed company’s business operations;
• management accounting;
• risk management;
• mergers and acquisitions; and
• board work.
successfully in line with Digia’s diversity policy.
prescribed by the Companies Act and other rules and
for the items in its rules of procedure, observing the
following general guidelines:
• good governance requires that, instead of needlessly
should concentrate on furthering the company’s short-
and long-term strategies;
•
-
tations of various stakeholder groups; and
•
a manner that serves the company’s interests.
the following tasks:
•
a preliminary meeting schedule and framework
agenda for each meeting;
•
assessment;
• provide guidelines for distributing notices of meetings
for keeping and approving minutes;
•
and Secretary (the latter position is held by the General
Counsel or, if absent, the CEO); and
•
up special committees or working groups.
when necessary.
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.
Responsibility of Digia’s opeartions is held by the Share-
holder’s meeting, Board of Directors, and the President
& CEO assisted by the Group Mnanagement Team.
Audit
ISO 9001 quality management system
and other written guidelines
Risk
Management
Financial and
internal control
GROUP MANAGEMENT TEAM
SHAREHOLDERS’ MEETING
PRESIDENT AND CEO
BOARD OF DIRECTORS
Audit Committee
Compensation
Committee
Nomination
Committee
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
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.
the Audit Committee, and the Nomination Committee.
These committees do not hold powers of decision or
-
has decision-making and collegial responsibility over
their actions.
The purpose of the Audit Committee is to assist the
-
the company comply with legislation and are balanced,
transparent and clear. The Audit Committee also su
-
pervises and assesses internal control and auditing, the
agreements and other legal actions between the company
and its related parties meet market conditions and the
requirements for ordinary operations. The Audit Commit
-
tee supervises and assesses the independence of the
company’s auditor and, in particular, the auditor’s pro
-
vision of non-audit services. The Audit Committee also
supervises the company’s audit and prepares a proposal
the Audit Committee consisted of Seppo Ruotsalainen
with full attendance.
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
are met, that decision-making is objective, and that
remuneration schemes are transparent and systematic.
Hokkanen (Chair), Robert Ingman and Outi Taivainen.
year, with full attendance.
The Nomination Committee prepares proposals for the
Annual General Meeting on (a) the number of members
of Directors, (c) the remuneration for the Chair, Vice
remuneration for the Chair and members of the com
-
year, the Nomination Committee consisted of Seppo
-
gman. The Nomination Committee convened three times
CEO
business operations and administration in accordance
far-reaching measures, in view of the nature and scope
of the company’s activities, only if so authorised by the
-
ment Team’s meetings. The CEO is not a member of
terms and conditions of the CEO’s employment. Timo
The Group Management Team supports the President
-
pensation Committee approves the appointments of the
members of the Group Management Team and decides
on the terms and conditions of their service contracts on
the basis of the CEO’s proposal. Digia follows the one-
over-one principle in Group Management Team and
other appointments.
The CEO chairs meetings of Digia’s Management Team.
The Management Team consisted of nine members on
weeks to assist the CEO in the preparation and imple
-
mentation of strategy, operative management, and pre-
sets their associated targets, and monitors their progress.
acquisitions. 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.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
KTT
KTM
CEO
-
-
C FO
BBA
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
The company has a controller function that reports to
the CFO and is tasked with ensuring the accuracy of
performance of the company and its divisions to Manage
-
-
tee.
The company uses a reporting system that compiles
reports of subsidiaries. The company’s CFO monitors com
-
pliance with these instructions. The company also has the
separate reporting facilities required for monitoring business
operations and asset management.
consolidated interim reports and consolidated Financial
control over the Group’s funding and asset management,
Internal control helps to ensure the reliability of the Digia
Group’s business is divided into areas of responsibility led by
Senior Vice Presidents (SVPs) reporting to the CEO. Report
-
ing and supervision are based on annual budgets that are
reviewed monthly, on monthly income reporting, and on
updates of the latest forecasts.
The SVPs report to the Group Management Team on de
-
velopment 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 current
-
tions are able to handle internal auditing tasks.
The purpose of the company’s risk management process is
to identify and manage risks in a way that enables the com
-
-
agement is a continuous process by which the major risks
of risk management are appointed, and risks are prioritised
identifying, planning and implementing risk management
measures, and then monitoring their impact.
The main operational risks monitored under Digia’s
risk management are related to customers, personnel,
deliveries, IT, data security and protection, immaterial rights,
and goodwill.
The company manages customer risks by actively
developing its customer portfolio structure and avoiding any
potential risk positions.
Personnel risks are evaluated and managed using
a quarterly performance review and development
discussion process in which key personnel participate.
To enhance personnel commitment, the company strives to
-
cations via regular personnel events and by increasing the
management’s visibility. Two major personnel-
by developing our personnel’s competence and through
continual recruitment management and subcontractor
management.
projects and continuous services are conducted with
a view to enhancing project and service risk manage-
ment and securing the success of customer deliveries.
-
-
ment system (Core Process Model), and the processes
described in this system are utilised in all operations with
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
-
data security and data protection training package. This
training must be retaken every year, not only by Digia
personnel but also by 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
of the company’s own immaterial property rights (IPRs)
and violation of third parties’ IPRs. These are managed
and appropriate supervision and analysis.
With respect to IFRS-compliant accounting policies,
the 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
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
-
pany. This function is responsible for the Group’s liquid-
The Group’s risk management seeks to minimise the
interest rate risk, credit risk, and funding risk. The general
principles of Digia’s risk management are approved by
and business divisions are jointly responsible for their
practical implementation.
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.
Digia’s insiders are divided into:
permanent insiders, which include the CEO and mem
-
Team;
due to their position or tasks;
insider registers.
Members of Digia’s Management and those in their close
circle must report all business transactions that involve
Authority. The managerial positions covered by this obli
-
gation are: the CEO, members of the Management Team,
business transactions made by members of Digia’s Man
-
agement and those in their close circle. These releases
Digia also keeps a record of this information on the com
-
pany’s website.
Anyone working in a managerial position at Digia, or who
before the publication of one of the company’s business
securities whilst the project is ongoing.
Digia Plc has a ‘whistle blowing’ channel for reporting
suspected cases of bribery and corruption, market
abuse, and violations of Digia’s insider guidelines. This
channel seeks to promote compliance with good gover
-
nance 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, regula
-
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
-
dance with the Personal Data Act, with regard to both the
informant and suspect.
According to the Corporate Governance Code, a compa-
ny must evaluate and monitor business transactions with
interest are duly taken into consideration in the com
-
pany’s decision-making. Here, “the company’s related
parties” refer to the related parties of listed companies
-
bers with instructions concerning related parties. In order
to enable the monitoring of related-party transactions,
the company maintains an up-to-date register of com
-
parties and related-party transactions before engaging
in any business. The business function and the legal
counsel should together determine whether related-
party transactions form part of the company’s ordinary
business and whether they are subject to standard
commercial terms and conditions.
If an intended related-party transaction would be signif
-
icant for Digia and would either deviate from the com-
pany’s ordinary business or not be subject to normal
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
market conditions, then this business transaction must be
detail in the consolidated Financial Statements. The
related-party transactions are carried out under normal
market conditions and do not deviate from the compa
-
ny’s ordinary business.
Central Chamber of Commerce. The auditor is elected
until further notice. The Annual General Meeting elects
of Authorised Public Accountants, is the Group’s auditor.
Virpi Halonen, Authorised Public Accountant, has been
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Committee and Compensation
Committee.
A Member of the Directors’ Institute of Finland.
Independent of the company.
and Nomination Committee.
A member of the Directors’ Institute
and a founder member of the Startup Foundation.
Independent of the company and its major shareholders.
Committee and Nomination
Committee.
A Member of the Directors’ Institute
of Finland.
Independent of the company and its major shareholders.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
in economics
Committee.
A Member of the Directors’ Institute
of Finland.
Independent of the company and its major shareholders.
Committee.
A Member of the Directors’ Institute
of Finland.
Independent of the company and its major shareholders.
Committee.
Area HR Director, Central and North Europe,
Helsinki Chamber of Commerce,
Independent of the company and its major shareholders.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Various positions, Consumer Mobile Communication
Senior Manager, Finance Transformation, Deloitte Fin
-
General Counsel
-
-
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Senior Vice President, HR and Culture
-
Director: HR, legal and communications, Sanoma News
Director: HR, legal and communications, Sanoma Enter
-
Common Services
Senior Vice President, Sales and Marketing
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Senior Vice President, Digia Digital
Vice President, Consulting Services, CGI Suomi Ltd,
Senior Vice President, Digia Financial Platforms
Managerial positions in IT management, ICL Personal
Technology
Senior Vice President, various responsibilities, Digia Plc,
Management Team member, various responsibilities, CGI
Sales Director, Central Government, Logica Suomi Ltd,
Account Manager, Public Sector, Novo Group Plc,
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
This Remuneration Report describes how Digia Plc has applied its
been implemented in Finland mainly in the Limited Liability Companies Act
it for presentation to the General Meeting.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
The remuneration of Digia’s governing bodies is based on
Digia Plc’s Remuneration Policy, on which shareholders
made an advisory decision at the Annual General Meet
-
Remuneration Policy to a General Meeting before that
date for an advisory decision. The Remuneration Policy is
available online .
strategy period Digia continues to renew operations
and strengthen the selected focus areas. Digia places
particular emphasis on the potential of data utilisation in
customers’ services and business processes. For more
information on the strategy, see , and on the im
-
plementation of the strategy, see .
In spite of the coronavirus pandemic and the uncertain
market situation it ushered in, Digia’s net sales grew and
need to ensure the performance of their core busi
-
in service demand. In the uncertain market, customers
were also typically more careful in evaluating the volume
of development projects and project implementation
The crisis has also revealed opportunities that have been
crisis will accelerate the digitalisation trend in the years
ahead. Read more about the impacts of the coronavirus
on Digia’s business on .
In general, the purpose of remunerations paid by the
company is to support its business strategy and promote
favourable development of shareholder value. In addi
-
tion, the aim is to ensure that the company has access to
the best possible individuals for its governing bodies and
is able to retain their commitment and motivation. The
of Directors and CEO and the decision-making order in
policy for governing bodies. There was no need for devi
-
ations from the policy or the clawback of remuneration.
and meeting fees. The amounts of the fees paid depend
-
Remunerations.
-
bonuses paid on the basis of the short-term target bonus
main emphasis of the short-term target bonus scheme
is on the company’s performance on the annual level.
However, the goal is to set the indicators to also support
the company’s long-term success. The target bonus
-
tomer satisfaction. The long-term share-based incentive
of the bonus scheme are the three-year development
remuneration paid to the CEO are described in detail
below in sections CEO’s Remuneration and Share-based
incentive scheme
The following section describes the development of the
-
development of the average remuneration of employees
and thus no consistently comparable data is available for
that or previous years.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
-
With respect to the development of the average salary
costs of all personnel, it must be kept in mind that new
the development of average salary. Average growth in
the salaries of the company’s employees outpaces salary
increases under collective agreements.
Part of Digia’s employees are also covered by a short-
term target bonus scheme or other variable salary com
-
salaries, variable salary components and any bonuses
paid at three-year intervals on the basis of the long-term
paid to the CEO. The participants of the long-term incen
-
tive scheme are primarily the CEO and the company’s se-
nior management. Long-term incentives have been paid
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
-
-
A heavy weight is assigned to the variable salary compo
-
nent of the total remuneration of the CEO through both
the short- and long-term incentives in line with perfor
-
mance-based thinking. The development of the CEO’s
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
With respect to net sales and operating result, the tar
-
gets had been set for the full year, but in such a way that
the interim assessment and payment were made after
will be deducted from the bonus assessed for the full
-
gets for customer and personnel satisfaction are annual
level targets; the realisation of the customer satisfaction
-
satisfaction target at the end of the second half-year pe
-
independently of each other, but if the full-year operating
been paid.
appropriately taken into consideration regardless of the
implementation date of any acquisition. At the same time,
the model accounts for a functional half-yearly bonus
payment cycle.
-
-
-
Directors thus did not change from the fees decided on
The table above discloses the fees that were paid or are
-
short-term target bonus scheme, and share-based
bonuses paid on the basis of the long-term incentive
short-term target bonus scheme, which is assessed
on the basis of successful performance in the full year
realised bonus for the full year. In addition, the CEO
received the company’s ordinary personnel and fringe
-
nus scheme of the CEO were based on the company’s
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
June is deducted from the full-year target bonus. The re
-
a bonus from Digia’s long-term share-based incen
-
shares and cash.
-
ed on a new three-year, long-term share-based incentive
scheme. In principle, the target group consists of the CEO
designed to align the goals of the company’s sharehold
-
ers and management in order to increase the company’s
company and its long-term objectives. The new scheme
was introduced after the earlier share-based incentive
This long-term incentive scheme covers the calendar
Directors for the three-year bonus period are met. The
targets are based on the company’s net sales and total
shareholder return (TSR). The earnings period for the net
date of the earnings period. If the terms are met, the
bonuses for both indicators based on the new scheme
will be paid at the end of the reward period in spring
resigns or if a member’s employment or post is terminat
-
-
the option to decide on possible bonuses in accordance
with the pro-rata principle.
-
Plc shares. The reward will be paid as a combination of
shares and cash.
The CEO was paid the following as salary and other ben-
CEO's remuneration structure,
paid 2020
Fixed salary 35.8%
Target bonus 14.6%
Share award 49.6%
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Digia is a growing software and service company that
helps its customers to renew and develop data-driven
business operations in our increasingly networked world.
Digia is your partner for comprehensive digitalisation. We
provide all the layers of digitalisation from business sys
-
and service management. We help our customers to
utilise data and harness it to renew their operations. The
pandemic and on implementing the overhauled strategy.
strategy period, we emphasise the potential of data utili
-
sation in our customers’ services and business processes.
level to be an even stronger partner for our customers in
the development of their business.
Digia seeks growth both organically and through acqui
-
sitions. Particularly strong growth was seen in the busi-
ness systems and customised solutions service areas.
strength with their large share of net sales.
-
-
acquire top-notch professionals for their own software
development projects straight from this network.
-
ment to acquire the entire share capital of Climber
company that provides its customers with consulting and
solutions for data-driven business development. The
acquisition concerns Climber’s operations in Sweden,
Finland, Denmark and the Netherlands. The acquisition
-
ods. During the pandemic, Digia employees work almost
entirely remotely, which has saved on the costs of travel,
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
-
-
-
vided in parentheses always refer to the corresponding
period of the previous year.
-
ed weighted average number of shares during the period
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. For
-
and
reconciliations in .
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
In the latter half of the year, the impact of the coronavirus
-
lays and reductions in scope at the customer’s request.
However, net sales of business systems and customised
The service and maintenance business accounted for
the service business’s share of net sales through service
support and maintenance agreements that track project
per cent of the company’s net sales.
-
-
tion and operating methods as well as coronavirus-relat-
million in interest-bearing liabilities. Interest-bearing lia
-
-
Total investments in tangible assets amounted to
Digia constantly invests in enhancing its long-term
our own ERP systems (Digia Enterprise and ERPs for the
monitoring solution for the continuous service needs of
customers was developed.
More information about Digia’s services and solutions
can be found on the
At the end of the review period, the total comparable
-
Skilled and enthusiastic personnel who are committed
to the objectives of our customers are behind the compa-
we continued to invest in developing our culture and strong
Digia personnel began working from home.
We are therefore seeking to maintain a sense of community
with the aid of a variety of internal virtual events and content.
We seek to provide a professional, evolving, diverse,
the best possible support to employees to guaran
-
we developed remote management by coaching our
supervisors and project managers on questions concern
-
ing leadership during the pandemic. We continued our
premise of developing Digia’s positive, goal-oriented
leadership with a coaching approach. We also arranged
of developing their ability to both build trust and manage
introduced a personnel survey to gain a better under
-
standing of our employees, as measuring the employee
Digia’s culture of continuous improvement.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Fourteen people joined Digia as a result of the NSD Con-
transaction gives our customers access to a network of
Päivi Hokkanen, Robert Ingman, Seppo Ruotsalainen and
-
elected Robert Ingman as Chair and Seppo Ruotsalainen
» Timo Levoranta, President and CEO
» Pia Huhdanmäki, Senior Vice President, HR and
Culture
» Juhana Juppo, CTO and Senior Vice President,
Horizontal Services
» Mika Kervinen, General Counsel
»
Platforms
» Tuomo Niemi, Senior Vice President, Financial
Operations
» Ari Rikkilä, Senior Vice President, Sales and
Marketing
»
» Harri Vepsäläinen, Senior Vice President,
Digital Services
You can read more about Digia’s Management Team on
the
is the Group’s auditor. Virpi Halonen, Authorised Public
General Meeting.
In February, we announced Digia’s new strategy for the
around smart digitalisation and continuous change in
digital business. Digia enables its customers to take their
Smart and responsible data utilisation in both services and
business processes comprises an important cornerstone of
strategy implementation. Data utilisation already provides
of data will be increasingly emphasised. The core of Digia’s
services, business systems, integrations and analytics.
Digia takes care of the life cycle of solutions from develop
-
ment to maintenance and also invests in the opportunities
provided by data and analytics in its own operations.
end of the strategy period.
We will bring data utilisation as
a cross-cutting theme
for all Digia’s service areas from business systems to
integrations and digital services.
We will deepen our customer rela
-
tionships and further strengthen the share accounted for
by the service business.
We will develop our op
-
erational models and solutions to improve our cost-com-
petitiveness. An essential development project in the
strategy period will be the reform of our own business
platform.
Cloud is the development and
operating platform for future services. We will continue
account security and key public cloud platforms (Mic
-
rosoft Azure, Amazon Web Services and Google Cloud
Platform).
Skilled employees are the most im
-
portant success factor for Digia. We are constantly devel-
oping Digia into a more desirable workplace by reinforcing
our culture, at the heart of which is the continuous learning
of every employee.
as promoting internal development projects.
both recruitment and additional training. Digia’s cloud
implementing transitions to cloud services for customers
and highly automated maintenance of cloud services.
We utilise major public cloud platforms in our services:
Microsoft Azure, Google Cloud and Amazon Web Ser
-
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
vices. In line with our strategy, analytics solutions and
data warehouses on these platforms comprise a key
cloud solutions.
We launched the Digia Hub operating model towards
for small entrepreneurs in the IT sector, uniting small
entrepreneurs, Digia and customers into an ecosystem
that creates value. Through this network, we can pro
-
vide small entrepreneurs with appealing tasks and our
acquired NSD Consulting Oy. Following the transaction,
-
professionals for their own software development proj
-
ects straight from this network. Following the acquisition,
-
ing on projects at the time of the transaction.
-
gia acquired Climber’s entire share capital. The transaction
data analytics and knowledge-based management are key
focus areas of the strategy, and the acquisition supports
the implementation of Digia’s growth strategy.
As part of our strategy, we develop our operational mod
-
els and solutions to improve our cost-ompetitiveness.
An essential development project in the strategy period
will be the reform of our own business platform. Project
design and the selection of the end-to-end solution were
Lahti, Jyväskylä, Oulu, Rauma, Tampere, Turku and Vaasa
Group consisted of the parent company, Digia Plc, and
its subsidiaries Digia Finland Oy, Digia Hub Oy and Digia
a subsidiary merger process in which Mirosys Oy was
merged into Mavisystems Oy, which in turn was merged
cent of all shares and votes. Nominee-registered share
-
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
cent of its capital stock.
shares, previously funded by Digia for use in the incen
-
tive system for key personnel and owned by EAM Digia
Holding Oy, remained undistributed.
Up-to-date information about the company’s major
shareholders and the distribution of their shareholdings
can be found on
-
ed to establish a new long-term share-based incentive
long-term incentive scheme at a later date. In principle,
the target group consists of the CEO and the company’s
goals of the company’s shareholders and management
in order to increase the company’s value, and to commit
term objectives.
-
the three-year bonus period are met.
The targets are based on the company’s net sales and
total shareholder return (TSR). The earnings period for
bonus period, the company’s CEO and other scheme
-
met, the bonuses for both indicators based on the new
scheme will be paid at the end of the reward period in
The cash portion of the bonus will primarily be used to
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
conditions, to decide on possible bonuses for the reward
period in accordance with the pro-rata principle.
Digia has an agreement with Evli Awards Management
Ltd for the coordination of the company’s share-based
incentive schemes, their associated share management,
and the payment of incentives to individuals in accor
-
dance with the terms and conditions of the schemes.
in the company as follows (includes the holdings of
related-parties and related-party organisations):
Digia Plc’s shares are listed on Nasdaq Helsinki under
name is DIGIA. The lowest reported share quotation in
year. The share’s trade weighted average price was EUR
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
-
holder register maintained by Euroclear Finland Ltd on
-
-
total number of shares. Only unrestricted equity may be
on how these shares are to be acquired. Treasury shares
may be bought back in disproportion to shareholders’
holdings (directed acquisition). The authorisation also
includes acquisition of shares through public trading
organised by Nasdaq Helsinki Oy in accordance with the
rules and instructions of Nasdaq Helsinki and Euroclear
Shares may be acquired in order to improve the compa
-
ny’s capital structure, to fund or complete acquisitions or
-
tive schemes, to sell on, or to be annulled. The shares
must be acquired at the market price in public trading.
The minimum price of the shares to be acquired shall be
the lowest quotation in public trading while the authori
-
price shall be the highest quotation in public trading
is otherwise authorised to decide on all terms relating
to share buyback. This authorisation supersedes that
or bonus issue of shares and the granting of special rights
Companies Act) in one or more instalments, as follows:
The 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
proposed that this authorisation should include the right
issue or special rights, including the subscription price
and its payment in cash or (partly or wholly) in capital
-
scriber’s receivables, and its recognition in the company’s
balance sheet. This authorisation supersedes that granted
More information about the AGM’s decisions is available
on the .
Consulting Oy signed an agreement whereby Digia Plc
acquired NSD Consulting Oy’s entire share capital. The NSD
-
-
-
for their own software development projects straight from
this network. Following the acquisition, NSD Consulting Oy’s
-
-
quired the share capital of the Swedish company Climber
The acquisition of the entire share capital of Climber
the terms and conditions for its completion were met and
-
that provides its customers with consulting and solutions
for data-driven business development. The acquisi
-
tion concerns Climber’s operations in Sweden, Finland,
Denmark and the Netherlands. Climber will continue as a
subsidiary with its own brand.
-
not include the company’s operations in the UK, which
-
-
using the net cash on the transaction date. The transac
-
calculation of the allocation of the purchase price will be
drafted after the completion of the transaction.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Smart data utilisation is one of the main focal points of
Digia’s strategy. The acquisition of Climber will accel
-
erate growth in Digia’s data and analytics business, pri-
marily by providing access to markets outside Finland.
The main change in Digia’s key risks and operating en-
vironment concerns the risks posed by the coronavirus
epidemic to service demand, the health of the compa
-
ny’s employees, and the valuation of trade receivables.
The company estimates that no other great changes
The company’s risks and uncertainty factors relate
changes in the company’s operating environment and
service areas. General economic trends and changes
-
sition may have an unfavourable impact on the com-
slower decision-making and the postponement or
cancellation of IT investments. Risks relating to short-
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,
the recurring fees paid for the products are spread
made for product licenses.
Implementing the growth strategy will place demands
on both the organisation and its management. The
company’s ability to recruit, retain and develop the
In line with its strategy, Digia is also seeking growth
through acquisitions. However, Digia cannot be certain
of locating suitable companies for acquisition or of
successfully integrating them.
Digia has not performed human rights-related as
-
sessments, but in the company’s opinion there are no
own operations. Digia’s supply chain does not, in the main,
-
ronmental assessment, but in the company’s opinion its
operations have a minor impact on the environment and do
-
customer projects increase in size, the risks associated
-
ery packages. Large customer projects typically involve
delivery-related sanctions whose materialisation always
poses a risk. Risks related to customer receivables are
also growing. In addition, data security and protection
business operations.
Digia primarily operates in the Finnish IT service and
keep growing in the long term. Although we believe the
Digitalisation using data will continue to be a strong trend
forced many organisations to review their operating meth
-
ods and assess opportunities to utilise digital solutions.
The crisis has also highlighted the opportunities opened
accelerate the digitalisation trend in the years ahead.
Digia sees the following strengthening trends in
the market both in the business and public sector:
» digitalisation is becoming an increasingly
important part of our customers’ core
operations;
» the world is becoming networked, and digital
platforms enable new business models;
» smart and responsible data utilisation in
business processes creates a competitive
advantage;
»
factor for services;
» the role of cloud technologies as a platform
for developing and operating services is
becoming the norm;
» a further rise in information security and
protection requirements.
Digia has consistently built its market position as a turn-
-
ing has successfully met market demand and has also
-
of business or customer account, and by the fact that a
continuous services.
Continual developments in customers’ needs coupled
with the increasing pace of technological advancement
will require continual investments in the service business,
enhanced productivity, and technologies, such as in data
utilisation and cloud technologies. Service provision re
-
quires combining technologies and people’s professional
skills. This is why Digia wants to be a desirable employer,
and why the company will continue to invest in its cor
-
porate culture, lifelong learning, and operating methods
to provide smart technological solutions that support
everyday working life.
Software, their growing intelligence and data are chang-
ing the world. Organisations’ value creation models and
people’s work patterns are evolving. In the future digital
world, we believe that corporate business value will be
generated through the smart utilisation of data in net
-
works and ecosystems. At the level of companies’ inter-
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
nal operations and individuals, we are moving towards a
symbiosis between humans and software, where people
focus on meaningful work while automation and software
handle routine tasks.
As digital business becomes an ever-more critical aspect
of our customers’ business, this strengthens the need for
-
position supports continued growth.
-
ers listed on the shareholder register maintained by Eu-
Digia is a software and service company whose service
business systems, integration and API solutions and data
utilisation and analytics solutions. We ensure the busi
-
ness and customer orientation of our implementations
through consulting and service design. We also ensure
continuously developed.
-
Service areas are described on .
Society is going digital at a rapid pace. Most of the core
functions of companies and public sector organisations
are performed using a variety of information systems and
digital services. Due to this development, IT solutions are
increasingly business critical. When processes and ser
-
vices are digitalised, an ever-growing volume of data also
becomes available on key functions, making it possible
to steer, optimise and modernise processes.
Actors in the IT sector play a major role in safeguarding
the operations and development of both society and
companies. At the same time, data security requirements
are on the rise. Due to the growing digitalisation trend,
the IT industry is also a major employer both now and
in the future.
Digia’s aim is to build sustainable digitalisation that
its corporate responsibility and listened to its stakehold
-
focus areas of corporate responsibility and set both ob
-
jectives and indicators for them. The selected objectives
Our responsibility is based on our own Code of Conduct,
the UN’s Universal Declaration of Human Rights and
Sustainable Development Goals, and the International
Labour Organisation’s (ILO) standards. However, in our
changing business environment, responsibility is based
above all else on the continual monitoring and improve
-
ment of our operations.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
CO
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
»
»
» Anti-corruption and anti-bribery policy
»
»
Digia’s Corporate Governance Statement is presented
on .
The CEO is responsible for corporate responsibility
and the CFO for responsibility reporting. The corporate
responsibility working group heads up operational
The Management Team monitors the development of
key indicators of corporate responsibility.
The company’s general risks and uncertainties are
described on .
connection with its annual reporting. The company com
-
-
nancial information set in accounting legislation.
-
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. The most
important sustainability topics in the “sustainable digital
value” focus area are solutions that promote the respon
-
sibility of our customers and the sustainable digitalisation
of society.
-
panies and society is increasing rapidly. This fast-paced
development also raises fears and uncertainties con
-
-
.
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 pro
-
tection impacts and security analyses in customer orders
-
isation of data through various measures. We will report
In addition, we aim to improve the accessibility and
user-friendliness of services. At the annual level, we
monitor and report on the growth in accessibility design
-
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.
-
petition. This project harnessed data analytics in devel-
the winning project. In this project, four types of volun
-
These personality types were validated using data from
the volunteer database of the Finnish Red Cross. The
volunteer personality types created in this project will
to the volunteers that would be most interested in and
suitable for them. This will enable the Finnish Red Cross
to get volunteers involved in its activities faster and more
High-quality data protection and security plays a key role
-
ing risks in its own operations with regard to privacy and
data protection: reputational risk, contractual risk, and the
risk of sanctions.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
We respect the privacy of our personnel, customers and
partners in all our operations. We are committed to pro
-
tecting the data, materials and devices in our possession
or our partners. We maintain a high level of data protec
-
tion 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 secu
-
rity and protection procedures as part of their induction.
protection training package. This training must be retaken
every year, not only by Digia personnel but also any sub
-
contractors working on Digia’s premises.
The data security process overhaul and its continuous
-
curity management for closer alignment with the ISO
protection at the Digia level, the data protection organi
-
security and protection obligations.
We assess our data security and protection practices
from time to time, and update our operating models as
required. The data protection organisation engages in
continuous monitoring of the risk level and keeps the
organisation informed as necessary. Data protection is
Digia also provides customers with services that meet
-
ly-audited (Facility Security Clearance) premises. We
have such premises at four locations. These premises
and operations in them are described separately as part
of the processes guiding Digia’s operations.
-
ternally by EcoVadis. EcoVadis assessment of corporate
social responsibility (CSR) indicates how well a company
has integrated CSR principles into its business and man
-
agement system. The assessment delves into questions
on CSR that are grouped into four themes: the environ
-
ment, labour and human rights, ethics and fair business
practices, and sustainable procurement.
roots are in Finland and we work with our customers both
in Finland and abroad. Our headquarters are in Helsinki
and we have seven other locations in Finland: Tampere,
Jyväskylä, Turku, Oulu, Rauma, Vaasa and Lahti. We also
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
-
ing and competence development. The most important
focus area are providing a learning community for top
Finland.
the future. We want to be a team of top professionals
who are always learning and are both highly skilled and
opportunities to pursue career paths and personal devel
-
opment and to maintain their competence at a competi-
tive level. For instance, Digia has active workplace tribes,
whose major task is to develop the competence of the
tribe members through peer activities and provide rec
-
ommendations about company-level technology policies
in the specialist area of the tribe.
Our goal is to increase the value of our personnel’s
-
nual level, we monitor and report on the percentage of
employees for whom a personal competence target has
been set. We are starting this measurement and monitor
-
them with opportunities to keep their skills up to date.
The cloud is also one of Digia’s strategic focus areas. Our
-
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
training programmes, Digia engages in cooperation with
educational institutions to support and round out their
and e-commerce.
competitive today. We estimate that the availability of
risks, along with retention of employees.
The ways in which work is done in the IT industry are also
changing quickly: small entrepreneurs are becoming
increasingly prevalent alongside traditional employment
relationships. In response to this, we launched the Digia
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
small entrepreneurs in the IT sector. Through it, we can
provide small entrepreneurs with appealing tasks and
-
professionals.
In an industry with high employee turnover and a short
-
age of talent, taking care of employee well-being is
particularly important. Digia wants to provide a safe and
healthy working environment in which everyone is valued
as themselves.
Employee well-being, equality and equal treatment of
personnel are Digia’s direct impacts on personnel, social
responsibility and human rights. They are also issues that
The most important responsibility topics in the “sustain
-
able digital life” focus area are employee well-being and
diversity, carbon-neutral Digia and an ethical operating
culture.
Continually monitoring and supporting personnel well
-
being play a key role at Digia. Well-being is supported
by, 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 suc
-
Our goal is that Digia is one of the best companies in its
industry in terms of well-being at work. We monitor and
report on the annual average days of sick leave per em
-
days. In addition, we monitor and report on our employ
-
ees’ satisfaction with team spirit and work-life balance
using a personnel survey. We aim to maintain this at a
We treat all employees equally regardless of their gen
-
such factors. The diversity of the company and its inclu
-
sive, appreciative atmosphere support the well-being
and productivity of Digia employees and their ability to
renew themselves. Diversity has been featured in our in
-
diversity through HR data and launched the Diverse Digia
Digia employees.
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,
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Gender and age breakdown of
Women 22.2%
Men 77.8%
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, 77.8%
60<, 0%
_
Women 32%
Men 68%
Other 0%
Supervisor distribution by gender 31 Dec
Percent
Supervisor distribution by age 31 Dec
Percent
< 30, 0%
30–39, 10.4%
40–49, 56.6%
50–59, 32%
60<, 1%
_
Personnel distribution by age 31 Dec
Percent
< 30, 8.3%
30–39, 27.5%
40–49, 37.3%
50–59, 21.4%
60<, 5.5%
_
Women 27.6%
Men 72.4%
Other 0%
Personnel distribution by gender 31 Dec
Percent
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
mission is to promote increased diversity and inclusivity
in the workplace. As part of this, we organise training on
diversity and inclusion for management, supervisors and
employees. We monitor and report on what percentage
of our supervisors have completed this training each
the training.
policy. It states that the requirements of the company’s
size, market position and industry should be duly
.
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 CEO is
always ultimately responsible for environmental issues
at Digia. Practical environmental issues are promoted
by the working group on corporate responsibility. Prog
-
ress is monitored by the Management Team. Digia’s
environmental policy is available on the
.
preparing the climate and environmental strategy for
ICT sector are generated indirectly by emissions from
raw materials for hardware, for instance. Digital services
require ICT infrastructure, whose construction and use
burden the climate and environment. Data transfer,
requires powerful servers and electrical energy. That
said, the report also states that ICT solutions have great
potential to reduce the carbon footprint and environ
-
mental impacts of other sectors.
We aim to be a carbon-neutral company. We monitor
from heating and cooling at all our locations in Fin
-
land and the emissions of the data centres used by
GHG Protocol.
not only energy consumption, but also waste manage
-
Digia's carbon footprint 2020
Percent
Travel, 10.3%
Premises and data
centers, 15.2%
Equipment and
recycling, 51.3%
Other procurements,
23.2%
ment, commuting, equipment procurements and recy-
cling, and emissions from other procurements, that is,
-
The largest environmental impacts of Digia’s operations
work typically poses a very low risk of environmental
damage. About half of the carbon footprint is generated
by production machinery, that is, equipment and recy
-
cling. In addition to energy consumption, the emissions of
business premises include waste management emis
-
sions.
-
sions. The changeover to district cooling at premises (in
were assessed with a personnel survey. The remote work
arrangements introduced due to the pandemic led to a
-
nent change in working methods, a part of this reduction
will most likely be permanent.
Board of Directors distribution by age 31 Dec
Percent
< 30, 0%
30–39, 0%
40–49, 17%
50–59, 50%
60<, 33%
_
Women 33%
Men 67%
Other 0%
Board of Directors distribution
by gender 31 Dec
Percent
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
e
Digia has compensated for the emissions of its own
draft a roadmap for reducing emissions throughout the
entire value. Alongside this, Digia will assess the scale of
the reductions in emissions it produces for its customers
Compliance with Digia’s is an essential
aspect of our company’s success. All of our personnel,
responsible for complying with these principles in their
work. This Code of Conduct also applies to Digia’s sub
-
contractors. In addition, Digia’s anti-bribery and anti-cor-
ethical and legal activities. Unethical behaviour is not
accepted or permitted under any circumstances. Each
subcontractors had signed Digia’s Code of Conduct.
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. We are start
-
Digia primarily operates in Finland. Our operations mainly
-
ever, Digia has foreign partners in countries where the
risk of bribery and corruption is high. We pay attention to
bribery and corruption in our dealings with partners, and
We also require our partners to commit to compliance
with anti-bribery and corruption legislation.
Digia has a channel through which any Digia employee or
-
ed to bribery and corruption. These reports can also be
made anonymously. All of the reports are forwarded to
Digia’s legal department and the Audit Committee of the
The whistle-blowing channel can be found on the com
.
areas of responsibility and start monitoring and reporting
on the aforementioned key indicators. We will also hone
our objectives and key indicators if we see a need for
improvement.
The topics, objectives and key indicators of responsibility
reported on here comprise Digia’s responsibility reporting
Financial
Statements
Main statements in the consolidated
General Information
Financial development
Human resources
Working capital
Capital structure
Other items
Formulas for the indicators
and reconciliations
statements (FAS)
Signatures to Annual Report
and Financial Statements
Auditor’s Note
Auditor’s Report
Digia’s direction
Responsible Digia
Corporate Governance
Report by the
Board of Directors
Financial statements
Digia 2020
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
139,049 131,824
252 141
-15,257 -15,065
-6,066 -5,496
-90,597 -86,648
13,279 -15,108
-124,947 -122,176
14,102 9,648
84 142
728 -682
-644 -540
13,458 9,108
-2,830 -2,017
10,627 7,090
0.40 0.27
10,627 7,090
10,627 7,090
-80 38
10,547 7,128
10,547 7,128
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
ASSETS
61,478 57,771
6,332 6,378
987 894
9,272 9,150
484 484
2 94
513 558
79,067 75,328
25,600 32,950
16,410 5,838
42,010 38,787
121,078 114,116
2,088 2,088
5,204 5,204
42,081 42,081
-343 -422
1,080 -2,850
10,627 7,090
60,737 53,190
60,737 53,190
1,115 1,250
0 23
8,626 15,553
6,657 5,719
2,000 126
18,399 22,671
13,070 13,989
790 1,315
1,383 1,384
15,041 14,384
3,431 3,556
8,226 3,626
41,942 38,254
60,341 60,925
121,078 114,116
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
10,627 7,090
16,057 6,386
2,815 -4,258
-1,684 5,050
-457 -311
32 -
-3,801 -1,662
23,589 12,294
-1,268 -213
-3,591 -10,035
10 13
60 -
-4,789 -10,236
- 3,019 -3,577
-2,326 -19,826
- 14,200
- -4,800
- 18,100
-301 -213
-2,672 -1,864
-8,317 2,020
10,482 4,078
5,838 1,733
10,482 4,078
90 27
16,410 5,838
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
2,088 42,081 5,204 -384 -1,206 47,782
7,090 7,090
- - - -38 - -38
income - - - -38 7,090 7,052
- - - - 434 434
- - - - -1,864 -1,864
-1,644 -1,644
2,088 42,081 5,204 -422 4,241 53,190
2,088 42,081 5,204 -422 4,241 53,190
10,627 10,627
- - - 80 - 80
income - - - 80 10,627 10,707
- - - - -188 -188
- - - - -2,672 -2,672
- - - - -301 -301
-3,161 -3,161
2,088 42,081 5,204 -343 11,707 60,737
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Digia is a software and service company that helps its
customers renew themselves in the networked world.
roots are in Finland and we operate with our customers
in Finland and abroad. We are building a world in which
customers and partners.
The company’s strengths are its good customer base,
-
nance and support, and the credible size of its business.
partner to its customers in their digitalisation transfor
-
mation. We forge long-term customer relationships and
develop them to grow with our customers.
Lahti, Jyväskylä, Oulu, Rauma, Tampere, Turku and Vaasa
Nasdaq Helsinki (DIGIA). Digia Plc is domiciled in Helsinki
Finnish Companies Act, shareholders have the right to
Meeting held after publication. The General Meeting may
-
pared in compliance with the International Financial
Reporting Standards (IFRS), observing the IAS and IFRS
standards, as well as SIC and IFRIC interpretations valid
International Financial Reporting Standards refer to the
standards and their interpretations approved for applica
-
tion in the EU in accordance with the procedure stipulat-
in Finnish accounting legislation and the statutes enacted
under it.
funds, which are measured at fair value. In the fair value
hierarchy, the highest level is assigned to quoted (un
-
adjusted) prices for identical assets or liabilities in active
per cent owned by the Group. Acquired subsidiaries are
consolidated using the acquisition method, according to
which the assets and liabilities of the acquired entity are
measured at fair value at the time of acquisition, and the
the acquired shareholders’ equity constitutes goodwill.
-
when control was gained, while divested subsidiaries are
included until the date of divestment. No subsidiaries
-
rounded to the nearest thousand euro, which means that
from the totals given.
the Group’s units are recognised in the currency that is
the main currency of the unit’s primary operating envi
-
-
cial statements are given in euros, which is the operating
and presentation currency of the parent company. The
Group has one subsidiary abroad, in Sweden.
Receivables and liabilities denominated in foreign cur
-
arising from foreign currency transactions are recognised
from operations are included in the corresponding items
company has been converted into euro at the weighted
from the application of the acquisition method are treat
-
ed as items adjusting consolidated shareholders’ equity.
non-controlling interests, so its earnings are attributable
solely to the shareholders of the parent company.
Digia presents the other accounting principles applied in
-
ment items in question. The table below lists the Group’s
accounting policies, information about which note they are
presented in and a reference to the relevant IFRS standard.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
The assumptions underlying management’s estimates are presented in the following notes:
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Digia reports on its business operations as one segment.
characteristics and are also similar in terms of the nature
of product and service production processes, type of
customer, and methods used in product or service
distribution or service provision. For this reason, these
service areas have been combined into a single reporting
segment.
Digia’s net sales in the review period amounted to EUR
million. The net sales of the service and maintenance
per cent of total net sales. The net sales of the project
the company’s net sales. The product business includes
licence maintenance, and it is included in both project
and service and maintenance operations. The net sales
the company’s net sales.
At the end of the reporting period, Digia reports the total
transaction price of uncompleted performance obliga
-
tions insofar as the agreement is for several years and
-
for service and maintenance agreements cannot be un
-
ambiguously determined and it is not reported because
the agreements often include transaction-based items in
income is recognised over time.
per cent of consolidated net sales.
Digia’s performance obligations are work performed by
people, licences of own products, maintenance of own
products, third-party products, maintenance of third-par
-
ty products as well as services. The typical payment term
from the approval of the delivery. The cancellation term
in agreements is typically the right of either party to can
-
cel the agreement if a party commits a material breach of
the agreement and has not remedied said breach within
are to return any deliverables received.
Net sales
EUR million
150
120
90
60
30
0
139
132
112
96
86
2016 2017 2018 2019 2020
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
projects is recognised as revenue over time in accordance
recognised over time on the basis of their percentage
of completion once the outcome of the project can be
reliably estimated. The percentage of completion is de
-
termined as the proportion of costs arising from work per-
formed for the project up to the date of review in the total
estimated project costs. If estimates of the project change,
the period during which the change becomes known and
performed by people in accordance with progress. The
from service delivery.
after which the customer has the option of withdrawing
from the project is recognised as revenue over time, but
income from a delivery project will not be recognised as
The licences of own products comprise a performance
obligation that is to be recognised as revenue at a point
in time. Revenue is recognised in one instalment when
the product has been delivered, that is, when the licences
have been installed in the customer’s testing environment.
-
tion has been completed.
SaaS (software as a service) agreements for the compa
-
ny’s own products are recognised as revenue over time
during the contract period.
Maintenance fees for Digia product licences are rec
-
ognised as revenue over time during the contract period.
-
pleted software has been approved.
With respect to third-party licences, the actual respon-
sibility for the features, further development and main-
Digia is responsible, revenue from third-party products is
recognised on a gross basis in one instalment once the
product licence has been installed in the customer’s test
environment. If a third party holds actual responsibility for
the aforementioned matters, revenue is recognised on a
net basis, that is, the margin or commission is recognised
in net sales upon installation.
Revenue accrued from maintenance of third-party prod
-
ucts and from SaaS agreements is recognised over time
either on a gross basis (Digia has actual responsibility for
maintenance) or on a net basis (a third party is responsible
for maintenance).
The warranty for third-party software is determined ac
-
cording to the terms of the third-party software.
Revenue from service agreements is recognised over time
during the agreement period. If a service agreement in
-
cludes a ticket- or hour-based performance obligation, rev-
enue is recognised over time in accordance with progress.
Revenue recognition: degree of completion of
a project recognised as revenue over time
A project recognised as revenue over time is recognised
-
pletion once the outcome of the project can be reliably
-
ment and estimation of project progress. If estimates of
the project’s outcome change, the recognised sales and
time. An onerous contract is immediately recognised as
Provisions.
Recognition: principal or agent
Digia can act as either a principal or agent for third-party
products. Whether the company is deemed to be acting
as a principal or agent for third-party products is based
on Digia management’s analysis of the legal form and
factual content of the agreements made between the
company and its suppliers. With respect to factual con
-
tent, the decisive factor is Digia’s role and responsibility
towards the end customer. If Digia is responsible, reve
-
nue is recognised from these products in one instalment
on a gross basis once the installation environment has
been completed. Maintenance revenue will also be
recognised on a gross basis, but over time. If a third party
holds actual responsibility, Digia only recognises the
margin or commission in net sales.
loss provisions had been recorded on the basis of re
-
maining work. Loss provisions have been made on the
basis of the estimated total workload. If the total work
-
load changes as a project progresses, this impacts on
the size of the loss provision.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
A provision is recognised when the Group has a legal or
factual obligation based on previous events, the realisa
-
tion of a payment obligation is probable and the amount
of the obligation can be reliably estimated.
to be gained from the agreement. The loss is recognised
in the period when it becomes known and can be es
-
product development and these product development
Government grants received as compensation for costs
are recognised in the income statement at the same time
-
under other operating income.
capital of NSD Consulting Oy. With this acquisition, Digia
-
development and, in particular, Java and .NET environ
-
ments. A key element in NSD’s operations is a profession-
-
transferred into Digia’s employ. Forty consultants were
working on projects at the time of the transaction.
Total fair values of the acquired businesses on
the acquisition date:
The purchase price was paid at the time of acquisition in
-
gent amounts subsequently payable in cash. The total
calculations. The acquired business had an impact of EUR
Accounts receivable consist of the ordinary receivables
of the acquired company, whose fair values are estimat
-
ed to correspond to their book values. Digia’s goodwill
Goodwill consisted of the value of acquired market
-
tional information on goodwill is presented in .
-
evance to the Group as a whole. If the business acquired
-
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
share capital of Starcut Oy. With this acquisition, Digia
bolstered its Digia Digital service area, which comprises
service design, analytics, e-commerce and agile applica
-
employees transferred into Digia’s employment.
-
ital stock of Accountor Enterprise Solutions Oy. With this
acquisition, Digia strengthened its Microsoft and Oracle
million. Following the acquisition, Accountor Enterprise
employ.
Total fair values of the acquired businesses on
the acquisition date:
The purchase prices were paid at the time of acquisi-
contingent amounts subsequently payable in cash. The
acquisition cost calculations. Acquisitions had an impact
the period.
Accounts receivable consist of the ordinary receivables
of the acquired companies, whose fair values are esti
-
mated to correspond to their book values. Digia’s good-
Goodwill consisted of the value of acquired market
-
tional information on goodwill is presented in .
substantial relevance to the Group either individually or
year had been included in Digia’s consolidated accounts
for the entire year, they would have accounted for about
-
All business combinations are accounted for using
the acquisition method. The purchase price consists of
a share paid at the time of acquisition and any additional
purchase price payable later. Such additional purchase
prices are paid in cash.
business combinations are measured at their fair value
at the time of acquisition. The amount of the purchase
is recognised as goodwill. Changes in the value of the
additional purchase price (liability item) are recognised
in which additional information has been received about
change in the acquisition price is recognised by adjust
-
ing the acquisition cost calculation. Acquisition-related
-
idated income statement.
Fair values of net assets acquired in business
combinations and additional purchase prices
The purchase price, additional purchase price, if any,
and net assets acquired in business combinations are
measured at fair value.
The fair value of acquired net assets is determined
based on the fair values of similar asset items, estimated
of the additional purchase price is determined based
on a forecast of the parameters in accordance with the
terms of the additional purchase price over the period
In the view of management, the used estimates and
fair value.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
recognise impairment losses.
In addition to information technology, IT costs include
the cost of communication solutions. Voluntary personnel
-
-
services. Audit fees are included in other operating
-
pany’s own products carried out largely by in-house
during the development phase.
-
-
for the period is calculated using the corporate income
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
- -
-
-
-
-
-
-
-
ences arise from obligatory provisions, the share-based
incentive scheme, and revaluation at fair value in con
-
to the parent company’s shareholders by the weighted
average of shares outstanding during the accounting
period. Own shares held by the company are not included
in the calculation of the weighted average of shares out
-
standing. When calculating diluted earnings per share,
the impact of the share-based incentive scheme is taken
into consideration.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
-
-
costs of the management incentive scheme. Information
based payments. Additional information on the remu
-
neration of key employees is also provided in
Related party transactions.
Digia’s pension schemes are arranged through
and Sweden.
plans, and payments are recognised in the income state
-
ment during the period to which the payment applies.
hourly pay. Part of the employees are covered by target
bonus schemes. The key indicators of the target bonus
scheme for salespeople are the value of agreements or
the value of agreements and net sales. The key indicators
of the short-term target bonus scheme are consolidated
Digia has incentive schemes where payments are made
-
ed through these arrangements are measured at fair
value on the date of their being granted and recognised
vesting period. The impact of these arrangements on the
balance sheet as a change in shareholders’ equity.
-
ed to establish a new long-term share-based incentive
three-year bonus period are reached. In principle, the
scheme is designed to align the goals of the company’s
shareholders and management in order to increase the
-
ment to the company and its long-term objectives. The
scheme replaced the previous share-based incentive
The targets of the scheme are based on the company’s
net sales and total shareholder return (TSR). The earn
-
ings period for the turnover and TSR indicators is three
During the bonus period, the company’s CEO and other
scheme participants are entitled to a bonus equivalent to
are met, the bonuses for both indicators based on the
new scheme will be paid at the end of the reward period
The cash portion of the bonus will primarily be used to
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
option to decide on possible bonuses in accordance
with the pro-rata principle.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
presented below.
*
No transactions were carried out under the share-based
over and cash portions paid on the basis of the earlier
cash portion of the bonus payment is also recorded as a
bonuses include the shares and the equivalent cash sum.
-
-
- -
- -
The targets of the share-based scheme are based on
the Group’s net sales and total shareholder return (TSR).
recognised annually, assessing the total cost impact of
the scheme at the level estimated by management. If
estimates of the total cost impact of the scheme change,
the cost is amended in the period during which the
Immediate costs relating to the acquisition of Digia Plc’s
own shares are recognised as deductions in sharehold
-
ers’ equity.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Digia ensures optimal working capital through the turnover of accounts receivable and payable.
Additional information on accounts receivable is provided in
Other liabilities include project-related advance payments from customers.
The carrying amounts of accounts payable and other liabilities are considered to correspond to their fair values
due to the short-term nature of these items..
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
The Group’s capital management aims at supporting
company business by means of optimal management of
the capital structure, ensuring normal operating con
-
ditions and increasing shareholder value with a view to
net gearing, the interest-bearing net liabilities are divided
by shareholders’ equity as indicated in the consolidated
balance sheet. Gearing includes interest-bearing net
liabilities less cash and cash equivalents. Interest-bearing
The share of liabilities of total shareholders’ equity was as
Additional information on shareholders’ equity is
and on interest-bearing liabilities
Accounts receivable and other receivables
Accounts receivable are mainly attributable to invoicing
of Finnish companies and organisations. At the end of
a payment plan has been agreed with an individual cus
-
tomer. In the company’s view, this receivable does not
pose an elevated risk of credit losses.
The book value of accounts receivable, receivables
from customer agreements and security deposits for
rental dues is a reasonable estimate of their fair value.
Their balance sheet values best correspond with the
of credit risks. Receivables from customer agreements
comprise completed work that has not been invoiced.
which it has been agreed that invoices will be sent after
sub-deliveries are accepted. After invoicing, receivables
from customer agreements are transferred to accounts
receivable. Essential items included in prepayments and
accrued income are associated with the accrual of statu
-
Other shares include holiday cabins usable by personnel
and golf shares.
by applying the fair value option at the time of initial
are recognised on the transaction date.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Amortised cost:
Financial assets measured at amortised cost comprise
accounts receivable and receivables from customer
agreements. Due to their nature, the carrying amount of
short-term accounts receivable and other prepayments
and accrued income is their fair value minus the amount
of credit losses.
value changes are recognised in the period in which they
arise. Unlisted shares and participations owned by Digia
Accounts receivable and other receivables are measured
at nominal value. The credit loss provision is based on
each accounts receivable category and contractual
receivables.
In addition to anticipated credit loss provisions,
million has been recognised.
The Group’s credit loss provision is estimated based
receivables from customers in long-term projects over
their entire period of validity (). Digia applies a
accounts receivable. Thus the estimate of the credit loss
losses for the entire period are calculated by multiplying
the gross carrying amount of unpaid accounts receivable
and receivables from customers on long-term projects by
-
Cash and cash equivalents are recognised at fair value.
liabilities and accounts payable. Digia did not use deriv
-
that are described in more detail below.
Euribor plus a margin.
The loan covenant related to the Group’s solvency and
-
facilities at its disposal. More information on these facilities
is provided in on liquidity risk.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Accounts payable have not been included in the table above because the carrying amount of accounts payable is
close to their fair value.
-
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
payments and the repayment of loan capital:
Accounts payable are recognised in the balance sheet at their original cost, which
considering the maturities of the liabilities.
the accounts at fair value on the basis of the consideration received. Financial liabilities
are included in non-current and current liabilities and may be interest-bearing or non-
A more detailed description of leases is provided in
-
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
-
-
Financial risk management consists, for instance, of
the planning and monitoring of solvency of liquid assets,
the management of investments, receivables and liabilities
denominated in a foreign currency, and the management
of interest rate risks on non-current interest-bearing
liabilities.
-
company. The unit is responsible for the Group’s liquidity,
Group’s risk management seeks to minimise the adverse
rate risk, credit risk, and liquidity risk. The general prin
-
ciples of risk management are approved by the parent
-
ness segments is responsible for their practical imple-
mentation.
The Group’s interest rate risk is primarily associated with
long-term bank loans whose interest rates are linked
to Euribor rates. Changes in market interest rates have
annum. Interest rate developments are monitored and
reported on regularly in the Group. Possible interest rate
hedges will be made with the appropriate instruments. At
not have any hedging instruments in force.
The Group’s customers are mostly well-known Finnish
and foreign companies with well-established credit, and
loss risks. The Group continuously assesses the increase
in credit risk after initial recognition on the basis of chang
-
es in the default risk.
for customers and investment transactions with the aim
of minimising credit losses. Services and products are
only sold to companies with a good credit rating. The
counterparties in investment transactions are companies
with a good credit rating. Credit loss risks associated with
commercial operations are primarily the responsibility
services in a centralised manner and ensures that the
Group’s guidelines are observed with regard to terms of
payment and collateral required.
maturity analysis of accounts receivable and receivables
-
sented in . Credit loss risks increased slightly in
of some customers due to the pandemic. The Group has
The Group’s currency risks related to the receivables,
liabilities and investments of the Swedish subsidiary as
well as the Finnish companies’ accounts receivable and
-
The Group aims to continuously estimate and monitor
operations and repaying loans falling due. The Group
maintains its immediate liquidity with the help of cash
management solutions such as Group accounts and credit
facilities at banks. The amount of unwithdrawn standby
liabilities is presented in
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
-
remained undistributed and were under the management
-
-
stricted shareholders’ equity reserve comprises invest-
ments similar to shareholders’ equity and the subscription
enter it in shareholders’ equity.
deducted from distributable shareholders’ equity before
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Digia’s goodwill has been generated by several acquisi-
Goodwill is recognised from the acquisition as
» the fair value of the consideration paid at
the time of acquisition
» the amount of any non-controlling interest
in the object of acquisition
» the fair value of any previously held non-
controlling interest in the object of acquisition,
in the case of a phased business combination
and liabilities assumed.
No amortisation is booked on goodwill but it is tested
annually for impairment. For this purpose, goodwill is al-
located to cash generating units. Goodwill is recognised at
the original cost from which the impairment is deducted.
Goodwill impairment testing is performed at Group level,
with the Group as the cash-generating unit. The tables
below show the distribution of goodwill and balance
sheet values of other asset items subject to testing at
the end of the reporting period:
the following assumptions:
-
olated using the same assumptions as for the forecast
period. The discount rate used is the average cost of
capital (WACC).
-
cant estimates used in forecasts with sensitivity analyses.
The most important factors in goodwill sensitivity anal
-
assumptions, but also the growth percentage of the
had been used as the growth percentage of the termi
-
per cent had been used as the discount rate, instead of
the value subject to testing. If the operating margin were
correspond to the value subject to testing.
In addition, a sensitivity analysis of net sales growth and
sensitivity analysis, goodwill requires either net sales to
-
ments in assessing the development of the Group’s net
of changes in market conditions on the Group’s earnings
estimates of growth in future years.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
On the balance sheet date, it is estimated whether there is evidence that the value
of a tangible or intangible asset may have been impaired. If there is evidence of impair-
ment, the amount recoverable from the asset is estimated. In addition, the recoverable
amount is estimated annually on goodwill regardless of whether there is an indication
of impairment or not. The need for impairment is reviewed at the level of cash gener
-
ating units, which refers to the lowest level of unit that is mainly independent of other
income statement. An impairment loss recognised for goodwill will not be reversed
under any circumstances.
- -
- - -
-
- - -
-
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Property, plant and equipment (PPE) are carried at cost less accumulated depreciation
and impairment. Assets are depreciated over their estimated useful lives. Depreciation
is not booked for land areas. Estimated useful lives are as follows:
The residual value and useful life of assets is reviewed on each balance sheet date and,
Capital gains and losses on elimination and the transfer of property, plant and equipment
-
-
- - - - -
-
-
- - -
-
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Asset items related to customer agreements comprise
customer agreements and technologies with a limited
useful life. They are entered in the balance sheet under
income statement by straight-line depreciation over their
Other intangible assets comprise capitalised IT software
licenses. The depreciation period of licences is three
years.
-
criteria for development costs.
measurement, and disclosure of leases that have been
complied with. Under the standard, the lessee shall
recognise lease contracts in the balance sheet as a lease
liability and related right-of-use asset. At the commence
-
ment date of the contract, the lessee recognises a liabili-
ty for its obligation to make lease payments and an asset
must be recognised for the liability in the balance sheet
and depreciation for the asset.
Digia leases its business premises, company cars, equip
-
ment and multifunction devices, and thus the adoption
of the standard has had an impact on the accounting
treatment of these items. The bulk of the lease liability
and right-of-use asset in the balance sheet comprises
have not been recognised in the balance sheet. In addi
-
tion, Digia does not recognise an asset and liability in
the balance sheet for leases of low value assets.
been recorded as adjustments in the opening balance
corresponding lease liability are based on
the company’s estimate of the duration of current lease
-
Two parties are considered related if one party can
operations. The related parties of the Group’s parent
company, Digia Plc, include the following entities:
» subsidiaries
»
Group’s Management Team, including the CEO
(key management)
» the family members of said persons, and
» companies under the control of related parties.
The amounts presented in the tables below correspond
question. Wages and salaries include any share-based
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
The Group’s incentive schemes are described in
Share-based payments and in the separate report on
corporate governance.
Transactions involving purchases of goods and services
consisted mainly of marketing services. Transactions in
-
of services to related parties are based on the Group’s
current prices. The Group has no related-party loans or
voluntary pension arrangements.
The streamlining of the Group’s structure was com-
merged into Mavisystems Oy, which in turn was merged
New or amended standards and interpretations have no
-
the share capital of the Swedish company Climber Inter
-
with a bank loan.
scheme
The CEO and the Group’s other management are provided
with pension coverage under the Finnish Employees’
Pension Act (TyEL).
have received the following salaries and fees:
CEO
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
and reconciliations
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
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.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
EUR
EUR
ASSETS
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
EUR
EUR
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
EUR
-
-
-
Digia Plc is the parent company of the Digia Group. It is
-
Digia Finland Oy, Digia Hub Oy and Digia Sweden Ab.
prepared in accordance with Finnish Accounting Standards
-
reduced to correspond to fair value as necessary.
as the Group’s administrative company and charged the
Group companies for services rendered.
The Group’s pension schemes are arranged through
a pension insurance company. Pension premiums and
-
Digia has a share bonus scheme where payments are
made either in equity instruments or in cash. In the
to the statement, the terms and conditions of a share
of the bonus period. Therefore, the service commitment
required of an employee under a share bonus scheme is
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
scheme is to be considered to have been rendered on
the one hand and received on the other by the com
-
pany at the end of the bonus period, at which point the
employee shall have an irrevocable right to the shares
immediate cost less planned depreciation and
amortisation.
The economic lives underlying planned depreciation
and amortisation are as follows:
-
Shareholders listed on the shareholder register main
-
tained by Euroclear Finland Oy on the dividend reconcili-
EUR
EUR
EUR
EUR
EUR
-
EUR
EUR
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
EUR
Financial Position, in accordance with the principle of
-
EUR
-
- - - -
EUR
- -
-
-
-
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
EUR
- - - -
- - - -
EUR
EUR
EUR
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
EUR
EUR
as well as accrued provisions for salaries and fees.
EUR
EUR
EUR
-
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
and Financial Statements
Päivi Hokkanen Seppo Ruotsalainen Outi Taivainen
Timo Levoranta
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
the consolidated balance sheet, income statement,
statement of comprehensive income, statement of
as well as the parent company’s balance sheet, income
In our opinion
•
-
-
tional Financial Reporting Standards (IFRS) as adopted
by the EU
•
position in accordance with the laws and regulations
Finland and comply with statutory requirements.
• Our opinion is consistent with the additional report sub
-
mitted to the Audit Committee.
We conducted our audit in accordance with good auditing
practice in Finland. Our responsibilities under good auditing
practice are further described in the Auditor’s Responsibili
-
ties 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
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 regu
-
lations applicable in Finland regarding these services, and
we have not provided any prohibited non-audit services
non-audit services that we have provided have been dis
-
closed in
We believe that the audit evidence we have obtained is
of materiality. The materiality is determined based on
our professional judgement and is used to determine the
we set is based on our assessment of the magnitude of
misstatements that, individually or in aggregate, could
-
or possible misstatements that in our opinion are mate
-
statements.
Key audit matters are those matters that, in our profes-
-
ion thereon, and we do not provide a separate opinion on
-
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.
The key audit matter
-
-
How the matter was addressed in the audit
Our audit procedures related to goodwill impairment
tests included, among others:
This document is an English translation of the Finnish auditor’s report.
Only the Finnish version of the report is legally binding.
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
• we have analyzed the reasonable of assumptions un-
-
ability, discount rate and forecasted growth rate.
• we have involved KPMG valuation specialists in audit.
They have tested accuracy of the technical model
and analyzed the reasonableness of the assumptions
underlying the goodwill impairment tests compared to
the market information.
• we have compared the assumptions used in previous
year’s impairment tests, especially in respect of net
assess the accuracy of Digia’s estimation process.
• we have considered the accuracy and adequacy of
the disclosures in respect of goodwill and impairment
testing.
-
-
Our objectives are to obtain reasonable assurance on
material misstatement, whether due to fraud or error, and
to issue an auditor’s report that includes our opinion. Rea
-
sonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with
good auditing practice will always detect a material mis
-
fraud or error and are considered material if, individually
As part of an audit in accordance with good auditing
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement
-
ror, design and perform audit procedures responsive to
and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omis
-
sions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the pur
-
the parent company’s or the group’s internal control.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
•
-
rectors’ and the President and CEO’s use of the going
concern basis of accounting and based on the audit ev
-
doubt on the parent company’s or the group’s ability
to continue as a going concern. If we conclude that
attention in our auditor’s report to the related disclo
-
are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or
conditions may cause the parent company or the group
to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content
statements give a true and fair view.
•
-
for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit
opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
-
identify during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical re
-
quirements regarding independence, and communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of
Digia’s direction
Responsible Digia
Corporate Governance
Board of
Directors’ report
Financial statements
Digia 2020
of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s re
-
port unless law or regulation precludes public disclosure
-
es, we determine that a matter should not be communi-
cated in our report because the adverse consequences
Information on our audit engagement
total period of uninterrupted engagement. Virpi Halonen,
Authorised Public Accountant, KHT has acted as the re
-
sponsible auditor of the audit engagement.
Other Information
responsible for the other information. The other informa
-
information included in the Annual Report, but does not
Directors prior to the date of this auditor’s report, and the
-
not cover the other information.
our responsibility is to read the other information identi
-
statements or our knowledge obtained in the audit, or oth
-
erwise appears to be materially misstated. With respect
of Directors has been prepared in accordance with the
applicable laws and regulations.
been prepared in accordance with the applicable laws
and regulations.
If, based on the work we have performed on the other
information that we obtained prior to the date of this audi
-
tor’s report, we conclude that there is a material misstate-
ment of this other information, we are required to report
that fact. We have nothing to report in this regard.
Virpi Halonen
Authorised Public Accountant, KHT
