Risks and Uncertainties

The main operational risks monitored under Digia’s risk management are related to customers, personnel, projects, data security, integration, incorporeal rights and goodwill.

Short-term uncertainties are related to any major changes occurring in the company’s core business areas.

Contrary to previous years, the company no longer has any business risk related to mobile contract engineering services. Instead, the company made a significant investment into Qt technology and related business opportunities with the Qt business acquisition completed in 2012. If the Qt business fails to develop according to the company’s expectations, the investments and related costs may have a significant impact on the company’s short-term profitability. Possible changes in the competitive scenario or market for that business may also impact the company’s future net sales and profitability.

If the Eurozone debt crisis and global economic recession continue, they may affect customers’ investment decisions and liquidity, and thereby the company’s sales and profits. Increased uncertainty has already been detected in customers’ investment decisions, having delayed planned project schedules for a while, but recent developments have not been in any way alarming.

Furthermore, the growth in customer project sizes increases the risks related to projects and their profitability.

Risks and their management are described on the company’s website at www.digia.com.