ACCOUNTING POLICIES | |||
The operating segments are reported in a manner consistent with the internal reporting provided to the Group Executive Management, which has been identified as Tietoevry\u2019s chief operating decision maker being responsible for allocating resources and assessing performance of the operating segments as well as deciding on strategy. | |||
The Group Executive Management assesses the profitability of segments principally on the basis of adjusted operating profit (EBITA). Operating profit (EBIT) is, however, also an essential measure and is disclosed in this segment note as it is most consistent with the result reported in accordance with IFRS. Transactions between the segments are made on a market-terms basis. | |||
Eliminations include internal revenue between operating segments and Group function sales of internal services to the business. Non-allocated costs relate to Global management and Support functions and are shown separately in the operating profit (EBIT). |
EUR million | 2022 | 2021 | Change % |
Tietoevry Create | 847.9 | 756.3 | 12 |
Tietoevry Banking | 521.3 | 475.8 | 10 |
Tietoevry Care | 231.4 | 221.9 | 4 |
Tietoevry Industry | 272.6 | 303.4 | -10 |
Tietoevry Transform | 470.6 | 467.9 | 1 |
Tietoevry Connect | 879.9 | 907.5 | -3 |
Eliminations | -295.6 | -309.5 | -4 |
Group total | 2\u00a0928.1 | 2\u00a0823.4 | 4 |
EUR million | 2022 | 2021 | Change % |
Tietoevry Create | 90.2 | 88.6 | 2 |
Tietoevry Banking | 39.8 | 38.1 | 5 |
Tietoevry Care | 72.2 | 68.3 | 6 |
Tietoevry Industry | 51.9 | 149.8 | -65 |
Tietoevry Transform | 31.6 | 40.8 | -23 |
Tietoevry Connect | 21.1 | 38.5 | -45 |
Non-allocated costs | -40.2 | -42.1 | -5 |
Group total | 266.5 | 382.0 | -30 |
% | 2022 | 2021 | Change pp |
Tietoevry Create | 10.6 | 11.7 | -1 |
Tietoevry Banking | 7.6 | 8.0 | 0 |
Tietoevry Care | 31.2 | 30.8 | 0 |
Tietoevry Industry | 19.0 | 49.4 | -30 |
Tietoevry Transform | 6.7 | 8.7 | -2 |
Tietoevry Connect | 2.4 | 4.2 | -2 |
Operating margin (EBIT) | 9.1 | 13.5 | -4 |
EUR million | 2022 | 2021 |
Tietoevry Create | 18.3 | 16.0 |
Tietoevry Banking | 21.8 | 25.2 |
Tietoevry Care | 3.5 | 1.0 |
Tietoevry Industry | 2.5 | 5.0 |
Tietoevry Transform | 13.8 | 7.1 |
Tietoevry Connect | 1.8 | 6.1 |
Group total | 61.6 | 60.5 |
End of period | Average1) | ||||
2022 | 2021 | Change % | Share % | 2022 | |
Tietoevry Create | 8\u00a0989 | 8\u00a0653 | 4 | 37 | 8\u00a0871 |
Tietoevry Banking | 3\u00a0454 | 3\u00a0495 | -1 | 14 | 3\u00a0500 |
Tietoevry Care | 1\u00a0480 | 1\u00a0346 | 10 | 6 | 1\u00a0425 |
Tietoevry Industry | 1\u00a0682 | 1\u00a0819 | -8 | 7 | 1\u00a0703 |
Tietoevry Transform | 3\u00a0271 | 3\u00a0395 | -4 | 13 | 3\u00a0381 |
Tietoevry Connect | 4\u00a0766 | 4\u00a0994 | -5 | 20 | 4\u00a0832 |
Group functions | 678 | 687 | -1 | 3 | 689 |
Group total | 24\u00a0320 | 24\u00a0389 | 0 | 100 | 24\u00a0401 |
End of period | Average | |||||
2022 | 2021 | Change % | Share % | 2022 | 2021 | |
Sweden | 4\u00a0029 | 4\u00a0286 | -6 | 17 | 4\u00a0097 | 4\u00a0321 |
Norway | 3\u00a0990 | 4\u00a0274 | -7 | 16 | 4\u00a0102 | 4\u00a0373 |
Finland | 3\u00a0134 | 3\u00a0130 | 0 | 13 | 3\u00a0151 | 3\u00a0102 |
India | 4\u00a0499 | 4\u00a0592 | -2 | 18 | 4\u00a0601 | 4\u00a0362 |
Czech Republic | 2\u00a0694 | 2\u00a0505 | 8 | 11 | 2\u00a0631 | 2\u00a0478 |
Ukraine | 2\u00a0037 | 2\u00a0123 | -4 | 8 | 2\u00a0135 | 1\u00a0996 |
Latvia | 1\u00a0072 | 999 | 7 | 4 | 1\u00a0041 | 970 |
China | 1\u00a0066 | 842 | 27 | 4 | 978 | 503 |
Poland | 776 | 710 | 9 | 3 | 720 | 734 |
Other | 1\u00a0023 | 928 | 10 | 4 | 947 | 985 |
Group total | 24\u00a0320 | 24\u00a0389 | 0 | 100 | 24\u00a0401 | 23\u00a0824 |
Onshore countries | 11\u00a0687 | 12\u00a0192 | -4 | 48 | 11\u00a0869 | 12\u00a0296 |
Offshore countries | 12\u00a0633 | 12\u00a0197 | 4 | 52 | 12\u00a0533 | 11\u00a0528 |
Group total | 24\u00a0320 | 24\u00a0389 | 0 | 100 | 24\u00a0401 | 23\u00a0824 |
EUR million | 2022 | 2021 | Change % |
Tietoevry Create | 6.7 | 8.0 | -16 |
Tietoevry Banking | 4.8 | 4.1 | 15 |
Tietoevry Care | 0.9 | 0.7 | 31 |
Tietoevry Industry | 0.6 | 1.0 | -40 |
Tietoevry Transform | 1.6 | 0.5 | > 100 |
Tietoevry Connect | 40.9 | 43.4 | -6 |
Group functions | 48.4 | 53.5 | -10 |
Group total | 103.8 | 111.2 | -7 |
EUR million | 2022 | 2021 | Change % |
Tietoevry Create | 0.1 | 0.3 | -56 |
Tietoevry Banking | 2.8 | 3.3 | -17 |
Tietoevry Care | 1.6 | 0.9 | 85 |
Tietoevry Industry | 0.3 | 1.1 | -73 |
Tietoevry Transform | 0.2 | 0.1 | 70 |
Tietoevry Connect | 6.4 | 4.1 | 54 |
Group functions | 0.4 | 1.8 | -79 |
Group total | 11.7 | 11.6 | 1 |
EUR million | 2022 | 2021 | Change % |
Tietoevry Create | 10.1 | 10.5 | -4 |
Tietoevry Banking | 21.6 | 21.7 | -1 |
Tietoevry Care | 0.2 | 0.2 | -4 |
Tietoevry Industry | 6.2 | 6.3 | -1 |
Tietoevry Transform | \u2014 | \u2014 | \u2014 |
Tietoevry Connect | 8.7 | 8.7 | 0 |
Group functions | \u2014 | \u2014 | \u2014 |
Group total | 46.7 | 47.3 | -1 |
ACCOUNTING POLICIES | |||
Revenue is measured based on the consideration to which the Group expects to be entitled in a contract with a customer and excludes consideration collected on behalf of third parties. The Group recognizes revenue when it transfers control of a good or service to a customer. | |||
The Group typically provides customers with a variety of comprehensive services. The individual service delivery contracts are often structured under a common frame contract where general terms for the service delivery to the customer are defined. The content of the delivery, performance obligations and pricing, are defined in the service delivery contracts. Management judgement is used to determine the basis for the revenue recognition; either an individual service delivery contract or a group of combined contracts. | |||
Revenue from service contracts is based on service volumes or time and materials and the performance obligations are recognized over the accounting period in which the services are rendered or project is delivered. The services are generally satisfied and the control transferred to the customer over time given that either the customer simultaneously receives and consumes the benefits provided by the Group, or the Group\u2019s performance does not create an asset with an alternative use for the Group, in which case there is an enforceable right to payment for work completed to date. |
In the majority of the businesses providing continuous services, time and material projects and consulting, the performance obligations satisfied are invoiced on a monthly basis. At the time of invoicing, a receivable is recognized by the Group as this represents the point in time at which the right to consideration becomes unconditional, as only the passage of time is required before payment is due. The standard payment term is 30 days according to the Group\u2019s Credit Policy. | |||
Goods, typically distinct licenses, that provide a right to use the software, are invoiced on delivery. The license revenue is recognized at a point in time when the license is delivered, the legal title has passed, the customer has accepted the license and has access to the licensed software. Distinct licenses, that provide a right to access the software, are recognized over the contract period. Contract assets or liabilities do not typically arise in the businesses described above. | |||
For contracts comprising fixed-price projects, revenue is recognized based on the actual service provided by the reporting date as a proportion of the total services to be provided. This is determined based on the cost of actual labour hours spent relative to the total expected cost of labour hours, as it best reflects the transfer of control to the customer. Estimates of revenues, costs or progress towards completion are revised if circumstances change and any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by the management. Invoicing and customer payments in the fixed-price projects follow the payment schedule defined in the customer contract. If the services rendered by the Group exceed the payment, a contract asset is recognized, and if the payments exceed the services rendered, a contract liability is recognized. | |||
The customer contracts of the Group typically comprise several of the business models described above. The most appropriate presentation on how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors is considered to be the disaggregation of revenue by segment, presented in the segment information\u00a0 note 5. The disaggregation of customer sales from long-term fixed-price contracts by segment represents the revenue from contracts for which the risks are different compared to other contracts with customers. | |||
Some contracts include delivery of hardware together with a variety of services from the Group. Hardware is usually provided by another service provider. The installation of hardware is simple, does not include an integration service from the Group and could be performed by another party. It is, therefore, accounted for as a separate performance obligation. In these contracts, Tietoevry acts as an agent, if the Group does not obtain control of the hardware provided by another party before it is transferred to the customer, or as a principal if the control is obtained. |
Where the contracts include multiple performance obligations, the transaction price is allocated to each performance obligation based on the stand-alone selling prices, which are observable from the contracts and represent prices for services rendered in similar circumstances to similar customers. Revenue from contracts granting a discount retrospectively to the customer is recognized based on the price specified in the contract, net of the estimated discounts. Discounts are estimated based on management's experience of the earlier purchases of the customers under similar contracts. This estimation is regularly updated during the contract period. Revenue is only recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. | |||
In settlement agreement cases, consideration paid to customers is reduced from revenue when a settlement agreement is signed with the customer. Consideration received from customers is recognized as revenue or other operating income depending on the facts and circumstances. | |||
The Group grants assurance type of warranties which guarantee that the delivery complies with agreed specifications. These are accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. | |||
The Group does not have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. Consequently, the Group does not adjust any of the transaction prices for the time value of money. | |||
The Group capitalizes material costs of set-up activities related to transition or implementation projects in the initial phase of continuous operating service contracts, when the criteria for capitalization according to IFRS 15 are met. Management judgement has been used when developing an internal guidance on what kind of tasks are defined as set-up activities in the Group. The set-up activities do not result in the transfer of a promised good or service and are not identified as a performance obligation to the customer. The capitalized costs of a contract are amortized during the period when the revenue for related continuous operating service contract is recognized. |
EUR million | Note | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 | 1\u00a0Jan\u00a02021 |
Trade receivables | 14 | 408.9 | 372.8 | 358.9 |
Contract assets | 14 | 52.0 | 52.5 | 50.1 |
Contract liabilities, non-current1) | 17 | 16.9 | 29.2 | 29.4 |
Contract liabilities, current1) | 17 | 67.2 | 73.5 | 74.7 |
EUR million | 2022 | 2021 |
Capitalized set-up costs on 31 Dec | 11.8 | 21.2 |
Amortization of capitalized set-up costs | 8.4 | 6.6 |
ACCOUNTING POLICIES | |||
Government grants | |||
Government grants are recognized as other operating income on a systematic basis over the periods necessary to match them with the related costs that they are intended to compensate. | |||
Research and development costs | |||
Research costs are expensed when incurred. Development costs related to major new software products are capitalized as intangible assets when it is probable that the development will generate future economic benefits for the Group, and certain criteria related to commercial and technological feasibility are met. Development costs comprise service and solution development focusing on, for example, industry-specific software, customer experience management and security services, as well as cloud services. Additionally, the costs for related internal development, e.g. automation in infrastructure services, are included in development costs. |
EUR million | 2022 | 2021 |
Gain on sale of tangible assets, subsidiaries and business operations | 1.4 | 104.1 |
Change in fair value of derivatives | 9.2 | 7.4 |
Joint venture management fees | 1.3 | 1.6 |
Other1) | 38.3 | 11.9 |
Total | 50.2 | 125.1 |
EUR million | 2022 | 2021 |
Audit fees | 1.3 | 1.3 |
Audit related | 0.1 | 0.2 |
Tax advisory | 0.1 | 0.1 |
Other services | 0.4 | 0.2 |
Total | 1.9 | 1.8 |
EUR million | 2022 | 20212) |
Wages and salaries1) | 1\u00a0247.9 | 1\u00a0174.3 |
Post-employment benefits | ||
Defined contribution plans | 100.1 | 104.5 |
Defined benefit plans | -2.1 | 1.5 |
Other benefits | 23.8 | 20.2 |
Other pay-related statutory social costs | 219.7 | 217.8 |
Share-based payments | 6.9 | 8.7 |
Other personnel expenses | 0.8 | 0.0 |
Total | 1\u00a0597.2 | 1\u00a0527.0 |
2022 | 2021 | |||
EUR thousand | President and CEO | Leadership team | President and CEO | Leadership team |
Salaries and benefits | 853.5 | 3\u00a0079.9 | 842.3 | 3\u00a0938.1 |
Bonuses1) | 698.5 | 1\u00a0053.4 | 484.4 | 1\u00a0224.6 |
Share-based payments | 514.4 | 906.2 | 922.2 | 1\u00a0808.4 |
Statutory pensions | 136.5 | 356.6 | 250.3 | 483.4 |
Supplementary pensions | 205.1 | 286.3 | 205.1 | 354.1 |
Total | 2\u00a0408.0 | 5\u00a0682.4 | 2\u00a0704.3 | 7\u00a0808.6 |
EUR thousand | 2022 | 2021 |
Board members at 31\u00a0Dec 2022 | ||
Tomas Franz\u00e9n, Chairperson Board and RC | 169.3 | 168.2 |
Timo Ahopelto, Deputy Chairperson | 99.6 | 98.4 |
Liselotte H\u00e4gertz Engstam | 79.7 | 85.4 |
Harri-Pekka Kaukonen, Chairperson ARC | 102.9 | 109.4 |
Angela Mazza Teufer | 64.1 | 61.8 |
Katharina Mosheim | 78.9 | 70.6 |
Niko Pakal\u00e9n | 86.1 | 82.2 |
Endre Rangnes | 78.1 | 79.8 |
Leif Teksum1) | 2.4 | 78.2 |
Rohan Haldea2) | \u2014 | 60.2 |
Salim Nathoo3) | \u2014 | 70.2 |
Tommy Sander Aldrin, personnel rep.1) | \u2014 | 15.0 |
Ola Hugo Jordh\u00f8y, personnel rep.1) | \u2014 | 15.0 |
Anders Palklint, personnel rep.1) | \u2014 | 15.0 |
Robert Spinelli, personnel rep.4) | 15.0 | \u2014 |
Ilpo Waljus, personnel rep. | 15.0 | 15.0 |
Total | 791.1 | 1\u00a0024.4 |
Performance Share Plan | |||
2020\u20132022 | 2021\u20132023 | 2022\u20132024 | |
Plan launched | 18 December 2019 | 16 February 2021 | 16 February 2022 |
Performance period | 2020\u20132022 | 2021\u20132023 | 2022\u20132024 |
Vesting conditions | Total Shareholder Return of Tietoevry share (TSR)\u00a0 and Tietoevry's Earnings per Share (EPS). Valid employment or director agreement of a key employee upon the reward payment. | Total Shareholder Return of Tietoevry share (TSR), strategic target related to Tietoevry's growth and Tietoevry's Earnings per Share (EPS). Valid employment or director agreement of a key employee upon the reward payment. | Relative and absolute Total Shareholder Return of Tietoevry share (TSR), Revenue growth and ESG target. Valid employment or director agreement of a key employee upon the reward payment. |
Exercised | In shares and cash in 2023 | In shares and cash in 2024 | In shares and cash in 2025 |
Number of participants on 31\u00a0Dec\u00a02022 | 156 | 99 | 523 |
Other | On 31\u00a0Dec 2022, rewards to be paid correspond to the value of approximate number of 521 292 Tietoevry gross shares. | On 31\u00a0Dec 2022, rewards to be paid correspond to the value of approximate number of 464 180 Tietoevry gross shares. | On 31\u00a0Dec 2022, rewards to be paid correspond to the value of approximate number of 980 904 Tietoevry gross shares. |
Restricted Share Plan | |||
2020\u20132022 | 2021\u20132023 | 2022\u20132024 | |
Plan launched | 18 December 2019 | 16 February 2021 | 16 February 2022 |
Vesting period | 2020\u20132022 | 2021\u20132023 | 2022\u20132024 |
Vesting conditions | Valid employment or director agreement of a key employee upon the reward payment. | ||
Exercised | In shares and cash in 2023 | In shares and cash in 2024 | In shares and cash in 2025 |
Number of participants on 31\u00a0Dec\u00a02022 | 371 | 421 | 157 |
Other | On 31\u00a0Dec 2022, rewards to be paid correspond to the value of approximate number of 221 352 Tietoevry gross shares. | On 31\u00a0Dec 2022, rewards to be paid correspond to the value of approximate number of 216 680 Tietoevry gross shares. | On 31\u00a0Dec 2022, rewards to be paid correspond to the value of approximate number of 61 800 Tietoevry gross shares. |
EUR million | 2022 | 2021 |
Equity-settled share-based incentive plans | 6.9 | 8.7 |
Social costs settled in cash1) | 1.3 | 1.4 |
Total | 8.2 | 10.1 |
ACCOUNTING POLICIES | |||
Tax expense for the period includes current taxes of the Group companies based on taxable profit for the year, together with tax adjustments for previous years and changes in deferred taxes. Tax is recognized in the income statement, except to the extent that it relates to items recognized in other comprehensive income or directly in equity, in which case the related income tax is also recognized in other comprehensive income or directly in equity, respectively. The share of results in joint ventures is reported in the income statement based on the net result and thus, including the income tax effect. | |||
Deferred\u00a0 income tax is recognized, using the liability method, on temporary differences between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements as well as on tax loss carry forwards. Deferred income tax is determined using the tax rates and laws which have been enacted or substantively enacted at the reporting date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred taxes are not recognized on temporary differences related to investments in subsidiaries to the extent that they will probably not be reversed in the foreseeable future. | |||
A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. The deferred tax assets and liabilities arising from consolidation are recognized in the consolidated statement of financial position if it is probable that the related tax effects will occur. |
ACCOUNTING ESTIMATES AND JUDGEMENTS | |||
At each reporting date, management estimates the amount of probable future taxable profits against which unused tax losses can be utilized. As the actual profits may differ from the forecasts, the change will affect the taxes in future periods. | |||
The group operates globally and is, therefore subject to changing tax laws in multiple jurisdictions. The interpretation of tax legislation requires management judgement, and the applied interpretations may include uncertainties. |
EUR million | 2022 | 2021 |
Current taxes | 43.7 | 48.9 |
Change of deferred taxes | 5.8 | 7.3 |
Taxes for prior years | 4.7 | 6.0 |
Total | 54.2 | 62.2 |
Reconciliation of income tax expense | ||
Profit before taxes | 242.8 | 353.8 |
Tax calculated at the domestic corporation tax rate of 20% | 48.6 | 70.8 |
Effect of different tax rates in foreign subsidiaries | 2.4 | 3.8 |
Taxes for prior years | 4.7 | 6.0 |
Deferred taxes from previous year | -4.9 | -4.2 |
Tax effect of non-deductible expenses and tax exempt income | 2.3 | -16.3 |
Tax on foreign dividend distribution | 2.9 | 4.1 |
Other items | -1.8 | -2.0 |
Total | 54.2 | 62.2 |
Effective tax rate, % | 22.3 | 17.6 |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Deferred tax assets | 14.6 | 19.1 |
Deferred tax liabilities | 10.7 | 9.1 |
Net deferred tax asset | 3.9 | 10.0 |
EUR million | 1\u00a0Jan\u00a02022 | Charged to income statement | Charged to other comprehensive income | Other changes | 31\u00a0Dec 2022 |
Deferred tax asset | |||||
Provisions | 3.6 | -0.4 | \u2014 | -0.2 | 3.0 |
Employee benefits | 11.8 | -0.7 | -0.4 | -0.5 | 10.2 |
Depreciation difference | 7.7 | 3.2 | \u2014 | -0.1 | 10.8 |
Other temporary difference | 9.8 | -1.6 | \u2014 | -0.1 | 8.1 |
Revenue recognition | 9.5 | -2.8 | \u2014 | -0.4 | 6.3 |
Tax losses carried forward | 49.6 | -9.8 | \u2014 | -0.8 | 39.0 |
Total gross | 92.0 | -12.1 | -0.4 | -2.1 | 77.4 |
Offset against deferred tax liabilities | -72.9 | -62.8 | |||
Total net | 19.1 | 14.6 | |||
Deferred tax liability | |||||
Intangible assets | 64.1 | -14.4 | \u2014 | -1.3 | 48.4 |
Untaxed reserves | 9.5 | 2.0 | \u2014 | -0.8 | 10.7 |
Other temporary difference | 8.4 | 6.1 | \u2014 | -0.1 | 14.4 |
Total gross | 82.0 | -6.3 | \u2014 | -2.2 | 73.5 |
Offset against deferred tax assets | -72.9 | -62.8 | |||
Total net | 9.1 | 10.7 | |||
Net deferred tax asset | 10.0 | -5.8 | -0.4 | 0.1 | 3.9 |
ACCOUNTING POLICIES | |||
Basic Earnings per share (EPS) is calculated by dividing the net profit attributable to the shareholders of the Parent company by the weighted average number of shares in issue during the year, excluding shares purchased by Tietoevry and held as own shares. | |||
Diluted earnings per share is calculated by adjusting the weighted average number of shares outstanding during the year with the shares estimated to be delivered based on the share-based incentive plans. |
2022 | 2021 | |
Net profit for the financial year attributable to owners of the Parent company (EUR million) | 188.6 | 291.6 |
Earnings per share (EUR) | ||
Basic | 1.59 | 2.46 |
Diluted | 1.59 | 2.46 |
Weighted average number of shares during the year | ||
Basic | 118\u00a0405\u00a0657 | 118\u00a0408\u00a0223 |
Effect of dilutive share-based incentive plans | 203\u00a0952 | 276\u00a0585 |
Diluted | 118\u00a0609\u00a0609 | 118\u00a0684\u00a0808 |
ACCOUNTING POLICIES | |||
Intangible assets other than goodwill are recognized initially at cost. An intangible asset is recognized only if it is probable that the future economic benefits attributable to the asset will flow to the Group and the cost of the asset can be measured reliably. All other costs are expensed as incurred. | |||
After initial recognition, intangible assets are measured at cost less amortizations and accumulated impairment losses. Intangible assets are amortized over their useful lives with the straight-line method. Assets that are subject to amortization are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount of the intangible asset exceeds its recoverable amount, an impairment loss equal to the difference is recognized in profit or loss.\u00a0 | |||
Internally developed software | |||
Development costs related to major new software products are capitalized as intangible assets when it is probable that the development will generate future economic benefits for the Group, and certain criteria related to commercial and technological feasibility are met. Development projects are analysed individually to determine the moment when the project has reached a milestone after which capitalization of development costs can start. Capitalization is subject to CFO's approval. Only costs which are directly attributable to the development are capitalised. |
Subsequent to initial recognition, these costs are measured at cost less accumulated amortization and impairment losses. The amortization period for internally developed software depends on the technology renewal cycle and contract duration. Internally developed software for which amortization has not yet started are tested for impairment on an annual basis by comparing the asset's carrying amount with its recoverable amount. If the carrying amount exceeds the recoverable amount, an impairment loss equal to the difference is recognized in profit or loss.\u00a0 | |||
Intangible assets recognised from acquisitions | |||
Intangible assets acquired in business combinations are measured at fair value at the acquisition date. These are usually customer or technology related and have finite useful lives. | |||
Gains and losses on disposal of intangible assets are included in other operating income and expenses. | |||
The Group applies the following useful lives: |
Years | |
Software acquired separately | 3 |
Other intangible assets | 3\u201310 |
Technology related intangible assets recognized at fair value from acquisitions | 3\u201315 |
Customer related intangible assets recognized at fair value from acquisitions | 2\u201310 |
Trademark recognized at fair value from acquisitions | 6 |
Internally developed software (capitalized development costs) | 5\u201315 |
Goodwill | |||
Goodwill arising on a business combination represents the excess of the aggregate of the consideration transferred, the amount of non-controlling interests in the acquiree and previously held equity interest in the acquiree over the fair value of the Group\u2019s share of the identifiable net assets acquired. Goodwill is measured at cost less accumulated impairment losses. It is not amortized, but tested for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purpose of impairment testing, goodwill is allocated to the operating segments of the Group, which are the cash generating units (CGU) expected to benefit from the synergies of the business combination. If the carrying amount of goodwill allocated to the operating segments exceeds its recoverable amount, an impairment loss equal to the difference is recognized in profit or loss. The recoverable amount is the higher of the value in use represented by the net present value of future cash flows and the fair value less costs to sell. Impairment losses on goodwill are not reversed. | |||
In respect of joint ventures, goodwill is included in the carrying amount of the investment. |
ACCOUNTING ESTIMATES AND JUDGEMENTS | |||
Estimates are made when determining the fair values of assets acquired in a business combination. The valuation requires management to determine the appropriate valuation technique and inputs for fair value measurements, such as discount rate. | |||
Determining whether goodwill is impaired requires an estimation of the value-in-use of the cash- generating units (CGU) to which goodwill has been allocated. The value-in-use calculation requires management to estimate the future cash flows expected to arise from the CGUs and an appropriate discount rate to calculate present value. | |||
While management believes that the used estimates and assumptions are sufficiently reasonable, there are uncertainties which could materially affect the valuations. | |||
Tietoevry has reorganized its reporting structure in 2022 and reallocated the goodwill to the new CGUs which are the operating segments of the Group. The reallocation of the goodwill has required management judgement. |
EUR million | Goodwill | Software acquired separately | Intangible assets recognized from acquisitions1) | Internally developed software2) | Other | Advance payments | Total |
Acquisition cost 1\u00a0Jan\u00a02022 | 1\u00a0943.7 | 49.6 | 308.6 | 285.3 | 38.2 | 3.5 | 2\u00a0628.9 |
Additions | \u2014 | 2.7 | \u2014 | 37.2 | 0.9 | 2.7 | 43.5 |
Disposals | \u2014 | -25.2 | \u2014 | \u2014 | -9.7 | -0.7 | -35.7 |
Reclassifications | \u2014 | 3.6 | \u2014 | -1.9 | 0.1 | -2.2 | -0.5 |
Translation differences | -97.1 | -1.1 | -17.3 | -12.2 | -0.1 | -0.0 | -128.0 |
Acquisition cost 31\u00a0Dec 2022 | 1\u00a0846.5 | 29.5 | 291.3 | 308.3 | 29.3 | 3.3 | 2\u00a0508.2 |
Accumulated amortization and impairments 1\u00a0Jan\u00a02022 | \u2014 | -42.5 | -115.4 | -103.3 | -35.3 | -0.7 | -297.3 |
Disposals | \u2014 | 25.2 | \u2014 | \u2014 | 9.7 | 0.7 | 35.7 |
Amortization | \u2014 | -6.0 | -46.7 | -4.8 | -0.9 | \u2014 | -58.5 |
Impairments | \u2014 | \u2014 | \u2014 | -18.7 | \u2014 | \u2014 | -18.7 |
Reclassifications | \u2014 | -0.4 | \u2014 | \u2014 | 0.3 | \u2014 | 0.0 |
Translation differences | \u2014 | 1.0 | 8.5 | 4.3 | 0.1 | \u2014 | 13.9 |
Accumulated amortization and impairments 31\u00a0Dec 2022 | \u2014 | -22.6 | -153.6 | -122.6 | -26.1 | 0.0 | -324.9 |
Carrying value 1\u00a0Jan\u00a02022 | 1\u00a0943.7 | 7.1 | 193.2 | 182.0 | 2.8 | 2.8 | 2\u00a0331.6 |
Carrying value 31\u00a0Dec 2022 | 1\u00a0846.5 | 6.9 | 137.7 | 185.7 | 3.2 | 3.3 | 2\u00a0183.3 |
EUR million | Goodwill | Software acquired separately | Intangible assets recognized from acquisitions1) | Internally developed software2) | Other | Advance payments | Total |
Acquisition cost 1\u00a0Jan\u00a02021 | 1\u00a0974.4 | 48.2 | 301.7 | 240.0 | 40.3 | 1.3 | 2\u00a0605.9 |
Additions | \u2014 | 5.0 | \u2014 | 42.6 | 1.3 | 2.7 | 51.7 |
Disposals | -77.6 | -5.0 | -2.7 | -6.0 | -3.8 | \u2014 | -95.1 |
Reclassifications | \u2014 | 1.2 | \u2014 | -0.9 | 0.0 | -0.4 | -0.1 |
Translation differences | 46.9 | 0.2 | 9.6 | 9.6 | 0.3 | -0.0 | 66.6 |
Acquisition cost 31\u00a0Dec\u00a02021 | 1\u00a0943.7 | 49.6 | 308.6 | 285.3 | 38.2 | 3.5 | 2\u00a0628.9 |
Accumulated amortization and impairments 1\u00a0Jan\u00a02021 | \u2014 | -42.4 | -67.8 | -97.3 | -38.3 | -0.7 | -246.6 |
Disposals | \u2014 | 5.0 | 2.1 | 3.8 | 3.7 | \u2014 | 14.6 |
Amortization | \u2014 | -4.5 | -47.3 | -6.6 | -0.4 | \u2014 | -58.9 |
Reclassifications | \u2014 | -0.4 | \u2014 | 0.5 | 0.0 | \u2014 | 0.1 |
Translation differences | \u2014 | -0.2 | -2.4 | -3.7 | -0.3 | 0.0 | -6.5 |
Accumulated amortization and impairments 31\u00a0Dec\u00a02021 | \u2014 | -42.5 | -115.4 | -103.3 | -35.3 | -0.7 | -297.3 |
Carrying value 1\u00a0Jan\u00a02021 | 1\u00a0974.4 | 5.8 | 233.9 | 142.7 | 1.9 | 0.5 | 2\u00a0359.3 |
Carrying value 31\u00a0Dec\u00a02021 | 1\u00a0943.7 | 7.1 | 193.2 | 182.0 | 2.8 | 2.8 | 2\u00a0331.6 |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Tietoevry Create | 575.5 | 600.8 |
Tietoevry Banking | 325.9 | 344.6 |
Tietoevry Care | 273.5 | 289.1 |
Tietoevry Industry | 197.5 | 208.8 |
Tietoevry Transform | 171.1 | 180.5 |
Tietoevry Connect | 303.0 | 319.9 |
Total | 1\u00a0846.5 | 1\u00a0943.7 |
2022 | Five-year period 2023\u20132027 | |
Terminal growth rate % | Pre-tax WACC % | |
Tietoevry Create | 1.0 | 11.8 |
Tietoevry Banking | 1.0 | 9.0 |
Tietoevry Care | 1.0 | 8.7 |
Tietoevry Industry | 1.0 | 8.8 |
Tietoevry Transform | 1.0 | 8.9 |
Tietoevry Connect | 1.0 | 8.7 |
ACCOUNTING POLICIES | |||
Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. | |||
Land is not depreciated. Property, plant and equipment acquired in business combinations are measured at fair value at the acquisition date. Depreciation is recognized according to plan based on the estimated economic lives of the individual assets and accounted for in accordance with the straight-line method. The assets' residual useful lives are reviewed, and adjusted if appropriate, at each reporting date. | |||
Assets that are subject to depreciation are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss equal to the difference is recognized in profit or loss.\u00a0 | |||
The group applies the following useful lives: |
Years | |
Buildings and structures | 25\u201340 |
Data processing equipment1) | 1\u20135 |
Other machinery and equipment | 5 |
Other tangible assets | 5 |
EUR million | Land | Buildings and structures | Machinery and equipment | Other tangible assets | Advance payments and work in progress | Total |
Acquisition cost 1\u00a0Jan\u00a02022 | 1.2 | 3.8 | 408.3 | 61.5 | 12.7 | 487.5 |
Additions | \u2014 | \u2014 | 29.4 | 4.5 | 16.2 | 50.0 |
Disposals | \u2014 | \u2014 | -50.3 | -1.5 | -1.1 | -52.9 |
Reclassifications | \u2014 | \u2014 | 10.6 | 1.9 | -8.3 | 4.1 |
Translation differences | \u2014 | \u2014 | -12.3 | -1.7 | -0.3 | -14.3 |
Acquisition cost 31\u00a0Dec 2022 | 1.2 | 3.8 | 385.6 | 64.7 | 19.1 | 474.4 |
Accumulated depreciation and impairments 1\u00a0Jan\u00a02022 | \u2014 | -2.0 | -356.9 | -40.3 | -0.9 | -400.1 |
Disposals | \u2014 | \u2014 | 49.1 | 1.5 | 0.9 | 51.6 |
Depreciation | \u2014 | -0.1 | -29.9 | -7.4 | \u2014 | -37.4 |
Impairments | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Reclassifications | \u2014 | \u2014 | -3.5 | -0.1 | 0.0 | -3.6 |
Translation differences | \u2014 | \u2014 | 10.9 | 1.4 | \u2014 | 12.3 |
Accumulated depreciation and impairments 31\u00a0Dec 2022 | \u2014 | -2.1 | -330.3 | -44.9 | 0.0 | -377.2 |
Carrying value 1\u00a0Jan\u00a02022 | 1.2 | 1.8 | 51.4 | 21.2 | 11.8 | 87.4 |
Carrying value 31\u00a0Dec 2022 | 1.2 | 1.7 | 55.4 | 19.8 | 19.1 | 97.2 |
EUR million | Land | Buildings and structures | Machinery and equipment | Other tangible assets | Advance payments and work in progress | Total |
Acquisition cost 1\u00a0Jan\u00a02021 | 1.2 | 3.8 | 398.8 | 72.5 | 8.0 | 484.3 |
Additions | \u2014 | \u2014 | 19.1 | 0.7 | 10.4 | 30.2 |
Disposals | \u2014 | \u2014 | -30.0 | -1.4 | -0.1 | -31.5 |
Reclassifications | \u2014 | \u2014 | 17.2 | -10.7 | -5.7 | 0.8 |
Translation differences | \u2014 | \u2014 | 3.3 | 0.4 | 0.0 | 3.6 |
Acquisition cost 31\u00a0Dec\u00a02021 | 1.2 | 3.8 | 408.3 | 61.5 | 12.7 | 487.5 |
Accumulated depreciation and impairments 1\u00a0Jan\u00a02021 | \u2014 | -1.9 | -340.3 | -44.3 | -0.9 | -387.4 |
Disposals | \u2014 | \u2014 | 29.6 | 1.4 | \u2014 | 31.0 |
Depreciation | \u2014 | -0.1 | -33.3 | -6.7 | \u2014 | -40.0 |
Impairments | \u2014 | \u2014 | 0.0 | \u2014 | \u2014 | 0.0 |
Reclassifications | \u2014 | \u2014 | -10.3 | 9.5 | 0.0 | -0.8 |
Translation differences | \u2014 | \u2014 | -2.6 | -0.3 | \u2014 | -2.8 |
Accumulated depreciation and impairments 31\u00a0Dec\u00a02021 | \u2014 | -2.0 | -356.9 | -40.3 | -0.9 | -400.1 |
Carrying value 1\u00a0Jan\u00a02021 | 1.2 | 1.9 | 58.4 | 28.2 | 7.1 | 96.9 |
Carrying value 31\u00a0Dec\u00a02021 | 1.2 | 1.8 | 51.4 | 21.2 | 11.8 | 87.4 |
ACCOUNTING POLICIES | |||
Inventories are measured at the lower of cost and net realisable value. Cost is determined based on average cost and net realisable value represents the estimated selling price under normal commercial conditions less estimated costs of sale. |
No ECL is calculated for the portion of trade receivables, where the credit risk is covered by collateral, such as credit insurance. When calculating ECL for contract assets, Tietoevry uses the ECL rate set for \u201cnot yet due\u201d invoices in the allowance matrix. Trade receivables under business model sell are accounted at fair value through profit or loss (FVTPL) and, therefore, those are not subject to ECL provisions. | |||
Trade receivables are permanently written off when there is no reasonable expectation to recovery. Subsequent recoveries of amounts previously written off are credited to income statement. Other interest-bearing receivables are initially recognized at fair value and subsequently at amortized cost during the contract period. The carrying amount of the trade and other receivables approximate to their fair values due to their short-term nature. |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Non-current | ||
Prepaid expenses and accrued income | 9.0 | 12.7 |
Other | 11.4 | 22.6 |
Total | 20.4 | 35.4 |
Current | ||
Trade receivables at amortized cost | 408.9 | 372.8 |
Prepaid expenses and accrued income | ||
Contract assets | 52.0 | 52.5 |
Licence fees | 30.6 | 30.6 |
Other prepaid expenses | 28.2 | 34.2 |
Other interest-bearing receivables | 13.6 | 13.8 |
Other | 14.4 | 13.0 |
Total | 547.8 | 517.0 |
31\u00a0Dec\u00a02021 | Not yet due | Overdue 1\u20137 days | Overdue 8\u201330 days | Overdue 31\u201360 days | Overdue 61\u201390 days | Overdue over 90 days | Grand Total |
EUR million | |||||||
Gross trade receivables subject to impairment | 195.8 | 12.8 | 3.8 | 3.4 | 1.4 | 3.7 | 220.9 |
Average expected credit loss rate applied | -0.18% | -0.27% | -1.40% | -6.11% | -7.64% | -63.29% | -1.40% |
Collective loss allowance | -0.3 | \u2014 | -0.1 | -0.2 | -0.1 | -2.3 | -3.1 |
Individual loss allowance | \u2014 | \u2014 | 0.0 | 0.0 | 0.0 | 0.3 | 0.2 |
Total loss allowance | -0.4 | -0.1 | -0.1 | -0.2 | -0.1 | -2.1 | -2.9 |
Trade receivables net of ECL | 195.4 | 12.7 | 3.8 | 3.2 | 1.3 | 1.6 | 218.0 |
Trade receivables covered by collateral | 131.8 | 17.0 | 0.2 | 0.8 | 0.6 | 4.3 | 154.7 |
Total trade receivables at amortized cost | 327.3 | 29.8 | 4.0 | 4.0 | 1.8 | 5.9 | 372.8 |
Not yet due | Not yet due | |
EUR million | 2022 | 2021 |
Contract assets | 52.1 | 52.6 |
Average ECL applied | -0.25% | -0.06% |
Collective loss allowance | -0.1 | \u2014 |
Net contract assets | 52.0 | 52.5 |
Trade receivables | Contract assets | |||
EUR million | 2022 | 2021 | 2022 | 2021 |
1 Jan | 2.9 | 4.2 | 0.0 | 0.0 |
Translation differences | -0.1 | 0.1 | \u2014 | \u2014 |
Impairment losses recognized | 3.7 | 3.2 | 0.1 | \u2014 |
Amounts written off this year as uncollectible | \u2014 | -0.2 | \u2014 | \u2014 |
Impairment losses reversed | -3.7 | -4.3 | \u2014 | \u2014 |
Disposed companies | -0.1 | -0.1 | \u2014 | \u2014 |
31 Dec | 2.7 | 2.9 | 0.1 | 0.0 |
EUR million | 2022 | 2021 |
Service cost | ||
Current service cost | 2.7 | 3.4 |
Settlement gains | -6.9 | -1.9 |
Conversion costs | 2.1 | \u2014 |
Net interest | -0.2 | -0.3 |
Total | -2.3 | 1.1 |
Amounts recognized in other comprehensive income | ||
Remeasurement | ||
Gains (-)/losses (+) from change in demographic assumptions | 0.0 | 0.1 |
Gains (-)/losses (+) from change in financial assumptions | -4.5 | -1.4 |
Gains (-)/losses (+) from experience adjustments | -0.5 | 0.5 |
Gains (-)/losses (+) on plan assets | 3.0 | 2.7 |
Total | -2.0 | 1.9 |
EUR million | 2022 | 2021 |
Defined benefit obligations | 28.4 | 38.7 |
Defined benefit plan assets | -0.6 | -0.7 |
Net liability | 27.8 | 38.0 |
2022 | 2021 | |||
EUR million | % | EUR million | % | |
In Sweden, plan assets are comprised as follows | ||||
Equity instruments | 0.2 | 19.8 | 2.1 | 26.6 |
Debt instruments | 0.5 | 41.8 | 3.2 | 40.8 |
Property | 0.1 | 9.8 | 0.7 | 8.9 |
Other | 0.4 | 28.6 | 1.9 | 23.7 |
Total | 1.2 | 100.0 | 7.9 | 100.0 |
% | 2022 | 2021 |
Finland | ||
Discount rate | 3.1 | 1.0 |
Future salary increases | 4.3 | 3.7 |
Future pension increases | 2.8 | 2.3 |
Inflation rate | 2.6 | 2.0 |
Sweden | ||
Discount rate | 3.7 | 1.9 |
Future salary increases | 2.0 | 2.2 |
Future pension increases | 2.0 | 2.2 |
Inflation rate | 2.0 | 2.2 |
Norway | ||
Discount rate | 3.0 | 1.9 |
Future salary increases | 3.5 | 2.8 |
Growth in the basic state pension (G) | 3.3 | 2.5 |
Change in assumption | Increase in assumption | Decrease in assumption | |
Impact on defined benefit obligation in Finland | |||
Discount rate | 0.5% | -7.3% | 8.1% |
Future pension increase | 0.5% | 7.6% | -6.9% |
Life expectancy | +1 year | 4.9% | |
Impact on defined benefit obligation in Sweden | |||
Discount rate | 0.5% | -11.9% | 13.4% |
Future salary increase | 0.5% | 15.5% | -14.4% |
Future pension increase | 0.5% | 9.9% | -9.2% |
Life expectancy | +1 year | 4.3% | |
Impact on defined benefit obligation in Norway | |||
Discount rate | 0.5% | -1.8% | 2.1% |
Future salary increase | 0.5% | 0.2% | -0.2% |
Future pension increase | 0.5% | 1.6% | \u2014% |
Life expectancy | +1 year | 1.1% |
ACCOUNTING POLICIES | |||
A provision is a liability of uncertain timing or amount which is recognized when the entity has a present legal or constructive obligation as a result of a past event and it is more likely than not that an outflow of economic benefits will be required to settle the obligation and the amount of the obligation can be measured reliably. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation and are split between amounts expected to be settled within 12 months at the end of the reporting period and amounts expected to be settled later (non-current). | |||
Provisions for restructuring | |||
Restructuring provision is only recognized when a formal plan has been approved and the implementation of it has either commenced or the plan has been announced. | |||
Provisions for loss-making contracts | |||
Provision is recognised for any unavoidable net loss arising from the contract. | |||
Other provisions | |||
Other provisions include employee related provisions other than restructuring as well as warranty provisions. |
ACCOUNTING ESTIMATES AND JUDGEMENTS | |||
Provisions require management to assess the best estimate of the future costs needed to settle the present obligation at the reporting date. The actual costs may differ from the estimated costs. |
EUR million | Provisions for restructuring | Provisions for loss-making contracts | Other provisions | Total |
1\u00a0Jan\u00a02022 | 11.3 | 3.4 | 7.7 | 22.4 |
Translation differences | -0.7 | -0.2 | -0.2 | -1.0 |
Increases in provisions | 33.4 | 0.6 | 3.5 | 37.6 |
Use of provisions | -21.7 | -3.0 | -1.7 | -26.4 |
Reversal of provisions | -8.5 | -0.2 | -2.1 | -10.8 |
31\u00a0Dec 2022 | 13.9 | 0.6 | 7.2 | 21.7 |
of which | ||||
Non-current | 0.6 | \u2014 | 2.0 | 2.6 |
Current | 13.3 | 0.6 | 5.2 | 19.1 |
Total | 13.9 | 0.6 | 7.2 | 21.7 |
EUR million | Provisions for restructuring | Provisions for loss-making contracts | Other provisions | Total |
1\u00a0Jan\u00a02021 | 24.4 | 12.9 | 11.5 | 48.8 |
Translation differences | 0.0 | -0.2 | 0.1 | -0.1 |
Increases in provisions | 10.1 | 0.7 | 2.1 | 13.0 |
Use of provisions | -21.1 | -9.3 | -3.9 | -34.2 |
Reversal of provisions | -2.2 | -0.7 | -2.1 | -5.0 |
31\u00a0Dec\u00a02021 | 11.3 | 3.4 | 7.7 | 22.4 |
of which | ||||
Non-current | 0.8 | 0.0 | 2.0 | 2.8 |
Current | 10.6 | 3.4 | 5.7 | 19.6 |
Total | 11.3 | 3.4 | 7.7 | 22.4 |
ACCOUNTING POLICIES | |||
Trade and other payables are presented as current liabilities if they are due to be settled within 12 months from the end of the reporting period. They are recognized at their fair value and subsequently measured at amortized cost using the effective interest method. | |||
The carrying amount of the trade and other payables approximate their fair values due to their short- term nature. |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Non-current | ||
Contract liabilities1) | 16.9 | 29.2 |
Accruals | 4.2 | 5.5 |
Total | 21.0 | 34.7 |
Current | ||
Trade payables | 233.9 | 260.8 |
Contract liabilities1) | 67.2 | 73.5 |
Accrued liabilities | ||
Employee-related accruals | 193.2 | 210.5 |
Interest | 4.3 | 3.8 |
Other accrued expenses1) | 32.7 | 40.6 |
Value added tax liabilities | 54.5 | 51.0 |
Payroll tax liabilities | 30.9 | 32.1 |
Total | 616.7 | 672.3 |
EUR million | Loans and Cash | Estimated cash flows | Leases | Total foreign exchange exposure | External foreign exchange hedges | Transaction exposure sensitivity1) | Foreign exchange hedge sensitivity1) | Net effect gain/(loss) |
SEK | ||||||||
31\u00a0Dec 2022 | -96.2 | 24.0 | \u2014 | -72.2 | 72.7 | 9.6 | -7.3 | 2.3 |
31\u00a0Dec\u00a02021 | -125.6 | 23.4 | \u2014 | -102.2 | 103.6 | 12.6 | -10.4 | 2.2 |
NOK | ||||||||
31\u00a0Dec 2022 | -25.5 | 16.8 | \u2014 | -8.7 | 5.0 | 2.6 | -0.5 | 2.1 |
31\u00a0Dec\u00a02021 | 17.1 | 10.8 | \u2014 | 27.9 | -31.0 | -1.7 | 3.1 | 1.4 |
PLN | ||||||||
31\u00a0Dec 2022 | -1.1 | -23.6 | 1.4 | -23.3 | 23.5 | \u2014 | -2.4 | -2.4 |
31\u00a0Dec\u00a02021 | -0.7 | -8.8 | 0.7 | -8.8 | 8.9 | \u2014 | -0.9 | -0.9 |
CZK | ||||||||
31\u00a0Dec 2022 | -1.6 | -52.6 | 2.6 | -51.6 | 54.2 | -0.1 | -5.4 | -5.5 |
31\u00a0Dec\u00a02021 | -0.2 | -47.6 | 5.9 | -41.9 | 48.4 | -0.6 | -4.8 | -5.4 |
INR | ||||||||
31\u00a0Dec 2022 | \u2014 | -34.9 | \u2014 | -34.9 | 34.7 | \u2014 | -3.5 | -3.5 |
31\u00a0Dec\u00a02021 | \u2014 | -31.1 | \u2014 | -31.1 | 31.0 | \u2014 | -3.1 | -3.1 |
USD | ||||||||
31\u00a0Dec 2022 | -1.1 | 2.8 | \u2014 | 1.7 | -3.0 | 0.1 | 0.3 | 0.4 |
31\u00a0Dec\u00a02021 | -0.6 | 0.5 | \u2014 | -0.1 | -0.5 | 0.1 | 0.1 | 0.1 |
Other | ||||||||
31\u00a0Dec 2022 | -1.1 | \u2014 | \u2014 | -1.1 | \u2014 | 0.1 | \u2014 | 0.1 |
31\u00a0Dec\u00a02021 | -1.9 | \u2014 | \u2014 | -1.9 | \u2014 | 0.2 | \u2014 | 0.2 |
31\u00a0Dec\u00a02022 EUR million | Amount | Average rate, % | Rate sensitivity1) |
Capital markets2) | -398.4 | 1.8 | \u2014 |
Money markets | 244.6 | 0.4 | 0.1 |
Other loans | -348.0 | 2.9 | -3.2 |
Other receivables | 28.0 | 3.1 | \u2014 |
Leasing | -207.4 | 6.0 | 2.1 |
31\u00a0Dec\u00a02021 EUR million | Amount | Average rate, % | Rate sensitivity1) |
Capital markets2) | -397.8 | 1.8 | \u2014 |
Money markets | 318.7 | 0.2 | 0.1 |
Other loans | -360.2 | 0.9 | -3.3 |
Other receivables | 28.8 | 3.5 | \u2014 |
Leasing | -200.9 | 4.3 | -2.0 |
31\u00a0Dec 2022 | Amount drawn | Amount available | Maturity structure | ||||||
EUR million | 2023 | 2024 | 2025 | 2026 | 2027 | 2028\u2013 | |||
Loans | Bonds | 400.0 | \u2014 | \u2014 | 100.0 | 300.0 | \u2014 | \u2014 | \u2014 |
Commercial paper programme | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |
Revolving credit facility | \u2014 | 250.0 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |
Liabilities towards joint ventures | 3.5 | \u2014 | 3.5 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |
European Investment Bank | 65.4 | \u2014 | 13.1 | 13.1 | 13.1 | 13.1 | 13.1 | \u2014 | |
Syndicated term loan | 254.2 | \u2014 | 80.0 | 174.2 | \u2014 | \u2014 | \u2014 | \u2014 | |
Other loans | 28.7 | \u2014 | 14.1 | 8.6 | 4.7 | 1.2 | 0.1 | \u2014 | |
751.8 | 250.0 | 110.7 | 295.9 | 317.7 | 14.2 | 13.2 | \u2014 | ||
Interest payments | \u2014 | \u2014 | 17.1 | 13.2 | 7.5 | 1.0 | 0.5 | \u2014 | |
Trade payables | Outflow | 233.9 | \u2014 | 233.9 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Other liabilities | Lease liabilities | 241.2 | \u2014 | 61.8 | 47.1 | 32.7 | 23.7 | 19.1 | 56.8 |
Total | 1\u00a0226.9 | 250.0 | 423.4 | 356.2 | 357.9 | 38.9 | 32.8 | 56.8 |
31\u00a0Dec\u00a02021 | Amount drawn | Amount available | Maturity structure | ||||||
EUR million | 2022 | 2023 | 2024 | 2025 | 2026 | 2027\u2013 | |||
Loans | Bond | 400.0 | \u2014 | \u2014 | \u2014 | 100.0 | 300.0 | \u2014 | \u2014 |
Commercial paper programme | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |
Revolving credit facility | \u2014 | 250.0 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |
Liabilities towards joint ventures | 5.1 | \u2014 | 5.1 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |
European Investment Bank | 78.5 | \u2014 | 13.1 | 13.1 | 13.1 | 13.1 | 13.1 | 13.1 | |
Syndicated term loan | 254.2 | \u2014 | \u2014 | 80.0 | 174.2 | \u2014 | \u2014 | \u2014 | |
Other loans | 29.0 | \u2014 | 13.3 | 8.8 | 3.9 | 1.9 | 0.4 | \u2014 | |
766.8 | 250.0 | 31.4 | 101.9 | 291.2 | 315.0 | 13.5 | 13.1 | ||
Interest payments | \u2014 | \u2014 | 10.6 | 9.8 | 8.6 | 6.1 | \u2014 | \u2014 | |
Trade payables | Outflow | 260.8 | \u2014 | 260.8 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Other liabilities | Lease liabilities | 242.3 | \u2014 | 69.2 | 47.2 | 33.2 | 20.4 | 13.2 | 59.0 |
Total | 1\u00a0269.8 | 250.0 | 372.1 | 158.9 | 333.0 | 341.5 | 26.8 | 72.1 |
31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 | |
Net debt | 679.1 | 610.6 |
12 months EBITDA | 449.0 | 557.4 |
Net debt/EBITDA | 1.5 | 1.1 |
ACCOUNTING POLICIES | |||
Interest-bearing loans and borrowings are initially recognized at fair value, net of transaction costs which are recognized in the income statement as interest expenses over the loan term. Debt is classified as short term if it is payable within 12 months, otherwise it is classified as non-current. |
Non-cash changes | |||||||||
EUR million | 31\u00a0Dec\u00a02021 | Cash flows | Foreign exchange gains and losses | Reclassification | Acquisitions and disposals | New lease contracts | De-recognized contracts | Other | 31\u00a0Dec 2022 |
Non-current interest-bearing loans | 731.6 | -13.1 | \u2014 | -80.0 | \u2014 | -0.3 | \u2014 | 1.2 | 639.4 |
Current interest-bearing loans | 31.5 | -1.5 | \u2014 | 80.0 | \u2014 | 0.7 | \u2014 | \u2014 | 110.6 |
Lease liabilities | 206.5 | -66.3 | -7.9 | \u2014 | -0.1 | 104.7 | -27.0 | 0.2 | 210.0 |
Total | 969.6 | -81.0 | -7.9 | \u2014 | -0.1 | 105.0 | -27.0 | 1.4 | 960.1 |
Non-cash changes | ||||||||
EUR million | 31\u00a0Dec\u00a02020 | Cash flows | Foreign exchange gains and losses | Reclassification | New lease contracts | De-recognized contracts | Other | 31\u00a0Dec\u00a02021 |
Non-current interest-bearing loans | 885.9 | -145.8 | 0.1 | -13.1 | 3.3 | \u2014 | 1.2 | 731.6 |
Current interest-bearing loans | 39.7 | -19.7 | \u2014 | 13.1 | \u2014 | \u2014 | -1.4 | 31.5 |
Lease liabilities | 243.1 | -73.1 | 4.5 | \u2014 | 46.5 | -14.1 | 0.5 | 206.5 |
Total | 1\u00a0168.7 | -238.6 | 4.6 | \u2014 | 49.8 | -14.1 | 0.3 | 969.6 |
ACCOUNTING POLICIES | |||
The Group as a lessee | |||
Initially, lease liabilities are measured at the commencement date at the present value of the lease payments, discounted using the interest rate implicit in the lease, if it can be readily determined. If the rate cannot be readily determined, such as in real estate leases, the incremental borrowing rate is used. | |||
The incremental borrowing rate is defined for each legal entity, differentiated based on lease contract length and updated on a yearly basis, which impacts the value of right-of-use assets, lease liabilities in the statement of financial position, and split between depreciations and interest expenses. Management judgement has been used in determining the incremental borrowing rate that would reflect the rate of interest that Tietoevry group would pay to borrow over similar term, and with similar security, the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment. The average annual incremental borrowing rate applied to discounting future cash flows for existing lease agreements at year-end is 4.7%. | |||
The lease term includes the non-cancellable period for which the Group has the right to use the underlying asset, together with both enforceable: \u2022Periods covered by an option to extend the lease, if the Group is reasonably certain to exercise that option; and \u2022Periods covered by an option to terminate the lease, if the Group is reasonably certain not to exercise that option. | |||
The decision if extension or termination options of lease contracts would be used, is made by the organisation responsible for the underlying asset management and is in line with overall strategy and business development plans. |
In determining if either lessor or lessee would incur more than insignificant penalties by using or not using either of the options, the Group considers not only penalties directly defined in contracts, but also wider economic costs, such as, reallocation costs or finding new tenants. | |||
Lease payments include fixed payments, in substance fixed payments, lease payments that depend on index or rate and exercise price of purchase option, if it is reasonably certain to be exercised. | |||
Subsequently, lease liabilities are measured at amortized cost, by increasing or reducing the carrying amount to reflect interest on the lease liability and the lease payments made, respectively. Lease liabilities are remeasured for lease reassessments done or modified to reflect revised in-substance fixed lease payments. | |||
Interest expenses are recognized in profit or loss. | |||
Right-of-use assets are initially measured at the amount equal to lease liability: \u2022less payments made at or before commencement date and lease incentives received adding initial direct costs; and \u2022adjusting by estimated dismantling or site restoration costs. | |||
Subsequently, right-of-use assets are measured applying a cost model, where asset cost is reduced by accumulated depreciation and impairment losses and adjusted by remeasurement of a respective lease liability. | |||
Right-of use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. | |||
Tietoevry has applied the recognition exemptions allowed by the standard not to capitalize short- term leases (lease term less than 1 year at commencement, where there is no purchase option) and leases of low value assets. Typically, such assets would include lease of individual IT equipment and office furniture. Payments for such assets are\u00a0 recognized in profit or loss on a straight-line basis during the lease term. | |||
The Group has also elected to separate the service component of a lease for all asset types, except for cars, where only variable lease payments are excluded from the measurement of lease liability. Non-lease components are separated from lease payments on a fair market value basis. If such information is not readily available, management judgement has been applied in estimating the value. |
The Group presents cash payments for the principal portion of lease liabilities as cash flows from financing activities and interest portion within cash flows from operating activities. Short-term lease payments, payments for leases of low-value assets and variable lease payments not included in the measurement of the lease liability are presented as part of operating activities. | |||
The Group as a lessor | |||
If an arrangement conveys a right to use a specific asset to a purchaser, often together with related services, the assets, mainly technical equipment, are classified as embedded finance leases. Further the lease is classified either as Operating lease or Finance lease. As of 31\u00a0December 2022, all such cases have been classified as Finance leases. Sales derived from these embedded finance leases are recognized at the beginning of the agreement period. The annual payments are disclosed as amortization of the finance lease loan receivable and interest income. |
ACCOUNTING ESTIMATES AND JUDGEMENTS | |||
Lease term, use of extension and termination options | |||
Management judgement has been applied in determining the lease term, where there are either extension or termination options included in lease contracts. Lease terms are negotiated on an individual basis and contain a wide range of renewal and termination options. As of 31\u00a0December 2022, weighted average residual lease term for lease contracts is 5.4 years (residual terms vary between 0.1\u201317.3 years). The lease term for premises leases referred to as \"evergreen leases\" or \"rolling\" leases has been determined based on the internally defined site categories. Those take into consideration the number of full time employees and strategic importance of the site, allowing a longer lease term for larger Level 1 sites (5 years and more) and recognizing more flexibility for smallest Level 1 sites (1 year, short-term lease exemption from balance sheet treatment not applied). Total annual leasing expenses (depreciation and interest) for such leases amounted to EUR 7.0 million during year 2022, weighted average remaining lease term being 2.3 years. |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 | |
Tietoevry as a Lessee | Buildings | -54.2 | -57.7 |
Equipment and machinery | -12.3 | -13.5 | |
Depreciation expenses of right-of-use assets | -66.4 | -71.2 | |
Tietoevry as a Lessee | Impairment losses | \u2014 | -5.3 |
Tietoevry as a Lessee | Variable lease payments | -7.9 | -6.6 |
Tietoevry as a Lessee | Short-term leases and low value leases | -5.2 | -4.0 |
Other income and expenses | -13.1 | -10.6 | |
Tietoevry as a Lessor | Revenue | 0.8 | 2.0 |
Tietoevry as a Lessor | Materials and services | -0.7 | -1.8 |
Tietoevry as a Lessor | Finance income on the net investment in lease | 0.1 | 0.1 |
Tietoevry as a Lessee | Interest expense on lease liabilities | -9.7 | -9.5 |
Expenses reported in financial items | -9.6 | -9.4 | |
Total impact on income statement from leasing contracts | -89.0 | -96.2 |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 | |
Tietoevry as a Lessee | Interest paid (cash flow from operating activities) | -9.4 | -9.0 |
Principal paid (cash flow from financing activities) | -66.3 | -73.1 |
EUR million | Buildings | Machinery and Equipment | Total | |
Tietoevry as a Lessee | 31\u00a0Dec\u00a02021 | 171.5 | 21.0 | 192.4 |
Divestment of subsidiary | -0.1 | \u2014 | -0.1 | |
Additions1) | 95.7 | 9.6 | 105.3 | |
Terminations | -19.9 | -1.8 | -21.7 | |
Depreciation | -54.2 | -12.3 | -66.4 | |
Currency translation differences | -7.1 | -0.5 | -7.6 | |
31\u00a0Dec\u00a02022 | 185.9 | 16.0 | 201.9 |
EUR million | Buildings | Machinery and Equipment | Total | |
Tietoevry as a Lessee | 31\u00a0Dec\u00a02020 | 208.6 | 23.1 | 231.7 |
Additions1) | 33.2 | 14.1 | 47.3 | |
Terminations | -11.0 | -2.9 | -13.8 | |
Depreciation | -57.7 | -13.5 | -71.2 | |
Impairment | -5.3 | \u2014 | -5.3 | |
Subleased | 1.4 | -1.2 | 0.2 | |
Currency translation differences | 4.3 | 0.2 | 4.4 | |
31\u00a0Dec\u00a02021 | 171.5 | 21.0 | 192.4 |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Current | 54.1 | 62.5 |
Non-current | 155.9 | 144.0 |
Total | 210.0 | 206.5 |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Current | 2.4 | 2.9 |
Non-current | 0.2 | 2.7 |
Total | 2.6 | 5.6 |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Within one year | 2.4 | 3.0 |
One to two years | 0.2 | 2.2 |
Two to three years | \u2014 | 0.5 |
Three to four years | \u2014 | \u2014 |
Four to five years | \u2014 | \u2014 |
Total undiscounted lease receivable | 2.7 | 5.7 |
Unearned finance income | 0.0 | -0.1 |
Net investment in lease | 2.6 | 5.6 |
2021 | Interest income | Interest expenses | Foreign exchange gains and losses | Other financial income | Other financial expenses | Total |
EUR million | ||||||
Financial assets at fair value through profit or loss | \u2014 | \u2014 | -0.1 | \u2014 | \u2014 | -0.1 |
Financial assets at amortized cost | 1.8 | \u2014 | -4.7 | 0.1 | \u2014 | -2.7 |
Financial liabilities measured at amortized cost | \u2014 | -22.7 | \u2014 | \u2014 | -2.3 | -25.0 |
Net defined benefit obligation | \u2014 | -0.3 | \u2014 | \u2014 | \u2014 | -0.3 |
Total | 1.8 | -23.0 | -4.8 | 0.1 | -2.3 | -28.2 |
ACCOUNTING POLICIES | |||
All financial assets and liabilities are initially recognized at fair value, and subsequently classified either as financial assets at amortized cost or financial assets through profit or loss. | |||
Financial assets at amortized cost | |||
Financial assets are accounted at amortized cost only when the asset is held within a business model with the objective to collect contractual cash flows, which are solely payments of principal and interest. | |||
This category of financial assets includes trade and other receivables, cash and cash equivalents, lease receivables and other interest-bearing receivables. | |||
Financial assets in this category are carried at amortized cost in accordance with the effective interest method with interest income recognized in profit or loss under financial items, see note 21. | |||
Financial liabilities at amortized cost | |||
Financial liabilities under this category are initially recognized at fair value, net of transaction costs directly associated with the borrowing. For interest-bearing liabilities, after initial recognition, liabilities are measured using effective interest rate method, taking into account any issue costs and any discount or premium on settlement. Related interest expenses are recognized in profit or loss | |||
Financial assets and liabilities at fair value through profit or loss | |||
Financial assets and liabilities in this category are recognized on the statement of financial position at their fair value with gains or losses resulting from changes in the fair value, being recognized in income statement. | |||
This category mostly consists of derivatives. Gains or losses from the revaluation of derivative contracts that relate to financial items (loans, cash, leases) are presented as financing costs, see note 21, whereas gains or losses from derivatives, mostly currency forward contracts that relate to operating activities are included in operating profit. |
Fair value measurement is also applicable to trade receivables sold under non-recourse factoring agreements, which have not yet been de-recognized from the statement of financial position as of the reporting date. | |||
Other investments include unlisted shares, where their fair value cannot be measured reliably and, therefore, the cost is considered to be a reasonable approximation of their fair value. | |||
Determination of fair values | |||
The classification of financial assets and liabilities measured at fair value in the statement of financial position, has been done on three hierarchy levels: \u2022Level 1: quoted prices in active markets for given or identical assets or liabilities that the entity can access at the measurement date; \u2022Level 2: inputs that are observable for the asset or liability, either directly or indirectly; \u2022Level 3: unobservable inputs for the asset or liability. | |||
The carrying amount of all financial assets and liabilities, carried at amortized cost is considered to provide a reasonable approximation of their fair value, due to the short maturity and liquid nature of these items, except for bonds which are traded on an active market. | |||
The fair values of derivatives are determined based on prevailing marked quotes at the reporting date. Foreign exchange derivatives' fair values are calculated according to foreign exchange and interest rates on the closing date. |
EUR million | Note | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 | Fair value hierarchy |
Financial assets at fair value through profit or loss | ||||
Non-current | ||||
Other financial assets at fair value through profit or loss | 0.6 | 0.6 | Level 3 | |
Current | ||||
Trade receivables at fair value through profit or loss | 20.2 | 19.1 | Level 2 | |
Current derivative receivables | 23 | 3.4 | 4.2 | Level 2 |
Financial assets at amortized cost | ||||
Non-current | ||||
Other loan receivables, interest- bearing | 15.0 | 15.7 | Level 2 | |
Lease receivables | 20 | 0.2 | 2.7 | Level 2 |
Current | ||||
Other loan receivables, interest- bearing | 14 | 13.6 | 13.8 | Level 2 |
Lease receivables | 20 | 2.4 | 2.9 | Level 2 |
Trade receivables | 14 | 408.9 | 372.8 | Level 2 |
Accrued interest income | 14 | 0.0 | 0.1 | Level 2 |
Cash and cash equivalents | 24 | 249.7 | 323.8 | Level 2 |
Total | 714.1 | 755.5 |
EUR million | Note | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a0 2021 | Fair value hierarchy |
Financial liabilities at fair value through profit or loss | ||||
Current derivative liabilities | 23 | 2.0 | 0.8 | Level 2 |
Financial liabilities measured at amortized cost | ||||
Non-current | ||||
Lease liability | 19, 20 | 155.9 | 144.0 | Level 2 |
Bonds1) | 19 | 398.4 | 397.8 | Level 1 |
Other loans | 19 | 241.0 | 333.8 | Level 2 |
Current | ||||
Trade payables | 17 | 233.9 | 260.8 | Level 2 |
Accrued interest | 17 | 4.3 | 3.8 | Level 2 |
Lease liability | 19, 20 | 54.1 | 62.5 | Level 2 |
Loans | 19 | 110.6 | 31.5 | Level 2 |
Total | 1\u00a0200.3 | 1\u00a0235.0 |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Foreign exchange forward contracts | 406.5 | 479.7 |
Interest rate swaps | 40.0 | \u2014 |
Gross amounts of recognized financial instruments in the statement of financial position1) | Related amounts not set off in the statement of financial position | |||
31\u00a0Dec 2022 | Financial Instruments | Cash collateral received | Net amount | |
EUR million | ||||
Derivative financial assets | ||||
\u00a0 Foreign exchange forward contracts | 3.4 | -1.6 | \u2014 | 1.7 |
\u00a0 Interest rate swaps | 2.9 | -2.9 | \u2014 | \u2014 |
Derivative financial liabilities | ||||
\u00a0 Foreign exchange forward contracts | -2.0 | 1.6 | \u2014 | -0.4 |
\u00a0 Interest rate swaps | -2.9 | 2.9 | \u2014 | \u2014 |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Cash in hand and at bank | 233.4 | 309.1 |
Short-term deposits | 16.3 | 14.6 |
Total | 249.7 | 323.8 |
ACCOUNTING POLICIES | |||
Dividends proposed by the Board of Directors are not deducted from distributable equity until approved by the Annual General Meeting of Shareholders. | |||
When the company's own shares are repurchased, the amount of the consideration paid, including directly attributable costs, is recognized as a deduction in equity. |
EUR million | Number of shares | Share capital | Share issue premiums and other reserves | Invested unrestricted equity reserve | Total |
1\u00a0Jan\u00a02021 | 118\u00a0414\u00a0793 | 76.6 | 42.1 | 1\u00a0203.5 | 1\u00a0322.2 |
Purchase of own shares | -140\u00a0000 | \u2014 | \u2014 | \u2014 | \u2014 |
Shares delivered from the share-based incentive plans1) | 143\u00a0391 | \u2014 | \u2014 | \u2014 | \u2014 |
Translation difference | \u2014 | \u2014 | -0.6 | \u2014 | -0.6 |
31\u00a0Dec\u00a02021 | 118\u00a0418\u00a0184 | 76.6 | 41.5 | 1\u00a0203.5 | 1\u00a0321.6 |
Purchase of own shares | -145\u00a0000 | \u2014 | \u2014 | \u2014 | \u2014 |
Shares delivered from the share-based incentive plans1) | 140\u00a0119 | \u2014 | \u2014 | \u2014 | \u2014 |
Translation difference | \u2014 | \u2014 | -2.2 | \u2014 | -2.2 |
31\u00a0Dec 2022 | 118\u00a0413\u00a0303 | 76.6 | 39.3 | 1\u00a0203.5 | 1\u00a0319.4 |
Own shares2) | 12\u00a0468 | ||||
Total number of shares on 31\u00a0Dec 2022\u00b2\u207e | 118\u00a0425\u00a0771 |
ACCOUNTING POLICIES | |||
Disposed operations are consolidated until the point in time when control is transferred. Where the disposed operation is part of a cash-generating unit (CGU) to which goodwill has been allocated, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the cash- generating unit retained. | |||
Assets held for sale | |||
Non-current assets are classified as held for sale if their carrying amounts are expected to be recovered principally through sale and the sale is highly probable. From the date of classification, the assets are measured at the lower of the carrying amount and the fair value less costs to sell, and the recognition of depreciation is discontinued. |
EUR million | |
Intangible assets | 2.3 |
Trade and other receivables | 0.7 |
Cash and cash equivalents | 2.1 |
Non-current liabilities | -0.4 |
Trade and other payables | -2.0 |
Fair value of net assets | 2.6 |
Allocation of goodwill on disposal | 7.0 |
Total net assets disposed | 9.7 |
Consideration, including adjustments and FX impact | 40.6 |
Transaction costs | -0.1 |
Reclassification of foreign currency translation reserve to profit or loss | -0.2 |
Total net assets disposed | -9.7 |
Gain on disposal, before income tax | 30.6 |
Income tax expense on gain | -2.6 |
Gain on disposal, after income tax | 28.0 |
Consideration received in cash | 39.8 |
Transaction costs | \u2014 |
Cash and cash equivalents disposed of | -2.1 |
Net cash flow on disposal | 37.7 |
Company name | Domicile | Parent company's holding % | 31\u00a0Dec 2022 Book value in the Parent company EUR million |
EVRY Card Issuing AS | Norway | 100.0 | 77.4 |
EVRY Card Payments AS | Norway | 100.0 | 0.7 |
EVRY Card Services AS | Norway | 100.0 | 84.0 |
Fellesdata AS | Norway | 100.0 | \u2014 |
Infopulse Brasil Servicos Technologicos Ltda. | Brazil | 1.0 | 0.0 |
Tieto Austria GmbH | Austria | 100.0 | 0.8 |
Tieto (Beijing) Technology Co., Ltd. | China | 100.0 | 0.8 |
Tieto China Co., Ltd. | China | 100.0 | 4.3 |
Tieto Germany GmbH | Germany | 100.0 | 0.5 |
Tieto Global Oy | Finland | 100.0 | 1.1 |
Tieto Great Britain Ltd. | Great Britain | 100.0 | 0.5 |
Tieto Latvia SIA | Latvia | 100.0 | 15.2 |
Tieto Lietuva UAB | Lithuania | 100.0 | 2.6 |
Tieto Netherlands Holding B.V. | Netherlands | 100.0 | 24.5 |
Tieto Poland Sp. z o.o | Poland | 100.0 | 3.3 |
Tieto Support Services Sp. z o.o. | Poland | 100.0 | 0.4 |
Tieto Sweden AB | Sweden | 100.0 | 919.3 |
TietoEnator Inc. | The United States | 100.0 | 8.0 |
TietoEVRY Accounting AS | Norway | 100.0 | 16.7 |
Tietoevry Banking Finland Oy | Finland | 100.0 | 1.3 |
Tietoevry Connect Czechia s.r.o. | Czech Republic | 100.0 | 7.5 |
Tietoevry Connect Finland Oy | Finland | 100.0 | 48.9 |
Tietoevry Connect Slovakia s.r.o. | Slovakia | 15.0 | 0.0 |
Tietoevry Czechia s.r.o. | Czech Republic | 100.0 | 0.5 |
Tietoevry Czechia Support Services s.r.o. | Czech Republic | 100.0 | \u2014 |
Tietoevry Denmark A/S | Denmark | 100.0 | 6.5 |
Tietoevry DK A/S | Denmark | 100.0 | 1.6 |
Tietoevry Estonia AS | Estonia | 100.0 | 0.3 |
Tietoevry Finland Oy | Finland | 100.0 | 87.1 |
Tietoevry Finland Support Services Oy | Finland | 100.0 | 1.2 |
TietoEVRY Norway AS | Norway | 100.0 | 1\u00a0007.9 |
Tietoevry Slovakia s.r.o. | Slovakia | 100.0 | 0.0 |
TietoIlmarinen Oy | Finland | 100.0 | 0.2 |
Dormant subsidiaries (3 in total) | 0.0 | ||
Total | 2\u00a0322.8 |
Company name | Domicile | Group holding % | 31\u00a0Dec 2022 Book value in the Parent company EUR million |
Avega Affero AB | Sweden | 100.0 | 0.0 |
Avega Aqilo AB | Sweden | 100.0 | 0.0 |
Avega Catalyst AB | Sweden | 100.0 | 0.4 |
Avega Clarity AB | Sweden | 100.0 | 0.8 |
Avega Complius AB | Sweden | 100.0 | 0.0 |
Avega Dinamiko AB | Sweden | 100.0 | 0.1 |
Avega Edge AB | Sweden | 100.0 | 0.0 |
Avega Effectus AB | Sweden | 100.0 | 0.8 |
Avega Group AB | Sweden | 100.0 | 42.3 |
Avega Kipeo AB | Sweden | 100.0 | 1.5 |
Avega Kite AB | Sweden | 100.0 | 0.0 |
Avega Miundo AB | Sweden | 100.0 | 0.0 |
Avega Mtoni AB | Sweden | 100.0 | 0.1 |
Avega Nuvem AB | Sweden | 100.0 | 0.0 |
Avega Primero AB | Sweden | 100.0 | 0.0 |
Avega Qurio AB | Sweden | 100.0 | 2.6 |
Avega Scire AB | Sweden | 100.0 | 0.1 |
Avega Sempai AB | Sweden | 100.0 | 0.5 |
Avega Senso AB | Sweden | 100.0 | 0.0 |
Bekk Consulting AS | Norway | 100.0 | 44.3 |
Emric d.o.o. Beograd | Serbia | 100.0 | 0.0 |
EVRY Card Services AB | Sweden | 100.0 | 24.1 |
EVRY Card Services Oy | Finland | 100.0 | 6.1 |
EVRY Financial Service UK Ltd. | Great Britain | 100.0 | 0.1 |
EVRY India Pvt. Ltd. | India | 100.0 | 13.6 |
EVRY Sweden AB | Sweden | 100.0 | 160.1 |
EVRY USA Corporation Inc. | The United States | 100.0 | 0.4 |
Eye-share AS | Norway | 100.0 | 2.3 |
Eye-share Singapore Pte. Ltd. | Singapore | 100.0 | \u2014 |
Gjeldsregisteret AS | Norway | 100.0 | 0.0 |
Infopulse Brasil Servicos Technologicos Ltda. | Brazil | 99.0 | 0.1 |
Infopulse Bulgaria Ltd. | Bulgaria | 100.0 | 0.1 |
Infopulse Europe GmbH | Germany | 100.0 | 0.0 |
Infopulse Poland Sp. z o.o. | Poland | 100.0 | 0.0 |
Infopulse Ukraine LLC | Ukraine | 100.0 | 0.0 |
NUK Holding AB | Sweden | 100.0 | 16.8 |
Tieto India Pvt. Ltd. | India | 100.0 | 45.4 |
Tieto Ukraine Support Services LLC | Ukraine | 100.0 | 0.8 |
Tieto U.S. Inc. | The United States | 100.0 | 1.1 |
Tietoevry Connect Slovakia s.r.o. | Slovakia | 85.0 | 0.0 |
Tietoevry Financing AB | Sweden | 100.0 | 0.0 |
Tietoevry Financing AS | Norway | 100.0 | 2.0 |
Tietoevry Sweden Support Services AB | Sweden | 100.0 | 0.0 |
Dormant subsidiaries (5 in total) | 0.0 | ||
Total | 366.9 |
ACCOUNTING POLICIES | |||
Companies, where Tietoevry has assumed management responsibility, has contractually based joint control with a third party and has right to the net assets of the company based on the contractual arrangement are included in the consolidated financial statements as joint ventures. Joint ventures are accounted by using the equity method under which the investments in joint ventures are initially recognized at cost and adjusted thereafter to recognize the Group's share of the post-acquisition profits or losses and movements in other comprehensive income. When the Group's share of joint venture\u2019s losses exceeds the carrying amount of the investment, the investment is recognized at zero value in the statement of financial position and the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the joint venture. | |||
Sales to and purchases from joint ventures are made on normal market terms and conditions and at market prices. The Group\u2019s share of the joint ventures\u2019 result for the period is separately disclosed in the income statement. |
Number of shares | Parent company's share % | Voting right % | Carrying value EUR million | |||||
31 Dec | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
Tieto Esy Oy | 7\u00a0300 | 7\u00a0300 | 80.0 | 80.0 | 34.0 | 34.0 | 5.1 | 5.1 |
TietoIlmarinen Oy | \u2014 | 3\u00a0570 | \u2014 | 70.0 | \u2014 | 30.0 | \u2014 | 2.2 |
BuyPass AS | 21\u00a0100 | 21\u00a0100 | 50.0 | 50.0 | 50.0 | 50.0 | 9.2 | 9.4 |
14.2 | 16.7 |
EUR million | 2022 | 2021 |
Acquisition cost, 1 Jan | 11.6 | 11.2 |
Translation difference | -0.7 | 0.4 |
Acquisition cost, 31 Dec | 10.9 | 11.6 |
Equity adjustments, 1 Jan | 5.1 | 8.5 |
Share of results | 1.0 | 1.5 |
Dividends received | -1.4 | -2.1 |
TietoIlmarinen impairment | -1.4 | \u2014 |
Tietokarhu liquidation | \u2014 | -2.8 |
Equity adjustments, 31 Dec | 3.3 | 5.1 |
Carrying value, 31 Dec | 14.2 | 16.7 |
31\u00a0Dec 2022 | Tieto Esy Oy | TietoIlmarinen\u00a0Oy | BuyPass AS |
EUR million | |||
Non-current assets | 0.0 | \u2014 | 5.2 |
Current assets | 4.0 | \u2014 | 45.5 |
Total | 4.0 | \u2014 | 50.7 |
Non-current liabilities | 0.0 | \u2014 | \u2014 |
Current liabilities | 0.7 | \u2014 | 32.5 |
Total | 0.7 | \u2014 | 32.5 |
Net sales | 3.9 | 1.6 | 30.7 |
Expenses | -3.2 | -2.4 | -27.9 |
Result before taxes | 0.7 | -0.8 | 2.8 |
Income taxes | -0.2 | 0.0 | -0.7 |
Net result for the financial year | 0.6 | -0.8 | 2.1 |
Dividends paid to Tietoevry | 0.5 | \u2014 | 0.9 |
Average full-time personnel during the financial year | 27 | 13 | 25 |
ACCOUNTING POLICIES | |||
Commitments are disclosed when the Group has a contract where the existence of an obligation will be only confirmed in the future. | |||
Contingent liabilities are possible obligations whose existence will be confirmed by uncertain future events that are not wholly within the control of the entity. They can also include obligations that are not recognized in the statement of financial position because settlement is not probable or their amount cannot be measured reliably. |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
For Tietoevry obligations | ||
Mortgages | \u2014 | \u2014 |
Guarantees | ||
Performance guarantees | 81.7 | 91.6 |
Payment guarantees | 0.5 | 0.3 |
Other | 0.1 | 0.2 |
Other Tietoevry obligations | ||
Lease commitments, not yet commenced | 22.3 | 67.4 |
Other | 0.6 | 0.6 |
On behalf of third parties | ||
Guarantees | ||
Performance guarantees | 23.4 | 25.4 |
ACCOUNTING POLICIES | |||
The operating segments are reported in a manner consistent with the internal reporting provided to the Group Executive Management, which has been identified as Tietoevry\u2019s chief operating decision maker being responsible for allocating resources and assessing performance of the operating segments as well as deciding on strategy. | |||
The Group Executive Management assesses the profitability of segments principally on the basis of adjusted operating profit (EBITA). Operating profit (EBIT) is, however, also an essential measure and is disclosed in this segment note as it is most consistent with the result reported in accordance with IFRS. Transactions between the segments are made on a market-terms basis. | |||
Eliminations include internal revenue between operating segments and Group function sales of internal services to the business. Non-allocated costs relate to Global management and Support functions and are shown separately in the operating profit (EBIT). |
EUR million | 2022 | 2021 | Change % |
Tietoevry Create | 847.9 | 756.3 | 12 |
Tietoevry Banking | 521.3 | 475.8 | 10 |
Tietoevry Care | 231.4 | 221.9 | 4 |
Tietoevry Industry | 272.6 | 303.4 | -10 |
Tietoevry Transform | 470.6 | 467.9 | 1 |
Tietoevry Connect | 879.9 | 907.5 | -3 |
Eliminations | -295.6 | -309.5 | -4 |
Group total | 2\u00a0928.1 | 2\u00a0823.4 | 4 |
EUR million | 2022 | 2021 | Change % |
Tietoevry Create | 90.2 | 88.6 | 2 |
Tietoevry Banking | 39.8 | 38.1 | 5 |
Tietoevry Care | 72.2 | 68.3 | 6 |
Tietoevry Industry | 51.9 | 149.8 | -65 |
Tietoevry Transform | 31.6 | 40.8 | -23 |
Tietoevry Connect | 21.1 | 38.5 | -45 |
Non-allocated costs | -40.2 | -42.1 | -5 |
Group total | 266.5 | 382.0 | -30 |
% | 2022 | 2021 | Change pp |
Tietoevry Create | 10.6 | 11.7 | -1 |
Tietoevry Banking | 7.6 | 8.0 | 0 |
Tietoevry Care | 31.2 | 30.8 | 0 |
Tietoevry Industry | 19.0 | 49.4 | -30 |
Tietoevry Transform | 6.7 | 8.7 | -2 |
Tietoevry Connect | 2.4 | 4.2 | -2 |
Operating margin (EBIT) | 9.1 | 13.5 | -4 |
EUR million | 2022 | 2021 |
Tietoevry Create | 18.3 | 16.0 |
Tietoevry Banking | 21.8 | 25.2 |
Tietoevry Care | 3.5 | 1.0 |
Tietoevry Industry | 2.5 | 5.0 |
Tietoevry Transform | 13.8 | 7.1 |
Tietoevry Connect | 1.8 | 6.1 |
Group total | 61.6 | 60.5 |
End of period | Average1) | ||||
2022 | 2021 | Change % | Share % | 2022 | |
Tietoevry Create | 8\u00a0989 | 8\u00a0653 | 4 | 37 | 8\u00a0871 |
Tietoevry Banking | 3\u00a0454 | 3\u00a0495 | -1 | 14 | 3\u00a0500 |
Tietoevry Care | 1\u00a0480 | 1\u00a0346 | 10 | 6 | 1\u00a0425 |
Tietoevry Industry | 1\u00a0682 | 1\u00a0819 | -8 | 7 | 1\u00a0703 |
Tietoevry Transform | 3\u00a0271 | 3\u00a0395 | -4 | 13 | 3\u00a0381 |
Tietoevry Connect | 4\u00a0766 | 4\u00a0994 | -5 | 20 | 4\u00a0832 |
Group functions | 678 | 687 | -1 | 3 | 689 |
Group total | 24\u00a0320 | 24\u00a0389 | 0 | 100 | 24\u00a0401 |
End of period | Average | |||||
2022 | 2021 | Change % | Share % | 2022 | 2021 | |
Sweden | 4\u00a0029 | 4\u00a0286 | -6 | 17 | 4\u00a0097 | 4\u00a0321 |
Norway | 3\u00a0990 | 4\u00a0274 | -7 | 16 | 4\u00a0102 | 4\u00a0373 |
Finland | 3\u00a0134 | 3\u00a0130 | 0 | 13 | 3\u00a0151 | 3\u00a0102 |
India | 4\u00a0499 | 4\u00a0592 | -2 | 18 | 4\u00a0601 | 4\u00a0362 |
Czech Republic | 2\u00a0694 | 2\u00a0505 | 8 | 11 | 2\u00a0631 | 2\u00a0478 |
Ukraine | 2\u00a0037 | 2\u00a0123 | -4 | 8 | 2\u00a0135 | 1\u00a0996 |
Latvia | 1\u00a0072 | 999 | 7 | 4 | 1\u00a0041 | 970 |
China | 1\u00a0066 | 842 | 27 | 4 | 978 | 503 |
Poland | 776 | 710 | 9 | 3 | 720 | 734 |
Other | 1\u00a0023 | 928 | 10 | 4 | 947 | 985 |
Group total | 24\u00a0320 | 24\u00a0389 | 0 | 100 | 24\u00a0401 | 23\u00a0824 |
Onshore countries | 11\u00a0687 | 12\u00a0192 | -4 | 48 | 11\u00a0869 | 12\u00a0296 |
Offshore countries | 12\u00a0633 | 12\u00a0197 | 4 | 52 | 12\u00a0533 | 11\u00a0528 |
Group total | 24\u00a0320 | 24\u00a0389 | 0 | 100 | 24\u00a0401 | 23\u00a0824 |
EUR million | 2022 | 2021 | Change % |
Tietoevry Create | 6.7 | 8.0 | -16 |
Tietoevry Banking | 4.8 | 4.1 | 15 |
Tietoevry Care | 0.9 | 0.7 | 31 |
Tietoevry Industry | 0.6 | 1.0 | -40 |
Tietoevry Transform | 1.6 | 0.5 | > 100 |
Tietoevry Connect | 40.9 | 43.4 | -6 |
Group functions | 48.4 | 53.5 | -10 |
Group total | 103.8 | 111.2 | -7 |
EUR million | 2022 | 2021 | Change % |
Tietoevry Create | 0.1 | 0.3 | -56 |
Tietoevry Banking | 2.8 | 3.3 | -17 |
Tietoevry Care | 1.6 | 0.9 | 85 |
Tietoevry Industry | 0.3 | 1.1 | -73 |
Tietoevry Transform | 0.2 | 0.1 | 70 |
Tietoevry Connect | 6.4 | 4.1 | 54 |
Group functions | 0.4 | 1.8 | -79 |
Group total | 11.7 | 11.6 | 1 |
EUR million | 2022 | 2021 | Change % |
Tietoevry Create | 10.1 | 10.5 | -4 |
Tietoevry Banking | 21.6 | 21.7 | -1 |
Tietoevry Care | 0.2 | 0.2 | -4 |
Tietoevry Industry | 6.2 | 6.3 | -1 |
Tietoevry Transform | \u2014 | \u2014 | \u2014 |
Tietoevry Connect | 8.7 | 8.7 | 0 |
Group functions | \u2014 | \u2014 | \u2014 |
Group total | 46.7 | 47.3 | -1 |
ACCOUNTING POLICIES | |||
The operating segments are reported in a manner consistent with the internal reporting provided to the Group Executive Management, which has been identified as Tietoevry\u2019s chief operating decision maker being responsible for allocating resources and assessing performance of the operating segments as well as deciding on strategy. | |||
The Group Executive Management assesses the profitability of segments principally on the basis of adjusted operating profit (EBITA). Operating profit (EBIT) is, however, also an essential measure and is disclosed in this segment note as it is most consistent with the result reported in accordance with IFRS. Transactions between the segments are made on a market-terms basis. | |||
Eliminations include internal revenue between operating segments and Group function sales of internal services to the business. Non-allocated costs relate to Global management and Support functions and are shown separately in the operating profit (EBIT). |
ACCOUNTING POLICIES | |||
Revenue is measured based on the consideration to which the Group expects to be entitled in a contract with a customer and excludes consideration collected on behalf of third parties. The Group recognizes revenue when it transfers control of a good or service to a customer. | |||
The Group typically provides customers with a variety of comprehensive services. The individual service delivery contracts are often structured under a common frame contract where general terms for the service delivery to the customer are defined. The content of the delivery, performance obligations and pricing, are defined in the service delivery contracts. Management judgement is used to determine the basis for the revenue recognition; either an individual service delivery contract or a group of combined contracts. | |||
Revenue from service contracts is based on service volumes or time and materials and the performance obligations are recognized over the accounting period in which the services are rendered or project is delivered. The services are generally satisfied and the control transferred to the customer over time given that either the customer simultaneously receives and consumes the benefits provided by the Group, or the Group\u2019s performance does not create an asset with an alternative use for the Group, in which case there is an enforceable right to payment for work completed to date. |
In the majority of the businesses providing continuous services, time and material projects and consulting, the performance obligations satisfied are invoiced on a monthly basis. At the time of invoicing, a receivable is recognized by the Group as this represents the point in time at which the right to consideration becomes unconditional, as only the passage of time is required before payment is due. The standard payment term is 30 days according to the Group\u2019s Credit Policy. | |||
Goods, typically distinct licenses, that provide a right to use the software, are invoiced on delivery. The license revenue is recognized at a point in time when the license is delivered, the legal title has passed, the customer has accepted the license and has access to the licensed software. Distinct licenses, that provide a right to access the software, are recognized over the contract period. Contract assets or liabilities do not typically arise in the businesses described above. | |||
For contracts comprising fixed-price projects, revenue is recognized based on the actual service provided by the reporting date as a proportion of the total services to be provided. This is determined based on the cost of actual labour hours spent relative to the total expected cost of labour hours, as it best reflects the transfer of control to the customer. Estimates of revenues, costs or progress towards completion are revised if circumstances change and any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by the management. Invoicing and customer payments in the fixed-price projects follow the payment schedule defined in the customer contract. If the services rendered by the Group exceed the payment, a contract asset is recognized, and if the payments exceed the services rendered, a contract liability is recognized. | |||
The customer contracts of the Group typically comprise several of the business models described above. The most appropriate presentation on how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors is considered to be the disaggregation of revenue by segment, presented in the segment information\u00a0 note 5. The disaggregation of customer sales from long-term fixed-price contracts by segment represents the revenue from contracts for which the risks are different compared to other contracts with customers. | |||
Some contracts include delivery of hardware together with a variety of services from the Group. Hardware is usually provided by another service provider. The installation of hardware is simple, does not include an integration service from the Group and could be performed by another party. It is, therefore, accounted for as a separate performance obligation. In these contracts, Tietoevry acts as an agent, if the Group does not obtain control of the hardware provided by another party before it is transferred to the customer, or as a principal if the control is obtained. |
Where the contracts include multiple performance obligations, the transaction price is allocated to each performance obligation based on the stand-alone selling prices, which are observable from the contracts and represent prices for services rendered in similar circumstances to similar customers. Revenue from contracts granting a discount retrospectively to the customer is recognized based on the price specified in the contract, net of the estimated discounts. Discounts are estimated based on management's experience of the earlier purchases of the customers under similar contracts. This estimation is regularly updated during the contract period. Revenue is only recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. | |||
In settlement agreement cases, consideration paid to customers is reduced from revenue when a settlement agreement is signed with the customer. Consideration received from customers is recognized as revenue or other operating income depending on the facts and circumstances. | |||
The Group grants assurance type of warranties which guarantee that the delivery complies with agreed specifications. These are accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. | |||
The Group does not have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. Consequently, the Group does not adjust any of the transaction prices for the time value of money. | |||
The Group capitalizes material costs of set-up activities related to transition or implementation projects in the initial phase of continuous operating service contracts, when the criteria for capitalization according to IFRS 15 are met. Management judgement has been used when developing an internal guidance on what kind of tasks are defined as set-up activities in the Group. The set-up activities do not result in the transfer of a promised good or service and are not identified as a performance obligation to the customer. The capitalized costs of a contract are amortized during the period when the revenue for related continuous operating service contract is recognized. |
EUR million | Note | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 | 1\u00a0Jan\u00a02021 |
Trade receivables | 14 | 408.9 | 372.8 | 358.9 |
Contract assets | 14 | 52.0 | 52.5 | 50.1 |
Contract liabilities, non-current1) | 17 | 16.9 | 29.2 | 29.4 |
Contract liabilities, current1) | 17 | 67.2 | 73.5 | 74.7 |
EUR million | 2022 | 2021 |
Capitalized set-up costs on 31 Dec | 11.8 | 21.2 |
Amortization of capitalized set-up costs | 8.4 | 6.6 |
ACCOUNTING POLICIES | |||
Revenue is measured based on the consideration to which the Group expects to be entitled in a contract with a customer and excludes consideration collected on behalf of third parties. The Group recognizes revenue when it transfers control of a good or service to a customer. | |||
The Group typically provides customers with a variety of comprehensive services. The individual service delivery contracts are often structured under a common frame contract where general terms for the service delivery to the customer are defined. The content of the delivery, performance obligations and pricing, are defined in the service delivery contracts. Management judgement is used to determine the basis for the revenue recognition; either an individual service delivery contract or a group of combined contracts. | |||
Revenue from service contracts is based on service volumes or time and materials and the performance obligations are recognized over the accounting period in which the services are rendered or project is delivered. The services are generally satisfied and the control transferred to the customer over time given that either the customer simultaneously receives and consumes the benefits provided by the Group, or the Group\u2019s performance does not create an asset with an alternative use for the Group, in which case there is an enforceable right to payment for work completed to date. |
In the majority of the businesses providing continuous services, time and material projects and consulting, the performance obligations satisfied are invoiced on a monthly basis. At the time of invoicing, a receivable is recognized by the Group as this represents the point in time at which the right to consideration becomes unconditional, as only the passage of time is required before payment is due. The standard payment term is 30 days according to the Group\u2019s Credit Policy. | |||
Goods, typically distinct licenses, that provide a right to use the software, are invoiced on delivery. The license revenue is recognized at a point in time when the license is delivered, the legal title has passed, the customer has accepted the license and has access to the licensed software. Distinct licenses, that provide a right to access the software, are recognized over the contract period. Contract assets or liabilities do not typically arise in the businesses described above. | |||
For contracts comprising fixed-price projects, revenue is recognized based on the actual service provided by the reporting date as a proportion of the total services to be provided. This is determined based on the cost of actual labour hours spent relative to the total expected cost of labour hours, as it best reflects the transfer of control to the customer. Estimates of revenues, costs or progress towards completion are revised if circumstances change and any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by the management. Invoicing and customer payments in the fixed-price projects follow the payment schedule defined in the customer contract. If the services rendered by the Group exceed the payment, a contract asset is recognized, and if the payments exceed the services rendered, a contract liability is recognized. | |||
The customer contracts of the Group typically comprise several of the business models described above. The most appropriate presentation on how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors is considered to be the disaggregation of revenue by segment, presented in the segment information\u00a0 note 5. The disaggregation of customer sales from long-term fixed-price contracts by segment represents the revenue from contracts for which the risks are different compared to other contracts with customers. | |||
Some contracts include delivery of hardware together with a variety of services from the Group. Hardware is usually provided by another service provider. The installation of hardware is simple, does not include an integration service from the Group and could be performed by another party. It is, therefore, accounted for as a separate performance obligation. In these contracts, Tietoevry acts as an agent, if the Group does not obtain control of the hardware provided by another party before it is transferred to the customer, or as a principal if the control is obtained. |
Where the contracts include multiple performance obligations, the transaction price is allocated to each performance obligation based on the stand-alone selling prices, which are observable from the contracts and represent prices for services rendered in similar circumstances to similar customers. Revenue from contracts granting a discount retrospectively to the customer is recognized based on the price specified in the contract, net of the estimated discounts. Discounts are estimated based on management's experience of the earlier purchases of the customers under similar contracts. This estimation is regularly updated during the contract period. Revenue is only recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. | |||
In settlement agreement cases, consideration paid to customers is reduced from revenue when a settlement agreement is signed with the customer. Consideration received from customers is recognized as revenue or other operating income depending on the facts and circumstances. | |||
The Group grants assurance type of warranties which guarantee that the delivery complies with agreed specifications. These are accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. | |||
The Group does not have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. Consequently, the Group does not adjust any of the transaction prices for the time value of money. | |||
The Group capitalizes material costs of set-up activities related to transition or implementation projects in the initial phase of continuous operating service contracts, when the criteria for capitalization according to IFRS 15 are met. Management judgement has been used when developing an internal guidance on what kind of tasks are defined as set-up activities in the Group. The set-up activities do not result in the transfer of a promised good or service and are not identified as a performance obligation to the customer. The capitalized costs of a contract are amortized during the period when the revenue for related continuous operating service contract is recognized. |
ACCOUNTING POLICIES | |||
Government grants | |||
Government grants are recognized as other operating income on a systematic basis over the periods necessary to match them with the related costs that they are intended to compensate. | |||
Research and development costs | |||
Research costs are expensed when incurred. Development costs related to major new software products are capitalized as intangible assets when it is probable that the development will generate future economic benefits for the Group, and certain criteria related to commercial and technological feasibility are met. Development costs comprise service and solution development focusing on, for example, industry-specific software, customer experience management and security services, as well as cloud services. Additionally, the costs for related internal development, e.g. automation in infrastructure services, are included in development costs. |
EUR million | 2022 | 2021 |
Gain on sale of tangible assets, subsidiaries and business operations | 1.4 | 104.1 |
Change in fair value of derivatives | 9.2 | 7.4 |
Joint venture management fees | 1.3 | 1.6 |
Other1) | 38.3 | 11.9 |
Total | 50.2 | 125.1 |
EUR million | 2022 | 2021 |
Audit fees | 1.3 | 1.3 |
Audit related | 0.1 | 0.2 |
Tax advisory | 0.1 | 0.1 |
Other services | 0.4 | 0.2 |
Total | 1.9 | 1.8 |
EUR million | 2022 | 20212) |
Wages and salaries1) | 1\u00a0247.9 | 1\u00a0174.3 |
Post-employment benefits | ||
Defined contribution plans | 100.1 | 104.5 |
Defined benefit plans | -2.1 | 1.5 |
Other benefits | 23.8 | 20.2 |
Other pay-related statutory social costs | 219.7 | 217.8 |
Share-based payments | 6.9 | 8.7 |
Other personnel expenses | 0.8 | 0.0 |
Total | 1\u00a0597.2 | 1\u00a0527.0 |
2022 | 2021 | |||
EUR thousand | President and CEO | Leadership team | President and CEO | Leadership team |
Salaries and benefits | 853.5 | 3\u00a0079.9 | 842.3 | 3\u00a0938.1 |
Bonuses1) | 698.5 | 1\u00a0053.4 | 484.4 | 1\u00a0224.6 |
Share-based payments | 514.4 | 906.2 | 922.2 | 1\u00a0808.4 |
Statutory pensions | 136.5 | 356.6 | 250.3 | 483.4 |
Supplementary pensions | 205.1 | 286.3 | 205.1 | 354.1 |
Total | 2\u00a0408.0 | 5\u00a0682.4 | 2\u00a0704.3 | 7\u00a0808.6 |
EUR thousand | 2022 | 2021 |
Board members at 31\u00a0Dec 2022 | ||
Tomas Franz\u00e9n, Chairperson Board and RC | 169.3 | 168.2 |
Timo Ahopelto, Deputy Chairperson | 99.6 | 98.4 |
Liselotte H\u00e4gertz Engstam | 79.7 | 85.4 |
Harri-Pekka Kaukonen, Chairperson ARC | 102.9 | 109.4 |
Angela Mazza Teufer | 64.1 | 61.8 |
Katharina Mosheim | 78.9 | 70.6 |
Niko Pakal\u00e9n | 86.1 | 82.2 |
Endre Rangnes | 78.1 | 79.8 |
Leif Teksum1) | 2.4 | 78.2 |
Rohan Haldea2) | \u2014 | 60.2 |
Salim Nathoo3) | \u2014 | 70.2 |
Tommy Sander Aldrin, personnel rep.1) | \u2014 | 15.0 |
Ola Hugo Jordh\u00f8y, personnel rep.1) | \u2014 | 15.0 |
Anders Palklint, personnel rep.1) | \u2014 | 15.0 |
Robert Spinelli, personnel rep.4) | 15.0 | \u2014 |
Ilpo Waljus, personnel rep. | 15.0 | 15.0 |
Total | 791.1 | 1\u00a0024.4 |
Performance Share Plan | |||
2020\u20132022 | 2021\u20132023 | 2022\u20132024 | |
Plan launched | 18 December 2019 | 16 February 2021 | 16 February 2022 |
Performance period | 2020\u20132022 | 2021\u20132023 | 2022\u20132024 |
Vesting conditions | Total Shareholder Return of Tietoevry share (TSR)\u00a0 and Tietoevry's Earnings per Share (EPS). Valid employment or director agreement of a key employee upon the reward payment. | Total Shareholder Return of Tietoevry share (TSR), strategic target related to Tietoevry's growth and Tietoevry's Earnings per Share (EPS). Valid employment or director agreement of a key employee upon the reward payment. | Relative and absolute Total Shareholder Return of Tietoevry share (TSR), Revenue growth and ESG target. Valid employment or director agreement of a key employee upon the reward payment. |
Exercised | In shares and cash in 2023 | In shares and cash in 2024 | In shares and cash in 2025 |
Number of participants on 31\u00a0Dec\u00a02022 | 156 | 99 | 523 |
Other | On 31\u00a0Dec 2022, rewards to be paid correspond to the value of approximate number of 521 292 Tietoevry gross shares. | On 31\u00a0Dec 2022, rewards to be paid correspond to the value of approximate number of 464 180 Tietoevry gross shares. | On 31\u00a0Dec 2022, rewards to be paid correspond to the value of approximate number of 980 904 Tietoevry gross shares. |
Restricted Share Plan | |||
2020\u20132022 | 2021\u20132023 | 2022\u20132024 | |
Plan launched | 18 December 2019 | 16 February 2021 | 16 February 2022 |
Vesting period | 2020\u20132022 | 2021\u20132023 | 2022\u20132024 |
Vesting conditions | Valid employment or director agreement of a key employee upon the reward payment. | ||
Exercised | In shares and cash in 2023 | In shares and cash in 2024 | In shares and cash in 2025 |
Number of participants on 31\u00a0Dec\u00a02022 | 371 | 421 | 157 |
Other | On 31\u00a0Dec 2022, rewards to be paid correspond to the value of approximate number of 221 352 Tietoevry gross shares. | On 31\u00a0Dec 2022, rewards to be paid correspond to the value of approximate number of 216 680 Tietoevry gross shares. | On 31\u00a0Dec 2022, rewards to be paid correspond to the value of approximate number of 61 800 Tietoevry gross shares. |
EUR million | 2022 | 2021 |
Equity-settled share-based incentive plans | 6.9 | 8.7 |
Social costs settled in cash1) | 1.3 | 1.4 |
Total | 8.2 | 10.1 |
ACCOUNTING POLICIES | |||
The fixed contributions to defined contribution plans are recognized as employee benefit expenses in the period to which they relate. The Group has no further legal or constructive payment obligations once the contributions have been paid. | |||
Defined benefit plans typically define an amount of post-employment benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. Defined benefit plans are funded with payments to insurance companies. | |||
For defined benefit plans, the net liability recognized in the statement of financial position equals the present value of the defined benefit obligation at the closing date less the fair value of the plan assets. The present value of the defined benefit obligation is determined separately for each plan by independent actuaries using the projected unit credit method. The actuarial calculations include several financial and demographic assumptions and any change in these will impact the carrying amount and future expense of the defined benefit obligation. | |||
Current service costs, past service costs and gains or losses on settlements are recognized in employee benefit expenses. Net interest expense or income is recognized in financial items under interest expense or interest income. All remeasurements of the defined benefit liability or asset arising from experience adjustments and changes in actuarial assumptions are recognized directly in other comprehensive income. |
EUR million | 2022 | 2021 |
Service cost | ||
Current service cost | 2.7 | 3.4 |
Settlement gains | -6.9 | -1.9 |
Conversion costs | 2.1 | \u2014 |
Net interest | -0.2 | -0.3 |
Total | -2.3 | 1.1 |
Amounts recognized in other comprehensive income | ||
Remeasurement | ||
Gains (-)/losses (+) from change in demographic assumptions | 0.0 | 0.1 |
Gains (-)/losses (+) from change in financial assumptions | -4.5 | -1.4 |
Gains (-)/losses (+) from experience adjustments | -0.5 | 0.5 |
Gains (-)/losses (+) on plan assets | 3.0 | 2.7 |
Total | -2.0 | 1.9 |
EUR million | 2022 | 2021 |
Defined benefit obligations | 28.4 | 38.7 |
Defined benefit plan assets | -0.6 | -0.7 |
Net liability | 27.8 | 38.0 |
2022 | 2021 | |||
EUR million | % | EUR million | % | |
In Sweden, plan assets are comprised as follows | ||||
Equity instruments | 0.2 | 19.8 | 2.1 | 26.6 |
Debt instruments | 0.5 | 41.8 | 3.2 | 40.8 |
Property | 0.1 | 9.8 | 0.7 | 8.9 |
Other | 0.4 | 28.6 | 1.9 | 23.7 |
Total | 1.2 | 100.0 | 7.9 | 100.0 |
% | 2022 | 2021 |
Finland | ||
Discount rate | 3.1 | 1.0 |
Future salary increases | 4.3 | 3.7 |
Future pension increases | 2.8 | 2.3 |
Inflation rate | 2.6 | 2.0 |
Sweden | ||
Discount rate | 3.7 | 1.9 |
Future salary increases | 2.0 | 2.2 |
Future pension increases | 2.0 | 2.2 |
Inflation rate | 2.0 | 2.2 |
Norway | ||
Discount rate | 3.0 | 1.9 |
Future salary increases | 3.5 | 2.8 |
Growth in the basic state pension (G) | 3.3 | 2.5 |
Change in assumption | Increase in assumption | Decrease in assumption | |
Impact on defined benefit obligation in Finland | |||
Discount rate | 0.5% | -7.3% | 8.1% |
Future pension increase | 0.5% | 7.6% | -6.9% |
Life expectancy | +1 year | 4.9% | |
Impact on defined benefit obligation in Sweden | |||
Discount rate | 0.5% | -11.9% | 13.4% |
Future salary increase | 0.5% | 15.5% | -14.4% |
Future pension increase | 0.5% | 9.9% | -9.2% |
Life expectancy | +1 year | 4.3% | |
Impact on defined benefit obligation in Norway | |||
Discount rate | 0.5% | -1.8% | 2.1% |
Future salary increase | 0.5% | 0.2% | -0.2% |
Future pension increase | 0.5% | 1.6% | \u2014% |
Life expectancy | +1 year | 1.1% |
ACCOUNTING POLICIES | |||
Employee benefits are recognised in the period in which services are rendered by the employees. Termination benefits are recognised at the time an agreement between the Group and the employee is made and no future service is rendered by the employee in exchange for the benefits. | |||
Share-based incentive plans | |||
Tietoevry has share-based incentive plans for its key employees which are accounted for as equity- settled. The plans are valued at fair value based on the market price of Tietoevry shares at the grant date and recognized as an employee benefit expense during the vesting period with a corresponding entry in equity. At each reporting date, the number of shares that are expected to vest from the Group\u2019s share-based incentive plans is revised. As part of this evaluation, the changes in the forecasted performance of the Group, the expected turnover of the personnel participating in the plans and other information impacting the number of shares to vest, is taken into consideration. Any adjustments to the initial estimates is recognized in profit or loss and a corresponding adjustment is made to equity. |
ACCOUNTING POLICIES | |||
The fixed contributions to defined contribution plans are recognized as employee benefit expenses in the period to which they relate. The Group has no further legal or constructive payment obligations once the contributions have been paid. | |||
Defined benefit plans typically define an amount of post-employment benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. Defined benefit plans are funded with payments to insurance companies. | |||
For defined benefit plans, the net liability recognized in the statement of financial position equals the present value of the defined benefit obligation at the closing date less the fair value of the plan assets. The present value of the defined benefit obligation is determined separately for each plan by independent actuaries using the projected unit credit method. The actuarial calculations include several financial and demographic assumptions and any change in these will impact the carrying amount and future expense of the defined benefit obligation. | |||
Current service costs, past service costs and gains or losses on settlements are recognized in employee benefit expenses. Net interest expense or income is recognized in financial items under interest expense or interest income. All remeasurements of the defined benefit liability or asset arising from experience adjustments and changes in actuarial assumptions are recognized directly in other comprehensive income. |
Performance Share Plan | |||
2020\u20132022 | 2021\u20132023 | 2022\u20132024 | |
Plan launched | 18 December 2019 | 16 February 2021 | 16 February 2022 |
Performance period | 2020\u20132022 | 2021\u20132023 | 2022\u20132024 |
Vesting conditions | Total Shareholder Return of Tietoevry share (TSR)\u00a0 and Tietoevry's Earnings per Share (EPS). Valid employment or director agreement of a key employee upon the reward payment. | Total Shareholder Return of Tietoevry share (TSR), strategic target related to Tietoevry's growth and Tietoevry's Earnings per Share (EPS). Valid employment or director agreement of a key employee upon the reward payment. | Relative and absolute Total Shareholder Return of Tietoevry share (TSR), Revenue growth and ESG target. Valid employment or director agreement of a key employee upon the reward payment. |
Exercised | In shares and cash in 2023 | In shares and cash in 2024 | In shares and cash in 2025 |
Number of participants on 31\u00a0Dec\u00a02022 | 156 | 99 | 523 |
Other | On 31\u00a0Dec 2022, rewards to be paid correspond to the value of approximate number of 521 292 Tietoevry gross shares. | On 31\u00a0Dec 2022, rewards to be paid correspond to the value of approximate number of 464 180 Tietoevry gross shares. | On 31\u00a0Dec 2022, rewards to be paid correspond to the value of approximate number of 980 904 Tietoevry gross shares. |
Restricted Share Plan | |||
2020\u20132022 | 2021\u20132023 | 2022\u20132024 | |
Plan launched | 18 December 2019 | 16 February 2021 | 16 February 2022 |
Vesting period | 2020\u20132022 | 2021\u20132023 | 2022\u20132024 |
Vesting conditions | Valid employment or director agreement of a key employee upon the reward payment. | ||
Exercised | In shares and cash in 2023 | In shares and cash in 2024 | In shares and cash in 2025 |
Number of participants on 31\u00a0Dec\u00a02022 | 371 | 421 | 157 |
Other | On 31\u00a0Dec 2022, rewards to be paid correspond to the value of approximate number of 221 352 Tietoevry gross shares. | On 31\u00a0Dec 2022, rewards to be paid correspond to the value of approximate number of 216 680 Tietoevry gross shares. | On 31\u00a0Dec 2022, rewards to be paid correspond to the value of approximate number of 61 800 Tietoevry gross shares. |
EUR million | 2022 | 2021 |
Equity-settled share-based incentive plans | 6.9 | 8.7 |
Social costs settled in cash1) | 1.3 | 1.4 |
Total | 8.2 | 10.1 |
ACCOUNTING POLICIES | |||
Tax expense for the period includes current taxes of the Group companies based on taxable profit for the year, together with tax adjustments for previous years and changes in deferred taxes. Tax is recognized in the income statement, except to the extent that it relates to items recognized in other comprehensive income or directly in equity, in which case the related income tax is also recognized in other comprehensive income or directly in equity, respectively. The share of results in joint ventures is reported in the income statement based on the net result and thus, including the income tax effect. | |||
Deferred\u00a0 income tax is recognized, using the liability method, on temporary differences between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements as well as on tax loss carry forwards. Deferred income tax is determined using the tax rates and laws which have been enacted or substantively enacted at the reporting date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred taxes are not recognized on temporary differences related to investments in subsidiaries to the extent that they will probably not be reversed in the foreseeable future. | |||
A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. The deferred tax assets and liabilities arising from consolidation are recognized in the consolidated statement of financial position if it is probable that the related tax effects will occur. |
ACCOUNTING ESTIMATES AND JUDGEMENTS | |||
At each reporting date, management estimates the amount of probable future taxable profits against which unused tax losses can be utilized. As the actual profits may differ from the forecasts, the change will affect the taxes in future periods. | |||
The group operates globally and is, therefore subject to changing tax laws in multiple jurisdictions. The interpretation of tax legislation requires management judgement, and the applied interpretations may include uncertainties. |
EUR million | 2022 | 2021 |
Current taxes | 43.7 | 48.9 |
Change of deferred taxes | 5.8 | 7.3 |
Taxes for prior years | 4.7 | 6.0 |
Total | 54.2 | 62.2 |
Reconciliation of income tax expense | ||
Profit before taxes | 242.8 | 353.8 |
Tax calculated at the domestic corporation tax rate of 20% | 48.6 | 70.8 |
Effect of different tax rates in foreign subsidiaries | 2.4 | 3.8 |
Taxes for prior years | 4.7 | 6.0 |
Deferred taxes from previous year | -4.9 | -4.2 |
Tax effect of non-deductible expenses and tax exempt income | 2.3 | -16.3 |
Tax on foreign dividend distribution | 2.9 | 4.1 |
Other items | -1.8 | -2.0 |
Total | 54.2 | 62.2 |
Effective tax rate, % | 22.3 | 17.6 |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Deferred tax assets | 14.6 | 19.1 |
Deferred tax liabilities | 10.7 | 9.1 |
Net deferred tax asset | 3.9 | 10.0 |
EUR million | 1\u00a0Jan\u00a02022 | Charged to income statement | Charged to other comprehensive income | Other changes | 31\u00a0Dec 2022 |
Deferred tax asset | |||||
Provisions | 3.6 | -0.4 | \u2014 | -0.2 | 3.0 |
Employee benefits | 11.8 | -0.7 | -0.4 | -0.5 | 10.2 |
Depreciation difference | 7.7 | 3.2 | \u2014 | -0.1 | 10.8 |
Other temporary difference | 9.8 | -1.6 | \u2014 | -0.1 | 8.1 |
Revenue recognition | 9.5 | -2.8 | \u2014 | -0.4 | 6.3 |
Tax losses carried forward | 49.6 | -9.8 | \u2014 | -0.8 | 39.0 |
Total gross | 92.0 | -12.1 | -0.4 | -2.1 | 77.4 |
Offset against deferred tax liabilities | -72.9 | -62.8 | |||
Total net | 19.1 | 14.6 | |||
Deferred tax liability | |||||
Intangible assets | 64.1 | -14.4 | \u2014 | -1.3 | 48.4 |
Untaxed reserves | 9.5 | 2.0 | \u2014 | -0.8 | 10.7 |
Other temporary difference | 8.4 | 6.1 | \u2014 | -0.1 | 14.4 |
Total gross | 82.0 | -6.3 | \u2014 | -2.2 | 73.5 |
Offset against deferred tax assets | -72.9 | -62.8 | |||
Total net | 9.1 | 10.7 | |||
Net deferred tax asset | 10.0 | -5.8 | -0.4 | 0.1 | 3.9 |
EUR million | 1\u00a0Jan\u00a02022 | Charged to income statement | Charged to other comprehensive income | Other changes | 31\u00a0Dec 2022 |
Deferred tax asset | |||||
Provisions | 3.6 | -0.4 | \u2014 | -0.2 | 3.0 |
Employee benefits | 11.8 | -0.7 | -0.4 | -0.5 | 10.2 |
Depreciation difference | 7.7 | 3.2 | \u2014 | -0.1 | 10.8 |
Other temporary difference | 9.8 | -1.6 | \u2014 | -0.1 | 8.1 |
Revenue recognition | 9.5 | -2.8 | \u2014 | -0.4 | 6.3 |
Tax losses carried forward | 49.6 | -9.8 | \u2014 | -0.8 | 39.0 |
Total gross | 92.0 | -12.1 | -0.4 | -2.1 | 77.4 |
Offset against deferred tax liabilities | -72.9 | -62.8 | |||
Total net | 19.1 | 14.6 | |||
Deferred tax liability | |||||
Intangible assets | 64.1 | -14.4 | \u2014 | -1.3 | 48.4 |
Untaxed reserves | 9.5 | 2.0 | \u2014 | -0.8 | 10.7 |
Other temporary difference | 8.4 | 6.1 | \u2014 | -0.1 | 14.4 |
Total gross | 82.0 | -6.3 | \u2014 | -2.2 | 73.5 |
Offset against deferred tax assets | -72.9 | -62.8 | |||
Total net | 9.1 | 10.7 | |||
Net deferred tax asset | 10.0 | -5.8 | -0.4 | 0.1 | 3.9 |
ACCOUNTING POLICIES | |||
Basic Earnings per share (EPS) is calculated by dividing the net profit attributable to the shareholders of the Parent company by the weighted average number of shares in issue during the year, excluding shares purchased by Tietoevry and held as own shares. | |||
Diluted earnings per share is calculated by adjusting the weighted average number of shares outstanding during the year with the shares estimated to be delivered based on the share-based incentive plans. |
2022 | 2021 | |
Net profit for the financial year attributable to owners of the Parent company (EUR million) | 188.6 | 291.6 |
Earnings per share (EUR) | ||
Basic | 1.59 | 2.46 |
Diluted | 1.59 | 2.46 |
Weighted average number of shares during the year | ||
Basic | 118\u00a0405\u00a0657 | 118\u00a0408\u00a0223 |
Effect of dilutive share-based incentive plans | 203\u00a0952 | 276\u00a0585 |
Diluted | 118\u00a0609\u00a0609 | 118\u00a0684\u00a0808 |
ACCOUNTING POLICIES | |||
Intangible assets other than goodwill are recognized initially at cost. An intangible asset is recognized only if it is probable that the future economic benefits attributable to the asset will flow to the Group and the cost of the asset can be measured reliably. All other costs are expensed as incurred. | |||
After initial recognition, intangible assets are measured at cost less amortizations and accumulated impairment losses. Intangible assets are amortized over their useful lives with the straight-line method. Assets that are subject to amortization are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount of the intangible asset exceeds its recoverable amount, an impairment loss equal to the difference is recognized in profit or loss.\u00a0 | |||
Internally developed software | |||
Development costs related to major new software products are capitalized as intangible assets when it is probable that the development will generate future economic benefits for the Group, and certain criteria related to commercial and technological feasibility are met. Development projects are analysed individually to determine the moment when the project has reached a milestone after which capitalization of development costs can start. Capitalization is subject to CFO's approval. Only costs which are directly attributable to the development are capitalised. |
Subsequent to initial recognition, these costs are measured at cost less accumulated amortization and impairment losses. The amortization period for internally developed software depends on the technology renewal cycle and contract duration. Internally developed software for which amortization has not yet started are tested for impairment on an annual basis by comparing the asset's carrying amount with its recoverable amount. If the carrying amount exceeds the recoverable amount, an impairment loss equal to the difference is recognized in profit or loss.\u00a0 | |||
Intangible assets recognised from acquisitions | |||
Intangible assets acquired in business combinations are measured at fair value at the acquisition date. These are usually customer or technology related and have finite useful lives. | |||
Gains and losses on disposal of intangible assets are included in other operating income and expenses. | |||
The Group applies the following useful lives: |
Years | |
Software acquired separately | 3 |
Other intangible assets | 3\u201310 |
Technology related intangible assets recognized at fair value from acquisitions | 3\u201315 |
Customer related intangible assets recognized at fair value from acquisitions | 2\u201310 |
Trademark recognized at fair value from acquisitions | 6 |
Internally developed software (capitalized development costs) | 5\u201315 |
Goodwill | |||
Goodwill arising on a business combination represents the excess of the aggregate of the consideration transferred, the amount of non-controlling interests in the acquiree and previously held equity interest in the acquiree over the fair value of the Group\u2019s share of the identifiable net assets acquired. Goodwill is measured at cost less accumulated impairment losses. It is not amortized, but tested for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purpose of impairment testing, goodwill is allocated to the operating segments of the Group, which are the cash generating units (CGU) expected to benefit from the synergies of the business combination. If the carrying amount of goodwill allocated to the operating segments exceeds its recoverable amount, an impairment loss equal to the difference is recognized in profit or loss. The recoverable amount is the higher of the value in use represented by the net present value of future cash flows and the fair value less costs to sell. Impairment losses on goodwill are not reversed. | |||
In respect of joint ventures, goodwill is included in the carrying amount of the investment. |
ACCOUNTING ESTIMATES AND JUDGEMENTS | |||
Estimates are made when determining the fair values of assets acquired in a business combination. The valuation requires management to determine the appropriate valuation technique and inputs for fair value measurements, such as discount rate. | |||
Determining whether goodwill is impaired requires an estimation of the value-in-use of the cash- generating units (CGU) to which goodwill has been allocated. The value-in-use calculation requires management to estimate the future cash flows expected to arise from the CGUs and an appropriate discount rate to calculate present value. | |||
While management believes that the used estimates and assumptions are sufficiently reasonable, there are uncertainties which could materially affect the valuations. | |||
Tietoevry has reorganized its reporting structure in 2022 and reallocated the goodwill to the new CGUs which are the operating segments of the Group. The reallocation of the goodwill has required management judgement. |
EUR million | Goodwill | Software acquired separately | Intangible assets recognized from acquisitions1) | Internally developed software2) | Other | Advance payments | Total |
Acquisition cost 1\u00a0Jan\u00a02022 | 1\u00a0943.7 | 49.6 | 308.6 | 285.3 | 38.2 | 3.5 | 2\u00a0628.9 |
Additions | \u2014 | 2.7 | \u2014 | 37.2 | 0.9 | 2.7 | 43.5 |
Disposals | \u2014 | -25.2 | \u2014 | \u2014 | -9.7 | -0.7 | -35.7 |
Reclassifications | \u2014 | 3.6 | \u2014 | -1.9 | 0.1 | -2.2 | -0.5 |
Translation differences | -97.1 | -1.1 | -17.3 | -12.2 | -0.1 | -0.0 | -128.0 |
Acquisition cost 31\u00a0Dec 2022 | 1\u00a0846.5 | 29.5 | 291.3 | 308.3 | 29.3 | 3.3 | 2\u00a0508.2 |
Accumulated amortization and impairments 1\u00a0Jan\u00a02022 | \u2014 | -42.5 | -115.4 | -103.3 | -35.3 | -0.7 | -297.3 |
Disposals | \u2014 | 25.2 | \u2014 | \u2014 | 9.7 | 0.7 | 35.7 |
Amortization | \u2014 | -6.0 | -46.7 | -4.8 | -0.9 | \u2014 | -58.5 |
Impairments | \u2014 | \u2014 | \u2014 | -18.7 | \u2014 | \u2014 | -18.7 |
Reclassifications | \u2014 | -0.4 | \u2014 | \u2014 | 0.3 | \u2014 | 0.0 |
Translation differences | \u2014 | 1.0 | 8.5 | 4.3 | 0.1 | \u2014 | 13.9 |
Accumulated amortization and impairments 31\u00a0Dec 2022 | \u2014 | -22.6 | -153.6 | -122.6 | -26.1 | 0.0 | -324.9 |
Carrying value 1\u00a0Jan\u00a02022 | 1\u00a0943.7 | 7.1 | 193.2 | 182.0 | 2.8 | 2.8 | 2\u00a0331.6 |
Carrying value 31\u00a0Dec 2022 | 1\u00a0846.5 | 6.9 | 137.7 | 185.7 | 3.2 | 3.3 | 2\u00a0183.3 |
EUR million | Goodwill | Software acquired separately | Intangible assets recognized from acquisitions1) | Internally developed software2) | Other | Advance payments | Total |
Acquisition cost 1\u00a0Jan\u00a02021 | 1\u00a0974.4 | 48.2 | 301.7 | 240.0 | 40.3 | 1.3 | 2\u00a0605.9 |
Additions | \u2014 | 5.0 | \u2014 | 42.6 | 1.3 | 2.7 | 51.7 |
Disposals | -77.6 | -5.0 | -2.7 | -6.0 | -3.8 | \u2014 | -95.1 |
Reclassifications | \u2014 | 1.2 | \u2014 | -0.9 | 0.0 | -0.4 | -0.1 |
Translation differences | 46.9 | 0.2 | 9.6 | 9.6 | 0.3 | -0.0 | 66.6 |
Acquisition cost 31\u00a0Dec\u00a02021 | 1\u00a0943.7 | 49.6 | 308.6 | 285.3 | 38.2 | 3.5 | 2\u00a0628.9 |
Accumulated amortization and impairments 1\u00a0Jan\u00a02021 | \u2014 | -42.4 | -67.8 | -97.3 | -38.3 | -0.7 | -246.6 |
Disposals | \u2014 | 5.0 | 2.1 | 3.8 | 3.7 | \u2014 | 14.6 |
Amortization | \u2014 | -4.5 | -47.3 | -6.6 | -0.4 | \u2014 | -58.9 |
Reclassifications | \u2014 | -0.4 | \u2014 | 0.5 | 0.0 | \u2014 | 0.1 |
Translation differences | \u2014 | -0.2 | -2.4 | -3.7 | -0.3 | 0.0 | -6.5 |
Accumulated amortization and impairments 31\u00a0Dec\u00a02021 | \u2014 | -42.5 | -115.4 | -103.3 | -35.3 | -0.7 | -297.3 |
Carrying value 1\u00a0Jan\u00a02021 | 1\u00a0974.4 | 5.8 | 233.9 | 142.7 | 1.9 | 0.5 | 2\u00a0359.3 |
Carrying value 31\u00a0Dec\u00a02021 | 1\u00a0943.7 | 7.1 | 193.2 | 182.0 | 2.8 | 2.8 | 2\u00a0331.6 |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Tietoevry Create | 575.5 | 600.8 |
Tietoevry Banking | 325.9 | 344.6 |
Tietoevry Care | 273.5 | 289.1 |
Tietoevry Industry | 197.5 | 208.8 |
Tietoevry Transform | 171.1 | 180.5 |
Tietoevry Connect | 303.0 | 319.9 |
Total | 1\u00a0846.5 | 1\u00a0943.7 |
2022 | Five-year period 2023\u20132027 | |
Terminal growth rate % | Pre-tax WACC % | |
Tietoevry Create | 1.0 | 11.8 |
Tietoevry Banking | 1.0 | 9.0 |
Tietoevry Care | 1.0 | 8.7 |
Tietoevry Industry | 1.0 | 8.8 |
Tietoevry Transform | 1.0 | 8.9 |
Tietoevry Connect | 1.0 | 8.7 |
ACCOUNTING POLICIES | |||
Intangible assets other than goodwill are recognized initially at cost. An intangible asset is recognized only if it is probable that the future economic benefits attributable to the asset will flow to the Group and the cost of the asset can be measured reliably. All other costs are expensed as incurred. | |||
After initial recognition, intangible assets are measured at cost less amortizations and accumulated impairment losses. Intangible assets are amortized over their useful lives with the straight-line method. Assets that are subject to amortization are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount of the intangible asset exceeds its recoverable amount, an impairment loss equal to the difference is recognized in profit or loss.\u00a0 | |||
Internally developed software | |||
Development costs related to major new software products are capitalized as intangible assets when it is probable that the development will generate future economic benefits for the Group, and certain criteria related to commercial and technological feasibility are met. Development projects are analysed individually to determine the moment when the project has reached a milestone after which capitalization of development costs can start. Capitalization is subject to CFO's approval. Only costs which are directly attributable to the development are capitalised. |
Subsequent to initial recognition, these costs are measured at cost less accumulated amortization and impairment losses. The amortization period for internally developed software depends on the technology renewal cycle and contract duration. Internally developed software for which amortization has not yet started are tested for impairment on an annual basis by comparing the asset's carrying amount with its recoverable amount. If the carrying amount exceeds the recoverable amount, an impairment loss equal to the difference is recognized in profit or loss.\u00a0 | |||
Intangible assets recognised from acquisitions | |||
Intangible assets acquired in business combinations are measured at fair value at the acquisition date. These are usually customer or technology related and have finite useful lives. | |||
Gains and losses on disposal of intangible assets are included in other operating income and expenses. | |||
The Group applies the following useful lives: |
Years | |
Software acquired separately | 3 |
Other intangible assets | 3\u201310 |
Technology related intangible assets recognized at fair value from acquisitions | 3\u201315 |
Customer related intangible assets recognized at fair value from acquisitions | 2\u201310 |
Trademark recognized at fair value from acquisitions | 6 |
Internally developed software (capitalized development costs) | 5\u201315 |
Goodwill | |||
Goodwill arising on a business combination represents the excess of the aggregate of the consideration transferred, the amount of non-controlling interests in the acquiree and previously held equity interest in the acquiree over the fair value of the Group\u2019s share of the identifiable net assets acquired. Goodwill is measured at cost less accumulated impairment losses. It is not amortized, but tested for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purpose of impairment testing, goodwill is allocated to the operating segments of the Group, which are the cash generating units (CGU) expected to benefit from the synergies of the business combination. If the carrying amount of goodwill allocated to the operating segments exceeds its recoverable amount, an impairment loss equal to the difference is recognized in profit or loss. The recoverable amount is the higher of the value in use represented by the net present value of future cash flows and the fair value less costs to sell. Impairment losses on goodwill are not reversed. | |||
In respect of joint ventures, goodwill is included in the carrying amount of the investment. |
ACCOUNTING ESTIMATES AND JUDGEMENTS | |||
Estimates are made when determining the fair values of assets acquired in a business combination. The valuation requires management to determine the appropriate valuation technique and inputs for fair value measurements, such as discount rate. | |||
Determining whether goodwill is impaired requires an estimation of the value-in-use of the cash- generating units (CGU) to which goodwill has been allocated. The value-in-use calculation requires management to estimate the future cash flows expected to arise from the CGUs and an appropriate discount rate to calculate present value. | |||
While management believes that the used estimates and assumptions are sufficiently reasonable, there are uncertainties which could materially affect the valuations. | |||
Tietoevry has reorganized its reporting structure in 2022 and reallocated the goodwill to the new CGUs which are the operating segments of the Group. The reallocation of the goodwill has required management judgement. |
EUR million | Goodwill | Software acquired separately | Intangible assets recognized from acquisitions1) | Internally developed software2) | Other | Advance payments | Total |
Acquisition cost 1\u00a0Jan\u00a02022 | 1\u00a0943.7 | 49.6 | 308.6 | 285.3 | 38.2 | 3.5 | 2\u00a0628.9 |
Additions | \u2014 | 2.7 | \u2014 | 37.2 | 0.9 | 2.7 | 43.5 |
Disposals | \u2014 | -25.2 | \u2014 | \u2014 | -9.7 | -0.7 | -35.7 |
Reclassifications | \u2014 | 3.6 | \u2014 | -1.9 | 0.1 | -2.2 | -0.5 |
Translation differences | -97.1 | -1.1 | -17.3 | -12.2 | -0.1 | -0.0 | -128.0 |
Acquisition cost 31\u00a0Dec 2022 | 1\u00a0846.5 | 29.5 | 291.3 | 308.3 | 29.3 | 3.3 | 2\u00a0508.2 |
Accumulated amortization and impairments 1\u00a0Jan\u00a02022 | \u2014 | -42.5 | -115.4 | -103.3 | -35.3 | -0.7 | -297.3 |
Disposals | \u2014 | 25.2 | \u2014 | \u2014 | 9.7 | 0.7 | 35.7 |
Amortization | \u2014 | -6.0 | -46.7 | -4.8 | -0.9 | \u2014 | -58.5 |
Impairments | \u2014 | \u2014 | \u2014 | -18.7 | \u2014 | \u2014 | -18.7 |
Reclassifications | \u2014 | -0.4 | \u2014 | \u2014 | 0.3 | \u2014 | 0.0 |
Translation differences | \u2014 | 1.0 | 8.5 | 4.3 | 0.1 | \u2014 | 13.9 |
Accumulated amortization and impairments 31\u00a0Dec 2022 | \u2014 | -22.6 | -153.6 | -122.6 | -26.1 | 0.0 | -324.9 |
Carrying value 1\u00a0Jan\u00a02022 | 1\u00a0943.7 | 7.1 | 193.2 | 182.0 | 2.8 | 2.8 | 2\u00a0331.6 |
Carrying value 31\u00a0Dec 2022 | 1\u00a0846.5 | 6.9 | 137.7 | 185.7 | 3.2 | 3.3 | 2\u00a0183.3 |
EUR million | Goodwill | Software acquired separately | Intangible assets recognized from acquisitions1) | Internally developed software2) | Other | Advance payments | Total |
Acquisition cost 1\u00a0Jan\u00a02021 | 1\u00a0974.4 | 48.2 | 301.7 | 240.0 | 40.3 | 1.3 | 2\u00a0605.9 |
Additions | \u2014 | 5.0 | \u2014 | 42.6 | 1.3 | 2.7 | 51.7 |
Disposals | -77.6 | -5.0 | -2.7 | -6.0 | -3.8 | \u2014 | -95.1 |
Reclassifications | \u2014 | 1.2 | \u2014 | -0.9 | 0.0 | -0.4 | -0.1 |
Translation differences | 46.9 | 0.2 | 9.6 | 9.6 | 0.3 | -0.0 | 66.6 |
Acquisition cost 31\u00a0Dec\u00a02021 | 1\u00a0943.7 | 49.6 | 308.6 | 285.3 | 38.2 | 3.5 | 2\u00a0628.9 |
Accumulated amortization and impairments 1\u00a0Jan\u00a02021 | \u2014 | -42.4 | -67.8 | -97.3 | -38.3 | -0.7 | -246.6 |
Disposals | \u2014 | 5.0 | 2.1 | 3.8 | 3.7 | \u2014 | 14.6 |
Amortization | \u2014 | -4.5 | -47.3 | -6.6 | -0.4 | \u2014 | -58.9 |
Reclassifications | \u2014 | -0.4 | \u2014 | 0.5 | 0.0 | \u2014 | 0.1 |
Translation differences | \u2014 | -0.2 | -2.4 | -3.7 | -0.3 | 0.0 | -6.5 |
Accumulated amortization and impairments 31\u00a0Dec\u00a02021 | \u2014 | -42.5 | -115.4 | -103.3 | -35.3 | -0.7 | -297.3 |
Carrying value 1\u00a0Jan\u00a02021 | 1\u00a0974.4 | 5.8 | 233.9 | 142.7 | 1.9 | 0.5 | 2\u00a0359.3 |
Carrying value 31\u00a0Dec\u00a02021 | 1\u00a0943.7 | 7.1 | 193.2 | 182.0 | 2.8 | 2.8 | 2\u00a0331.6 |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Tietoevry Create | 575.5 | 600.8 |
Tietoevry Banking | 325.9 | 344.6 |
Tietoevry Care | 273.5 | 289.1 |
Tietoevry Industry | 197.5 | 208.8 |
Tietoevry Transform | 171.1 | 180.5 |
Tietoevry Connect | 303.0 | 319.9 |
Total | 1\u00a0846.5 | 1\u00a0943.7 |
2022 | Five-year period 2023\u20132027 | |
Terminal growth rate % | Pre-tax WACC % | |
Tietoevry Create | 1.0 | 11.8 |
Tietoevry Banking | 1.0 | 9.0 |
Tietoevry Care | 1.0 | 8.7 |
Tietoevry Industry | 1.0 | 8.8 |
Tietoevry Transform | 1.0 | 8.9 |
Tietoevry Connect | 1.0 | 8.7 |
Subsequent to initial recognition, these costs are measured at cost less accumulated amortization and impairment losses. The amortization period for internally developed software depends on the technology renewal cycle and contract duration. Internally developed software for which amortization has not yet started are tested for impairment on an annual basis by comparing the asset's carrying amount with its recoverable amount. If the carrying amount exceeds the recoverable amount, an impairment loss equal to the difference is recognized in profit or loss.\u00a0 | |||
Intangible assets recognised from acquisitions | |||
Intangible assets acquired in business combinations are measured at fair value at the acquisition date. These are usually customer or technology related and have finite useful lives. | |||
Gains and losses on disposal of intangible assets are included in other operating income and expenses. | |||
The Group applies the following useful lives: |
Years | |
Software acquired separately | 3 |
Other intangible assets | 3\u201310 |
Technology related intangible assets recognized at fair value from acquisitions | 3\u201315 |
Customer related intangible assets recognized at fair value from acquisitions | 2\u201310 |
Trademark recognized at fair value from acquisitions | 6 |
Internally developed software (capitalized development costs) | 5\u201315 |
Goodwill | |||
Goodwill arising on a business combination represents the excess of the aggregate of the consideration transferred, the amount of non-controlling interests in the acquiree and previously held equity interest in the acquiree over the fair value of the Group\u2019s share of the identifiable net assets acquired. Goodwill is measured at cost less accumulated impairment losses. It is not amortized, but tested for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purpose of impairment testing, goodwill is allocated to the operating segments of the Group, which are the cash generating units (CGU) expected to benefit from the synergies of the business combination. If the carrying amount of goodwill allocated to the operating segments exceeds its recoverable amount, an impairment loss equal to the difference is recognized in profit or loss. The recoverable amount is the higher of the value in use represented by the net present value of future cash flows and the fair value less costs to sell. Impairment losses on goodwill are not reversed. | |||
In respect of joint ventures, goodwill is included in the carrying amount of the investment. |
Years | |
Software acquired separately | 3 |
Other intangible assets | 3\u201310 |
Technology related intangible assets recognized at fair value from acquisitions | 3\u201315 |
Customer related intangible assets recognized at fair value from acquisitions | 2\u201310 |
Trademark recognized at fair value from acquisitions | 6 |
Internally developed software (capitalized development costs) | 5\u201315 |
Goodwill | |||
Goodwill arising on a business combination represents the excess of the aggregate of the consideration transferred, the amount of non-controlling interests in the acquiree and previously held equity interest in the acquiree over the fair value of the Group\u2019s share of the identifiable net assets acquired. Goodwill is measured at cost less accumulated impairment losses. It is not amortized, but tested for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purpose of impairment testing, goodwill is allocated to the operating segments of the Group, which are the cash generating units (CGU) expected to benefit from the synergies of the business combination. If the carrying amount of goodwill allocated to the operating segments exceeds its recoverable amount, an impairment loss equal to the difference is recognized in profit or loss. The recoverable amount is the higher of the value in use represented by the net present value of future cash flows and the fair value less costs to sell. Impairment losses on goodwill are not reversed. | |||
In respect of joint ventures, goodwill is included in the carrying amount of the investment. |
EUR million | Goodwill | Software acquired separately | Intangible assets recognized from acquisitions1) | Internally developed software2) | Other | Advance payments | Total |
Acquisition cost 1\u00a0Jan\u00a02022 | 1\u00a0943.7 | 49.6 | 308.6 | 285.3 | 38.2 | 3.5 | 2\u00a0628.9 |
Additions | \u2014 | 2.7 | \u2014 | 37.2 | 0.9 | 2.7 | 43.5 |
Disposals | \u2014 | -25.2 | \u2014 | \u2014 | -9.7 | -0.7 | -35.7 |
Reclassifications | \u2014 | 3.6 | \u2014 | -1.9 | 0.1 | -2.2 | -0.5 |
Translation differences | -97.1 | -1.1 | -17.3 | -12.2 | -0.1 | -0.0 | -128.0 |
Acquisition cost 31\u00a0Dec 2022 | 1\u00a0846.5 | 29.5 | 291.3 | 308.3 | 29.3 | 3.3 | 2\u00a0508.2 |
Accumulated amortization and impairments 1\u00a0Jan\u00a02022 | \u2014 | -42.5 | -115.4 | -103.3 | -35.3 | -0.7 | -297.3 |
Disposals | \u2014 | 25.2 | \u2014 | \u2014 | 9.7 | 0.7 | 35.7 |
Amortization | \u2014 | -6.0 | -46.7 | -4.8 | -0.9 | \u2014 | -58.5 |
Impairments | \u2014 | \u2014 | \u2014 | -18.7 | \u2014 | \u2014 | -18.7 |
Reclassifications | \u2014 | -0.4 | \u2014 | \u2014 | 0.3 | \u2014 | 0.0 |
Translation differences | \u2014 | 1.0 | 8.5 | 4.3 | 0.1 | \u2014 | 13.9 |
Accumulated amortization and impairments 31\u00a0Dec 2022 | \u2014 | -22.6 | -153.6 | -122.6 | -26.1 | 0.0 | -324.9 |
Carrying value 1\u00a0Jan\u00a02022 | 1\u00a0943.7 | 7.1 | 193.2 | 182.0 | 2.8 | 2.8 | 2\u00a0331.6 |
Carrying value 31\u00a0Dec 2022 | 1\u00a0846.5 | 6.9 | 137.7 | 185.7 | 3.2 | 3.3 | 2\u00a0183.3 |
EUR million | Goodwill | Software acquired separately | Intangible assets recognized from acquisitions1) | Internally developed software2) | Other | Advance payments | Total |
Acquisition cost 1\u00a0Jan\u00a02021 | 1\u00a0974.4 | 48.2 | 301.7 | 240.0 | 40.3 | 1.3 | 2\u00a0605.9 |
Additions | \u2014 | 5.0 | \u2014 | 42.6 | 1.3 | 2.7 | 51.7 |
Disposals | -77.6 | -5.0 | -2.7 | -6.0 | -3.8 | \u2014 | -95.1 |
Reclassifications | \u2014 | 1.2 | \u2014 | -0.9 | 0.0 | -0.4 | -0.1 |
Translation differences | 46.9 | 0.2 | 9.6 | 9.6 | 0.3 | -0.0 | 66.6 |
Acquisition cost 31\u00a0Dec\u00a02021 | 1\u00a0943.7 | 49.6 | 308.6 | 285.3 | 38.2 | 3.5 | 2\u00a0628.9 |
Accumulated amortization and impairments 1\u00a0Jan\u00a02021 | \u2014 | -42.4 | -67.8 | -97.3 | -38.3 | -0.7 | -246.6 |
Disposals | \u2014 | 5.0 | 2.1 | 3.8 | 3.7 | \u2014 | 14.6 |
Amortization | \u2014 | -4.5 | -47.3 | -6.6 | -0.4 | \u2014 | -58.9 |
Reclassifications | \u2014 | -0.4 | \u2014 | 0.5 | 0.0 | \u2014 | 0.1 |
Translation differences | \u2014 | -0.2 | -2.4 | -3.7 | -0.3 | 0.0 | -6.5 |
Accumulated amortization and impairments 31\u00a0Dec\u00a02021 | \u2014 | -42.5 | -115.4 | -103.3 | -35.3 | -0.7 | -297.3 |
Carrying value 1\u00a0Jan\u00a02021 | 1\u00a0974.4 | 5.8 | 233.9 | 142.7 | 1.9 | 0.5 | 2\u00a0359.3 |
Carrying value 31\u00a0Dec\u00a02021 | 1\u00a0943.7 | 7.1 | 193.2 | 182.0 | 2.8 | 2.8 | 2\u00a0331.6 |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Tietoevry Create | 575.5 | 600.8 |
Tietoevry Banking | 325.9 | 344.6 |
Tietoevry Care | 273.5 | 289.1 |
Tietoevry Industry | 197.5 | 208.8 |
Tietoevry Transform | 171.1 | 180.5 |
Tietoevry Connect | 303.0 | 319.9 |
Total | 1\u00a0846.5 | 1\u00a0943.7 |
2022 | Five-year period 2023\u20132027 | |
Terminal growth rate % | Pre-tax WACC % | |
Tietoevry Create | 1.0 | 11.8 |
Tietoevry Banking | 1.0 | 9.0 |
Tietoevry Care | 1.0 | 8.7 |
Tietoevry Industry | 1.0 | 8.8 |
Tietoevry Transform | 1.0 | 8.9 |
Tietoevry Connect | 1.0 | 8.7 |
ACCOUNTING POLICIES | |||
Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. | |||
Land is not depreciated. Property, plant and equipment acquired in business combinations are measured at fair value at the acquisition date. Depreciation is recognized according to plan based on the estimated economic lives of the individual assets and accounted for in accordance with the straight-line method. The assets' residual useful lives are reviewed, and adjusted if appropriate, at each reporting date. | |||
Assets that are subject to depreciation are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss equal to the difference is recognized in profit or loss.\u00a0 | |||
The group applies the following useful lives: |
Years | |
Buildings and structures | 25\u201340 |
Data processing equipment1) | 1\u20135 |
Other machinery and equipment | 5 |
Other tangible assets | 5 |
EUR million | Land | Buildings and structures | Machinery and equipment | Other tangible assets | Advance payments and work in progress | Total |
Acquisition cost 1\u00a0Jan\u00a02022 | 1.2 | 3.8 | 408.3 | 61.5 | 12.7 | 487.5 |
Additions | \u2014 | \u2014 | 29.4 | 4.5 | 16.2 | 50.0 |
Disposals | \u2014 | \u2014 | -50.3 | -1.5 | -1.1 | -52.9 |
Reclassifications | \u2014 | \u2014 | 10.6 | 1.9 | -8.3 | 4.1 |
Translation differences | \u2014 | \u2014 | -12.3 | -1.7 | -0.3 | -14.3 |
Acquisition cost 31\u00a0Dec 2022 | 1.2 | 3.8 | 385.6 | 64.7 | 19.1 | 474.4 |
Accumulated depreciation and impairments 1\u00a0Jan\u00a02022 | \u2014 | -2.0 | -356.9 | -40.3 | -0.9 | -400.1 |
Disposals | \u2014 | \u2014 | 49.1 | 1.5 | 0.9 | 51.6 |
Depreciation | \u2014 | -0.1 | -29.9 | -7.4 | \u2014 | -37.4 |
Impairments | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Reclassifications | \u2014 | \u2014 | -3.5 | -0.1 | 0.0 | -3.6 |
Translation differences | \u2014 | \u2014 | 10.9 | 1.4 | \u2014 | 12.3 |
Accumulated depreciation and impairments 31\u00a0Dec 2022 | \u2014 | -2.1 | -330.3 | -44.9 | 0.0 | -377.2 |
Carrying value 1\u00a0Jan\u00a02022 | 1.2 | 1.8 | 51.4 | 21.2 | 11.8 | 87.4 |
Carrying value 31\u00a0Dec 2022 | 1.2 | 1.7 | 55.4 | 19.8 | 19.1 | 97.2 |
EUR million | Land | Buildings and structures | Machinery and equipment | Other tangible assets | Advance payments and work in progress | Total |
Acquisition cost 1\u00a0Jan\u00a02021 | 1.2 | 3.8 | 398.8 | 72.5 | 8.0 | 484.3 |
Additions | \u2014 | \u2014 | 19.1 | 0.7 | 10.4 | 30.2 |
Disposals | \u2014 | \u2014 | -30.0 | -1.4 | -0.1 | -31.5 |
Reclassifications | \u2014 | \u2014 | 17.2 | -10.7 | -5.7 | 0.8 |
Translation differences | \u2014 | \u2014 | 3.3 | 0.4 | 0.0 | 3.6 |
Acquisition cost 31\u00a0Dec\u00a02021 | 1.2 | 3.8 | 408.3 | 61.5 | 12.7 | 487.5 |
Accumulated depreciation and impairments 1\u00a0Jan\u00a02021 | \u2014 | -1.9 | -340.3 | -44.3 | -0.9 | -387.4 |
Disposals | \u2014 | \u2014 | 29.6 | 1.4 | \u2014 | 31.0 |
Depreciation | \u2014 | -0.1 | -33.3 | -6.7 | \u2014 | -40.0 |
Impairments | \u2014 | \u2014 | 0.0 | \u2014 | \u2014 | 0.0 |
Reclassifications | \u2014 | \u2014 | -10.3 | 9.5 | 0.0 | -0.8 |
Translation differences | \u2014 | \u2014 | -2.6 | -0.3 | \u2014 | -2.8 |
Accumulated depreciation and impairments 31\u00a0Dec\u00a02021 | \u2014 | -2.0 | -356.9 | -40.3 | -0.9 | -400.1 |
Carrying value 1\u00a0Jan\u00a02021 | 1.2 | 1.9 | 58.4 | 28.2 | 7.1 | 96.9 |
Carrying value 31\u00a0Dec\u00a02021 | 1.2 | 1.8 | 51.4 | 21.2 | 11.8 | 87.4 |
ACCOUNTING POLICIES | |||
Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. | |||
Land is not depreciated. Property, plant and equipment acquired in business combinations are measured at fair value at the acquisition date. Depreciation is recognized according to plan based on the estimated economic lives of the individual assets and accounted for in accordance with the straight-line method. The assets' residual useful lives are reviewed, and adjusted if appropriate, at each reporting date. | |||
Assets that are subject to depreciation are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss equal to the difference is recognized in profit or loss.\u00a0 | |||
The group applies the following useful lives: |
Years | |
Buildings and structures | 25\u201340 |
Data processing equipment1) | 1\u20135 |
Other machinery and equipment | 5 |
Other tangible assets | 5 |
ACCOUNTING POLICIES | |||
Inventories are measured at the lower of cost and net realisable value. Cost is determined based on average cost and net realisable value represents the estimated selling price under normal commercial conditions less estimated costs of sale. |
No ECL is calculated for the portion of trade receivables, where the credit risk is covered by collateral, such as credit insurance. When calculating ECL for contract assets, Tietoevry uses the ECL rate set for \u201cnot yet due\u201d invoices in the allowance matrix. Trade receivables under business model sell are accounted at fair value through profit or loss (FVTPL) and, therefore, those are not subject to ECL provisions. | |||
Trade receivables are permanently written off when there is no reasonable expectation to recovery. Subsequent recoveries of amounts previously written off are credited to income statement. Other interest-bearing receivables are initially recognized at fair value and subsequently at amortized cost during the contract period. The carrying amount of the trade and other receivables approximate to their fair values due to their short-term nature. |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Non-current | ||
Prepaid expenses and accrued income | 9.0 | 12.7 |
Other | 11.4 | 22.6 |
Total | 20.4 | 35.4 |
Current | ||
Trade receivables at amortized cost | 408.9 | 372.8 |
Prepaid expenses and accrued income | ||
Contract assets | 52.0 | 52.5 |
Licence fees | 30.6 | 30.6 |
Other prepaid expenses | 28.2 | 34.2 |
Other interest-bearing receivables | 13.6 | 13.8 |
Other | 14.4 | 13.0 |
Total | 547.8 | 517.0 |
31\u00a0Dec\u00a02021 | Not yet due | Overdue 1\u20137 days | Overdue 8\u201330 days | Overdue 31\u201360 days | Overdue 61\u201390 days | Overdue over 90 days | Grand Total |
EUR million | |||||||
Gross trade receivables subject to impairment | 195.8 | 12.8 | 3.8 | 3.4 | 1.4 | 3.7 | 220.9 |
Average expected credit loss rate applied | -0.18% | -0.27% | -1.40% | -6.11% | -7.64% | -63.29% | -1.40% |
Collective loss allowance | -0.3 | \u2014 | -0.1 | -0.2 | -0.1 | -2.3 | -3.1 |
Individual loss allowance | \u2014 | \u2014 | 0.0 | 0.0 | 0.0 | 0.3 | 0.2 |
Total loss allowance | -0.4 | -0.1 | -0.1 | -0.2 | -0.1 | -2.1 | -2.9 |
Trade receivables net of ECL | 195.4 | 12.7 | 3.8 | 3.2 | 1.3 | 1.6 | 218.0 |
Trade receivables covered by collateral | 131.8 | 17.0 | 0.2 | 0.8 | 0.6 | 4.3 | 154.7 |
Total trade receivables at amortized cost | 327.3 | 29.8 | 4.0 | 4.0 | 1.8 | 5.9 | 372.8 |
Not yet due | Not yet due | |
EUR million | 2022 | 2021 |
Contract assets | 52.1 | 52.6 |
Average ECL applied | -0.25% | -0.06% |
Collective loss allowance | -0.1 | \u2014 |
Net contract assets | 52.0 | 52.5 |
Trade receivables | Contract assets | |||
EUR million | 2022 | 2021 | 2022 | 2021 |
1 Jan | 2.9 | 4.2 | 0.0 | 0.0 |
Translation differences | -0.1 | 0.1 | \u2014 | \u2014 |
Impairment losses recognized | 3.7 | 3.2 | 0.1 | \u2014 |
Amounts written off this year as uncollectible | \u2014 | -0.2 | \u2014 | \u2014 |
Impairment losses reversed | -3.7 | -4.3 | \u2014 | \u2014 |
Disposed companies | -0.1 | -0.1 | \u2014 | \u2014 |
31 Dec | 2.7 | 2.9 | 0.1 | 0.0 |
No ECL is calculated for the portion of trade receivables, where the credit risk is covered by collateral, such as credit insurance. When calculating ECL for contract assets, Tietoevry uses the ECL rate set for \u201cnot yet due\u201d invoices in the allowance matrix. Trade receivables under business model sell are accounted at fair value through profit or loss (FVTPL) and, therefore, those are not subject to ECL provisions. | |||
Trade receivables are permanently written off when there is no reasonable expectation to recovery. Subsequent recoveries of amounts previously written off are credited to income statement. Other interest-bearing receivables are initially recognized at fair value and subsequently at amortized cost during the contract period. The carrying amount of the trade and other receivables approximate to their fair values due to their short-term nature. |
31\u00a0Dec 2022 | Not yet due | Overdue 1\u20137 days | Overdue 8\u201330 days | Overdue 31\u201360 days | Overdue 61\u201390 days | Overdue over 90 days | Grand Total |
EUR million | |||||||
Gross trade receivables subject to impairment | 227.9 | 16.4 | 1.4 | 3.2 | 0.5 | 2.3 | 251.7 |
Average expected credit loss rate applied | -0.12 % | -0.62 % | -1.49 % | -1.82 % | -3.71 % | -51.61 % | -0.66 % |
Collective loss allowance | -0.3 | -0.1 | -0.0 | -0.1 | -0.0 | -1.2 | -1.7 |
Individual loss allowance | -0.4 | -0.0 | \u2014 | -0.4 | -0.1 | -0.2 | -1.1 |
Total loss allowance | -0.6 | -0.1 | -0.0 | -0.4 | -0.1 | -1.4 | -2.7 |
Trade receivables net of ECL | 227.3 | 16.2 | 1.4 | 2.7 | 0.4 | 1.0 | 248.9 |
Trade receivables covered by collateral | 142.2 | 15.0 | 0.6 | 1.3 | 0.5 | 0.4 | 160.0 |
Total trade receivables at amortized cost | 369.5 | 31.2 | 2.0 | 4.0 | 0.9 | 1.4 | 408.9 |
31\u00a0Dec\u00a02021 | Not yet due | Overdue 1\u20137 days | Overdue 8\u201330 days | Overdue 31\u201360 days | Overdue 61\u201390 days | Overdue over 90 days | Grand Total |
EUR million | |||||||
Gross trade receivables subject to impairment | 195.8 | 12.8 | 3.8 | 3.4 | 1.4 | 3.7 | 220.9 |
Average expected credit loss rate applied | -0.18% | -0.27% | -1.40% | -6.11% | -7.64% | -63.29% | -1.40% |
Collective loss allowance | -0.3 | \u2014 | -0.1 | -0.2 | -0.1 | -2.3 | -3.1 |
Individual loss allowance | \u2014 | \u2014 | 0.0 | 0.0 | 0.0 | 0.3 | 0.2 |
Total loss allowance | -0.4 | -0.1 | -0.1 | -0.2 | -0.1 | -2.1 | -2.9 |
Trade receivables net of ECL | 195.4 | 12.7 | 3.8 | 3.2 | 1.3 | 1.6 | 218.0 |
Trade receivables covered by collateral | 131.8 | 17.0 | 0.2 | 0.8 | 0.6 | 4.3 | 154.7 |
Total trade receivables at amortized cost | 327.3 | 29.8 | 4.0 | 4.0 | 1.8 | 5.9 | 372.8 |
ACCOUNTING POLICIES | |||
A provision is a liability of uncertain timing or amount which is recognized when the entity has a present legal or constructive obligation as a result of a past event and it is more likely than not that an outflow of economic benefits will be required to settle the obligation and the amount of the obligation can be measured reliably. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation and are split between amounts expected to be settled within 12 months at the end of the reporting period and amounts expected to be settled later (non-current). | |||
Provisions for restructuring | |||
Restructuring provision is only recognized when a formal plan has been approved and the implementation of it has either commenced or the plan has been announced. | |||
Provisions for loss-making contracts | |||
Provision is recognised for any unavoidable net loss arising from the contract. | |||
Other provisions | |||
Other provisions include employee related provisions other than restructuring as well as warranty provisions. |
ACCOUNTING ESTIMATES AND JUDGEMENTS | |||
Provisions require management to assess the best estimate of the future costs needed to settle the present obligation at the reporting date. The actual costs may differ from the estimated costs. |
EUR million | Provisions for restructuring | Provisions for loss-making contracts | Other provisions | Total |
1\u00a0Jan\u00a02022 | 11.3 | 3.4 | 7.7 | 22.4 |
Translation differences | -0.7 | -0.2 | -0.2 | -1.0 |
Increases in provisions | 33.4 | 0.6 | 3.5 | 37.6 |
Use of provisions | -21.7 | -3.0 | -1.7 | -26.4 |
Reversal of provisions | -8.5 | -0.2 | -2.1 | -10.8 |
31\u00a0Dec 2022 | 13.9 | 0.6 | 7.2 | 21.7 |
of which | ||||
Non-current | 0.6 | \u2014 | 2.0 | 2.6 |
Current | 13.3 | 0.6 | 5.2 | 19.1 |
Total | 13.9 | 0.6 | 7.2 | 21.7 |
EUR million | Provisions for restructuring | Provisions for loss-making contracts | Other provisions | Total |
1\u00a0Jan\u00a02021 | 24.4 | 12.9 | 11.5 | 48.8 |
Translation differences | 0.0 | -0.2 | 0.1 | -0.1 |
Increases in provisions | 10.1 | 0.7 | 2.1 | 13.0 |
Use of provisions | -21.1 | -9.3 | -3.9 | -34.2 |
Reversal of provisions | -2.2 | -0.7 | -2.1 | -5.0 |
31\u00a0Dec\u00a02021 | 11.3 | 3.4 | 7.7 | 22.4 |
of which | ||||
Non-current | 0.8 | 0.0 | 2.0 | 2.8 |
Current | 10.6 | 3.4 | 5.7 | 19.6 |
Total | 11.3 | 3.4 | 7.7 | 22.4 |
ACCOUNTING POLICIES | |||
A provision is a liability of uncertain timing or amount which is recognized when the entity has a present legal or constructive obligation as a result of a past event and it is more likely than not that an outflow of economic benefits will be required to settle the obligation and the amount of the obligation can be measured reliably. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation and are split between amounts expected to be settled within 12 months at the end of the reporting period and amounts expected to be settled later (non-current). | |||
Provisions for restructuring | |||
Restructuring provision is only recognized when a formal plan has been approved and the implementation of it has either commenced or the plan has been announced. | |||
Provisions for loss-making contracts | |||
Provision is recognised for any unavoidable net loss arising from the contract. | |||
Other provisions | |||
Other provisions include employee related provisions other than restructuring as well as warranty provisions. |
ACCOUNTING POLICIES | |||
Trade and other payables are presented as current liabilities if they are due to be settled within 12 months from the end of the reporting period. They are recognized at their fair value and subsequently measured at amortized cost using the effective interest method. | |||
The carrying amount of the trade and other payables approximate their fair values due to their short- term nature. |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Non-current | ||
Contract liabilities1) | 16.9 | 29.2 |
Accruals | 4.2 | 5.5 |
Total | 21.0 | 34.7 |
Current | ||
Trade payables | 233.9 | 260.8 |
Contract liabilities1) | 67.2 | 73.5 |
Accrued liabilities | ||
Employee-related accruals | 193.2 | 210.5 |
Interest | 4.3 | 3.8 |
Other accrued expenses1) | 32.7 | 40.6 |
Value added tax liabilities | 54.5 | 51.0 |
Payroll tax liabilities | 30.9 | 32.1 |
Total | 616.7 | 672.3 |
ACCOUNTING POLICIES | |||
Trade and other payables are presented as current liabilities if they are due to be settled within 12 months from the end of the reporting period. They are recognized at their fair value and subsequently measured at amortized cost using the effective interest method. | |||
The carrying amount of the trade and other payables approximate their fair values due to their short- term nature. |
EUR million | Loans and Cash | Estimated cash flows | Leases | Total foreign exchange exposure | External foreign exchange hedges | Transaction exposure sensitivity1) | Foreign exchange hedge sensitivity1) | Net effect gain/(loss) |
SEK | ||||||||
31\u00a0Dec 2022 | -96.2 | 24.0 | \u2014 | -72.2 | 72.7 | 9.6 | -7.3 | 2.3 |
31\u00a0Dec\u00a02021 | -125.6 | 23.4 | \u2014 | -102.2 | 103.6 | 12.6 | -10.4 | 2.2 |
NOK | ||||||||
31\u00a0Dec 2022 | -25.5 | 16.8 | \u2014 | -8.7 | 5.0 | 2.6 | -0.5 | 2.1 |
31\u00a0Dec\u00a02021 | 17.1 | 10.8 | \u2014 | 27.9 | -31.0 | -1.7 | 3.1 | 1.4 |
PLN | ||||||||
31\u00a0Dec 2022 | -1.1 | -23.6 | 1.4 | -23.3 | 23.5 | \u2014 | -2.4 | -2.4 |
31\u00a0Dec\u00a02021 | -0.7 | -8.8 | 0.7 | -8.8 | 8.9 | \u2014 | -0.9 | -0.9 |
CZK | ||||||||
31\u00a0Dec 2022 | -1.6 | -52.6 | 2.6 | -51.6 | 54.2 | -0.1 | -5.4 | -5.5 |
31\u00a0Dec\u00a02021 | -0.2 | -47.6 | 5.9 | -41.9 | 48.4 | -0.6 | -4.8 | -5.4 |
INR | ||||||||
31\u00a0Dec 2022 | \u2014 | -34.9 | \u2014 | -34.9 | 34.7 | \u2014 | -3.5 | -3.5 |
31\u00a0Dec\u00a02021 | \u2014 | -31.1 | \u2014 | -31.1 | 31.0 | \u2014 | -3.1 | -3.1 |
USD | ||||||||
31\u00a0Dec 2022 | -1.1 | 2.8 | \u2014 | 1.7 | -3.0 | 0.1 | 0.3 | 0.4 |
31\u00a0Dec\u00a02021 | -0.6 | 0.5 | \u2014 | -0.1 | -0.5 | 0.1 | 0.1 | 0.1 |
Other | ||||||||
31\u00a0Dec 2022 | -1.1 | \u2014 | \u2014 | -1.1 | \u2014 | 0.1 | \u2014 | 0.1 |
31\u00a0Dec\u00a02021 | -1.9 | \u2014 | \u2014 | -1.9 | \u2014 | 0.2 | \u2014 | 0.2 |
31\u00a0Dec\u00a02022 EUR million | Amount | Average rate, % | Rate sensitivity1) |
Capital markets2) | -398.4 | 1.8 | \u2014 |
Money markets | 244.6 | 0.4 | 0.1 |
Other loans | -348.0 | 2.9 | -3.2 |
Other receivables | 28.0 | 3.1 | \u2014 |
Leasing | -207.4 | 6.0 | 2.1 |
31\u00a0Dec\u00a02021 EUR million | Amount | Average rate, % | Rate sensitivity1) |
Capital markets2) | -397.8 | 1.8 | \u2014 |
Money markets | 318.7 | 0.2 | 0.1 |
Other loans | -360.2 | 0.9 | -3.3 |
Other receivables | 28.8 | 3.5 | \u2014 |
Leasing | -200.9 | 4.3 | -2.0 |
31\u00a0Dec 2022 | Amount drawn | Amount available | Maturity structure | ||||||
EUR million | 2023 | 2024 | 2025 | 2026 | 2027 | 2028\u2013 | |||
Loans | Bonds | 400.0 | \u2014 | \u2014 | 100.0 | 300.0 | \u2014 | \u2014 | \u2014 |
Commercial paper programme | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |
Revolving credit facility | \u2014 | 250.0 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |
Liabilities towards joint ventures | 3.5 | \u2014 | 3.5 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |
European Investment Bank | 65.4 | \u2014 | 13.1 | 13.1 | 13.1 | 13.1 | 13.1 | \u2014 | |
Syndicated term loan | 254.2 | \u2014 | 80.0 | 174.2 | \u2014 | \u2014 | \u2014 | \u2014 | |
Other loans | 28.7 | \u2014 | 14.1 | 8.6 | 4.7 | 1.2 | 0.1 | \u2014 | |
751.8 | 250.0 | 110.7 | 295.9 | 317.7 | 14.2 | 13.2 | \u2014 | ||
Interest payments | \u2014 | \u2014 | 17.1 | 13.2 | 7.5 | 1.0 | 0.5 | \u2014 | |
Trade payables | Outflow | 233.9 | \u2014 | 233.9 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Other liabilities | Lease liabilities | 241.2 | \u2014 | 61.8 | 47.1 | 32.7 | 23.7 | 19.1 | 56.8 |
Total | 1\u00a0226.9 | 250.0 | 423.4 | 356.2 | 357.9 | 38.9 | 32.8 | 56.8 |
31\u00a0Dec\u00a02021 | Amount drawn | Amount available | Maturity structure | ||||||
EUR million | 2022 | 2023 | 2024 | 2025 | 2026 | 2027\u2013 | |||
Loans | Bond | 400.0 | \u2014 | \u2014 | \u2014 | 100.0 | 300.0 | \u2014 | \u2014 |
Commercial paper programme | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |
Revolving credit facility | \u2014 | 250.0 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |
Liabilities towards joint ventures | 5.1 | \u2014 | 5.1 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |
European Investment Bank | 78.5 | \u2014 | 13.1 | 13.1 | 13.1 | 13.1 | 13.1 | 13.1 | |
Syndicated term loan | 254.2 | \u2014 | \u2014 | 80.0 | 174.2 | \u2014 | \u2014 | \u2014 | |
Other loans | 29.0 | \u2014 | 13.3 | 8.8 | 3.9 | 1.9 | 0.4 | \u2014 | |
766.8 | 250.0 | 31.4 | 101.9 | 291.2 | 315.0 | 13.5 | 13.1 | ||
Interest payments | \u2014 | \u2014 | 10.6 | 9.8 | 8.6 | 6.1 | \u2014 | \u2014 | |
Trade payables | Outflow | 260.8 | \u2014 | 260.8 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Other liabilities | Lease liabilities | 242.3 | \u2014 | 69.2 | 47.2 | 33.2 | 20.4 | 13.2 | 59.0 |
Total | 1\u00a0269.8 | 250.0 | 372.1 | 158.9 | 333.0 | 341.5 | 26.8 | 72.1 |
31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 | |
Net debt | 679.1 | 610.6 |
12 months EBITDA | 449.0 | 557.4 |
Net debt/EBITDA | 1.5 | 1.1 |
EUR million | Loans and Cash | Estimated cash flows | Leases | Total foreign exchange exposure | External foreign exchange hedges | Transaction exposure sensitivity1) | Foreign exchange hedge sensitivity1) | Net effect gain/(loss) |
SEK | ||||||||
31\u00a0Dec 2022 | -96.2 | 24.0 | \u2014 | -72.2 | 72.7 | 9.6 | -7.3 | 2.3 |
31\u00a0Dec\u00a02021 | -125.6 | 23.4 | \u2014 | -102.2 | 103.6 | 12.6 | -10.4 | 2.2 |
NOK | ||||||||
31\u00a0Dec 2022 | -25.5 | 16.8 | \u2014 | -8.7 | 5.0 | 2.6 | -0.5 | 2.1 |
31\u00a0Dec\u00a02021 | 17.1 | 10.8 | \u2014 | 27.9 | -31.0 | -1.7 | 3.1 | 1.4 |
PLN | ||||||||
31\u00a0Dec 2022 | -1.1 | -23.6 | 1.4 | -23.3 | 23.5 | \u2014 | -2.4 | -2.4 |
31\u00a0Dec\u00a02021 | -0.7 | -8.8 | 0.7 | -8.8 | 8.9 | \u2014 | -0.9 | -0.9 |
CZK | ||||||||
31\u00a0Dec 2022 | -1.6 | -52.6 | 2.6 | -51.6 | 54.2 | -0.1 | -5.4 | -5.5 |
31\u00a0Dec\u00a02021 | -0.2 | -47.6 | 5.9 | -41.9 | 48.4 | -0.6 | -4.8 | -5.4 |
INR | ||||||||
31\u00a0Dec 2022 | \u2014 | -34.9 | \u2014 | -34.9 | 34.7 | \u2014 | -3.5 | -3.5 |
31\u00a0Dec\u00a02021 | \u2014 | -31.1 | \u2014 | -31.1 | 31.0 | \u2014 | -3.1 | -3.1 |
USD | ||||||||
31\u00a0Dec 2022 | -1.1 | 2.8 | \u2014 | 1.7 | -3.0 | 0.1 | 0.3 | 0.4 |
31\u00a0Dec\u00a02021 | -0.6 | 0.5 | \u2014 | -0.1 | -0.5 | 0.1 | 0.1 | 0.1 |
Other | ||||||||
31\u00a0Dec 2022 | -1.1 | \u2014 | \u2014 | -1.1 | \u2014 | 0.1 | \u2014 | 0.1 |
31\u00a0Dec\u00a02021 | -1.9 | \u2014 | \u2014 | -1.9 | \u2014 | 0.2 | \u2014 | 0.2 |
31\u00a0Dec\u00a02022 EUR million | Amount | Average rate, % | Rate sensitivity1) |
Capital markets2) | -398.4 | 1.8 | \u2014 |
Money markets | 244.6 | 0.4 | 0.1 |
Other loans | -348.0 | 2.9 | -3.2 |
Other receivables | 28.0 | 3.1 | \u2014 |
Leasing | -207.4 | 6.0 | 2.1 |
31\u00a0Dec\u00a02021 EUR million | Amount | Average rate, % | Rate sensitivity1) |
Capital markets2) | -397.8 | 1.8 | \u2014 |
Money markets | 318.7 | 0.2 | 0.1 |
Other loans | -360.2 | 0.9 | -3.3 |
Other receivables | 28.8 | 3.5 | \u2014 |
Leasing | -200.9 | 4.3 | -2.0 |
EUR million | Loans and Cash | Estimated cash flows | Leases | Total foreign exchange exposure | External foreign exchange hedges | Transaction exposure sensitivity1) | Foreign exchange hedge sensitivity1) | Net effect gain/(loss) |
SEK | ||||||||
31\u00a0Dec 2022 | -96.2 | 24.0 | \u2014 | -72.2 | 72.7 | 9.6 | -7.3 | 2.3 |
31\u00a0Dec\u00a02021 | -125.6 | 23.4 | \u2014 | -102.2 | 103.6 | 12.6 | -10.4 | 2.2 |
NOK | ||||||||
31\u00a0Dec 2022 | -25.5 | 16.8 | \u2014 | -8.7 | 5.0 | 2.6 | -0.5 | 2.1 |
31\u00a0Dec\u00a02021 | 17.1 | 10.8 | \u2014 | 27.9 | -31.0 | -1.7 | 3.1 | 1.4 |
PLN | ||||||||
31\u00a0Dec 2022 | -1.1 | -23.6 | 1.4 | -23.3 | 23.5 | \u2014 | -2.4 | -2.4 |
31\u00a0Dec\u00a02021 | -0.7 | -8.8 | 0.7 | -8.8 | 8.9 | \u2014 | -0.9 | -0.9 |
CZK | ||||||||
31\u00a0Dec 2022 | -1.6 | -52.6 | 2.6 | -51.6 | 54.2 | -0.1 | -5.4 | -5.5 |
31\u00a0Dec\u00a02021 | -0.2 | -47.6 | 5.9 | -41.9 | 48.4 | -0.6 | -4.8 | -5.4 |
INR | ||||||||
31\u00a0Dec 2022 | \u2014 | -34.9 | \u2014 | -34.9 | 34.7 | \u2014 | -3.5 | -3.5 |
31\u00a0Dec\u00a02021 | \u2014 | -31.1 | \u2014 | -31.1 | 31.0 | \u2014 | -3.1 | -3.1 |
USD | ||||||||
31\u00a0Dec 2022 | -1.1 | 2.8 | \u2014 | 1.7 | -3.0 | 0.1 | 0.3 | 0.4 |
31\u00a0Dec\u00a02021 | -0.6 | 0.5 | \u2014 | -0.1 | -0.5 | 0.1 | 0.1 | 0.1 |
Other | ||||||||
31\u00a0Dec 2022 | -1.1 | \u2014 | \u2014 | -1.1 | \u2014 | 0.1 | \u2014 | 0.1 |
31\u00a0Dec\u00a02021 | -1.9 | \u2014 | \u2014 | -1.9 | \u2014 | 0.2 | \u2014 | 0.2 |
31\u00a0Dec 2022 | Amount drawn | Amount available | Maturity structure | ||||||
EUR million | 2023 | 2024 | 2025 | 2026 | 2027 | 2028\u2013 | |||
Loans | Bonds | 400.0 | \u2014 | \u2014 | 100.0 | 300.0 | \u2014 | \u2014 | \u2014 |
Commercial paper programme | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |
Revolving credit facility | \u2014 | 250.0 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |
Liabilities towards joint ventures | 3.5 | \u2014 | 3.5 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |
European Investment Bank | 65.4 | \u2014 | 13.1 | 13.1 | 13.1 | 13.1 | 13.1 | \u2014 | |
Syndicated term loan | 254.2 | \u2014 | 80.0 | 174.2 | \u2014 | \u2014 | \u2014 | \u2014 | |
Other loans | 28.7 | \u2014 | 14.1 | 8.6 | 4.7 | 1.2 | 0.1 | \u2014 | |
751.8 | 250.0 | 110.7 | 295.9 | 317.7 | 14.2 | 13.2 | \u2014 | ||
Interest payments | \u2014 | \u2014 | 17.1 | 13.2 | 7.5 | 1.0 | 0.5 | \u2014 | |
Trade payables | Outflow | 233.9 | \u2014 | 233.9 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Other liabilities | Lease liabilities | 241.2 | \u2014 | 61.8 | 47.1 | 32.7 | 23.7 | 19.1 | 56.8 |
Total | 1\u00a0226.9 | 250.0 | 423.4 | 356.2 | 357.9 | 38.9 | 32.8 | 56.8 |
31\u00a0Dec\u00a02021 | Amount drawn | Amount available | Maturity structure | ||||||
EUR million | 2022 | 2023 | 2024 | 2025 | 2026 | 2027\u2013 | |||
Loans | Bond | 400.0 | \u2014 | \u2014 | \u2014 | 100.0 | 300.0 | \u2014 | \u2014 |
Commercial paper programme | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |
Revolving credit facility | \u2014 | 250.0 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |
Liabilities towards joint ventures | 5.1 | \u2014 | 5.1 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |
European Investment Bank | 78.5 | \u2014 | 13.1 | 13.1 | 13.1 | 13.1 | 13.1 | 13.1 | |
Syndicated term loan | 254.2 | \u2014 | \u2014 | 80.0 | 174.2 | \u2014 | \u2014 | \u2014 | |
Other loans | 29.0 | \u2014 | 13.3 | 8.8 | 3.9 | 1.9 | 0.4 | \u2014 | |
766.8 | 250.0 | 31.4 | 101.9 | 291.2 | 315.0 | 13.5 | 13.1 | ||
Interest payments | \u2014 | \u2014 | 10.6 | 9.8 | 8.6 | 6.1 | \u2014 | \u2014 | |
Trade payables | Outflow | 260.8 | \u2014 | 260.8 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Other liabilities | Lease liabilities | 242.3 | \u2014 | 69.2 | 47.2 | 33.2 | 20.4 | 13.2 | 59.0 |
Total | 1\u00a0269.8 | 250.0 | 372.1 | 158.9 | 333.0 | 341.5 | 26.8 | 72.1 |
31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 | |
Net debt | 679.1 | 610.6 |
12 months EBITDA | 449.0 | 557.4 |
Net debt/EBITDA | 1.5 | 1.1 |
31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 | |
Net debt | 679.1 | 610.6 |
12 months EBITDA | 449.0 | 557.4 |
Net debt/EBITDA | 1.5 | 1.1 |
ACCOUNTING POLICIES | |||
Interest-bearing loans and borrowings are initially recognized at fair value, net of transaction costs which are recognized in the income statement as interest expenses over the loan term. Debt is classified as short term if it is payable within 12 months, otherwise it is classified as non-current. |
Non-cash changes | |||||||||
EUR million | 31\u00a0Dec\u00a02021 | Cash flows | Foreign exchange gains and losses | Reclassification | Acquisitions and disposals | New lease contracts | De-recognized contracts | Other | 31\u00a0Dec 2022 |
Non-current interest-bearing loans | 731.6 | -13.1 | \u2014 | -80.0 | \u2014 | -0.3 | \u2014 | 1.2 | 639.4 |
Current interest-bearing loans | 31.5 | -1.5 | \u2014 | 80.0 | \u2014 | 0.7 | \u2014 | \u2014 | 110.6 |
Lease liabilities | 206.5 | -66.3 | -7.9 | \u2014 | -0.1 | 104.7 | -27.0 | 0.2 | 210.0 |
Total | 969.6 | -81.0 | -7.9 | \u2014 | -0.1 | 105.0 | -27.0 | 1.4 | 960.1 |
Non-cash changes | ||||||||
EUR million | 31\u00a0Dec\u00a02020 | Cash flows | Foreign exchange gains and losses | Reclassification | New lease contracts | De-recognized contracts | Other | 31\u00a0Dec\u00a02021 |
Non-current interest-bearing loans | 885.9 | -145.8 | 0.1 | -13.1 | 3.3 | \u2014 | 1.2 | 731.6 |
Current interest-bearing loans | 39.7 | -19.7 | \u2014 | 13.1 | \u2014 | \u2014 | -1.4 | 31.5 |
Lease liabilities | 243.1 | -73.1 | 4.5 | \u2014 | 46.5 | -14.1 | 0.5 | 206.5 |
Total | 1\u00a0168.7 | -238.6 | 4.6 | \u2014 | 49.8 | -14.1 | 0.3 | 969.6 |
ACCOUNTING POLICIES | |||
The Group as a lessee | |||
Initially, lease liabilities are measured at the commencement date at the present value of the lease payments, discounted using the interest rate implicit in the lease, if it can be readily determined. If the rate cannot be readily determined, such as in real estate leases, the incremental borrowing rate is used. | |||
The incremental borrowing rate is defined for each legal entity, differentiated based on lease contract length and updated on a yearly basis, which impacts the value of right-of-use assets, lease liabilities in the statement of financial position, and split between depreciations and interest expenses. Management judgement has been used in determining the incremental borrowing rate that would reflect the rate of interest that Tietoevry group would pay to borrow over similar term, and with similar security, the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment. The average annual incremental borrowing rate applied to discounting future cash flows for existing lease agreements at year-end is 4.7%. | |||
The lease term includes the non-cancellable period for which the Group has the right to use the underlying asset, together with both enforceable: \u2022Periods covered by an option to extend the lease, if the Group is reasonably certain to exercise that option; and \u2022Periods covered by an option to terminate the lease, if the Group is reasonably certain not to exercise that option. | |||
The decision if extension or termination options of lease contracts would be used, is made by the organisation responsible for the underlying asset management and is in line with overall strategy and business development plans. |
In determining if either lessor or lessee would incur more than insignificant penalties by using or not using either of the options, the Group considers not only penalties directly defined in contracts, but also wider economic costs, such as, reallocation costs or finding new tenants. | |||
Lease payments include fixed payments, in substance fixed payments, lease payments that depend on index or rate and exercise price of purchase option, if it is reasonably certain to be exercised. | |||
Subsequently, lease liabilities are measured at amortized cost, by increasing or reducing the carrying amount to reflect interest on the lease liability and the lease payments made, respectively. Lease liabilities are remeasured for lease reassessments done or modified to reflect revised in-substance fixed lease payments. | |||
Interest expenses are recognized in profit or loss. | |||
Right-of-use assets are initially measured at the amount equal to lease liability: \u2022less payments made at or before commencement date and lease incentives received adding initial direct costs; and \u2022adjusting by estimated dismantling or site restoration costs. | |||
Subsequently, right-of-use assets are measured applying a cost model, where asset cost is reduced by accumulated depreciation and impairment losses and adjusted by remeasurement of a respective lease liability. | |||
Right-of use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. | |||
Tietoevry has applied the recognition exemptions allowed by the standard not to capitalize short- term leases (lease term less than 1 year at commencement, where there is no purchase option) and leases of low value assets. Typically, such assets would include lease of individual IT equipment and office furniture. Payments for such assets are\u00a0 recognized in profit or loss on a straight-line basis during the lease term. | |||
The Group has also elected to separate the service component of a lease for all asset types, except for cars, where only variable lease payments are excluded from the measurement of lease liability. Non-lease components are separated from lease payments on a fair market value basis. If such information is not readily available, management judgement has been applied in estimating the value. |
The Group presents cash payments for the principal portion of lease liabilities as cash flows from financing activities and interest portion within cash flows from operating activities. Short-term lease payments, payments for leases of low-value assets and variable lease payments not included in the measurement of the lease liability are presented as part of operating activities. | |||
The Group as a lessor | |||
If an arrangement conveys a right to use a specific asset to a purchaser, often together with related services, the assets, mainly technical equipment, are classified as embedded finance leases. Further the lease is classified either as Operating lease or Finance lease. As of 31\u00a0December 2022, all such cases have been classified as Finance leases. Sales derived from these embedded finance leases are recognized at the beginning of the agreement period. The annual payments are disclosed as amortization of the finance lease loan receivable and interest income. |
ACCOUNTING ESTIMATES AND JUDGEMENTS | |||
Lease term, use of extension and termination options | |||
Management judgement has been applied in determining the lease term, where there are either extension or termination options included in lease contracts. Lease terms are negotiated on an individual basis and contain a wide range of renewal and termination options. As of 31\u00a0December 2022, weighted average residual lease term for lease contracts is 5.4 years (residual terms vary between 0.1\u201317.3 years). The lease term for premises leases referred to as \"evergreen leases\" or \"rolling\" leases has been determined based on the internally defined site categories. Those take into consideration the number of full time employees and strategic importance of the site, allowing a longer lease term for larger Level 1 sites (5 years and more) and recognizing more flexibility for smallest Level 1 sites (1 year, short-term lease exemption from balance sheet treatment not applied). Total annual leasing expenses (depreciation and interest) for such leases amounted to EUR 7.0 million during year 2022, weighted average remaining lease term being 2.3 years. |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 | |
Tietoevry as a Lessee | Buildings | -54.2 | -57.7 |
Equipment and machinery | -12.3 | -13.5 | |
Depreciation expenses of right-of-use assets | -66.4 | -71.2 | |
Tietoevry as a Lessee | Impairment losses | \u2014 | -5.3 |
Tietoevry as a Lessee | Variable lease payments | -7.9 | -6.6 |
Tietoevry as a Lessee | Short-term leases and low value leases | -5.2 | -4.0 |
Other income and expenses | -13.1 | -10.6 | |
Tietoevry as a Lessor | Revenue | 0.8 | 2.0 |
Tietoevry as a Lessor | Materials and services | -0.7 | -1.8 |
Tietoevry as a Lessor | Finance income on the net investment in lease | 0.1 | 0.1 |
Tietoevry as a Lessee | Interest expense on lease liabilities | -9.7 | -9.5 |
Expenses reported in financial items | -9.6 | -9.4 | |
Total impact on income statement from leasing contracts | -89.0 | -96.2 |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 | |
Tietoevry as a Lessee | Interest paid (cash flow from operating activities) | -9.4 | -9.0 |
Principal paid (cash flow from financing activities) | -66.3 | -73.1 |
EUR million | Buildings | Machinery and Equipment | Total | |
Tietoevry as a Lessee | 31\u00a0Dec\u00a02021 | 171.5 | 21.0 | 192.4 |
Divestment of subsidiary | -0.1 | \u2014 | -0.1 | |
Additions1) | 95.7 | 9.6 | 105.3 | |
Terminations | -19.9 | -1.8 | -21.7 | |
Depreciation | -54.2 | -12.3 | -66.4 | |
Currency translation differences | -7.1 | -0.5 | -7.6 | |
31\u00a0Dec\u00a02022 | 185.9 | 16.0 | 201.9 |
EUR million | Buildings | Machinery and Equipment | Total | |
Tietoevry as a Lessee | 31\u00a0Dec\u00a02020 | 208.6 | 23.1 | 231.7 |
Additions1) | 33.2 | 14.1 | 47.3 | |
Terminations | -11.0 | -2.9 | -13.8 | |
Depreciation | -57.7 | -13.5 | -71.2 | |
Impairment | -5.3 | \u2014 | -5.3 | |
Subleased | 1.4 | -1.2 | 0.2 | |
Currency translation differences | 4.3 | 0.2 | 4.4 | |
31\u00a0Dec\u00a02021 | 171.5 | 21.0 | 192.4 |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Current | 54.1 | 62.5 |
Non-current | 155.9 | 144.0 |
Total | 210.0 | 206.5 |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Current | 2.4 | 2.9 |
Non-current | 0.2 | 2.7 |
Total | 2.6 | 5.6 |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Within one year | 2.4 | 3.0 |
One to two years | 0.2 | 2.2 |
Two to three years | \u2014 | 0.5 |
Three to four years | \u2014 | \u2014 |
Four to five years | \u2014 | \u2014 |
Total undiscounted lease receivable | 2.7 | 5.7 |
Unearned finance income | 0.0 | -0.1 |
Net investment in lease | 2.6 | 5.6 |
In determining if either lessor or lessee would incur more than insignificant penalties by using or not using either of the options, the Group considers not only penalties directly defined in contracts, but also wider economic costs, such as, reallocation costs or finding new tenants. | |||
Lease payments include fixed payments, in substance fixed payments, lease payments that depend on index or rate and exercise price of purchase option, if it is reasonably certain to be exercised. | |||
Subsequently, lease liabilities are measured at amortized cost, by increasing or reducing the carrying amount to reflect interest on the lease liability and the lease payments made, respectively. Lease liabilities are remeasured for lease reassessments done or modified to reflect revised in-substance fixed lease payments. | |||
Interest expenses are recognized in profit or loss. | |||
Right-of-use assets are initially measured at the amount equal to lease liability: \u2022less payments made at or before commencement date and lease incentives received adding initial direct costs; and \u2022adjusting by estimated dismantling or site restoration costs. | |||
Subsequently, right-of-use assets are measured applying a cost model, where asset cost is reduced by accumulated depreciation and impairment losses and adjusted by remeasurement of a respective lease liability. | |||
Right-of use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. | |||
Tietoevry has applied the recognition exemptions allowed by the standard not to capitalize short- term leases (lease term less than 1 year at commencement, where there is no purchase option) and leases of low value assets. Typically, such assets would include lease of individual IT equipment and office furniture. Payments for such assets are\u00a0 recognized in profit or loss on a straight-line basis during the lease term. | |||
The Group has also elected to separate the service component of a lease for all asset types, except for cars, where only variable lease payments are excluded from the measurement of lease liability. Non-lease components are separated from lease payments on a fair market value basis. If such information is not readily available, management judgement has been applied in estimating the value. |
The Group presents cash payments for the principal portion of lease liabilities as cash flows from financing activities and interest portion within cash flows from operating activities. Short-term lease payments, payments for leases of low-value assets and variable lease payments not included in the measurement of the lease liability are presented as part of operating activities. | |||
The Group as a lessor | |||
If an arrangement conveys a right to use a specific asset to a purchaser, often together with related services, the assets, mainly technical equipment, are classified as embedded finance leases. Further the lease is classified either as Operating lease or Finance lease. As of 31\u00a0December 2022, all such cases have been classified as Finance leases. Sales derived from these embedded finance leases are recognized at the beginning of the agreement period. The annual payments are disclosed as amortization of the finance lease loan receivable and interest income. |
2022 | Interest income | Interest expenses | Foreign exchange gains and losses | Other financial income | Other financial expenses | Total |
EUR million | ||||||
Financial assets at fair value through profit or loss | \u2014 | \u2014 | -7.8 | \u2014 | \u2014 | -7.8 |
Financial assets at amortized cost | 3.6 | \u2014 | 6.4 | 0.3 | \u2014 | 10.3 |
Financial liabilities measured at amortized cost | \u2014 | -22.6 | \u2014 | \u2014 | -3.4 | -25.9 |
Net defined benefit obligation | \u2014 | -0.2 | \u2014 | \u2014 | \u2014 | -0.2 |
Total | 3.6 | -22.8 | -1.4 | 0.3 | -3.4 | -23.7 |
2021 | Interest income | Interest expenses | Foreign exchange gains and losses | Other financial income | Other financial expenses | Total |
EUR million | ||||||
Financial assets at fair value through profit or loss | \u2014 | \u2014 | -0.1 | \u2014 | \u2014 | -0.1 |
Financial assets at amortized cost | 1.8 | \u2014 | -4.7 | 0.1 | \u2014 | -2.7 |
Financial liabilities measured at amortized cost | \u2014 | -22.7 | \u2014 | \u2014 | -2.3 | -25.0 |
Net defined benefit obligation | \u2014 | -0.3 | \u2014 | \u2014 | \u2014 | -0.3 |
Total | 1.8 | -23.0 | -4.8 | 0.1 | -2.3 | -28.2 |
2022 | Interest income | Interest expenses | Foreign exchange gains and losses | Other financial income | Other financial expenses | Total |
EUR million | ||||||
Financial assets at fair value through profit or loss | \u2014 | \u2014 | -7.8 | \u2014 | \u2014 | -7.8 |
Financial assets at amortized cost | 3.6 | \u2014 | 6.4 | 0.3 | \u2014 | 10.3 |
Financial liabilities measured at amortized cost | \u2014 | -22.6 | \u2014 | \u2014 | -3.4 | -25.9 |
Net defined benefit obligation | \u2014 | -0.2 | \u2014 | \u2014 | \u2014 | -0.2 |
Total | 3.6 | -22.8 | -1.4 | 0.3 | -3.4 | -23.7 |
2021 | Interest income | Interest expenses | Foreign exchange gains and losses | Other financial income | Other financial expenses | Total |
EUR million | ||||||
Financial assets at fair value through profit or loss | \u2014 | \u2014 | -0.1 | \u2014 | \u2014 | -0.1 |
Financial assets at amortized cost | 1.8 | \u2014 | -4.7 | 0.1 | \u2014 | -2.7 |
Financial liabilities measured at amortized cost | \u2014 | -22.7 | \u2014 | \u2014 | -2.3 | -25.0 |
Net defined benefit obligation | \u2014 | -0.3 | \u2014 | \u2014 | \u2014 | -0.3 |
Total | 1.8 | -23.0 | -4.8 | 0.1 | -2.3 | -28.2 |
2022 | Interest income | Interest expenses | Foreign exchange gains and losses | Other financial income | Other financial expenses | Total |
EUR million | ||||||
Financial assets at fair value through profit or loss | \u2014 | \u2014 | -7.8 | \u2014 | \u2014 | -7.8 |
Financial assets at amortized cost | 3.6 | \u2014 | 6.4 | 0.3 | \u2014 | 10.3 |
Financial liabilities measured at amortized cost | \u2014 | -22.6 | \u2014 | \u2014 | -3.4 | -25.9 |
Net defined benefit obligation | \u2014 | -0.2 | \u2014 | \u2014 | \u2014 | -0.2 |
Total | 3.6 | -22.8 | -1.4 | 0.3 | -3.4 | -23.7 |
2021 | Interest income | Interest expenses | Foreign exchange gains and losses | Other financial income | Other financial expenses | Total |
EUR million | ||||||
Financial assets at fair value through profit or loss | \u2014 | \u2014 | -0.1 | \u2014 | \u2014 | -0.1 |
Financial assets at amortized cost | 1.8 | \u2014 | -4.7 | 0.1 | \u2014 | -2.7 |
Financial liabilities measured at amortized cost | \u2014 | -22.7 | \u2014 | \u2014 | -2.3 | -25.0 |
Net defined benefit obligation | \u2014 | -0.3 | \u2014 | \u2014 | \u2014 | -0.3 |
Total | 1.8 | -23.0 | -4.8 | 0.1 | -2.3 | -28.2 |
ACCOUNTING POLICIES | |||
All financial assets and liabilities are initially recognized at fair value, and subsequently classified either as financial assets at amortized cost or financial assets through profit or loss. | |||
Financial assets at amortized cost | |||
Financial assets are accounted at amortized cost only when the asset is held within a business model with the objective to collect contractual cash flows, which are solely payments of principal and interest. | |||
This category of financial assets includes trade and other receivables, cash and cash equivalents, lease receivables and other interest-bearing receivables. | |||
Financial assets in this category are carried at amortized cost in accordance with the effective interest method with interest income recognized in profit or loss under financial items, see note 21. | |||
Financial liabilities at amortized cost | |||
Financial liabilities under this category are initially recognized at fair value, net of transaction costs directly associated with the borrowing. For interest-bearing liabilities, after initial recognition, liabilities are measured using effective interest rate method, taking into account any issue costs and any discount or premium on settlement. Related interest expenses are recognized in profit or loss | |||
Financial assets and liabilities at fair value through profit or loss | |||
Financial assets and liabilities in this category are recognized on the statement of financial position at their fair value with gains or losses resulting from changes in the fair value, being recognized in income statement. | |||
This category mostly consists of derivatives. Gains or losses from the revaluation of derivative contracts that relate to financial items (loans, cash, leases) are presented as financing costs, see note 21, whereas gains or losses from derivatives, mostly currency forward contracts that relate to operating activities are included in operating profit. |
Fair value measurement is also applicable to trade receivables sold under non-recourse factoring agreements, which have not yet been de-recognized from the statement of financial position as of the reporting date. | |||
Other investments include unlisted shares, where their fair value cannot be measured reliably and, therefore, the cost is considered to be a reasonable approximation of their fair value. | |||
Determination of fair values | |||
The classification of financial assets and liabilities measured at fair value in the statement of financial position, has been done on three hierarchy levels: \u2022Level 1: quoted prices in active markets for given or identical assets or liabilities that the entity can access at the measurement date; \u2022Level 2: inputs that are observable for the asset or liability, either directly or indirectly; \u2022Level 3: unobservable inputs for the asset or liability. | |||
The carrying amount of all financial assets and liabilities, carried at amortized cost is considered to provide a reasonable approximation of their fair value, due to the short maturity and liquid nature of these items, except for bonds which are traded on an active market. | |||
The fair values of derivatives are determined based on prevailing marked quotes at the reporting date. Foreign exchange derivatives' fair values are calculated according to foreign exchange and interest rates on the closing date. |
EUR million | Note | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 | Fair value hierarchy |
Financial assets at fair value through profit or loss | ||||
Non-current | ||||
Other financial assets at fair value through profit or loss | 0.6 | 0.6 | Level 3 | |
Current | ||||
Trade receivables at fair value through profit or loss | 20.2 | 19.1 | Level 2 | |
Current derivative receivables | 23 | 3.4 | 4.2 | Level 2 |
Financial assets at amortized cost | ||||
Non-current | ||||
Other loan receivables, interest- bearing | 15.0 | 15.7 | Level 2 | |
Lease receivables | 20 | 0.2 | 2.7 | Level 2 |
Current | ||||
Other loan receivables, interest- bearing | 14 | 13.6 | 13.8 | Level 2 |
Lease receivables | 20 | 2.4 | 2.9 | Level 2 |
Trade receivables | 14 | 408.9 | 372.8 | Level 2 |
Accrued interest income | 14 | 0.0 | 0.1 | Level 2 |
Cash and cash equivalents | 24 | 249.7 | 323.8 | Level 2 |
Total | 714.1 | 755.5 |
EUR million | Note | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a0 2021 | Fair value hierarchy |
Financial liabilities at fair value through profit or loss | ||||
Current derivative liabilities | 23 | 2.0 | 0.8 | Level 2 |
Financial liabilities measured at amortized cost | ||||
Non-current | ||||
Lease liability | 19, 20 | 155.9 | 144.0 | Level 2 |
Bonds1) | 19 | 398.4 | 397.8 | Level 1 |
Other loans | 19 | 241.0 | 333.8 | Level 2 |
Current | ||||
Trade payables | 17 | 233.9 | 260.8 | Level 2 |
Accrued interest | 17 | 4.3 | 3.8 | Level 2 |
Lease liability | 19, 20 | 54.1 | 62.5 | Level 2 |
Loans | 19 | 110.6 | 31.5 | Level 2 |
Total | 1\u00a0200.3 | 1\u00a0235.0 |
ACCOUNTING POLICIES | |||
All financial assets and liabilities are initially recognized at fair value, and subsequently classified either as financial assets at amortized cost or financial assets through profit or loss. | |||
Financial assets at amortized cost | |||
Financial assets are accounted at amortized cost only when the asset is held within a business model with the objective to collect contractual cash flows, which are solely payments of principal and interest. | |||
This category of financial assets includes trade and other receivables, cash and cash equivalents, lease receivables and other interest-bearing receivables. | |||
Financial assets in this category are carried at amortized cost in accordance with the effective interest method with interest income recognized in profit or loss under financial items, see note 21. | |||
Financial liabilities at amortized cost | |||
Financial liabilities under this category are initially recognized at fair value, net of transaction costs directly associated with the borrowing. For interest-bearing liabilities, after initial recognition, liabilities are measured using effective interest rate method, taking into account any issue costs and any discount or premium on settlement. Related interest expenses are recognized in profit or loss | |||
Financial assets and liabilities at fair value through profit or loss | |||
Financial assets and liabilities in this category are recognized on the statement of financial position at their fair value with gains or losses resulting from changes in the fair value, being recognized in income statement. | |||
This category mostly consists of derivatives. Gains or losses from the revaluation of derivative contracts that relate to financial items (loans, cash, leases) are presented as financing costs, see note 21, whereas gains or losses from derivatives, mostly currency forward contracts that relate to operating activities are included in operating profit. |
Fair value measurement is also applicable to trade receivables sold under non-recourse factoring agreements, which have not yet been de-recognized from the statement of financial position as of the reporting date. | |||
Other investments include unlisted shares, where their fair value cannot be measured reliably and, therefore, the cost is considered to be a reasonable approximation of their fair value. | |||
Determination of fair values | |||
The classification of financial assets and liabilities measured at fair value in the statement of financial position, has been done on three hierarchy levels: \u2022Level 1: quoted prices in active markets for given or identical assets or liabilities that the entity can access at the measurement date; \u2022Level 2: inputs that are observable for the asset or liability, either directly or indirectly; \u2022Level 3: unobservable inputs for the asset or liability. | |||
The carrying amount of all financial assets and liabilities, carried at amortized cost is considered to provide a reasonable approximation of their fair value, due to the short maturity and liquid nature of these items, except for bonds which are traded on an active market. | |||
The fair values of derivatives are determined based on prevailing marked quotes at the reporting date. Foreign exchange derivatives' fair values are calculated according to foreign exchange and interest rates on the closing date. |
EUR million | Note | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 | Fair value hierarchy |
Financial assets at fair value through profit or loss | ||||
Non-current | ||||
Other financial assets at fair value through profit or loss | 0.6 | 0.6 | Level 3 | |
Current | ||||
Trade receivables at fair value through profit or loss | 20.2 | 19.1 | Level 2 | |
Current derivative receivables | 23 | 3.4 | 4.2 | Level 2 |
Financial assets at amortized cost | ||||
Non-current | ||||
Other loan receivables, interest- bearing | 15.0 | 15.7 | Level 2 | |
Lease receivables | 20 | 0.2 | 2.7 | Level 2 |
Current | ||||
Other loan receivables, interest- bearing | 14 | 13.6 | 13.8 | Level 2 |
Lease receivables | 20 | 2.4 | 2.9 | Level 2 |
Trade receivables | 14 | 408.9 | 372.8 | Level 2 |
Accrued interest income | 14 | 0.0 | 0.1 | Level 2 |
Cash and cash equivalents | 24 | 249.7 | 323.8 | Level 2 |
Total | 714.1 | 755.5 |
EUR million | Note | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a0 2021 | Fair value hierarchy |
Financial liabilities at fair value through profit or loss | ||||
Current derivative liabilities | 23 | 2.0 | 0.8 | Level 2 |
Financial liabilities measured at amortized cost | ||||
Non-current | ||||
Lease liability | 19, 20 | 155.9 | 144.0 | Level 2 |
Bonds1) | 19 | 398.4 | 397.8 | Level 1 |
Other loans | 19 | 241.0 | 333.8 | Level 2 |
Current | ||||
Trade payables | 17 | 233.9 | 260.8 | Level 2 |
Accrued interest | 17 | 4.3 | 3.8 | Level 2 |
Lease liability | 19, 20 | 54.1 | 62.5 | Level 2 |
Loans | 19 | 110.6 | 31.5 | Level 2 |
Total | 1\u00a0200.3 | 1\u00a0235.0 |
EUR million | Note | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 | Fair value hierarchy |
Financial assets at fair value through profit or loss | ||||
Non-current | ||||
Other financial assets at fair value through profit or loss | 0.6 | 0.6 | Level 3 | |
Current | ||||
Trade receivables at fair value through profit or loss | 20.2 | 19.1 | Level 2 | |
Current derivative receivables | 23 | 3.4 | 4.2 | Level 2 |
Financial assets at amortized cost | ||||
Non-current | ||||
Other loan receivables, interest- bearing | 15.0 | 15.7 | Level 2 | |
Lease receivables | 20 | 0.2 | 2.7 | Level 2 |
Current | ||||
Other loan receivables, interest- bearing | 14 | 13.6 | 13.8 | Level 2 |
Lease receivables | 20 | 2.4 | 2.9 | Level 2 |
Trade receivables | 14 | 408.9 | 372.8 | Level 2 |
Accrued interest income | 14 | 0.0 | 0.1 | Level 2 |
Cash and cash equivalents | 24 | 249.7 | 323.8 | Level 2 |
Total | 714.1 | 755.5 |
EUR million | Note | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a0 2021 | Fair value hierarchy |
Financial liabilities at fair value through profit or loss | ||||
Current derivative liabilities | 23 | 2.0 | 0.8 | Level 2 |
Financial liabilities measured at amortized cost | ||||
Non-current | ||||
Lease liability | 19, 20 | 155.9 | 144.0 | Level 2 |
Bonds1) | 19 | 398.4 | 397.8 | Level 1 |
Other loans | 19 | 241.0 | 333.8 | Level 2 |
Current | ||||
Trade payables | 17 | 233.9 | 260.8 | Level 2 |
Accrued interest | 17 | 4.3 | 3.8 | Level 2 |
Lease liability | 19, 20 | 54.1 | 62.5 | Level 2 |
Loans | 19 | 110.6 | 31.5 | Level 2 |
Total | 1\u00a0200.3 | 1\u00a0235.0 |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Foreign exchange forward contracts | 406.5 | 479.7 |
Interest rate swaps | 40.0 | \u2014 |
Gross amounts of recognized financial instruments in the statement of financial position1) | Related amounts not set off in the statement of financial position | |||
31\u00a0Dec 2022 | Financial Instruments | Cash collateral received | Net amount | |
EUR million | ||||
Derivative financial assets | ||||
\u00a0 Foreign exchange forward contracts | 3.4 | -1.6 | \u2014 | 1.7 |
\u00a0 Interest rate swaps | 2.9 | -2.9 | \u2014 | \u2014 |
Derivative financial liabilities | ||||
\u00a0 Foreign exchange forward contracts | -2.0 | 1.6 | \u2014 | -0.4 |
\u00a0 Interest rate swaps | -2.9 | 2.9 | \u2014 | \u2014 |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
Cash in hand and at bank | 233.4 | 309.1 |
Short-term deposits | 16.3 | 14.6 |
Total | 249.7 | 323.8 |
ACCOUNTING POLICIES | |||
Dividends proposed by the Board of Directors are not deducted from distributable equity until approved by the Annual General Meeting of Shareholders. | |||
When the company's own shares are repurchased, the amount of the consideration paid, including directly attributable costs, is recognized as a deduction in equity. |
EUR million | Number of shares | Share capital | Share issue premiums and other reserves | Invested unrestricted equity reserve | Total |
1\u00a0Jan\u00a02021 | 118\u00a0414\u00a0793 | 76.6 | 42.1 | 1\u00a0203.5 | 1\u00a0322.2 |
Purchase of own shares | -140\u00a0000 | \u2014 | \u2014 | \u2014 | \u2014 |
Shares delivered from the share-based incentive plans1) | 143\u00a0391 | \u2014 | \u2014 | \u2014 | \u2014 |
Translation difference | \u2014 | \u2014 | -0.6 | \u2014 | -0.6 |
31\u00a0Dec\u00a02021 | 118\u00a0418\u00a0184 | 76.6 | 41.5 | 1\u00a0203.5 | 1\u00a0321.6 |
Purchase of own shares | -145\u00a0000 | \u2014 | \u2014 | \u2014 | \u2014 |
Shares delivered from the share-based incentive plans1) | 140\u00a0119 | \u2014 | \u2014 | \u2014 | \u2014 |
Translation difference | \u2014 | \u2014 | -2.2 | \u2014 | -2.2 |
31\u00a0Dec 2022 | 118\u00a0413\u00a0303 | 76.6 | 39.3 | 1\u00a0203.5 | 1\u00a0319.4 |
Own shares2) | 12\u00a0468 | ||||
Total number of shares on 31\u00a0Dec 2022\u00b2\u207e | 118\u00a0425\u00a0771 |
Company name | Domicile | Parent company's holding % | 31\u00a0Dec 2022 Book value in the Parent company EUR million |
EVRY Card Issuing AS | Norway | 100.0 | 77.4 |
EVRY Card Payments AS | Norway | 100.0 | 0.7 |
EVRY Card Services AS | Norway | 100.0 | 84.0 |
Fellesdata AS | Norway | 100.0 | \u2014 |
Infopulse Brasil Servicos Technologicos Ltda. | Brazil | 1.0 | 0.0 |
Tieto Austria GmbH | Austria | 100.0 | 0.8 |
Tieto (Beijing) Technology Co., Ltd. | China | 100.0 | 0.8 |
Tieto China Co., Ltd. | China | 100.0 | 4.3 |
Tieto Germany GmbH | Germany | 100.0 | 0.5 |
Tieto Global Oy | Finland | 100.0 | 1.1 |
Tieto Great Britain Ltd. | Great Britain | 100.0 | 0.5 |
Tieto Latvia SIA | Latvia | 100.0 | 15.2 |
Tieto Lietuva UAB | Lithuania | 100.0 | 2.6 |
Tieto Netherlands Holding B.V. | Netherlands | 100.0 | 24.5 |
Tieto Poland Sp. z o.o | Poland | 100.0 | 3.3 |
Tieto Support Services Sp. z o.o. | Poland | 100.0 | 0.4 |
Tieto Sweden AB | Sweden | 100.0 | 919.3 |
TietoEnator Inc. | The United States | 100.0 | 8.0 |
TietoEVRY Accounting AS | Norway | 100.0 | 16.7 |
Tietoevry Banking Finland Oy | Finland | 100.0 | 1.3 |
Tietoevry Connect Czechia s.r.o. | Czech Republic | 100.0 | 7.5 |
Tietoevry Connect Finland Oy | Finland | 100.0 | 48.9 |
Tietoevry Connect Slovakia s.r.o. | Slovakia | 15.0 | 0.0 |
Tietoevry Czechia s.r.o. | Czech Republic | 100.0 | 0.5 |
Tietoevry Czechia Support Services s.r.o. | Czech Republic | 100.0 | \u2014 |
Tietoevry Denmark A/S | Denmark | 100.0 | 6.5 |
Tietoevry DK A/S | Denmark | 100.0 | 1.6 |
Tietoevry Estonia AS | Estonia | 100.0 | 0.3 |
Tietoevry Finland Oy | Finland | 100.0 | 87.1 |
Tietoevry Finland Support Services Oy | Finland | 100.0 | 1.2 |
TietoEVRY Norway AS | Norway | 100.0 | 1\u00a0007.9 |
Tietoevry Slovakia s.r.o. | Slovakia | 100.0 | 0.0 |
TietoIlmarinen Oy | Finland | 100.0 | 0.2 |
Dormant subsidiaries (3 in total) | 0.0 | ||
Total | 2\u00a0322.8 |
Company name | Domicile | Group holding % | 31\u00a0Dec 2022 Book value in the Parent company EUR million |
Avega Affero AB | Sweden | 100.0 | 0.0 |
Avega Aqilo AB | Sweden | 100.0 | 0.0 |
Avega Catalyst AB | Sweden | 100.0 | 0.4 |
Avega Clarity AB | Sweden | 100.0 | 0.8 |
Avega Complius AB | Sweden | 100.0 | 0.0 |
Avega Dinamiko AB | Sweden | 100.0 | 0.1 |
Avega Edge AB | Sweden | 100.0 | 0.0 |
Avega Effectus AB | Sweden | 100.0 | 0.8 |
Avega Group AB | Sweden | 100.0 | 42.3 |
Avega Kipeo AB | Sweden | 100.0 | 1.5 |
Avega Kite AB | Sweden | 100.0 | 0.0 |
Avega Miundo AB | Sweden | 100.0 | 0.0 |
Avega Mtoni AB | Sweden | 100.0 | 0.1 |
Avega Nuvem AB | Sweden | 100.0 | 0.0 |
Avega Primero AB | Sweden | 100.0 | 0.0 |
Avega Qurio AB | Sweden | 100.0 | 2.6 |
Avega Scire AB | Sweden | 100.0 | 0.1 |
Avega Sempai AB | Sweden | 100.0 | 0.5 |
Avega Senso AB | Sweden | 100.0 | 0.0 |
Bekk Consulting AS | Norway | 100.0 | 44.3 |
Emric d.o.o. Beograd | Serbia | 100.0 | 0.0 |
EVRY Card Services AB | Sweden | 100.0 | 24.1 |
EVRY Card Services Oy | Finland | 100.0 | 6.1 |
EVRY Financial Service UK Ltd. | Great Britain | 100.0 | 0.1 |
EVRY India Pvt. Ltd. | India | 100.0 | 13.6 |
EVRY Sweden AB | Sweden | 100.0 | 160.1 |
EVRY USA Corporation Inc. | The United States | 100.0 | 0.4 |
Eye-share AS | Norway | 100.0 | 2.3 |
Eye-share Singapore Pte. Ltd. | Singapore | 100.0 | \u2014 |
Gjeldsregisteret AS | Norway | 100.0 | 0.0 |
Infopulse Brasil Servicos Technologicos Ltda. | Brazil | 99.0 | 0.1 |
Infopulse Bulgaria Ltd. | Bulgaria | 100.0 | 0.1 |
Infopulse Europe GmbH | Germany | 100.0 | 0.0 |
Infopulse Poland Sp. z o.o. | Poland | 100.0 | 0.0 |
Infopulse Ukraine LLC | Ukraine | 100.0 | 0.0 |
NUK Holding AB | Sweden | 100.0 | 16.8 |
Tieto India Pvt. Ltd. | India | 100.0 | 45.4 |
Tieto Ukraine Support Services LLC | Ukraine | 100.0 | 0.8 |
Tieto U.S. Inc. | The United States | 100.0 | 1.1 |
Tietoevry Connect Slovakia s.r.o. | Slovakia | 85.0 | 0.0 |
Tietoevry Financing AB | Sweden | 100.0 | 0.0 |
Tietoevry Financing AS | Norway | 100.0 | 2.0 |
Tietoevry Sweden Support Services AB | Sweden | 100.0 | 0.0 |
Dormant subsidiaries (5 in total) | 0.0 | ||
Total | 366.9 |
ACCOUNTING POLICIES | |||
Companies, where Tietoevry has assumed management responsibility, has contractually based joint control with a third party and has right to the net assets of the company based on the contractual arrangement are included in the consolidated financial statements as joint ventures. Joint ventures are accounted by using the equity method under which the investments in joint ventures are initially recognized at cost and adjusted thereafter to recognize the Group's share of the post-acquisition profits or losses and movements in other comprehensive income. When the Group's share of joint venture\u2019s losses exceeds the carrying amount of the investment, the investment is recognized at zero value in the statement of financial position and the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the joint venture. | |||
Sales to and purchases from joint ventures are made on normal market terms and conditions and at market prices. The Group\u2019s share of the joint ventures\u2019 result for the period is separately disclosed in the income statement. |
Number of shares | Parent company's share % | Voting right % | Carrying value EUR million | |||||
31 Dec | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
Tieto Esy Oy | 7\u00a0300 | 7\u00a0300 | 80.0 | 80.0 | 34.0 | 34.0 | 5.1 | 5.1 |
TietoIlmarinen Oy | \u2014 | 3\u00a0570 | \u2014 | 70.0 | \u2014 | 30.0 | \u2014 | 2.2 |
BuyPass AS | 21\u00a0100 | 21\u00a0100 | 50.0 | 50.0 | 50.0 | 50.0 | 9.2 | 9.4 |
14.2 | 16.7 |
EUR million | 2022 | 2021 |
Acquisition cost, 1 Jan | 11.6 | 11.2 |
Translation difference | -0.7 | 0.4 |
Acquisition cost, 31 Dec | 10.9 | 11.6 |
Equity adjustments, 1 Jan | 5.1 | 8.5 |
Share of results | 1.0 | 1.5 |
Dividends received | -1.4 | -2.1 |
TietoIlmarinen impairment | -1.4 | \u2014 |
Tietokarhu liquidation | \u2014 | -2.8 |
Equity adjustments, 31 Dec | 3.3 | 5.1 |
Carrying value, 31 Dec | 14.2 | 16.7 |
31\u00a0Dec 2022 | Tieto Esy Oy | TietoIlmarinen\u00a0Oy | BuyPass AS |
EUR million | |||
Non-current assets | 0.0 | \u2014 | 5.2 |
Current assets | 4.0 | \u2014 | 45.5 |
Total | 4.0 | \u2014 | 50.7 |
Non-current liabilities | 0.0 | \u2014 | \u2014 |
Current liabilities | 0.7 | \u2014 | 32.5 |
Total | 0.7 | \u2014 | 32.5 |
Net sales | 3.9 | 1.6 | 30.7 |
Expenses | -3.2 | -2.4 | -27.9 |
Result before taxes | 0.7 | -0.8 | 2.8 |
Income taxes | -0.2 | 0.0 | -0.7 |
Net result for the financial year | 0.6 | -0.8 | 2.1 |
Dividends paid to Tietoevry | 0.5 | \u2014 | 0.9 |
Average full-time personnel during the financial year | 27 | 13 | 25 |
TietoEVRY Norway AS | Norway | 100.0 | 1\u00a0007.9 |
Tietoevry Slovakia s.r.o. | Slovakia | 100.0 | 0.0 |
TietoIlmarinen Oy | Finland | 100.0 | 0.2 |
Dormant subsidiaries (3 in total) | 0.0 | ||
Total | 2\u00a0322.8 |
Company name | Domicile | Group holding % | 31\u00a0Dec 2022 Book value in the Parent company EUR million |
Avega Affero AB | Sweden | 100.0 | 0.0 |
Avega Aqilo AB | Sweden | 100.0 | 0.0 |
Avega Catalyst AB | Sweden | 100.0 | 0.4 |
Avega Clarity AB | Sweden | 100.0 | 0.8 |
Avega Complius AB | Sweden | 100.0 | 0.0 |
Avega Dinamiko AB | Sweden | 100.0 | 0.1 |
Avega Edge AB | Sweden | 100.0 | 0.0 |
Avega Effectus AB | Sweden | 100.0 | 0.8 |
Avega Group AB | Sweden | 100.0 | 42.3 |
Avega Kipeo AB | Sweden | 100.0 | 1.5 |
Avega Kite AB | Sweden | 100.0 | 0.0 |
Avega Miundo AB | Sweden | 100.0 | 0.0 |
Avega Mtoni AB | Sweden | 100.0 | 0.1 |
Avega Nuvem AB | Sweden | 100.0 | 0.0 |
Avega Primero AB | Sweden | 100.0 | 0.0 |
Avega Qurio AB | Sweden | 100.0 | 2.6 |
Avega Scire AB | Sweden | 100.0 | 0.1 |
Avega Sempai AB | Sweden | 100.0 | 0.5 |
Avega Senso AB | Sweden | 100.0 | 0.0 |
Bekk Consulting AS | Norway | 100.0 | 44.3 |
Emric d.o.o. Beograd | Serbia | 100.0 | 0.0 |
EVRY Card Services AB | Sweden | 100.0 | 24.1 |
EVRY Card Services Oy | Finland | 100.0 | 6.1 |
EVRY Financial Service UK Ltd. | Great Britain | 100.0 | 0.1 |
EVRY India Pvt. Ltd. | India | 100.0 | 13.6 |
EVRY Sweden AB | Sweden | 100.0 | 160.1 |
EVRY USA Corporation Inc. | The United States | 100.0 | 0.4 |
Eye-share AS | Norway | 100.0 | 2.3 |
Eye-share Singapore Pte. Ltd. | Singapore | 100.0 | \u2014 |
Gjeldsregisteret AS | Norway | 100.0 | 0.0 |
Infopulse Brasil Servicos Technologicos Ltda. | Brazil | 99.0 | 0.1 |
Infopulse Bulgaria Ltd. | Bulgaria | 100.0 | 0.1 |
Infopulse Europe GmbH | Germany | 100.0 | 0.0 |
Infopulse Poland Sp. z o.o. | Poland | 100.0 | 0.0 |
Infopulse Ukraine LLC | Ukraine | 100.0 | 0.0 |
NUK Holding AB | Sweden | 100.0 | 16.8 |
Tieto India Pvt. Ltd. | India | 100.0 | 45.4 |
Tieto Ukraine Support Services LLC | Ukraine | 100.0 | 0.8 |
Tieto U.S. Inc. | The United States | 100.0 | 1.1 |
Tietoevry Connect Slovakia s.r.o. | Slovakia | 85.0 | 0.0 |
Tietoevry Financing AB | Sweden | 100.0 | 0.0 |
Tietoevry Financing AS | Norway | 100.0 | 2.0 |
Tietoevry Sweden Support Services AB | Sweden | 100.0 | 0.0 |
Dormant subsidiaries (5 in total) | 0.0 | ||
Total | 366.9 |
ACCOUNTING POLICIES | |||
Companies, where Tietoevry has assumed management responsibility, has contractually based joint control with a third party and has right to the net assets of the company based on the contractual arrangement are included in the consolidated financial statements as joint ventures. Joint ventures are accounted by using the equity method under which the investments in joint ventures are initially recognized at cost and adjusted thereafter to recognize the Group's share of the post-acquisition profits or losses and movements in other comprehensive income. When the Group's share of joint venture\u2019s losses exceeds the carrying amount of the investment, the investment is recognized at zero value in the statement of financial position and the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the joint venture. | |||
Sales to and purchases from joint ventures are made on normal market terms and conditions and at market prices. The Group\u2019s share of the joint ventures\u2019 result for the period is separately disclosed in the income statement. |
Number of shares | Parent company's share % | Voting right % | Carrying value EUR million | |||||
31 Dec | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
Tieto Esy Oy | 7\u00a0300 | 7\u00a0300 | 80.0 | 80.0 | 34.0 | 34.0 | 5.1 | 5.1 |
TietoIlmarinen Oy | \u2014 | 3\u00a0570 | \u2014 | 70.0 | \u2014 | 30.0 | \u2014 | 2.2 |
BuyPass AS | 21\u00a0100 | 21\u00a0100 | 50.0 | 50.0 | 50.0 | 50.0 | 9.2 | 9.4 |
14.2 | 16.7 |
EUR million | 2022 | 2021 |
Acquisition cost, 1 Jan | 11.6 | 11.2 |
Translation difference | -0.7 | 0.4 |
Acquisition cost, 31 Dec | 10.9 | 11.6 |
Equity adjustments, 1 Jan | 5.1 | 8.5 |
Share of results | 1.0 | 1.5 |
Dividends received | -1.4 | -2.1 |
TietoIlmarinen impairment | -1.4 | \u2014 |
Tietokarhu liquidation | \u2014 | -2.8 |
Equity adjustments, 31 Dec | 3.3 | 5.1 |
Carrying value, 31 Dec | 14.2 | 16.7 |
31\u00a0Dec 2022 | Tieto Esy Oy | TietoIlmarinen\u00a0Oy | BuyPass AS |
EUR million | |||
Non-current assets | 0.0 | \u2014 | 5.2 |
Current assets | 4.0 | \u2014 | 45.5 |
Total | 4.0 | \u2014 | 50.7 |
Non-current liabilities | 0.0 | \u2014 | \u2014 |
Current liabilities | 0.7 | \u2014 | 32.5 |
Total | 0.7 | \u2014 | 32.5 |
Net sales | 3.9 | 1.6 | 30.7 |
Expenses | -3.2 | -2.4 | -27.9 |
Result before taxes | 0.7 | -0.8 | 2.8 |
Income taxes | -0.2 | 0.0 | -0.7 |
Net result for the financial year | 0.6 | -0.8 | 2.1 |
Dividends paid to Tietoevry | 0.5 | \u2014 | 0.9 |
Average full-time personnel during the financial year | 27 | 13 | 25 |
Number of shares | Parent company's share % | Voting right % | Carrying value EUR million | |||||
31 Dec | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
Tieto Esy Oy | 7\u00a0300 | 7\u00a0300 | 80.0 | 80.0 | 34.0 | 34.0 | 5.1 | 5.1 |
TietoIlmarinen Oy | \u2014 | 3\u00a0570 | \u2014 | 70.0 | \u2014 | 30.0 | \u2014 | 2.2 |
BuyPass AS | 21\u00a0100 | 21\u00a0100 | 50.0 | 50.0 | 50.0 | 50.0 | 9.2 | 9.4 |
14.2 | 16.7 |
EUR million | 2022 | 2021 |
Acquisition cost, 1 Jan | 11.6 | 11.2 |
Translation difference | -0.7 | 0.4 |
Acquisition cost, 31 Dec | 10.9 | 11.6 |
Equity adjustments, 1 Jan | 5.1 | 8.5 |
Share of results | 1.0 | 1.5 |
Dividends received | -1.4 | -2.1 |
TietoIlmarinen impairment | -1.4 | \u2014 |
Tietokarhu liquidation | \u2014 | -2.8 |
Equity adjustments, 31 Dec | 3.3 | 5.1 |
Carrying value, 31 Dec | 14.2 | 16.7 |
31\u00a0Dec 2022 | Tieto Esy Oy | TietoIlmarinen\u00a0Oy | BuyPass AS |
EUR million | |||
Non-current assets | 0.0 | \u2014 | 5.2 |
Current assets | 4.0 | \u2014 | 45.5 |
Total | 4.0 | \u2014 | 50.7 |
Non-current liabilities | 0.0 | \u2014 | \u2014 |
Current liabilities | 0.7 | \u2014 | 32.5 |
Total | 0.7 | \u2014 | 32.5 |
Net sales | 3.9 | 1.6 | 30.7 |
Expenses | -3.2 | -2.4 | -27.9 |
Result before taxes | 0.7 | -0.8 | 2.8 |
Income taxes | -0.2 | 0.0 | -0.7 |
Net result for the financial year | 0.6 | -0.8 | 2.1 |
Dividends paid to Tietoevry | 0.5 | \u2014 | 0.9 |
Average full-time personnel during the financial year | 27 | 13 | 25 |
ACCOUNTING POLICIES | |||
Sales to and purchases from related parties are made on normal market terms and conditions and at market prices. There are no commitments or contingencies on behalf of related parties. |
ACCOUNTING POLICIES | |||
Commitments are disclosed when the Group has a contract where the existence of an obligation will be only confirmed in the future. | |||
Contingent liabilities are possible obligations whose existence will be confirmed by uncertain future events that are not wholly within the control of the entity. They can also include obligations that are not recognized in the statement of financial position because settlement is not probable or their amount cannot be measured reliably. |
EUR million | 31\u00a0Dec 2022 | 31\u00a0Dec\u00a02021 |
For Tietoevry obligations | ||
Mortgages | \u2014 | \u2014 |
Guarantees | ||
Performance guarantees | 81.7 | 91.6 |
Payment guarantees | 0.5 | 0.3 |
Other | 0.1 | 0.2 |
Other Tietoevry obligations | ||
Lease commitments, not yet commenced | 22.3 | 67.4 |
Other | 0.6 | 0.6 |
On behalf of third parties | ||
Guarantees | ||
Performance guarantees | 23.4 | 25.4 |
ACCOUNTING POLICIES | |||
Commitments are disclosed when the Group has a contract where the existence of an obligation will be only confirmed in the future. | |||
Contingent liabilities are possible obligations whose existence will be confirmed by uncertain future events that are not wholly within the control of the entity. They can also include obligations that are not recognized in the statement of financial position because settlement is not probable or their amount cannot be measured reliably. |