ACCOUNTING POLICIES | |||
The operating segments are reported in a manner consistent with the internal reporting provided to the Group Executive Team, which has been identified as Tieto\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 Team 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 a ccounting standards. 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 certain Group Support functions and are shown separately in the operating profit (EBIT). |
ACCOUNTING POLICIES | |||
Non-current assets or a disposal group are classified as held for sale if their carrying amount will be recovered principally through the disposal of the assets and the sale is highly probable. From the date of classification, assets and the associated liabilities held for sale are measured at the lower of the carrying amount and the fair value less costs to sell. Non-current assets classified as held for sale, or included in a disposal group classified as held for sale, are not depreciated or amortized. | |||
A discontinued operation is reported when a component of the Group that either has been disposed of, or is classified as held for sale, \u2022 represents a separate major line of business or geographical area of operations; \u2022 is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or \u2022 is a subsidiary acquired exclusively with a view to resale. A component of the group is defined as operations and cash flows that can be clearly distinguished operationally and for financial reporting purposes from the rest of the Group. | |||
The profit or loss from the discontinued operation is reported separately from income and expenses from continuing operations in the consolidated income statement, with prior periods presented on a comparative basis. Assets and liabilities related to the discontinued operations are presented as separate line items in the statement of the financial position and the comparative period is not restated. The statement of cash flows combines cash flows from both the continuing and the discontinued operations. | |||
The discontinued operation includes revenue and operating expenses directly related to the disposal group, and other income and costs related to continuing operations that are not expected to continue after the sale transaction or would have been avoided without the sale transaction. Certain costs related to supporting the disposal group during the transition are not included in the discontinued operation. | |||
Intra-group revenues and expenses between continuing and discontinued operations are eliminated. Elimination is done in discontinued operations when the Group intends to engage in similar transactions after the disposal. |
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 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 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, |
Some contracts include delivery of certain services, licenses and/or hardware provided by another service provider. In these contracts, Tieto acts as an agent, if Tieto does not obtain control of the services or hardware provided by another party before it is transferred to the customer, or as a principal if control is obtained. The principal versus agent assessment is performed at the performance obligation level. | |||
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 earlier purchases of 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 (costs to fulfil a contract) are met. Management judgement has been used when developing internal guidance on the tasks 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 to fulfil a contract are amortized during the period when the revenue for the 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. |
ACCOUNTING POLICIES | |||
Income tax expense includes current tax of the Group companies based on the taxable profit for the year, together with 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 tax assets and liabilities are recognized, using the liability method, on temporary differences between the tax bases of assets and liabilities and their carrying amounts in the statement of financial position as well as on tax loss carry forwards. Deferred taxes are measured using the tax rates and laws that have been enacted or substantively enacted at the reporting date and are expected to apply when the deferred tax asset is realized or the deferred tax liability is settled. | |||
Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax liabilities 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. The Group applies the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two taxes, as provided in the amendment to IAS 12. | |||
Deferred tax assets and liabilities are offset in the balance sheet when there is a legally enforceable right to offset current tax assets against current tax liabilities and when they relate to the same tax authority. |
ACCOUNTING POLICIES | |||
Basic earnings per share (EPS) is calculated by dividing the net profit or loss attributable to the shareholders of the Parent company by the weighted average number of shares in issue during the year, excluding shares purchased by Tieto 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. | |||
When calculating EPS for discontinued operations, both basic and diluted EPS are calculated using the same weighted average number of shares as used for continuing operations. |
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. |
ACCOUNTING POLICIES | |||
Remuneration for management and the Board of Directors includes all forms of consideration paid, payable or provided by Tieto in exchange for services rendered. |
ACCOUNTING POLICIES | |||
Tieto 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 Tieto 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 are recognized in profit or loss and a corresponding adjustment is made to equity. In countries where the reward is intended to be paid fully in cash, the costs are accounted for as cash-settled. Social costs paid on top of the reward are accounted for as cash-settled. |
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 either funded with payments to insurance companies or unfunded with pensions paid from operations. | |||
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. |
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 amortization 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 | |||
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. Development projects are analysed individually to determine the moment when the project has reached a milestone after which capitalization of development costs can start. 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 is 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. | |||
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. |
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 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 plans 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. |
Years | |
Buildings and structures | 25\u201340 |
Data processing equipment1) | 1\u20135 |
Other machinery and equipment | 5 |
Other tangible assets | 5 |
ACCOUNTING POLICIES | |||
The Group as a lessee | |||
The Group assesses whether a contract is, or contains, a lease at inception of the contract. The Group recognizes a right-of-use asset and a corresponding lease liability at the commencement date of a lease. Initially, the lease liability is measured at the present value of the future lease payments to be made over the lease period. The lease payments include fixed payments, less any lease incentives receivable, variable lease payments that depend on an index or rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option if it is reasonably certain to be exercised and payments of penalties for terminating the lease if the lease term reflects the exercise of a termination option. | |||
To determine the present value of future lease payments, the Group discounts the lease payments using the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. The incremental borrowing rate reflects the rate at which the Group could borrow an amount similar to the value of the right-of-use asset in a similar economic environment. At year- end, the average annual incremental borrowing rate applied to discount remaining lease payments for existing lease agreements is 6.9%. | |||
The Group determines the lease term as the non-cancellable period of the lease, together with the periods covered by an option to extend the lease, if it is reasonably certain to be exercised, and periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Group has some lease contracts for which the lease term is cancellable with only a short notification period (\u201cevergreen leases\u201d). Management uses judgement to evaluate the lease term for leases with extension or termination options, and for leases with a short notification period. Management estimates the lease term based on overall strategy and business development plans as well as contract specific facts and circumstances. | |||
At 31\u00a0December 2025, the weighted average residual lease term for lease contracts is 2.9 years (residual terms vary between 0.1\u20137.7 years). | |||
Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets comprises the initial measurement of the corresponding lease liability, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful life of the underlying asset. | |||
Lease liabilities are measured at amortized cost. The carrying amount of lease liabilities is increased to reflect the interest on the lease liability and decreased for the lease payments made. Interest expenses related to the lease liabilities are recognized in profit or loss. The carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term or in lease payments, or a change in the Group\u2019s assessment of an option to purchase the underlying asset. | |||
The Group applies the recognition exemption provided for leases. Lease payments for leases of low value assets and short-term leases (less than 12 months) are recognized in the income statement on a straight- line basis. The low value assets comprise IT equipment and office furniture. |
The Group has 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 the lease liability. Non-lease components are separated from lease payments based on fair market value. If such information is not readily available, management judgment is applied in estimating the value. | |||
The Group presents the payment of the principal portion of the lease liability in the cash flows from financing activities and the interest portion in the cash flows from operating activities. Lease payments related to low value assets and short-term leases as well as variable lease payments that are not included in the lease liability are also presented in the cash flow from 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. 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. | |||
The Group has sublease agreements for certain office premises originally leased under head lease contracts. The Group accounts for subleases by classifying them with reference to the right-of-use asset arising from the head lease. Subleases are classified as finance leases if substantially all the risks and rewards associated with the right-of-use asset have been transferred to the sub-lessee. If not, they are classified as operating subleases. For finance subleases, the right-of-use asset is derecognized and a net investment in the sublease is recognized. The lease payments are disclosed as amortization of the net investment in the lease and interest income. For operating subleases, the right-of-use asset remains on the balance sheet and lease income is recognized on a straight-line basis. |
ACCOUNTING POLICIES | |||
Trade receivables are initially recognised at fair value and subsequently at amortized cost less expected credit loss allowance (ECL). Tieto has elected to use the practical expedient and calculate lifetime ECL based on a pre-defined allowance matrix with customer segment specific credit characteristics, based on the following criteria: | |||
\u2022 Country group (Finland, Sweden, Norway, other European Union countries, other countries) \u2022 Customer industry group (financial services, public healthcare & welfare, industrial customer services) \u2022 Balance due status (not yet due, overdue 1\u20137 days, 8\u201330 days, 31\u201360 days, 61\u201390 days, over 90 days) | |||
Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. Default is defined as 90 days past due or a write off event, due to inability to collect debt. | |||
For each customer segment, the ECL rate (expressed as a percentage) indicates the historical average defaults identified during the past three years and also the Group\u2019s assessment of the possible impact from changes in the overall economic environment in which its customers operate. These collective allowances can be increased if the customer has filed for bankruptcy but has not yet registered the fact or if there are any facts or circumstances indicating that the customer\u2019s credit risk is above industry/country average. | |||
When calculating ECL for contract assets, Tieto uses the ECL rate set for \u201cnot yet due\u201d invoices in the allowance matrix. |
Trade receivables are permanently written off when there is no reasonable expectation of recovery. Subsequent recoveries of amounts previously written off are credited to the 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 their fair values due to their short-term nature. | |||
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 | |||
A 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 warranties | |||
The Group's warranties provide assurance that the delivery will function as expected and in accordance with contract specifications. Provisions related to these assurance-type warranties are recognized during the project and used during the warranty period. | |||
Other provisions | |||
Other provisions include provisions for loss making contracts which are recognized for any unavoidable net loss arising from the contract as well as employee related provisions other than restructuring. |
ACCOUNTING POLICIES | |||
Trade and other payables are presented as current liabilities if settlement is due 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. |
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 current if it is payable within 12 months, otherwise it is classified as non-current. |
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 | |||
Financial liabilities at amortized cost | |||
Financial liabilities in 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 the effective interest rate method, taking into account any issue costs and any discount or premium on settlement. The related interest expenses are recognized in profit or loss in financial items, see | |||
Financial assets and liabilities at fair value through profit or loss | |||
Financial assets and liabilities in this category are recognized in the statement of financial position at their fair value with gains or losses resulting from changes in the fair value, being recognized in the income statement. | |||
This category consists mainly 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 23, whereas gains or losses from derivatives, mainly currency forward contracts that relate to operating activities, are included in operating profit. | |||
Contingent consideration related to disposals is classified as a financial asset at fair value through profit or loss. | |||
Trade receivables to be sold via non-recourse arrangements are classified as financial assets at fair value through profit or loss (certain customers). | |||
Other investments include unlisted shares, where 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 is based on three hierarchy levels: | |||
\u2022 Level 1: quoted prices in active markets for given or identical assets or liabilities that the entity can access at the measurement date; \u2022 Level 2: inputs that are observable for the asset or liability, either directly or indirectly; \u2022 Level 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. The fair values of foreign exchange derivatives are calculated according to foreign exchange and interest rates on the closing date. |
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. |
ACCOUNTING POLICIES | |||
Business combinations | |||
Business combinations are accounted for using the acquisition method. Subsidiaries are consolidated from the date on which control is achieved until the date on which control ceases. The consideration transferred for the acquisition is the fair values of the assets transferred and the liabilities assumed. Acquisition related costs are recognised as expenses for the period in which they are incurred. | |||
Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the consideration transferred over the fair value of the identifiable net assets acquired is recognized as goodwill at the acquisition date. If the cost of the acquisition is less than the fair value of the net assets acquired in the case of a bargain purchase, the resulting gain is recognized in profit or loss. | |||
Asset and liabilities classified as held for sale | |||
Non-current assets are classified as held for sale if their carrying amounts are expected to be recovered | |||
When a 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 fair values of the disposed operation and the portion of the cash-generating unit retained. |
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. |
ACCOUNTING ESTIMATES AND JUDGEMENTS | |||
Judgement is required in determining uncertain tax positions, deferred taxes, and the extent to which deferred tax assets can be recognized. 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 subject to changing tax laws in multiple jurisdictions. The interpretation of tax legislation requires management judgement, and the applied interpretations may include uncertainties. |
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 estimates and assumptions used are reasonable, there are uncertainties which could materially affect the valuations. | |||
Similarly, estimates are made and judgement is applied when assessing the useful lives of other intangible assets, and testing for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. |
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. |
ACCOUNTING POLICIES | |||
The operating segments are reported in a manner consistent with the internal reporting provided to the Group Executive Team, which has been identified as Tieto\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 Team 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 a ccounting standards. 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 certain Group Support functions and are shown separately in the operating profit (EBIT). |
EUR million | 2025 | 2024 | Change % |
Tieto Tech Consulting | 789.2 | 836.9 | -6 |
Tieto Banktech1) | 585.7 | 580.4 | 1 |
Tieto Caretech | 232.7 | 231.3 | 1 |
Tieto Indtech | 270.1 | 263.7 | 2 |
Eliminations | -25.5 | -32.9 | -22 |
Group total | 1\u00a0852.3 | 1\u00a0879.5 | -1 |
Operating profit/loss (EBIT), EUR million | Operating profit (EBIT), EUR million | Operating margin (EBIT), % | Operating margin (EBIT), % | ||
2025 | 2024 | Change % | 2025 | 2024 | |
Tieto Tech Consulting | 59.2 | 71.2 | -17 | 7.5 | 8.5 |
Tieto Banktech | -7.6 | 44.8 | > 100 | -1.3 | 7.7 |
Tieto Caretech | 55.5 | 63.5 | -13 | 23.9 | 27.5 |
Tieto Indtech | 27.3 | 30.5 | -10 | 10.1 | 11.6 |
Non-allocated costs | -59.2 | -67.7 | -13 | \u2014 | \u2014 |
Group total | 75.2 | 142.3 | -47 | 4.1 | 7.6 |
EUR million | 2025 | 2024 | Change % |
Norway | 686.4 | 688.1 | 0 |
Sweden | 488.3 | 486.4 | 0 |
Finland | 333.6 | 327.2 | 2 |
Other | 344.0 | 377.8 | -9 |
Group total | 1\u00a0852.3 | 1\u00a0879.5 | -1 |
EUR million | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 | Change % |
Norway | 150.4 | 291.0 | -48 |
Finland | 65.2 | 110.3 | -41 |
Sweden | 40.3 | 100.7 | -60 |
Other | 41.7 | 69.8 | -40 |
Total non-current assets | 297.6 | 571.8 | -48 |
End of period | Average | |||||
2025 | 2024 | Change % | Share % | 2025 | 2024 | |
Tieto Tech Consulting | 7\u00a0675 | 8\u00a0831 | -13 | 54 | 8\u00a0220 | 9\u00a0190 |
Tieto Banktech | 3\u00a0139 | 3\u00a0296 | -5 | 22 | 3\u00a0219 | 3\u00a0421 |
Tieto Caretech | 1\u00a0516 | 1\u00a0553 | -2 | 11 | 1\u00a0568 | 1\u00a0578 |
Tieto Indtech | 1\u00a0402 | 1\u00a0593 | -12 | 10 | 1\u00a0507 | 1\u00a0610 |
Group functions | 515 | 594 | -13 | 4 | 575 | 565 |
Group total | 14\u00a0246 | 15\u00a0867 | -10 | 100 | 15\u00a0088 | 16\u00a0363 |
End of period | Average | |||||
2025 | 2024 | Change % | Share % | 2025 | 2024 | |
Norway | 2\u00a0756 | 2\u00a0881 | -4 | 19 | 2\u00a0833 | 2\u00a0931 |
Sweden | 2\u00a0054 | 2\u00a0275 | -10 | 14 | 2\u00a0157 | 2\u00a0397 |
Finland | 1\u00a0600 | 1\u00a0684 | -5 | 11 | 1\u00a0647 | 1\u00a0707 |
India | 2\u00a0399 | 2\u00a0630 | -9 | 17 | 2\u00a0495 | 2\u00a0709 |
Ukraine | 1\u00a0198 | 1\u00a0442 | -17 | 8 | 1\u00a0307 | 1\u00a0551 |
China | 858 | 1\u00a0016 | -16 | 6 | 937 | 1\u00a0031 |
Poland | 745 | 896 | -17 | 5 | 858 | 847 |
Latvia | 715 | 794 | -10 | 5 | 763 | 804 |
Czech Republic | 584 | 673 | -13 | 4 | 629 | 690 |
Bulgaria | 499 | 646 | -23 | 4 | 572 | 717 |
Other | 839 | 930 | -10 | 6 | 890 | 981 |
Group total | 14\u00a0246 | 15\u00a0867 | -10 | 100 | 15\u00a0088 | 16\u00a0363 |
Onshore countries | 6\u00a0909 | 7\u00a0382 | -6 | 48 | 7\u00a0169 | 7\u00a0599 |
Offshore countries | 7\u00a0338 | 8\u00a0486 | -14 | 52 | 7\u00a0918 | 8\u00a0764 |
Group total | 14\u00a0246 | 15\u00a0867 | -10 | 100 | 15\u00a0088 | 16\u00a0363 |
EUR million | 2025 | 2024 | Change % |
Tieto Tech Consulting | 16.8 | 6.7 | > 100 |
Tieto Banktech | 11.4 | 7.0 | 63 |
Tieto Caretech | 5.2 | 1.1 | > 100 |
Tieto Indtech | 4.3 | 0.8 | > 100 |
Group functions 1) | 6.5 | 29.2 | -78 |
Group total | 44.2 | 44.8 | -1 |
EUR million | 2025 | 2024 | Change % |
Tieto Tech Consulting | 0.0 | 0.0 | 0 |
Tieto Banktech | 10.3 | 11.2 | -8 |
Tieto Caretech | 3.2 | 2.6 | 24 |
Tieto Indtech | 0.3 | 0.1 | 74 |
Group functions | 0.1 | 0.1 | -15 |
Group total | 13.9 | 14.1 | -2 |
EUR million | 2025 | 2024 | Change % |
Tieto Tech Consulting | 10.7 | 12.5 | -14 |
Tieto Banktech | 17.7 | 19.0 | -7 |
Tieto Caretech | 0.2 | 0.2 | 3 |
Tieto Indtech | 4.1 | 4.5 | -8 |
Group functions | \u2014 | \u2014 | \u2014 |
Group total | 32.7 | 36.2 | -10 |
ACCOUNTING POLICIES | |||
The operating segments are reported in a manner consistent with the internal reporting provided to the Group Executive Team, which has been identified as Tieto\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 Team 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 a ccounting standards. 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 certain Group Support functions and are shown separately in the operating profit (EBIT). |
ACCOUNTING POLICIES | |||
Non-current assets or a disposal group are classified as held for sale if their carrying amount will be recovered principally through the disposal of the assets and the sale is highly probable. From the date of classification, assets and the associated liabilities held for sale are measured at the lower of the carrying amount and the fair value less costs to sell. Non-current assets classified as held for sale, or included in a disposal group classified as held for sale, are not depreciated or amortized. | |||
A discontinued operation is reported when a component of the Group that either has been disposed of, or is classified as held for sale, \u2022 represents a separate major line of business or geographical area of operations; \u2022 is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or \u2022 is a subsidiary acquired exclusively with a view to resale. A component of the group is defined as operations and cash flows that can be clearly distinguished operationally and for financial reporting purposes from the rest of the Group. | |||
The profit or loss from the discontinued operation is reported separately from income and expenses from continuing operations in the consolidated income statement, with prior periods presented on a comparative basis. Assets and liabilities related to the discontinued operations are presented as separate line items in the statement of the financial position and the comparative period is not restated. The statement of cash flows combines cash flows from both the continuing and the discontinued operations. | |||
The discontinued operation includes revenue and operating expenses directly related to the disposal group, and other income and costs related to continuing operations that are not expected to continue after the sale transaction or would have been avoided without the sale transaction. Certain costs related to supporting the disposal group during the transition are not included in the discontinued operation. | |||
Intra-group revenues and expenses between continuing and discontinued operations are eliminated. Elimination is done in discontinued operations when the Group intends to engage in similar transactions after the disposal. |
EUR million | 2025 | 2024 |
Revenue | 594.9 | 923.1 |
Materials and services | -61.1 | -112.9 |
Employee benefit expenses | -310.2 | -479.8 |
Depreciation and amortization 1) | -16.4 | -67.1 |
Impairment losses | -108.4 | -200.6 |
Loss on sale, net | -129.2 | \u2014 |
Other operating income and expenses, net | -122.9 | -175.1 |
Operating loss (EBIT) | -153.4 | -112.5 |
Financial income and expenses | -3.4 | -6.6 |
Loss before taxes | -156.8 | -119.1 |
Income taxes | -9.3 | -14.0 |
Loss, discontinued operations | -166.1 | -133.0 |
EUR million | 2025 | 2024 |
Loss, discontinued operations | -166.1 | -133.0 |
Items that may be reclassified subsequently to profit or loss | ||
Translation differences | 3.6 | -19.1 |
Items reclassified to profit or loss | ||
Translation differences | 91.6 | \u2014 |
Items that will not be reclassified subsequently to profit or loss | ||
Remeasurements of the defined benefit plans, net of tax | 0.1 | -0.1 |
Total comprehensive income, discontinued operations | -70.8 | -152.2 |
EUR million | 31\u00a0Dec 2025 |
Cash | 222.6 |
Post-closing adjustments 1) | 7.3 |
Fair value of contingent consideration 1) | 30.0 |
Total consideration received or receivable | 259.9 |
Carrying amount of net assets on disposal | -290.6 |
Reclassification of foreign exchange losses from other comprehensive income | -91.6 |
Costs to sell | -6.0 |
Other | -0.9 |
Net result of sale | -129.2 |
Consideration received in cash | 222.6 |
Costs to sell | -6.0 |
Cash and cash equivalents disposed of | -15.3 |
Net cash flow on disposal | 201.3 |
EUR million | 31 Aug 2025 |
Goodwill | 128.9 |
Other intangible assets1) | 18.4 |
Property, plant and equipment 1) | 65.2 |
Right-of-use assets 1) | 99.9 |
Deferred tax assets | 18.4 |
Interest-bearing receivables | 29.4 |
Trade and other receivables | 250.3 |
Other assets | 8.5 |
Cash and cash equivalents | 15.3 |
Total assets | 634.4 |
Lease liabilities | 101.9 |
Other interest-bearing liabilities | 34.3 |
Deferred tax liabilities | 8.8 |
Provisions | 7.9 |
Trade and other payables | 184.0 |
Other liabilities | 7.0 |
Total liabilities | 343.7 |
Net assets on disposal | 290.6 |
EUR million | 2025 | 2024 |
Cash flow from operating activities | 60.5 | 126.1 |
Cash flow from/used in investing activities 1) | 186.1 | -29.3 |
Cash flow used in financing activities | -16.8 | -25.3 |
Net cash flows from discontinued operations | 229.8 | 71.6 |
ACCOUNTING POLICIES | |||
Non-current assets or a disposal group are classified as held for sale if their carrying amount will be recovered principally through the disposal of the assets and the sale is highly probable. From the date of classification, assets and the associated liabilities held for sale are measured at the lower of the carrying amount and the fair value less costs to sell. Non-current assets classified as held for sale, or included in a disposal group classified as held for sale, are not depreciated or amortized. | |||
A discontinued operation is reported when a component of the Group that either has been disposed of, or is classified as held for sale, \u2022 represents a separate major line of business or geographical area of operations; \u2022 is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or \u2022 is a subsidiary acquired exclusively with a view to resale. A component of the group is defined as operations and cash flows that can be clearly distinguished operationally and for financial reporting purposes from the rest of the Group. | |||
The profit or loss from the discontinued operation is reported separately from income and expenses from continuing operations in the consolidated income statement, with prior periods presented on a comparative basis. Assets and liabilities related to the discontinued operations are presented as separate line items in the statement of the financial position and the comparative period is not restated. The statement of cash flows combines cash flows from both the continuing and the discontinued operations. | |||
The discontinued operation includes revenue and operating expenses directly related to the disposal group, and other income and costs related to continuing operations that are not expected to continue after the sale transaction or would have been avoided without the sale transaction. Certain costs related to supporting the disposal group during the transition are not included in the discontinued operation. | |||
Intra-group revenues and expenses between continuing and discontinued operations are eliminated. Elimination is done in discontinued operations when the Group intends to engage in similar transactions after the disposal. |
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 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 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, |
Some contracts include delivery of certain services, licenses and/or hardware provided by another service provider. In these contracts, Tieto acts as an agent, if Tieto does not obtain control of the services or hardware provided by another party before it is transferred to the customer, or as a principal if control is obtained. The principal versus agent assessment is performed at the performance obligation level. | |||
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 earlier purchases of 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 (costs to fulfil a contract) are met. Management judgement has been used when developing internal guidance on the tasks 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 to fulfil a contract are amortized during the period when the revenue for the related continuous operating service contract is recognized. |
EUR million | 2025 | 2024 |
Capitalized set-up costs on 31 Dec | 0.4 | 2.6 |
Amortization of capitalized set-up costs | \u2014 | \u2014 |
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 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 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, |
Some contracts include delivery of certain services, licenses and/or hardware provided by another service provider. In these contracts, Tieto acts as an agent, if Tieto does not obtain control of the services or hardware provided by another party before it is transferred to the customer, or as a principal if control is obtained. The principal versus agent assessment is performed at the performance obligation level. | |||
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 earlier purchases of 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 (costs to fulfil a contract) are met. Management judgement has been used when developing internal guidance on the tasks 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 to fulfil a contract are amortized during the period when the revenue for the 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. |
EUR million | 2025 | 2024 |
Transitional services income | 8.7 | \u2014 |
Rental and other premises related income | 4.3 | 0.7 |
Change in fair value of derivatives | 2.2 | 3.3 |
Government grants | 1.0 | 1.5 |
Gain on sale of property, plant and equipment, and business operations | 0.7 | 4.5 |
Joint venture management fees | \u2014 | 0.2 |
Other | 4.1 | 5.4 |
Total | 21.0 | 15.7 |
EUR million | 2025 | 2024 |
Information and communication technology | 63.3 | 59.8 |
Professional services and marketing | 33.4 | 32.8 |
Premises related costs | 19.9 | 21.7 |
Other1) | 32.8 | 33.0 |
Total | 149.4 | 147.3 |
EUR million | 2025 | 2024 |
Audit fees | 1.3 | 1.6 |
Audit related | 0.2 | 0.4 |
Tax advisory | 0.0 | 0.0 |
Other services | 0.0 | 0.3 |
Total | 1.6 | 2.3 |
EUR million | 2025 | 2024 |
Transitional services income | 8.7 | \u2014 |
Rental and other premises related income | 4.3 | 0.7 |
Change in fair value of derivatives | 2.2 | 3.3 |
Government grants | 1.0 | 1.5 |
Gain on sale of property, plant and equipment, and business operations | 0.7 | 4.5 |
Joint venture management fees | \u2014 | 0.2 |
Other | 4.1 | 5.4 |
Total | 21.0 | 15.7 |
EUR million | 2025 | 2024 |
Information and communication technology | 63.3 | 59.8 |
Professional services and marketing | 33.4 | 32.8 |
Premises related costs | 19.9 | 21.7 |
Other1) | 32.8 | 33.0 |
Total | 149.4 | 147.3 |
EUR million | 2025 | 2024 |
Audit fees | 1.3 | 1.6 |
Audit related | 0.2 | 0.4 |
Tax advisory | 0.0 | 0.0 |
Other services | 0.0 | 0.3 |
Total | 1.6 | 2.3 |
ACCOUNTING POLICIES | |||
Income tax expense includes current tax of the Group companies based on the taxable profit for the year, together with 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 tax assets and liabilities are recognized, using the liability method, on temporary differences between the tax bases of assets and liabilities and their carrying amounts in the statement of financial position as well as on tax loss carry forwards. Deferred taxes are measured using the tax rates and laws that have been enacted or substantively enacted at the reporting date and are expected to apply when the deferred tax asset is realized or the deferred tax liability is settled. | |||
Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax liabilities 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. The Group applies the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two taxes, as provided in the amendment to IAS 12. | |||
Deferred tax assets and liabilities are offset in the balance sheet when there is a legally enforceable right to offset current tax assets against current tax liabilities and when they relate to the same tax authority. |
ACCOUNTING ESTIMATES AND JUDGEMENTS | |||
Judgement is required in determining uncertain tax positions, deferred taxes, and the extent to which deferred tax assets can be recognized. 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 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 | 2025 | 2024 |
Current taxes | 26.3 | 32.6 |
Change in deferred taxes | -13.8 | -6.5 |
Taxes for prior years | 2.9 | 0.9 |
Total | 15.3 | 27.0 |
EUR million | 2025 | 2024 |
Profit before taxes | 41.0 | 97.2 |
Tax calculated at the domestic corporation tax rate of 20% | 8.2 | 19.4 |
Effect of different tax rates in foreign subsidiaries | 1.1 | 3.6 |
Tax effect of other non-deductible expenses and tax exempt income | -0.4 | 0.3 |
Taxes for prior years | 2.9 | 0.9 |
Deferred taxes from previous year | -0.2 | -3.8 |
Tax on foreign dividend distribution | -0.4 | 1.8 |
Other items1) | 4.1 | 4.8 |
Total | 15.3 | 27.0 |
Effective tax rate, % | 37.4 | 27.8 |
EUR million | 1\u00a0Jan\u00a02025 | Charged to income statement 1) | Charged to other compre- hensive income | Classified as held for sale | Other changes | 31\u00a0Dec 2025 |
Deferred tax asset | ||||||
Tax losses carried forward | 16.1 | 5.7 | \u2014 | -16.0 | 0.1 | 6.0 |
Property, plant and equipment | 7.0 | -0.3 | \u2014 | -4.2 | -0.1 | 2.4 |
Lease liabilities | 39.3 | -2.8 | \u2014 | -20.4 | 0.0 | 16.1 |
Employee benefits | 8.9 | -0.7 | -0.1 | -1.4 | -0.3 | 6.5 |
Provisions | 2.8 | 2.6 | -0.1 | -1.0 | 0.0 | 4.3 |
Revenue recognition | 2.3 | -0.5 | \u2014 | -0.6 | 0.0 | 1.2 |
Other temporary difference | 3.7 | 1.2 | \u2014 | -0.1 | -0.3 | 4.5 |
Total gross | 80.1 | 5.2 | -0.2 | -43.7 | -0.6 | 40.9 |
Offset against deferred tax liabilities | -74.7 | -32.9 | ||||
Total net | 5.4 | 8.0 | ||||
Deferred tax liability | ||||||
Intangible assets | 36.0 | -9.0 | \u2014 | -1.5 | -0.8 | 24.7 |
Right-of-use assets | 36.0 | -3.6 | \u2014 | -18.4 | 0.0 | 14.1 |
Untaxed reserves | 9.8 | 0.0 | \u2014 | -8.9 | 0.6 | 1.4 |
Other temporary difference | 17.0 | -1.2 | -0.1 | -1.0 | 1.0 | 15.7 |
Total gross | 98.8 | -13.8 | -0.1 | -29.7 | 0.8 | 55.9 |
Offset against deferred tax assets | -74.7 | -32.9 | ||||
Total net | 24.1 | 23.0 | ||||
Net balance | -18.7 | 19.0 | 0.0 | -13.9 | -1.4 | -15.0 |
EUR million | 1\u00a0Jan\u00a02024 | Charged to income statement 1) | Charged to other compre- hensive income | Other changes | 31 Dec 2024 |
Deferred tax asset | |||||
Tax losses carried forward | 23.6 | -6.6 | \u2014 | -0.9 | 16.1 |
Property, plant and equipment | 16.6 | -2.7 | \u2014 | -6.8 | 7.0 |
Lease liabilities | 40.1 | -0.5 | \u2014 | -0.3 | 39.3 |
Employee benefits | 9.3 | -0.2 | 0.0 | -0.1 | 8.9 |
Provisions | 1.6 | 1.2 | \u2014 | 0.0 | 2.8 |
Revenue recognition | 3.6 | -1.2 | \u2014 | -0.2 | 2.3 |
Other temporary difference | 1.2 | 2.5 | \u2014 | 0.0 | 3.7 |
Total gross | 96.1 | -7.6 | 0.0 | -8.3 | 80.1 |
Offset against deferred tax liabilities | -84.2 | -74.7 | |||
Total net | 11.8 | 5.4 | |||
Deferred tax liability | |||||
Intangible assets | 42.8 | -6.1 | \u2014 | -0.7 | 36.0 |
Right-of-use assets | 35.4 | 0.7 | \u2014 | -0.2 | 36.0 |
Untaxed reserves | 10.1 | 0.0 | \u2014 | -0.3 | 9.8 |
Other temporary difference | 23.5 | 0.5 | -0.1 | -6.8 | 17.0 |
Total gross | 111.7 | -4.9 | -0.1 | -7.9 | 98.8 |
Offset against deferred tax assets | -84.2 | -74.7 | |||
Total net | 27.5 | 24.1 | |||
Net balance | -15.7 | -2.7 | 0.1 | -0.4 | -18.7 |
ACCOUNTING POLICIES | |||
Income tax expense includes current tax of the Group companies based on the taxable profit for the year, together with 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 tax assets and liabilities are recognized, using the liability method, on temporary differences between the tax bases of assets and liabilities and their carrying amounts in the statement of financial position as well as on tax loss carry forwards. Deferred taxes are measured using the tax rates and laws that have been enacted or substantively enacted at the reporting date and are expected to apply when the deferred tax asset is realized or the deferred tax liability is settled. | |||
Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax liabilities 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. The Group applies the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two taxes, as provided in the amendment to IAS 12. | |||
Deferred tax assets and liabilities are offset in the balance sheet when there is a legally enforceable right to offset current tax assets against current tax liabilities and when they relate to the same tax authority. |
EUR million | 1\u00a0Jan\u00a02025 | Charged to income statement 1) | Charged to other compre- hensive income | Classified as held for sale | Other changes | 31\u00a0Dec 2025 |
Deferred tax asset | ||||||
Tax losses carried forward | 16.1 | 5.7 | \u2014 | -16.0 | 0.1 | 6.0 |
Property, plant and equipment | 7.0 | -0.3 | \u2014 | -4.2 | -0.1 | 2.4 |
Lease liabilities | 39.3 | -2.8 | \u2014 | -20.4 | 0.0 | 16.1 |
Employee benefits | 8.9 | -0.7 | -0.1 | -1.4 | -0.3 | 6.5 |
Provisions | 2.8 | 2.6 | -0.1 | -1.0 | 0.0 | 4.3 |
Revenue recognition | 2.3 | -0.5 | \u2014 | -0.6 | 0.0 | 1.2 |
Other temporary difference | 3.7 | 1.2 | \u2014 | -0.1 | -0.3 | 4.5 |
Total gross | 80.1 | 5.2 | -0.2 | -43.7 | -0.6 | 40.9 |
Offset against deferred tax liabilities | -74.7 | -32.9 | ||||
Total net | 5.4 | 8.0 | ||||
Deferred tax liability | ||||||
Intangible assets | 36.0 | -9.0 | \u2014 | -1.5 | -0.8 | 24.7 |
Right-of-use assets | 36.0 | -3.6 | \u2014 | -18.4 | 0.0 | 14.1 |
Untaxed reserves | 9.8 | 0.0 | \u2014 | -8.9 | 0.6 | 1.4 |
Other temporary difference | 17.0 | -1.2 | -0.1 | -1.0 | 1.0 | 15.7 |
Total gross | 98.8 | -13.8 | -0.1 | -29.7 | 0.8 | 55.9 |
Offset against deferred tax assets | -74.7 | -32.9 | ||||
Total net | 24.1 | 23.0 | ||||
Net balance | -18.7 | 19.0 | 0.0 | -13.9 | -1.4 | -15.0 |
EUR million | 1\u00a0Jan\u00a02024 | Charged to income statement 1) | Charged to other compre- hensive income | Other changes | 31 Dec 2024 |
Deferred tax asset | |||||
Tax losses carried forward | 23.6 | -6.6 | \u2014 | -0.9 | 16.1 |
Property, plant and equipment | 16.6 | -2.7 | \u2014 | -6.8 | 7.0 |
Lease liabilities | 40.1 | -0.5 | \u2014 | -0.3 | 39.3 |
Employee benefits | 9.3 | -0.2 | 0.0 | -0.1 | 8.9 |
Provisions | 1.6 | 1.2 | \u2014 | 0.0 | 2.8 |
Revenue recognition | 3.6 | -1.2 | \u2014 | -0.2 | 2.3 |
Other temporary difference | 1.2 | 2.5 | \u2014 | 0.0 | 3.7 |
Total gross | 96.1 | -7.6 | 0.0 | -8.3 | 80.1 |
Offset against deferred tax liabilities | -84.2 | -74.7 | |||
Total net | 11.8 | 5.4 | |||
Deferred tax liability | |||||
Intangible assets | 42.8 | -6.1 | \u2014 | -0.7 | 36.0 |
Right-of-use assets | 35.4 | 0.7 | \u2014 | -0.2 | 36.0 |
Untaxed reserves | 10.1 | 0.0 | \u2014 | -0.3 | 9.8 |
Other temporary difference | 23.5 | 0.5 | -0.1 | -6.8 | 17.0 |
Total gross | 111.7 | -4.9 | -0.1 | -7.9 | 98.8 |
Offset against deferred tax assets | -84.2 | -74.7 | |||
Total net | 27.5 | 24.1 | |||
Net balance | -15.7 | -2.7 | 0.1 | -0.4 | -18.7 |
ACCOUNTING POLICIES | |||
Basic earnings per share (EPS) is calculated by dividing the net profit or loss attributable to the shareholders of the Parent company by the weighted average number of shares in issue during the year, excluding shares purchased by Tieto 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. | |||
When calculating EPS for discontinued operations, both basic and diluted EPS are calculated using the same weighted average number of shares as used for continuing operations. |
2025 | 2024 | |
Profit/loss attributable to owners of the Parent company (EUR million) | ||
Continuing operations | 25.6 | 70.2 |
Discontinued operations | -166.1 | -133.0 |
Net loss for the financial year attributable to owners of the Parent company (EUR million) | -140.5 | -62.8 |
Weighted average number of shares during the year | ||
Basic | 118\u00a0490\u00a0938 | 118\u00a0522\u00a0308 |
Effect of dilutive share-based incentive plans | 177\u00a0697 | 104\u00a0015 |
Diluted | 118\u00a0668\u00a0635 | 118\u00a0626\u00a0323 |
Earnings per share (EUR) | ||
Basic | ||
Continuing operations | 0.22 | 0.59 |
Discontinued operations | -1.40 | -1.12 |
Net loss for the period | -1.19 | -0.53 |
Diluted | ||
Continuing operations | 0.22 | 0.59 |
Discontinued operations | -1.40 | -1.12 |
Net loss for the period | -1.18 | -0.53 |
ACCOUNTING POLICIES | |||
Basic earnings per share (EPS) is calculated by dividing the net profit or loss attributable to the shareholders of the Parent company by the weighted average number of shares in issue during the year, excluding shares purchased by Tieto 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. | |||
When calculating EPS for discontinued operations, both basic and diluted EPS are calculated using the same weighted average number of shares as used for continuing operations. |
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. |
EUR million | 2025 | 2024 |
Wages and salaries 1) | 833.2 | 850.2 |
Post-employment benefits | ||
Defined contribution plans | 58.3 | 59.1 |
Defined benefit plans | 1.8 | 6.8 |
Other benefits | 18.2 | 17.4 |
Other statutory social costs | 147.2 | 147.1 |
Share-based payments | 2.7 | 5.1 |
Other personnel expenses | 3.2 | 0.8 |
Total | 1\u00a0064.5 | 1\u00a0086.4 |
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 either funded with payments to insurance companies or unfunded with pensions paid from operations. | |||
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 | 2025 | 2024 |
Service cost | ||
Current service cost | 1.3 | 1.1 |
Settlement gains/losses | 0.2 | 0.1 |
Amendments | \u2014 | 4.0 |
One-time compensation | 0.3 | 1.6 |
Net interest expense | 0.4 | 0.3 |
Total | 2.2 | 7.1 |
Amounts recognized in other comprehensive income | ||
Remeasurement | ||
Gains (-)/losses (+) from change in demographic assumptions | 0.0 | 0.0 |
Gains (-)/losses (+) from change in financial assumptions | -2.1 | 0.0 |
Gains (-)/losses (+) from experience adjustments | 0.4 | -0.7 |
Gains (-)/losses (+) on plan assets | 1.4 | 0.1 |
Total | -0.3 | -0.7 |
Present value of defined benefit obligaton1) | Fair value of plan assets 2) | Net liability | ||||
EUR million | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
1 Jan | 48.8 | 30.9 | -23.6 | -5.4 | 25.3 | 25.5 |
Current service cost3) | 1.5 | 1.7 | \u2014 | \u2014 | 1.5 | 1.7 |
Interest expense/income3) | 1.1 | 0.5 | -0.7 | -0.2 | 0.4 | 0.3 |
Employer contribution | \u2014 | \u2014 | -0.2 | -0.8 | -0.2 | -0.8 |
Benefits paid | -4.2 | -4.0 | 1.8 | 0.1 | -2.4 | -3.9 |
Amendments | \u2014 | 21.8 | \u2014 | -17.7 | 0.0 | 4.0 |
Curtailment and settlement | -0.2 | -0.2 | 0.4 | 0.3 | 0.2 | 0.2 |
Actuarial gains/losses 3) | -1.7 | -0.6 | 1.4 | 0.0 | -0.4 | -0.6 |
Classified as held for sale | -4.3 | \u2014 | 1.4 | \u2014 | -2.9 | \u2014 |
Exchange rate differences | 0.0 | -1.2 | -0.1 | 0.1 | -0.1 | -1.1 |
31 Dec | 41.0 | 48.8 | -19.8 | -23.6 | 21.3 | 25.3 |
EUR million | 2025 | 2024 |
Defined benefit obligations | 21.7 | 26.1 |
Defined benefit plan assets | -0.4 | -0.8 |
Net liability | 21.3 | 25.3 |
% | 2025 | 2024 |
Finland | ||
Discount rate | 4.0 | 3.2 |
Future pension increases | 2.2 | 2.2 |
Inflation rate | 2.0 | 2.0 |
Sweden | ||
Discount rate | 3.8 | 3.0 |
Future salary increases | 1.7 | 1.8 |
Future pension increases | 1.7 | 1.8 |
Inflation rate | 1.7 | 1.8 |
Norway | ||
Discount rate | 3.9 | 3.9 |
Future salary increases | 4.0 | 4.0 |
Growth in the basic state pension (G) | 3.8 | 3.8 |
Poland | ||
Discount rate | 5.2 | 5.6 |
Future salary increases | 2.0 | 4.5 |
Change in assumption | Increase in assumption | Decrease in assumption | |
Impact on defined benefit obligation in Finland | |||
Discount rate | 0.5% | -4.7% | 5.2% |
Future pension increase | 0.5% | 4.7% | -4.4% |
Life expectancy | +1 year | 5.5% | |
Impact on defined benefit obligation in Sweden | |||
Discount rate | 0.5% | -7.7% | 8.6% |
Future salary increase | 0.5% | 9.2% | -7.8% |
Future pension increase | 0.5% | 6.8% | -6.0% |
Life expectancy | +1 year | 3.0% | |
Impact on defined benefit obligation in Norway | |||
Discount rate | 0.5% | -1.3% | 1.5% |
Future salary increase | 0.5% | 0.1% | -0.1% |
Future pension increase | 0.5% | 1.2% | \u2013 |
Life expectancy | +1 year | 1.1% | |
Impact on defined benefit obligation in Poland | |||
Discount rate | 0.5% | -5.4% | 5.9% |
Future salary increase | 1.0% | 12.6% | -10.8% |
EUR million | 2025 |
Maturity under 1 year | 3.2 |
Maturity 1\u20135 years | 12.7 |
Maturity 5\u201310 years | 14.3 |
Maturity 10\u201330 years | 30.3 |
Maturity over 30 years | 2.9 |
Total future benefit payments | 63.4 |
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. |
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 either funded with payments to insurance companies or unfunded with pensions paid from operations. | |||
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. |
ACCOUNTING POLICIES | |||
Remuneration for management and the Board of Directors includes all forms of consideration paid, payable or provided by Tieto in exchange for services rendered. |
2025 | 2024 | ||||
EUR thousand | President and CEO (current) | President and CEO (former) | Group Executive Team | President and CEO | Group Executive Team |
Salaries and benefits 1) | 624.0 | 1\u00a0549.6 | 3\u00a0209.7 | 914.3 | 3\u00a0198.0 |
Bonuses2) | 678.0 | 680.1 | 911.3 | 105.8 | 481.2 |
Termination benefits | \u2014 | 793.4 | 420.0 | \u2014 | 294.3 |
Share-based payments1) | 55.1 | 1\u00a0888.3 | 1\u00a0060.4 | 678.8 | 832.2 |
Statutory pensions 1) | 5.5 | 199.9 | 386.1 | 163.9 | 328.5 |
Supplementary pensions 1) | 130.1 | 417.7 | 556.1 | 225.8 | 351.3 |
Management entity compensation 2,3) | \u2014 | \u2014 | 454.8 | \u2014 | 267.4 |
Total | 1\u00a0492.6 | 5\u00a0528.9 | 6\u00a0998.4 | 2\u00a0088.6 | 5\u00a0752.9 |
EUR thousand | 2025 | 2024 |
Board members at 31\u00a0Dec 2025 | ||
Tomas Franz\u00e9n, Chairperson Board and RC | 187.4 | 187.9 |
Harri-Pekka Kaukonen, Deputy Chairperson, Chairperson ARC | 121.4 | 117.5 |
Nina Bjornstad (as of 25 March 2025) | 82.7 | \u2014 |
Bertil Carls\u00e9n | 89.1 | 85.6 |
Elisabetta Castiglioni | 89.1 | 85.6 |
Marianne Dahl (as of 25 March 2025) | 80.3 | \u2014 |
Liselotte H\u00e4gertz Engstam (until 25 March 2025) | 8.0 | 84.0 |
Katharina Mosheim (until 25 March 2025) | 8.0 | 85.6 |
Gustav Moss | 94.7 | 95.2 |
Petter S\u00f6derstr\u00f6m | 93.1 | 96.0 |
Endre Rangnes (until 3 September 2024) | \u2014 | 86.4 |
Tommy Sander Aldrin, personnel rep. | 15.6 | 7.7 |
Ilpo Waljus, personnel rep. | 15.6 | 7.7 |
Thomas Slettemoen, personnel rep. | \u2014 | 15.3 |
Minna Kilpala, personnel deputy rep. | 7.8 | \u2014 |
Anders Palklint, personnel deputy rep. (until 2 September 2025) | 7.8 | 15.3 |
Bj\u00f6rn Tjernstr\u00f6m, personnel deputy rep. (as of 2 September 2025) | 4.6 | \u2014 |
Total | 905.2 | 969.7 |
ACCOUNTING POLICIES | |||
Tieto 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 Tieto 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 are recognized in profit or loss and a corresponding adjustment is made to equity. In countries where the reward is intended to be paid fully in cash, the costs are accounted for as cash-settled. Social costs paid on top of the reward are accounted for as cash-settled. |
Performance Share Plan | 2023\u20132025 | 2024\u20132026 | 2025\u20132027 |
Plan launched | 14 February 2023 | 14 February 2024 | 14 February 2025 |
Performance period | 2023\u20132025 | 2024\u20132026 | 2025\u20132027 |
Vesting conditions | Relative Total Shareholder Return of Tieto share (TSR) and ESG targets (gender diversity and CO2 reduction). Valid employment or director agreement of a key employee upon the reward payment. | Relative and Absolute Total Shareholder Return of Tieto share (TSR) and ESG targets (gender diversity and CO 2 reduction). Valid employment or director agreement of a key employee upon the reward payment. | Relative and Absolute Total Shareholder Return of Tieto share (TSR) and ESG targets (gender diversity and CO 2 reduction). Valid employment or director agreement of a key employee upon the reward payment. |
Exercised | In shares and cash in 2026 | In shares and cash in 2027 | In shares and cash in 2028 |
Number of participants on 31\u00a0Dec\u00a02025 | 330 | 403 | 476 |
Other | On 31\u00a0Dec 2025, rewards to be paid correspond to the value of approximate number of 487 029 Tieto gross shares. | On 31\u00a0Dec 2025, rewards to be paid correspond to the value of approximate number of 562 949 Tieto gross shares. | On 31\u00a0Dec 2025, rewards to be paid correspond to the value of approximate number of 843 497 Tieto gross shares. |
Restricted Share Plan | 2023\u20132025 | 2024\u20132026 | 2025\u20132027 |
Plan launched | 14 February 2023 | 14 February 2024 | 14 February 2025 |
Vesting period | 2023\u20132025 | 2024\u20132026 | 2025\u20132027 |
Vesting conditions | Valid employment or director agreement of a key employee upon the reward payment. | ||
Exercised | In shares and cash in 2026 | In shares and cash in 2027 | In shares and cash in 2028 |
Number of participants on 31\u00a0Dec\u00a02025 | 109 | 147 | 154 |
Other | On 31\u00a0Dec 2025, rewards to be paid correspond to the value of approximate number of 75 484 Tieto gross shares. | On 31\u00a0Dec 2025, rewards to be paid correspond to the value of approximate number of 44 588 Tieto gross shares. | On 31\u00a0Dec 2025, rewards to be paid correspond to the value of approximate number of 49 343 Tieto gross shares. |
EUR million | 2025 | 2024 |
Equity-settled share-based incentive plans | 2.7 | 5.1 |
Cash-settled share-based incentive plans 1) | 2.4 | 0.0 |
Social costs settled in cash 2) | 0.6 | 0.2 |
Total | 5.7 | 5.3 |
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 amortization 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 | |||
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. Development projects are analysed individually to determine the moment when the project has reached a milestone after which capitalization of development costs can start. 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 is 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. | |||
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. |
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 estimates and assumptions used are reasonable, there are uncertainties which could materially affect the valuations. | |||
Similarly, estimates are made and judgement is applied when assessing the useful lives of other intangible assets, and testing for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. |
EUR million | Goodwill | Software acquired separately | Intangible assets recognized from acquisitions 1) | Internally developed software | Other | Advance payments | Total |
Acquisition cost 1\u00a0Jan\u00a02025 | 1\u00a0847.7 | 25.4 | 270.7 | 295.2 | 18.6 | 0.8 | 2\u00a0458.4 |
Additions | \u2014 | 0.4 | \u2014 | 50.4 | \u2014 | 0.5 | 51.3 |
Disposals and retirements | \u2014 | -0.9 | -173.4 | -88.4 | \u2014 | \u2014 | -262.7 |
Reclassifications | \u2014 | 0.8 | \u2014 | \u2014 | \u2014 | -0.8 | \u2014 |
Classified as held for sale | -557.8 | -21.5 | -46.7 | -1.1 | -17.9 | -0.3 | -645.3 |
Translation differences | 19.5 | 0.1 | 1.2 | -0.2 | \u2014 | 0.0 | 20.6 |
Acquisition cost 31\u00a0Dec 2025 | 1\u00a0309.4 | 4.2 | 51.8 | 256.0 | 0.7 | 0.2 | 1\u00a0622.2 |
Accumulated amortization and impairments 1\u00a0Jan\u00a02025 | -199.5 | -14.6 | -206.2 | -58.9 | -17.2 | \u2014 | -496.4 |
Disposals and retirements | \u2014 | 1.0 | 173.4 | 88.4 | \u2014 | \u2014 | 262.9 |
Amortization 2) | \u2014 | -1.8 | -34.6 | -13.4 | -0.3 | \u2014 | -50.1 |
Impairments3) | -106.7 | \u2014 | \u2014 | -81.2 | \u2014 | \u2014 | -187.9 |
Reclassifications | \u2014 | 0.0 | \u2014 | \u2014 | 0.0 | \u2014 | \u2014 |
Classified as held for sale | 315.0 | 11.6 | 41.5 | 0.9 | 16.8 | \u2014 | 385.8 |
Translation differences | -8.8 | 0.1 | -2.4 | 0.3 | \u2014 | \u2014 | -10.8 |
Accumulated amortization and impairments 31\u00a0Dec 2025 | \u2014 | -3.7 | -28.3 | -63.8 | -0.7 | \u2014 | -96.5 |
Carrying value 1\u00a0Jan\u00a02025 | 1\u00a0648.2 | 10.8 | 64.4 | 236.3 | 1.4 | 0.8 | 1\u00a0962.0 |
Carrying value 31\u00a0Dec 2025 | 1\u00a0309.4 | 0.5 | 23.4 | 192.2 | 0.0 | 0.2 | 1\u00a0525.8 |
EUR million | Goodwill | Software acquired separately | Intangible assets recognized from acquisitions 1) | Internally developed software | Other | Advance payments | Total |
Acquisition cost 1\u00a0Jan\u00a02024 | 1\u00a0907.3 | 29.9 | 282.0 | 330.8 | 19.9 | 1.2 | 2\u00a0571.1 |
Additions | \u2014 | 4.6 | \u2014 | 45.2 | 0.0 | 0.8 | 50.6 |
Disposals and retirements | \u2014 | -9.7 | -1.4 | -68.0 | -1.3 | \u2014 | -80.5 |
Reclassifications | \u2014 | 1.3 | \u2014 | \u2014 | 0.0 | -1.2 | 0.1 |
Translation differences | -59.6 | -0.7 | -9.9 | -12.7 | 0.0 | -0.0 | -83.0 |
Acquisition cost 31\u00a0Dec\u00a02024 | 1\u00a0847.7 | 25.4 | 270.7 | 295.2 | 18.6 | 0.8 | 2\u00a0458.4 |
Accumulated amortization and impairments 1\u00a0Jan\u00a02024 | \u2014 | -18.7 | -171.5 | -117.0 | -17.2 | \u2014 | -324.3 |
Disposals and retirements | \u2014 | 9.7 | 1.4 | 68.0 | 1.3 | \u2014 | 80.5 |
Amortization 2) | \u2014 | -5.9 | -43.8 | -13.8 | -1.3 | \u2014 | -64.7 |
Impairments | -199.5 | \u2014 | \u2014 | -0.6 | \u2014 | \u2014 | -200.1 |
Reclassifications | \u2014 | -0.1 | \u2014 | \u2014 | 0.0 | \u2014 | -0.1 |
Translation differences | \u2014 | 0.4 | 7.5 | 4.5 | 0.0 | \u2014 | 12.4 |
Accumulated amortization and impairments 31\u00a0Dec\u00a02024 | -199.5 | -14.6 | -206.2 | -58.9 | -17.2 | \u2014 | -496.4 |
Carrying value 1\u00a0Jan\u00a02024 | 1\u00a0907.3 | 11.2 | 110.6 | 213.9 | 2.8 | 1.2 | 2\u00a0246.8 |
Carrying value 31\u00a0Dec\u00a02024 | 1\u00a0648.2 | 10.8 | 64.4 | 236.3 | 1.4 | 0.8 | 1\u00a0962.0 |
EUR million | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 |
Tieto Tech Consulting | 576.5 | 688.5 |
Tieto Banktech | 297.3 | 295.2 |
Tieto Caretech | 253.0 | 250.2 |
Tieto Indtech | 182.7 | 180.7 |
Tietoevry Tech Services | \u2014 | 233.6 |
Total | 1\u00a0309.4 | 1\u00a0648.2 |
Key assumption % | Terminal growth rate | Pre-tax WACC | ||
2025 | 2024 | 2025 | 2024 | |
Tieto Tech Consulting | 1.5 | 1.5 | 10.7 | 10.9 |
Tieto Banktech | 1.5 | 1.5 | 9.1 | 8.9 |
Tieto Caretech | 1.5 | 1.5 | 8.6 | 8.6 |
Tieto Indtech | 1.5 | 1.5 | 8.8 | 8.6 |
Tietoevry Tech Services | \u2014 | 0.0 | \u2014 | 10.7 |
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 amortization 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 | |||
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. Development projects are analysed individually to determine the moment when the project has reached a milestone after which capitalization of development costs can start. 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 is 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. | |||
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. |
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 estimates and assumptions used are reasonable, there are uncertainties which could materially affect the valuations. | |||
Similarly, estimates are made and judgement is applied when assessing the useful lives of other intangible assets, and testing for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. |
EUR million | Goodwill | Software acquired separately | Intangible assets recognized from acquisitions 1) | Internally developed software | Other | Advance payments | Total |
Acquisition cost 1\u00a0Jan\u00a02025 | 1\u00a0847.7 | 25.4 | 270.7 | 295.2 | 18.6 | 0.8 | 2\u00a0458.4 |
Additions | \u2014 | 0.4 | \u2014 | 50.4 | \u2014 | 0.5 | 51.3 |
Disposals and retirements | \u2014 | -0.9 | -173.4 | -88.4 | \u2014 | \u2014 | -262.7 |
Reclassifications | \u2014 | 0.8 | \u2014 | \u2014 | \u2014 | -0.8 | \u2014 |
Classified as held for sale | -557.8 | -21.5 | -46.7 | -1.1 | -17.9 | -0.3 | -645.3 |
Translation differences | 19.5 | 0.1 | 1.2 | -0.2 | \u2014 | 0.0 | 20.6 |
Acquisition cost 31\u00a0Dec 2025 | 1\u00a0309.4 | 4.2 | 51.8 | 256.0 | 0.7 | 0.2 | 1\u00a0622.2 |
Accumulated amortization and impairments 1\u00a0Jan\u00a02025 | -199.5 | -14.6 | -206.2 | -58.9 | -17.2 | \u2014 | -496.4 |
Disposals and retirements | \u2014 | 1.0 | 173.4 | 88.4 | \u2014 | \u2014 | 262.9 |
Amortization 2) | \u2014 | -1.8 | -34.6 | -13.4 | -0.3 | \u2014 | -50.1 |
Impairments3) | -106.7 | \u2014 | \u2014 | -81.2 | \u2014 | \u2014 | -187.9 |
Reclassifications | \u2014 | 0.0 | \u2014 | \u2014 | 0.0 | \u2014 | \u2014 |
Classified as held for sale | 315.0 | 11.6 | 41.5 | 0.9 | 16.8 | \u2014 | 385.8 |
Translation differences | -8.8 | 0.1 | -2.4 | 0.3 | \u2014 | \u2014 | -10.8 |
Accumulated amortization and impairments 31\u00a0Dec 2025 | \u2014 | -3.7 | -28.3 | -63.8 | -0.7 | \u2014 | -96.5 |
Carrying value 1\u00a0Jan\u00a02025 | 1\u00a0648.2 | 10.8 | 64.4 | 236.3 | 1.4 | 0.8 | 1\u00a0962.0 |
Carrying value 31\u00a0Dec 2025 | 1\u00a0309.4 | 0.5 | 23.4 | 192.2 | 0.0 | 0.2 | 1\u00a0525.8 |
EUR million | Goodwill | Software acquired separately | Intangible assets recognized from acquisitions 1) | Internally developed software | Other | Advance payments | Total |
Acquisition cost 1\u00a0Jan\u00a02024 | 1\u00a0907.3 | 29.9 | 282.0 | 330.8 | 19.9 | 1.2 | 2\u00a0571.1 |
Additions | \u2014 | 4.6 | \u2014 | 45.2 | 0.0 | 0.8 | 50.6 |
Disposals and retirements | \u2014 | -9.7 | -1.4 | -68.0 | -1.3 | \u2014 | -80.5 |
Reclassifications | \u2014 | 1.3 | \u2014 | \u2014 | 0.0 | -1.2 | 0.1 |
Translation differences | -59.6 | -0.7 | -9.9 | -12.7 | 0.0 | -0.0 | -83.0 |
Acquisition cost 31\u00a0Dec\u00a02024 | 1\u00a0847.7 | 25.4 | 270.7 | 295.2 | 18.6 | 0.8 | 2\u00a0458.4 |
Accumulated amortization and impairments 1\u00a0Jan\u00a02024 | \u2014 | -18.7 | -171.5 | -117.0 | -17.2 | \u2014 | -324.3 |
Disposals and retirements | \u2014 | 9.7 | 1.4 | 68.0 | 1.3 | \u2014 | 80.5 |
Amortization 2) | \u2014 | -5.9 | -43.8 | -13.8 | -1.3 | \u2014 | -64.7 |
Impairments | -199.5 | \u2014 | \u2014 | -0.6 | \u2014 | \u2014 | -200.1 |
Reclassifications | \u2014 | -0.1 | \u2014 | \u2014 | 0.0 | \u2014 | -0.1 |
Translation differences | \u2014 | 0.4 | 7.5 | 4.5 | 0.0 | \u2014 | 12.4 |
Accumulated amortization and impairments 31\u00a0Dec\u00a02024 | -199.5 | -14.6 | -206.2 | -58.9 | -17.2 | \u2014 | -496.4 |
Carrying value 1\u00a0Jan\u00a02024 | 1\u00a0907.3 | 11.2 | 110.6 | 213.9 | 2.8 | 1.2 | 2\u00a0246.8 |
Carrying value 31\u00a0Dec\u00a02024 | 1\u00a0648.2 | 10.8 | 64.4 | 236.3 | 1.4 | 0.8 | 1\u00a0962.0 |
EUR million | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 |
Tieto Tech Consulting | 576.5 | 688.5 |
Tieto Banktech | 297.3 | 295.2 |
Tieto Caretech | 253.0 | 250.2 |
Tieto Indtech | 182.7 | 180.7 |
Tietoevry Tech Services | \u2014 | 233.6 |
Total | 1\u00a0309.4 | 1\u00a0648.2 |
Key assumption % | Terminal growth rate | Pre-tax WACC | ||
2025 | 2024 | 2025 | 2024 | |
Tieto Tech Consulting | 1.5 | 1.5 | 10.7 | 10.9 |
Tieto Banktech | 1.5 | 1.5 | 9.1 | 8.9 |
Tieto Caretech | 1.5 | 1.5 | 8.6 | 8.6 |
Tieto Indtech | 1.5 | 1.5 | 8.8 | 8.6 |
Tietoevry Tech Services | \u2014 | 0.0 | \u2014 | 10.7 |
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 amortization 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 | |||
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. Development projects are analysed individually to determine the moment when the project has reached a milestone after which capitalization of development costs can start. 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 is 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. | |||
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. |
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 acquisitions 1) | Internally developed software | Other | Advance payments | Total |
Acquisition cost 1\u00a0Jan\u00a02025 | 1\u00a0847.7 | 25.4 | 270.7 | 295.2 | 18.6 | 0.8 | 2\u00a0458.4 |
Additions | \u2014 | 0.4 | \u2014 | 50.4 | \u2014 | 0.5 | 51.3 |
Disposals and retirements | \u2014 | -0.9 | -173.4 | -88.4 | \u2014 | \u2014 | -262.7 |
Reclassifications | \u2014 | 0.8 | \u2014 | \u2014 | \u2014 | -0.8 | \u2014 |
Classified as held for sale | -557.8 | -21.5 | -46.7 | -1.1 | -17.9 | -0.3 | -645.3 |
Translation differences | 19.5 | 0.1 | 1.2 | -0.2 | \u2014 | 0.0 | 20.6 |
Acquisition cost 31\u00a0Dec 2025 | 1\u00a0309.4 | 4.2 | 51.8 | 256.0 | 0.7 | 0.2 | 1\u00a0622.2 |
Accumulated amortization and impairments 1\u00a0Jan\u00a02025 | -199.5 | -14.6 | -206.2 | -58.9 | -17.2 | \u2014 | -496.4 |
Disposals and retirements | \u2014 | 1.0 | 173.4 | 88.4 | \u2014 | \u2014 | 262.9 |
Amortization 2) | \u2014 | -1.8 | -34.6 | -13.4 | -0.3 | \u2014 | -50.1 |
Impairments3) | -106.7 | \u2014 | \u2014 | -81.2 | \u2014 | \u2014 | -187.9 |
Reclassifications | \u2014 | 0.0 | \u2014 | \u2014 | 0.0 | \u2014 | \u2014 |
Classified as held for sale | 315.0 | 11.6 | 41.5 | 0.9 | 16.8 | \u2014 | 385.8 |
Translation differences | -8.8 | 0.1 | -2.4 | 0.3 | \u2014 | \u2014 | -10.8 |
Accumulated amortization and impairments 31\u00a0Dec 2025 | \u2014 | -3.7 | -28.3 | -63.8 | -0.7 | \u2014 | -96.5 |
Carrying value 1\u00a0Jan\u00a02025 | 1\u00a0648.2 | 10.8 | 64.4 | 236.3 | 1.4 | 0.8 | 1\u00a0962.0 |
Carrying value 31\u00a0Dec 2025 | 1\u00a0309.4 | 0.5 | 23.4 | 192.2 | 0.0 | 0.2 | 1\u00a0525.8 |
EUR million | Goodwill | Software acquired separately | Intangible assets recognized from acquisitions 1) | Internally developed software | Other | Advance payments | Total |
Acquisition cost 1\u00a0Jan\u00a02024 | 1\u00a0907.3 | 29.9 | 282.0 | 330.8 | 19.9 | 1.2 | 2\u00a0571.1 |
Additions | \u2014 | 4.6 | \u2014 | 45.2 | 0.0 | 0.8 | 50.6 |
Disposals and retirements | \u2014 | -9.7 | -1.4 | -68.0 | -1.3 | \u2014 | -80.5 |
Reclassifications | \u2014 | 1.3 | \u2014 | \u2014 | 0.0 | -1.2 | 0.1 |
Translation differences | -59.6 | -0.7 | -9.9 | -12.7 | 0.0 | -0.0 | -83.0 |
Acquisition cost 31\u00a0Dec\u00a02024 | 1\u00a0847.7 | 25.4 | 270.7 | 295.2 | 18.6 | 0.8 | 2\u00a0458.4 |
Accumulated amortization and impairments 1\u00a0Jan\u00a02024 | \u2014 | -18.7 | -171.5 | -117.0 | -17.2 | \u2014 | -324.3 |
Disposals and retirements | \u2014 | 9.7 | 1.4 | 68.0 | 1.3 | \u2014 | 80.5 |
Amortization 2) | \u2014 | -5.9 | -43.8 | -13.8 | -1.3 | \u2014 | -64.7 |
Impairments | -199.5 | \u2014 | \u2014 | -0.6 | \u2014 | \u2014 | -200.1 |
Reclassifications | \u2014 | -0.1 | \u2014 | \u2014 | 0.0 | \u2014 | -0.1 |
Translation differences | \u2014 | 0.4 | 7.5 | 4.5 | 0.0 | \u2014 | 12.4 |
Accumulated amortization and impairments 31\u00a0Dec\u00a02024 | -199.5 | -14.6 | -206.2 | -58.9 | -17.2 | \u2014 | -496.4 |
Carrying value 1\u00a0Jan\u00a02024 | 1\u00a0907.3 | 11.2 | 110.6 | 213.9 | 2.8 | 1.2 | 2\u00a0246.8 |
Carrying value 31\u00a0Dec\u00a02024 | 1\u00a0648.2 | 10.8 | 64.4 | 236.3 | 1.4 | 0.8 | 1\u00a0962.0 |
EUR million | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 |
Tieto Tech Consulting | 576.5 | 688.5 |
Tieto Banktech | 297.3 | 295.2 |
Tieto Caretech | 253.0 | 250.2 |
Tieto Indtech | 182.7 | 180.7 |
Tietoevry Tech Services | \u2014 | 233.6 |
Total | 1\u00a0309.4 | 1\u00a0648.2 |
Key assumption % | Terminal growth rate | Pre-tax WACC | ||
2025 | 2024 | 2025 | 2024 | |
Tieto Tech Consulting | 1.5 | 1.5 | 10.7 | 10.9 |
Tieto Banktech | 1.5 | 1.5 | 9.1 | 8.9 |
Tieto Caretech | 1.5 | 1.5 | 8.6 | 8.6 |
Tieto Indtech | 1.5 | 1.5 | 8.8 | 8.6 |
Tietoevry Tech Services | \u2014 | 0.0 | \u2014 | 10.7 |
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 plans 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. |
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\u00a02025 | 1.2 | 3.4 | 272.6 | 61.6 | 7.9 | 346.8 |
Additions | \u2014 | \u2014 | 3.3 | 1.6 | 4.7 | 9.7 |
Disposals and retirements | \u2014 | \u2014 | -5.2 | -1.1 | 0.2 | -6.2 |
Reclassifications | \u2014 | \u2014 | 2.0 | 1.6 | -3.6 | \u2014 |
Classified as held for sale | \u2014 | \u2014 | -228.2 | -39.7 | -9.1 | -277.0 |
Translation differences | \u2014 | \u2014 | 2.3 | 0.1 | 0.0 | 2.4 |
Acquisition cost 31\u00a0Dec 2025 | 1.2 | 3.4 | 46.8 | 24.1 | 0.2 | 75.7 |
Accumulated depreciation and impairments 1\u00a0Jan\u00a02025 | \u2014 | -1.9 | -216.8 | -45.9 | \u2014 | -264.6 |
Disposals and retirements | \u2014 | \u2014 | 5.4 | 1.1 | \u2014 | 6.4 |
Depreciation 1) | \u2014 | -0.1 | -12.4 | -4.0 | \u2014 | -16.5 |
Reclassifications | \u2014 | \u2014 | 1.2 | -1.2 | \u2014 | \u2014 |
Classified as held for sale | \u2014 | \u2014 | 186.1 | 31.8 | \u2014 | 217.9 |
Translation differences | \u2014 | \u2014 | -1.2 | -0.1 | \u2014 | -1.3 |
Accumulated depreciation and impairments 31\u00a0Dec 2025 | \u2014 | -2.0 | -37.6 | -18.4 | \u2014 | -58.0 |
Carrying value 1\u00a0Jan\u00a02025 | 1.2 | 1.5 | 55.9 | 15.7 | 7.9 | 82.2 |
Carrying value 31\u00a0Dec 2025 | 1.2 | 1.4 | 9.2 | 5.7 | 0.2 | 17.7 |
Acquisition cost 1\u00a0Jan\u00a02024 | 1.2 | 3.4 | 339.7 | 63.4 | 14.4 | 422.1 |
Additions | \u2014 | \u2014 | 24.3 | 3.4 | 6.7 | 34.4 |
Disposals and retirements | \u2014 | \u2014 | -100.3 | -7.0 | 0.0 | -107.3 |
Reclassifications | \u2014 | \u2014 | 14.6 | 2.1 | -12.8 | 3.9 |
Translation differences | \u2014 | \u2014 | -5.7 | -0.3 | -0.4 | -6.4 |
Acquisition cost 31\u00a0Dec\u00a02024 | 1.2 | 3.4 | 272.6 | 61.6 | 7.9 | 346.8 |
Accumulated depreciation and impairments 1\u00a0Jan\u00a02024 | \u2014 | -1.8 | -284.5 | -47.1 | \u2014 | -333.4 |
Disposals and retirements | \u2014 | \u2014 | 100.2 | 7.1 | \u2014 | 107.3 |
Depreciation 1) | \u2014 | -0.1 | -33.3 | -6.1 | \u2014 | -39.5 |
Reclassifications | \u2014 | \u2014 | -3.8 | -0.1 | \u2014 | -3.9 |
Translation differences | \u2014 | \u2014 | 4.6 | 0.3 | \u2014 | 4.9 |
Accumulated depreciation and impairments 31\u00a0Dec\u00a02024 | \u2014 | -1.9 | -216.8 | -45.9 | \u2014 | -264.6 |
Carrying value 1\u00a0Jan\u00a02024 | 1.2 | 1.6 | 55.2 | 16.3 | 14.4 | 88.8 |
Carrying value 31\u00a0Dec\u00a02024 | 1.2 | 1.5 | 55.9 | 15.7 | 7.9 | 82.2 |
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 plans 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. |
Years | |
Buildings and structures | 25\u201340 |
Data processing equipment1) | 1\u20135 |
Other machinery and equipment | 5 |
Other tangible assets | 5 |
ACCOUNTING POLICIES | |||
The Group as a lessee | |||
The Group assesses whether a contract is, or contains, a lease at inception of the contract. The Group recognizes a right-of-use asset and a corresponding lease liability at the commencement date of a lease. Initially, the lease liability is measured at the present value of the future lease payments to be made over the lease period. The lease payments include fixed payments, less any lease incentives receivable, variable lease payments that depend on an index or rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option if it is reasonably certain to be exercised and payments of penalties for terminating the lease if the lease term reflects the exercise of a termination option. | |||
To determine the present value of future lease payments, the Group discounts the lease payments using the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. The incremental borrowing rate reflects the rate at which the Group could borrow an amount similar to the value of the right-of-use asset in a similar economic environment. At year- end, the average annual incremental borrowing rate applied to discount remaining lease payments for existing lease agreements is 6.9%. | |||
The Group determines the lease term as the non-cancellable period of the lease, together with the periods covered by an option to extend the lease, if it is reasonably certain to be exercised, and periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Group has some lease contracts for which the lease term is cancellable with only a short notification period (\u201cevergreen leases\u201d). Management uses judgement to evaluate the lease term for leases with extension or termination options, and for leases with a short notification period. Management estimates the lease term based on overall strategy and business development plans as well as contract specific facts and circumstances. | |||
At 31\u00a0December 2025, the weighted average residual lease term for lease contracts is 2.9 years (residual terms vary between 0.1\u20137.7 years). | |||
Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets comprises the initial measurement of the corresponding lease liability, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful life of the underlying asset. | |||
Lease liabilities are measured at amortized cost. The carrying amount of lease liabilities is increased to reflect the interest on the lease liability and decreased for the lease payments made. Interest expenses related to the lease liabilities are recognized in profit or loss. The carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term or in lease payments, or a change in the Group\u2019s assessment of an option to purchase the underlying asset. | |||
The Group applies the recognition exemption provided for leases. Lease payments for leases of low value assets and short-term leases (less than 12 months) are recognized in the income statement on a straight- line basis. The low value assets comprise IT equipment and office furniture. |
The Group has 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 the lease liability. Non-lease components are separated from lease payments based on fair market value. If such information is not readily available, management judgment is applied in estimating the value. | |||
The Group presents the payment of the principal portion of the lease liability in the cash flows from financing activities and the interest portion in the cash flows from operating activities. Lease payments related to low value assets and short-term leases as well as variable lease payments that are not included in the lease liability are also presented in the cash flow from 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. 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. | |||
The Group has sublease agreements for certain office premises originally leased under head lease contracts. The Group accounts for subleases by classifying them with reference to the right-of-use asset arising from the head lease. Subleases are classified as finance leases if substantially all the risks and rewards associated with the right-of-use asset have been transferred to the sub-lessee. If not, they are classified as operating subleases. For finance subleases, the right-of-use asset is derecognized and a net investment in the sublease is recognized. The lease payments are disclosed as amortization of the net investment in the lease and interest income. For operating subleases, the right-of-use asset remains on the balance sheet and lease income is recognized on a straight-line basis. |
EUR million | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 |
Depreciation expenses of right-of-use assets | -35.2 | -35.9 |
Impairment losses | -2.8 | \u2014 |
Other operating income and expenses | ||
Income from subleasing right-of-use assets | 3.0 | 0.7 |
Net gain on lease termination | 0.4 | 0.6 |
Variable lease payments | -3.4 | -4.0 |
Short-term leases and low value leases | -1.8 | -3.1 |
Financial income and expenses | ||
Finance income on the net investment in the sublease | 0.1 | \u2014 |
Interest expense on lease liabilities | -5.9 | -6.0 |
Impact on income statement, net |
EUR million | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 |
Income received from operating subleases (operating activities) | 1.4 | 0.7 |
Interest received from finance subleases (operating activities) | 0.1 | 0.1 |
Principal received from finance subleases (investing activities) | 1.0 | 0.8 |
Interest paid (operating activities) | -9.4 | -11.6 |
Principal paid (financing activities) | -48.5 | -56.6 |
EUR million | Buildings | Machinery and equipment | Total |
1\u00a0Jan\u00a02025 | 156.2 | 19.6 | 175.8 |
Additions 1) | 23.8 | 6.9 | 30.7 |
Terminations | -8.9 | -1.3 | -10.2 |
Depreciation 2) | -33.7 | -7.0 | -40.7 |
Impairment3) | -2.8 | \u2014 | -2.8 |
Classified as held for sale | -83.8 | -8.7 | -92.5 |
Translation differences | 3.0 | 0.3 | 3.3 |
31\u00a0Dec\u00a02025 | 53.9 | 9.7 | 63.6 |
1\u00a0Jan\u00a02024 | 177.0 | 18.9 | 195.9 |
Additions 1) | 62.4 | 12.6 | 75.0 |
Terminations | -29.9 | -2.5 | -32.4 |
Depreciation 2) | -48.7 | -9.3 | -58.0 |
Impairment3) | -0.6 | \u2014 | -0.6 |
Other | 0.0 | \u2014 | 0.0 |
Translation differences | -3.9 | -0.2 | -4.1 |
31\u00a0Dec\u00a02024 | 156.2 | 19.6 | 175.8 |
EUR million | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 |
Current | 32.4 | 50.5 |
Non-current | 43.0 | 142.6 |
Total | 75.4 | 193.0 |
EUR million | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 |
Current | 1.4 | 1.4 |
Non-current | 2.1 | \u2014 |
Total | 3.6 | 1.4 |
EUR million | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 |
Within one year | 1.5 | 1.4 |
One to two years | 1.2 | \u2014 |
Two to three years | 1.1 | \u2014 |
Total undiscounted lease receivable | 3.9 | 1.4 |
Unearned finance income | -0.3 | 0.0 |
Net investment in leases | 3.6 | 1.4 |
ACCOUNTING POLICIES | |||
The Group as a lessee | |||
The Group assesses whether a contract is, or contains, a lease at inception of the contract. The Group recognizes a right-of-use asset and a corresponding lease liability at the commencement date of a lease. Initially, the lease liability is measured at the present value of the future lease payments to be made over the lease period. The lease payments include fixed payments, less any lease incentives receivable, variable lease payments that depend on an index or rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option if it is reasonably certain to be exercised and payments of penalties for terminating the lease if the lease term reflects the exercise of a termination option. | |||
To determine the present value of future lease payments, the Group discounts the lease payments using the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. The incremental borrowing rate reflects the rate at which the Group could borrow an amount similar to the value of the right-of-use asset in a similar economic environment. At year- end, the average annual incremental borrowing rate applied to discount remaining lease payments for existing lease agreements is 6.9%. | |||
The Group determines the lease term as the non-cancellable period of the lease, together with the periods covered by an option to extend the lease, if it is reasonably certain to be exercised, and periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Group has some lease contracts for which the lease term is cancellable with only a short notification period (\u201cevergreen leases\u201d). Management uses judgement to evaluate the lease term for leases with extension or termination options, and for leases with a short notification period. Management estimates the lease term based on overall strategy and business development plans as well as contract specific facts and circumstances. | |||
At 31\u00a0December 2025, the weighted average residual lease term for lease contracts is 2.9 years (residual terms vary between 0.1\u20137.7 years). | |||
Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets comprises the initial measurement of the corresponding lease liability, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful life of the underlying asset. | |||
Lease liabilities are measured at amortized cost. The carrying amount of lease liabilities is increased to reflect the interest on the lease liability and decreased for the lease payments made. Interest expenses related to the lease liabilities are recognized in profit or loss. The carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term or in lease payments, or a change in the Group\u2019s assessment of an option to purchase the underlying asset. | |||
The Group applies the recognition exemption provided for leases. Lease payments for leases of low value assets and short-term leases (less than 12 months) are recognized in the income statement on a straight- line basis. The low value assets comprise IT equipment and office furniture. |
The Group has 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 the lease liability. Non-lease components are separated from lease payments based on fair market value. If such information is not readily available, management judgment is applied in estimating the value. | |||
The Group presents the payment of the principal portion of the lease liability in the cash flows from financing activities and the interest portion in the cash flows from operating activities. Lease payments related to low value assets and short-term leases as well as variable lease payments that are not included in the lease liability are also presented in the cash flow from 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. 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. | |||
The Group has sublease agreements for certain office premises originally leased under head lease contracts. The Group accounts for subleases by classifying them with reference to the right-of-use asset arising from the head lease. Subleases are classified as finance leases if substantially all the risks and rewards associated with the right-of-use asset have been transferred to the sub-lessee. If not, they are classified as operating subleases. For finance subleases, the right-of-use asset is derecognized and a net investment in the sublease is recognized. The lease payments are disclosed as amortization of the net investment in the lease and interest income. For operating subleases, the right-of-use asset remains on the balance sheet and lease income is recognized on a straight-line basis. |
ACCOUNTING POLICIES | |||
Trade receivables are initially recognised at fair value and subsequently at amortized cost less expected credit loss allowance (ECL). Tieto has elected to use the practical expedient and calculate lifetime ECL based on a pre-defined allowance matrix with customer segment specific credit characteristics, based on the following criteria: | |||
\u2022 Country group (Finland, Sweden, Norway, other European Union countries, other countries) \u2022 Customer industry group (financial services, public healthcare & welfare, industrial customer services) \u2022 Balance due status (not yet due, overdue 1\u20137 days, 8\u201330 days, 31\u201360 days, 61\u201390 days, over 90 days) | |||
Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. Default is defined as 90 days past due or a write off event, due to inability to collect debt. | |||
For each customer segment, the ECL rate (expressed as a percentage) indicates the historical average defaults identified during the past three years and also the Group\u2019s assessment of the possible impact from changes in the overall economic environment in which its customers operate. These collective allowances can be increased if the customer has filed for bankruptcy but has not yet registered the fact or if there are any facts or circumstances indicating that the customer\u2019s credit risk is above industry/country average. | |||
When calculating ECL for contract assets, Tieto uses the ECL rate set for \u201cnot yet due\u201d invoices in the allowance matrix. |
Trade receivables are permanently written off when there is no reasonable expectation of recovery. Subsequent recoveries of amounts previously written off are credited to the 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 their fair values due to their short-term nature. | |||
% | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 |
Not yet due | 0.01% | 0.01% |
Overdue 1\u20137 days | 0.01% | 0.01% |
Overdue 8\u201330 days | 1.70% | 1.74% |
Overdue 31\u201360 days | 3.41% | 2.82% |
Overdue 61\u201390 days | 5.92% | 4.90% |
Overdue over 90 days | 60.00% | 60.00% |
EUR million | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 |
Non-current | ||
Prepaid expenses and accrued income | 4.2 | 19.4 |
Finance lease receivables | 2.1 | \u2014 |
Other interest-bearing receivables 1) | 0.2 | 14.7 |
Other | 4.3 | 5.7 |
Total | 10.9 | 39.8 |
Current | ||
Trade receivables at amortized cost | 217.8 | 391.8 |
Prepaid expenses and accrued income | ||
Contract assets | 25.1 | 50.4 |
License fees | 17.0 | 46.5 |
Other prepaid expenses and accrued income | 9.3 | 34.4 |
Finance lease receivables | 1.4 | 1.4 |
Other interest-bearing receivables | 0.2 | 14.5 |
Other2) | 18.2 | 11.8 |
Total | 288.9 | 550.7 |
EUR million | 2025 | 2024 |
Contract assets | 25.1 | 50.4 |
Loss allowance | -0.0 | -0.0 |
Net contract assets | 25.1 | 50.4 |
Gross trade receivables | Loss allowance | Net trade receivables | Gross trade receivables | Loss allowance | Net trade receivables | |
EUR million | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 |
Not yet due | 185.1 | -0.0 | 185.0 | 342.0 | -0.0 | 341.9 |
Overdue 1\u20137 days | 21.6 | -0.0 | 21.5 | 30.7 | -0.0 | 30.7 |
Overdue 8\u201330 days | 3.9 | -0.1 | 3.8 | 7.5 | -0.3 | 7.3 |
Overdue 31\u201360 days | 3.4 | -0.1 | 3.3 | 4.7 | -0.2 | 4.5 |
Overdue 61\u201390 days | 1.4 | -0.1 | 1.3 | 4.3 | -0.6 | 3.7 |
Overdue over 90 days | 6.5 | -3.7 | 2.9 | 7.3 | -3.5 | 3.7 |
Total | 221.9 | -4.1 | 217.8 | 396.4 | -4.7 | 391.8 |
EUR million | 2025 | 2024 |
1 Jan | 4.7 | 2.8 |
Translation differences | -0.0 | -0.0 |
Changes in loss allowances recognized | 2.8 | 2.0 |
Amounts written off as uncollectible | -0.2 | -0.1 |
Classified as held for sale | -3.1 | \u2014 |
31 Dec | 4.1 | 4.7 |
ACCOUNTING POLICIES | |||
Trade receivables are initially recognised at fair value and subsequently at amortized cost less expected credit loss allowance (ECL). Tieto has elected to use the practical expedient and calculate lifetime ECL based on a pre-defined allowance matrix with customer segment specific credit characteristics, based on the following criteria: | |||
\u2022 Country group (Finland, Sweden, Norway, other European Union countries, other countries) \u2022 Customer industry group (financial services, public healthcare & welfare, industrial customer services) \u2022 Balance due status (not yet due, overdue 1\u20137 days, 8\u201330 days, 31\u201360 days, 61\u201390 days, over 90 days) | |||
Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. Default is defined as 90 days past due or a write off event, due to inability to collect debt. | |||
For each customer segment, the ECL rate (expressed as a percentage) indicates the historical average defaults identified during the past three years and also the Group\u2019s assessment of the possible impact from changes in the overall economic environment in which its customers operate. These collective allowances can be increased if the customer has filed for bankruptcy but has not yet registered the fact or if there are any facts or circumstances indicating that the customer\u2019s credit risk is above industry/country average. | |||
When calculating ECL for contract assets, Tieto uses the ECL rate set for \u201cnot yet due\u201d invoices in the allowance matrix. |
Trade receivables are permanently written off when there is no reasonable expectation of recovery. Subsequent recoveries of amounts previously written off are credited to the 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 their fair values due to their short-term nature. | |||
Gross trade receivables | Loss allowance | Net trade receivables | Gross trade receivables | Loss allowance | Net trade receivables | |
EUR million | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 |
Not yet due | 185.1 | -0.0 | 185.0 | 342.0 | -0.0 | 341.9 |
Overdue 1\u20137 days | 21.6 | -0.0 | 21.5 | 30.7 | -0.0 | 30.7 |
Overdue 8\u201330 days | 3.9 | -0.1 | 3.8 | 7.5 | -0.3 | 7.3 |
Overdue 31\u201360 days | 3.4 | -0.1 | 3.3 | 4.7 | -0.2 | 4.5 |
Overdue 61\u201390 days | 1.4 | -0.1 | 1.3 | 4.3 | -0.6 | 3.7 |
Overdue over 90 days | 6.5 | -3.7 | 2.9 | 7.3 | -3.5 | 3.7 |
Total | 221.9 | -4.1 | 217.8 | 396.4 | -4.7 | 391.8 |
EUR million | 2025 | 2024 |
1 Jan | 4.7 | 2.8 |
Translation differences | -0.0 | -0.0 |
Changes in loss allowances recognized | 2.8 | 2.0 |
Amounts written off as uncollectible | -0.2 | -0.1 |
Classified as held for sale | -3.1 | \u2014 |
31 Dec | 4.1 | 4.7 |
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 | |||
A 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 warranties | |||
The Group's warranties provide assurance that the delivery will function as expected and in accordance with contract specifications. Provisions related to these assurance-type warranties are recognized during the project and used during the warranty period. | |||
Other provisions | |||
Other provisions include provisions for loss making contracts which are recognized for any unavoidable net loss arising from the contract as well as employee related provisions other than restructuring. |
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 | Provision for warranties | Other provisions | Total |
1\u00a0Jan\u00a02025 | 19.4 | 1.0 | 2.9 | 23.3 |
Translation differences | 0.5 | 0.0 | 0.0 | 0.5 |
Classified as held for sale | -9.4 | -0.1 | -1.0 | -10.5 |
Increases in provisions | 49.6 | 0.1 | 6.3 | 56.0 |
Use of provisions | -31.3 | 0.0 | -0.6 | -31.9 |
Reversals and changes in estimates | -3.2 | -0.2 | -3.7 | -7.1 |
31\u00a0Dec 2025 | 25.7 | 0.7 | 3.9 | 30.3 |
of which | ||||
Non-current | 0.4 | 0.0 | 2.4 | 2.8 |
Current | 25.2 | 0.7 | 1.5 | 27.5 |
Total | 25.7 | 0.7 | 3.9 | 30.3 |
1\u00a0Jan\u00a02024 | 12.0 | 1.2 | 4.0 | 17.2 |
Translation differences | -0.4 | 0.0 | -0.1 | -0.4 |
Increases in provisions | 30.0 | 4.0 | 0.7 | 34.7 |
Use of provisions | -21.6 | -3.9 | -1.4 | -26.9 |
Reversals and changes in estimates | -0.6 | -0.3 | -0.3 | -1.2 |
31\u00a0Dec\u00a02024 | 19.4 | 1.0 | 2.9 | 23.3 |
of which | ||||
Non-current | 1.3 | 0.0 | 1.3 | 2.6 |
Current | 18.2 | 1.0 | 1.6 | 20.7 |
Total | 19.4 | 1.0 | 2.9 | 23.3 |
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 | |||
A 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 warranties | |||
The Group's warranties provide assurance that the delivery will function as expected and in accordance with contract specifications. Provisions related to these assurance-type warranties are recognized during the project and used during the warranty period. | |||
Other provisions | |||
Other provisions include provisions for loss making contracts which are recognized for any unavoidable net loss arising from the contract as well as employee related provisions other than restructuring. |
ACCOUNTING POLICIES | |||
Trade and other payables are presented as current liabilities if settlement is due 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 2025 | 31\u00a0Dec\u00a02024 |
Non-current | ||
Contract liabilities | 0.2 | 2.4 |
Accruals | 6.1 | 3.7 |
Total | 6.3 | 6.1 |
Current | ||
Trade payables | 86.4 | 174.8 |
Contract liabilities | 51.4 | 49.6 |
Accrued liabilities | ||
Employee-related accruals | 121.9 | 186.9 |
Interest | 4.5 | 12.1 |
Other accrued expenses | 27.5 | 44.1 |
Value added tax liabilities | 25.4 | 49.2 |
Payroll tax liabilities | 17.9 | 28.6 |
Total | 335.0 | 545.4 |
ACCOUNTING POLICIES | |||
Trade and other payables are presented as current liabilities if settlement is due 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, net | Estimated cash flows | Leases | Total foreign exchange exposure | External foreign exchange hedges | Transaction exposure sensitivity 1) | Foreign exchange hedge sensitivity 1) | Net effect gain/ loss |
SEK | ||||||||
31\u00a0Dec 2025 | -157.6 | 24.9 | \u2014 | -132.7 | 136.9 | 15.8 | -13.7 | 2.1 |
31\u00a0Dec\u00a02024 | -122.1 | 19.8 | \u2014 | -102.2 | 102.3 | 12.2 | -10.2 | 2.0 |
NOK | ||||||||
31\u00a0Dec 2025 | -36.5 | 15.2 | \u2014 | -21.4 | 14.4 | 3.7 | -1.4 | 2.2 |
31\u00a0Dec\u00a02024 | -16.9 | 15.3 | \u2014 | -1.6 | 3.0 | 1.7 | -0.3 | 1.4 |
PLN | ||||||||
31\u00a0Dec 2025 | -2.0 | -16.8 | -1.0 | -19.8 | 12.4 | 0.3 | -1.2 | -0.9 |
31\u00a0Dec\u00a02024 | 1.4 | -11.5 | 0.7 | -9.4 | 9.5 | -0.2 | -1.0 | -1.2 |
CZK | ||||||||
31\u00a0Dec 2025 | -3.3 | -18.3 | -1.1 | -22.6 | 21.8 | 0.4 | -2.2 | -1.7 |
31\u00a0Dec\u00a02024 | -14.0 | -28.8 | 9.8 | -33.0 | 43.2 | 0.4 | -4.3 | -3.9 |
INR | ||||||||
31\u00a0Dec 2025 | \u2014 | -23.8 | \u2014 | -23.8 | 23.8 | \u2014 | -2.4 | -2.4 |
31\u00a0Dec\u00a02024 | \u2014 | -27.2 | \u2014 | -27.2 | 27.1 | \u2014 | -2.7 | -2.7 |
USD | ||||||||
31\u00a0Dec 2025 | 80.5 | 13.5 | \u2014 | 94.0 | -91.6 | -8.1 | 9.2 | 1.1 |
31\u00a0Dec\u00a02024 | 2.4 | 0.2 | -0.1 | 2.4 | -2.6 | -0.2 | 0.3 | \u2014 |
Other | ||||||||
31\u00a0Dec 2025 | -10.2 | \u2014 | -0.4 | -10.7 | 10.9 | 1.1 | -1.1 | \u2014 |
31\u00a0Dec\u00a02024 | -6.2 | \u2014 | 0.6 | -5.6 | 3.0 | 0.6 | -0.3 | 0.3 |
Amount | Average rate, % | Rate sensitivity1) | |||
EUR million | Fixed rate | Floating rate | Fixed rate | Floating rate | |
31\u00a0Dec\u00a02025 | |||||
Cash and cash equivalents2) | 127.6 | 18.5 | 0.8 | 0.6 | 1.0 |
Other loans | \u2014 | 630.3 | \u2014 | 3.1 | -6.3 |
Other loan receivables | 0.5 | \u2014 | 3.0 | \u2014 | \u2014 |
Leasing | -71.9 | \u2014 | 6.7 | \u2014 | 0.7 |
Interest rate derivatives3) | -140.0 | 140.0 | 3.2 | 2.1 | 1.4 |
31\u00a0Dec\u00a02024 | |||||
Bond4) | -299.8 | \u2014 | 2.0 | \u2014 | \u2014 |
Cash and cash equivalents2) | 185.4 | 9.7 | \u2014 | 0.3 | 0.1 |
Other loans | -42.8 | -562.0 | 4.7 | 4.6 | -5.6 |
Other loan receivables | 29.2 | \u2014 | 4.5 | \u2014 | \u2014 |
Leasing | -191.6 | \u2014 | 6.2 | \u2014 | -1.9 |
Interest rate derivatives3) | -140.0 | 140.0 | 3.2 | 3.5 | 1.4 |
31\u00a0Dec 2025 | Amount drawn | Amount available | Maturity structure | |||||
EUR million | 2026 | 2027 | 2028 | 2029 | 2030 | 2031\u2013 | ||
Loans | ||||||||
Revolving credit facility | \u2014 | 250.0 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
European Investment Bank | 26.2 | \u2014 | 13.1 | 13.1 | \u2014 | \u2014 | \u2014 | \u2014 |
Bridge loan | 300.0 | \u2014 | \u2014 | 300.0 | \u2014 | \u2014 | \u2014 | \u2014 |
OP Corporate Bank | 174.0 | \u2014 | \u2014 | \u2014 | 174.0 | \u2014 | \u2014 | \u2014 |
Nordea and SEB | 130.0 | \u2014 | \u2014 | 130.0 | \u2014 | \u2014 | \u2014 | \u2014 |
Other loans | 0.9 | \u2014 | 0.9 | 0.1 | \u2014 | \u2014 | \u2014 | \u2014 |
631.1 | 250.0 | 14.0 | 443.1 | 174.0 | \u2014 | \u2014 | \u2014 | |
Interest payments | \u2014 | \u2014 | 21.6 | 16.7 | 7.1 | \u2014 | \u2014 | \u2014 |
Trade payables, outflow | 86.4 | \u2014 | 86.4 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Lease liabilities | 82.2 | \u2014 | 35.9 | 23.3 | 16.2 | 2.7 | 1.4 | 2.6 |
Derivative liabilities | ||||||||
Foreign exchange forward contracts | \u2014 | \u2014 | 1.6 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Interest rate swaps | \u2014 | \u2014 | 1.6 | 1.6 | 1.2 | \u2014 | \u2014 | \u2014 |
Total | 799.6 | 250.0 | 161.1 | 484.8 | 198.5 | 2.7 | 1.4 | 2.6 |
31\u00a0Dec\u00a02024 | Amount drawn | Amount available | Maturity structure | |||||
EUR million | 2025 | 2026 | 2027 | 2028 | 2029 | 2030\u2013 | ||
Loans | ||||||||
Bond | 300.0 | \u2014 | 300.0 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Revolving credit facility | \u2014 | 250.0 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
European Investment Bank | 39.2 | \u2014 | 13.1 | 13.1 | 13.1 | \u2014 | \u2014 | \u2014 |
OP Corporate Bank | 174.0 | \u2014 | \u2014 | \u2014 | \u2014 | 174.0 | \u2014 | \u2014 |
Nordea | 100.0 | \u2014 | \u2014 | 100.0 | \u2014 | \u2014 | \u2014 | \u2014 |
Nordea and SEB | 250.0 | \u2014 | \u2014 | \u2014 | 250.0 | \u2014 | \u2014 | \u2014 |
Other loans | 42.8 | \u2014 | 22.8 | 15.4 | 4.2 | 0.4 | \u2014 | \u2014 |
906.0 | 250.0 | 335.9 | 128.5 | 267.2 | 174.4 | \u2014 | \u2014 | |
Interest payments | \u2014 | \u2014 | 33.0 | 25.7 | 20.7 | 8.3 | \u2014 | \u2014 |
Trade payables, outflow | 174.8 | \u2014 | 174.8 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Lease liabilities | 223.7 | \u2014 | 58.5 | 44.5 | 34.7 | 27.5 | 11.6 | 46.9 |
Derivative liabilities | ||||||||
Foreign exchange forward contracts | \u2014 | \u2014 | 7.1 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Interest rate swaps | \u2014 | \u2014 | \u2014 | \u2014 | 3.6 | 12.9 | \u2014 | \u2014 |
Total | 1\u00a0304.6 | 250.0 | 609.3 | 198.7 | 326.2 | 223.1 | 11.6 | 46.9 |
31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 | |
Net debt1) | 555.5 | 871.8 |
12 months EBITDA2) | 251.8 | 393.6 |
Net debt/EBITDA | 2.2 | 2.2 |
EUR million | Loans and Cash, net | Estimated cash flows | Leases | Total foreign exchange exposure | External foreign exchange hedges | Transaction exposure sensitivity 1) | Foreign exchange hedge sensitivity 1) | Net effect gain/ loss |
SEK | ||||||||
31\u00a0Dec 2025 | -157.6 | 24.9 | \u2014 | -132.7 | 136.9 | 15.8 | -13.7 | 2.1 |
31\u00a0Dec\u00a02024 | -122.1 | 19.8 | \u2014 | -102.2 | 102.3 | 12.2 | -10.2 | 2.0 |
NOK | ||||||||
31\u00a0Dec 2025 | -36.5 | 15.2 | \u2014 | -21.4 | 14.4 | 3.7 | -1.4 | 2.2 |
31\u00a0Dec\u00a02024 | -16.9 | 15.3 | \u2014 | -1.6 | 3.0 | 1.7 | -0.3 | 1.4 |
PLN | ||||||||
31\u00a0Dec 2025 | -2.0 | -16.8 | -1.0 | -19.8 | 12.4 | 0.3 | -1.2 | -0.9 |
31\u00a0Dec\u00a02024 | 1.4 | -11.5 | 0.7 | -9.4 | 9.5 | -0.2 | -1.0 | -1.2 |
CZK | ||||||||
31\u00a0Dec 2025 | -3.3 | -18.3 | -1.1 | -22.6 | 21.8 | 0.4 | -2.2 | -1.7 |
31\u00a0Dec\u00a02024 | -14.0 | -28.8 | 9.8 | -33.0 | 43.2 | 0.4 | -4.3 | -3.9 |
INR | ||||||||
31\u00a0Dec 2025 | \u2014 | -23.8 | \u2014 | -23.8 | 23.8 | \u2014 | -2.4 | -2.4 |
31\u00a0Dec\u00a02024 | \u2014 | -27.2 | \u2014 | -27.2 | 27.1 | \u2014 | -2.7 | -2.7 |
USD | ||||||||
31\u00a0Dec 2025 | 80.5 | 13.5 | \u2014 | 94.0 | -91.6 | -8.1 | 9.2 | 1.1 |
31\u00a0Dec\u00a02024 | 2.4 | 0.2 | -0.1 | 2.4 | -2.6 | -0.2 | 0.3 | \u2014 |
Other | ||||||||
31\u00a0Dec 2025 | -10.2 | \u2014 | -0.4 | -10.7 | 10.9 | 1.1 | -1.1 | \u2014 |
31\u00a0Dec\u00a02024 | -6.2 | \u2014 | 0.6 | -5.6 | 3.0 | 0.6 | -0.3 | 0.3 |
Amount | Average rate, % | Rate sensitivity1) | |||
EUR million | Fixed rate | Floating rate | Fixed rate | Floating rate | |
31\u00a0Dec\u00a02025 | |||||
Cash and cash equivalents2) | 127.6 | 18.5 | 0.8 | 0.6 | 1.0 |
Other loans | \u2014 | 630.3 | \u2014 | 3.1 | -6.3 |
Other loan receivables | 0.5 | \u2014 | 3.0 | \u2014 | \u2014 |
Leasing | -71.9 | \u2014 | 6.7 | \u2014 | 0.7 |
Interest rate derivatives3) | -140.0 | 140.0 | 3.2 | 2.1 | 1.4 |
31\u00a0Dec\u00a02024 | |||||
Bond4) | -299.8 | \u2014 | 2.0 | \u2014 | \u2014 |
Cash and cash equivalents2) | 185.4 | 9.7 | \u2014 | 0.3 | 0.1 |
Other loans | -42.8 | -562.0 | 4.7 | 4.6 | -5.6 |
Other loan receivables | 29.2 | \u2014 | 4.5 | \u2014 | \u2014 |
Leasing | -191.6 | \u2014 | 6.2 | \u2014 | -1.9 |
Interest rate derivatives3) | -140.0 | 140.0 | 3.2 | 3.5 | 1.4 |
EUR million | Loans and Cash, net | Estimated cash flows | Leases | Total foreign exchange exposure | External foreign exchange hedges | Transaction exposure sensitivity 1) | Foreign exchange hedge sensitivity 1) | Net effect gain/ loss |
SEK | ||||||||
31\u00a0Dec 2025 | -157.6 | 24.9 | \u2014 | -132.7 | 136.9 | 15.8 | -13.7 | 2.1 |
31\u00a0Dec\u00a02024 | -122.1 | 19.8 | \u2014 | -102.2 | 102.3 | 12.2 | -10.2 | 2.0 |
NOK | ||||||||
31\u00a0Dec 2025 | -36.5 | 15.2 | \u2014 | -21.4 | 14.4 | 3.7 | -1.4 | 2.2 |
31\u00a0Dec\u00a02024 | -16.9 | 15.3 | \u2014 | -1.6 | 3.0 | 1.7 | -0.3 | 1.4 |
PLN | ||||||||
31\u00a0Dec 2025 | -2.0 | -16.8 | -1.0 | -19.8 | 12.4 | 0.3 | -1.2 | -0.9 |
31\u00a0Dec\u00a02024 | 1.4 | -11.5 | 0.7 | -9.4 | 9.5 | -0.2 | -1.0 | -1.2 |
CZK | ||||||||
31\u00a0Dec 2025 | -3.3 | -18.3 | -1.1 | -22.6 | 21.8 | 0.4 | -2.2 | -1.7 |
31\u00a0Dec\u00a02024 | -14.0 | -28.8 | 9.8 | -33.0 | 43.2 | 0.4 | -4.3 | -3.9 |
INR | ||||||||
31\u00a0Dec 2025 | \u2014 | -23.8 | \u2014 | -23.8 | 23.8 | \u2014 | -2.4 | -2.4 |
31\u00a0Dec\u00a02024 | \u2014 | -27.2 | \u2014 | -27.2 | 27.1 | \u2014 | -2.7 | -2.7 |
USD | ||||||||
31\u00a0Dec 2025 | 80.5 | 13.5 | \u2014 | 94.0 | -91.6 | -8.1 | 9.2 | 1.1 |
31\u00a0Dec\u00a02024 | 2.4 | 0.2 | -0.1 | 2.4 | -2.6 | -0.2 | 0.3 | \u2014 |
Other | ||||||||
31\u00a0Dec 2025 | -10.2 | \u2014 | -0.4 | -10.7 | 10.9 | 1.1 | -1.1 | \u2014 |
31\u00a0Dec\u00a02024 | -6.2 | \u2014 | 0.6 | -5.6 | 3.0 | 0.6 | -0.3 | 0.3 |
31\u00a0Dec 2025 | Amount drawn | Amount available | Maturity structure | |||||
EUR million | 2026 | 2027 | 2028 | 2029 | 2030 | 2031\u2013 | ||
Loans | ||||||||
Revolving credit facility | \u2014 | 250.0 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
European Investment Bank | 26.2 | \u2014 | 13.1 | 13.1 | \u2014 | \u2014 | \u2014 | \u2014 |
Bridge loan | 300.0 | \u2014 | \u2014 | 300.0 | \u2014 | \u2014 | \u2014 | \u2014 |
OP Corporate Bank | 174.0 | \u2014 | \u2014 | \u2014 | 174.0 | \u2014 | \u2014 | \u2014 |
Nordea and SEB | 130.0 | \u2014 | \u2014 | 130.0 | \u2014 | \u2014 | \u2014 | \u2014 |
Other loans | 0.9 | \u2014 | 0.9 | 0.1 | \u2014 | \u2014 | \u2014 | \u2014 |
631.1 | 250.0 | 14.0 | 443.1 | 174.0 | \u2014 | \u2014 | \u2014 | |
Interest payments | \u2014 | \u2014 | 21.6 | 16.7 | 7.1 | \u2014 | \u2014 | \u2014 |
Trade payables, outflow | 86.4 | \u2014 | 86.4 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Lease liabilities | 82.2 | \u2014 | 35.9 | 23.3 | 16.2 | 2.7 | 1.4 | 2.6 |
Derivative liabilities | ||||||||
Foreign exchange forward contracts | \u2014 | \u2014 | 1.6 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Interest rate swaps | \u2014 | \u2014 | 1.6 | 1.6 | 1.2 | \u2014 | \u2014 | \u2014 |
Total | 799.6 | 250.0 | 161.1 | 484.8 | 198.5 | 2.7 | 1.4 | 2.6 |
31\u00a0Dec\u00a02024 | Amount drawn | Amount available | Maturity structure | |||||
EUR million | 2025 | 2026 | 2027 | 2028 | 2029 | 2030\u2013 | ||
Loans | ||||||||
Bond | 300.0 | \u2014 | 300.0 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Revolving credit facility | \u2014 | 250.0 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
European Investment Bank | 39.2 | \u2014 | 13.1 | 13.1 | 13.1 | \u2014 | \u2014 | \u2014 |
OP Corporate Bank | 174.0 | \u2014 | \u2014 | \u2014 | \u2014 | 174.0 | \u2014 | \u2014 |
Nordea | 100.0 | \u2014 | \u2014 | 100.0 | \u2014 | \u2014 | \u2014 | \u2014 |
Nordea and SEB | 250.0 | \u2014 | \u2014 | \u2014 | 250.0 | \u2014 | \u2014 | \u2014 |
Other loans | 42.8 | \u2014 | 22.8 | 15.4 | 4.2 | 0.4 | \u2014 | \u2014 |
906.0 | 250.0 | 335.9 | 128.5 | 267.2 | 174.4 | \u2014 | \u2014 | |
Interest payments | \u2014 | \u2014 | 33.0 | 25.7 | 20.7 | 8.3 | \u2014 | \u2014 |
Trade payables, outflow | 174.8 | \u2014 | 174.8 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Lease liabilities | 223.7 | \u2014 | 58.5 | 44.5 | 34.7 | 27.5 | 11.6 | 46.9 |
Derivative liabilities | ||||||||
Foreign exchange forward contracts | \u2014 | \u2014 | 7.1 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Interest rate swaps | \u2014 | \u2014 | \u2014 | \u2014 | 3.6 | 12.9 | \u2014 | \u2014 |
Total | 1\u00a0304.6 | 250.0 | 609.3 | 198.7 | 326.2 | 223.1 | 11.6 | 46.9 |
31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 | |
Net debt1) | 555.5 | 871.8 |
12 months EBITDA2) | 251.8 | 393.6 |
Net debt/EBITDA | 2.2 | 2.2 |
31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 | |
Net debt1) | 555.5 | 871.8 |
12 months EBITDA2) | 251.8 | 393.6 |
Net debt/EBITDA | 2.2 | 2.2 |
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 current if it is payable within 12 months, otherwise it is classified as non-current. |
EUR million | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 |
Non-current | ||
Other loans | 616.3 | 569.6 |
Lease liabilities | 43.0 | 142.6 |
Total | 659.3 | 712.1 |
Current | ||
Bonds | \u2014 | 299.8 |
Other loans | 14.0 | 35.2 |
Lease liabilities | 32.4 | 50.5 |
Total | 46.4 | 385.4 |
Total Interest bearing loans and borrowings | 705.6 | 1\u00a0097.5 |
EUR million | Non-current interest- bearing loans | Current interest- bearing loans | Lease liabilities | Total | |
1\u00a0Jan\u00a02025 | 569.6 | 334.9 | 193.0 | 1\u00a0097.5 | |
Cash flows | 64.3 | -300.0 | -41.6 | -277.2 | |
Non-cash changes | Foreign exchange gains and losses | 0.7 | 0.7 | 2.5 | 3.8 |
Reclassification | \u2014 | \u2014 | \u2014 | \u2014 | |
Classified as held for sale | -17.6 | -21.6 | -97.7 | -136.8 | |
New lease contracts | \u2014 | \u2014 | 30.2 | 30.2 | |
De-recognized contracts | \u2014 | \u2014 | -11.0 | -11.0 | |
Other | -0.7 | -0.1 | \u2014 | -0.8 | |
31\u00a0Dec 2025 | 616.3 | 14.0 | 75.4 | 705.6 | |
1\u00a0Jan\u00a02024 | 539.5 | 411.9 | 211.7 | 1\u00a0163.2 | |
Cash flows | 28.2 | -73.9 | -56.6 | -102.3 | |
Non-cash changes | Foreign exchange gains and losses | 0.0 | \u2014 | -4.4 | -4.4 |
Reclassification | 1.8 | -1.8 | \u2014 | \u2014 | |
New lease contracts | 0.2 | 0.9 | 78.7 | 79.7 | |
De-recognized contracts | \u2014 | \u2014 | -36.8 | -36.8 | |
Other | -0.1 | -2.3 | 0.5 | -1.9 | |
31\u00a0Dec\u00a02024 | 569.6 | 334.9 | 193.0 | 1\u00a0097.5 |
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 current if it is payable within 12 months, otherwise it is classified as non-current. |
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 current if it is payable within 12 months, otherwise it is classified as non-current. |
Interest income | Interest expenses | Foreign exchange gains and losses | Other financial income | Other financial expenses | Total | |
EUR million | ||||||
2025 | ||||||
Financial assets | ||||||
Fair value through profit or loss | 0.8 | \u2014 | 16.9 | \u2014 | -1.7 | 16.0 |
Amortized cost | 4.1 | \u2014 | -18.0 | 0.4 | \u2014 | -13.6 |
Financial liabilities | ||||||
Fair value through profit or loss | \u2014 | -0.3 | \u2014 | \u2014 | \u2014 | -0.3 |
Amortized cost | \u2014 | -34.4 | \u2014 | \u2014 | -1.7 | -36.0 |
Net defined benefit obligation | \u2014 | -0.4 | \u2014 | \u2014 | \u2014 | -0.4 |
Total | 4.9 | -35.0 | -1.1 | 0.4 | -3.4 | -34.3 |
2024 | ||||||
Financial assets | ||||||
Fair value through profit or loss | 1.3 | \u2014 | -12.0 | \u2014 | -1.7 | -12.5 |
Amortized cost | 4.9 | \u2014 | 9.5 | 0.1 | \u2014 | 14.5 |
Financial liabilities | ||||||
Fair value through profit or loss | \u2014 | -0.6 | \u2014 | \u2014 | \u2014 | -0.6 |
Amortized cost | \u2014 | -42.7 | \u2014 | \u2014 | -3.6 | -46.3 |
Net defined benefit obligation | \u2014 | -0.3 | \u2014 | \u2014 | \u2014 | -0.3 |
Total | 6.2 | -43.5 | -2.5 | 0.1 | -5.4 | -45.1 |
Interest income | Interest expenses | Foreign exchange gains and losses | Other financial income | Other financial expenses | Total | |
EUR million | ||||||
2025 | ||||||
Financial assets | ||||||
Fair value through profit or loss | 0.8 | \u2014 | 16.9 | \u2014 | -1.7 | 16.0 |
Amortized cost | 4.1 | \u2014 | -18.0 | 0.4 | \u2014 | -13.6 |
Financial liabilities | ||||||
Fair value through profit or loss | \u2014 | -0.3 | \u2014 | \u2014 | \u2014 | -0.3 |
Amortized cost | \u2014 | -34.4 | \u2014 | \u2014 | -1.7 | -36.0 |
Net defined benefit obligation | \u2014 | -0.4 | \u2014 | \u2014 | \u2014 | -0.4 |
Total | 4.9 | -35.0 | -1.1 | 0.4 | -3.4 | -34.3 |
2024 | ||||||
Financial assets | ||||||
Fair value through profit or loss | 1.3 | \u2014 | -12.0 | \u2014 | -1.7 | -12.5 |
Amortized cost | 4.9 | \u2014 | 9.5 | 0.1 | \u2014 | 14.5 |
Financial liabilities | ||||||
Fair value through profit or loss | \u2014 | -0.6 | \u2014 | \u2014 | \u2014 | -0.6 |
Amortized cost | \u2014 | -42.7 | \u2014 | \u2014 | -3.6 | -46.3 |
Net defined benefit obligation | \u2014 | -0.3 | \u2014 | \u2014 | \u2014 | -0.3 |
Total | 6.2 | -43.5 | -2.5 | 0.1 | -5.4 | -45.1 |
Interest income | Interest expenses | Foreign exchange gains and losses | Other financial income | Other financial expenses | Total | |
EUR million | ||||||
2025 | ||||||
Financial assets | ||||||
Fair value through profit or loss | 0.8 | \u2014 | 16.9 | \u2014 | -1.7 | 16.0 |
Amortized cost | 4.1 | \u2014 | -18.0 | 0.4 | \u2014 | -13.6 |
Financial liabilities | ||||||
Fair value through profit or loss | \u2014 | -0.3 | \u2014 | \u2014 | \u2014 | -0.3 |
Amortized cost | \u2014 | -34.4 | \u2014 | \u2014 | -1.7 | -36.0 |
Net defined benefit obligation | \u2014 | -0.4 | \u2014 | \u2014 | \u2014 | -0.4 |
Total | 4.9 | -35.0 | -1.1 | 0.4 | -3.4 | -34.3 |
2024 | ||||||
Financial assets | ||||||
Fair value through profit or loss | 1.3 | \u2014 | -12.0 | \u2014 | -1.7 | -12.5 |
Amortized cost | 4.9 | \u2014 | 9.5 | 0.1 | \u2014 | 14.5 |
Financial liabilities | ||||||
Fair value through profit or loss | \u2014 | -0.6 | \u2014 | \u2014 | \u2014 | -0.6 |
Amortized cost | \u2014 | -42.7 | \u2014 | \u2014 | -3.6 | -46.3 |
Net defined benefit obligation | \u2014 | -0.3 | \u2014 | \u2014 | \u2014 | -0.3 |
Total | 6.2 | -43.5 | -2.5 | 0.1 | -5.4 | -45.1 |
Interest income | Interest expenses | Foreign exchange gains and losses | Other financial income | Other financial expenses | Total | |
EUR million | ||||||
2025 | ||||||
Financial assets | ||||||
Fair value through profit or loss | 0.8 | \u2014 | 16.9 | \u2014 | -1.7 | 16.0 |
Amortized cost | 4.1 | \u2014 | -18.0 | 0.4 | \u2014 | -13.6 |
Financial liabilities | ||||||
Fair value through profit or loss | \u2014 | -0.3 | \u2014 | \u2014 | \u2014 | -0.3 |
Amortized cost | \u2014 | -34.4 | \u2014 | \u2014 | -1.7 | -36.0 |
Net defined benefit obligation | \u2014 | -0.4 | \u2014 | \u2014 | \u2014 | -0.4 |
Total | 4.9 | -35.0 | -1.1 | 0.4 | -3.4 | -34.3 |
2024 | ||||||
Financial assets | ||||||
Fair value through profit or loss | 1.3 | \u2014 | -12.0 | \u2014 | -1.7 | -12.5 |
Amortized cost | 4.9 | \u2014 | 9.5 | 0.1 | \u2014 | 14.5 |
Financial liabilities | ||||||
Fair value through profit or loss | \u2014 | -0.6 | \u2014 | \u2014 | \u2014 | -0.6 |
Amortized cost | \u2014 | -42.7 | \u2014 | \u2014 | -3.6 | -46.3 |
Net defined benefit obligation | \u2014 | -0.3 | \u2014 | \u2014 | \u2014 | -0.3 |
Total | 6.2 | -43.5 | -2.5 | 0.1 | -5.4 | -45.1 |
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 | |||
Financial liabilities at amortized cost | |||
Financial liabilities in 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 the effective interest rate method, taking into account any issue costs and any discount or premium on settlement. The related interest expenses are recognized in profit or loss in financial items, see | |||
Financial assets and liabilities at fair value through profit or loss | |||
Financial assets and liabilities in this category are recognized in the statement of financial position at their fair value with gains or losses resulting from changes in the fair value, being recognized in the income statement. | |||
This category consists mainly 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 23, whereas gains or losses from derivatives, mainly currency forward contracts that relate to operating activities, are included in operating profit. | |||
Contingent consideration related to disposals is classified as a financial asset at fair value through profit or loss. | |||
Trade receivables to be sold via non-recourse arrangements are classified as financial assets at fair value through profit or loss (certain customers). | |||
Other investments include unlisted shares, where 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 is based on three hierarchy levels: | |||
\u2022 Level 1: quoted prices in active markets for given or identical assets or liabilities that the entity can access at the measurement date; \u2022 Level 2: inputs that are observable for the asset or liability, either directly or indirectly; \u2022 Level 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. The fair values of foreign exchange derivatives are calculated according to foreign exchange and interest rates on the closing date. |
EUR million | Note | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 | Fair value hierarchy |
Financial assets at fair value through profit or loss | ||||
Non-current | ||||
Contingent consideration | 30.0 | \u2014 | Level 3 | |
Other financial assets at fair value through profit or loss | 0.5 | 0.5 | Level 3 | |
Non-current derivative receivables | 8.4 | 11.8 | Level 2 | |
Current | ||||
Trade receivables at fair value through profit or loss | 11.7 | 11.1 | Level 2 | |
Current derivative receivables | 3.8 | 2.7 | Level 2 | |
Financial assets at amortized cost | ||||
Non-current | ||||
Other loan receivables, interest-bearing | 0.2 | 14.7 | Level 2 | |
Lease receivables, interest-bearing | 2.1 | \u2014 | Level 2 | |
Current | ||||
Other loan receivables, interest-bearing | 0.2 | 14.5 | Level 2 | |
Lease receivables, interest-bearing | 1.4 | 1.4 | Level 2 | |
Trade receivables | 217.8 | 391.8 | Level 2 | |
Accrued interest income | 0.0 | 0.0 | Level 2 | |
Cash and cash equivalents | 146.2 | 195.1 | Level 2 | |
Total | 422.3 | 643.6 |
EUR million | Note | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 | Fair value hierarchy |
Financial liabilities at fair value through profit or loss | ||||
Non-current derivative liabilities | 12.2 | 16.5 | Level 2 | |
Current derivative liabilities | 1.6 | 7.1 | Level 2 | |
Financial liabilities measured at amortized cost | ||||
Non-current | ||||
Lease liability | 43.0 | 142.6 | Level 2 | |
Other loans | 616.3 | 569.6 | Level 2 | |
Current | ||||
Trade payables | 86.4 | 174.8 | Level 2 | |
Accrued interest | 4.5 | 12.1 | Level 2 | |
Lease liability | 32.4 | 50.5 | Level 2 | |
Bonds1) | \u2014 | 299.8 | Level 1 | |
Other loans | 14.0 | 35.2 | Level 2 | |
Total | 810.3 | 1\u00a0308.1 |
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 | |||
Financial liabilities at amortized cost | |||
Financial liabilities in 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 the effective interest rate method, taking into account any issue costs and any discount or premium on settlement. The related interest expenses are recognized in profit or loss in financial items, see | |||
Financial assets and liabilities at fair value through profit or loss | |||
Financial assets and liabilities in this category are recognized in the statement of financial position at their fair value with gains or losses resulting from changes in the fair value, being recognized in the income statement. | |||
This category consists mainly 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 23, whereas gains or losses from derivatives, mainly currency forward contracts that relate to operating activities, are included in operating profit. | |||
Contingent consideration related to disposals is classified as a financial asset at fair value through profit or loss. | |||
Trade receivables to be sold via non-recourse arrangements are classified as financial assets at fair value through profit or loss (certain customers). | |||
Other investments include unlisted shares, where 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 is based on three hierarchy levels: | |||
\u2022 Level 1: quoted prices in active markets for given or identical assets or liabilities that the entity can access at the measurement date; \u2022 Level 2: inputs that are observable for the asset or liability, either directly or indirectly; \u2022 Level 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. The fair values of foreign exchange derivatives are calculated according to foreign exchange and interest rates on the closing date. |
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 | |||
Financial liabilities at amortized cost | |||
Financial liabilities in 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 the effective interest rate method, taking into account any issue costs and any discount or premium on settlement. The related interest expenses are recognized in profit or loss in financial items, see | |||
Financial assets and liabilities at fair value through profit or loss | |||
Financial assets and liabilities in this category are recognized in the statement of financial position at their fair value with gains or losses resulting from changes in the fair value, being recognized in the income statement. | |||
This category consists mainly 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 23, whereas gains or losses from derivatives, mainly currency forward contracts that relate to operating activities, are included in operating profit. | |||
Contingent consideration related to disposals is classified as a financial asset at fair value through profit or loss. | |||
Trade receivables to be sold via non-recourse arrangements are classified as financial assets at fair value through profit or loss (certain customers). | |||
Other investments include unlisted shares, where 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 is based on three hierarchy levels: | |||
\u2022 Level 1: quoted prices in active markets for given or identical assets or liabilities that the entity can access at the measurement date; \u2022 Level 2: inputs that are observable for the asset or liability, either directly or indirectly; \u2022 Level 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. The fair values of foreign exchange derivatives are calculated according to foreign exchange and interest rates on the closing date. |
EUR million | Note | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 | Fair value hierarchy |
Financial assets at fair value through profit or loss | ||||
Non-current | ||||
Contingent consideration | 30.0 | \u2014 | Level 3 | |
Other financial assets at fair value through profit or loss | 0.5 | 0.5 | Level 3 | |
Non-current derivative receivables | 8.4 | 11.8 | Level 2 | |
Current | ||||
Trade receivables at fair value through profit or loss | 11.7 | 11.1 | Level 2 | |
Current derivative receivables | 3.8 | 2.7 | Level 2 | |
Financial assets at amortized cost | ||||
Non-current | ||||
Other loan receivables, interest-bearing | 0.2 | 14.7 | Level 2 | |
Lease receivables, interest-bearing | 2.1 | \u2014 | Level 2 | |
Current | ||||
Other loan receivables, interest-bearing | 0.2 | 14.5 | Level 2 | |
Lease receivables, interest-bearing | 1.4 | 1.4 | Level 2 | |
Trade receivables | 217.8 | 391.8 | Level 2 | |
Accrued interest income | 0.0 | 0.0 | Level 2 | |
Cash and cash equivalents | 146.2 | 195.1 | Level 2 | |
Total | 422.3 | 643.6 |
EUR million | Note | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 | Fair value hierarchy |
Financial liabilities at fair value through profit or loss | ||||
Non-current derivative liabilities | 12.2 | 16.5 | Level 2 | |
Current derivative liabilities | 1.6 | 7.1 | Level 2 | |
Financial liabilities measured at amortized cost | ||||
Non-current | ||||
Lease liability | 43.0 | 142.6 | Level 2 | |
Other loans | 616.3 | 569.6 | Level 2 | |
Current | ||||
Trade payables | 86.4 | 174.8 | Level 2 | |
Accrued interest | 4.5 | 12.1 | Level 2 | |
Lease liability | 32.4 | 50.5 | Level 2 | |
Bonds1) | \u2014 | 299.8 | Level 1 | |
Other loans | 14.0 | 35.2 | Level 2 | |
Total | 810.3 | 1\u00a0308.1 |
EUR million | Note | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 | Fair value hierarchy |
Financial assets at fair value through profit or loss | ||||
Non-current | ||||
Contingent consideration | 30.0 | \u2014 | Level 3 | |
Other financial assets at fair value through profit or loss | 0.5 | 0.5 | Level 3 | |
Non-current derivative receivables | 8.4 | 11.8 | Level 2 | |
Current | ||||
Trade receivables at fair value through profit or loss | 11.7 | 11.1 | Level 2 | |
Current derivative receivables | 3.8 | 2.7 | Level 2 | |
Financial assets at amortized cost | ||||
Non-current | ||||
Other loan receivables, interest-bearing | 0.2 | 14.7 | Level 2 | |
Lease receivables, interest-bearing | 2.1 | \u2014 | Level 2 | |
Current | ||||
Other loan receivables, interest-bearing | 0.2 | 14.5 | Level 2 | |
Lease receivables, interest-bearing | 1.4 | 1.4 | Level 2 | |
Trade receivables | 217.8 | 391.8 | Level 2 | |
Accrued interest income | 0.0 | 0.0 | Level 2 | |
Cash and cash equivalents | 146.2 | 195.1 | Level 2 | |
Total | 422.3 | 643.6 |
EUR million | Note | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 | Fair value hierarchy |
Financial liabilities at fair value through profit or loss | ||||
Non-current derivative liabilities | 12.2 | 16.5 | Level 2 | |
Current derivative liabilities | 1.6 | 7.1 | Level 2 | |
Financial liabilities measured at amortized cost | ||||
Non-current | ||||
Lease liability | 43.0 | 142.6 | Level 2 | |
Other loans | 616.3 | 569.6 | Level 2 | |
Current | ||||
Trade payables | 86.4 | 174.8 | Level 2 | |
Accrued interest | 4.5 | 12.1 | Level 2 | |
Lease liability | 32.4 | 50.5 | Level 2 | |
Bonds1) | \u2014 | 299.8 | Level 1 | |
Other loans | 14.0 | 35.2 | Level 2 | |
Total | 810.3 | 1\u00a0308.1 |
EUR million | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 |
Foreign exchange forward contracts | 531.9 | 536.3 |
Interest rate swaps | 280.0 | 280.0 |
EUR million | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 |
Gross positive fair values, foreign exchange forward contracts | 3.8 | 2.7 |
Gross negative fair values, foreign exchange forward contracts | -1.6 | -7.1 |
Gross positive fair values, interest rate swaps | 8.4 | 11.8 |
Gross negative fair values, interest rate swaps | -12.2 | -16.5 |
The net fair values at the reporting date | -1.7 | -9.1 |
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 2025 | Financial Instruments | Cash collateral received | Net amount | |
EUR million | ||||
Derivative financial assets | ||||
Foreign exchange forward contracts | 3.8 | -0.8 | \u2014 | 3.0 |
Interest rate swaps | 8.4 | -8.4 | \u2014 | \u2014 |
Derivative financial liabilities | ||||
Foreign exchange forward contracts | -1.6 | 0.8 | \u2014 | -0.8 |
Interest rate swaps | -12.2 | 8.4 | \u2014 | -3.8 |
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\u00a02024 | Financial Instruments | Cash collateral received | Net amount | |
EUR million | ||||
Derivative financial assets | ||||
Foreign exchange forward contracts | 2.7 | -1.9 | \u2014 | 0.7 |
Interest rate swaps | 11.8 | -11.8 | \u2014 | \u2014 |
Derivative financial liabilities | ||||
Foreign exchange forward contracts | -7.1 | 1.9 | \u2014 | -5.2 |
Interest rate swaps | -16.5 | 11.8 | \u2014 | -4.7 |
EUR million | 31\u00a0Dec 2025 | 31\u00a0Dec\u00a02024 |
Cash in hand and at bank | 127.6 | 185.4 |
Short-term deposits | 18.5 | 9.7 |
Total | 146.2 | 195.1 |
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\u00a02024 | 118\u00a0391\u00a0092 | 76.6 | 39.4 | 1\u00a0203.5 | 1\u00a0319.5 |
Forfeiture of shares1) | -10\u00a0560 | \u2014 | \u2014 | \u2014 | \u2014 |
Shares delivered from the share- based incentive plans 2) | 214\u00a0379 | \u2014 | \u2014 | \u2014 | \u2014 |
Translation difference | \u2014 | \u2014 | -0.8 | \u2014 | -0.8 |
31\u00a0Dec\u00a02024 | 118\u00a0594\u00a0911 | 76.6 | 38.5 | 1\u00a0203.5 | 1\u00a0318.6 |
Purchase of own shares | -350\u00a0000 | \u2014 | \u2014 | \u2014 | \u2014 |
Shares delivered from the share- based incentive plans 3) | 156\u00a0667 | \u2014 | \u2014 | \u2014 | \u2014 |
Translation difference | \u2014 | \u2014 | 1.5 | \u2014 | 1.5 |
Return of capital | \u2014 | \u2014 | \u2014 | -158.8 | -158.8 |
Disposal of business operations | \u2014 | \u2014 | -26.2 | \u2014 | -26.2 |
31\u00a0Dec 2025 | 118\u00a0401\u00a0578 | 76.6 | 13.8 | 1\u00a0044.7 | 1\u00a0135.0 |
Own shares4) | 238\u00a0572 | ||||
Total number of shares on 31\u00a0Dec 2025 4) | 118\u00a0640\u00a0150 |
ACCOUNTING POLICIES | |||
Business combinations | |||
Business combinations are accounted for using the acquisition method. Subsidiaries are consolidated from the date on which control is achieved until the date on which control ceases. The consideration transferred for the acquisition is the fair values of the assets transferred and the liabilities assumed. Acquisition related costs are recognised as expenses for the period in which they are incurred. | |||
Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the consideration transferred over the fair value of the identifiable net assets acquired is recognized as goodwill at the acquisition date. If the cost of the acquisition is less than the fair value of the net assets acquired in the case of a bargain purchase, the resulting gain is recognized in profit or loss. | |||
Asset and liabilities classified as held for sale | |||
Non-current assets are classified as held for sale if their carrying amounts are expected to be recovered | |||
When a 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 fair values of the disposed operation and the portion of the cash-generating unit retained. |
EUR million | 31\u00a0Dec\u00a02025 |
Goodwill | 108.3 |
Non-current assets | 1.9 |
Trade and other receivables | 8.0 |
Cash and cash equivalents | 0.2 |
Total assets | 118.4 |
Lease liabilities | 0.8 |
Provisions | 0.2 |
Trade and other payables | 18.8 |
Total liabilities | 19.8 |
Net assets held for sale | 98.6 |
ACCOUNTING POLICIES | |||
Business combinations | |||
Business combinations are accounted for using the acquisition method. Subsidiaries are consolidated from the date on which control is achieved until the date on which control ceases. The consideration transferred for the acquisition is the fair values of the assets transferred and the liabilities assumed. Acquisition related costs are recognised as expenses for the period in which they are incurred. | |||
Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the consideration transferred over the fair value of the identifiable net assets acquired is recognized as goodwill at the acquisition date. If the cost of the acquisition is less than the fair value of the net assets acquired in the case of a bargain purchase, the resulting gain is recognized in profit or loss. | |||
Asset and liabilities classified as held for sale | |||
Non-current assets are classified as held for sale if their carrying amounts are expected to be recovered | |||
When a 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 fair values of the disposed operation and the portion of the cash-generating unit retained. |
EUR million | 31\u00a0Dec\u00a02025 |
Goodwill | 108.3 |
Non-current assets | 1.9 |
Trade and other receivables | 8.0 |
Cash and cash equivalents | 0.2 |
Total assets | 118.4 |
Lease liabilities | 0.8 |
Provisions | 0.2 |
Trade and other payables | 18.8 |
Total liabilities | 19.8 |
Net assets held for sale | 98.6 |
Company name | Domicile | Parent company's holding, % |
EVRY Card Issuing AS | Norway | 100.0 |
EVRY Card Payments AS | Norway | 100.0 |
EVRY Card Services AS | Norway | 100.0 |
Tietoevry Create Brasil LTDA | Brazil | 1.0 |
Tieto (Beijing) Technology Co., Ltd. | China | 100.0 |
Tieto China Co., Ltd. | China | 100.0 |
Tieto Germany GmbH | Germany | 100.0 |
Tieto Global Oy | Finland | 100.0 |
Tieto Great Britain Ltd. | Great Britain | 100.0 |
Tieto Lietuva UAB | Lithuania | 100.0 |
Tieto Netherlands Holding B.V. | Netherlands | 100.0 |
Tieto Support Services Sp. z o.o. | Poland | 100.0 |
Tietoevry AB | Sweden | 100.0 |
Tietoevry Austria GmbH | Austria | 100.0 |
Tietoevry Banking Finland Oy | Finland | 100.0 |
Tietoevry Banking Latvia SIA | Latvia | 100.0 |
Tietoevry Create Bulgaria EOOD | Bulgaria | 100.0 |
Tietoevry Create Poland Sp. z o.o | Poland | 100.0 |
Tietoevry Create Romania s.r.l. | Romania | 100.0 |
Tietoevry Czechia s.r.o. | Czech Republic | 100.0 |
Tietoevry Czechia Support Services s.r.o. | Czech Republic | 100.0 |
Tietoevry Denmark A/S | Denmark | 100.0 |
Tietoevry DK A/S | Denmark | 100.0 |
Tietoevry Estonia AS | Estonia | 100.0 |
Tietoevry Finland Oy | Finland | 100.0 |
Tietoevry Finland Support Services Oy | Finland | 100.0 |
Tietoevry Fintech Estonia O\u00dc | Estonia | 100.0 |
Tietoevry Fintech Norway AS | Norway | 100.0 |
Tietoevry Fintech Spain S.L.U. | Spain | 100.0 |
Tietoevry Fintech Sweden AB | Sweden | 100.0 |
Tietoevry Inc. | The United States | 100.0 |
Tietoevry\u00a0 Latvia SIA | Latvia | 100.0 |
Tietoevry Malaysia Sdn. Bhd. | Malaysia | 100.0 |
Tietoevry Norway AS | Norway | 100.0 |
Tietoevry Slovakia s.r.o. | Slovakia | 100.0 |
Dormant subsidiaries (1 in total) |
Company name | Domicile | Group holding, % |
Avega Catalyst AB | Sweden | 100.0 |
Avega Clarity AB | Sweden | 100.0 |
Avega Dinamiko AB | Sweden | 100.0 |
Avega Effectus AB | Sweden | 100.0 |
Avega Group AB | Sweden | 100.0 |
Avega Kipeo AB | Sweden | 100.0 |
Avega Kite AB | Sweden | 100.0 |
Avega Mtoni AB | Sweden | 100.0 |
Avega Qurio AB | Sweden | 100.0 |
Avega Scire AB | Sweden | 100.0 |
Avega Sempai AB | Sweden | 100.0 |
Avega Senso AB | Sweden | 100.0 |
Bekk Consulting AS | Norway | 100.0 |
EVRY Card Services AB | Sweden | 100.0 |
EVRY Card Services Oy | Finland | 100.0 |
EVRY Financial Service UK Ltd. | Great Britain | 100.0 |
EVRY India Pvt. Ltd.1) | India | 100.0 |
EVRY USA Corporation | The United States | 100.0 |
Eye-share AS | Norway | 100.0 |
Eye-share Singapore Pte. Ltd. | Singapore | 100.0 |
Gjeldsregisteret AS | Norway | 100.0 |
MentorMate, LLC | The United States | 100.0 |
MentorMate Paraguay S.R.L. | Paraguay | 100.0 |
NUK Holding AB | Sweden | 100.0 |
Tieto Ukraine Support Services LLC | Ukraine | 100.0 |
Tieto U.S. Inc. | The United States | 100.0 |
Tietoevry Banking Poland Sp. z o.o. | Poland | 100.0 |
Tietoevry Create Brasil LTDA | Brazil | 99.0 |
Tietoevry Create Ukraine LLC | Ukraine | 100.0 |
Tietoevry FinTech DOO | Serbia | 100.0 |
Tietoevry Fintech India Pvt. Ltd.1) | India | 100.0 |
Tietoevry India Pvt. Ltd.1) | India | 100.0 |
Tietoevry Sweden AB | Sweden | 100.0 |
Tietoevry Sweden Support Services AB | Sweden | 100.0 |
Dormant subsidiaries (6 in total) |
EUR million | 2024 |
Carrying value, 1 Jan | 11.6 |
Translation differences | -0.5 |
Share of results | 0.9 |
Dividends received | -1.0 |
Impairments | -0.3 |
Disposals and other decreases | -10.6 |
Carrying value, 31 Dec | \u2014 |
Company name | Domicile | Parent company's holding, % |
EVRY Card Issuing AS | Norway | 100.0 |
EVRY Card Payments AS | Norway | 100.0 |
EVRY Card Services AS | Norway | 100.0 |
Tietoevry Create Brasil LTDA | Brazil | 1.0 |
Tieto (Beijing) Technology Co., Ltd. | China | 100.0 |
Tieto China Co., Ltd. | China | 100.0 |
Tieto Germany GmbH | Germany | 100.0 |
Tieto Global Oy | Finland | 100.0 |
Tieto Great Britain Ltd. | Great Britain | 100.0 |
Tieto Lietuva UAB | Lithuania | 100.0 |
Tieto Netherlands Holding B.V. | Netherlands | 100.0 |
Tieto Support Services Sp. z o.o. | Poland | 100.0 |
Tietoevry AB | Sweden | 100.0 |
Tietoevry Austria GmbH | Austria | 100.0 |
Tietoevry Banking Finland Oy | Finland | 100.0 |
Tietoevry Banking Latvia SIA | Latvia | 100.0 |
Tietoevry Create Bulgaria EOOD | Bulgaria | 100.0 |
Tietoevry Create Poland Sp. z o.o | Poland | 100.0 |
Tietoevry Create Romania s.r.l. | Romania | 100.0 |
Tietoevry Czechia s.r.o. | Czech Republic | 100.0 |
Tietoevry Czechia Support Services s.r.o. | Czech Republic | 100.0 |
Tietoevry Denmark A/S | Denmark | 100.0 |
Tietoevry DK A/S | Denmark | 100.0 |
Tietoevry Estonia AS | Estonia | 100.0 |
Tietoevry Finland Oy | Finland | 100.0 |
Tietoevry Finland Support Services Oy | Finland | 100.0 |
Tietoevry Fintech Estonia O\u00dc | Estonia | 100.0 |
Tietoevry Fintech Norway AS | Norway | 100.0 |
Tietoevry Fintech Spain S.L.U. | Spain | 100.0 |
Tietoevry Fintech Sweden AB | Sweden | 100.0 |
Tietoevry Inc. | The United States | 100.0 |
Tietoevry\u00a0 Latvia SIA | Latvia | 100.0 |
Tietoevry Malaysia Sdn. Bhd. | Malaysia | 100.0 |
Tietoevry Norway AS | Norway | 100.0 |
Tietoevry Slovakia s.r.o. | Slovakia | 100.0 |
Dormant subsidiaries (1 in total) |
Company name | Domicile | Group holding, % |
Avega Catalyst AB | Sweden | 100.0 |
Avega Clarity AB | Sweden | 100.0 |
Avega Dinamiko AB | Sweden | 100.0 |
Avega Effectus AB | Sweden | 100.0 |
Avega Group AB | Sweden | 100.0 |
Avega Kipeo AB | Sweden | 100.0 |
Avega Kite AB | Sweden | 100.0 |
Avega Mtoni AB | Sweden | 100.0 |
Avega Qurio AB | Sweden | 100.0 |
Avega Scire AB | Sweden | 100.0 |
Avega Sempai AB | Sweden | 100.0 |
Avega Senso AB | Sweden | 100.0 |
Bekk Consulting AS | Norway | 100.0 |
EVRY Card Services AB | Sweden | 100.0 |
EVRY Card Services Oy | Finland | 100.0 |
EVRY Financial Service UK Ltd. | Great Britain | 100.0 |
EVRY India Pvt. Ltd.1) | India | 100.0 |
EVRY USA Corporation | The United States | 100.0 |
Eye-share AS | Norway | 100.0 |
Eye-share Singapore Pte. Ltd. | Singapore | 100.0 |
Gjeldsregisteret AS | Norway | 100.0 |
MentorMate, LLC | The United States | 100.0 |
MentorMate Paraguay S.R.L. | Paraguay | 100.0 |
NUK Holding AB | Sweden | 100.0 |
Tieto Ukraine Support Services LLC | Ukraine | 100.0 |
Tieto U.S. Inc. | The United States | 100.0 |
Tietoevry Banking Poland Sp. z o.o. | Poland | 100.0 |
Tietoevry Create Brasil LTDA | Brazil | 99.0 |
Tietoevry Create Ukraine LLC | Ukraine | 100.0 |
Tietoevry FinTech DOO | Serbia | 100.0 |
Tietoevry Fintech India Pvt. Ltd.1) | India | 100.0 |
Tietoevry India Pvt. Ltd.1) | India | 100.0 |
Tietoevry Sweden AB | Sweden | 100.0 |
Tietoevry Sweden Support Services AB | Sweden | 100.0 |
Dormant subsidiaries (6 in total) |
EUR million | 2024 |
Carrying value, 1 Jan | 11.6 |
Translation differences | -0.5 |
Share of results | 0.9 |
Dividends received | -1.0 |
Impairments | -0.3 |
Disposals and other decreases | -10.6 |
Carrying value, 31 Dec | \u2014 |
EUR million | 2024 |
Carrying value, 1 Jan | 11.6 |
Translation differences | -0.5 |
Share of results | 0.9 |
Dividends received | -1.0 |
Impairments | -0.3 |
Disposals and other decreases | -10.6 |
Carrying value, 31 Dec | \u2014 |
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. |
EUR million | 31\u00a0Dec\u00a02024 |
Sales | 0.4 |
Other operating income | 0.2 |
Purchases | 0.3 |
Receivables | 0.0 |
Liabilities including cash pool | 0.0 |
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 2025 | 31\u00a0Dec\u00a02024 | |
Guarantees for own obligations | Performance guarantees | 124.5 | 161.2 |
Payment guarantees | 0.9 | 1.4 | |
Other Tieto obligations | Lease commitments, not yet commenced | 4.6 | 8.8 |
Other | 0.3 | 0.4 | |
Guarantees on behalf of third parties | Performance guarantees | \u2014 | 22.7 |
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. |