Income statement (IFRS)
|INCOME STATEMENT (IFRS)|
|EUR million||Note||1 Jan–31 Dec 2017||1 Jan–31 Dec 2016|
|Net sales||1||1 543.2||1 492.6|
|Other operating income||3||17.4||19.8|
|Cost of sales||-235.0||-232.8|
|Employee benefit expenses||8,||9||-873.1||-827.1|
|Depreciation and amortization||14,||15||-54.7||-53.9|
|Other operating expenses||4||-261.8||-261.0|
|Share of profit from investments accounted for using the equity method||29||3.2||3.2|
|Interest and other financial income||6||1.5||2.1|
|Interest and other financial expenses||6||-4.7||-5.0|
|Net exchange losses and gains||6||-0.2||-1.1|
|Profit before taxes||135.8||136.8|
|Net profit for the financial year||107.8||107.2|
|Net profit for the period attributable to|
|Shareholders of the Parent company||107.8||107.2|
|Earnings per share attributable to the shareholders of the Parent company, EUR||7|
|Statement of comprehensive income, EUR million|
|Net profit for the period||107.8||107.2|
|Items that may be reclassified subsequently to profit or loss|
|Cash flow hedges (net of tax)||-||-0.2|
|Items that will not be reclassified subsequently to profit or loss|
|Actuarial gain/loss on post employment benefit obligations (net of tax)||-2.4||-2.1|
|Total comprehensive income||86.4||102.8|
|Total comprehensive income attributable to|
|Shareholders of the Parent company||86.4||102.8|
|Notes are an integral part of these consolidated financial statements.|
Comments to the income statement
Net sales increased by 3.4% to EUR 1 543.2 (1 492.6) million, growth of 4.1% in local currencies. In IT services, net sales were up by 3.0%, in local currencies up by 3.6%. In Product Development Services, sales increased by 7.9%, in local currencies up by 9.6%. Acquisitions added EUR 17 million in sales, affecting Industry Solutions and Business Consulting and Implementation. Currency fluctuations had a negative impact of EUR 10 million on sales, mainly due to the weaker Swedish Krona.
Operating profit (EBIT) amounted to EUR 139.2 (140.8) million, representing a margin of 9.0% (9.4). Operating profit was strained by restructuring costs related to the automation and efficiency improvement programme initiated in January 2017.
The efficiency improvement programme had an impact of around EUR 20 million on the cost base in the full year, whereas improvement was curbed by salary inflation of around EUR 18 million. Offering development costs remained at the previous year’s level at close to EUR 75 million.
Employee benefit expenses were up by 6% and represented 56.6% (55.4) of net sales. Employee benefit expenses include costs from personnel restructuring of EUR 21.9 (10.6) million. The performance-based incentive accruals, including both short-term and long-term incentives, were EUR 37.6 (25.6) million. The average number of full-time employees was 13 889 (13 472).
Net financial expenses stood at EUR 3.4 (4.0) million. Net interest expenses were EUR 2.1 (2.1) million and net losses from foreign exchange transactions EUR 0.2 (1.1) million. Other financial income and expenses amounted to EUR -1.1 (-0.8) million.
Tax expenses reported for the year include EUR 22.4 million payable on the profit for the year and EUR 6.5 million negative from the change in deferred taxes. Tax rate was 20.0% in Finland and 22.0% in Sweden.
|Cost structure, %||2017||2016|
|Cost of sales||16.5||16.9|
|Employee benefit expenses||61.3||60.2|
|Other operating expenses||18.4||19.0|
|Depreciation and amortization||3.8||3.9|