Reported alternative performance measures
Tieto uses “Adjusted operating profit (EBIT)” as an alternative performance measure to better reflect its operational business performance and to enhance comparability between financial periods. This alternative performance measure is reported in addition to, but not as a substitute for, the performance measures reported in accordance to IFRS. Adjusted items include restructuring costs, capital gains/losses, goodwill impairment charges and other items.
|Operating profit (EBIT)||139.2||140.8|
|+ restructuring costs||22.7||14.8|
|+ capital losses||0.3||0.2|
|+/- M&A related items||-0.2||-1.9|
|+/- other||-0.5||1) 4)||-1.7||2) 3)|
|Adjusted operating profit (EBIT)||161.5||152.2|
|1) in Sweden one pension plan treated as a defined benefit planed was closed and a new contribution plan was established. Due to this the net costs of EUR 1.1 million has been recognized.
Includes also EUR 1.0 million write-off related to obsolete assets replaced by new technologies.
|2) value added tax correction from previous years EUR -1.1 million in Russia.|
|3) In Finland, around 250 active employees have been included in the defined benefit pension plans. Based on negotiations with the insurance company, Tieto closed its defined benefit plan for future pension accrual. As a consequence, a settlement gain of EUR 4.6 million has been recognized in personnel expenses in December 2016. More information available in the Annual report 2016. “Other items” also includes EUR 1.5 million in one-off write-offs related to obsolete assets replaced by new technologies.|
|4) In Finland, active employees having defined benefit pension plans have, as of 1 Jan 2017, had the option to transfer their defined benefit pensions to the defined contribution plan and some active employees decided to make that change. Due to this, a settlement gain of EUR 2.4 million has been recognized in personnel costs in December 2017. More information will be available in the Annual report 2017.|