Reporting changes based on new reporting standards and business transfers
Tieto Corporation STOCK EXCHANGE RELEASE 28 March 2018, 12.00 EET
Tieto has adopted the new IFRS 9, ‘Financial Instruments’ and IFRS 15 ‘Revenue from Contracts with Customers’ standards and an amendment to IFRS 2 ‘Share-based payment’ standard as of 1 January 2018. The first interim report for 2018 to be published on 26 April will be prepared in accordance with the new and amended standards and restated comparison numbers for 2017 are provided in the attachment.
Comparison figures for 2017 will also be affected by internal business transfers from Technology Services and Modernization to Business Consulting and Implementation. The transfers will take effect on 1 April and annual sales of the transferred business amount to close to EUR 40 million. Comparison figures for 2017 will be provided before the end of the second quarter of 2018.
Tieto aims to strengthen its capability to capture consulting-driven market opportunities as well as to further drive customer value and utilization rates, and thereby has resolved to integrate the company’s business consulting and integration capabilities tighter together. Currently business consulting businesses are led by respective industry groups. Ari Järvelä has been appointed as Head of Business Consulting and Implementation service line while he will continue in his current role as head of Data-Driven Businesses and the member of Tieto’s Leadership Team.
Tieto's comparison figures for 2017 based on IFRS 9 and IFRS 15
The impact of IFRS 15 on 2017 Group-level net sales is EUR 0.2 million and on operating profit (EBIT) EUR -0.1 million. The change mainly affects the Technology Services and Modernization service line. The impact of IFRS 9 on the company’s equity in the opening balance sheet for 2018 is EUR 0.4 million (negative). The total impact of reporting changes on equity, including IFRS 9 and IFRS 15, is EUR 0.2 million (positive). The amendment to IFRS 2 has no impact on comparison figures for 2017. Tieto's financial reporting for 2017 has been adjusted to account for the reporting standard changes. The tables in the attachment include only items changed and are also available in Excel format at www.tieto.com/Investors.
For further information, please contact:
Tanja Lounevirta, Head of Investor Relations, tel. +358 50 321 7510, tanja.lounevirta (at) tieto.com
Tieto aims to capture the significant opportunities of the data-driven world and turn them into lifelong value for people, business and society. We aim to be customers’ first choice for business renewal by combining our software and services capabilities with a strong drive for co-innovation and ecosystems.
Headquartered in Finland, Tieto has over 14 000 experts in close to 20 countries. Tieto’s turnover is approximately EUR 1.5 billion and shares listed on NASDAQ in Helsinki and Stockholm. www.tieto.com