28. Interest in joint ventures

28. JOINT VENTURES
 
Tieto Corporation holds interest in companies for which it has assumed management responsibility and which are jointly controlled. These joint ventures have been established in order to be able to produce the high quality IT services required by the customer.
 
These joint arrangements are defined to be joint ventures based on the legal form and contractual arrangements; Tieto has right to the net assets of the arrangement. According to the shareholder agreements major decisions require unanimous decision. Sales to and purchases from joint ventures are made on normal market terms and conditions and at market prices. Joint ventures are accounted by using the equity method.
 
Carrying values of Joint ventures
 
EUR million       31 Dec 2016     31 Dec 2015
At 1 Jan       3.7 4.7
Equity refund       - -1.0
Disposals       - -
Historical costs at 31 Dec       3.7 3.7
           
Equity adjustments          
At 1 Jan       13.5 14.6
Share of results       3.2 4.2
Dividends received       -3.8 -5.4
Disposal adjustments       - -
Other comprehensive income       -0.1 0.1
Equity adjustments at 31 Dec       12.8 13.5
           
Carrying value at 31 Dec       16.5 17.2
 
Equity adjustments includes Group level goodwill EUR 10.3 million.
 
Joint ventures at 31 Dec 2016
    Number of shares Share % Voting right % Carrying value EUR million
Tieto Esy Oy   7 300 80.0 34.0 5.6
TietoIlmarinen Oy   3 570 70.0 30.0 2.5
Tietokarhu Oy   8 000 80.0 20.0 8.4
          16.5
 
All joint ventures are located in Finland.
 
Joint ventures at 31 Dec 2015
    Number of shares Share % Voting right % Carrying value EUR million
Tieto Esy Oy   7 300 80.0 34.0 5.6
TietoIlmarinen Oy   3 570 70.0 30.0 2.9
Tietokarhu Oy   8 000 80.0 20.0 8.7
          17.2
           
Financial and personnel information of Joint ventures at 31 Dec 2016
      Tieto Esy Oy TietoIlmarinen Oy Tietokarhu Oy
Non-current assets     0.1 0.2 0.1
Interest-bearing non-current assets     4.5 1.0 10.5
Other current assets     0.9 0.6 5.7
      5.5 1.8 16.3
           
Other non-current liabilities     0.1 0.3 0.7
Other current liabilities     1.4 0.9 12.3
      1.5 1.2 13.0
           
Net sales     10.2 6.3 29.0
Expenses     -8.5 -7.0 -25.0
Depreciation and amortization     - - -0.1
Interest income     0.0 0.0 0.0
Interest expenses     -0,0 -0,0 -0,0
Other financial income and expenses     -0,0 -0,0 -0,0
Profit before income tax     1.7 -0.7 3.9
Income tax expense     -0.3 0.1 -0.8
Net profit     1.4 -0.6 3.1
           
Dividends paid to Tieto     1.0 - 2.8
           
Average full-time personnel during the financial year 58 38 197
           
           
Financial and personnel information of Joint ventures at 31 Dec 2015
      Tieto Esy Oy TietoIlmarinen Oy Tietokarhu Oy
Non-current assets     0.1 0.0 0.2
Interest-bearing non-current assets     4.9 1.9 12.5
Other current assets     1.3 1.0 5.0
      6.3 2.9 17.7
           
Other non-current liabilities     0.2 0.2 1.4
Other current liabilities     2.2 1.5 12.6
      2.4 1.7 14.0
           
Net sales     12.0 9.8 33.7
Expenses     -10.7 -8.8 -29.0
Depreciation and amortization     -0,0 -0,0 -0.2
Interest income     0.0 0.0 0.0
Interest expenses     -0,0 -0,0 -0,0
Other financial income and expenses     -0,0 -0,0 -0,0
Profit before income tax     1.3 1.0 4.5
Income tax expense     -0.2 -0.2 -0.9
Net profit     1.1 0.8 3.6
           
Dividends paid to Tieto     1.6 0.9 2.9
 
Average full-time personnel during the financial year 76 58 240
           
There are no commitments and contingencies related to joint ventures.