Cash flow and financing

Net cash flow from operations amounted to EUR 97.2 (132.6) million, including the increase of EUR 51.6 (15.0) million in net working capital. The increase in net working capital is mainly attributable to increased accounts receivable and other receivables, and lower level of restructuring-related provisions. Accounts receivable was at a high level as the due date at the turn of the year transferred a substantial amount of cash flow to the first week of 2017.

Tax payments were EUR 37.6 (20.4) million in the full year. In January 2016, Tieto paid EUR 6.0 million based on the transfer pricing audit for tax years 2009–2013 in Finland. The decision has been appealed.

The equity ratio was 47.3% (46.2). Gearing increased to 22.5% (2.7). Interest-bearing net debt totalled EUR 109.7 (13.2) million, including EUR 166.9 (171.3) million in interest-bearing debt, EUR 5.5 (6.7) million in finance lease liabilities, EUR 5.7 (8.1) million in finance lease receivables, EUR 0.3 (0.5) million in other interest-bearing receivables and EUR 56.7 (156.2) million in cash and cash equivalents.

The EUR 100 million bond matures in May 2019 and it carries a coupon of fixed annual interest of 2.875%. Interest-bearing long-term loans amounted to EUR 103.8 million at the end of December. Interest-bearing short-term loans amounted to EUR 68.6 million, mainly related to commercial papers and joint venture cash pool balances. The syndicated revolving credit facility of EUR 150 million maturing in May 2020 was not in use at the end of December.

return on equity
return on capital