Reported alternative performance measures
In accordance with the new guidelines on alternative performance measures issued by the European Securities and Markets Authority (ESMA) Tieto has revised the terminology used in its financial reporting. The term "adjusted items” has replaced the term "one-off items". Adjusted items include restructuring costs, capital gains/losses, goodwill impairment charges and other items.
Tieto uses alternative performance measures to better reflect its operational business performance and to enhance comparability between financial periods. They are reported in addition to, but not as a substitute for, the performance measures reported in accordance to IFRS.
|Operating profit (EBIT)||140.8||125.2|
|+ restructuring costs||14.8||29.6|
|+ impairment losses||-||-|
|- capital gains||-||-6.1|
|+ capital losses||0.2||-|
|+/- M&A related items||-1.9||1.0|
|Adjusted operating profit (EBIT)||152.2||150.8|
|1) Value added tax correction from previous years EUR -1.1 million in Russia|
|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 note 11 in the Notes to the consolidated financial statements. "Other items" also includes EUR 1.5 million in one-off write-offs related to obsolete assets replaced by new technologies.|
|2) of which costs of EUR 1.1 million related to the restructuring of a subcontractor agreement|