Tieto's interim report 4/2009 (January-December) and financial statements bulletin 2009 - Profitabil

(Thomson Reuters ONE) - Tieto Corporation   INTERIM REPORT     10 February 2010, 8.00 am EETTo download the PDF file, please use this link:http://hugin.info/3114/R/1382208/341389.pdfOctober-December highlights * Net sales totalled EUR 440.6 (492.0) million, down 10%. Changes in exchange rates had only a minor impact on net sales. * Operating profit amounted to EUR 33.7 (23.6) million, representing an operating margin of 7.6% (4.8). * Operating profit excluding one-off items amounted to EUR 38.5 (42.4) million, 8.7% (8.6) of net sales. * Profit after taxes was EUR 25.7 (1.8) million. * Net cash flow from operations amounted to EUR 71.7 (78.2) million. * Streamlining actions progressed according to plan during the quarter. The company met its cost base reduction target of EUR 70 million for the full year.January-December highlights * Net sales totalled EUR 1 706.3 (1 865.7) million, down 9%. In local currencies, net sales declined by 6%. * Operating profit amounted to EUR 75.3 (111.6) million, representing an operating margin of 4.4% (6.0). * Operating profit, excluding one-off items, amounted to EUR 108.0 (149.9) million, 6.3% (8.0) of net sales. * Profit after taxes was EUR 55.1 (60.5) million. * Net cash flow from operations amounted to EUR 126.4 (191.0) million. * Dividend proposal: EUR 0.50 (0.50) per share. * In 2010, Tieto expects its net sales to develop in line with the IT services market relevant to Tieto and its operating profit to be higher than in 2009.+-------------------------------------------+-------+--------+--------+--------+| | | |Jan-Dec/|Jan-Dec/|| |Q4/2009|Q4/2008 | | || | | | 2009| 2008|+-------------------------------------------+-------+--------+--------+--------+|Net sales, EUR million | 440.6| 492.0| 1 706.3| 1 865.7|+-------------------------------------------+-------+--------+--------+--------+|Change in net sales, % | -10| 0| -9| 5|+-------------------------------------------+-------+--------+--------+--------+|Operating profit, EUR million | 33.7| 23.6| 75.3| 111.6|+-------------------------------------------+-------+--------+--------+--------+|Operating margin, % | 7.6| 4.8| 4.4| 6.0|+-------------------------------------------+-------+--------+--------+--------+|Operating profit excl. one-off items, EUR | 38.5| 42.4| 108.0| 149.9||million | | | | |+-------------------------------------------+-------+--------+--------+--------+|Operating margin excl. one-off items, % | 8.7| 8.6| 6.3| 8.0|+-------------------------------------------+-------+--------+--------+--------+|Profit after taxes, EUR million | 25.7| 1.8| 55.1| 60.5|+-------------------------------------------+-------+--------+--------+--------+|Net cash flow from operations, EUR million | 71.7| 78.2| 126.4| 191.0|+-------------------------------------------+-------+--------+--------+--------+|EPS, EUR | 0.36| 0.02| 0.77| 0.83|+-------------------------------------------+-------+--------+--------+--------+Hannu Syrj?, President and CEO:"The final quarter of 2009 was two-folded for Tieto - we improved ourprofitability from the previous three quarters, but at the same time our netsales continued to decline as a result of lower volumes and price pressure. Weachieved an EBIT margin of 7.6% in the fourth quarter due to disciplinedimplementation of planned streamlining measures. Going forward, profitabilityimprovement will continue to be high on our agenda, but we are starting to focusmore on growth.On the whole, year 2009 was exceptionally challenging. We implemented a newoperating model and business structure and at the same time we tackled theimpacts of lower demand for our services. Despite the tough market environment,we reached many of the goals set for 2009. In addition to cutting costs andimproving the efficiency of our onshore operations, we increased our offshoringaccording to our plans. By the end of 2009, we had achieved the EUR 70 millionsavings target and our offshoring rate i.e. share of personnel in globaldelivery centres was at 30%. As a result of the work done in the past two years,Tieto is now a much stronger company and well positioned for the future."MARKET DEVELOPMENTThe Nordic IT services market relevant to Tieto is estimated to have shrunk byapproximately 5% in 2009. Polarization of the IT services market continuedthroughout the year. Project services were hit hard, while the outsourcingmarket remained active as companies' efforts to achieve cost savings and improveproductivity opened up new business opportunities.In 2009, demand for IT services was at a good level in the public, healthcareand welfare sectors, whereas the telecom sector, manufacturing industry and thefinance sector, especially in the UK, were challenging, with very low activityin new IT investments. Towards the end of 2009, there were some signs ofinterest towards investments in IT supporting growth and new business. However,the pick-up in activity will translate to growth with a delay.In the telecom sector, the market was especially difficult in 2009, but isbelieved to have bottomed out at the turn of 2010. On the other hand, there areno signs of fast, strong recovery. The importance of offshore production hasincreased as customers are shifting their core operations and decision-making toAsia, especially China and India.In the finance sector, the market was challenging in 2009 but started tostabilize towards the end of the year However, competition is fierce and costsavings are expected to remain an important criterion in IT spending decisions.Outsourcing is the main source of growth, especially in Sweden, but activity inthe products area has also picked up. In the Finnish finance sector, there isgrowing demand for innovative internet-based solutions supporting customermanagement. In the UK and Russia, the finance sector has remained challenging.Asian competitors have been present in the Nordic countries for some time,compelling European IT companies to accelerate offshore production. Adequateoffshore capability has become an increasingly vital competitive factor. Pricepressure remained hard during the year.The outsourcing market and the demand for new service models are expected toremain robust in 2010. The market for larger, new IT projects is expected topick up only during the second half of 2010.Market development by countryIn Finland, the outsourcing market continues to grow. There are also some signsof recovery in the project business, predicting growth for the second half of2010. Demand for IT services is expected to continue at a good level in theutilities, healthcare and welfare sectors, but in the public sector, the ITbudgets of ministries will be cut in 2010. In the utilities sector, automaticmeter reading is the key growth driver as smart meters must be installed in 80%of homes by 2013. In the finance and telecom sectors, the market is expected togradually recover during 2010.In Sweden, the IT market is stabilizing. New outsourcing-related opportunitieshave opened up, especially in the finance and public sectors. The number ofcustomer leads is growing, although price competition remains hard in agreementrenewals. In the manufacturing industry, there are as yet no signs of recovery.Outside Finland and Sweden, the recession has affected the IT marketsnegatively, but impacts vary country by country. In general, telecom is the mostaffected sector.Germany is hit hard by the recession. The markets for local automotive andtelecom R&D deteriorated during 2009 and demand for IT services in these sectorshas been weak. In 2010, outsourcing remains the growth area, as the economicsituation is forcing companies to improve the efficiency of their operations.The energy and healthcare sectors are expected to see positive development.In Norway, the local IT market slowed down in 2009 despite the fact that theeconomy has been hit less hard than other European markets. This trend is notexpected to turn around in the near future. Demand for IT in the oil & gasmarket is currently at a reasonable level. The finance market in Norway followsthe common industry trends, capital market solutions being the strongest area.BUSINESS TRANSACTIONS AND MAJOR AGREEMENTS IN JANUARY-DECEMBERIn June, the company divested its holding in TietoSaab Systems Oy, previouslyowned by Tieto (60%) and Saab (40%). In 2008, net sales of TietoSaab Systemsamounted to EUR 9.3 million. Tieto booked EUR 4.9 million in capital gains fromthe divestment in the second quarter.In June, Tieto agreed on the acquisition of 20% of the shares in TKP Tieto Oyand as of 1 July owns the entire share capital of the company. TKP Tieto was ajoint venture, owned by Tieto (80%) and Finnish pension insurance institutions(20%). In 2008, net sales of TKP Tieto amounted to around EUR 32 million and thenumber of personnel totalled 211.In October, Tieto and Nokia Siemens Networks announced a global IT serviceagreement concerning IT application management services for Nokia SiemensNetworks' research and development (R&D) and customer care related applications.As part of the agreement, approximately 75 employees from Nokia Siemens Networkshave transferred to Tieto. Out of the transferring employees, 40 are based inFinland, 25 in China and India and about 10 in other European countries.In November, Tieto agreed on the delivery of a new contribution managementsystem to the Local Government Pensions Institution (Keva) in Finland by the endof 2012. The delivery comprises the construction of the contribution managementsystem, all the way from the definition phase to implementation. In December,Tieto and Mets?itto Group concluded a new three-year IT service agreement. Thedeal covers M-real, Mets?otnia and Mets?itto Cooperative. The contracts willtake effect on 1 July 2010.At the end of December, Tieto acquired 11.2% of the shares in TietoEnator AliseSIA in Latvia and now owns the entire share capital in the company.Tieto also concluded several other important agreements during the year, such asfor application management services with Elisa and IT infrastructure serviceswith Itella and Metso.ORDER BACKLOGThe order backlog, which only comprises services ordered with binding contracts,amounted to EUR 1 259 (1 124) million at the end of the period. In total, 63%(54) of the backlog is expected to be invoiced in 2010.STREAMLINING ACTIONSTo adjust its operations to the declining market, Tieto started streamliningactions during the first quarter of 2009. The company's target was to achieveannualized cost-savings amounting to EUR 100 million, of which approximately EUR70 million was expected to materialize in 2009. As a result of efficientimplementation of streamlining actions, the company achieved the EUR 70 millionsavings target, exclusive of currency effects. About half of the savings areaccounted for by a decline in personnel costs. About 20% of the savings areattributable to less subcontracting and about 25% to lower business expenses.During 2009, Tieto booked a total of EUR 50.8 million in restructuring costs, ofwhich EUR 4.8 million were recognized in the fourth quarter.In 2010, the company will continue to drive its structural improvements andtransfer of operations to offshore countries. Some one-off costs will beincurred, but the company expects them to be significantly lower than in 2009.FINANCIAL PERFORMANCE IN OCTOBER-DECEMBERFourth-quarter net sales declined by 10% and amounted to EUR 440.6 (492.0)million. Changes in exchange rates had only a minor impact on net sales.Outsourcing activity was quite strong, but net sales from new projects remainedat a low level. Net sales dropped in most customer industries. The public andretail sectors performed well and their net sales grew in the fourth quarter.Fourth-quarter operating profit amounted to EUR 33.7 (23.6) million,representing a margin of 7.6% (4.8). Operating profit included a net amount ofEUR 4.8 million (negative) in one-off items related to streamlining actions,mainly in Tieto International.Operating profit excluding one-off items amounted to EUR 38.5 (42.4) million,representing a margin of 8.7% (8.6). The trend in the margin in all countrysegments remained positive compared with the first three quarters of 2009.Net financial expenses stood at EUR 1.5 (17.0) million in the fourth quarter.Net interest expenses were EUR 1.9 (2.5) million and net gains from foreignexchange transactions EUR 0.6 (negative 16.7) million. Other financial incomeand expenses amounted to EUR 0.2 (positive 2.2) million.Fourth-quarter earnings per share (EPS) totalled EUR 0.36 (0.02).The 12-month rolling return on capital employed (ROCE) was 16.8% and the returnon shareholders' equity (ROE) 11.0%.Financial performance by country+-----------------+------------+------------+---------+------------+-----------+| |Net sales in|Net sales in| | | || | Q4/2009, | Q4/2008, | | EBIT margin|EBIT margin|| | | | | in Q4/2009,|in Q4/2008,|| | EUR million| EUR million|Change, %| %| % |+-----------------+------------+------------+---------+------------+-----------+|Finland | 233| 239| -3| 14.6| 11.9|+-----------------+------------+------------+---------+------------+-----------+|Sweden | 125| 141| -11| 6.3| 12.5|+-----------------+------------+------------+---------+------------+-----------+|International | 139| 152| -9| 2.0| -0.6|+-----------------+------------+------------+---------+------------+-----------+|Group elimination| -56| -40| | | |+-----------------+------------+------------+---------+------------+-----------+|Total | 441| 492| -10| 7.6| 4.8|+-----------------+------------+------------+---------+------------+-----------+In Finland, net sales declined by 3%. The biggest drop was seen in FinancialServices and the decline was mainly attributable to an exceptionally highcomparison figure for one major customer. On the whole, the finance business inFinland remained stable in the fourth quarter. Tieto concluded several newoutsourcing deals, such as those with Nokia Siemens Networks and Metso,resulting in a healthy order backlog. Due to the savings programmes, personneland subcontracting costs as well as business expenses were down andprofitability improved in the fourth quarter. Operating profit amounted to EUR34.0 (28.3) million.In Sweden, net sales declined by 11%. In local currency, the decline was 10%.About half of the drop in net sales was attributable to the weak development inthe telecom sector. Telecom accounts for close to 40% of Tieto's net sales inSweden. Operating profit declined to EUR 7.9 (17.6) million, mainly due to lowernet sales. Due to streamlining actions, however, profitability improved from thefirst three quarters of 2009.In International, net sales declined by 9%, reflecting lower demand, especiallyin the telecom sector in Denmark and Germany and the finance sector in the UK.The company has restructured its international operations during the year,resulting in improved profitability. Fourth-quarter operating profit rose to EUR2.7 (-0.9) million, or, excluding one-off costs, to EUR 7.8 (1.3) million.Operating margin, excluding one-off costs, totalled 5.6% (0.9).Net sales by customer sector+----------------+----------------------+----------------------+---------+| |Net sales in Q4/2009, |Net sales in Q4/2008, | || | | | || | EUR million| EUR million|Change, %|+----------------+----------------------+----------------------+---------+|Telecom | 149| 162| -8|+----------------+----------------------+----------------------+---------+|Finance | 89| 105| -15|+----------------+----------------------+----------------------+---------+|Industry sectors| 203| 226| -10|+----------------+----------------------+----------------------+---------+|Total | 441| 492| -10|+----------------+----------------------+----------------------+---------+In the telecom sector, Tieto's net sales fell by 8%. Majority of the drop in netsales is attributable to lower order volumes and prices. Profitability improvedfrom the previous two quarters in 2009 as the company has steadily increased itsoffshore capabilities, but remained at an unsatisfactory level.In the finance sector, net sales fell by 15%. The biggest drop was in Finlandwhere the decline was mainly attributable to an exceptionally high comparisonfigure for one major customer. Net sales in the UK have continued to decline.Products for capital markets performed best, partly due to regulatory changes.Despite the decline in net sales, operating profit remained at the same level asin the corresponding quarter in 2008. This was attributable to the goodutilization rate and streamlining actions.In the industry sectors, net sales declined by 10%. Manufacturing was theweakest area during the quarter, but strong performance continued in the publicsector. Profitability in the industry sectors was overall at a healthy level. InTieto's reporting, the industry sectors cover customers in healthcare andwelfare, forest, energy, manufacturing, automotive, public, retail andlogistics.FINANCIAL PERFORMANCE IN JANUARY-DECEMBERFull-year net sales declined by 9% and amounted to EUR 1 706.3 (1 865.7)million. The weakened currencies, especially the Swedish krona (SEK), had anegative impact on net sales in euros. In local currencies, net sales declinedby 6%. Outsourcing activity remained at a high level, but the market for newprojects was weak throughout the year. Net sales dropped in most customerindustries. The greatest decline was seen in the manufacturing industry and thetelecom and finance sectors, while development was more stable in the servicesectors, i.e. healthcare and welfare, public and retail sectors.Full-year operating profit amounted to EUR 75.3 (111.6) million, representing amargin of 4.4% (6.0). Operating profit included a net amount of EUR 32.7 million(negative) in one-off items, which comprises EUR 50.8 million in one-off costsrelated to streamlining actions and EUR 18.1 million in one-off income. One-offincome includes EUR 4.9 million in capital gains from the TietoSaab divestmentin Finland and a positive change of EUR 13.2 million in the revenue recognitionestimate of Tieto International.Operating profit excluding one-off items amounted to EUR 108.0 (149.9) million,representing a margin of 6.3% (8.0). The company has adjusted its operationsduring the year and decreased the number of personnel in onshore countries.However, as the decline in net sales materialized faster than that of costs,profitability did not turn to an upward trend until the second half of the year.Excluding one-off items, all country and industry segments delivered a positiveoperating margin.Net financial expenses for the full year stood at EUR 5.0 (29.2) million. Netinterest expenses were EUR 7.3 (9.3) million and net gains from foreign exchangetransactions EUR 2.9 (losses 21.2) million, of which EUR 4.0 million wereunrealized net losses. The company has reclassified all internal long-term loansto Swedish subsidiaries as a net investment in a foreign operation. All relatedunrealized foreign exchange gains and losses from the net investment arerecognized directly in shareholders' equity. This change had a major impact onthe amount of unrealized net losses. Other financial income and expensesamounted to EUR 0.6 (1.3 positive) million.Full-year earnings per share totalled EUR 0.77 (0.83).The 12-month rolling return on capital employed (ROCE) was 16.8% and the returnon shareholders' equity (ROE) 11.0%.Financial performance by country+----------------+--------------+--------------+---------+----------+----------+| | Net sales in | Net sales in | | EBIT| EBIT|| | | | | margin in| margin in|| |Jan-Dec/2009, |Jan-Dec/2008, | | Jan-Dec/| Jan-Dec/|| | | | | | || | EUR million| EUR million|Change, %| 2009, %| 2008, % |+----------------+--------------+--------------+---------+----------+----------+|Finland | 888| 900| -1| 12.4| 12.7|+----------------+--------------+--------------+---------+----------+----------+|Sweden | 463| 548| -16| -0.6| 8.9|+----------------+--------------+--------------+---------+----------+----------+|International | 553| 572| -3| -1.3| 0.7|+----------------+--------------+--------------+---------+----------+----------+|Group | -197| -155| | | ||elimination | | | | | |+----------------+--------------+--------------+---------+----------+----------+|Total | 1 706| 1 866| -9| 4.4| 6.0|+----------------+--------------+--------------+---------+----------+----------+In Finland, net sales declined by 1%. The market for new outsourcing cases wasstrong and Tieto concluded several new deals and agreement renewals, closing therevenue gap caused by the weak project services market. Despite the challengingmarket and cost inflation, profitability remained close to its 2008 level.Operating profit amounted to EUR 110.3 (114.2) million and included a net amountof EUR 2.2 million (negative) in one-off items.In Sweden, net sales declined by 16%. In local currency, the decline was 9%.Excluding the currency impact, the drop in sales was mainly attributable to theweak development in the telecom sector. Telecom accounts for close to 40% ofTieto's net sales in Sweden. Operating result amounted to a loss of EUR 2.7(profit 48.7) million, due to lower net sales and a net amount of EUR 20.9million in one-off items related to streamlining actions. Profitability turnedto a clear upward trend in the second half of 2009.In International, net sales declined by 3%, reflecting lower demand especiallyin the telecom sector in Denmark and Germany and the finance sector in the UK aswell as a strong emphasis on project services in this country segment. Net salesinclude one-off income of EUR 13.2 million due to a change in the revenuerecognition estimate. Excluding these income and currency impacts, net salesdeclined by 4%. Operating result amounted to a loss of EUR 7.1 (profit 3.8)million and included EUR 21.3 million in streamlining costs and EUR 13.2 millionin one-off income. Operating margin excluding one-off items totalled 0.2% (1.8).Streamlining actions balanced out the negative development, and profitabilityimproved steadily towards the year-end.Net sales by customer sector+----------------+--------------+--------------+---------+| | Net sales in | Net sales in | || | | | || |Jan-Dec/2009, |Jan-Dec/2008, | || | | | || | EUR million| EUR million|Change, %|+----------------+--------------+--------------+---------+|Telecom | 582| 648| -10|+----------------+--------------+--------------+---------+|Finance | 359| 402| -11|+----------------+--------------+--------------+---------+|Industry sectors| 766| 816| -6|+----------------+--------------+--------------+---------+|Total | 1 706| 1 866| -9|+----------------+--------------+--------------+---------+In the telecom sector, Tieto's net sales fell by 10%. Majority of the drop innet sales is attributable to lower order volumes. Additionally, more than twopercentage points of the decline are attributable to weaker currencies.Competition in the telecom market has become even more aggressive, emphasizingthe importance of offshore capabilities. The company has steadily increased itsoffshore capabilities, but the transfer of operations to offshore countries mustbe accelerated in order to respond to the market changes. Due to lower ordervolumes and prices, operating profit declined to an unsatisfactory level.However, profitability improved towards the year-end.In the finance sector, net sales fell by 11%. Exchange rate changes account forclose to three percentage points of the drop. The biggest decline was seen inFinland where the transactions related to Primasoft and the merger of Sampo Bankand Danske Bank in 2008 affected sales negatively. The rest of the financebusiness in Finland and Sweden has been stable. Products for capital markets wasthe strongest area, partly due to regulatory changes. Due to the streamliningactions and good utilization rate, operating margin remained close to its 2008level.In the industry sectors, net sales declined by 6%. Net sales include EUR 18.1million in one-off income. Manufacturing was the weakest area while net salesdevelopment was stable in the healthcare and welfare as well as the public andretail sectors. Profitability in the industry sectors was overall at a healthylevel and the profitability of the underlying business improved from 2008. InTieto's reporting, the industry sectors cover customers in healthcare andwelfare, forest, energy, manufacturing, automotive, public, retail andlogistics.CASH FLOW AND FINANCINGFourth-quarter net cash flow from operations, including the decrease of EUR 24.0(decrease 35.6) million in net working capital, amounted to EUR 71.7 (78.2)million. The decrease in net working capital was mainly caused by the reductionin prepaid expenses and increase in vacation pay.Full-year net cash flow from operations declined to EUR 126.4 (191.0) million,reflecting negative cash flow in the second quarter. Net cash flow fromoperations includes the increase of EUR 3.9 (decrease 30.3) million in networking capital.Tax payments amounted to EUR 14.4 (14.0) million.Acquisitions totalled EUR 4.6 (8.0) million. Divestments totalled EUR 5.7million.Dividends of EUR 35.8 million were paid in April.At the end of 2009, the consolidated balance sheet totalled EUR 1 195.3 (1254.5) million, a 4.7% decrease compared with 2008. The equity ratio was 46.0%(41.1). Gearing decreased to 12.7% (21.0). Net debt totalled EUR 66.0 (101.4)million, including EUR 188.8 million in interest-bearing debt, EUR 9.5 millionin finance lease liabilities, EUR 8.9 million in finance lease receivables andEUR 123.3 million in cash and cash equivalents.The interest-bearing long-term debt consists of EUR 150 million in bonds, ofwhich EUR 100 million will mature in December 2013 and EUR 50 million (privateplacement) in July 2012. Short-term interest-bearing loans of EUR 38.8 millioninclude EUR 35.0 million drawn from the EUR 250 million syndicated revolvingcredit facility maturing in November 2011, EUR 3.0 million in commercial papersissued under the EUR 250 million Commercial Paper Programme and EUR 0.8 millionusage of other short-term credit lines.INVESTMENTSAccrual-based investments totalled EUR 58.9 (97.9) million for the period.Capital expenditure, including financial leasing, accounted for EUR 57.5 (83.2)million and investments in subsidiary and associated company shares for EUR 1.4(14.5) million.PERSONNELThe number of full-time employees amounted to 16 663 (16 618) at the end ofDecember. Due to the exceptionally difficult market situation, Tieto startedpersonnel negotiations during spring 2009 to decrease the number of employeesthroughout the Group. As a result of the completed personnel negotiations,approximately 850 employees were given notice by the end of December.As a result of the measures to boost the offshore ratio, Tieto increased itsresources in offshore locations by around 800 in 2009. Year on year, the numberof employees in the global delivery centres had increased by 20% and amounted toabout 5 100 (4 280), or 30% (25) of the total headcount at the end of December.Global operations have grown fast, especially in India and China.The 12-month rolling employee turnover stood at 6.3% (12.8) at the end ofDecember. The average number of full-time employees was 16 568 (16 397) in thefull year. Wages and salaries for 2009 were EUR 739.4 (793.7) million. In2009, 73% (72) of personnel were male and 27% (28) female.BOARD OF DIRECTORS AND MANAGEMENTThe 2009 AGM re-elected the Board's current members Bruno Bonati, MarianaBurenstam Linder, Risto Perttunen, Olli Riikkala and Anders Ullberg. Inaddition, the meeting elected Kimmo Alkio and Markku Pohjola as new members.Anders Eriksson and Jari L?ivuori stayed on as personnel representatives. Atits constitutive meeting, the Board elected Anders Ullberg as its Chairman andOlli Riikkala as its Vice Chairman.The Board has two committees. The Remuneration and Nomination Committee iscomposed of Anders Ullberg (Chairman), Kimmo Alkio, Mariana Burenstam Linder andMarkku Pohjola. The Audit and Risk Committee is composed of Olli Riikkala(Chairman), Bruno Bonati, Risto Perttunen and Anders Ullberg.The new Leadership Team that was appointed in 2008 stepped in at the beginningof 2009. In May, Per Johanson was appointed Executive Vice President of Tieto'sFinancial Services and a member of the Leadership Team. In December, SampoSalonen was appointed Executive Vice President, Global Service Lines and amember of the Leadership Team as of 1 January 2010. Kavilesh Gupta, the previousHead of Global Services Lines, was appointed Executive Vice President, Customerand Market Operations (CMO) as of 1 January 2010. He took over theseresponsibilities from Pekka Viljakainen, who continues as Executive VicePresident, Tieto International. Both Gupta and Viljakainen continue as membersof the Leadership Team.The related parties of Tieto are its Board of Directors, President and CEO, theLeadership Team and the Group's joint ventures. The transactions with theGroup's joint ventures are specified in the notes to the Financial Statementswhich will be published on 23 February.Tieto is committed to good corporate governance and in addition to the relevantlegislation fully complies with the Finnish Corporate Governance Code issued bythe Securities Market Association of Finland in 2008. In accordance with theFinnish Corporate Governance Code, the company has prepared a separate CorporateGovernance Statement, which will be available on the company's websitewww.tieto.com on 23 February.SHARES AND SHARE-BASED INCENTIVESTieto Corporation's issued and registered share capital on 31 December 2009totalled EUR 75 841 523 and the number of shares was 72 023 173.On 1 January 2009, Tieto held a total of 361 650 own shares. Out of these,74 260 shares were conveyed, for free, to key personnel belonging to thecompany's Share Ownership Plan 2006-2008. A total of 1 500 of these Tieto shareswere returned, free of consideration, to the company. In May, the companyacquired 252 610 own shares related to Performance Share Plan 2009-2011. Thepurchases totalled EUR 2.6 million. At the end of 2009, the company held a totalof 541 500 shares, representing 0.75% of the shares and voting rights. Thenumber of outstanding shares (excluding the shares in the company's possession)was 71 481 673 at the end of 2009.The 2009 AGM decided to offer free of charge a maximum of 1 800 000 stockoptions 2009 to the key personnel and to a wholly-owned subsidiary of TietoCorporation. A total of 588 200 stock options 2009 A were subscribed by 241 keyemployees of the Tieto Group in December 2009. Undistributed stock options 2009were allocated to a wholly-owned subsidiary of Tieto Corporation.Tieto currently has six series of stock options issued for its key personnel,marked with the symbols 2006 A, B, C and 2009 A, B, C. The share subscriptionperiod with the 2002 A/B stock options ended on 30 June 2009. The sharesubscription period with the 2006 A stock options commenced on 1 March 2009. Nooptions were used for share subscription during 2009. Including the optionrights in the company's possession, the number of shares may increase by amaximum of 3 551 100.The company also has a synthetic option programme (Tieto Corporation PhantomOptions 2009) that was decided by the Board of Directors in autumn 2009. PhantomOptions 2009 are allocated to key employees of the Group based on performance inthose countries where stock options are not practical to be used. The maximumnumber of Phantom Options 2009 is 200 000. A total of 31 000 Phantom Options2009 A were allocated to 15 key employees in 2009.The Share Ownership Plan 2006?2008 ended in April in connection with theconveyance of a total of 74 260 existing Tieto shares. The shares were conveyedfor free to the key personnel belonging to the company's Share Ownership Plan.The Performance Share Plan 2009-2011 offered to the President and CEO and othermembers of the Leadership Team includes one three-year earning period, whichbegan on 1 January 2009 and will end on 31 December 2011. The rewards to be paidon the basis of the plan will correspond to a maximum of 540 000 Tieto shares.The amount of the reward will be determined and paid on the basis of theachievement of the EPS target after the financial statements have been preparedbefore the end of April 2012. No new shares will be issued in connection withthe plan.More information about the option programmes and share-based incentive plans areavailable at www.tieto.com.The 2009 Annual General Meeting authorized the Board of Directors to repurchasethe company's own shares or derivatives. The number of shares repurchased shallnot exceed 10% of the company's aggregate number of shares. The authorization isintended to be used to develop the company's capital structure. Theauthorization shall be in force until the close of the next Annual GeneralMeeting, however, until 26 September 2010 at the latest. The company executedthe repurchase of 252 610 shares in May 2009.The Board of Directors was also authorized to decide on the issuance of sharesas well as the issuance of options and other special rights entitling to shares.The authorization concerns both the issuance of new shares as well as thetransfer of treasury shares and is effective until 26 March 2014. Based on thisauthorization the share capital may increase by at most EUR 14 500 000,corresponding to approximately 20% of all company shares. However, out of theabove maximum amount of shares to be issued, no more than 620 000 shares,currently corresponding to approximately 1% of all of the shares in the company,may be issued as part of the company's share-based incentive plans. Thisauthorization was not used in 2009.FLAGGING ANNOUNCEMENTSOn 12 November, Cevian Capital announced that its holding in Tieto Corporationwas 4 033 843 shares which represents 5.6% of the shares and voting rights.DIVIDEND PROPOSALThe distributable funds of the Parent company amount to EUR 819 033 655.46 ofwhich net profit for the current year amounts to EUR 54 960 744.73. The Board ofDirectors proposes a dividend of EUR 0.50 (0.50) per share for 2009. Theproposed dividend payout does not endanger the liquidity of the company.CHANGE OF NAMEThe 2009 AGM resolved to amend sections 1 and 10 of the company's Articles ofAssociation. As of 30 April, the company name has been Tieto Corporation (TietoOyj in Finnish and Tieto Abp in Swedish), and the new domicile Helsinki,Finland.EVENTS AFTER THE PERIODIn January, Tieto started the construction of a new, more energy-efficient datacentre in Espoo, Finland. It will go into operation towards the end of 2010. Theinvestments in 2009 and 2010 are expected to total around EUR 18 million.In January, Tieto was chosen as one of ten IT-suppliers by the Legal, Financialand Administrative Services Agency in Sweden, Kammarkollegiet. The frameworkagreements with the chosen suppliers cover IT management services in the publicsector and will affect all government agencies, 232 municipalities as well as19 county councils and regions.On 26 January, OP-Pohjola Group announced that its group holding in Tieto hasfallen to 4.14%.NEAR-TERM RISKS AND UNCERTAINTIESWeak demand for IT services might lead to lower utilization of resources, hardprice competition in new agreements and price erosion in general. Additionally,competition has become even more aggressive and adequate offshore capability hasbecome an increasingly vital competitive factor.If the company is not able to adjust its cost base fast enough to compensate fornegative changes in the market, its profitability will decline. However, thecompany foresees that the risks of further large-scale deterioration of the ITmarket situation have declined from 2009.Due to fewer starts of new large-scale projects, the company anticipates thatits project risks are relatively small. Furthermore, credit risks related toreceivables have declined.OUTLOOK FOR 2010The IT services market started to show some signs of stabilization towards theend of 2009, and Tieto anticipates that the markets have now bottomed out. In2010, Tieto expects its net sales to develop in line with the IT services marketrelevant to Tieto and its operating profit to be higher than in 2009.AuditingThe full-year figures in this report are audited.Financial calendar for 2010Annual Report 2009 on Tieto's website on 23 FebruaryAnnual General Meeting on 25 MarchFirst-quarter interim report on 27 AprilSecond-quarter interim report on 21 JulyThird-quarter interim report on 27 OctoberAccounting policiesTieto has reclassified all internal long-term loans to Swedish subsidiaries as anet investment in a foreign operation according to IAS 21. All relatedunrealized foreign exchange gains and losses from the net investment arerecognized directly in shareholders' equity.Tieto has prepared these financial statements following the same accountingpolicies as in the annual financial statements for 2008, with the exception ofthe abovementioned reclassification and the effect of changes required by theadoption of the following standards, interpretations and amendments on 1 January2009: * IAS 1 (revised), 'Presentation of Financial Statements' - effective 1 January 2009. The revised standard prohibits the presentation of items of income and expenses (that is, 'non-owner changes in equity') in the statement of changes in equity, requiring 'non-owner changes in equity' to be presented separately from owner changes in equity in a statement of comprehensive income. As a result, the Group presents all owner changes in equity in the consolidated statement of changes in equity, whereas all non-owner changes in equity are presented in the consolidated statement of comprehensive income. Comparative information has been re-presented so that it also is in conformity with the revised standard. The change in accounting policy only impacts presentation aspects. * IFRS 8, 'Operating Segments' - effective 1 January 2009. The new standard replaces IAS 14, 'Segment Reporting', and aligns segment reporting with the requirements of the US standard SFAS 131, 'Disclosures about Segments of an Enterprise and Related Information'. The new standard requires a 'management approach', under which segment information is presented on the same basis as that used for internal reporting purposes. Tieto adopted a new financial reporting structure at the beginning of 2009. The countries are the main operating segments and reporting covers Finland, Sweden and International. The segments are reported in a manner that is consistent with the internal reporting provided to the chief operating decision-maker. The new standard requires some additional disclosures. Deviating from the standard, Tieto will start to report the Group's net sales by products and services in 2011. * IAS 23 (Revised), 'Borrowing Costs' effective 1 January 2009. The revised standard changes the accounting policy in respect of borrowing costs relating to qualifying assets for which the commencement date for capitalisation is on or after 1 January 2009. The borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset shall be capitalized as part of the cost of that asset. Previously all borrowing costs could be recognized as an expense immediately. The revised standard does not have an impact on the Group's financial statements as Tieto has on average a net credit position in contract activities. * IFRIC 11, 'IFRS 2 - Group and Treasury Share Transactions'. This interpretation does not have any impact on the Group's financial statements. * IFRIC 13, 'Customer Loyalty Programmes'. This interpretation does not have any impact on the Group's financial statements. * IFRIC 14, IAS 19 - 'The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction'. This interpretation is not relevant to the Group's operations. * IFRS 2 (Amendment), 'Share-based Payment' - vesting conditions and cancellations. The amendment does not have any impact on the Group's financial statements. * IAS 1 and 32 (Amendments), 'Financial Instruments Puttable at Fair Value and Obligations Arising on Liquidation'. The amendment does not have any impact on the Group's financial statements.- IFRS 1 and IAS 27 (Amendments) 'Cost of an Investment in a Subsidiary, JointlyControlled Entity or Associate in Adoption of IFRS'. The amendment does not haveany impact on the Group's financial statements, as the Group is not a first-timeadopter of IFRS. * IAS 39 (Amendment), 'Financial Instruments: Recognition and Measurement - Eligible Hedged Items'. The amendment does not have any impact on the Group's financial statements. * IFRS 7 (Amendment), 'Financial Instruments - Disclosures'. The amendment requires enhanced disclosures about fair value measurement and liquidity risk. In particular, the amendment requires disclosure of fair value measurements in terms of levels of a fair value measurement hierarchy. The change in accounting policy only results in additional disclosures in the financial statements.IASB published changes to 34 standards in May 2008 as part of the annualImprovements to IFRSs project. The amendments do not have any material impact onthe Group's financial statements. * IAS 1 (Amendment), 'Presentation of Financial Statements'. * IAS 16 and IAS 7(Amendments), 'Renting and Subsequent Selling of Assets'. * IAS 19 (Amendment), 'Employee Benefits'. * IAS 20 (Amendment), 'Accounting for Government Grants and Disclosure of Government Assistance'. * IAS 23 (Amendment), 'Borrowing Costs'. * IAS 27 (Amendment), 'Consolidated and Separate Financial Statements'. * IAS 28 (Amendments), 'Investments in Associates'. * IAS 31 (Amendment), 'Interests in Joint Ventures'. * IAS 36 (Amendment), 'Impairment of Assets'. * IAS 38 (Amendments), 'Intangible Assets'. * IAS 40 and IAS 16 (Amendments), 'Classification of Property'. * IAS 41 (Amendment), 'Agriculture'.The Group will apply following revised standards prospectively from 1 January2010: * IAS 27 (Revised), 'Consolidated and Separate Financial Statements'. The revised standard requires the effects of all transactions with non-controlling interests to be recorded in equity if there is no change in control and these transactions will no longer result in goodwill or gains and losses. The standard also specifies the accounting when control is lost. Any remaining interest in the entity is remeasured to fair value and a gain or loss is recognized in profit or loss. * IFRS 3 (Revised), 'Business Combinations'. The revised standard continues to apply the acquisition method to business combinations, with some significant changes. For example, all payments to purchase a business are to be recorded at fair value at the acquisition date, with some contingent payments classified as debt subsequently re-measured through the income statement. There is a choice on an acquisition-by-acquisition basis to measure the non-controlling interest in the acquiree either at fair value or at the non-controlling interest's proportionate share of the acquiree's net assets. All acquisition-related costs should be expensed.In addition to the new standards and interpretations presented in the annualfinancial statements for 2008, the following amended standards andinterpretations issued during the year 2009 will be adopted by the Group in2010 and the management is assessing the impact on the financial statements ofthe Group: 1) * IFRIC 18, 'Transfers of Assets from Customers'. * IFRIC 9 (Amendment) 'Reassessment of Embedded Derivatives' and IAS 39, 'Financial Instruments: Recognition and Measurement' (Amendment) - Embedded Derivatives. * IFRS 2 (Amendment), 'Share-based Payment' - Group Cash-settled Share-based Payment Transactions. * IFRS 1 (Amendment), 'First-time Adoption of Financial Instruments' - Additional Exemptions for First-time AdoptersIASB published changes to 12 standards or interpretations in April 2009 as partof the annual Improvements to IFRSs project. 1) * IFRS 2 (Amendment), 'Share-based Payment'. * IFRS 5 (Amendment), 'Non-current Assets Held for Sale and Discontinued Operations'. * IFRS 8 (Amendment), 'Operating Segments'. * IAS 1 (Amendment), 'Presentation of Financial Statements'. * IAS 7 (Amendment), 'Statement of Cash Flows'. * IAS 17 (Amendment), 'Leases'. * IAS 18 (Amendment), 'Revenue'. * IAS 36 (Amendment), 'Impairment of Assets'. * IAS 38 (Amendments), 'Intangible Assets'. * IAS 39 (Amendments), 'Financial Instruments: Recognition and Measurement'. * IFRIC 9 (Amendment), 'Reassessment of Embedded Derivatives'. * IFRIC 16 (Amendment), 'Hedges of a Net Investment in a Foreign Operation'.The following standards, interpretations and amendments will be adopted in 2011or later and the management is assessing the impact of this interpretation onthe financial statements of the Group: 1) * IAS 32 (Amendment), 'Financial Instruments: Presentation' - Classification of Rights Issues. * IAS 24 (Amendment), 'Related Party Disclosures'. * IFRIC 19, 'Extinguishing Financial Liabilities with Equity Instruments'. * IFRS 9, 'Financial Instruments', which represents the first milestone in the IASB's planned replacement of IAS 39.1) The standard, interpretation or amendment to published standard orinterpretation is still subject to endorsement by the European Union.The accounting policies will be described in more detail in the annual financialstatements for the year ended 31 December 2009.+--------------------------------------+-----+-----+-----+-----+----+----+-----+|Key figures | 2009| 2008| 2009| 2009|2009|2009| 2008|+--------------------------------------+-----+-----+-----+-----+----+----+-----+| |10-12|10-12| 7-9| 4-6| 1-3|1-12| 1-12|+--------------------------------------+-----+-----+-----+-----+----+----+-----+|Earnings per share, EUR | | | | | | | |+--------------------------------------+-----+-----+-----+-----+----+----+-----+|- basic | 0.36| 0.02| 0.25| 0.14|0.01|0.77| 0.83|+--------------------------------------+-----+-----+-----+-----+----+----+-----+|- diluted | 0.36| 0.02| 0.25| 0.14|0.01|0.77| 0.83|+--------------------------------------+-----+-----+-----+-----+----+----+-----+|Equity per share, EUR | 7.25| 6.75| 6.82| 6.46|6.31|7.25| 6.75|+--------------------------------------+-----+-----+-----+-----+----+----+-----++--------------------------------------+-----+-----+-----+-----+----+----+-----+|Return on equity rolling 12 month, % | 11.0| 12.6| 6.3| 7.8|10.2|11.0| 12.6|+--------------------------------------+-----+-----+-----+-----+----+----+-----+|Return on capital employed rolling 12 | 16.8| 25.2| 18.6| 18.5|25.3|16.8| 25.2||month, % | | | | | | | |+--------------------------------------+-----+-----+-----+-----+----+----+-----+|Equity ratio % | 46.0| 41.1| 43.2| 40.7|40.0|46.0| 41.1|+--------------------------------------+-----+-----+-----+-----+----+----+-----+|Net interest-bearing liabilities, EUR | 66.0|101.4|118.9|139.2|79.2|66.0|101.4||million | | | | | | | |+--------------------------------------+-----+-----+-----+-----+----+----+-----+|Gearing, % | 12.7| 21.0| 24.4| 30.1|17.5|12.7| 21.0|+--------------------------------------+-----+-----+-----+-----+----+----+-----+|Investments, EUR million | 15.7| 12.8| 12.7| 14.4|16.1|58.9| 97.9|+--------------------------------------+-----+-----+-----+-----+----+----+-----++----------------+----------------+----------+----------+----------+----------+| | 2009 | 2009 | 2009 | 2009 | 2009 ||Number of shares| | | | | || | 10-12 | 7-9 | 4-6 | 1-3 | 1-12 |+----------------+----------------+----------+----------+----------+----------++----------------+----------------+----------+----------+----------+----------+|Outstanding shares, end of period| | | | |+----------------+----------------+----------+----------+----------+----------+|Basic | 71 408 913|71 408 913|71 408 913|71 661 523|71 408 913|+----------------+----------------+----------+----------+----------+----------+|Diluted | 71 481 673|71 481 673|71 483 173|71 739 083|71 481 673|+----------------+----------------+----------+----------+----------+----------++----------------+----------------+----------+----------+----------+----------+|Outstanding shares, average | | | | |+----------------+----------------+----------+----------+----------+----------+|Basic *) | 71 408 913|71 408 913|71 523 980|71 661 523|71 499 888|+----------------+----------------+----------+----------+----------+----------+|Diluted | 71 481 673|71 481 934|71 599 183|71 739 083|71 574 507|+----------------+----------------+----------+----------+----------+----------++----------------+----------------+----------+----------+----------+----------+|Company's possession of its own shares | | | |+----------------+----------------+----------+----------+----------+----------+|End of period | 541 500| 541 500| 540 000| 361 650| 541 500|+----------------+----------------+----------+----------+----------+----------+|Average | 541 500| 541 239| 446 150| 361 650| 473 315|+----------------+----------------+----------+----------+----------+----------+*) Number of shares included in the calculation of basic Earnings per share.Shares conveyed in 2009 are excluded as they can be returned until end of 2010.+-------------+-------------------+----------+| | 2008 | 2008 |+-------------+-------------------+----------+| | 10-12 | 1-12 |+-------------+-------------------+----------++-------------+-------------------+----------+|Outstanding shares, end of period| |+-------------+-------------------+----------+|Basic | 71 661 523|71 661 523|+-------------+-------------------+----------+|Diluted | 71 739 083|71 739 083|+-------------+-------------------+----------++-------------+-------------------+----------+|Outstanding shares, average | |+-------------+-------------------+----------+|Basic | 71 661 523|71 661 523|+-------------+-------------------+----------+|Diluted | 71 739 083|71 739 083|+-------------+-------------------+----------++-------------+-------------------+----------+|Company's possession of its own shares |+-------------+-------------------+----------+|End of period| 361 650| 361 650|+-------------+-------------------+----------+|Average | 361 650| 403 945|+-------------+-------------------+----------++-------------------------------------------+-----+-----+-------+-------+------+|Income statement, EUR million | 2009| 2008| 2009| 2008|Change|+-------------------------------------------+-----+-----+-------+-------+------+| |10-12|10-12| 1-12| 1-12| %|+-------------------------------------------+-----+-----+-------+-------+------+|Net sales |440.6|492.0|1 706.3|1 865.7| -9|+-------------------------------------------+-----+-----+-------+-------+------+|Other operating income | 4.7| 2.4| 17.5| 10.8| 62|+-------------------------------------------+-----+-----+-------+-------+------+|Employee benefit expenses |243.3|278.8| 986.7|1 056.0| -7|+-------------------------------------------+-----+-----+-------+-------+------+|Depreciation and amortization | 17.5| 16.8| 70.7| 66.1| 7|+-------------------------------------------+-----+-----+-------+-------+------+|Other operating expenses |150.8|175.2| 591.1| 642.8| -8|+-------------------------------------------+-----+-----+-------+-------+------+|Operating profit (EBIT) | 33.7| 23.6| 75.3| 111.6| -33|+-------------------------------------------+-----+-----+-------+-------+------+|Interest and other financial income | 2.1| 3.7| 5.8| 8.8| -34|+-------------------------------------------+-----+-----+-------+-------+------+|Interest and other financial expenses | -4.2| -4.0| -13.7| -16.8| -19|+-------------------------------------------+-----+-----+-------+-------+------+|Net exchange losses/gains | 0.6|-16.7| 2.9| -21.2| -|+-------------------------------------------+-----+-----+-------+-------+------+|Profit before taxes | 32.2| 6.6| 70.3| 82.4| -15|+-------------------------------------------+-----+-----+-------+-------+------+|Income taxes | -6.5| -4.8| -15.2| -21.9| -31|+-------------------------------------------+-----+-----+-------+-------+------+|Net profit for the period | 25.7| 1.8| 55.1| 60.5| -9|+-------------------------------------------+-----+-----+-------+-------+------++-------------------------------------------+-----+-----+-------+-------+------+|Net profit for the period attributable to | | | | | |+-------------------------------------------+-----+-----+-------+-------+------+|Shareholders of the Parent company | 25.9| 1.6| 54.8| 59.9| -8|+-------------------------------------------+-----+-----+-------+-------+------+|Minority interest | -0.2| 0.2| 0.3| 0.6| -50|+-------------------------------------------+-----+-----+-------+-------+------+| | 25.7| 1.8| 55.1| 60.5| -9|+-------------------------------------------+-----+-----+-------+-------+------++-------------------------------------------+-----+-----+-------+-------+------+|Earnings attributable to the shareholders +-----+-----+-------+-------+------+|of the Parent company per share, EUR | | | | | |+-------------------------------------------+-----+-----+-------+-------+------++-------------------------------------------+-----+-----+-------+-------+------+|Basic | 0.36| 0.02| 0.77| 0.83| -7|+-------------------------------------------+-----+-----+-------+-------+------+|Diluted | 0.36| 0.02| 0.77| 0.83| -7|+-------------------------------------------+-----+-----+-------+-------+------++-------------------------------------------+-----+-----+-------+-------+------+Statement of comprehensive income, EUR million+----------------------------------------------------+----+-----+----+-----+---++----------------------------------------------------+----+-----+----+-----+---+|Net profit for the period |25.7| 1.8|55.1| 60.5| -9|+----------------------------------------------------+----+-----+----+-----+---+|Translation difference from the net investment in +----+-----+----+-----+---+|Swedish subsidiaries | | | | | || | | | | | ||(net of tax) |-0.3| -6.4| 8.2| -8.8| -|+----------------------------------------------------+----+-----+----+-----+---+|Translation differences | 5.2| -8.7| 7.2|-12.7| -|+----------------------------------------------------+----+-----+----+-----+---+|Total comprehensive income |30.6|-13.3|70.5| 39.0| 81|+----------------------------------------------------+----+-----+----+-----+---++----------------------------------------------------+----+-----+----+-----+---+|Total comprehensive income attributable to | | | | | |+----------------------------------------------------+----+-----+----+-----+---+|Shareholders of the Parent company |30.8|-13.5|70.2| 38.4| 83|+----------------------------------------------------+----+-----+----+-----+---+|Minority interest |-0.2| 0.2| 0.3| 0.6|-50|+----------------------------------------------------+----+-----+----+-----+---+| |30.6|-13.3|70.5| 39.0| 81|+----------------------------------------------------+----+-----+----+-----+---++------------------------------+-------+-------+------+|Balance sheet, EUR million | 2009| 2008|Change|+------------------------------+-------+-------+------+| | 31 Dec| 31 Dec| %|+------------------------------+-------+-------+------++------------------------------+-------+-------+------+|Goodwill | 402.0| 389.3| 3|+------------------------------+-------+-------+------+|Other intangible assets | 42.8| 53.1| -19|+------------------------------+-------+-------+------+|Property, plant and equipment | 100.1| 100.5| 0|+------------------------------+-------+-------+------+|Deferred tax assets | 66.9| 67.8| -1|+------------------------------+-------+-------+------+|Loan receivables | 5.0| 4.4| 14|+------------------------------+-------+-------+------+|Other non-current assets | 0.8| 1.5| -47|+------------------------------+-------+-------+------+|Total non-current assets | 617.6| 616.6| 0|+------------------------------+-------+-------+------+|Trade and other receivables | 444.1| 498.5| -11|+------------------------------+-------+-------+------+|Loan receivables | 3.9| 5.3| -26|+------------------------------+-------+-------+------+|Current income tax receivables| 6.4| 13.9| -54|+------------------------------+-------+-------+------+|Cash and cash equivalents | 123.3| 120.2| 3|+------------------------------+-------+-------+------+|Total current assets | 577.7| 637.9| -9|+------------------------------+-------+-------+------+|Total assets |1 195.3|1 254.5| -5|+------------------------------+-------+-------+------++------------------------------+-------+-------+------+|Share capital, share issue | | | |+------------------------------+-------+-------+------+|premiums and other reserves | 110.6| 109.0| 1|+------------------------------+-------+-------+------+|Retained earnings | 407.0| 373.0| 9|+------------------------------+-------+-------+------+|Parent shareholders' equity | 517.6| 482.0| 7|+------------------------------+-------+-------+------+|Minority interest | 0.7| 1.6| -56|+------------------------------+-------+-------+------+|Total equity | 518.3| 483.6| 7|+------------------------------+-------+-------+------++------------------------------+-------+-------+------+|Finance lease liability | 9.5| 14.5| -34|+------------------------------+-------+-------+------+|Loans | 150.0| 150.0| 0|+------------------------------+-------+-------+------+|Deferred tax liabilities | 33.6| 29.2| 15|+------------------------------+-------+-------+------+|Pension obligations | 18.9| 17.2| 10|+------------------------------+-------+-------+------+|Other non-current liabilities | 1.4| 1.6| -13|+------------------------------+-------+-------+------+|Total non-current liabilities | 213.4| 212.5| 0|+------------------------------+-------+-------+------+|Trade and other payables | 370.1| 447.5| -17|+------------------------------+-------+-------+------+|Current income tax liabilities| 8.2| 15.6| -47|+------------------------------+-------+-------+------+|Provisions | 46.5| 28.6| 63|+------------------------------+-------+-------+------+|Loans | 38.8| 66.7| -42|+------------------------------+-------+-------+------+|Total current liabilities | 463.6| 558.4| -17|+------------------------------+-------+-------+------+|Total equity and liabilities |1 195.3|1 254.5| -5|+------------------------------+-------+-------+------++-------------------------------------------+------+------+------+------+------+|Net working capital in the balance sheet, | | | | | ||EUR million | | | | | |+------------------------------------+------+------+------+------+------+------++------------------------------------+------+------+------+------+------+------+| | 2009| 2008|Change| 2009| 2009| 2009|| | | | | | | || |31 Dec|31 Dec| %|31 Mar|30 Jun|30 Sep|+------------------------------------+------+------+------+------+------+------++------------------------------------+------+------+------+------+------+------+|Accounts receivable | 313.9| 357.7| -12| 336.4| 312.1| 301.4|+------------------------------------+------+------+------+------+------+------+|Other working capital receivables | 129.4| 140.3| -8| 151.3| 156.5| 171.8|+------------------------------------+------+------+------+------+------+------+|Working capital receivables included| 443.3| 498.0| -11| 487.7| 468.6| 473.2||in assets | | | | | | |+------------------------------------+------+------+------+------+------+------++------------------------------------+------+---

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