Our dividend policy was updated in 2014 – the rest of the objectives remained unchanged
|EBIT margin 10% (reported)
||Profitability remained below our target level due to continued restructuring activities and high impairment charges. Our operating margin (EBIT) was 4.0% (5.3). However, the margin excluding one-off items rose to the target level and was 9.9% (8.8). The improvement reflects the efficiency measures initiated in 2013 and 2014 and good opportunities to further improve margins in IT services still remain.
|Annual increase in dividends in absolute terms (payout ratio at minimum 50% of net results)
||Our dividend has increased by 15% in average during the past years (CAGR 2009–2014). In 2014, the proposed dividend is up to EUR 1.00 (0.90) and additionally, an extra dividend of EUR 0.30 is proposed. Dividend yield is 6% and payout ratio 271%, including extra dividend.
|Net debt/EBITDA ratio: upper limit at 1.5 in the long run.
||Our capital structure is very strong and net debt/EBITDA declined to -0.4. The proposal to pay extra dividend addresses our objective to achieve a level close to 1. Tieto will maintain its capacity to invest in future growth both organically and inorganically after dividends.