Notes to the consolidated financial statements (IFRS)

16. 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 2014 31 Dec 2013
At 1 Jan       6.7 7.8
Disposals       -2.0 -1.1
Historical costs at 31 Dec       4.7 6.7
           
Equity adjustments          
At 1 Jan       14.8 15.3
Share of results       5.3 7.3
Dividends received       -5.9 -7.6
Disposal adjustments       0.5 -0.2
Other comprehensive income       -0.1 0.0
Equity adjustments at 31 Dec       14.6 14.8
           
Carrying value at 31 Dec       19.3 21.5
 
Equity adjustments includes Group level goodwill EUR 10.3 million.
 
Joint ventures at 31 Dec 2014
    Number of shares Share % Voting right % Carrying value EUR million
Tieto Esy Oy   7 300 80.0 34.0 6.3
TietoIlmarinen Oy   3 570 70.0 30.0 4.2
Tietokarhu Oy   8 000 80.0 20.0 8.8
          19.3
 
All joint ventures are located in Finland.
 
Tieto acquired the remaining 40% of the shares of FD Finanssidata Oy on 16 Dec 2014.
 
Joint ventures at 31 Dec 2013
    Number of shares Share % Voting right % Carrying value EUR million
FD Finanssidata Oy   60 000 60.0 42.9 1.5
Tieto Esy Oy   7 300 80.0 34.0 6.7
TietoIlmarinen Oy   3 570 70.0 30.0 4.3
Tietokarhu Oy   8 000 80.0 20.0 9.0
          21.5
 
Tieto sold the joint venture Fidenta Oy on 1 July 2013.
 
Financial information of Joint ventures at 31 Dec 2014
    FD Finanssidata Oy 1) Tieto Esy Oy TietoIlmarinen Oy Tietokarhu Oy
Non-current assets   - 0.1 0.1 0.4
Current assets   - 1.7 1.3 14.3
Cash and cash equivalents   - 5.6 3.6 -
    - 7.4 5.0 14.7
           
Other non-current liabilities   - 0.3 0.2 0.3
Other current liabilities   - 2.3 1.6 10.6
    - 2.6 1.8 10.9
           
Net sales   17.9 14.1 11.6 34.9
Expenses   -17.9 -11.6 -10.1 -30.2
Depreciation and amortization   0.0 0.0 0.0 -0.3
Interest income   0.0 0.0 0.0 0.1
Interest expenses   0.0 0.0 0.0 0.0
Other financial income and expenses   0.0 0.0 0.0 0.0
Profit before income tax   -0.0 2.5 1.5 4.5
Income tax expense   -0.0 -0.5 -0.3 -0.9
Net profit   -0.0 2.0 1.2 3.6
           
Dividends paid to Tieto   - 2.0 0.9 3.1
 
 
Financial information of Joint ventures at 31 Dec 2013
  FD Finanssidata Oy Fidenta Oy 2) Tieto Esy Oy TietoIlmarinen Oy Tietokarhu Oy
Non-current assets 0.5 - 0.1 0.0 0.6
Current assets 6.5 - 1.6 1.0 12.4
Cash and cash equivalents 0.6 - 6.1 3.9 -
  7.6 - 7.8 4.9 13.0
           
Other non-current liabilities 0.1 - 0.2 0.1 0.2
Other current liabilities 5.0 - 2.4 1.6 8.6
  5.1 - 2.6 1.7 8.8
           
Net sales 51.8 16.1 16.4 10.4 37.2
Expenses -51.7 -13.5 -13.2 -8.8 -31.8
Depreciation and amortization -0,0 -0.1 -0,0 -0,0 -0.3
Interest income 0.0 0.0 0.0 0.0 0.0
Interest expenses -0,0 -0.1 -0,0 -0,0 -0,0
Other financial income and expenses 0.0 0.0 0.0 0.0 0.0
Profit before income tax 0.1 2.4 3.2 1.6 5.1
Income tax expense -0.1 -0.6 -0.8 -0.4 -1.3
Net profit -0.0 1.8 2.4 1.2 3.8
           
Dividends paid to Tieto - 2.2 1.3 0.9 3.2
 
 
There are no commitments and contingencies related to joint ventures.