1. Segment reporting

The operating segments under IFRS 8 reported by Tecnotree are the geographical areas, which are Europe & Americas (Europe, North, Central and South America), MEA & APAC (Middle East and Africa & Asia Pacific ). This is because their results are monitored separately in the company’s internal financial reporting. Tecnotree’s ultimate chief operating decision maker, as referred to in IFRS 8, is the Group’s management board.


Net sales and the result for the operating segments are presented based on the location of customers. The result for the operating segments includes the costs that can be allocated to the segments, being costs of sales and marketing, customer service and delivery functions as well as product development. Costs for product management and administration, depreciations, taxes and financial items are not allocated to the segments.


The result of the operating segment is the net of sum obtained after adding other operating income to the net sales and then deducting purchasing costs adjusted by the change in stocks of finished products and work in progress, and other operating expenses that can be allocated to the segments on a reasonable basis. These are costs of sales and marketing, customer service and delivery functions as well as product development costs. Other segments item include depreciations as well as such administration and other operating expenses that can't be allocated to the segments on a reasonable basis.



Tecnotree does not allocate its assets to the operating segments for the reporting purposes.


Operatig segments 2016

EUR 1,000
Americas &
Europe
MEA &
APAC
Other
segments
Group
total






Net sales (external)
24,975 35,100
60,075






Segment result
-11,394 2,013
-9,381
Non-allocated items


10,616 10,616
Operating result before one-time costs *)


1,235
One-time costs **)


-11,325
Operating result



-10,090






Operatig segments 2015
EUR 1,000
Americas &
Europe
MEA &
APAC
Other
segments
Group
total






Net sales (external)
35,047 41,416
76,462






Segment result
7,832 16,994
24,826
Non-allocated items


-12,859 -12,859
Operating result before one-time costs *)


11,967
One-time costs **)


-312
Operating result



11,654






Net sales from Finnish customers were EUR 839 (1,338) thousand and the total of all other countries EUR 59,236 (75,124) thousand. Non-current assets located in Finland at the balance sheet date were EUR 1,845 (2,140) thousand, and in other countries a total of EUR 18,688 (19,892) thousand.

*) Operating result before one-time costs = Adjusted operating result

**) One-time costs 2016 = include EUR 9.0 million write-down related to delivery on convergent online charging solution and EUR 2.3 million (EUR 0.3 million 2015)) one-time costs related to redundancies.

Information about major customers






EUR 1,000
2016 2015


Net sales % of the Group's net sales Net sales % of the Group's net sales






Customer 1, operating segment: Americas & Europe 21,772 36% 28,128 37%
Customer 2, operating segment: MEA & APAC 23,864 40% 33,348 44%