Cash flow, financing and investments

Net cash flow from operations amounted to EUR 132.6 million (167.9), including the increase of EUR 15.0 (decrease 17.4) million in net working capital.

Tax payments were EUR 20.4 (7.0 including a refund of EUR 12.3 million in Finland) million in the full year. In January 2016, Tieto paid EUR 6.0 million based on the transfer pricing audit for tax years 2009–2013 in Finland. Further information in the Note 9 in Consolidated financial statements.

Full-year capital expenditure totalled EUR 50.5 (42.5) million, of which paid EUR 43.7 (43.0) million. Capital expenditure represented 3.5% (2.9) of net sales and was mainly related to data centres. Net payments for acquisitions totalled EUR 73.7 (positive 3.7) million in the full year. The divestment of Lean Systems had a positive effect of EUR 8 million on the full-year cash flow from investing activities.

The equity ratio was 46.2% (47.8). Gearing increased to 2.7% (-12.6). Interest-bearing net debt totalled EUR 13.2 (-59.2) million, including EUR 171.3 million in interest-bearing debt, EUR 6.7 million in finance lease liabilities, EUR 8.1 million in finance lease receivables, EUR 0.5 million in other interest-bearing receivables and EUR 156.2 million in cash and cash equivalents.

The EUR 100 million bond matures in May 2019 and it carries a coupon of fixed annual interest of 2.875%. Interest-bearing long-term loans amounted to EUR 105.0 million at the end of December. Interest-bearing short-term loans amounted to EUR 73.0 million, mainly related to commercial papers, joint venture cash pool balances and software licence financing. Tieto's syndicated revolving credit facility was refinanced in May 2015 by a new five-year EUR 150 million unsecured syndicated revolving credit facility with two one-year extension options. The credit facility was not in use at the end of December.