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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, as they can't be allocated to the segments on a reasonable basis. These costs are presented under Other costs in the below table.


Tecnotree has clarified during 2018 the way in which one-time costs are handled in segment reporting so that these do no impact the result of the segments. Comparative information has been changed accordingly.


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


Operating segments 2018

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






Net sales (external)
16,335 25,561
41,896






Segment result
7,698 6,426
14,124
Non-allocated items


-8,259 -8,259
Operating result before one-time costs *)


5,865
One-time costs **)


-591
Operating result



5,274






Operating segments 2017
EUR 1,000
Americas &
Europe
MEA &
APAC
Other
segments
Group
total






Net sales (external)
24,165 30,910
55,075






Segment result
9,210 10,167
19,378
Non-allocated items


-9,601 -9,601
Operating result before one-time costs



9,777
One-time costs



-17,751
Operating result



-7,974






Net sales from Finnish customers were EUR 549 (709) thousand and the total of all other countries EUR 41,437 (54,366) thousand. Non-current assets located in Finland at the balance sheet date were EUR 1,334 (1,528) thousand, and in other countries a total of EUR 1,646 (852) thousand.

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

**) one-time costs EUR 0,591 million related to redundancies.


Information about major customers


EUR 1,000
2018 2017


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






Customer 1, operating segment: Americas & Europe 14,834 35% 25,328 46%
Customer 2, operating segment: MEA & APAC 20,382 49% 22,194 40%