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


Operating segments 2019

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






Net sales (external)
14,873 32,118
46,991






Segment result
6,971 14,900
21,871
Non-allocated items


-8,913 -8,913
Operating result before one-time costs *)


12,958
One-time costs **)


1,415
Operating result



14,373






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






Net sales from Finnish customers were EUR 717 (549) thousand and the total of all other countries EUR 46,990 (41,437) thousand. Non-current assets located in Finland at the balance sheet date were EUR 290 (1,334) thousand, and in other countries a total of EUR 6,475 (1,646) thousand.

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

**) one-time income EUR 1,415 million related to sale of Espoo office premises

Information about major customers


EUR 1,000
2019 2018


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






Customer 1, operating segment: Americas & Europe 12,250 26% 14,834 35%
Customer 2, operating segment: MEA & APAC 25,339 54% 20,382 49%