Tieto company presentation

1. Tieto
Company presentation

2. Today’s challenge
The world is changing at an
accelerating pace.
Disruption is a new normal, which
is a challenge for achieving and
sustaining growth.
Industry change can, however, also
provide great opportunities for those
who see what’s coming next and
have the agility to respond when
the time is right.

3. Changes in both human behaviour
and technology driving industry disruption
Real time
3 ©Tieto Corporation
Behavioural
change
Technology
disruption
Social
Cloud
Analytics
Mobile
Global
market
place
“Innovate or vanish” Higher clock speed
Customised
experience
Networked
New normal for efficiency

4. Digitalisation is centred around each individual
and is pushing the limits of technology
4 ©Tieto Corporation
Intelligent
machines
Privacy
& security
Energy
efficiency
Mass
customi-sation
Context
sensitivity
Technology expectations
• Unlimited computing
power and storage
• Real-time analytics
• Machine learning
• Security vulnerabilities

5. This is Tieto

6. Tieto’s story
By applying our deep industry
expertise, technology vision and
innovative thinking, we help our
customers cut through complexity and
master change.
In doing so, we inspire, engage and
deliver as we help our customers
accelerate their business to stay strong
in today’s global marketplace.
©Tieto Corporation

7. Operating countries
Tieto is the largest company in the Nordics
that provides full lifecycle services in IT, as
well as product development, for private
and public organisations.
Building on our Nordic heritage and values,
we have global capabilities and
a strong presence where our customers
need it – in the Nordics or via local
delivery centres across the globe.
7 ©Tieto Corporation
#1
#1
#1
in telecom R&D
in Europe
#3
in IT services
in Sweden
in IT services
in Finland

8. Net sales (EUR million)
Operating profit (EUR million)
EBIT (%)
Operating profit excl. one-off items (EUR million)
EBIT (% excl. one-off items)
Profit after taxes (EUR million)
EPS (EUR)
Net cash flow from operations
Gearing (%)
8 ©Tieto Corporation
2012
1 825.3
63.0
3.5
138.8
7.6
29.4
0.41
161.9
4.5
2013*
1606.8
85.7
5.3
141.2
8.8
62.2
0.86
159.0
3.0
Key figures
* Restated according to IFRS 11

9. Tieto’smarketposition:
#1 in Finland, #2 in Sweden, #7 in Norway
9 ©Tieto Corporation
Managed Services 31%
Consulting and System Integration 25%
Industry Products 26%
Product Development Services 18%
Managed Services 14%
Consulting and System Integration 21%
Industry Products 53%
Product Development Services 13%
Financial Services 20%
Forest 5%
Manufacturing 6%
Retail and Logistics 9%
Healthcare and Welfare 15%
Public Sector 9%
Telecom 25%
Media 3%
Energy 7%
Other 1%
Sales by industry
Sales by service line
EBIT by service line
*) Restated according to IFRS 11
**) Excluding capital gains, impairments and restructuring costs
Financial facts
Customer sales in 2013*):EUR 1607 million
EBIT margin excl. one-off items**): 8.8%

10. Our focus is the business value we create
To us, IT is business and business is IT
10 ©Tieto Corporation
Business
value
Technology vision
Industry insight
Innovative thinking
Technology expertise
End-customer insight
Global outlook

11. And we are committed to developing
society through technology
Services support
operations that are
critical for society
11 ©Tieto Corporation
More than 14.000
IT professionals
of which 8000 are
in the Nordics
Invest more than
EUR 100 million
annually in
technology
Recognized for
achievements in
corporate
responsibility

12. Tieto is an active corporate citizen in society
Our long-term objectives are:
• Create value for all stakeholders
• Be an ethical forerunner in society
• Minimise our environmental footprint
Our values are based on the United Nations
Global Compact principles for environmental
care, human rights, labor rights and
anticorruption, and the OECD Guidelines for
Multinational Enterprises.
These values are implemented throughout our
operations and value chain.
12 ©Tieto Corporation
Helped our
customers to
reduce their
CO2 emissions
by 183 kton
In 2013, Tieto…
Decreased our
CO2 emissions
by 19%
Was a
frontrunner in
CR reporting
Helped 11,000
street children
in India
through NGO
co-operation

13. Our strategy
2012 - 2016

14. Our strategy builds competitiveness
Reinforcing industry expertise
Building on our long customer relationships and customer core
process understanding as well as our possibility to combine
industry-consulting, technology expertise and own products (IPR).
Expanding to provide full lifecycle IT services
Investing in Consulting and System Integration capabilities, Managed
Services and the product portfolio that differentiates us as a full
lifecycle IT service provider.
Focusing on core markets
Focusing on the markets where Tieto has the opportunity to be among
the top 3 players in its field. The current core market is the Nordics. In
PDS, Tieto serves its customers worldwide.
Industries
Services
Markets
14 ©Tieto Corporation

15. Journey proceeds as planned
Build the
foundation
15 ©Tieto Corporation
Execute the
structure and
efficiency
Reorienting
for growth
Accelerate
growth
portfolio
Expand
markets
2012 2013 2014 2015 2016

16. We are investing in growth areas
16 ©Tieto Corporation
Big and high growth market in the Nordics by 2020
CAGR ~20%, EUR >5B CAGR ~50%, EUR >5B CAGR >4%, EUR ~1B
Industrial
Internet
Supporting customers’
business by extending
from pure equipment
sales to services
Lifecare
Leading Nordic
industry solution for the
healthcare and welfare
sector
Customer
Experience
Management
Creating competitive
advantage by
excelling in our
interaction with clients
Selected industry products: financial services, supply chain management, oil & gas
Cloud services, e.g. Tieto Cloud Server and Tieto Productivity Cloud
Modernization of services in application and infrastructure management

17. Product development service strategy
Industry
segments
Increase revenue
Decrease costs
Reduce risks
Reduce CAPEX
Key industry
trends
Next generation
mobile
networks
User experience SON
17 ©Tieto Corporation
“We increase
our customers’
business
results through
productivity
increase, faster
time-to-market
with quality,
and efficiency
through
repeatability”
NFV/SDN
Reference architectures, Proof-of-concepts, Industry forums
Technical
expertise
Processes, tools & labs
Transform business
models
Spearhead
consulting &
Technology
proof-points
Core services
General R&D
services
Industry
knowledge
Passionate
people
Our core
strategies
Product
development expertise
Small cells
Connectivity
R&D cloud
Product
end-of-life
Product
evolution
Product
transformation
New
product
innovation
Cloud services
Connected digital
lifestyle

18. Offshoring gradually increasing
Offshore rate at ~45%
Personnel Offshore %
16663 17757 18123 16537 14318
20000
15000
10000
5000
18 ©Tieto Corporation
Personnel
Onshore 55%
Czech 14%
India 11%
China 6%
Poland 5%
Other offshore 9%
30
37
40 42
45
50
40
30
20
10
0
0
2009 2010 2011 2012 2013
Primary expertise of each center
1%-point increase in offshoring = EUR 5 million impact on EBIT
Czech – Managed Services
India – CSI & Industry Products
China – Product Development Services
Philippines – Product Development Services
Poland – Product Development Services

19. Changing perspectives