Inte

rnal

Inte

rnal

Inte

rnal

CEO ReviewCEO ReviewKimmo AlkioKimmo Alkio

Annual General Meeting 2015

© Tieto Corporation

Inte

rnal

2

Year 2014 – Reorienting for growth

• Solid execution of strategy

• Good development in IT services

• Steadily progressing towards 10% profit margin

• Significant service and competence renewal

© Tieto Corporation3

Digitalization creating a new world paradigm

New worldOld world

• Long product cycles• Channel-specific solutions• Slow market changes

• Global market• Agile, innovative enterprises• Networked economy

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Innovations

Orientation for growth

Effectiveness

Customer experience

Increased digital preference in consumer behavior impacting our customers and Tieto

4

Media

Utilities

Health-care

Telecom

Services

ITservices

Manu-facturing

Education

FS

Retail

Publicsector

© Tieto Corporation

Inte

rnalIT services companies need to transform both

the service portfolio and competencies

5

New services

New roles 34%

66%

73%

27%

TraditionalIT

100%

80%

60%

40%

20%

0%

Traditional roles

Emerging services

2012 2015 2020

Over-5%

Over20%

Traditional offerings

CAGR2-5%

© Tieto Corporation

Inte

rnal

Supporting our personnel in change

In year 2014

Approximately 81 hours / year in competence development / employee

Innovationsand new

service areas

7,9 MEUR in external

training – on average 600

EUR / employee

Re-employment

within the company

Strategyand year 2014

Inte

rnal

2012Build the

foundation

2013Execute the

structure and

efficiency

2014Reorienting for growth

2015Accelerate

growth portfolio

2016+Expand markets

Solid strategy executionSolid strategy execution

© Tieto Corporation

2014 key figures

9

Net sales• EUR 1 523 (1 607) million• In IT services, organic growth in local currencies 2.6%

EBIT• EBIT EUR 61.1 (85.7) million, 4.0% (5.3%)• EBIT excluding one-off items* EUR 150 (141) million, 9.9% (8.8%)

Order backlog • Order backlog EUR 1 784 (1 540) million

Earnings per share • EPS EUR 0.48 (0.86)• EPS excluding one-off items* EUR 1.56 (1.48)

*) Excluding capital gains, impairments and restructuring costs

1714 1828 1825 1607 1523

6.4 6.47.6

8.89.9

0

2

4

6

8

10

12

0

500

1 000

1 500

2 000

2010 2011 2012 2013 2014

Net Sales, EUR million EBIT excl. one-off items*,%

Managed Services 34%

Consulting and System Integration 25%

Industry Products 26%

Product Development Services 15%

Sales by Service Line

Five-year key figures

© Tieto Corporation

Key figures 2010–2014

10

143 123 162 159 168

8.36.7

8.9 9.9

0

5

10

15

0

50

100

150

200

2010 2011 2012 2013 2014Cash flow from operations, EUR million % of net sales

0.70 0.75 0.83 0.90 1.00

0.00.20.40.60.81.01.21.4

2010 2011 2012 2013 2014*) Additional dividend of EUR 0.30

Dividend/share, EUR

Cash flow from operations

0.3 0.4 0.2 0.1-0.4

-1.0

-0.5

0.0

0.5

1.0

1.5

2010 2011 2012 2013 2014

Net debt / EBITDA

17757 18123 16537 14318 13720

37 40 42 45 46

0

10

20

30

40

50

0

5000

10000

15000

20000

2010 2011 2012 2013 2014Personnel Offshore %

Employees %Personnel

11.0

0.30*

Next steps and year 2015

© Tieto Corporation

Strong Tieto DNA Culture

Open source cultureCulture

Open source culture ChoicesNordics, Enterprises and public and Full-lifecycle IT services

ChoicesNordics, Enterprises and public and Full-lifecycle IT services

Values• We work together

• We care for customers and employees

• We are committed to quality

• We learn and grow

Values• We work together

• We care for customers and employees

• We are committed to quality

• We learn and grow

StrategyPreferred digitalization partner to customers

StrategyPreferred digitalization partner to customers

PurposeWe are committed to

develop enterprises and society through information

technology

PurposeWe are committed to

develop enterprises and society through information

technology

HOW

InvestmentsCEM, Lifecare, Cloud, Industrial Internet, IPR, industrialization

InvestmentsCEM, Lifecare, Cloud, Industrial Internet, IPR, industrialization

Identity

Changing perspectives

WHAT

© Tieto Corporation

Cloud services, e.g. Tieto Cloud Server and Tieto Productivity Cloud

Targeted investments to accelerate growthInvestment level of EUR 50 million to be maintained in 2015 and new growth areas to be evaluated

13

Modernization of services in application and infrastructure management

Selected industry products: financial services, supply chain management, oil & gas

CAGR ~20%, EUR >5B CAGR ~50%, EUR >5B CAGR >4%, EUR ~1B

Big and high growth market in the Nordics by 2020

Customer Experience

ManagementIndustrial Internet

Lifecare

9% growth in Healthcare

Over 40% growth in

CEM

*) Traditional services within the CEM practice excluded

Over EUR 20 million *)sales in 2014

Customer pilots and solution concepting(incl. IPR) ongoing,

pipeline growing

HCW around EUR 160 million sales

in 2014

153% growth in cloud services

© Tieto Corporation

Inte

rnal

Smart Utility

TIPS (+HMI)

We have many highly competitive offerings driving our growth

14

Automated Infrastructure services and Cloud

Industrialized ADM

Cards

Smart Bank

Industrial Internet

Customer Experience

ManagementLifecare

Business and IT

consulting

Enterprise Applications

Vertical software and IPR

Value Networks

NewNew

Operative objectives 2015

Modernize our customers

Gain market share in IT services

Show results on growth investments

Customer experience and quality

© Tieto Corporation

Guidance for 2015

16

Tieto expects its full-year operating profit (EBIT) excluding one-off items to increase from the previous year’s level (EUR 150.2 million in 2014).

© Tieto Corporation

Tieto in Finland

Tieto is part ofevery day life

in Finland

We employ around 4 000 IT professionals in Finland,

over 13 000 globally.

We invest over 100 millioneuros* into technology and

services annually.We pay our taxes to Finland.

We support severalCorporate Responsibility

initiaves in India and the Nordiccountries.

* Included in capital expenditure and operattng expenses