Tieto Corporation · OMXHEX:TIETO
Tieto — Tietoevry — Q1 2022 Earnings Presentation
21 slides from Tieto's earnings presentation, 2022
Slide 1: Strong organic growth of 5%
Q4 2022 Q1 2021 Strong organic growth of 5% Kimmo Alkio, President and CEO Tomi Hyryläinen, CFO
Slide 2: Strong organic growth of 5% - Q1 in brief
Strong organic growth of 5% Q1 in brief Growth driven by Healthy High attention on Six specialized Tietoevry Create, up profitability – employee safety in businesses by 15%, and Tietoevry adjusted operating Ukraine – limited established to Banking, up by 8% margin 11.6% business and customer drive g
Slide 3: Active market with growth potential – at extraordinary times
Active market with growth potential – at extraordinary times Our market growth estimate of War in Ukraine creating Talent market active – high 3% for 2022 unchanged potential risk in macroeconomic attrition and salary inflation outlook impacting growth and profitability Market driven by cloud-native
Slide 4: Q1'22 financials
Q1'22 financials oe
Slide 5: New reportable segments – specialized end to end businesses
New reportable segments – specialized end to end businesses Managing Dire ctor Core scop e of b usiness Tietoevry Create Christian Pedersen Digital consulting, analytics and software engineering services Tietoevry Care Ari Järvelä Software for health and care services Tietoevry Banking Christian Seg
Slide 6: Tietoevry Q1'22
Tietoevry Q1’22 Business highlights Organic growth* 5% Revenue EUR 730.9 million, organic growth* 5% Adj. EBITA** 11.6% (up 0.1%) Reported growth 2.7%, currency and divestment impact net EUR 12 million Adjusted EBITA** EUR 84.6 (82.1) million, 11.6% (11.5%) Strong growth in Tietoevry Create and Tiet
Slide 7: Tietoevry Create
Tietoevry Create Digital consulting, analytics and software engineering services Business highlights Organic growth* 15% Revenue EUR 218.1 million, organic growth* 15% Adj. EBITA** Adjusted EBITA** EUR 31.3 (26.9) million, 14.3% (14.3%) 14.3% (change 0.0%) High market activity in cloud native, data
Slide 8: Tietoevry Banking
Tietoevry Banking Software for financial institutions Business highlights Organic growth* 8% Revenue EUR 125.0 million, organic growth* 8% Adj. EBITA** 9.9% (down 0.3%) Adjusted EBITA** EUR 12.3 (11.6) million, 9.9% (10.2%) Healthy growth driven by Cards, Financial Crime Prevention and Credit Health
Slide 9: Tietoevry Care
Tietoevry Care Software for health and care services Business highlights Organic growth* 5% Revenue EUR 56.6 million, organic growth* 5% Adj. EBITA** Adjusted EBITA** EUR 16.6 (13.7) million, 29.3% (25.2%) 29.3% (up 4.1%) Continued growth in healthcare and welfare software, up by 10% Healthy profita
Slide 10: Tietoevry Industry
Tietoevry Industry Industry-specific software and data platforms Business highlights Organic growth* 3% Revenue EUR 71.0 million, organic growth* 3% Adj. EBITA** Adjusted EBITA** EUR 11.2 (12.8) million, 15.7% (15.5%) 15.7% (up 0.2%) Growth driven by Data Platform Services and Pulp & Paper software
Slide 11: Tietoevry Transform
Tietoevry Transform Enterprise IT services for select customers Business highlights Organic growth* 0% Revenue EUR 121.2 million, at Q1’21 level Adj. EBITA** Adjusted EBITA** EUR 10.3 (13.1) million, 8.5% (10.8%) 8.5% (down 2.3%) Healthy growth in Industry & Forest segment Decline in Retail & Financ
Slide 12: Tietoevry Connect
Tietoevry Connect Infrastructure capacity and services Business highlights Organic growth* -1% Revenue EUR 224.2 million, organic growth* -1% Adj. EBITA** 4.1% (down 0.4%) Adjusted EBITA** EUR 9.2 (10.1) million, 4.1% (4.5%) Cloud platforms and security services revenue growth 16% Traditional infras
Slide 13: CFO report
CFO report 13
Slide 14: CFO highlights
CFO highlights Q1 financials – strong growth Other items • Organic growth 5% - driven by Tietoevry Create and • New reportable segments implemented – six end-to-end Tietoevry Banking businesses operational • Adjusted operating margin EUR 84.6 million / 11.6% - in • War in Ukraine – limited impact to
Slide 15: Q1 cash flow – Net debt / EBITDA 1.1x
Q1 cash flow – Net debt / EBITDA 1.1x EUR 62 (95) million cash flow from operations 169 • Following seasonality in profitability MEUR 165 • Impacted by one-time items in quarter 95 92 116 • Impacted by higher tax and financial items 62 payments 56 57 Net working capital steady - minor increase of EU
Slide 16: Other finance related topics
Other finance related topics Divestments Attrition and inflation The transfer of the Indian operations of the previously High attrition level continues – rolling 12-month attrition announced divestment of Oil & Gas is completed increased to 16.5% in Q1’22 (14.6% in Q4’21), compared • Transfer of ca.
Slide 17: Performance drivers – Q2'22
Performance drivers – Q2’22 • Continued good momentum in Tietoevry Create and Tietoevry Banking • Q2 growth in Tietoevry Care will be impacted negatively ~10%-points by Growth drivers extraordinary license sales in Q2’21 • Tietoevry Industry growth will be impacted by a large ending customer contrac
Slide 18: Sustainability and way forward
Sustainability and way forward 18
Slide 19: Continued focus on our sustainability agenda - Science Based Targets verified
Continued focus on our sustainability agenda - Science Based Targets verified 1.5ºC Tietoevry has People aligned its actions to the highest ambition level to limit global warming below Planet Impact Society through customers Own Ethical operations Climate We commit to: conduct action • Reduce 90% of
Slide 20: Way forward
Way forward Developers of Digital Futures Growth agenda Strong employee Focus on safety and Tietoevry Connect materializing – engagement – talent wellbeing of Ukrainian performance execution through attractiveness building colleagues while acceleration six specialized end on career opportunities ens
Slide 21: Thank you
- ee 2s @ hank you wis tietoeucy