Tieto Corporation · OMXHEX:TIETO
Tieto — Q1 2014 Earnings Presentation
15 slides from Tieto's earnings presentation, Apr 25, 2014
Slide 1: Tieto Q1/2014 – Continued profitability improvement
Tieto Q1/2014 Continued profitability improvement – encouraging growth in IT services 25 April 2014 Kimmo Alkio – President and CEO Lasse Heinonen – CFO Tanja Lounevirta – Head of IR 1 Public Q1 2014 in brief Continued profitability improvement – encouraging growth in IT services • In IT services, o
Slide 2: Market development
Public Market development • Tieto expects the Nordic overall market to grow by around 2% in 2014 • Clients continue to look for ways to apply new technologies to achieve additional cost savings • Longer-term opportunities for the renewal of old legacy systems and transformation into new platforms •
Slide 3: Technology changes drive new types of services
Technology changes drive new CAGR types of services Appr. 2% Tieto’s growth drivers in Q1 • CSI growth areas posting double- digit growth Over • Customer experience 20% management • Transformation consulting New or emerging • Enterprise applications types of services • Cloud services growing by 18%
Slide 4: Q1 2014 key figures
Public Q1 2014 key figures Net sales • EUR 387 (424) million, -8.7%, organic growth in local currency -1.4% • Divestments EUR 21 million MEUR % • Currency EUR -11 million • In IT services, organic growth in local currencies up by 3.3% 500 12 10.4 10.4 400 21 19 2 1 10 2 8.9 EBIT 300 7.3 7.3 8 • EBIT
Slide 5: Organic growth by Service Lines and Industry Groups
Organic growth in local currencies by Public Service Lines and Industry Groups 9% 1% -1% 150 125 -21% 100 Service 75 Q1 / 2013 Lines 50 Q1 / 2014 25 120 130 101 100 104 106 78 61 0 Managed Services Consulting and System Industry Products Product Development Integration Services Some business in a jo
Slide 6: Managed Services
Public Service Lines Financial Manufacturing, Public, Telecom, Product Services Retail and Healthcare Media and Development Logistics and Welfare Energy Services Industry Products Consulting and System Integration Managed Services Public Managed Services Net of divestments and acquisitions Customer
Slide 7: Consulting and System Integration
Public Consulting and System Integration Net of divestments and acquisitions Customer sales adjusted Customer sales EBIT, % excluding one-off items • EUR 100(108) million, down by 8% % • Organic growth in local currencies -1% MEUR 150 15 EBIT • EBIT EUR 11.1(3.8) million, 11.1% (3.5%) • EBIT excludi
Slide 8: Product Development Services
Public Product Development Services Net of divestments and acquisitions Customer sales adjusted Customer sales EBIT, % excluding one-off items • EUR 60 (86) million, down by 30% MEUR % • Organic growth in local currencies -21% 100 14 EBIT • EBIT EUR 1.1 (9.3) million, 1.9% (10.8%) 11.6 12 • EBIT exc
Slide 9: Financial Services; Manufacturing, Retail and Logistics
Public Financial Services Net of divestments and acquisitions Customer sales adjusted Customer sales • EUR 83 (80) million, up by 4% MEUR • Organic growth in local currencies 8%, comparable growth around 2%*) 100 1 Sales split by service line 2 1 1 1 75 Q1/14 Q1/13 MS 44% 42% CSI 20% 16% 50 IP 36% 4
Slide 10: Public, Healthcare and Welfare; Telecom, Media and Energy
Public Public, Healthcare and Welfare Net of divestments and acquisitions Customer sales Customer sales adjusted MEUR • EUR 100 (107) million, down by 6% • Organic growth in local currencies 1% 150 Sales split by service line 125 Q1/14 Q1/13 5 MS 39% 36% 100 5 CSI 24% 26% IP 37% 38% 75 Q1 highlights
Slide 11: Our way forward
Our way forward 2016+ Expand geographies 2015 Accelerate growth 2014 portfolio Reorienting for growth 2013 Execute the structure and Priorities for 2014 efficiency • Modernizing our customers 2012 Build the • Sales focus and new customer wins foundation • Launch new competitive services © Tieto Corp
Slide 12: Performance improvement in 2014 and full-year outlook
Public Performance improvement in 2014 • Sales development in 2014 is subject to customers’ IT spend, service focus and price development • In IT services, the company’s objective is to organically grow in line with the market • In Product Development Services, sales expected to decline in the full
Slide 13: Q1 2014 in brief
Public Q1 2014 in brief Continued profitability improvement – encouraging growth in IT services • In IT services, organic growth in local currencies at 3% • Improved performance in Consulting and System Integration and Managed Services • Volatility in Product Development Services continues 25 Public
Slide 14: Top customers 2014
Public Appendix © Tieto Corporation Public Top 10 customers 2014 • City of Stockholm • Ericsson • Finnish Tax Administration • IF Insurance • Nordea • NSN • OP-Pohjola Group • S-Group • Region Skåne • TeliaSonera Top 10 customers based on sales in alphabetical order 28
Slide 15: Financial calendar 2014
Public Financial calendar 2014 18 July Interim report 2/2014 23 October Interim report 3/2014 29