2011-02-10 07:00:00 CET
2011-02-10 07:00:28 CET
REGULATED INFORMATION
Tieto Oyj - Interim report (Q1 and Q3)
TIETO's interim report 4/2010 (January-December) and financial statements bulletin 2010 - Fourth-quarter sales up 7%, profitability strained by one-off costs
Tieto Corporation INTERIM REPORT 10 February 2011, 8.00 am EET
To download the PDF file, please use this link:
http://hugin.info/3114/R/1487381/422810.pdf
October-December highlights
* Net sales totalled EUR 472.2 (440.6) million, an increase of 7%.
* Order intake at EUR 581 (555) million.
* Operating profit (EBIT) amounted to EUR 6.4 (33.7) million, representing an
operating margin of 1.4% (7.7).
* Operating profit excluding one-off items was EUR 33.5 (38.5) million,
representing an operating margin of 7.1% (8.7).
* Profit after taxes was EUR 1.4 (25.7) million.
* Net cash flow from operations amounted to EUR 72.4 (71.7) million.
January-December highlights
* Net sales remained at the previous year's level at EUR 1 713.7 (1 706.3)
million.
* Order intake was EUR 2 030 (1 841) million.
* Operating profit (EBIT) amounted to EUR 72.4 (75.3) million, representing an
operating margin of 4.2% (4.4).
* Operating profit, excluding one-off items, amounted to EUR 110.0 (108.0)
million, 6.4% (6.3) of net sales.
* Profit after taxes was EUR 49.5 (55.1) million.
* Net cash flow from operations amounted to EUR 142.9 (126.4) million.
* Dividend proposal: EUR 0.70 (0.50) per share.
Outlook for 2011
The IT services market started to recover in the latter part of 2010. For 2011,
industry analysts expect growth of 2-4% for the IT services market in Western
Europe.
In 2011, Tieto expects its net sales to develop in line with the Western
European IT services market. Full-year operating profit excluding one-off items
is expected to be better than in 2010 (EUR 110.0 million in 2010).
Q4/2010 Q4/2009 Jan-Dec/ Jan-Dec/
2010 2009
--------------------------------------------------------------------------------
Net sales, EUR million 472.2 440.6 1 713.7 1 706.3
Change in net sales, % 7 -10 0 -9
Operating profit (EBIT), EUR million 6.4 33.7 72.4 75.3
Operating margin, % 1.4 7.7 4.2 4.4
Operating profit excl. one-off items, EUR 33.5 38.5 110.0 108.0
million
Operating margin excl. one-off items, % 7.1 8.7 6.4 6.3
Profit after taxes, EUR million 1.4 25.7 49.5 55.1
Net cash flow from operations, EUR million 72.4 71.7 142.9 126.4
EPS, EUR 0.02 0.36 0.69 0.77
--------------------------------------------------------------------------------
Hannu Syrjälä, President and CEO:"The final quarter of 2010 showed that the IT services market has now turned
around. Our net sales grew by 7% as practically all industries have started to
grow. From the geographical point of view, growth was strongest in Sweden
boosted by new contracts signed in 2010 as well as strong demand in the finance
sector. In telecom, volumes in man-hours are increasing, but top-line is
strained by increasing use of offshore resources. Overall profitability was
hampered by the substantial restructuring of our international businesses, and
price erosion also had a negative impact on the underlying profitability.
During the year, we signed a number of important new customer contracts, leading
to a book-to-bill ratio of 1.18 for the full year. Even if the year was flat for
Tieto in terms of sales growth and profitability, we made excellent progress in
our transformation and are well positioned to capture our share of the
anticipated growth in IT markets. Demand is clearly picking up and our new
operating model further builds our competitiveness. The new model aims for a
leaner structure with faster decision making, higher efficiency, as well as
increased customer and market focus. We have also continued to increase our
offshoring presence and today 37% of our employees are working in global
delivery centres.
Going forward, the main growth drivers for Tieto are our strong offerings in
outsourcing areas and specific industry solutions -Tieto's traditional areas of
excellence. Cloud services and mobility are the other key areas where we see an
increasing amount of growth opportunities and we plan to fully utilize them."
MARKET DEVELOPMENT
The IT services market in Western Europe was flat in 2010. Outsourcing of ICT
infrastructure and application management as well as business process
outsourcing were active throughout the year whereas demand for project services
was stagnant. Buying patterns in the IT sector were back-end loaded, supported
by year-end sales of new software licenses.
For 2011, industry analysts' estimates indicate growth of 2-4% for the IT
services market in Western Europe. The overall global IT market is expected to
see even greater growth due to rising demand, especially in the emerging
markets. Demand for new development projects aiming at growth or enhanced
customer services is picking up, for example in the finance, industrial
manufacturing, media and telecom sectors. Going forward, mobile applications
comprise a clear growth area. Price pressure continues and improvements in
productivity and efficiency remain among key the drivers in buying IT. Hence,
outsourcing of IT is expected to be the strongest growth area in 2011 as well.
The outsourcing trend is now extending from large companies to small and medium-
sized companies. Customers emphasize offshoring in their sourcing strategies,
putting pressure on prices.
Going forward, new service models have a key role in customers' IT strategies.
The transition from traditional IT projects to models where customers buy IT, or
functionality, as a service is accelerating. Companies worldwide indicate that
service-based IT - or cloud services - is a key initiative for them, and budgets
in this area for 2011 are expected to grow by double-digit numbers, albeit from
low levels. In 2015, cloud services are forecast to account for 20% of the IT
market. At Tieto, cloud services currently account for less than 5% of net
sales.
As customers are now choosing to have IT delivered as a service via the internet
instead of investing in their own IT systems, IT ties up less capital. Thanks to
its scalability, this service is more affordable, attracting new user groups to
utilize IT. Customers are billed based on time consumed or number of
transactions or users. As cloud applications need only an internet connection
and they also work on mobile devices, they are expected to attract more users
and lead to higher business volumes.
In the telecom sector, companies have gradually started investing. Both the
operator segment and the mobile device manufacturers segment picked up in the
first half of 2010, boosted by new technologies. Positive development is now
visible also in the network equipment manufacturers segment. Offshore-based
operations are a crucial part of service provision in the telecom sector. Demand
for spearhead competences in some hype areas has increased, resulting in
resource shortage.
In the finance sector, the market is growing and Sweden is currently the
strongest market for Tieto. In Finland, the pension insurance segment was
declining in 2010 but bottomed out towards the year end. The mortgages market in
the UK has also begun to recover. The IT outsourcing market remained strong.
Banks have also started to invest in their existing IT systems by consolidating
their current systems as well as in new applications, as they are seeking to
transfer more services to the internet.
Market development by country
In Finland, the outsourcing market continued to grow throughout the year.
Project business remained at a modest level, although the number of development
initiatives increased towards the year end. Demand for IT services is expected
to continue at a good level in the energy, healthcare and welfare sectors.
Positive development is also expected in the finance sector and the industrial
manufacturing sector in 2011. In the public sector, Tieto expects moderate
growth to continue.
In Sweden, demand for IT services, especially the outsourcing of IT, is at a
healthy level. Despite higher volumes, the total value of the Swedish IT
services market did not grow in 2010 due to price competition, which has
remained hard. Growth expectations for the Swedish IT market in 2011 are
slightly higher than those for Finland, but on the other hand, vendors in Sweden
are facing resource shortages within some key competence areas, such as project
management.
In Russia, the IT market started to recover in 2010. In 2011, demand is expected
to grow for project services driving cost-efficiency and customer satisfaction,
especially in consumer-driven businesses like retail banking, retail and
telecom. Demand is expected to grow also in the manufacturing, oil & gas and
food industries. The emergence of the outsourcing market is slower than was
earlier estimated by analysts.
In Germany, the IT market started to recover in the second half of 2010 and is
expected to remain active in 2011. The markets for local telecom R&D are weak,
but demand in the healthcare sector is brisk. The manufacturing market has
recovered and investment planning has been started.
In Norway, demand is picking up and interest in restarting IT projects has
increased. A strong outlook is indicated by companies in the oil & gas segment.
Positive development is also expected in the healthcare sector.
BUSINESS TRANSACTIONS AND MAJOR AGREEMENTS IN JANUARY-DECEMBER
In January, the Legal, Financial and Administrative Services Agency in Sweden,
Kammarkollegiet, chose Tieto as one of its ten IT-suppliers. The framework
agreements with the chosen suppliers cover IT management services in the public
sector and will affect all government agencies, 232 municipalities as well as
19 county councils and regions.
In March, Tieto acquired T&T Telecom, an IT and consultancy company specializing
in services for telecom operators. The company employs approximately 70 people
and has offices in St. Petersburg and Moscow, Russia
In March, Tieto divested the shares of TietoEnator Majiq, previously responsible
for the company's pulp and paper operations in North America. The company
employed close to 60 people. In the forest sector, Tieto now focuses on Europe
and the growth markets in China and Russia.
In March, Tieto and Yleisradio (YLE) agreed that Tieto will acquire 20% of Tieto
Broadcasting IT Oy's share capital. Tieto Broadcasting IT was previously owned
by Tieto (80%) and YLE (20%). In 2009, Tieto Broadcasting IT's net sales
amounted to EUR 22.7 million. The transaction was completed at the beginning of
June.
In April, Tieto agreed to sell its French subsidiary to the French IT company
Devoteam. In 2009, net sales from the sold entity were EUR 28.5 million.
Altogether Tieto has booked EUR 7.3 million in impairment losses and EUR 0.4
million in restructuring costs related to the divestment.
In June, Tieto and the City of Stockholm decided to continue cooperation in IT
and telephony services and concluded an agreement that runs from August 2012
until July 2014. The order value during the extension period is more than SEK
600 million (approximately EUR 60 million), of which Tieto's proportion is about
SEK 300 million (approximately EUR 30 million). The delivery will be made in
cooperation with SiriusIT, Aditro, Agresso and TeliaSonera.
In June, Skåne Regional Council chose Tieto as its outsourcing partner. The deal
is valued at SEK 516 million (approximately EUR 50 million) during five years.
In June, Tieto and the Finnish State Treasury concluded an agreement on
operating services. Tieto delivers IT operating services to the Finnish State
Treasury and the related Government IT Shared Service Centre until 2016. The
delivery also includes an extensive operating service development plan for the
whole contract period. The value of the contract is approximately EUR 20
million.
In June, If P&C Insurance concluded a new five-year IT services agreement with
Tieto as a one-stop supplier. The contract includes operations management
services for If's IT systems in the Nordic countries. The total value of the
contract is approximately EUR 160 million.
In June, Tieto acquired the business of the Finnish healthcare IT solutions
provider Intensium Oy to strengthen its position in the healthcare market. The
business was transferred to Tieto on 1 July 2010. Intensium's 17 employees
joined Tieto.
In September, Tieto announced the signing of a share purchase agreement
concerning a majority ownership in TrustInfo, a Russian company currently
providing a full range of data centre services in Russia. The Russian Federal
Antimonopoly Service approved the transaction in January 2011, and the agreement
is expected to be signed during the first quarter of 2011. After the signing, a
holding company fully owned by Tieto will own 70% of the shares in TrustInfo. I-
Teco, a leading Russian IT service and consulting company, owns the remaining
30%. The initial investment amounts to approximately EUR 17 million.
In September, Tieto and Sanoma signed a significant agreement on centralizing
administrative IT services to Tieto starting from 2 September 2010. The
agreement covers among others the financial systems, e-mail and intranet
solutions of the Sanoma Group in Finland and as an option, partially in the
Baltic countries.
In November, Tapiola, a Finnish customer-owned group offering insurance, bank,
savings and investment services, decided to centralize selected ICT operating
services to Tieto. The total value of the five-year agreement is approximately
EUR 23 million. The service agreement will commence after the migration phase in
autumn 2011.
In December, Hafslund ASA, one of the leading Nordic energy companies, signed an
agreement to purchase a new billing system from Tieto Norway AS. The system is
designed to handle the next generation advanced meter and control systems (AMS)
that all energy companies in Norway will be required to implement. The total
value of the agreement amounts to around EUR 14 million.
In December, the Swedish Legal, Financial and Administrative Services Agency and
Tieto signed a frame agreement for services supporting e-government at
municipalities, county councils and government agencies. The agreement covers
six suppliers and is estimated to result in call-offs equivalent to SEK 200
million per year over a five-year period.
In December, Tieto announced that it has made an agreement with Nokia Siemens
Networks on outsourcing part of the device management software development
related to base station products to Tieto. As a result, more than 30 persons
have joined Tieto.
ORDER BACKLOG
The order backlog, which only comprises services ordered with binding contracts,
amounted to EUR 1 574 (1 258) million at the end of the period. In total, 60%
(63) of the backlog is expected to be invoiced during 2011. Order intake in
2010 saw the strongest growth in Sweden.
STREAMLINING ACTIONS
In 2010, Tieto continued the transfer of operations to offshore countries and
the streamlining of the company to improve its performance, especially in Tieto
International. These actions included the renewal of business structures and
strategy in Germany, office consolidations and personnel-related measures in
selected countries. The total one-off costs related to the restructuring actions
during 2010 amounted to EUR 30.4 million. The majority of the cash flow effect
is expected to materialize in the second half of 2011. A considerable part of
the one-off costs concerns Germany. During the year, Tieto also booked
impairment losses of EUR 7.6 million related to the divestment of its operations
in France and the USA, and a capital gain of EUR 0.4 million.
FINANCIAL PERFORMANCE IN OCTOBER-DECEMBER
Fourth-quarter net sales rose by 7% and amounted to EUR 472.2 (440.6) million.
The stronger currencies, especially the Swedish krona, had a positive EUR 18
million impact on net sales. On the other hand, the increase in net sales was
curbed by the divestments of the pulp and paper operations in North America and
Tieto's French subsidiary in 2010. The divestments had a negative EUR 8.2
million impact on net sales in the fourth quarter. When eliminating the impacts
of the divestments and currency effects, net sales of the underlying business
grew by 5%.
The strongest performance was seen in the finance sector, which benefited from
strong sales in the Capital Markets segment, especially in Sweden, and good
demand for ICT infrastructure services. In the telecom sector, Tieto's net sales
remained flat. In other sectors, net sales were growing, energy and healthcare
and welfare being the strongest sectors. Outsourcing of IT operations remained
brisk in all sectors.
Price pressure has continued, but it has been easing up towards the year end.
Volumes in terms of man-hours are up by around 9%, compared with the 3% increase
in net sales adjusted for exchange rates. Earlier in 2010, the difference
between these two measures was closer to 10%-points.
Fourth-quarter operating profit (EBIT) amounted to EUR 6.4 (33.7) million,
representing a margin of 1.4% (7.7). The company continues to drive its
structural improvements and transfer of operations to offshore countries.
Operating profit includes one-off costs of EUR 27.1 million, mainly booked as
provisions in personnel costs. Of the one-off items, EUR 20.3 million were
booked in Tieto International. Operating profit excluding one-off items stood at
EUR 33.5 (38.5) million, or 7.1% (8.7) of net sales. Weaker profit was partly
attributable to price erosion. Personnel costs excluding restructuring costs and
currency effects were up by EUR 11 million.
Net financial expenses stood at EUR 0.7 (1.5) million in the fourth quarter. Net
interest expenses were EUR 1.3 (1.9) million and net gains from foreign exchange
transactions EUR 0.6 (0.6) million. Other financial income and expenses amounted
to EUR 0.0 (0.2) million.
Fourth-quarter earnings per share (EPS) totalled EUR 0.02 (0.36).
Financial performance by country
Net sales in Net sales in Operating Operating
Q4/2010, EUR Q4/2009, EUR margin in margin in
million million Change, % Q4/2010, % Q4/2009, %
--------------------------------------------------------------------------------
Finland 240 233 3 9.1 14.6
Sweden 146 125 16 8.2 6.3
International 143 139 3 -12.0 1.7
Group elimination -57 -56 2
Total 472 441 7 1.4 7.7
--------------------------------------------------------------------------------
In Finland, net sales grew by 3%. The increase was mainly due to high volumes in
ICT infrastructure management services. Besides the energy sector, which
benefited from booming demand for automatic meters, the retail and logistics,
manufacturing and the healthcare and welfare sectors saw strong growth. Net
sales in the finance sector continued to slide, although the drop in demand in
the pension insurance segment is bottoming out. Fourth-quarter operating profit
amounted to EUR 22.0 (33.9) million, or EUR 26.8 (33.4) million excluding one-
off items. Operating margin was 9.1% (14.6), or 11.2 % (14.3) excluding one-off
items. Profitability weakened partly due to somewhat higher personnel expenses
including larger bonus accruals. The company also increased the use of external
resources due to the short-term shortage of staff.
In Sweden, net sales grew by 16%. In local currency, net sales grew by 4%,
supported by the positive impact of new contracts. Sales development in the
finance, public and healthcare and welfare sectors was strong, whereas Tieto's
net sales continued to slide in the manufacturing industry. Operating profit
amounted to EUR 11.9 (7.9) million, or 8.2% (6.3) of net sales. As a result of
well-managed cost control and the high utilization rate, operating profit
excluding one-off items rose to EUR 12.3 (7.0) million, or 8.4% (5.6) of net
sales.
In International, net sales rose by 3%. The divestments of operations in North
America and France had a negative EUR 8.2 million impact on net sales. On the
other hand, the stronger currencies had a positive impact of EUR 2 million. When
eliminating divestments and changes in currencies, net sales grew by 7%. Growth
is mainly attributable to growing operations in delivery countries, but focus
countries like Russia and Norway also contributed to growth.
Operating profit of Tieto International amounted to EUR -17.2 (2.4) million, or
-12.0% (1.7) of net sales in the fourth quarter. Operating profit included 20.2
million in restructuring costs of which a considerable part concerns renewal of
business structure and strategy in Germany. Operating profit excluding one-off
items amounted to EUR 3.1 (7.8) million, and operating margin excluding one-off
items was 2.2% (5.6). Operating profit was unsatisfactory due to weak
performance in a few go-to-market countries.
Net sales by customer sector
Net sales in Q4/2010, Net sales in Q4/2009,
EUR million EUR million Change, %
----------------------------------------------------------------------
Telecom 150 149 0
Finance 97 89 9
Industry sectors 225 203 11
Total 472 441 7
----------------------------------------------------------------------
In the telecom sector, Tieto's net sales remained flat. The positive currency
effect offsets the negative impact of the divestment in France. The operators
segment and network equipment manufacturers segment saw positive development,
especially in Sweden. In the mobile device manufacturers segment, the market
situation of some customers led them to reduce their spending, and this resulted
in lower net sales.
In the finance sector, net sales grew by 9%. Excluding the positive currency
effect, net sales rose by around 7% due to strong sales in the Capital Markets
segment and good demand for ICT infrastructure services. Sweden was the
strongest market, but net sales in Finland also turned to growth. The fourth
quarter is typically a strong one for the finance business due to license sales.
In 2009, however, the fourth quarter was relatively weak, resulting in a low
comparison figure for the quarter.
In the industry sectors, net sales rose by 11%. Excluding currency effects and
the divestment of the pulp and paper operations in North America, net sales rose
by around 8%. Growth was strongest in the healthcare and welfare and the energy
sectors. In the industrial manufacturing sector, net sales in Finland were
growing, but in Sweden, the market is still weak. In Tieto's reporting, the
industry sectors cover customers in healthcare and welfare, forest, energy,
manufacturing, automotive, public, retail and logistics.
FINANCIAL PERFORMANCE IN JANUARY-DECEMBER
Full-year net sales amounted to EUR 1 713.7 (1 706.3) million. The increase in
net sales was curbed by the divestments of the pulp and paper operations in
North America and Tieto's French subsidiary in 2010 and the one-off income of
EUR 13.2 million included in net sales for 2009. The divestments had a negative
EUR 30.1 million impact on full-year net sales. On the other hand, the stronger
currencies, especially the Swedish krona, had a positive EUR 60 million impact
on net sales. When eliminating currency effects, the impacts of the divestments
and one-off income on net sales of the underlying business declined by 1%.
In 2010, growth came mainly from the outsourcing of ICT infrastructure and
application management. Demand for new development projects aiming at growth or
enhanced customer services was weak, although it picked up towards the year end.
Price pressure remained strong throughout the year. Volumes in terms of man-
hours were up by around 6% but that has not translated into net sales growth due
to the fact that offshoring is in many cases leading to lower average unit
prices. At the same time, however, average unit costs are down. The net impact
of lower prices and lower average costs on operating profit is slightly
positive. In this calculation, the impact of one-off items and currency effects
is eliminated.
Full-year operating profit (EBIT) amounted to EUR 72.4 (75.3) million,
representing a margin of 4.2% (4.4). Tieto booked a net amount of EUR 30.4
million (negative) in restructuring costs, EUR 7.6 million in impairment losses
related to the divestment of its operations in France and the USA, and a capital
gain of EUR 0.4 million. Operating profit excluding one-off items stood at EUR
110.0 (108.0) million, or 6.4% (6.3) of net sales.
Savings achieved in subcontracting costs, business expenses and premises were
offset by investments in global delivery capacity, growth initiatives in Russia
and offerings such as cloud services.. At the corporate level, personnel costs
excluding currency effects and restructuring remained at the same level as in
2009.
Net financial expenses stood at EUR 6.3 (5.0) million in the full-year. Net
interest expenses were EUR 5.6 (7.3) million and net losses from foreign
exchange transactions EUR 0.0 (positive 2.9) million. Other financial income and
expenses amounted to EUR 0.7 (0.6) million.
The Supreme Administrative Court in Finland has ruled that a merger loss of EUR
27.6 million related to the merger of Tieto Financial Solutions Oy in 2003 is
tax-deductible. Recognition of a deferred tax asset related to this item had
a positive net profit effect of EUR 7.2 million in 2010.
Earnings per share (EPS) totalled EUR 0.69 (0.77).
The 12-month rolling return on capital employed (ROCE) was 15.1% and the return
on shareholders' equity (ROE) 9.2%.
Financial performance by country
Net sales in Net sales Operating Operating
Jan-Dec/ in Jan-Dec/ margin in margin in
2010, 2009, Jan-Dec Jan-Dec
EUR million EUR million Change, % 2010, % 2009, %
--------------------------------------------------------------------------------
Finland 889 888 0 10.6 12.4
Sweden 504 462 9 6.8 -0.6
International 542 553 -2 -2.5 -1.2
Group elimination -220 -197
Total 1 714 1 706 0 4.2 4.4
--------------------------------------------------------------------------------
In Finland, net sales remained flat. The drop in the finance sector offset the
growth in other sectors. In the Finnish finance sector, the pension insurance
segment was weak after a long investment cycle. Tieto's performance was strong
in the energy, healthcare and welfare and the manufacturing sectors. The company
made greater use of external resources due to the short-term shortage of staff,
especially in the second half of 2010. This, coupled with lower prices, resulted
in weaker profitability. Operating profit amounted to EUR 94.6 (110.3) million,
or EUR 100.9 (112.5) million excluding one-off items. Operating margin was
10.6% (12.4), or 11.3% (12.7) excluding one-off items.
In Sweden, net sales grew by 9%. In local currency, net sales declined by 2%.
The public, finance and healthcare and welfare sectors were growing, but in the
telecom and manufacturing sectors, Tieto's performance was weak. All main cost
items, e.g. personnel and subcontracting costs and operating and business
expenses, excluding one-off items, were down in 2010, resulting in a substantial
improvement in profitability. Operating profit rose to EUR 34.4 (-3.0) million,
or 6.8% (-0.6.) of net sales. Operating profit excluding one-off items amounted
to EUR 35.2 (17.9) million, or 7.0% (3.9) of net sales.
In International, net sales declined by 2%. The decline was reinforced by
divestments in 2010 and one-off income of EUR 13.2 million in 2009 that affected
the comparison figures. The divestments of operations in North America and
France had a negative EUR 30.1 million impact on net sales. On the other hand,
the stronger currencies had a positive EUR 12 million impact. When eliminating
divestments, one-off items and changes in currencies, net sales grew by 4%.
Growth is mainly attributable to growing operations in Asia and Eastern Europe,
e.g. China, India, Poland and the Czech Republic.
Despite cost savings and good performance in delivery countries, operating
profit was unsatisfactory partly due to business development costs in Russia.
Full-year operating profit of Tieto International amounted to EUR -13.7 (-6.7)
million and included EUR 21.2 million in restructuring costs, impairment losses
of EUR 7.6 million related to the divestments, and a capital gain of EUR 0.4
million. Operating profit excluding one-off items rose to EUR 15.0 (1.4)
million. Operating margin was -2.5% (-1.2), or 2.8% (0.3) excluding one-off
items.
Net sales by customer sector
Net sales Net sales
in Jan-Dec /2010, in Jan-Dec /2009,
EUR million EUR million Change, %
----------------------------------------------------------------
Telecom 571 582 -2
Finance 358 359 0
Industry sectors 785 766 3
Total 1 714 1 706 0
----------------------------------------------------------------
In the telecom sector, Tieto's net sales declined by 2%. The divestment in
France had a negative EUR 23.2 million impact on net sales. When eliminating the
divestment and the positive currency effects, net sales declined by 1%. The
decline was mainly attributable to lower prices and lower delivery volumes to a
few customers facing business challenges in their own operations. Profitability
improved in 2010 due to lower costs and improved efficiency.
In the finance sector, net sales remained flat. Excluding the positive currency
effect, net sales declined by around 4% mainly due to the drop in Finland, where
net sales in the pension insurance segment were at a low level. In Sweden, net
sales in local currency turned to growth towards the year end. Profitability
improved to a satisfactory level.
In the industry sectors, net sales rose by 3%. The comparison figure in 2009
included one-off income of EUR 13.2 million. Excluding one-off items, currency
effects and the divestment of the pulp and paper operations in North America,
net sales rose by around 2%. Net sales were growing in all sectors, except for
the industrial manufacturing sector, which suffered from low performance in
Sweden. Profitability was at a healthy level. In Tieto's reporting, the industry
sectors cover customers in healthcare and welfare, forest, energy,
manufacturing, automotive, public, retail and logistics.
CASH FLOW AND FINANCING
Fourth-quarter net cash flow from operations, including the decrease of EUR
59.8 (24.0) million in net working capital, amounted to EUR 72.4 million (71.7).
Full-year net cash flow from operations increased to EUR 142.9 (126.4) million.
Net cash flow from operations includes a decrease of EUR 12.6 (increase 3.9)
million in net working capital.
Tax payments amounted to EUR 18.1 (14.4) million in the full year.
Payments for acquisitions totalled EUR 2.6 (4.6) million in the full year.
Divestments amounted to EUR 3.6 (5.7) million.
Dividends of EUR 35.7 (35.8) million were paid in April.
At the end of 2010, the consolidated balance sheet totalled EUR 1 240.6 (1
195.3) million, a 3.8% increase compared with 2009. The equity ratio was 47.6%
(46.0). Gearing decreased to 9.3% (12.7). Net debt totalled EUR 51.8 (66.0)
million, including EUR 152.0 million in interest-bearing debt, EUR 4.3 million
in finance lease liabilities, EUR 6.5 million in finance lease receivables and
EUR 98.0 million in cash and cash equivalents.
The interest-bearing long-term debt consists of EUR 150 million in bonds, of
which EUR 100 million will mature in December 2013 and EUR 50 million (private
placement) in July 2012. The EUR 250 million syndicated revolving credit
facility maturing in November 2011 was not in use and there were no commercial
papers issued under the EUR 250 million Commercial Paper Programme at the end of
December. Other short-term credit lines were utilized for EUR 1.1 million.
INVESTMENTS
Investments totalled EUR 101.4 (58.9) million for the full year. Capital
expenditure, including financial leasing, accounted for EUR 99.5 (57.5) million
and investments in subsidiary and associated company shares for EUR 1.9 (1.4)
million. Investments in new data centres in Finland, Sweden and Russia amounted
to EUR 24.8 million.
PERSONNEL
The number of full-time employees amounted to 17 757 (16 663) at the end of
December. Tieto has actively been increasing its capacity in global delivery
centres. At the end of December, the number of full-time employees in the global
delivery centres totalled 6 565 (4 996), or 37% (30) of personnel. Global
operations have grown fast, especially in China and India. In onshore locations,
the number of personnel has decreased by close to 500 employees year-on-year.
The 12-month rolling employee turnover stood at 9.5% (6.3) at the end of
December. The average number of fulltime employees was 17 097 (16 568) in the
full year. Wages and salaries for 2010 were EUR 763.6 (739.4) million. In
2010, 73% (73) of personnel were male and 27% (27) female. Due to rising
attrition rates, salary inflation is expected to rise. Salary inflation is
expected to be at 2-3% on average. Emerging focus markets like India, China and
Russia may see double-digit salary hikes.
DEVELOPMENT
Tieto's development costs totalled EUR 44.2 million in 2010, representing 2.6%
of net sales (EUR 53.1 million in 2009, representing 3.1% of net sales). These
development costs are mostly related to the development of Tieto's offerings,
own software products, data centre services and global delivery platform as well
as quality. Development costs for major new business concepts and software
products are capitalized as intangible assets if they fulfil the requirements
stated in the accounting principles. No development costs were capitalized for
either 2010 or 2009.
BOARD OF DIRECTORS AND MANAGEMENT
The 2010 AGM decided to establish a Shareholders' Nomination Committee to
prepare proposals for the election and remuneration of the members of the Board
of Directors to the next Annual General Meeting. The Shareholders' Nomination
Committee comprises four members nominated by the largest shareholders and the
Chairman of the Board of Directors. Shareholders may also propose Board members
to be elected by the AGM.
The largest shareholders of the company were determined on the basis of the
shareholdings registered in the Finnish and Swedish book-entry systems on 30
September 2010. The composition of the Shareholders' Nomination Committee is the
following:
Kari Järvinen, Solidium Oy,
Jonas Synnergren, Cevian Capital II Master Fund L.P.,
Heikki Vitie, OP-Pohjola Group Central Cooperative,
Marianne Nilsson, Swedbank Robur Fonder AB, and
Markku Pohjola, Chairman of the Board of Directors of Tieto Corporation.
In October, Pekka Viljakainen, head of Tieto International, decided to leave
Tieto, and Willem Hendrickx was appointed the head of Tieto International.
Hendrickx also continued in his role as the head of Telecom & Media.
In December 2010, a new Leadership Team was appointed. The composition as of 1
January 2011 is the following:
Hannu Syrjälä, President and CEO
Eva Gidlöf, Executive Vice President, Scandinavia
Kavilesh Gupta, Executive Vice President, Strategy and Corporate Planning
Seppo Haapalainen, Executive Vice President, Chief Financial Officer (CFO)
Willem Hendrickx, Executive Vice President, Global Accounts and Customer and
Market Operations (CMO)
Wim Huisman, Executive Vice President, Russia, Germany & CEE
Ari Järvelä, Executive Vice President, Finland and the Baltic countries
Ari Karppinen, Executive Vice President, Operations and Managed services and
transformation Business Line
Johanna Pyykönen-Walker, Executive Vice President, Human Resources.
The company has also decided to set an Extended Leadership Team as of 1 January.
The Extended Leadership Team comprises the Leadership Team members and the
following persons:
Per Johanson, Executive Vice President, Industry Solutions Business Line
Krister Högne, Executive Vice President, Enterprise Solutions Business Line.
Jouko Lonka, General Counsel
Sampo Salonen, Executive Vice President, Global Delivery & Quality
Antti Ritvos, Executive Vice President, Chief Technology Officer (CTO)
Ari Vanhanen, Executive Vice President, Product Engineering Solutions Business
Line.
SHARES AND SHARE-BASED INCENTIVES
Tieto Corporation's issued and registered share capital on 31 December 2010
totalled EUR 75 841 523 and the number of shares was 72 023 173.
The company had 29 327 registered shareholders at the end of 2010. Based on the
ownership records of the Finnish and Swedish central securities depositories,
56% of the shares were held by Finnish and 11% by Swedish investors. In total,
there were 26 857 retail investors in Finland and Sweden and they held 16% of
shares.
On 1 January 2010, Tieto held 541 500 own shares. Related to the Share Ownership
Plan 2006-2008, a total of 12 200 shares were returned to the company free of
consideration in 2010 due to the fact that the terms regarding the service
conditions of the holders were not fully met. At the end of 2010, the company
held a total of 553 700 shares, representing 0.77% of the shares and voting
rights. The number of outstanding shares, excluding the shares in the company's
possession, was 71 469 473 at the end of 2010.
Additional information regarding shares and shareholders is available at
www.tieto.com/Investors/Shares.
FLAGGING ANNOUNCEMENTS
In 2010, there were six announcements of changes in the company's shareholding.
Solidium announced on 8 April that its holding had increased above 5% and on 28
May that the holding exceeded 10%. On 26 January, OP Pohjola Group announced
that its holding had decreased to 4.14% and on 14 December that the holding had
increased to 5.07%. Goldman Sachs announced on 23 March that its holding had
increased above 5% and on 8 April that the holding had decreased below the 5%
threshold.
DIVIDEND PROPOSAL
The distributable funds of the Parent company amount to EUR 810 052 826.20 of
which net profit for the current year amounts to EUR 26 816 984.75. The Board of
Directors proposes a dividend of EUR 0.70 (0.50) per share for 2010. The
proposed dividend payout does not endanger the solvency of the company.
EVENTS AFTER THE PERIOD
On 17 January, the Shareholders' Nomination Committee announced its proposals to
the Annual General Meeting. The committee proposes that the Board of Directors
shall have eight members and that all the current Board members - Kimmo Alkio,
Christer Gardell, Kurt Jofs, Eva Lindqvist, Risto Perttunen, Markku Pohjola,
Olli Riikkala and Teuvo Salminen - be re-elected. Additionally, the
Shareholders' Nomination Committee proposes that the remuneration of the Board
of Directors be unchanged, but that annual fees be reported instead of monthly
fees as follows: EUR 30 000 to the ordinary members of the Board of Directors,
EUR 45 600 to the Vice Chairman and EUR 68 400 to the Chairman. In addition to
these fees, it is proposed that the members of the Board of Directors be paid a
remuneration of EUR 800 for each Board meeting and for each permanent or
temporary committee meeting.
NEAR-TERM RISKS AND UNCERTAINTIES
In some specialist areas, there are signs of a lack of resources and rising
attrition. Therefore, the rise in personnel expenses might be higher than agreed
in the collective labour agreements. In Asia, salaries are on the rise, in some
areas even at a double-digit rate.
The ongoing transformation of the IT sector towards offshore production might
create uncertainty among the company's personnel and poses risks related to the
company's market position, prices and quality of deliveries. On the other hand,
Tieto has steadily increased its offshore resources during the past several
years, and is currently the leading European based company providing substantial
offshore capabilities. The company expects the growing offshore operations to
lead to lower average costs as well, offsetting negative price effects. Special
attention has been placed on ensuring the quality of deliveries.
A comprehensive description of the major long-term risks will be available in
the Report by the Board of Directors to be published on the week commencing on
21 February.
OUTLOOK FOR 2011
The IT services market started to recover in the latter part of 2010. For 2011,
industry analysts expect growth of 2-4% for the IT services market in Western
Europe.
In 2011, Tieto expects its net sales to develop in line with the Western
European IT services market. Full-year operating profit excluding one-off items
is expected to be better than in 2010 (EUR 110.0 million in 2010).
Auditing
The full-year figures in this report are audited.
Financial calendar
Week 8 Annual Report 2010 on Tieto's website
24 March 2011 Annual General Meeting
28 April 2011 Interim report 1/2011 (8.00 am EET)
22 July 2011 Interim report 2/2011 (8.00 am EET)
25 October 2011 Interim report 3/2011 (8.00 am EET)
ACCOUNTING POLICIES
After March 2010 Tieto has started to apply hedge accounting for selected
hedging transactions, such as foreign hedging transactions between EUR and CZK.
Otherwise in preparing these financial statements, the Group has followed the
same accounting policies as in the annual financial statements for 2009 except
for the effect of changes required by the adoption of the following new
standards, interpretations and amendments to existing standards and
interpretations on 1 January 2010:
* IFRS 3 (Revised), 'Business Combinations'. The revised standard continues to
apply the acquisition method to business combinations, with some significant
changes. For example, all payments to purchase a business are to be recorded
at fair value at the acquisition date, with contingent payments classified
as debt subsequently remeasured through the income statement. There is a
choice on an acquisition-by-acquisition basis to measure the non-controlling
interest in the acquiree either at fair value or at the non-controlling
interest's proportionate share of the acquiree's net assets. All
acquisition-related costs should be expensed. The Group has applied the
revised standard on the accounting of all business combinations from 1
January 2010.
* IAS 27 (Revised), 'Consolidated and Separate Financial Statements'. The
revised standard requires the effects of all transactions with non-
controlling interests to be recorded in equity if there is no change in
control and these transactions will no longer result in goodwill or gains
and losses. The standard also specifies the accounting when control is lost.
Any remaining interest in the entity is remeasured to fair value and a gain
or loss is recognized in profit or loss. The Group has applied IAS 27
(Revised) prospectively to transactions with non-controlling interests from
1 January 2010.
* IFRIC 12, 'Service Concession Arrangements'. The interpretation does not
have any impact on the Group's financial statements.
* IFRIC 15, 'Agreements for the Construction of Real Estate'. The
interpretation does not have any impact on the Group's financial statements.
* IFRIC 16, 'Net Investment in a Foreign Operation'. The interpretation does
not have any impact on the Group's financial statements.
* IFRIC 17, 'Distribution of Non-cash Assets to Owners'. The interpretation
does not have any impact on the Group's financial statements.
* IFRIC 18, 'Transfers of Assets from Customers'. The interpretation does not
have any impact on the Group's financial statements.
* IFRIC 9 (Amendment), 'Reassessment of Embedded Derivatives' and IAS 39,
'Financial Instruments: Recognition and Measurement' (Amendment) - Embedded
Derivatives. The amendment does not have any impact on the Group's financial
statements.
* IAS 39 (Amendment) 'Financial Instruments: Recognition and Measurement -
Eligible hedged Items'. The amendment does not have any impact on the
Group's financial statements.
* IFRS 2 (Amendment), 'Share-based Payment' - Group Cash-settled Share-based
Payment Transactions. The amendment does not have any impact on the Group's
financial statements.
IASB published changes to 12 standards or interpretations in April 2009 as part
of the annual improvements to IFRSs project. The changes do not currently have
any impact on the Group's financial statements:
* IFRS 2 (Amendment), 'Share-based Payment'.
* IFRS 5 (Amendment), 'Non-current Assets Held for Sale and Discontinued
Operations'.
* IFRS 8 (Amendment), 'Operating Segments'. Minor textual amendment to the
standard and an amendment to the basis for conclusions, to clarify that an
entity is required to disclose a measure of segment assets only if that
measure is regularly reported to the chief operating decision-maker.
* IAS 1 (Amendment), 'Presentation of Financial Statements'.
* IAS 7 (Amendment), 'Statement of Cash Flows'.
* IAS 17 (Amendment), 'Leases'.
* IAS 18 (Amendment), 'Revenue'.
* IAS 36 (Amendment), 'Impairment of Assets'.
* IAS 38 (Amendments), 'Intangible Assets'.
* IAS 39 (Amendments), 'Financial Instruments: Recognition and Measurement'.
* IFRIC 9 (Amendment), 'Reassessment of Embedded Derivatives'.
* IFRIC 16 (Amendment), 'Hedges of a Net Investment in a Foreign Operation'.
The following new standards, interpretations and amendments to existing
standards and interpretations issued during the year 2010 will be adopted by the
Group in 2011 and the management is assessing the impact of these
interpretations on the financial statements of the Group.
* IAS 24 (Revised), 'Related Party Disclosures'
* IAS 32 (Amendment), 'Financial Instruments: Presentation' - Classification
of Rights Issues.
* IFRIC 19, 'Extinguishing Financial Liabilities with Equity Instruments'.
* IFRIC 14 (Amendment) 'Prepayments of a Minimum Funding Requirement.
IASB published changes to seven standards or interpretations in July 2010 as
part of the annual improvements to IFRSs project. The Group will adopt these
changes in 2011. The changes are still subject to endorsement by the European
Union and the management's assessment of the impact of the changes on the
Group's financial statements:
* IFRS 3 (Amendment)
* IFRS 7 (Amendment), 'Financial Instruments: Financial Statement
Disclosures'.
* IAS 1 (Amendment), 'Presentation of Financial Statements - Statements of
Changes in Equity'.
* IAS 27 (Amendment), 'Consolidated and Separate Financial Statements'.
* IAS 34 (Amendment), 'Interim Financial Reporting'.
* IFRIC 13 (Amendment), 'Customer Loyalty Programmes'.
The following standards, interpretations and amendments will be adopted in 2012
or later. The management is assessing the impact of these changes on Group's
financial statements.
* IFRS 9, 'Financial Instruments'.
* IFRS 7 (Amendments), 'Disclosures - Transfers of Financial Assets'.
The accounting policies will be described in more detail in the annual financial
statements for the year ended 31 December 2010.
Key figures
2010 2009 2010 2010 2010 2010 2009
10-12 10-12 7-9 4-6 1-3 1-12 1-12
--------------------------------------------------------------------------------
Earnings per share, EUR
- basic 0.02 0.36 0.34 0.17 0.17 0.69 0.77
- diluted 0.02 0.36 0.34 0.17 0.17 0.69 0.77
Equity per share, EUR 7.80 7.25 7.72 7.33 7.10 7.80 7.25
Return on equity rolling 12 month, % 9.2 11.0 14.2 13.8 13.6 9.2 11.0
Return on capital employed rolling 12
month, % 15.1 16.8 18.6 21.1 19.6 15.1 16.8
Equity ratio % 47.6 46.0 51.1 48.0 45.8 47.6 46.0
Net interest-bearing liabilities, EUR
million 51.8 66.0 96.4 89.6 51.9 51.8 66.0
Gearing, % 9.3 12.7 17.5 17.1 10.2 9.3 12.7
Investments, EUR million 29.3 15.7 23.6 25.2 23.3 101.4 58.9
Number of shares
2010 2010 2010 2010 2010
10-12 7-9 4-6 1-3 1-12
--------------------------------------------------------------------------------
Outstanding shares, end
of period
Basic 71 469 473 71 408 913 71 408 913 71 408 913 71 469 473
Diluted 71 634 426 71 534 374 71 612 101 71 684 967 71 683 732
Outstanding shares,
average
Basic *) 71 408 913 71 408 913 71 408 913 71 408 913 71 408 913
Diluted 71 637 910 71 535 561 71 615 068 71 689 318 71 690 740
Company's possession of
its own shares,
End of period 553 700 550 100 548 900 545 900 553 700
Average 550 217 548 913 545 933 541 549 546 683
*) Number of shares included in the calculation of basic Earnings per share.
Shares conveyed in 2009 are excluded for the whole year as they could be
returned until end of 2010.
2009 2009
10-12 1-12
-------------------------------------------------------------
Outstanding shares, end of period
Basic 71 408 913 71 408 913
Diluted 71 481 673 71 481 673
Outstanding shares, average
Basic *) 71 408 913 71 499 888
Diluted 71 481 673 71 574 507
Company's possession of its own shares,
End of period 541 500 541 500
Average 541 500 473 315
Income statement, EUR million
2010 2009 2010 2009 Change
10-12 10-12 1-12 1-12 %
----------------------------------------------------------------------------
Net sales 472.2 440.6 1 713.7 1 706.3 0
Other operating income 4.2 4.7 17.5 17.5 0
Employee benefit expenses 287.6 243.3 1 017.1 986.7 3
Depreciation, amortization and
impairment charges 19.4 17.5 78.5 70.7 11
Other operating expenses 163.0 150.8 563.2 591.1 -5
----------------------------------------------------------------------------
Operating profit (EBIT) 6.4 33.7 72.4 75.3 -4
Interest and other financial income 1.8 2.1 10.6 5.8 82
Interest and other financial expenses -3.1 -4.2 -16.9 -13.7 24
Net exchange losses/gains 0.6 0.6 0.0 2.9 -
----------------------------------------------------------------------------
Profit before taxes 5.7 32.2 66.1 70.3 -6
Income taxes -4.3 -6.5 -16.6 -15.2 9
----------------------------------------------------------------------------
Net profit for the period 1.4 25.7 49.5 55.1 -10
Net profit for the period attributable to
Shareholders of the Parent company 1.4 25.9 49.5 54.8 -10
Non-controlling interest 0.0 -0.2 0.0 0.3 -100
----------------------------------------------------------------------------
1.4 25.7 49.5 55.1 -10
Earnings per share attributable to the
shareholders of the Parent company, EUR
Basic 0.02 0.36 0.69 0.77 -10
Diluted 0.02 0.36 0.69 0.77 -10
Statement of comprehensive income, EUR million
Net profit for the period 1.4 25.7 49.5 55.1 -10
Translation difference from the net investment
in Swedish subsidiaries (net of tax) 3.2 -0.3 20.7 8.2 152
Translation differences 1.7 5.2 1.5 7.2 -
Cash flow hedges -0.6 - -0.1 - -
-----------------------------------------------------------------------
Total comprehensive income 5.7 30.6 71.6 70.5 2
Total comprehensive income attributable to
Shareholders of the Parent company 5.7 30.8 71.6 70.2 2
Non-controlling interest 0.0 -0.2 0.0 0.3 -100
-----------------------------------------------------------------------
5.7 30.6 71.6 70.5 2
Balance sheet, EUR million
2010 2009 Change
31 Dec 31 Dec %
--------------------------------------------------------------
Goodwill 422.9 402.0 5
Other intangible assets 51.4 42.8 20
Property, plant and equipment 121.2 100.1 21
Deferred tax assets 63.0 66.9 -6
Loan receivables 3.4 5.0 -32
Available-for-sale financial assets 0.8 0.8 0
Total non-current assets 662.7 617.6 7
Trade and other receivables 465.2 441.3 5
Pension benefit assets 5.2 2.8 86
Loan receivables 3.1 3.9 -21
Current income tax receivables 6.4 6.4 0
Cash and cash equivalents 98.0 123.3 -21
Total current assets 577.9 577.7 0
Assets classified as held for sale - - -
--------------------------------------------------------------
Total assets 1 240.6 1 195.3 4
Share capital, share issue
premiums and other reserves 114.6 110.6 4
Retained earnings 442.8 407.0 9
Parent shareholders' equity 557.4 517.6 8
Non-controlling interest 0.1 0.7 -86
--------------------------------------------------------------
Total equity 557.5 518.3 8
--------------------------------------------------------------
Loans 151.4 154.2 -2
Deferred tax liabilities 38.1 33.6 13
Provisions 2.9 3.3 -12
Pension obligations 20.7 18.9 10
Other non-current liabilities 3.8 1.4 171
Total non-current liabilities 216.9 211.4 3
Trade and other payables 411.1 370.1 11
Current income tax liabilities 10.1 8.2 23
Provisions 40.1 43.2 -7
Loans 4.9 44.1 -89
Total current liabilities 466.2 465.6 0
Liabilities classified as held for sale - - -
--------------------------------------------------------------
Total equity and liabilities 1 240.6 1 195.3 4
Net working capital in the balance sheet, EUR million
2010 2009 Change 2010 2010 2010
31 Dec 31 Dec % 31 Mar 30 Jun 30 Sep
--------------------------------------------------------------------------------
Accounts receivable 367.1 313.9 17 296.5 304.2 292.7
Other working capital receivables 101.2 129.4 -22 149.7 152.4 141.9
--------------------------------------------------------------------------------
Working capital receivables included
in assets 468.3 443.3 6 446.2 456.6 434.6
Operative accruals 173.8 149.1 17 154.3 157.6 142.0
Other working capital liabilities 235.8 219.6 7 224.9 229.5 198.2
Pension obligations and provisions 63.7 65.4 -3 57.0 47.4 44.2
--------------------------------------------------------------------------------
Working capital liabilities included
in current
liabilities 473.3 434.1 9 436.2 434.5 384.4
Net working capital in the balance
sheet -5.0 9.2 -154 10.0 22.1 50.2
Cash flow, EUR million
2010 2009 2010 2010 2010 2010 2009
10-12 10-12 7-9 4-6 1-3 1-12 1-12
--------------------------------------------------------------------------------
Cash flow from operations
Net profit 1.4 25.7 24.4 11.7 12.0 49.5 55.1
Adjustments
Depreciation. amortization and
impairment charges 19.4 17.5 17.9 18.2 23.0 78.5 70.7
Share-based payments 1.0 0.7 0.9 1.3 1.2 4.4 3.8
Profit/loss on sale of fixed
assets
and shares 1.3 -0.3 0.3 0.1 -0.5 1.2 -6.1
Other adjustments -2.1 -0.5 1.4 -0.6 0.0 -1.3 0.2
Net financial expenses 0.7 1.5 3.4 1.1 1.1 6.3 5.0
Income taxes 4.3 6.5 -0.1 6.7 5.7 16.6 15.2
Change in net working capital 59.8 24.0 -28.1 -9.2 -9.9 12.6 -3.9
--------------------------------------------------------------------------------
Cash generated from operations 85.8 75.1 20.1 29.3 32.6 167.8 140.0
Net financial expenses paid -4.9 0.1 -3.0 -0.8 1.9 -6.8 0.8
Income taxes paid -8.5 -3.5 -2.0 -1.0 -6.6 -18.1 -14.4
--------------------------------------------------------------------------------
Net cash flow from operations 72.4 71.7 15.1 27.5 27.9 142.9 126.4
Cash flow from investing
activities
Acquisition of Group companies
and business operations,
net of cash acquired - -2.5 -1.0 -1.2 -0.4 -2.6 -4.6
Capital expenditures -28.6 -16.7 -21.2 -24.6 -21.4 -95.8 -58.0
Disposal of business operations 0.0 - 0.7 -2.2 5.1 3.6 5.7
Sales of fixed assets 0.4 0.0 -0.1 -0.1 0.3 0.5 2.9
Change in loan receivables 2.1 1.3 0.3 -0.7 0.7 2.4 0.8
--------------------------------------------------------------------------------
Net cash used in investing
activities
from operations -26.1 -17.9 -21.3 -28.8 -15.7 -91.9 -53.2
Cash flow from financing
activities
Dividends paid 0.0 0.0 0.0 -35.7 -0.3 -36.0 -36.3
Repurchase of own shares - - - - - - -2.6
Payment of finance lease
liabilities -1.4 -1.2 -1.3 -1.3 -1.3 -5.3 -5.1
Change in interest-bearing
liabilities 0.9 -35.2 0.6 0.2 -38.4 -36.7 -27.9
--------------------------------------------------------------------------------
Net cash used in financing
activities
from operations -0.5 -36.4 -0.7 -36.8 -40.0 -78.0 -71.9
Change in cash and cash
equivalents 45.8 17.4 -6.9 -38.1 -27.8 -27.0 1.3
Cash and cash equivalents at
beginning
of period -51.7 -105.6 -58.9 -98.4 -123.3 -123.3 -120.2
Foreign exchange differences -0.5 -0.3 0.3 1.4 -2.9 -1.7 -1.8
Cash and cash equivalents at end
of period 98.0 123.3 51.7 58.9 98.4 98.0 123.3
--------------------------------------------------------------------------------
45.8 17.4 -6.9 -38.1 -27.8 -27.0 1.3
Statement of changes in shareholders' equity, EUR million
Parent shareholders' equity
Non-
control-
ling Total
interest equity
--------------------------------------------------------------------------------
Share Share Own Trans- Cash Re- Total
capi- issue shares lation flow tained
tal premi- differ- hedges earn-
ums and encies ings
other
reserves
--------------------------------------------------------------------------------
Balance at 31
Dec 2008 75.8 33.2 -9.0 -76.1 0.0 458.1 482.0 1.6 483.6
Comprehensive
income
Net profit for
the period 54.8 54.8 0.3 55.1
Other
comprehensive
income
Translation
difference
from
the net
investment in
Swedish
subsidiaries
(net of tax) 8.2 8.2 8.2
Translation
difference 1.6 31.3 -25.7 7.2 7.2
--------------------------------------------------------------------------------
Total
comprehensive
income 1.6 31.3 0.0 37.3 70.2 0.3 70.5
Transactions
with owners
Share-based
payments
recognized
against equity 3.8 3.8 3.8
Dividend -35.8 -35.8 -35.8
Own shares
purchased -2.6 -2.6 -2.6
Transfer
between
restricted
and non-
restricted
reserves 0.0 0.0 0.0 0.0
Non-
controlling
interest -1.2 -1.2
--------------------------------------------------------------------------------
Total
transactions
with
owners 0.0 -2.6 -32.0 -34.6 -1.2 -35.8
--------------------------------------------------------------------------------
At 31 Dec 2009 75.8 34.8 -11.6 -44.8 0.0 463.4 517.6 0.7 518.3
Parent shareholders' equity
Non-
control-
ling Total
interest equity
--------------------------------------------------------------------------------
Share Share Own Trans- Cash Re- Total
capi- issue shares lation flow tained
tal premi- differ- hedges earn-
ums and encies ings
other
reserves
--------------------------------------------------------------------------------
Balance at 31
Dec 2009 75.8 34.8 -11.6 -44.8 0.0 463.4 517.6 0.7 518.3
Comprehensive
income
Net profit for
the period 49.5 49.5 0.0 49.5
Other
comprehensive
income
Translation
difference
from
the net
investment in
Swedish
subsidiaries
(net of tax) 20.7 20.7 20.7
Translation
difference 4.0 62.8 -65.3 1.5 1.5
Cash flow
hedges -0.1 -0.1 -0.1
--------------------------------------------------------------------------------
Total
comprehensive
income 4.0 62.8 -0.1 4.9 71.6 0.0 71.6
Transactions
with owners
Share-based
payments
recognized
against equity 4.4 4.4 4.4
Dividend -35.7 -35.7 -35.7
Changes due to
business
combinations -0.5 -0.5 -0.2 -0.7
Non-
controlling
interest -0.4 -0.4
--------------------------------------------------------------------------------
Total
transactions
with
owners 0.0 0.0 -31.8 -31.8 -0.6 -32.4
--------------------------------------------------------------------------------
At 31 Dec 2010 75.8 38.8 -11.6 18.0 -0.1 436.5 557.4 0.1 557.5
Net sales by country, EUR million
2010 2009 Change 2010 2009 Change
10-12 10-12 % 1-12 1-12 %
-------------------------------------------------------
Finland 240 233 3 889 888 0
Sweden 146 125 16 504 462 9
International 143 139 3 542 553 -2
Group elimination -57 -56 2 -220 -197 12
-------------------------------------------------------
Group total 472 441 7 1 714 1 706 0
-------------------------------------------------------
Internal sales by country, EUR million
2010 2009 Change 2010 2009 Change
10-12 10-12 % 1-12 1-12 %
---------------------------------------------------
Finland 14 19 -29 63 73 -14
Sweden 7 8 -17 25 27 -8
International 37 29 25 132 96 37
---------------------------------------------------
Group total 57 56 2 220 197 12
---------------------------------------------------
Sales between segments are carried out at arm's length.
Net sales according to customer location, EUR million
2010 Change Share 2009 Change Share
1-12 % % 1-12 % %
-------------------------------------------------
Finland 820 2 48 806 -6 47
Sweden 473 10 28 431 -15 25
Other 420 -11 25 470 -7 28
-------------------------------------------------
Group total 1 714 0 100 1 706 -9 100
-------------------------------------------------
Net sales by customer sector, EUR million
2010 2009 Change 2010 2009 Change
10-12 10-12 % 1-12 1-12 %
------------------------------------------------------
Telecom 150 149 0 571 582 -2
Finance 97 89 9 358 359 0
Industry sectors 225 203 11 785 766 3
------------------------------------------------------
Group total 472 441 7 1 714 1 706 0
------------------------------------------------------
Revenues of EUR 230.8 million (EUR 229.3 million in 2009) are derived from a
single external customer. These revenues are attributable to all reportable
segments.
Operating profit (EBIT) by country, EUR million
2010 2009 Change 2010 2009 Change
10-12 10-12 % 1-12 1-12 %
-------------------------------------------------------------
Finland 22.0 33.9 -35.3 94.6 110.3 -14.3
Sweden 11.9 7.9 51.1 34.4 -3.0 pos.
International -17.2 2.4 -826.3 -13.7 -6.7 -105.8
Group operations -10.2 -10.5 2.2 -42.9 -25.4 -69.0
-------------------------------------------------------------
Operating profit (EBIT) 6.4 33.7 -81.1 72.4 75.3 -3.9
-------------------------------------------------------------
Operating margin (EBIT) by country, %
2010 2009 Change 2010 2009 Change
10-12 10-12 1-12 1-12
-----------------------------------------------------------
Finland 9.1 14.6 -5.4 10.6 12.4 -1.8
Sweden 8.2 6.3 1.9 6.8 -0.6 7.5
International -12.0 1.7 -13.7 -2.5 -1.2 -1.3
-----------------------------------------------------------
Operating margin (EBIT) 1.4 7.7 -6.3 4.2 4.4 -0.2
-----------------------------------------------------------
Personnel by country
End of period Average
2010 Change Share 2009 2010 2009
1-12 % % 1-12 1-12 1-12
------------------------------------------------------
Finland 5 776 0 33 5 758 5 780 5 932
Sweden 3 023 -3 17 3 102 2 967 3 202
Czech 1 886 14 11 1 656 1 785 1 544
India 1 499 49 8 1 009 1 218 829
Germany 1 010 -4 6 1 047 1 028 1 078
China 1 096 86 6 590 870 425
Poland 950 41 5 676 806 609
Latvia 582 -1 3 588 593 617
Norway 500 -11 3 561 519 602
Italy 232 -13 1 266 258 262
Great Britain 211 -23 1 274 232 292
Denmark 190 -16 1 226 204 263
Lithuania 169 -4 1 177 177 182
Netherlands 132 -1 1 133 131 139
Russia 130 160 1 50 123 45
Estonia 106 -10 1 118 116 120
Other 265 -39 1 433 292 425
------------------------------------------------------
Group total 17 757 7 100 16 663 17 097 16 568
------------------------------------------------------
Total assets by country, EUR million
2010 2009 Change
31 Dec 31 Dec %
------------------------------------------
Finland 469.1 442.1 6
Sweden 325.5 261.3 25
International 309.9 310.8 0
Country elimination -21.8 -21.4 2
------------------------------------------
Countries total 1 082.7 992.7 9
------------------------------------------
Group Operations 157.9 202.5 -22
------------------------------------------
Total assets 1 240.6 1 195.3 4
------------------------------------------
Non-current assets according to asset location, EUR million
2010 2009 Change
31 Dec 31 Dec %
---------------------------------------------
Finland 271.5 252.0 8
Sweden 166.3 138.6 20
Other 157.8 154.4 2
---------------------------------------------
Total non-current assets 595.6 545.0 9
---------------------------------------------
Capital expenditure by country, EUR million
2010 2009 Change 2010 2009 Change
10-12 10-12 % 1-12 1-12 %
----------------------------------------------------
Finland 18.3 11.4 60 59.4 41.2 44
Sweden 5.2 1.9 172 21.8 9.4 133
International 2.8 1.3 106 9.9 4.2 137
Group Operations 3.0 1.1 162 8.4 2.8 206
----------------------------------------------------
Group total 29.2 15.8 85 99.5 57.5 73
----------------------------------------------------
Depreciation by country, EUR million
2010 2009 Change 2010 2009 Change
10-12 10-12 % 1-12 1-12 %
------------------------------------------------------
Finland 11.9 10.8 10 44.6 41.7 7
Sweden 2.6 2.2 19 9.6 8.3 16
International 2.3 1.6 40 7.0 8.8 -21
Group Operations 0.7 0.5 31 2.1 2.6 -19
------------------------------------------------------
Group total 17.5 15.1 16 63.3 61.4 3
------------------------------------------------------
Amortization on allocated intangible assets from acquisitions, EUR million
2010 2009 Change 2010 2009 Change
10-12 10-12 % 1-12 1-12 %
----------------------------------------------------
Finland 0.1 0.1 6 0.5 0.5 -1
Sweden 0.8 0.7 12 3.1 2.9 7
International 1.0 1.5 -36 4.0 5.9 -32
Group Operations 0.0 0.0 0 0.0 0.0 300
----------------------------------------------------
Group total 1.9 2.3 -19 7.6 9.3 -18
----------------------------------------------------
Impairment losses, EUR million
2010 2009 Change 2010 2009 Change
10-12 10-12 % 1-12 1-12 %
----------------------------------------------------
Finland 0.0 0.0 0 0.0 0.0 0
Sweden 0.0 0.0 0 0.0 0.0 0
International 0.0 0.0 0 7.6 0.0 -
Group Operations 0.0 0.0 0 0.0 0.0 0
----------------------------------------------------
Group total 0.0 0.0 0 7.6 0.0 -
----------------------------------------------------
Commitments and contingencies, EUR million
31 Dec 2010 31 Dec 2009
-------------------------------------------------------------------------
For Tieto obligations
Pledges 0.0 0.0
On behalf of joint ventures 0.0 0.0
Other Tieto obligations
Rent commitments due in one year 51.4 52.1
Rent commitments due in 1-5 years 117.6 86.9
Rent commitments due after 5 years 41.6 21.4
Operating lease commitments due in one year 5.5 11.3
Operating lease commitments due in 1-5 years 5.3 8.8
Operating lease commitments due after 5 years 0.0 0.0
Other commitments *) 42.7 28.2
*) In addition commitments of EUR 9.8 million (EUR 7.6 million in 2009) related
to liabilities in the Group balance sheet.
Operating lease commitments are principally three-year lease agreements that do
not include buyout clauses.
Derivatives, EUR million
Notional amounts of derivatives
31 Dec 2010 31 Dec 2009
----------------------------------------------------------------------
Foreign exchange forward contracts 286.5 196.5
Forward contracts outside hedge accounting 239.6 196.5
Forward contracts within hedge accounting 46.9 0.0
Interest rate swap 250.0 250.0
Currency options 12.3 0.0
Includes the gross amount of all notional values for contracts that have not yet
been settled or closed. The amount of notional value outstanding is not
necessarily a measure or indication of market risk, as the exposure of certain
contracts may be offset by other contracts.
Fair values of derivatives
The net fair values of derivative financial
instruments at the balance sheet date were: 31 Dec 2010 31 Dec 2009
--------------------------------------------------------------------------------
Foreign exchange forward contracts 2.0 -0.6
Interest rate swaps -1.7 -1.4
Currency options 0.0 0.0
Gross positive fair values of derivatives: Positive Positive
31 Dec 2010 31 Dec 2009
------------------------------------------------------------------------
Foreign exchange forward contracts 3.9 0.7
Forward contracts outside hedge accounting 3.5 0.7
Forward contracts within hedge accounting *) 0.4 0.0
Interest rate swaps 2.1 0.2
Currency options 0.0 0.0
Gross negative fair values of derivatives: Negative Negative
31 Dec 2010 31 Dec 2009
--------------------------------------------------------------------------------
Foreign exchange forward contracts -1.9 -1.2
Forward contracts outside hedge accounting -1.5 -1.2
Forward contracts within hedge accounting *) -0.4 0.0
Interest rate swaps -3.7 -1.6
Currency options 0.0 0.0
*) The amount recognized in equity -0.1 0.0
The amount that has been booked in the income 0.0 0.0
statement as a result of ineffectiveness of cash flow
hedge
The hedged highly probable forecast transactions denominated in foreign currency
are expected to occur at various dates during the next 12 months.
QUARTERLY FIGURES
Key figures
2010 2010 2010 2010
10-12 7-9 4-6 1-3
-------------------------------------------------------------------
Earnings per share, EUR
- basic 0.02 0.34 0.17 0.17
- diluted 0.02 0.34 0.17 0.17
Equity per share, EUR 7.80 7.72 7.33 7.10
Return on equity rolling 12 month, % 9.2 14.2 13.8 13.6
Return on capital employed rolling 12 month, % 15.1 18.6 21.1 19.6
Equity ratio % 47.6 51.1 48.0 45.8
Net interest-bearing liabilities, EUR million 51.8 96.4 89.6 51.9
Gearing, % 9.3 17.5 17.1 10.2
Investments, EUR million 29.3 23.6 25.2 23.3
2009 2009 2009 2009
10-12 7-9 4-6 1-3
---------------------------------------------------------------------
Earnings per share, EUR
- basic 0.36 0.25 0.14 0.01
- diluted 0.36 0.25 0.14 0.01
Equity per share, EUR 7.25 6.82 6.46 6.31
Return on equity rolling 12 month, % 11.0 6.3 7.8 10.2
Return on capital employed rolling 12 month, % 16.8 18.6 18.5 25.3
Equity ratio % 46.0 43.2 40.7 40.0
Net interest-bearing liabilities, EUR million 66.0 118.9 139.2 79.2
Gearing, % 12.7 24.4 30.1 17.5
Investments, EUR million 15.7 12.7 14.4 16.1
Income statement, EUR million
2010 2010 2010 2010
10-12 7-9 4-6 1-3
-------------------------------------------------------------------------
Net sales 472.2 387.1 431.5 422.9
Other operating income 4.2 3.8 2.5 7.0
Employee benefit expenses 287.6 219.2 255.8 254.5
Depreciation, amortization and impairment charges 19.4 17.9 18.2 23.0
Other operating expenses 163.0 126.1 140.5 133.6
-------------------------------------------------------------------------
Operating profit (EBIT) 6.4 27.7 19.5 18.8
Financial income and expenses -0.7 -3.4 -1.1 -1.1
-------------------------------------------------------------------------
Profit before taxes 5.7 24.3 18.4 17.7
Income taxes -4.3 0.1 -6.7 -5.7
-------------------------------------------------------------------------
Net profit for the period 1.4 24.4 11.7 12.0
2009 2009 2009 2009
10-12 7-9 4-6 1-3
-------------------------------------------------------------------------
Net sales 440.6 382.9 444.8 438.0
Other operating income 4.7 2.8 7.1 2.9
Employee benefit expenses 243.3 210.7 265.8 266.9
Depreciation, amortization and impairment charges 17.5 16.9 19.0 17.3
Other operating expenses 150.8 131.8 156.7 151.8
-------------------------------------------------------------------------
Operating profit (EBIT) 33.7 26.3 10.4 4.9
Financial income and expenses -1.5 0.9 -1.6 -2.8
-------------------------------------------------------------------------
Profit before taxes 32.2 27.2 8.8 2.1
Income taxes -6.5 -8.8 1.2 -1.1
-------------------------------------------------------------------------
Net profit for the period 25.7 18.4 10.0 1.0
Balance sheet, EUR million
2010 2010 2010 2010
31 Dec 30 Sep 30 Jun 31 Mar
----------------------------------------------------------------------------
Goodwill 422.9 419.3 416.2 411.5
Other intangible assets 51.4 52.7 53.4 45.0
Property, plant and equipment 121.2 111.5 106.3 104.7
Other non-current assets 67.2 74.5 63.6 66.1
Total non-current assets 662.7 658.0 639.5 627.3
Trade receivables and other current assets 479.9 451.6 473.4 461.4
Cash and cash equivalents 98.0 51.7 58.9 98.4
Total current assets 577.9 503.3 532.3 559.8
Assets classified as held for sale - - - 4.4
----------------------------------------------------------------------------
Total assets 1 240.6 1 161.3 1 171.8 1 191.5
Total equity 557.5 550.9 523.6 507.2
Non-current loans 151.4 155.6 156.8 158.2
Other non-current liabilities 65.5 63.0 58.5 58.0
Total non-current liabilities 216.9 218.6 215.3 216.2
Trade payables and other current liabilities 421.2 367.4 404.4 427.5
Provisions 40.1 23.2 27.9 36.6
Current loans 4.9 1.2 0.6 0.3
Total current liabilities 466.2 391.8 432.9 464.4
Liabilities classified as held for sale - - - 3.7
----------------------------------------------------------------------------
Total equity and liabilities 1 240.6 1 161.3 1 171.8 1 191.5
2009 2009 2009 2009
31 Dec 30 Sep 30 Jun 31 Mar
----------------------------------------------------------------------------
Goodwill 402.0 398.2 392.7 391.4
Other intangible assets 42.8 44.1 46.1 49.2
Property, plant and equipment 100.1 99.0 100.8 103.2
Other non-current assets 72.7 68.7 75.3 68.7
Total non-current assets 617.6 610.0 614.9 612.5
Trade receivables and other current assets 454.4 495.0 495.5 514.1
Cash and cash equivalents 123.3 105.6 101.7 94.6
Total current assets 577.7 600.6 597.2 608.7
Assets classified as held for sale - - - -
----------------------------------------------------------------------------
Total assets 1 195.3 1 210.6 1 212.1 1 221.2
Total equity 518.3 487.8 462.0 452.1
Non-current loans 154.2 160.6 161.9 163.2
Other non-current liabilities 53.9 48.9 46.9 42.5
Total non-current liabilities 211.4 209.5 208.8 205.7
Trade payables and other current liabilities 378.3 390.0 396.3 506.1
Provisions 43.2 49.3 54.5 37.2
Current loans 44.1 74.0 90.5 20.1
Total current liabilities 465.6 513.3 541.3 563.4
Liabilities classified as held for sale - - - -
----------------------------------------------------------------------------
Total equity and liabilities 1 195.3 1 210.6 1 212.1 1 221.2
Cash flow, EUR million
2010 2010 2010 2010
10-12 7-9 4-6 1-3
-------------------------------------------------------------------
Cash flow from operations
Net profit 1.4 24.4 11.7 12.0
Adjustments 24.6 23.8 26.8 30.5
Change in net working capital 59.8 -28.1 -9.2 -9.9
-------------------------------------------------------------------
Cash generated from operations 85.8 20.1 29.3 32.6
Net financial expenses paid -4.9 -3.0 -0.8 1.9
Income taxes paid -8.5 -2.0 -1.0 -6.6
-------------------------------------------------------------------
Net cash flow from operations 72.4 15.1 27.5 27.9
Net cash used in investing activities
from operations -26.1 -21.3 -28.8 -15.7
Net cash used in financing activities
from operations -0.5 -0.7 -36.8 -40.0
-------------------------------------------------------------------
Change in cash and cash equivalents 45.8 -6.9 -38.1 -27.8
Cash and cash equivalents at beginning
of period -51.7 -58.9 -98.4 -123.3
Foreign exchange differences -0.5 0.3 1.4 -2.9
Cash and cash equivalents at end of period 98.0 51.7 58.9 98.4
-------------------------------------------------------------------
45.8 -6.9 -38.1 -27.8
2009 2009 2009 2009
10-12 7-9 4-6 1-3
---------------------------------------------------------------------
Cash flow from operations
Net profit 25.7 18.4 10.0 1.0
Adjustments 25.4 25.9 15.2 22.3
Change in net working capital 24.0 -26.4 -26.3 24.8
---------------------------------------------------------------------
Cash generated from operations 75.1 17.9 -1.1 48.1
Net financial expenses paid 0.1 5.0 -1.3 -3.0
Income taxes paid -3.5 5.7 -10.2 -6.4
---------------------------------------------------------------------
Net cash flow from operations 71.7 28.6 -12.6 38.7
Net cash used in investing activities
from operations -17.9 -8.3 -8.8 -18.2
Net cash used in financing activities
from operations -36.4 -17.8 27.6 -45.3
---------------------------------------------------------------------
Change in cash and cash equivalents 17.4 2.5 6.2 -24.8
Cash and cash equivalents at beginning
of period -105.6 -101.7 -94.6 -120.2
Foreign exchange differences -0.3 -1.4 -0.9 0.8
Cash and cash equivalents at end of period 123,3 105,6 101,7 94,6
---------------------------------------------------------------------
17,4 2,5 6,2 -24,8
QUARTERLY FIGURES BY SEGMENTS
Net sales by country, EUR million
2010 2010 2010 2010 2009 2009 2009 2009
10-12 7-9 4-6 1-3 10-12 7-9 4-6 1-3
-----------------------------------------------------------
Finland 240 199 228 222 233 199 230 227
Sweden 146 113 126 119 125 103 116 119
International 143 128 136 135 139 130 143 141
Group elimination -57 -53 -58 -52 -56 -48 -45 -48
-----------------------------------------------------------
Group total 472 387 431 423 441 383 445 438
Net sales by customer sector, EUR million
2010 2010 2010 2010 2009 2009 2009 2009
10-12 7-9 4-6 1-3 10-12 7-9 4-6 1-3
----------------------------------------------------------
Telecom 150 131 146 142 149 132 149 153
Finance 97 82 90 88 89 87 94 89
Industry sectors 225 173 194 193 203 165 201 197
----------------------------------------------------------
Group total 472 387 431 423 441 383 445 438
Operating profit (EBIT) by country, EUR million
2010 2010 2010 2010 2009 2009 2009 2009
10-12 7-9 4-6 1-3 10-12 7-9 4-6 1-3
-----------------------------------------------------------------------
Finland 22.0 24.0 25.9 22.6 33.9 28.1 25.6 22.7
Sweden 11.9 9.0 7.7 5.8 7.9 4.1 -6.2 -8.8
International -17.2 4.6 0.3 -1.4 2.4 0.9 -6.2 -3.7
Group operations -10.2 -9.9 -14.4 -8.2 -10.5 -6.8 -2.8 -5.3
-----------------------------------------------------------------------
Operating profit (EBIT) 6.4 27.7 19.5 18.8 33.7 26.3 10.4 4.9
Operating margin (EBIT) by country, %
2010 2010 2010 2010 2009 2009 2009 2009
10-12 7-9 4-6 1-3 10-12 7-9 4-6 1-3
------------------------------------------------------------------
Finland 9.1 12.0 11.4 10.2 14.6 14.1 11.1 10.0
Sweden 8.2 8.0 6.1 4.9 6.3 4.0 -5.3 -7.4
International -12.0 3.6 0.2 -1.0 1.7 0.7 -4.3 -2.6
------------------------------------------------------------------
Operating margin (EBIT) 1.4 7.2 4.5 4.5 7.7 6.9 2.3 1.1
Major shareholders 31 December 2010
Shares %
Solidium Oy 7 415 418 10.3
OP-Pohjola Group 4 061 278 5.6
Swedbank Robur fonder 3 785 902 5.3
Ilmarinen Mutual Pension Insurance Co. 3 154 367 4.4
Varma Mutual Pension Insurance Co. 2 099 749 2.9
Tapiola Pension 1 830 000 2.5
Svenska Litteratursällskapet i Finland 1 737 000 2.4
The State Pension Fund 873 167 1.2
Nordea funds 695 220 1.0
Pekka Viljakainen 646 447 0.9
-------------------------------------------------------------------
26 298 548 36.5
Nominee registered 30 575 898 42.5
Others 15 148 727 21.0
-------------------------------------------------------------------
Total 72 023 173 100.0
-------------------------------------------------------------------
Based on the ownership records of Euroclear Finland Oy and Euroclear Sweden AB.
According to the latest information, Cevian Capital's holding on 30 Sep 2010 was
5 546 191 shares which represent 7.7% of the shares and voting rights.
For further information. please contact:
Seppo Haapalainen, CFO, tel. +358 2072 63500, +358 400 455587,
seppo.haapalainen@tieto.com, at 10.00-11.00 am EET
Reeta Kaukiainen, VP, Communications and Investor Relations, tel.
+358 2072 68711,
+358 50 522 0924,reeta.kaukiainen@tieto.com
Pasi Hiedanpää, Manager, Investor Relations, tel.
+358 2072 68088, +358 50 378 2228,pasi.hiedanpaa@tieto.com
Press conference for analysts and media will be held at Tieto's premises in
Helsinki. address: Aku Korhosen tie 2-6, at 2.30 pm EET (1.30 pm CET. 12.30 pm
UK time). The results will be presented in English by Hannu Syrjälä, President
and CEO. Notification of attendance to sirpa.salo@tieto.com, tel.
+358 2072 68714.
The conference will be webcasted and published live on Tieto's website
www.tieto.com and there will be a possibility to present questions online. An
on-demand video will be available after the conference.
Tieto publishes financial information in English, Finnish and Swedish. All
releases are posted in full on Tieto's website as soon as they are published.
TIETO CORPORATION
DISTRIBUTION
NASDAQ OMX Helsinki
NASDAQ OMX Stockholm
Principal Media
Tieto is the leading IT service company in Northern Europe providing IT and
product engineering services. Our highly specialized IT solutions and services
complemented by a strong technology platform create tangible business benefits
for our local and global customers. As a trusted transformation partner, we are
close to our customers and understand their unique needs. With more than 17 000
experts, we aim to become a leading service integrator creating the best service
experience in IT, www.tieto.com
www.tieto.com
Tieto Corporation
Business ID: 0101138-5
Aku Korhosentie 2-6
PO Box 38
FI-00441 HELSINKI, FINLAND
Tel +358 207 2010
Fax +358 2072 68898
Registered office: Helsinki
E-mail: info@tieto.com
www.tieto.com
[HUG#1487381]
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