Tieto Oyj - Company Announcement

Tieto Capital Market Day 2014: Reorienting for growth

Tieto Corporation STOCK EXCHANGE RELEASE 27 May 2014, 10.00 am EET

Tieto will today arrange its Capital Market Day in Helsinki. The company will
provide insights to the changes in IT services market and elaborate its
investments in selected growth offerings. Presentations will provide further
updates on the company's strategy execution and outlook for its Service Lines
and Industry Groups in 2014-2016. 

In the long run, Tieto's ambition is to grow faster than the market in IT
services, with growth mainly coming from services driving end-customer
experience and cloud services as well as selected industry products. The
company will increase its investments in offering development with focus on
emerging services, e.g. Customer Experience Management, Industrial Internet and
Lifecare. 

Tieto anticipates that IT services industry change, including digitalization,
will drive renewal of Tieto's services and competences. The company will
recruit and develop people in emerging services to address the new growth
opportunities in the market. In parallel, traditional services will become less
labour intensive due to industrialization of infrastructure and application
management. 

The company reconfirms the financial objectives for the strategy period, with
an updated dividend policy. Tieto's aim is to increase dividends annually in
absolute terms and pay a minimum of 50% of its net result. Due to its healthy
cash flow, clearly exceeding annual investment levels, the company has
increased its dividends four years in a row. The long-term target of 10% EBIT
margin is unchanged. The business mix change, resulting from the growth in
emerging services, competitive cost structure and industrialization of services
are anticipated to be key drivers for profit improvement. 

“Continued technology disruption and the changes in customer requirements will
affect the whole IT industry, opening up new opportunities for growth. Our
business mix will evolve during the coming years with high-growth offerings
contributing to our ambition to grow faster than the market. We expect to
continue solid execution of our chosen strategy to meet our confirmed long-term
objectives. Our ambition is to remain attractive for all stakeholders by
providing excellent services to our customers, career opportunities to
employees and attractive shareholder returns to investors,” says Kimmo Alkio,
President and CEO. 

Tieto Capital Market Day will be webcasted with a live stream. A link to the
webcast and the material for the event are available at
www.tieto.com/Investors. On-demand videos will be available during 28 May. 



For further information, please contact:
Lasse Heinonen, CFO, tel. +358 2072 66329, +358 50 393 4950, lasse.heinonen
(at) tieto.com 
Tanja Lounevirta, Head of Investor Relations, tel. +358 50 321 7510,
tanja.lounevirta (at) tieto.com 


TIETO CORPORATION



DISTRIBUTION
NASDAQ OMX Helsinki
NASDAQ OMX Stockholm
Principal Media



Tieto is the largest Nordic IT services company providing full life-cycle
services for both the private and public sectors and product development
services in the field of communications and embedded technologies. The company
has global presence through its product development business and global
delivery centres. Tieto is committed to developing enterprises and society
through IT by realizing new opportunities in customers' business
transformation. At Tieto, we believe in professional development and results. 

Founded 1968, headquartered in Helsinki, Finland and with approximately 14 000
experts, the company operates in over 20 countries with net sales of
approximately EUR 1.6 billion. Tieto's shares are listed on NASDAQ OMX in
Helsinki and Stockholm. Please visit www.tieto.com for more information.