Solteq Oyj - Interim report (Q1 and Q3)

Solteq Plc Interim Report 1 January – 31 March 2017

Solteq Plc Stock Exchange Bulletin 20.4.2017 at 8.00 am

Towards profitable growth in a new CEO pilotage

Brief look at January – March 2017

- Repe Harmanen’s term of office as CEO ended on 17 February 2017. Olli
Väätäinen was appointed as CEO of the company as of 1 April 2017.

- Strategy will be fined down during the spring - the corner stones of the
strategy are growth, internationalization and digital customer encounter. We
will focus on exploiting the strong industry expertise, continuous improvement
of customer experience, strengthening skills and competencies, and implementing
lean and agile way of working in our own operations.

- Revenue was 15,4 million euro (15,4 million euro).

- Operating profit was 190 thousand euro (4 919 thousand euro).

- Adjusted operating profit was 1 023 thousand euro (732 thousand euro).

- Group’s equity ratio was 34,1 % (31,8 %).

- Earnings per share was -0,02 euro (0,27 euro).

Key figures and ratios

                       1-3/17  1-3/16  Change -%  1-12/16  Rolling 12 m
Revenue, EUR million     15,4    15,4      0,2 %     63,0          63,1
Operating profit, EUR     0,2     4,9    -96,1 %      6,4           1,7
million
Adjusted operating        1,0     0,7     39,8 %      3,1           3,4
profit, EUR million
Profit for the           -0,3     4,4   -106,4 %      4,6          -0,1
financial period, EUR
million

Earnings / share, EUR   -0,02    0,27   -106,1 %     0,26         -0,02
Operating profit -%     1,2 %  32,0 %              10,2 %         2,7 %
Adjusted operating      6,6 %   4,8 %               4,9 %         5,4 %
profit -%
Equity ratio, %        34,1 %  31,8 %              33,5 %        34,1 %



Olli Väätäinen, CEO of Solteq: Towards profitable growth

Year 2017 started with changes. In February, Solteq announced that Repe
Harmanen’s term of office as CEO has ended. I started as CEO on 1 April 2017.

In the first quarter of 2017, the business of the company was on solid basis and
the operative profitability stayed on satisfactory level. Our most important
short-term objective is to launch organic growth based on our existing
strengths. I believe that it is possible to grow, and grow profitably, by
utilising the company’s existing expertise and client insight in a more
effective manner.

Solteq is a digital customer engagement expert. Solteq will continue on the road
of its strategy of growth and international expansion driven by digital
disruption. Route choices to reach the destination will be made during the
spring. The focus will be on strong industry expertise, continuous improvement
of the customer experience offered by our clients, strengthening of our
expertise in terms of both quantity and quality, and the implementation of lean
and agile methods throughout the company.

Our clients rely on us. Due to the nature of our solutions, we are deeply
involved in our clients’ strategic business operations. Our task is to be the
partner that knows how digital disruption is turned into victory – regardless of
the client's industry. The solution that we can offer to our clients is our
expertise and services that we provide. We can also utilise our partner network
in our solutions. If required by the client, we provide a full range of services
from enabling technologies to continuous services and business support.

As our expertise is built on the competences and abilities of our personnel, we
will increase our investments in competence development. We already have an IBM
commerce technology competence centre that is the largest in the Northern Europe
and third largest in the world. We will make significant investments to grow our
expertise in other technology solution areas as well. In 2017, we will recruit
at least 100 new experts. After the first quarter, we will be in full swing.

We will maintain our earlier profit guidance concerning the adjusted operating
profit for 2017.

Guidance on Group outlook

Solteq Group’s adjusted operating profit is expected to grow compared to
financial year 2016.

Online-briefing for investors and media April 20th, 2017

The media and investor briefing for the announcement of financial performance of
the first quarter of 2017 will be broadcasted on Periscope April 20th, 2017 at
13.00 on channel @SolteqTweets. The briefing will be recorded and can be
accessed on the Solteq’s website later on the same day.

The online-briefing will also be broadcasted at the same time at Solteq Facebook
as live-video.

Further information

Olli Väätäinen, CEO, tel. +358 50 5578 111

Antti Kärkkäinen, CFO, tel. +358 40 8444 393

DISTRIBUTION

NASDAQ OMX Helsinki
Major media
www.solteq.com

Solteq in brief

Solteq is an expert in digital customer engagement. We deliver comprehensive
solutions for omnicommerce and boosting your business: from back-office
processes to customer experience ­­– from supply chain management to online
marketing. With 450 experts working in three countries Solteq deliveries
solutions to deliveries to Europe, North America, Asia and Australia.

Attachments:

04195312.pdf