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2010-11-25 08:00:00 CET 2010-11-25 08:01:04 CET REGULATED INFORMATION Tieto Oyj - Company AnnouncementTieto's Capital Market Day in Helsinki on 25 NovemberTieto Corporation STOCK EXCHANGE RELEASE 25 November 2010 at 9.00 am EET Tieto organizes its annual Capital Market Day for investors and analysts in Helsinki, Finland, today on 25 November starting at 9.30 am EET. The purpose of the event is to discuss Tieto's strategy and recent development of Tieto's businesses as well as selected topics that are relevant in the IT markets today. The theme for the day is "Best service experience in IT". The presenters in the event are Hannu Syrjälä, President & CEO; Seppo Haapalainen, CFO; Willem Hendrickx (Telecom & Media), Ilkka Korkiakoski (IT as a Service), Sampo Salonen (Global Service Lines), and Tuomo Summanen (Russia). In his presentation, CEO Hannu Syrjälä will talk about the trends in the IT market based on industry analyst estimates, Tieto's strategy for 2015 and potential growth areas. Tieto's strengths are based on deep technology know-how and strong infrastructure platform as well as solid financial position, advanced global delivery model and strong customer relations. This is the foundation for the company's growth going forward in all its main markets. Outsourcing services continue to offer good growth opportunities and IT as a service is trend that will have an impact on the whole IT sector and offers interesting potential for Tieto as well. From the industry perspective the company sees best opportunities in service industries such as the public sector, healthcare and welfare, energy and finance. The company sees large market opportunities also in Russia and Poland. CFO Seppo Haapalainen will discuss about profitability drivers with a focus on Tieto International and the impacts of offshoring and offering development on the company's performance. In October, Tieto announced that it will inform the markets about the reorganization in Tieto International, but these measures will not be discussed in this presentation. They will be announced later during the fourth quarter. However the following information on Tieto International's profitability will be available: approximately one third of Tieto International business has an operating margin that is currently above 8%. The annual net sales of loss-making international operations identified as potential divestment candidates amount to EUR 30-50 million. The offshoring-related sensitivity calculations show that a 5%-points increase in offshoring could have a negative 3%-point impact on net sales, but a positive 1%-point impact on the EBIT margin. These figures are indicative and based on calculatory analysis in which other profitability affecting parameters were held constant. The other presentations and their main topics are the following: - - IT as a Service: service-based IT, or cloud computing, will change the ways companies buy and deliver IT. To be one of the leaders in this area, Tieto has chosen to focus on certain core offerings and services and aims to be a transformation partner and IT service integrator for its customers. - - Delivery excellence: the presentation focuses on the company's global delivery model and the development steps into the current structure. As a result of the actions in this area, Tieto's offshoring rate is above 35% and utilization rate has improved since 2009. - - Russia: the presentation focuses on the Russian IT market and Tieto's current operations in the country. During 2010-2012, the expected CAGR for IT services market in Russia is expected to be 17%. At the same time, GDP is expected to grow by 3.5-4.5%. - - Telecom & Media: Telecom operations represent 34% of Tieto's net sales and the development in this industry segment has always had a big impact on Tieto's performance. The presentation focuses on Tieto's R&D operations and how the company's transformation has proceeded in this area during the past year. Today, 55% of R&D hours are delivered from offshore locations. Mobility is another key topic in this presentation. All the presentations are available in pdf format on the company's website on or about 9.00 am EET. The event can be followed through a live webcast on the company's website starting at 9.30 am EET. On-demand versions of the webcasts including presentation material will be available on Tieto's website after the event. For further information, please contact: Reeta Kaukiainen, Communications and Investor Relations, tel. +358 2072 68711 or +358 50 522 0924, reeta.kaukiainen@tieto.com TIETO CORPORATION DISTRIBUTION NASDAQ OMX Helsinki NASDAQ OMX Stockholm Principal Media Tieto is an IT service company providing IT, R&D and consulting services. With approximately 17 000 experts, we are among the leading IT service companies in Northern Europe and the global leader in selected segments. We specialize in areas where we have the deepest understanding of our customers' businesses and needs. Our superior customer centricity and expertise in digital services set us apart from our competitors. www.tieto.com [HUG#1465224] |
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