2014-02-06 07:00:01 CET
2014-02-06 07:00:05 CET
REGULATED INFORMATION
Tieto Oyj - Financial Statement Release
Interim Report 4/2013 – Tieto’s profitability improving – growth offerings defined
Tieto Corporation FINANCIAL STATEMENT RELEASE 6 February 2014, 8.00 am EET
The full interim report with tables is available at the end of this release
-- A year of challenging demand closes with strong order intake
-- Efficiency programme on track, causing high restructuring costs
-- Increasing investments in selected growth businesses
Key figures for the fourth quarter
-- Organically, net sales were down by 6.6%
-- Outside the telecom sector, net sales were organically down by 3.5%
(excluding currency effect -1.4%)
-- Fourth-quarter operating profit excl. one-off items decreased to EUR 42.7
(44.2) million, margin increased to 10.2% (9.2)
Key figures for the full year
-- Organically, net sales were down by 3.7%
-- Outside the telecom sector, net sales were organically down by 0.7%
(excluding currency effect -0.4%)
-- Full-year operating profit excl. one-off items rose to EUR 143.8 (138.8)
million, margin increased to 8.6% (7.6)
-- Proposed dividend up by 8% to EUR 0.90 (0.83) per share, representing
dividend yield of over 5%
EUR million 10-12/20 10-12/20 1-12/20 1-12/20
13 12 13 12
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Net sales, EUR million 417.0 478.6 1 671.3 1 825.3
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Change, % -12.9 -2.3 -8.4 -0.2
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Organic change, % -6.6 -0.1 -3.7 1.3
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Operating profit (EBITA), EUR million 18.7 -6.8 91.9 68.3
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Operating margin (EBITA), % 4.5 -1.4 5.5 3.8
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Operating profit (EBIT), EUR million 17.8 -7.8 88.2 63.0
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Operating margin (EBIT), % 4.3 -1.6 5.3 3.5
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Operating profit (EBIT) excl. one-off 42.7 44.2 143.8 138.8
items1), EUR million
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Operating margin (EBIT) excl. one-off 10.2 9.2 8.6 7.6
items1), %
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Profit after taxes, EUR million 15.0 -18.5 62.2 29.4
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EPS, EUR 0.21 -0.26 0.86 0.41
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Net cash flow from operations, EUR million 63.7 60.6 153.8 161.9
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Return on equity, 12-month rolling, % 12.0 5.5 12.0 5.5
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Return on capital employed, 12-month 17.3 13.2 17.3 13.2
rolling, %
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Investments, EUR million 23.6 19.3 71.7 62.9
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Interest-bearing net debt, EUR million 1.9 23.9 1.9 23.9
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Net debt/EBITDA 0.0 0.2 0.0 0.2
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Book-to-bill 1.4 1.5 1.1 1.1
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Order backlog 1 624 1 703 1 624 1 703
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Personnel on 31 December 14 699 16 537 14 699 16 537
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1) Excl. capital gains, impairments and restructuring costs
Full-year outlook for 2014
Tieto expects its full-year operating profit (EBIT) excluding one-off items to
increase from the previous year's level (EUR 143.8 million in 2013).
CEO's comment
Comment regarding the interim report by Kimmo Alkio, President and CEO:"2013 was a challenging year, but our fourth-quarter order book was strong and
profitability continued to improve. In the low-demand environment we decided to
invest in our longer-term competitiveness in terms of both new service
innovations and cost efficiency. This led to high restructuring costs but has
strengthened Tieto's position in the globally competitive environment.
We now look forward to focusing on higher-growth business opportunities. We
will increase our investments in selected services, including customer
experience management, healthcare solutions, early-stage investments in the
industrial internet, and next generation cloud services. With these
investments, we expect to increase the speed of our customers' business
transformation. Through our investments in growth businesses I look forward for
Tieto to play a big role in new innovative services.”
Financial performance by service line
EUR million Customer Customer Change, Operating Operati
sales sales % profit ng
10-12/2013 10-12/2012 10-12/2013 profit
10-12/2
012
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Managed Services 129 127 2 -1.7 5.1
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Consulting and System 101 131 -22 -1.6 4.5
Integration
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Industry Products 123 137 -10 29.3 11.4
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Product Development 63 84 -24 -1.3 -23.9
Services
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Support Functions and -6.9 -5.0
Global Management
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Total 417 479 -13 17.8 -7.8
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Operating margin by service line
% Operatin Operatin Operating Operating
g g margin excl. one-off margin excl.
margin margin items1) one-off
10-12/20 10-12/20 10-12/2013 items1)
13 12 10-12/2012
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Managed Services -1.3 4.1 5.4 7.8
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Consulting and System -1.6 3.4 7.6 14.1
Integration
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Industry Products 23.8 8.3 24.0 13.5
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Product Development -2.0 -28.6 4.2 2.8
Services
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Total 4.3 -1.6 10.2 9.2
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1) Excl. capital gains, impairments and restructuring costs
Customer sales by industry group
EUR million Customer sales Customer sales Change, %
10-12/2013 10-12/2012
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Financial Services 93 94 -1
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Manufacturing, Retail and Logistics 81 85 -5
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Public, Healthcare and Welfare 113 127 -11
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Telecom, Media and Energy 68 89 -24
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Product Development Services 63 84 -24
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Total 417 479 -13
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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 2072 71725, +358 50 321
7510, tanja.lounevirta (at) tieto.com
Press conference for analysts and media will be held at Tieto's premises in
Helsinki, address: Aku Korhosen tie 2-6, at 11.00 a.m. EET (10.00 a.m. CET,
9.00 a.m. UK time). The results will be presented in English by Kimmo Alkio,
President and CEO, and Lasse Heinonen, CFO.
The conference will be webcasted and can be viewed live on Tieto's website. The
meeting participants can also join a telephone conference that will be held at
the same time. The telephone conference details can be found below.
Telephone conference numbers:
Finland: +358 (0)9 6937 9590
Sweden: +46 (0)8 5033 6538
UK: +44 (0)20 3427 1909
US: +1 212 444 0412
Conference code: 6359552
To ensure that you are connected to the conference call, please dial in a few
minutes before the start of the press and analyst conference. There will also
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. The full
interim report with tables is available only in English and Finnish.
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 15 000
experts, the company operates in over 20 countries with net sales of
approximately EUR 1.7 billion. Tieto's shares are listed on NASDAQ OMX in
Helsinki and Stockholm. Please visit www.tieto.com for more information.
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