2013-07-19 07:00:00 CEST
2013-07-19 07:00:06 CEST
REGULATED INFORMATION
Tieto Oyj - Interim report (Q1 and Q3)
Interim Report 2/2013 (January–June) – Profitability improves despite a slow-growth IT services market
The full interim report with tables is available at the end of this release
-- Healthy order flow - significant contracts won in key industries
-- Weak telecom sector and divestments result in revenue decline - small
organic growth in the rest of the business
-- Delivering on earlier announced cost savings, additional actions initiated
in Consulting and System Integration
Key figures
-- Organically, net sales were down by 3% in the second quarter - outside the
telecom sector net sales were up by 1%
-- Operating profit excl. one-off items rose by 9% to EUR 31.3 (28.6) million
EUR million 4-6/201 4-6/201 1-6/201 1-6/201
3 2 3 2
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Net sales, EUR million 436.2 456.1 881.0 923.2
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Change, % -4 -1 -5 0
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Organic change, % -3 0 -2 1
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Operating profit (EBITA), EUR million 16.3 -1.9 47.4 41.7
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Operating margin (EBITA), % 3.7 -0.4 5.4 4.5
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Operating profit (EBIT), EUR million 15.5 -3.3 45.6 38.8
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Operating margin (EBIT), % 3.6 -0.7 5.2 4.2
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Operating profit (EBIT) excl. one-off 31.3 28.6 63.3 57.0
items1), EUR million
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Operating margin (EBIT) excl. one-off 7.2 6.3 7.2 6.2
items1), %
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Profit after taxes, EUR million 7.4 -6.8 28.8 25.2
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EPS, EUR 0.10 -0.10 0.40 0.35
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Net cash flow from operations, EUR million 10.0 -3.8 51.2 65.0
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Return on equity, 12-month rolling, % 6.6 11.7 6.6 11.7
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Return on capital employed, 12-month 13.9 18.2 13.9 18.2
rolling, %
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Investments, EUR million 15.3 13.6 32.6 28.0
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Interest-bearing net debt, EUR million 71.5 80.0 71.5 80.0
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Net debt/EBITDA 0.4 0.5 0.4 0.5
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Book-to-bill 1.2 1.2 1.0 1.1
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Order backlog 1 584 1 769 1 584 1 769
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Personnel on 30 June 15 447 17 723 15 447 17 723
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1)Excl. capital gains, impairments and restructuring costs
Full-year outlook for 2013 unchanged
Tieto expects its organic net sales to develop in line with the growth in the
market for IT services, with the exception of the weaker outlook in the telecom
sector.
Tieto expects its profitability to continue to improve and full-year operating
profit (EBIT) excluding one-off items to increase from the previous year's
level (EUR 138.8 million in 2012).
CEO's comment
Comment regarding the interim report by Kimmo Alkio, President and CEO:
“Despite the challenging macroeconomic environment, we are pleased to have
delivered a 9% improvement in underlying profit and won a number of significant
contracts during the second quarter.
Tieto is in a good position to support both large enterprises and the public
sector in achieving their rapidly changing business needs. We are actively
contributing to our customers' success by applying new technologies such as
cloud services which have now delivered double-digit growth through engagements
concluded this year.
During the quarter, we completed our divestment in Germany and the Netherlands,
driving a more focused and simplified company as defined in our strategy. In IT
services, our focus is on the Nordic region to support our customers' business
transformations, while Product Development Services pursues global customer
expansion in accordance with its renewed strategy.
In addition to innovation, price competitiveness continues to be a high
priority. Streamlining of the company has proceeded as planned and improved
Tieto's cost position. However, efficiency improvements will remain on our
agenda to ensure competitiveness and profitability.”
Financial performance by service line
EUR million Customer Customer Change, Operating Operati
sales sales % profit ng
4-6/2013 4-6/2012 4-6/2013 profit
4-6/201
2
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Managed Services 128 121 6 5.2 -3.7
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Consulting and System 107 125 -14 2.8 3.9
Integration
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Industry Products 121 127 -5 15.8 8.4
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Product Development 79 83 -5 -2.6 -3.9
Services
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Steering Functions and -5.6 -8.0
Global Management
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Total 436 456 -4 15.5 -3.3
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Operating margin by service line
% Operati Operati Operating Operating
ng ng margin excl. one-off margin excl.
margin margin items1) one-off
4-6/201 4-6/201 4-6/2013 items1)
3 2 4-6/2012
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Managed Services 4.0 -3.1 4.3 5.9
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Consulting and System 2.6 3.1 8.9 9.0
Integration
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Industry Products 13.0 6.6 14.0 9.9
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Product Development -3.4 -4.7 2.6 2.6
Services
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Total 3.6 -0.7 7.2 6.3
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1) Excl. capital gains, impairments and restructuring costs
Customer sales by industry group
EUR million Customer sales Customer sales Change, %
4-6/2013 4-6/2012
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Financial Services 97 92 5
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Manufacturing, Retail and Logistics 78 81 -3
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Public, Healthcare and Welfare 109 110 -1
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Telecom, Media and Energy 74 91 -19
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Product Development Services 79 83 -5
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Total 436 456 -4
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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
Pellervo Hämäläinen, Vice President, Communications and IR, tel. +358 2072
52729,
+358 40 674 5257, pellervo.hamalainen (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, at 11.00 am EET (10.00 am CET, 9.00 am
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 published live on Tieto's website
www.tieto.com/investors 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. As from
the first quarter of 2013, 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 private and public sectors. The company has global presence
through its product engineering business and the global delivery centers. Tieto
is committed to develop 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 at
approximately EUR 1.8 billion. Tieto's shares are listed on NASDAQ OMX in
Helsinki and Stockholm. Please visit www.tieto.com for more information.
Tieto Corporation
Business ID: 0101138-5
Aku Korhosen tie 2−6
PO Box 38
FI-00441 HELSINKI, FINLAND
Tel +358 207 2010
Registered office: Helsinki
E-mail: ir (at) tieto.com
www.tieto.com
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