Tieto Oyj - Company Announcement

Tieto Capital Market Day 2012 will focus on the company’s strategy implementation during 2012–2016

Tieto Corporation Stock Exchange Release 29 November 2012, 9.00 am EET

Tieto will today hold its Capital Market Day in Stockholm. During this event, 
the company will give an update on its strategy and plans for 2012-2016. Tieto
will also discuss market and business drivers and how the company plans to
develop its businesses. 

The company announced its new operating model and structure in March 2012. At
the CMD, Tieto will provide preliminary pro forma financial information based
on the new structure and reporting model. During the day, Tieto will also give
further insights into how it intends to reach its 10% EBIT target level during
the strategy period 2012-2016. Tieto confirms that the long-term financial
targets remain unchanged. 

The new operating model will be effective as of 1 January 2013. Tieto will
report revenue and operating profit (EBIT) for its four Service Lines: Managed
Services, Consulting and System Integration, Industry Products and Product
Engineering Services. For the four Industry Groups (Financial Services; Public,
Healthcare & Welfare; Manufacturing, Retail & Logistics; Telecom, Media &
Energy), Tieto will report revenue as from the first quarter of 2013. 

Tieto will also update the growth target for CSI operations following the
transfer of the application management business from Managed Services to CSI.
The new target for CSI growth is to increase the share of CSI to over 30% of
Tieto's net sales from the current level of over 25% during the strategy
period. The previous target was 25% of Tieto's net sales. 

The profit improvement will be driven through  the EUR 50 million competitive
cost structure programme, business mix change, improved quality, automation of
managed services and increase in offshoring capabilities. Tieto is building its
future growth by investing in CSI operations, utilizing its cross-selling
opportunities based on 800 large customers in the Nordic countries and new
solutions such as the company's new cloud offering. 

In connection with the on-going competitive cost structure programme, Tieto
will drive additional annual savings of over EUR 10 million, mainly related to
capacity optimization in the telecom sector and additional efficiency measures
across the company. Implementation of the measures is expected to materialize
by the end of the first quarter 2013 and Tieto estimates that it will book over
EUR 5 million in additional one-off costs related to the efficiency measures. 

“Tieto's strategy implementation proceeds as planned and we are well prepared
to take our new operating model into use at the beginning of 2013. This is an
important step in our strategy to offer our customers' with full life-cycle IT
services and to drive consistent profitability improvement towards our  10%
EBIT target by 2016. It also enables us to build stronger and integrated Tieto
driven by industry expertise, Nordic market focus and global delivery
capability. During this week, we have also demonstrated our innovation
capability with the launch of industry-leading cloud-based capacity services”,
says Kimmo Alkio, President and CEO. 

The 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 30 November. 



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 Financial Communications, tel. +358 2072 71725, +358
50 321 7510, tanja.lounevirta(at)tieto.com 

TIETO CORPORATION


DISTRIBUTION
NASDAQ OMX Helsinki
NASDAQ OMX Stockholm
Principal Media



Tieto is the leading IT service company in Northern Europe providing IT and
product engineering services. Our highly specialized IT solutions and services
complemented by a strong technology platform create tangible business benefits
for our local and global customers. As a trusted transformation partner, we are
close to our customers and understand their unique needs. With about 18 000
experts, we aim to become a leading service integrator creating the best
service experience in IT. www.tieto.com