2013-04-25 07:00:00 CEST
2013-04-25 07:00:11 CEST
REGULATED INFORMATION
Tieto Oyj - Interim report (Q1 and Q3)
Interim Report 1/2013 (January–March) – Business focus and efficiency drive profitability
Tieto Corporation INTERIM REPORT 25 April 2013, 8.00 am EET
Interim Report 1/2013 (January-March) - Business focus and efficiency drive
profitability
The full interim report with tables is available at the end of this release
-- Execution of the competitive cost structure programme continued well -
mitigating the anticipated weakness in the telecom sector
-- New operating model in place, taking the strategy forward
-- Cost savings in Product Development Services paying off, strategy defined
Key figures
EUR million 1-3/2013 1-3/2012 1-12/2012
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Net sales, EUR million 444.8 467.1 1 825.3
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Change, % -5 1 0
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Organic change, % -2
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Operating profit (EBITA), EUR million 31.1 43.6 68.3
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Operating margin (EBITA), % 7.0 9.3 3.7
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Operating profit (EBIT), EUR million 30.1 42.1 63.0
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Operating margin (EBIT), % 6.8 9.0 3.5
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Operating profit (EBIT) excl. one-off items, EUR 32.0 28.4 138.8
million
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Operating margin (EBIT) excl. one-off items, % 7.2 6.1 7.6
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Profit after taxes, EUR million 21.4 32.0 29.4
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EPS, EUR 0.30 0.45 0.41
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Net cash flow from operations, EUR million 41.2 68.8 161.9
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Return on equity, 12-month rolling, % 3.7 15.4 5.5
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Return on capital employed, 12-month rolling, % 11.7 21.7 13.2
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Investments, EUR million 17.3 14.4 62.9
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Interest-bearing net debt, EUR million 6.9 11.7 23.9
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Net debt/EBITDA 0.0 0.1 0.2
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Book-to-bill 0.8 1.0 1.0
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Order backlog 1 627 1 719 1 703
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Personnel on 31 March 16 354 18 121 16 537
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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:
“I'm pleased to see the continued improvement in our profitability, driven
primarily by the cost-efficiency measures we initiated last year. We expected
the first quarter to be challenging, as we implemented a major structural
change in our operations. Now that the structural changes are behind us and the
transparency of our businesses has improved, we can concentrate on the
implementation of our chosen strategy. Price competitiveness has become
increasingly important as customers actively drive transformation programmes to
improve cost-efficiency.
The Nordic IT services market continues to be dynamic with enterprises actively
adopting new technologies. This transformation-centric customer agenda fits
well with our priorities. Our focus remains on innovation, solution packaging
and a global delivery scale - all of which improve competitiveness. As an
example, our recently launched cloud services have received a positive response
during the first quarter with customers signing up to this highly efficient and
flexible service concept.
I'm also pleased that our Product Development Services is ready to begin
implementation of its recently decided strategy, which focuses on global
customers in the communications and embedded technologies segment.
Implementation of the refined strategy enhances our ability to become the
number one product development partner to our targeted customers.”
Financial performance by service line
EUR million Customer Customer Change, Operating Operati
sales sales % profit ng
1-3/2013 1-3/2012 1-3/2013 profit
1-3/201
2
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Managed Services 125 124 1 1.3 -2.5
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Consulting and System 108 127 -15 3.8 12.7
Integration
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Industry Products 126 130 -3 18.5 32.4
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Product Development 86 86 1 9.3 2.5
Services
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Steering Functions and -2.7 -3.0
Global Management
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Total 445 467 -5 30.1 42.1
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Operating margin by service line
% Operatin Operatin Operating Operating
g g margin excl. one-off margin
margin margin items excl.
1-3/2013 1-3/2012 1-3/2013 one-off
items
1-3/2012
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Managed Services 1.0 -2.0 0.7 -1.7
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Consulting and System 3.5 9.9 4.7 10.0
Integration
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Industry Products 14.6 24.9 14.8 13.1
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Product Development 10.8 3.0 11.6 4.1
Services
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Total 6.8 9.0 7.2 6.1
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Customer sales by industry group
EUR million Customer sales Customer sales Change, %
1-3/2013 1-3/2012
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Financial Services 94 94 0
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Manufacturing, Retail and Logistics 76 82 -7
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Public, Healthcare and Welfare 114 112 1
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Telecom, Media and Energy 74 93 -20
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Product Development Services 86 86 1
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Total 445 467 -5
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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 4067 45257, 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
Stockholm (address: Fjärde Bassängvägen 15) at 11.30 am EET (10.30 am CET, 9.30
am UK time). The results will be presented in English by Kimmo Alkio, President
and CEO.
The conference will be webcasted and published live on Tieto's website
www.tieto.com 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 will be
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 17 000
experts, the company operates in over 20 countries with net sales of
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@tieto.com
www.tieto.com
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