Tieto: Tieto’s Interim Report 3/2016 – Solid Profitability – Well Positioned for Future Growth and Competitiveness

Regulatory News:

The full interim report with tables is available at the end of this release

Key figures for the third quarter

IT services

• Sales growth totalled 2.6%, sales in local currencies up by 3.1%
• Adjusted operating profit amounted to EUR 33.7 (36.8) million, 10.7% (12.0) of sales

The Group

• Sales growth totalled 1.6%, sales in local currencies up by 2.2%
• Adjusted operating profit amounted to EUR 35.4 (38.6) million, 10.4% (11.5) of sales
• Order intake (Total Contract Value) at EUR 406 (490) million, order backlog at EUR 1 722 (1 864) million – book-to-bill 1.2

1) amortization of all intangible items; previously, only acquisition-related intangible items

2) adjusted for restructuring costs, capital gains/losses, goodwill impairment charges and other items (see page 15)

Full-year outlook for 2016 unchanged

Tieto expects its adjusted 1) full-year operating profit (EBIT) to increase from the previous year’s level (EUR 150.8 million in 2015).

1) adjusted for restructuring costs, capital gains/losses, goodwill impairment charges and other items

CEO’s comment

Comment regarding the interim report by Kimmo Alkio, President and CEO:

"We ended the third quarter with good order intake and solid profitability while growth was modest. The significant agreements won during the quarter well demonstrate our competitiveness and support our growth ambition.

Our aim is to help customers renew their business: to provide truly innovative services and to constantly increase operational efficiency. As part of our renewed strategy, we adopted a new operating structure in July. While we transitioned to a new operating model and experienced temporarily lower efficiency, I am pleased how swiftly this was addressed. We believe that the new strategy combined with targeted investments will accelerate our performance and help us achieve our long-term financial objectives. To further strengthen our position in the attractive financial services market, we are pleased to have completed the acquisition of Emric, the Nordic market leader in software and services for credit processing. We are happy to welcome our new colleagues to join Tieto to accelerate our customers’ business renewal.

I believe that our existing investments, close co-innovation with our customers and continuous productivity improvements will provide us with a good basis for competitiveness and value creation in the future as well.”

Financial performance by service line

Operating margin by service line

1) adjusted for restructuring costs, capital gains/losses, goodwill impairment charges and other items

Customer sales by industry group

M&A impact by service line

M&A impact by industry group

Press conference for analysts and media will be held at Tieto’s premises in Stockholm, address: Fjärde Bassänvägen 15, on 25 October 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 can be viewed live on Tieto's website . To join the conference, attendees need Adobe Flash plugin version 10.1.0 or newer. 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 7479 0361

Sweden: +46 (0)8 5033 6574

UK: +44 (0)203 043 2002

US: +1 719 325 2131

Conference code: 6304748

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. An on-demand video will be available after the conference.

Tieto publishes financial information in English and Finnish.

TIETO CORPORATION

DISTRIBUTION

NASDAQ Helsinki

NASDAQ Stockholm

Principal Media

Tieto aims to capture the significant opportunities of the data-driven world and turn them into lifelong value for people, business and society. We aim to be customers’ first choice for business renewal by combining our software and services capabilities with a strong drive for co-innovation and ecosystems.

Headquartered in Finland, Tieto has over 13 000 experts in close to 20 countries. Tieto’s turnover is approximately EUR 1.5 billion and shares listed on NASDAQ in Helsinki and Stockholm. www.tieto.com

This information was brought to you by Cision http://news.cision.com

View source version on businesswire.com: http://www.businesswire.com/news/home/20161024006625/en/