Table of contents. Accelerating innovation and growth Kimmo Alkio. Nordic renewal and software driven international expansion Per Johanson

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1 Tieto Capital Market Day 2016

2 Table of contents Accelerating innovation and growth Kimmo Alkio Nordic renewal and software driven international expansion Per Johanson Digitalizing the entire society Cristina Petrescu and Håkan Dahlström Accelerating customers business renewal Satu Kiiskinen Efficiency and speed through modernization Håkan Dahlström Expanding to new domains Tom Leskinen Continued profit improvement and accelerating growth Lasse Heinonen Data: the lifeblood of economies Ari Järvelä Speakers IR contacts

3 Programme 31 May Lunch Opening Accelerating innovation and growth, Kimmo Alkio Coffee break Nordic renewal and software driven international expansion, Per Johanson Digitalizing the entire society, Cristina Petrescu and Håkan Dahlström Accelerating customers business renewal, Satu Kiiskinen Efficiency and speed through modernization, Håkan Dahlström Coffee break Expanding to new domains, Tom Leskinen Continued profit improvement and accelerating growth, Lasse Heinonen Data: the lifeblood of economies, Ari Järvelä Closing Bus to the hotel Taxi to dinner Get together The event will be webcasted and presentations will be available on Tieto s website as from 1 June.

4 Tieto Capital Market Day 2016, 31 May Helsinki Participants Michael Briest Bengt Dahlström Jan De Jaeck Johan Dyrstad Raul Etelämäki Joni Grönqvist Rami Hakola Victor Höglund Matti Kalliosalo Georgios Kertsos Heikki Kinnunen Otto Könkkölä Juha Laakso Panu Laitinmäki Anne Laurio Janne Lahdesmäki Samuli Majava Timo Maukonen Siddharth Mehra Pirjo-Marja Myllyniemi Hampus Nestius Jeremy Orsinet Anette Phillips Mikael Rautanen Matti Riikonen Julien Rivot Matti Saarimaa Sami Sarkamies Ritva Sipilä Jani Stenius Petter Söderström Ilkka Tawast Jenni Tiainen Janne Yliheikkilä Company UBS Swedbank ING Bank Handelsbanken Capital Markets Danske Bank Inderes Danske Capital SEB SEB Berenberg Ilmarinen Mutual Pension Insurance Company OP Corporate Bank plc Nordea Asset Management Danske Bank Danske Bank Aktia Asset Management OP Nordea Bank Morgan Stanley Danske Bank Cevian Capital BNP Paribas Fortis Bank SA/NV SEB Inderes Oy Carnegie Investment Bank ING Wholesale Banking Evli Bank Nordea Markets Swedbank Handelsbanken Solidium Oy Solidium Oy Nordea LähiTapiola Varainhoito Oy

5 Accelerating innovation and growth Kimmo Alkio President and

6 Solid foundation to accelerate value share of repeatable and new services offering development investments Tieto % 50% 0 80M+ growth in cloud services 40M 60M ~2% IT services organic revenue growth 40% 46% global delivery 6% 10% change in profitability excl. adjustments* Top quartile in customer satisfaction Top quartile in employee satisfaction 115% increase in market cap** *2015 change in profitability excl. adjustments compared to fiscal year 2011 ** Market cap change between 30 th Dec th May

7 Our view of tomorrow Personalized for every individual Infinite possibilities The world of information A world, rapidly developing with every new bit of information Endless opportunities to enhance millions of people's lives every second Lifelong value for every individual, business and society

8 Reshaping towards data-driven world visible in every industry Financial Services Forestry Healthcare and Welfare Logistics Manufacturing Public Services Retail and Wholesale Digital payment systems Value-added bioproducts Home care services Un-manned vehicles 3D printing Open public data applications Blurred distinction between retail, wholesale and manufacturing New entrants Increasing focus on services (e.g. on material) Wearable health technologies Digital supply networks M2M technology / Industrial internet Digital public services Resurgence of B2B e-commerce Scalable consumerization Investments in stakeholder interfaces Prevention & early detection Omni channel logistics Complete automation Digital signage and smart urban screens Shortage of digital retail skills Consolidation and partnerships Increase in partnering and outsourcing Patient - doctor personalized cosolution approach Increasing focus on B2C e- commerce B2B e-commerce Outsourcing government functions Evolving role of the store Logistics marketplaces 4

9 Growth and productivity opportunities in every industry driven by data and technology Personalized Digital citizen services Personalized medicine Health management Personalized financial services P2P / real-time payments Digital banking and insurance Mass customization Real-time retail Omni channel experience On-demand manufacturing Digital supply networks Autonomous logistics Co-innovate new businesses Data protection and confidentiality Consumer expectations Public services and Healthcare Financial Services Consumer Services Industrial Dual agenda driving customer business renewal Continuous efficiency in operations On-demand Public sector productivity Resource utilization Cost of care Regulatory compliance Claims process digitalization Post trade cost mutualization 24/7 on-demand services Real-time fulfillment Time to market Optimized supply chains Energy efficiency Industrial services Renew and optimize businesses 5

10 The world of duality reshapes software and services industry Co-innovate new businesses >50% of customer technology spending geared to digitalizing customer experience Western European spending on IoT >$250bn by 2020 Dual agenda driving customer business renewal Renew and optimize businesses 50% of cloud applications and services addressing new user needs and business logics by 2020 Software Analytics API Cognitive technologies to automate ~50% of current knowledge work in the next 10 years Cloud adoption >90% by 2018, CAGR >20% ( ) Traditional infrastructure and application services spending declines 5-10%, CAGR % growth in Nordic software and services market (Global 2-4%) Tieto s business mix expected to develop ahead of the market, through software intensity 6

11 Tieto strategy We aim to be our customers first choice for business renewal Services to accelerate customer value Build solutions and capabilities to accelerate our customers business performance and renewal. Nordic leadership and international expansion Further accelerate our strong market position in the Nordics and expand industry solutions internationally. Openness and co-innovation Co-innovate with customers and partners, access open talent networks and drive continuous skill and capability development. Business choices building on our strengths Vertical industry solutions Technology services and modernization New data-driven businesses

12 Product Development Services continues to drive R&D speed and efficiency for customers Continue innovating with world-leading global companies in network equipment, semiconductor and consumer businesses Grow by enabling connectivity in new industry segments such as connected equipment and connected traffic Increase customer value by investing into own products and solution accelerators Consumer devices Network Equipment Providers Semiconductor vendors Connected Enterprise and Equipment Intelligent traffic

13 Strong solution foundation to accelerate performance Industry solutions (sample) Healthcare: Lifecare Financial services: Banking and payments Energy: SmartUtility Manufacturing: Production Excellence Public sector: Case management Oil & Gas: Hydrocarbon accounting Cross-industry solutions (sample) Customer Experience Industrial Internet Security services Cloud & orchestration 9

14 Business mix shifting towards high-growth services Tieto's growth ambition for IT services: Faster than the market** (CAGR ) ~ 50% ~ 50% Emerging services- software & digital* Traditional services Up by 10%-20% Down by 5%-10% Industry solutions Cloud and modernization services New data-driven businesses Other integration and services Traditional infrastructure and application services Growth ambition (sample solutions CAGR) Customer Experience Management ~20% Lifecare ~10% Cloud >30% Security 30 50% Payments ~10% Enterprise Content Management ~10% Industrial Internet % *Includes current high-growth businesses and internal start-ups which represented ~20% of IT services sales in 2015 **Market growth expectation (CAGR) for the Nordics at 1.5 3% 10

15 Revenue MEUR Our competitiveness is driven by industry specific software, customer knowledge, industrialized services and partnerships Drivers of competitiveness 2500 Growth and business mix Software portfolio expansion and SaaS Data-driven businesses Pre-packaged industry solutions incl. vertical platform based BPO (BPaaS) Industrialization and cognitive automation Agile co-innovation with customers and partners Product development services Industry solutions Data-driven businesses Business consulting Product and implementation development services Technology servies Industry solutions and modernization Business consulting and implementation Technology services and modernization 11

16 Our choices to significantly improve scale Scale drivers Software businesses Industry specific software, standard architectures and SaaS Focus during strategy Pre-packaged solutions Automation Repeatable solutions, partnerships and business models Optimized work processes, reduced labor intensity and continuous improvement Customer base expansion Solution repeatability Delivery efficiency and quality Key drivers for consistent 10% profitability Open API Open APIs to drive faster time to market and accelerate solution portfolio Agile resourcing Global talent network incl. delivery centers Faster access to talent through delivery centers and open talent networks 12

17 We implement the strategy in phases Actively expand internationally Expand productized services internationally Drive large-scale expansion to adjacent markets Drive innovation and selective market entry Scale chosen industry solutions internationally Accelerate and commercialize data-driven businesses Operationalize open talent networks and innovation ecosystem Standardize service architectures and cognitive automation Accelerate capabilities in Sweden and industry solutions Accelerate capabilities and growth in Sweden Implement new structure and operating model Invest into SIAM*, service productization and cognitive automation Expand selected industry solutions internationally Pilot data-driven businesses 13 *Service Integration and Management

18 We align our structure with the strategic choices New data-driven businesses Financial Services Public, Healthcare and Welfare Industrial and Consumer Services Faster time to market and co-creation opportunities with the customer by organizing BCI and Industry solutions in Industry groups Business consulting & implementation Industry solutions Focus on scale, productivity, automation and technology renewal driven by consolidating all outsourcing, cloud and technology services into TSM Technology Services and Modernization Product Development Services New data-driven businesses as an independent business with flexible processes optimized for faster time to market and fail fast PDS with its own go-to-market and global reach Support Functions Effective as of 1 July 2016 Industry groups Service lines 14

19 Financial objectives: Attractive shareholder returns to continue Ambition 2020 IT services revenue growth above the market (CAGR) Focus on new businesses and Industry solutions expansion increased investments Organic growth at least at market rate 10% reported operating margin (EBIT) Adjusted *) margin sustainably above 10% Offering development below 5% of sales (OPEX) Aim is to increase dividends annually in absolute terms Strong cash-flow driving attractive dividend profile Net debt / EBITDA 1.5 as an upper limit in the long run Investment capacity for organic and inorganic growth CAPEX expected to remain below 4% of sales 15 *) Adjusted for restructuring costs, capital gains/losses, impairment charges and other one-off items

20 Profit M Revenue M Accelerated value creation and further upside 2500 Revenue growth Market average Ambition to growth above market and improved profitability Further potential Strategic objective The business mix to cloud, prepackaged solutions and industrialized deliveries drives value creation Profit growth adj. Continuous efficiency improvement in service delivery and optimal SG&A One-off costs normalize during the strategy period

21 MEUR MEUR Increased offering development investments to accelerate growth, while improving profitability Offering and industrialization investments Profit development Data driven Data-driven businesses businesses Industry solutions Industry solutions Profit with investments Managed services industrialization Other offering development Profit with without investments Profit without investments Accelerated investments into industry solutions Managed services industrialization investments to stabilize during the strategy period Investments to new data-driven businesses released in a gated manner proportional to growth Proven profitability improvement in spite of increased investments Offering development investment levels subject to growth realization and outlook Optimization of SG&A and industrialization contribute to profit improvement 17

22 Each business with favorable outlook for growth and profit contribution Technology Services and Modernization Business Consulting and Implementation Target profitability Target profitability % Average market growth 0% Average market growth Industry Solutions Target profitability Product Development Services Target profitability * % 0% Average market growth Average market growth *) excluding the business related to the key customer insourcing R&D

23 We continue to balance growth, innovation and efficiency to perform Growth Innovation Efficiency Accelerate industry solutions and growth businesses Global expansion of selected SW products CEM, cloud integration and Security Industry specific solutions in manufacturing, banking and HCW Pilot pre-packaged business solutions extending SW to BPaaS with partners Initiate new data-centric businesses and global talent networks Pilot cognitive automation Simplify decision making and structures Managed services industrialization Quality and productivity Drive innovation and market expansion Expand software business portfolio incl. SaaS Market expansion of proven industry solutions Commercialized data-driven services incl. potential start-ups Innovation networks and proven cocreation model for data-driven services Pilot outcome based business models New business solutions extending SW Cognitive automation driving productivity Global talent networks providing real-time access to talent Industry specific standard cloud packages Quality and productivity Expand internationally & scale Establish proven vertical solutions as global businesses New data-centric services in growth phase Potential expansion to adjacent markets Extend innovation networks globally to incubate new businesses and solutions Industrialized market expansion practices Full benefits from cognitive automation Quality and productivity Offsetting factors Salary inflation Price erosion Legacy decline Scarcity of talent Macroeconomic uncertainty Salary inflation Price erosion Legacy decline Scarcity of talent Macroeconomic uncertainty Salary inflation Price erosion Legacy decline Scarcity of talent Macroeconomic uncertainty 19

24 We aim to be customer s first choice in business renewal share of software and industry solutions of revenues as offering investments Tieto 2020 management ambition ~40% 100M+ growth from datadriven businesses ~5% >5% IT services revenue growth p.a.* 80% shared managed services incl. cloud 10-12% SG&A as % of revenue *Formal guidance: IT services revenue growth above the market (CAGR) **Formal guidance: 10% reported operating margin (EBIT) +1-2% increase in Nordic market share 10% consistent profitability** Customer s first choice! Great place for innovation and growth Above industry average TSR 20

25 Our purpose Value for life Value for people Value for business Value for society 21

26 Tieto strategy We aim to be our customers first choice for business renewal

27 All information in this material is for informational purposes only. The opinions and viewpoints regarding, inter alia, the future of the company and markets are of Tieto and may not actually materialize. This information should not be construed as an investment recommendation or investment advice. All information expressed herein is subject to change without notice. Neither Tieto nor its officers nor employees shall have any liability for any loss sustained by anyone who has relied on the information provided.

28 Confidential

29 Internal Financial Services Public, Healthcare and Welfare Industrial and Consumer Services BCI Industry Solutions TSM Product Development Services Nordic renewal and software driven international expansion Per Johanson Financial Services

30 Key facts BCI Industry Solutions Financial Services Public, Healthcare and Welfare Industrial and Consumer Services Services Full-stack industry solutions including advisory capabilities, integration and outsourcing of business & IT operations Industry products in Retail Banking/ Finance, Capital Markets and Payments TSM Product Development Services Proportion of Tieto s sales FS Sales by SL BCI IS TSM Customers and market position Market leader in FS in the Nordics and Baltics Growth partly based on scalable Industry Products outside the core markets - emerging position among large European banks Top 5 cards and cash management software position Nordic leader in several banking domains FS: Financial Services BCI: Business Consulting and Implementation TSM: Technology Services and Implementation IS: Industry Solutions Figures in this presentation are preliminary and may be subject to changes during the completion of the company s new structure 2

31 Driving modernization and digitalization for the Nordic FS industry position in global payments improving fast Our ambition #1 Preferred business renewal partner to Nordic customers based on competitive full-stack solutions Our choices Focus on full scope, compliant and pre-packaged solutions for banking & finance customers Become Nordic industry solution market leader in Banking & Payments and runner up in Wealth & Insurance #3-5 Globally recognized player in Retail Payments (Cards) and Cash management solutions market #1 Build new insurance & wealth mgmnt solutions for Nordic customers incl new partners & Fintech ecosystem Expand Payments (Cash Management & Cards) market position globally through partner network and scalable solutions 3

32 Great transformation and growth in the FS market yield plenty of opportunities KEY TRENDS AND REASONS FOR SPENDING LEADING TO BUSINESS OPPORTUNITIES M A R K E T Regulation, compliance pressure Modular supply and demand of services Digital design and experience Cost mutualization and back-office outsourcing High spending in payments & transaction banking areas Increasing need for front-end modernization and innovation accelerators Digital startup platforms emerging to offload new services development outside legacy Growing need for shared utilities based on digital platforms FS software & solutions integration Advisory services Digital startup platforms Shared utilities as a service model Lifecycle & ind sol ns driven outsourcing RISKS & CHALLENGES High competition from global companies High level of compliance High efficiency and scalability needed Investments levels 4

33 Pre-packaged industry solutions and payments software to provide scalable growth platforms Nordic key and SME customers Global banks and large enterprises Full Stack Industry Solutions Payments Digital Customer Experience Solutions 5 10% Retail Banking Solutions Payment Solutions Capital Markets & Wealth Mgmt Solutions Insurance Solutions Cash Mgmnt & Corp paym Cards & Retail Paym Corporate Treasury 5 10% 15% 10 15% <5% <5% <5% <5% Estimated market share Risk & Compliance Solutions <5% SaaS Full stack Global Partners 5

34 Industry solutions driving growth Sales Growth drivers Digital design, service experience, business transformation, compliance services Partner solutions and analytics Focus on high-growth / investment areas like BaaS, Payments, Wealth Scalable and repeatable solutions Global expansion capabilities Full-stack outsourcing support capabilities Industry Solutions Business Consulting and Implementation Technology Services and Modernization Performance drivers Market position and scale in the Nordics Best services and industry competence Billing rates and culture/values Scalable solutions and platforms Keeping right level of R&D

35 Competitive edge from full-stack capabilities and services coupled with scalable own software Services Mode of expansion Our differentiation Software Services & Solutions Competitive industry-specific software e.g. Payments, Capital Markets Standardized and scalable Industry solutions e.g. Banking as a Service (incl. 3 rd party software) Large customer base and leading position in the Nordics for modernization International expansion of selected software incl. SaaS and 3 rd party channels Modernize Nordic customers, drive ondemand services and co-create new industry solutions Regional fit, competences and packaging, but globally competitive solutions ~2 000 FS industry experts Co-innovation with customers & partners Proven execution (reference base) and transformation capability Pre-packaged stack, incl. own software, cloud compliance, modernization and biz renewal 7

36 Pre-packaged solutions to Nordic market and international expansion of selected software GROWTH R&D NEW SERVICES Payments Global growth and expansion through partners R&D to create scalable product and organization CURRENT SERVICES Wealth & insurance Digital channels BaaS Payments Digital Channels BaaS BCI Innovate digital channel services for Nordic customers R&D focus on enhancing customer experience elements in all industry solutions Nordic focus with full-stack as a Service solution R&D to package Tieto IPR, partners, BPO and full life cycle based outsourcing Grow BC to support Nordic business renewal R&D to integrate advisory & transformation services into solutions TSM BCI Wealth & Insurance TSM Transform CM business to SaaS and Utility market R&D to tap into wealth and insurance digitalization and business renewal opportunities Drive modernization of customers IT operations R&D to build world-class capabilities for modernization, outsourcing and full-stack solutions NORDIC GLOBAL 8

37 Tieto CardSuite scalable solution in global markets Saas delivery mode available Customer convenience as the greatest priority Business drivers agility, flexibility, high-tech solutions PA DSS compliant Switching Issuing Acquiring Interfaces to international Payment networks Interfaces to local Payment networks New innovative product card in card Seamless integration with existing banking systems 9

38 Tieto BaaS full-stack banking solution for the Nordic markets and beyond Best-of-breed products from Tieto and partners Online and mobile banking seamlessly linked with backend Keep leading position in travel money in the Nordic region End-to-end services incl. modernization and BPO Baas Industry expertise as pre-packaged full-stack solution Improve time-to-market for new service development and launch Compliant, hosted as a Service solution 10

39 All information in this material is for informational purposes only. The opinions and viewpoints regarding, inter alia, the future of the company and markets are of Tieto and may not actually materialize. This information should not be construed as an investment recommendation or investment advice. All information expressed herein is subject to change without notice. Neither Tieto nor its officers nor employees shall have any liability for any loss sustained by anyone who has relied on the information provided.

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41 Internal Financial Services Public, Healthcare and Welfare Industrial and Consumer Services BCI Industry Solutions TSM Product Development Services Digitalizing the entire society Cristina Petrescu and Håkan Dahlström Public, Healthcare and Welfare

42 Key facts BCI Industry Solutions Financial Services Public, Healthcare and Welfare Industrial and Consumer Services Services End-to-end industry solutions and software in Healthcare, Welfare, Education and Case management Technology modernization services for customer IT renewal TSM Product Development Services Proportion of Tieto s sales PHWC Sales by SL BCI TSM IS Customers and markets Governments, regions, and municipalities in the Nordics Market position #1 supplier in Finland #1 supplier in Sweden #5 supplier in Norway PHWC: Public, Healthcare and Welfare BCI: Business Consulting and Implementation TSM: Technology Services and Implementation IS: Industry Solutions Figures in this presentation are preliminary and may be subject to changes during the completion of the company s new structure 2

43 Ambition to increase market share to 20% in the Nordics Aging population XX% in NN Aging population and chronic diseases increase pressure of public expenditure Lifecare 13% Citizen-centricity and involvement Ease to use and easily accessible services for citizens. Open and shared data. The digitalization of entire society Efficient leadership and productivity gains with better information management and enhanced collaboration through ICT. Public 360 Modernization and cloudification Our market share 13% - ambition to increase to 20% The Nordic IT services market in Public, Healthcare and Welfare 3.2 beur with estimated growth rate of 3-4% Our average growth rate constantly exceeded the market growth 3

44 Pre-packaged industry solutions and software products driving growth in the Nordics Government, regions and municipalities in Nordics Healthcare and welfare solutions Case management solutions Lifecare Healthcare Lifecare Welfare Lifecare Education Industry Solution Concepts with 3rd parties Public 360 Proarc Intelligent transport solutions MARKET SHARE 60% FI 65% SE 25% SE 45% NO 35% NO MAIN GROWTH OPPORTUNITY SE NO FI DK Europe 4

45 Leading renewal partner in the Nordics building on the current market-leading position Our ambition Substantially increase market share in the whole public sector in Sweden, Norway and Finland Our choices Expand presence cross Nordics by using pre-packaged industry solutions and industry consulting Best-in-class service experience and efficient supplier of services Focus on citizens user experience and organizations digitalization journey Regarded as thought leader and forerunner in the Nordic public sector Investing in software, pre-packaged industry solutions and eco-systems 5

46 Digitalization of the entire society driving growth Sales Growth drivers Digitalization of the public sector Modernization of customers technology landscape Cloudification, SaaS Cross-selling software solutions Pre-packaged solutions Performance drivers Business Consulting and Implementation Industry Solutions Technology Services and Modernization Scale, non-linear growth Standardization Offshoring 6

47 Customer cases

48 Tieto guides Bergen, Norway s second biggest municipality, on its digitalization journey Bergen wants to be a driving force in the digitalization of the public sector in Norway Goal: better and more public services for citizens, businesses and employees. Automation and increased selfservice improves the quality and efficiency of citizen services.

49 Digitalizing cancer care paradigm change Case: Region Västra Götaland, Sweden FROM Supplier License Cost 40 days TO Partner Prime Value 5 days

50 All information in this material is for informational purposes only. The opinions and viewpoints regarding, inter alia, the future of the company and markets are of Tieto and may not actually materialize. This information should not be construed as an investment recommendation or investment advice. All information expressed herein is subject to change without notice. Neither Tieto nor its officers nor employees shall have any liability for any loss sustained by anyone who has relied on the information provided.

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52 Internal Financial Services Public, Healthcare and Welfare Industrial and Consumer Services Accelerating customers business renewal Satu Kiiskinen Industrial and Consumer Services BCI Industry Solutions TSM Product Development Services

53 Key facts BCI Industry Solutions TSM Figures in this presentation are preliminary and may be subject to changes during the completion of the company s new structure 2 Financial Services Product Development Services Proportion of Tieto s sales ICS Public, Healthcare and Welfare Sales by SL TSM Industrial and Consumer Services BCI ICS: Industrial and Consumer Services BCI: Business Consulting and Implementation TSM: Technology Services and Implementation IS: Industry Solutions IS Services End-to-end industry solutions and software in production excellence, smart utility and hydrocarbon accounting Nordic market leader in industry consulting, customer experience solutions and implementations for enterprise applications Technology modernization services for ICS focus industries Market segments and geographies Large enterprises in Forest, Retail, Manufacturing, Logistics, Energy and Telecom Full portfolio of services for Nordic-based customers Global expansion for selected own solutions by own and partner channels Market position # 2 in the Nordics, #1 in Finland. # 2 in Sweden, Leading position in production excellence in forest industry globally #1 supplier of customer information systems in the Nordic energy utilities Nordic market leader in customer experience solutions World-wide leader in Hydrocarbon Accounting software

54 Actively advising and modernizing customers IT to accelerate their business renewal Our ambition Nordic leader in digital customer experience solutions Market leadership in portfolio of repeatable industry solutions across industrial and consumer value chain Preferred business renewal partner for Nordic customers based on competitive full stack solutions Forest Pulp and Paper Transport Telecom Oil and Gas Retail Manufacturing Utilities Construction Speciality retail Energy Media Logistics Our choices Accelerate digital transformation by providing best-in-class customer experience solutions Innovate and invest in building vertical industry solutions supporting the customers business renewal Mining Modernize customers core business platforms through best in class enterprise applications towards industry platforms ICS customer facing the challenge of duality Disruptions in both industrial and consumer value chains 3

55 Business renewal continues in Nordic ICS businesses Co-innovate new businesses Mass customization Real-time retail Omni channel experience CEOs expect their digital revenue to increase more than 80% by 2020 *) Dual agenda driving Industrial and Consumer business renewal Renew and optimize businesses On-demand manufacturing Digital supply networks Autonomous logistics Optimized supply chains Energy efficiency Industrial services 24/7 on-demand services Real-time fulfillment Time to market 47% of IT spending for digitalization will go towards refactoring existing core business processes *) In Nordic ICS market, the core process renewals for improved efficiency are now moving towards cloud-enabled ERP-solutions In the next phase, value chain disruption will result in a new wave of renewal and co-innovation opportunities *) Source: Global industry analysts and press releases 4

56 Core capabilities and Assets Industry Consulting Building upon our strong industry knowledge and leading industry solutions Industrial Consumer ICS building blocks Co-innovate new businesses Buy Make Sales Service End-to-end process Telecom Transport Oil and Gas Manufacturing Retail Mining Energy Forest Construction Speciality retail Media Logistics Dual agenda driving customer business renewal Repeatable and scalable solutions Production Excellence Hydrocarbon Accounting Customer Experience management Industrial Services Smart Utilities Real Time supply chain Media products Renew and optimize businesses Analytics Enterprise Applications Tieto Cloud Services 5

57 We renew our customers business with our own and ecosystem solutions Manufacturing Retail & Logistics Telecom & Media Energy & Utilities Forest. Buy Make Sales Service Manufacturing and Logistics consulting Real time supply chain Industrial Services Partner solutions Analytics Enterprise App Tieto Cloud Service E2E customer process understanding Market leading Industry solutions around IoT and on-demand logistics Industry ecosystem partners to provide e2e solution Use of cognitive intelligence to optimize asset flow Customer core process renewal implementation Leading own and 3rd party technology platforms Example: Industrial equipment vendor to renew itself by providing e2e-port fleet management solution as-a-service 6

58 We aim for above-market growth in all services Sales ~ 50% ~ 50% Business Consulting and Implementation Industry Solutions Technology Services and Modernization Growth drivers Digitalization driving Industry Consulting and Customer Experience Management growth of 10 20% (CAGR) Core business process renewals leading to growth of over 5% (CAGR) in Enterprise Application implementation and Analytics Core business process renewals leading to legacy IT modernization and move to cloud-based solutions > 2% CAGR Selected inorganic growth and geographical expansions New business models with enlarged solution scope combining own and ecosystem solutions Performance drivers Service productization and pre-packaged services improving scalability while reducing cost of implementation Efficiency through shared product- and solution-creation methodologies Industrialized delivery and automation Skill and consulting business model renewal driving benchmarked utilization 7

59 Investments in software-centric solutions and new services drive ICS scale ICS Key Bets Production Excellence Smart Utilities Hydrocarbon Accounting Customer Experience Management Real-time supply chain solutions Industrial Services Growth % Lifecycle stage Geographical expansion Global Europe Global Nordics Nordics Nordics ICS Key Competencies Design competency (UX, CX, Visual, Interaction, Strategic), Industry expertise and architecture, Digital strategist, Cognitive intelligence and Analytics, Data Scientists 8

60 We have already started this journey Omnichannel Paper & Pulp Mill Renewal SmartUtility Increase online sales at DNA for B2B and B2C Solution: Omnichannel implementation as simple platform for both B2B and B2C customers. Resulting in 65% online revenue growth for DNA Production process automation for one of the largest paper factory in central Europe Solution: A digital automated, self- learning mastermind to oversee the entire factory management. Sales system renewal and invoicing solution for Vattenfall Solution: Automated, fast and flexible cloud platform based on a pay-as-youuse service using Tieto Smart Utility 9

61 Aiming for the pole position to accelerate our customers business performance and renewal Transport Manufacturing Pulp and Paper Telecom Oil and Gas Utilities Retail Mining Energy Forest Construction Speciality retail Media Logistics #1 in digital customer experience solutions in Nordics in production excellence solutions across forest industry globally in hydrocarbon accounting solutions globally of customer information systems (Smart Utility) in the Nordic energy utilities 10

62 All information in this material is for informational purposes only. The opinions and viewpoints regarding, inter alia, the future of the company and markets are of Tieto and may not actually materialize. This information should not be construed as an investment recommendation or investment advice. All information expressed herein is subject to change without notice. Neither Tieto nor its officers nor employees shall have any liability for any loss sustained by anyone who has relied on the information provided.

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64 Internal Financial Services Public, Healthcare and Welfare Industrial and Consumer Services Efficiency and speed through modernization Håkan Dahlström Technology Services and Modernization BCI Industry Solutions TSM Product Development Services

65 Key facts BCI Industry Solutions Financial Services Public, Healthcare and Welfare Industrial and Consumer Services Services Technology advisory Managed services - applications, integration, application platforms, infrastructure, workplace and security Enterprise cloud solutions TSM Product Development Services Proportion of Tieto s sales TSM Sales by Industry Group FS ICS PHCW Customers and markets Serving enterprises headquartered in the Nordics Public sector Market position #1 in Finland #2 in Sweden Active expansion in Norway Leader in Nordic enterprise cloud TSM: Technology Services and Modernization ICS: Industrial and Consumer Services PHWC: Public, Healthcare and Welfare FS: Financial Services Figures in this presentation are preliminary and may be subject to changes during the completion of the company s new structure 2

66 Technology modernization as the prime enabler for customers to drive efficiency in current businesses and build new revenue streams Leverage the existing Run business in dual mode Orchestrate the future Harvest the legacy including data and functionality. Modernize and create foundation for the digital. Balance the traditional and new while building digital future. Business as digital and digital as business. Become an attractive ecosystem/partner -driven player that harnesses its business and technology platform. DIGITAL MODE Disrupt and evolve The digitalization journey Digital Strategy Transformation Management Digital Platform Modernization & Asset harvesting Technology acceleration Innovations and disruptions Customer Experience Transition to industrialized delivery Service Integration & Management (SIAM) Service Governance Continuous Improvement 3

67 Market dynamics driven by customer s need for technology and business renewal Technology enablers Market implications Explore new business models Productivity and speed Business continuity API management Cloud integration & orchestration Hybrid cloud Cognitive automation DEVOPS Service Integration & Management Managed security Industrialized continuous services Software driven infrastructure 15 25% growth in PaaS and SaaS in the next 5 years 40 50% of infra services delivered through private and public cloud by 2020 Managed security services growth 10 15% No growth in traditional applications Cloud integration and business integration brokerage growth 10% Nordic outsourcing growth 1% 4

68 We aim to be the market leader in the Nordics We actively advise our customers, realize their digital ambition and modernize their applications landscape Our ambition Thought leader in new service areas, digitalizing Nordic customers with hybrid cloud and prepackaged solutions Our choices Expand presence in Nordics, invest in new service areas e.g. managed cloud, security and integration services Preferred modernization and service integration partner with best in class service experience Service integration and management with predefined partnerships; Active modernization of customer application and infrastructure landscape Most efficient supplier in the Nordics, utilizing robotics and cognitive automation Investing into standardization, cognitive automation and digital channels 5

69 Our competitiveness is the combination of new, traditional and modernization services TSM s ambition is to grow at least at the market rate*) Sales growth in (CAGR) ~ 50% UP 5 20 % Cloud apps and Security Solutions Eco-system solutions Hybrid Cloud and Cloud solutions ~ 50% New services Renewal and modernization Traditional services UP 2 5% DOWN 5% Renewal and modernization of traditional Infra & Apps Service integration and experience Traditional infrastructure and application services *) Nordic outsourcing market growth ~1%, below IT services average growth of 1.5 3% 6

70 Accelerating competitiveness and scale Drivers of competitiveness Superior end-user experience and quality with cognitive technologies Standard technology modernization framework and tools Drivers of scale Industrialized managed services (application and infra) and cognitive automation Standard service architecture Pre-defined cloud packages and partnerships (local and global) Digital channels for service access and delivery Full-service capability and knowledge of customer processes in the Nordics Global talent network incl. delivery centers Opportunity to outpace average market growth Solid contribution to Tieto s profitability ambition 7

71 Solid contribution to Tieto s scale Target profitability Growth drivers Expansion in Sweden and Finland Market entry into Norway New services Hybrid cloud, Cloud apps, security, integration Service integration and pre-integrated partnerships Price erosion ~5%annually as a hindrance 0% Average market growth Performance drivers Global delivery Standardized services and modernization Cognitive automation Nordic outsourcing market growth ~1%, below IT services average growth of 1.5 3% 8

72 Proven solutions and services for Nordic customers Large Nordic bank BIX Modernization of infrastructure landscape and moving to cloud environment Increased security and improved efficiency in IT Major IT transformation moving from traditional to flexible capacity needs 50% increase in the speed of application development and deployment; 75% of nonmainframe services on cloud, while maximizing legacy utilization Cloud service for business to business integration, customers, 27 sales partners Potential for customers to reduce costs up to 1% revenue 9

73 All information in this material is for informational purposes only. The opinions and viewpoints regarding, inter alia, the future of the company and markets are of Tieto and may not actually materialize. This information should not be construed as an investment recommendation or investment advice. All information expressed herein is subject to change without notice. Neither Tieto nor its officers nor employees shall have any liability for any loss sustained by anyone who has relied on the information provided.

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75 Internal Financial Services Public, Healthcare and Welfare Industrial and Consumer Services BCI Industry Solutions TSM Product Development Services Expanding to new domains Tom Leskinen Product Development Services

76 Key facts BCI Industry Solutions Financial Services Public, Healthcare and Welfare Industrial and Consumer Services Services Focused high-end R&D services with healthy offshoring/nearshoring ratio Strengthening portfolio of own products and solutions in the areas of networking as well as development tools and operations TSM Product Development Services Proportion of Tieto s sales Sales by segment Customers and markets Leading R&D service provider for tier-1 original equipment manufacturers in the telecommunications domain Recognized technology leader in software-defined networking and R&D for cloud technologies Widening customer base with ~50 international customers PDS PDS: Product Development Services Devices Networks Semiconductors New industries Market position Figures in this presentation are preliminary and may be subject to changes during the completion of the company s new structure 2 One of the globally leading R&D services and solutions suppliers in connectivity and networking technologies Strong presence in North America, Europe and China Growing market position in the semiconductor domain with several new customers

77 Developing and innovating the interconnected world of 2020 Our ambition Globally recognized leading-edge solutions and expertise provider in emerging technologies to enable the digitalized and networked world Our choices Focus on new technologies, including LTE, 5G, SDN, Cloud, IoT, Connected Car, etc. Grow SW and solutions share of the PDS business to ¼ of the total business volume in 2020 Build wide industry alliance and partnership portfolio to complement own products, assets and offerings Complementing Tieto s IT solutions by offering relevant R&D capabilities in domains, such as Industrial Internet, Intelligent traffic, Industry 4.0. Expand R&D services to new industry domains using world-class technology expertise 3

78 IoT and 5G as market drivers Internet of Things or Connected products is becoming a critical investment area for global R&D spenders. Zinnov report of Global R&D Service provider ratings 2015 The cloud is the most important trend shaping the future of the smart, connected world and thus Intel s future 5G will become the key technology for access to the cloud and as we move toward an always-connected world. Brian Krzanich, CEO of Intel Corporation. 5G network with very low latency levels would be one possible solution to let autonomous cars talk to one another in the future. Ericsson CEO Hans Vestberg 4

79 5G and new domain entries as growth opportunities for us Key trends Impact on business Opportunities 5G becoming a system for the future communications needs Telecom and IT convergence Intelligent traffic and self-driving cars IoT devices, i.e. all devices and equipment will be connected Major R&D investments for 5G started by semicon and NEP industry *) Cloud technology becoming an essential part of R&D in our domains SW and R&D for intelligent and connected vehicles and infrastructure Growing amount of SW and R&D opportunities in new domain s 3G/4G outsourcing New 5G opportunities New major infrastrucure opportunitites in V2X New domain in IoT devices space Risks Fierce competition in IoT R&D Internal R&D continues to pose a big threat 5 *) 5G related R&D investments before 2020 estimated to be 5-25BUSD

80 Semicon ductor vendors Network Equipment Providers Consumer devices Moving into new domains together with our customers Smart home, Wearables and other forms of IoT Strong consolidation to few players only IT convergence 5G as key enabler for transition IT convergence Everything gets connected Key customers from existing domains are already extending their business into the new domains Revolution in Value chains Electric and autonomous cars V2V and V2X connectivity Infrastructure players more local than regional Value chains still forming up All industrial companies will be involved Strong Tieto-wide vertical synergies Intelligent Traffic Connected Erterprise and Equipments 6

81 Pre-packaging and partners core in scaling SCALE DRIVER COMPETI- TIVENESS EXECUTION SPEED World leading technology expertise World s first NB-LTE (NB-IoT) implementation ongoing! Cross-industry knowledge Ecosystem approach, e.g. Intel Network Builders & ISA Networking products with partner expansions to support new business New solutions for Intelligent Traffic and IoT device customers. Development tools & solutions SaaS with professional services R&D automation with Tieto Development Environment. Strong industry alliance portfolio and open source contributor ARM mbed, Google Brillo & Weave, Apple Homekit, Linux, DPDK, Openstack, OpenNFV, Qt, etc. 7

82 Business mix evolving within the existing domains and with new industries Sales *) 2020 Upside potential New Industries Devices Semiconductors Networks *) excluding the business related to a key customer s decision to insource R&D 8 Business dynamics Network business continues strongly and transforms towards cloud, 5G and new infrastructure areas Semiconductor business expanding via new and strong customer portfolio Devices business transforming to consumer-centric business and covering wider portfolio of consumer electronics categories New industries growing strongly in new domains Additional potential SW products and solutions can bring further scale New domain growth potentially much bigger Tieto IT synergies accelerate new domains Potential for non-organic growth is strong in new industry areas

83 Positive future outlook with ample opportunities Target profitability * 2020 Growth drivers Global 5G investment New industry domains opening new R&D business for PDS and IT Tieto Partner solutions and offering extensions Growing customer base Performance drivers 0% Average market growth Flexible resourcing for good utilization Strong focus on partnering Healthy offshoring ratio *) excluding the business related to a key customer s decision to insource R&D 9

84 5G and IoT transformation has already started 5G transformation IoT devices SmartHome solutions Development Ability of to data adjust centre technology capacity for robust in response and to scalable computing for 5G. fluctuations in demand SDN/VFN platform and product Reduce development, time to market backplane switching and connectivity etc. Helping customers with time to market of wearables products from our Wearables solution centre. Synergies from semicon, devices and apps development strongly contributing to integrated solutions Unifying connectivity in the smart home environment between all devices/things. Intelligent IoT Gateway is an open source reference platform that accelerates development and management of smart home applications.. 10

85 All information in this material is for informational purposes only. The opinions and viewpoints regarding, inter alia, the future of the company and markets are of Tieto and may not actually materialize. This information should not be construed as an investment recommendation or investment advice. All information expressed herein is subject to change without notice. Neither Tieto nor its officers nor employees shall have any liability for any loss sustained by anyone who has relied on the information provided.

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87 Internal Financial Services Public, Healthcare and Welfare Industrial and Consumer Services Continued profit improvement and accelerating growth Lasse Heinonen CFO BCI Industry Solutions TSM Product Development Services

88 Update

89 Strong progress and increased ambition level Objectives set in Objective EBIT margin EBIT margin, adjusted Dividends Net debt/ebitda 3.5% 8.6% 7.6% 10.3% EUR 0.83 EUR % 0.1% 10% Increase annually <1.5 TSR annually up by 25% (CAGR ) Growth ambition upgraded in 2016 IT services revenue growth above the market (CAGR) Figures in this presentation are preliminary and may be subject to changes during the completion of the company s new structure 3

90 Ambitions set in 2012 on track Managed Services Tieto target profitability Average market growth Consulting and System Integration Tieto target profitability Average market growth MS Cloud driving growth Automation driving profitability CSI Customer modernization driving growth Profitability affected by recruitments in new areas Industry Products Tieto target profitability Average market growth Product Development Services Tieto target profitability Average market growth IP Growth in line with ambition Increased investments in offering development PDS Business well adjusted to new level of volumes ambition for the full year

91 Positive trend in key ratios MEUR Net sales, EUR million % MEUR 200 EBIT adjusted, % ,3 9,9 8 8, , Cash flow % of net sales 11 9,9 8,9 9, % MEUR Capital expenditure % of net sales % 150 4,5 5 3,4 3, , ,5 1 0,5 0-0,5-1 Net debt / EBITDA 0,2 0,1-0,4 0,

92 Strategic choices reflected in the new structure New reporting segments as of 1 July Sales 2015, EUR million EBIT 2015, EUR million Pre-packaged solutions Joint ventures CEM MS logics, incl. AM Industry Products -> Industry Solutions Consulting and System Integration -> Business Consulting and Implementation Managed Services -> Technology Services and Modernization Product Development Services 6

93 Our ambition and value creation

94 Increased growth focus and continued attention on profitability dividend policy unchanged Ambition 2020 IT services revenue growth above the market (CAGR) Focus on new businesses and expansion of industry solutions increased investments Organic growth at least at market rate 10% reported operating margin (EBIT) Adjusted *) margin sustainably above 10% Offering development below 5% of sales (OPEX) Aim is to increase dividends annually in absolute terms Strong cash flow driving attractive dividend profile Net debt / EBITDA 1.5 as an upper limit in the long run Investment capacity for organic and inorganic growth CAPEX expected to remain below 4% of sales 8 *) Adjusted for restructuring costs, capital gains/losses, impairment charges and other one-off items

95 Growth in industry solutions and productivity gains drive improved profits and cash flow Competitive industry solutions incl. own software Growth New data-driven business with co-innovation Customer base expansion in the Nordics and international expansion with software businesses Growth bets, incl. Cloud, CEM, IoT, Security Total Shareholder Return Profit improvement Business mix with increased software portion Operational efficiency: incl. automation & quality SG&A improvement Aim to produce TSR that outperforms the industry Investments in high-growth offerings Growth and profit improvement driving operative cash flow Cash flow Attractive dividend yield Optimal capital structure 9

96 Strengthened competitiveness enables higher growth at strong profitability SALES GROWTH Divestments of non-core businesses *) Share of legacy started to decline PDS business volumes down IT services turned to growth in 2014 Growth bets defined and few bolt-on acquisitions Existing businesses provide growth potential Positive business mix with accelerating share of emerging services and software Selective acquisitions based on good M&A capability PROFIT IMPROVEMENT More focused and efficient operations Increased investment in growth: offering development and new competencies Offshoring ratio from 40% to 46% Transformation resulted in high restructuring costs Growth drives increased profits in absolute terms Offering development below 5% of sales investment levels based on growth outlook Continuous delivery productivity improvement via automation SGA improving further Stabilizing restructuring costs 10 *) impact of ~160 meur on annual level

97 Adjusted profit M Revenue M Accelerated value creation and further upside 2500 Revenue growth Market average Further potential Strategic objective Adjusted EBIT margin from 7.6% to 10.3% Profit growth Growth-related profit improvement Margin improvement Profit improvement mainly driven by growth

98 Key drivers Productivity gains driving margin improvement ambition to achieve 10% before 2020 Adjusted EBIT margin % Adjusted EBIT margin % EBIT margin 10% 2015 Business mix Productivity increase SG&A Offering development Salary inflation/ other <2020 Annual restructuring <2020 Growth of higher-margin business Automation and standardization improving revenue/fte Growth expected to drive improved SG&A ratio Offering development expected to remain below 5% of sales Salary inflation ~2 3% annually 12

99 Revenue mix change supports profit ambitions Revenue mix, EUR million EBIT adjusted, EUR million Industry Solutions Business Consulting and Implementation Technology Services and Modernization Product Development Services

100 Revenue per FTE Offshore ratio We continue to drive operational efficiency Productivity to improve further Offshore ratio gradually increasing Revenue/FTE Number of personnel Offshore ratio 14

101 Sales and SG&A, EUR million Restructuring costs, % of sales Restructuring costs expected to stabilize SG&A ratio expected to improve % 25% 20% 15% 10% 5% 0% Restructuring costs down < 2% of sales Sales SG&A SG&A / Sales Restructuring costs, % of sales Adjusted EBIT margin, % 15

102 Offering development costs Investment focus on high-growth offerings Margin ambition includes higher development costs % Data-driven businesses Other offering development Industry solutions Managed services industrialization Total offering development costs % of sales Growth ambition (CAGR) for selected solutions Cloud services >30% Customer Experience Management ~20% Enterprise Content Management ~10% Lifecare ~10% Payments ~10% Security 30 50% 16

103 Ambitions by Service Line Technology Services and Modernization Target profitability Business Consulting and Implementation Target profitability 2020 TSM Cognitive automation and standardization while price erosion continues Industry Solutions Target profitability 0% Average market growth Product Development Services Target profitability 0% Average market growth 0% 0% Average market growth Average market growth 2015* BCI Pre-packaged services improving scalability Industrialized delivery IS Scalable industry solutions New data-driven businesses PDS Flexible resourcing for targeted utilization rates *) excluding the business related to the key customer insourcing R&D

104 Cash flow profile remaining healthy Cash flow and net working capital Cash flow improvement supported by a decrease in net working capital 2016 Cash flow improvement driven by Profit improvement, including lower restructuring costs Capital expenditure *) expected to remain below 4% of sales Active working capital management continues Net cash from operations, meur Net working capital, meur Cash Conversion Rate**) expected to stay at ~1, excluding seasonal variations *) Excl. M&A **) (Net cash flow from operations CAPEX) / Net profit for the period 18

105 Dividends Net Debt/ EBITDA Strong balance sheet 1,5 1 0,5 0,2 0,1 0,1 0-0,4-0, Net Debt/EBITDA Debt capacity for M&A while maintaining dividend policy EUR 200+ million Assuming net debt/ebitda < EUR 300+ million Assuming net debt/ebitda temporarily at Dividends, EUR million Additional dividends, EUR million 19

106 M&A to support profitable growth key criteria Strategic fit Business attractiveness stand alone Execution and integration asessment Valuation and expected returns Deal dynamics Strategic fit Valuation To expand and complement our Industry Solutions To add services and products that benefit from Tieto s extensive Nordic market reach To leverage on our capabilities & increase market share in the Nordics To potentially expand internationally over time Accretive to Tieto s financial targets Valuation multiples of targets, including synergies, below ours synergies firm and measured tightly ROIC clearly exceeding Tieto s WACC (6.4% in 2015) 20

107 Software intensity in the business mix provides higher value creation opportunity EV/EBIT (NTM) EV/Sales (NTM) 20,0x 15,0x 10,0x 5,0x Tieto Software companies *) IT services companies **) 0,0x ,5x 2,0x 1,5x 1,0x 0,5x Tieto Software companies *) IT services companies **) 0,0x Ambition 2020: 40% of Tieto s business mix to be software based 21 Average multiple of a group based on next twelve months forecast *) Companies included: Comptel, Digia, F-Secure, Opera Software, QPR Software, SAP, Tecnotree and Vitec **) Companies included: Acando, Addnode, Affecto, Atos, Cap Gemini, CGI Group, HiQ international, Knowit, NNIT and Proact IT Group

108 We continue to drive shareholder return above the industry average Positive financial development to continue Increased investments to support innovation and growth Attractive dividend policy Total Shareholder Return above industry average The leading Nordic software and services company with the aim to be customers first choice for business renewal 22

109 All information in this material is for informational purposes only. The opinions and viewpoints regarding, inter alia, the future of the company and markets are of Tieto and may not actually materialize. This information should not be construed as an investment recommendation or investment advice. All information expressed herein is subject to change without notice. Neither Tieto nor its officers nor employees shall have any liability for any loss sustained by anyone who has relied on the information provided.

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111 Data: the lifeblood of economies Ari Järvelä Data-driven businesses

112 Summary: Data as the lifeblood of the economy Data is the prime driver of human experience and economic value New services and business models in each industry Open architectures, faster time to market and ecosystems are critical to success We co-innovate new data-driven services and business models with our customers

113 Data as the prime mover of personalized experiences and new business models Digital supply networks Cyber security Digital health management Autonomous logistics Factory of the future Personalized health Real-time retail Digital payments Digital public services Digital assistants Smart homes Smart health monitoring homes trillions of global economic impact

114 Business value driven by data supply chains, open ecosystem and solutions across industry boundaries Foundation Technologies Cognitive Virtual reality Use cases and business models Co-innovate with ecosystem customers Robotics Solution portfolio Internet of things Open ecosystem Open data

115 Data-driven businesses as a start-up to co-innovate scalable new business models with customers Knowledge from Tieto start-ups Nordic customer base Data-driven businesses Co-innovation business portfolio Wellbeing & health at home Transport as a Service Security Intelligent buildings Information as a Service Exponential growth 0 100M Non-linear business models Global ecosystem Software and services Co-innovation Commercialization support Technology and data platform Accretive to Tieto s profitability ambition

116 Example: Transport as a service Car sharing Crowdsourced logistics Transport as a service ecosystem Connected vehicles Connected traveller Bicycle sharing system Consumer Person to person car rental Autonomous Transport system Service operator Real-time traffic management E-call Fleet & ride sharing Personal travel planner Insurance Multimodal Transportation services Smart payment system Tieto Transport authorities Subsidized transport Smart parking Road user charging Location based advertisement Government Fleet operators My Mobility Services Employers Service Platform Transportation Fleet Data