Tieto Corporation STOCK EXCHANGE RELEASE 27 May 2014, 10.00 am EET
Tieto will today arrange its Capital Market Day in Helsinki. The company will provide insights to the changes in IT services market and elaborate its investments in selected growth offerings. Presentations will provide further updates on the company’s strategy execution and outlook for its Service Lines and Industry Groups in 2014–2016.
In the long run, Tieto’s ambition is to grow faster than the market in IT services, with growth mainly coming from services driving end-customer experience and cloud services as well as selected industry products. The company will increase its investments in offering development with focus on emerging services, e.g. Customer Experience Management, Industrial Internet and Lifecare.
Tieto anticipates that IT services industry change, including digitalization, will drive renewal of Tieto’s services and competences. The company will recruit and develop people in emerging services to address the new growth opportunities in the market. In parallel, traditional services will become less labour intensive due to industrialization of infrastructure and application management.
The company reconfirms the financial objectives for the strategy period, with an updated dividend policy. Tieto’s aim is to increase dividends annually in absolute terms and pay a minimum of 50% of its net result. Due to its healthy cash flow, clearly exceeding annual investment levels, the company has increased its dividends four years in a row. The long-term target of 10% EBIT margin is unchanged. The business mix change, resulting from the growth in emerging services, competitive cost structure and industrialization of services are anticipated to be key drivers for profit improvement.
“Continued technology disruption and the changes in customer requirements will affect the whole IT industry, opening up new opportunities for growth. Our business mix will evolve during the coming years with high-growth offerings contributing to our ambition to grow faster than the market. We expect to continue solid execution of our chosen strategy to meet our confirmed long-term objectives. Our ambition is to remain attractive for all stakeholders by providing excellent services to our customers, career opportunities to employees and attractive shareholder returns to investors,” says Kimmo Alkio, President and CEO.
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 28 May.
For further information, please contact: Lasse Heinonen, CFO, tel. +358 2072 66329, +358 50 393 4950, lasse.heinonen (at) tieto.com
Tanja Lounevirta, Head of Investor Relations, tel. +358 50 321 7510, tanja.lounevirta (at) tieto.com
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 14 000 experts, the company operates in over 20 countries with net sales of approximately EUR 1.6 billion. Tieto’s shares are listed on NASDAQ OMX in Helsinki and Stockholm. Please visit www.tieto.com for more information.