Tieto Q4 09. the right track shifting focus. March 2010 London, the UK. Seppo Haapalainen CFO Reeta Kaukiainen VP, Comms&IR. Corporation.

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1 Tieto Q4 09 Sales down, profitability on the right track shifting focus to growth March 2010 London, the UK 2010 Tieto Corporation Seppo Haapalainen CFO Reeta Kaukiainen VP, Comms&IR

2 IT professionals in close to Tieto 30 countries Customers on all continents today One of the leading IT service companies in Northern Europe; a global leader in selected segments Net sales EUR million in 2009 Listed in NASDAQ OMX Helsinki and Stockholm Founded in Tieto Corporation

3 Markets and customers: IT markets stabilizing markets bottomed out in 2009 IT market relevant for Tieto down approximately 5% in 2009 Finance and telecom sectors bottomed out Mixed development in other industry sectors continue Modest growth expected in 2010 Market for projects expected to pick up only in the second half 2010 Robust demand for Outsourcing New service models e.g. cloud computing New energy-efficient efficient data centres under construction in Finland, Sweden and Russia to support future growth Recent customer wins: Finland: Local Government Pension Institution, Metsäliitto Group, Metso, NSN, Tradeka Sweden: Bilprovningen, Kammarkollegiet, Nacka Municipality, Smurfit Kappa Kraftliner International: China mobile, Lukoil 3

4 Q4 financial highlights: g Profitability improvement continues Sales down by 10% to EUR 441 million 7.6% EBIT driven by successful streamlining actions 500 All country segments profitable Strong net cash flow of EUR million EPS EUR Dividend proposal EUR 0.50 MEUR Net sales EBIT % Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 0 4

5 Q4 and FY2009: Key figures Q4/2009 Q4/2008 FY/2009 FY/2008 Net sales, EUR million Operating profit, EUR million EBIT, % Operating profit excl. one-off items, EUR million EPS, EUR Net cash flow from operations Gearing, % Personnel on 31 December

6 Streamlining actions: Savings targets for 2009 achieved Savings targets EUR 70 million in 2009 EUR 100 million in 2010 Achievements* Cost base down in line with the EUR 70 million target of which approx. 50% from lower personnel costs 25% from business expenses 20% from less subcontracting One-off costs EUR 50.8 million EUR 4.8 million in Q4 * Excluding non-recurring items and exchange rates

7 FY2009 recap: Strong execution in an exceptionally tough environment + New operating model implemented successfully Renewed company brand and culture positively acknowledged Improved employee satisfaction Savings target achieved Significant quality and efficiency improvements Offshore rate at 30% Steady profitability improvement after Q1 Good cash-flow - Growth ambitions hit by recession Sales down by 9% 6% in local currencies Significant price pressure especially in telecom Project services hit hard Basis for growth established

8 Quarterly development Net sales Operating profit and margin (excl. one-time items) MEUR MEUR % Cash flow Gearing % MEUR 8

9 Offshoring ratio at 30%: India and China growing fast % 30 % 25 % 20 % 15 % 10 % 5 % 0 % Q1 04 Q3 04 Q1 05 Q3 05 Q1 06 Q3 06 Q1 07 Q3 07 Q1 08 Q3 08 Q1 09 Q3 09 Czech and Poland Baltics, Russia and Belarus India, China, Malaysia and Indonesia Offshore of total, % 9

10 Country sales by quarter Tieto Corporation 0 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Finland Sweden International Note: Internal sales included

11 Finland Q4 sales down by 3% Strong outsourcing market e.g. NSN and Metso deals Continuously strong profitability Healthy order backlog Sales, MEUR EBIT, % Q4/2009 Q4/2008 FY/2009 FY/2008 Sales, MEUR EBIT, MEUR EBIT, % Employees Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 11

12 Sweden Q4 sales down by 11% Half of the drop caused by telecom Operating profit lower than year ago Strong execution of streamlining measures lead to significant profitability improvement during the second half of 2009 Improved sales pipeline Q4/200 9 Q4/200 8 FY/200 9 FY/200 8 Sales, MEUR EBIT, MEUR Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 EBIT, % Employees Sales, MEUR EBIT, % 12

13 International Q4 sales down by 9% Telecom in Denmark and Germany, finance in the UK continued as the most challenging areas Profitability improved due to restructuring Increased offshore capabilities Resources doubled in China Over employees in India Q4/2009 Q4/2008 FY/2009 FY/2008 Sales, MEUR Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 EBIT, MEUR EBIT, % Employees Net sales, MEUR EBIT, % 13

14 Customers in 2009: Top 10 accounted 36% of sales Apoteket Ericsson IF Insurance Kesko The National Board of Taxes (FI) Nokia Nordea OP-Pohjola Group TeliaSonera Varma Healthcare & Welfare/ Retail Telecom Finance Retail Government Telecom Finance Finance Telecom Finance Share of Group sales by customer sector 45% 21% 34% Telecom Finance Industry sectors Customers are listed in alphabethical order. 14

15 Industries Telecom & media Sales fell by 8% due to lower volumes and prices High importance of offshore capabilities Profitability improved towards the year-end, but still unsatisfactory 0 Financial Services Sales down by 15% Exceptionally high comparison figure in Finland Sales decline in the UK continued Products for Capital Markets was performing best Profitability on Q4/08 level due to Good utilization MEUR Q4/08 Q1/09 Q2/09 Q3/09 Q4/ Streamlining i actions Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Industry Sectors Sales down by 10% Manufacturing was the weakest sector Strong performance in the public sector Profitability at a healthy level Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 15

16 Actions for Manage profitability Leaning the organization and cost base Continued focus on Sweden and International 2. Drive quality and sales excellence Stronger sales force Best in class customer care 3. Increase efficiency and productivity Offshore target 35% in Transform Telecom R&D Ramp-up Asia Transform competences from R&D to IT 5. Investments in new offerings E.g. cloud computing, financial value chain and unified communications 6. Execute portfolio adjustments

17 Outlook for 2010 Tieto anticipates that the IT markets have now bottomed out In 2010, Tieto expects its net sales to develop in line with the IT services market relevant to the company Tieto expects its operating profit to be higher than in

18 Questions and answers 2010 Tieto Corporation 18