Results release 2017 Siili Solutions Oyj Timo Luhtaniemi

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1 Results release 2017 Siili Solutions Oyj Timo Luhtaniemi

2 Disclaimer The statements and estimates in this material regarding the markets and their future development are based on the current views of the management. Due to their nature, they contain uncertainties and are susceptible to changes in the general financial situation or the sector.

3 Timo Luhtaniemi Education: MSc Tech & MBA Career started as software developer 16 years in the IT-business 10 years as CEO in an industrial company 14 years as CEO in total Siili s founder and biggest shareholder (12%) Passionate sailor LinkedIn:

4 In 2017 we continued our profitable growth for the 7 th year Net sales 57,8M Net sales growth 19% EBITDA 5,8M H2/2017 EBITDA 3,4 M = 12% of Net sales growth 18 % 2017 EBIT 5,0 M = 8,7% of Net sales growth 21 % 2017 cash flow from operations was strong 4,9 M Equity ratio 63 % (2016: 61 %), gearing -39 % (2016: -48%) Return on investment 25 % (2016: 24 %) Cash at the end of the period 9,0 M (2016: 9,7 M ) Personnel at the end of the period 563 (440), growth 28 %

5 Acquisitions to strengthen our offering and widen our reach Stormbit Augmented Reality and automotive 3D- user interfaces. Omenia Software automation and robotic process automation. Comia Software Important customer and new recruitment market in Seinäjoki.

6 Our international sales continue to grow Our business has grown rapidly in Germany and the United States, where we have established a strong position in the automotive supply chain. Due to strong demand prospects, we have opened offices in Detroit and Szczecin. 6,7M Net sales ( 3,8M 2016) Oulu Seinäjoki Szczecin Helsinki Detroit 73% Growth Berlin Wroclaw Los Angeles 12% Share of total net sales (8% 2016)

7 Continuous improvement is in our values Improving operative work by developing reusable competence components Siili Academy expanding to new competence areas Dozens of Apprentices have been trained by our Masters Competence development in areas of strong demand, such as artificial intelligence, software automation, robotic process automation, 3D-modelling, and augmented reality

8 Our dividend continues to grow Dividend In line with its dividend policy, Siili seeks to distribute 30 70% of its profit for the period to shareholders. Additional dividends may be distributed as well. The Board of Directors proposes to the Annual General Meeting (AGM) that a dividend of EUR 0,39 per share be paid for 2017, which represents an increase of 30% from the previous year. The proposed dividend corresponds to around 69% of the Group s net profit for the period. 0,5 0,4 0,3 0,2 0,1 0 0,39 0,30 0,23 0,16 0,14 0, Dividend Dividend proposed to the AGM

9 Amount of shareholders at end of half year period H H H H H H H H H H H2-2017

10 The year 2018 and beyond

11 Siili succeeds amid the digital disruption Digitalization breaks barriers between our customer industries and creates new business models at an accelerating pace. Our operating model founded on agility, transparency and co-creation puts us in a very competitive position. Demand for our comprehensive design, technology and data expertise grows rapidly in the fast growing market for digital services*. Transparent Co-creation Lean & Agile * Balance Consulting & Valor estimate the market to grow at 10-15% annually,

12 We succeed because of our people Every Siili has their own background and interests, but as a community we all share our values and a passion for digitalization Sanna Michi Jenny Eetu Business Designer and a singer UX Designer and a sailor Scrum Master and an ex-tv star Tribal lead and a continuous learner

13 Our international business is in automotive and it grows rapidly Customers include car OEMs and Tier1 supplier in Germany and the United States We create digital interfaces, which expand the traditional dashboard into a personal work and entertainment center as well as a environment control center, where the software is key We have recently opened two new offices abroad Detroit to be close to our customer Szczecin to expand our expertise in Poland We expect our international growth to outpace the growth in the Finnish market

14 Our three themes for 2018 Emphasizing our original mission and the Hedgehog (Siili) Concept in guiding our day to day work To reach this year s targets we will focus on executing our existing strategy and business plan with the current organization without significant changes We will launch strategic development projects to ensure our organization stays agile and entrepreneurial, and is able to sustain rapid growth also in the years to come

15 Outlook for 2018 and long term vision 80,0 20,0 % 70,0 60,0 50,0 Net sales, M 40,0 30,0 20,0 10,0 % EBITDA -% 10,0 0, Net sales, M Net sales guidance, M EBITDA -% EBITDA -% -guidance 0,0 % Net sales for 2018 are expected to be EUR million, and EBITDA is expected to be EUR 6,6 7,6 million. Figures for IFRS, FAS. In the long term, the company aims for an annual growth rate of 20% on average while also maintaining a good level of profitability (EBITDA more than 10% on average).

16 Combining agility, usability and data we build modern digital services to improve work and life. The Hedgehog concept guides everything we do.