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Building Tieto’s full life-cycle services throughConsulting & SystemIntegration (CSI)Henrik Sund

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Sales by countryFinland

Sweden

Germany

Italy

Norway

Other

Sales by industryFinancial Services

Public, Healthcare& WelfareManufacturing,Retail & LogisticsTelecom, Media &Energy

Customer sales 1–9/2012:EUR 360 million (pro forma)

Personnel:~ 4 500 (pro forma)

Market position:#1 in Finland#4 in Sweden

Consulting & System Integration (CSI)Based on the new structure effective 2013 (pro forma)

Pro forma figures in this presentation are preliminary and may besubject to changes during the completion of the company’soperating model design

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CSI market driven by pockets of growth

Morgan Stanley CIO Survey 10 Oct 2012

Growth expected to• accelerate both in the US

and EU• accelerate across all sectors

Selling environment appearsto be stabilizing

Certain offerings are clearlymore in focus• BI• Mobility• ERP

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Process E2E responsibility

Full lice-cycle services and customer processknowledge create our competitive edge

Customer's business strategy

Business Process Transformations

IT Transformations

Serv

ice

E2E

resp

onsi

bilit

y

Customer's business processes

Customer's business applications

Business Process Performance

System Landscape Optimization (Modernization / Outsourcing / aaS)

Front End Applications

Productivity Services

ERP & EnterpriseApplications

Information Services

Integration Services

Infrastructure Services

Consulting:Transformation &change management

Consulting:Business ProcessManagement

System Integration:Application Development &Application Management

Operations Management

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Customers have expressed the need fortrusted and innovative partner fortransformation services

”You have pursuedoffshoring successfully,giving you a potential todeliver more value to us.”

“While we find islands ofunique expertise in yourorganization, we need tosee the full value ofintegrated Tieto.”

”Tieto knows our coreprocesses at times betterthan ourselves given thelong term relationship.”

”You are good at managing today’sIT operations, while you can addsignificantly more value to us byextending to businesstransformation.”

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Our existing services stack can already todaysupport our customers’ transformation needs

Example Tieto solutionfor customer experiencemanagement for a retailbank

Solution includes• Consulting and design• Solution development• Application maintenance• Operations management

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We have an exciting opportunity to strengthenour services stack and provide full life-cycle ITservices

Integration OperationsConsulting

CurrentpositionCurrentpositionCurrentposition

Consulting Integration

Marketopportunity

Marketopportunity

Marketopportunity

Tieto’s full life-cycleIT services• Consulting and system

integration• Industry products• Managed services

• ~4 500 experts currently delivering consulting and system integration services• Managed services delivering critical services to ~800 customers• Differentiating industry products e.g. Financial services and Healthcare• Cross selling potential to top customers in Finland and Sweden >100 M€ over next years

Modernization

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This provides an opportunity for revenuegrowth and improved profitability

CSI focus

• Initially 7 prioritizedofferings

•Cross-sell potential in coremarkets

•Repeatability will increaseprofit

• Industry consultingprioritized on selectedbusiness processes

Size of the bubble represents revenue in 2012 and 2016 (M€)

Tieto target profitability 2016

Consultingand integration

AppllicationMaintenance

EBIT

%

CSI2012

CSI 2016

Growth

Averagemarket growth

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During 2013

• Active cross-selling of CSI services to top 50customers in the Nordic region

• Building our identity on prioritized offerings andneeded competencies

• Consulting & transformation services• Standardization, automation and

repeatable building blocks based onincreased knowledge re-use

• Strengthening our offshore capabilities• Transforming services towards cloud

• Consolidation of CSI non-core operations

CSI will focus on reinforcing the identity of anIntegrated Tieto during 2013

ReinforceTieto identitythrough CSI

services

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Tieto top customers in Finland and Sweden givegood cross-selling potential for CSI services

Sweden

Finland

Sweden

Finland

Sweden

Finland

Telecom, Media,Energy, Utilities

Public & HCW

Manufacturing,Retail & Logistics

Financial Services

Cross-selling potential of CSI services to top customers in Finland andSweden over EUR 100 million over following years

Sweden

Finland

Our main competition variesbetween customer segments

At very large global customers› Global IT companies› Offshore IT companies

At large and midsize customers› large IT companies with localpresence› smaller local niche players

Cross-selling potential of CSIservices to existing Tieto topcustomers (EUR million)

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During 2013 we will prioritize key offeringdomains to further strengthen our servicestack

• Prioritization built on immediate cross-selling potential• Ease of repeatability & integration with our products and managed services• Based on changing needs in our customer’s business environment

FinancialServices

Public,Healthcareand Welfare

Manufacturing,Retail andLogistics

Telecom,Media & Energy

Industry consulting

Mobility

Business Intelligence

Application management

SAP

Advanced case management

Intelligent traffic solutions

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Tieto Open Application Suite

Tieto Cloud Server / Infrastructure Services

Business & IT Transformation / Concept

Tietomobile

gateway

Industry Solutions

PortalSingle sign on and

identificationgateway

SOA PrivateappstoreTNS!

BigData

BASECM

RDBMS NoSQL

..

Savon VoimaVerkko

Electricity OutageInformation System

Prisma RussiaMobile Shopper

How to increase customer loyalty withmobility?

Mitä tänäänsyötäisiin

for Ruokakesko(Pirkka)

Mobile FieldEngineerTieto Lean

ERP

Helsinki AppstoreApps.hel.fi

We will leverage our success stories incomplete IT life-cycle to build momentum todevelop enterprises …

EfficaLäsnäDaycare

MobileTieto

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…. and societies ….It will allow the city to reduce its paper

consumption by 40 percent in 2011.This will generate savings ofapproximately EUR 300,000

Vision of electronic case management

DOCUMENTAUTHORING

MEETINGPROCEDURE

CASE PROCESSING

RECORDSMANAGEMENT

DOCUMENT MANAGEMENTCOUNCIL

MEETINGS

Process E2E responsibility

Serv

ice

E2E

resp

onsi

bilit

y

City of Helsinki case management

Application maintenance

Infrastructure services

Open accessdrives transparency indemocracy

Faster processingby reducing caseprocessing bottlenecks

Efficient decisionmakingthrough paperlesstransactions

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… through information technology

Modernization Concept and design

TestingOnlinesales

Single sign on& Identity

management

SOA &Integrations

BusinessIntelligence

3rd partyhardware

Asset &resource

managementECM..

Database and middleware

Application maintenance

Mobility Security UX design Program management

Application installation

Modernizing Helsinki Region Transport

contactless ticketing system Real-time transaction integrated ticketing and informationsystem

Independent servicecomponents

EMV compliantReal-time passengerinformation

24/7 support services & field services & operational support services

will unify the current passengerinformation systems and bringup-to-date passengerinformation to all Helsinki regionpublic transport

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Our journey towards providing acomplete IT life-cycle has began

2013

• Cross-sell of CSI servicesto existing customers

• Strengthen our corebusiness and bring morefocus

• Invest in first set ofofferings towardsintegrated solution

• Internal transformationjourney as well

2014 andbeyond

• Accelerate CSI growth inSweden

• Leverage footprint in Finlandand Sweden and expand toNordics (and other EastEuropean countries as

• Continue streamliningoperations

2012

• Build organization andtransition to an industrydriven structure

• Start consolidation of noncore operatings

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Industry expertiseand thought leadership

- solving customers’business challenges

with the help of IT

Innovativefront-endsolutions

Standardized coresolutions for the

enterprises

Solution built withrepeatable

building blocks forfaster time-to-market

AM factory withstreamlined

processes

Create newrepeatable ITsolutions for

standard businessactivities

We believe in becoming world classAnd our customers believe in us for their transformation needsVideo: City of Helsinki - Business benefits from AHJO *

* Video link available in the presentation published at www.tieto.com/Investors

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