Joining Forces for Digital Advantage Worldreginfo - 658D43b0-7237-40Ba-908D-B0e61efdcefe Tieto and EVRY 2019 Digital Advantage Governance Financials Sustainability
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Annual Report 2019 Joining forces for digital advantage WorldReginfo - 658d43b0-7237-40ba-908d-b0e61efdcefe Tieto and EVRY 2019 Digital advantage Governance Financials Sustainability Brighter With TietoEVRY’s expertise, new technologies and data, we empower the development of sustainable businesses and the society. future. TietoEVRY is a leading digital services communities of technology and business and software company. We create digital professionals in the Nordics, and we employ advantage for businesses and society, with approximately 24 000 experts globally. local presence and global capabilities. Our Together. Nordic values and heritage steer our success. We have a strong local presence with a leading market position in digital With deep insight comprising customers’ services in Sweden, Norway and Finland. culture, strategic and business drivers With annual revenue of approximately TietoEVRY provides fit-for-purpose EUR 3 billion, TietoEVRY serves solutions for customers to increase their customers in over 90 countries. business agility, growth and innovation. Formed from the merger of Tieto Read more on the and EVRY, we are one of the largest merger Annual report 2019 2 WorldReginfo - 658d43b0-7237-40ba-908d-b0e61efdcefe Tieto and EVRY 2019 Digital advantage Governance Financials Sustainability Facts & figures (End of December 2019) FULL NAME: TIETOEVRY CORPORATION NUMBER OF COMPANY FOUNDED IN 2019 OPERATING COUNTRIES HEADQUARTERS IN ESPOO, FINLAND LISTED ON NASDAQ OMX IN HELSINKI AND STOCKHOLM, OSLO BØRS TOTAL EQUITY: EUR 1 691.7 MILLION 90+ TOTAL LIABILITIES: EUR 2 167.5 MILLION REVENUE, MEUR FULL TIME EMPLOYEES 2 951 Based on stand-alone full-year financial information *Total23 number of employees 996* for TietoEVRY. for Tieto and EVRY in 2019 (55% from Tieto and 45% from EVRY). Annual report 2019 3 WorldReginfo - 658d43b0-7237-40ba-908d-b0e61efdcefe Table of contents Brighter future. Together. 2 DIGITAL ADVANTAGE 14 GOVERNANCE 62 FINANCIALS 92 SUSTAINABILITY 224 Facts & figures 3 Market opportunity and Corporate Governance Report by the Board of Our approach to sustainability 225 our strategy 15 Statement 63 Directors 94 Table of contents 4 Managing Sustainability 227 Operating model 17 Annual General Meeting 65 Calculation of Key Figures 125 Sustainability opportunities and risks 230 TIETOEVRY 2019 5 Our value creation model 19 Shareholders' Nomination Consolidated Financial Board 65 Statement 127 Stakeholder dialogue 233 Highlights 2019 6 Dashboard 20 The Board of Directors 67 Parent company's Financial Materiality analysis 234 CEO statement 8 Sustainable business Statement 200 transformation 22 The President and CEO and Sustainability 2020 plan 236 Merger 11 operative management 73 Dividend proposal, signatures Culture – collaborate, for the Board of Directors' About sustainability reporting 238 Timeline into 2020 13 35 include and grow Internal control and risk report and Financial Statement management 76 Independent Practitioner’s Digital advantage for and Auditor's note 216 Assurance Report 240 50 79 society and the environment Major risks Auditor's report 217 GRI content index table 242 82 Related-party transactions Information for shareholders 223 Insider administration 83 Auditors 83 Remuneration statement 84 Letter from the Chairman of the Remuneration Committee 91 Annual report 2019 4 WorldReginfo - 658d43b0-7237-40ba-908d-b0e61efdcefe Tieto and EVRY 2019 Digital advantage Governance Financials Sustainability TietoEVRY 2019 The non-financial disclosures in the annual report 2019 covers only Tieto. Financial reporting for 2019 covers TietoEVRY with EVRY consolidated as from 5 December. Highlights 2019 6 CEO statement 8 Merger 11 Timeline into 2020 13 Annual report 2019 5 WorldReginfo - 658d43b0-7237-40ba-908d-b0e61efdcefe Tieto and EVRY 2019 Digital advantage Governance Financials Sustainability We announced a plan to join forces with the Norway-based IT consulting Highlights company EVRY, to create the leading Nordic digital services and software company and the largest community 2019 for business and technology REVENUE BY COUNTRY * professionals. REVENUE BY COUNTRY Year 2019 was as a historical year Other for us, bringing transformation and Read more here new opportunities. Norway Finland Sweden Based on stand-alone financial information for Tieto and EVRY in 2019. *Based onTietoEVRY stand-alone will adopt financial a new operating information model during 2020. for Tieto and EVRY in 2019. ADJUSTED EBIT DIVIDEND YIELD 11.3% 4.6% Annual report 2019 6 WorldReginfo - 658d43b0-7237-40ba-908d-b0e61efdcefe Tieto and EVRY 2019 Digital advantage Governance Financials Sustainability Expanding strategic partnership. At the end of Personal data & ethics. Tieto joins MyData Global as a founding the year, Tieto extends and broadens a strategic member to promote the ethical processing of personal data. The partnership with UPM, a leading biofore company. organization strives for a fair and sustainable digital society and aims to improve people’s self-determination regarding their personal data. A significant milestone. Tieto and EVRY joined forces and TietoEVRY, with TietoEVRY legally established on December 5th. Launch of a new strategy. Tieto launches Gender equality ranking renewed. Tieto is re- a new strategy to create great everyday certified by the Swiss EDGE Certified Foundation Q1 experiences in the data-rich world. and recognized for our initiatives in pursuing gender equality in our operations in Sweden. Q4 Support for health and welfare. Tieto signs an Preventing traffic accidents with AI. The City of agreement with City of Stockholm to deliver Tampere and Tieto deploy a pilot solution that uses AI digital support for welfare and healthcare and IoT technology to boost pedestrian traffic safety. services with a contract until 2026. On site audits. Tieto takes big steps towards a sustainable supply chain with the first on-site Continuing a good partnership. Tieto was entrusted audits of suppliers in high-risk-countries. 2019 as a main IT partner for the Norwegian industrial company Lyse to support Lyse with innovation, Equality for better work. Tieto is Q3 competitiveness and customer experiences... named a top three tech company in the world in Equileap’s gender ranking. Q2 Data to support conscripts’ health and wellbeing. A new strategic partnership. Tieto supports A pilot project between the Finnish Defence Forces, Glaston in transforming its ICT environment to Suunto and Tieto enables conscripts and reservists better serve current and future business needs. to track their physical activity and wellbeing. Societal impact. Tieto joins Almedalen in Sweden Building the future. Tieto and EVRY announced and SuomiAreena in Finland to drive societal they are joining forces to create a leading discussions and awareness around digitalization and Nordic digital services company. its role in the development of Nordic societies. Annual report 2019 7 WorldReginfo - 658d43b0-7237-40ba-908d-b0e61efdcefe Tieto and EVRY 2019 Digital advantage Governance Financials Sustainability CEO STATEMENT An exceptional year of transformation and exciting new opportunities 2019 was a historic year for Tieto. We joined forces with EVRY, the Norway- based consulting and technology company, to create TietoEVRY, a leading Nordic digital services and software company and the largest community for business and technology professionals. Together, we will accelerate digitalization and create digital advantage for our customers and society as a whole. 2019 was an extraordinary year for us at increased agility and collaboration. This Tieto. We started the year by taking the enables us to serve our customers with next big leap in the company renewal to the best possible solutions that integrate enhance the competitiveness of customers our expertise, software and services. and the company alike. We launched a new strategy aiming to accelerate customers’ Tieto and EVRY to join forces The company is well- “ design and data-led innovation and In June we announced one of the most positioned to create digital renewal in the Nordics and capture the remarkable mergers ever in the Nordic IT advantage for Nordic opportunities in the data-driven world. We industry: Tieto and EVRY joining forces. The enterprises and society. have made good progress on executing our companies jointly create one of the most strategy, transforming our operations and competitive digital services and software ways of working to a networked mode for companies in the Nordics, and the transaction Annual report 2019 8 WorldReginfo - 658d43b0-7237-40ba-908d-b0e61efdcefe Tieto and EVRY 2019 Digital advantage Governance Financials Sustainability was considered highly complementary of data science and analytics experts, and with Microsoft on public cloud services opportunities for consulting, software and from a geographical, offering and customer our competitive offering of multi-cloud strengthens the company’s position as services providers supporting the renewal of perspective. With combined revenue of close services, driving adoption of public cloud the leading multi-cloud provider with both customers operations and business models. to EUR 3 billion, leading digital consulting technologies, while ensuring business private and public cloud capabilities. As a part practices, competitive industry specific continuity and efficiency. Our software of our partnership, we have a development Shaping the future of our software and scalable technology platforms, assets modernize core processes