Capital Market Day 2018 Realizing the Data-Driven World Customers’ First Choice Realizing the Data-Driven World Kimmo Alkio

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Capital Market Day 2018 Realizing the data-driven world Customers’ first choice realizing the data-driven world Kimmo Alkio

Attracting and retaining talent Katariina Kravi

Leading the transformation in our industry Christian Segersven

Shaping a smarter society Cristina Petrescu

Taking Nordic industries to a data-driven digital world Satu Kiiskinen

Strong position in traditional consulting – step-change growth in digital services Ari Järvelä

Efficiency and speed through modernization and transformation Håkan Dahlström

Solid performance – ready to expand Tom Leskinen

Well positioned to consistently increase shareholder value Janne Salminen

Speakers

IR contacts Customers’ first choice in realizing the data-driven world Kimmo Alkio, President and CEO Our team and presenters

Financial Services Public, Healthcare Industrial and and Welfare Consumer Services Data-driven Kimmo Alkio businesses President and CEO

Christian Segersven Cristina Petrescu Satu Kiiskinen

Industry solutions Business Consulting and Implementation Ari Järvelä

Technology Services and Modernization Håkan Dahlström

Product Development Services Tom Leskinen

Support Functions Katariina Kravi Janne Salminen HR acting CFO Markus Suomi CTO

2 © Tieto Corporation Realizing the data-driven world Cyber security

Autonomous Unlimited capacity Digital supply chains

Virtual reality

Artificial intelligence

Blockchain

Machine learning, robotics

Natural language processing

Personalized for every individual Available on-demand Accelerates businesses and society © Tieto Corporation Active transition to the data-driven world New experiences and business models Omnichannel

Industry 4.0

Predictive TOTAL IT SERVICES AVERAGE MARKET GROWTH Servitization EXPECTED TO BE IN THE RANGE OF 2-3% healthcare Realtime Smart cities VALUE TODAY payments CREATION Make my product / Designed service better, faster experiences and Industry and cheaper data-driven services Sustainability clouds Definite products, Agile business Digital processes and models, services IoT citizen technologies and ways of working services Connected vehicles Connected consumer products

TIME Business-led renewal involves redefining enterprise architectures and applications, deriving value from data

CURRENT FUTURE Identify and build data assets

Mature business models Design Renew Agile business models experiences Agile ways enterprise and business architecture Solid processes models of working (e.g. microservices, Personalized experiences insights)

Business intelligence Data-driven insights

Monolithic applications Heterogeneous applications and integrations Renew/Refactor /Rewrite Legacy infrastructure applications Hybrid infrastructure

Data-driven world Manage Hybrid Infrastructure Actively renewing portfolio and capabilities Value to all stakeholders

Identify and Consulting Co-innovation, build data 15-20% of data-platform, assets capacity, Security, competence base use-cases renewed annually and skills SIAM, cloud

Design Renew Investments into new experiences Agile ways enterprise and business architecture services and models of working (e.g. microservices, insights) technologies grown by 85% during 2013–2018 Investments into Architectural renewal in SW CEM, active M&A Renew/Refactor businesses /Rewrite applications Application modernization Manage Hybrid Infrastructure Renew for a digital future

New skills and continuous learning Strategies and leadership

Smart Consumer use of data @ the core Accelerating global Re-defining real-time payments data-rich Nordic retail

Advanced Realizing openEHR Hybrid infrastructure healthcare analytics Renewing Nordic and innovation support across public, for preventive care pension insurance processes through ecosystems private and on-premise technologies OEM software for Digitalizing public autonomous traffic sector with Intelligent case management transportation

Succeeding with customers - across all industries utilizing full Tieto services and competencies

TIETO'S GROWTH AMBITION FOR IT SERVICES GROWTH DRIVERS AND CAPABILITIES FASTER THAN THE MARKET** (CAGR 2015-2020) Customer Data-driven Experience RPA businesses Industry platforms and Management software Enterprise Cloud Cloud and modernization Security Software R&D services borne applications Up by services ~ 50% 10%-20% Data-driven services Integration Application Payments Digital consulting and services modernization integration services

~ 50% Down by Case Hydrocarbon Traditional infrastructure ONE Cloud 5%-10% and application services Management management

2015 2020 Credit Production SmartUtilities Lifecare solutions Excellence Emerging services - software & digital* Traditional services

*Includes current high-growth businesses and internal start-ups which represented ~20% of IT services sales in 2015 **Market growth expectation (CAGR) for the Nordics at 1.5–3%

9 Strategy progress – accelerating innovation and growth

• Above market growth as of 2016 BUSINESSES • 1-9/2018 growth in local currencies 7% Acceleration in growth AND GROWTH • PDS expansion

INNOVATION • Software technology renewal Proven and important AND • Data science and engineering since 2016 INVESTMENTS • Automation investments for future

CULTURE • CX! Significant cultural AND • OpenSource! renewal and TALENT • Sustainability talent acquisition

10 Strategy Progress Accelerating innovation and growth

2016 2018 2020 • Industry Solutions Progress slightly behind ambition, investments in place • TSM Solid biz progress, AM and Cloud as strong drivers • DDB Important innovation engine – opportunity to accelerate BUSINESSES Design and CEM led innovation, active M&A AND GROWTH • BCI • PDS Strong turnaround with new growth opportunities • Sweden Good growth path including M&A 2016 2018 2020 • Software renewal Major investment, necessary technology upgrades INNOVATION • M&A Strong progress with 7 transactions completed AND • Data science/AI Rapid capability acceleration INVESTMENTS • Cloud Private Cloud with good progress, Public accelerated • Automation/RPA Important activities initiated – to be scaled

2016 2018 2020 • Employee engagement Solid and sustainable progress CULTURE • Learning as a Lifestyle New innovative skill development program – good success AND High recruitment pace and talent acquisition TALENT • New talent • Leadership as a Service Attention both to culture for caring and performance

11 Accelerating value to all stakeholders

CUSTOMER EXPERIENCE / NPS EMPLOYEE ENGAGEMENT SCORE

2015 2016 2017 2018 2015 2016 2017 2018

REVENUE GROWTH, % OPERATING MARGIN, %

2014 2015 2016 2017 1–9/2018 2014 2015 2016 2017 1–9/2018*

*rolling 12 months

12 Reiterating financial objectives, while performance drivers adapting to the market and customer

Ambition 2020 Focus on new businesses, consulting led services, product IT services revenue growth development services along with Industry solutions above the market (CAGR) expansion – increased investments and reprioritization Organic growth at least at market rate

10% reported operating Adjusted*) margin sustainably above 10% margin (EBIT) Offering development below 5% of sales (OPEX) Consistent performance and progress Aim is to increase towards ambition base dividends annually Strong cash-flow driving attractive dividend profile in absolute terms

Net debt / EBITDA 1.5 as Investment capacity for organic and inorganic growth an upper limit in the long run CAPEX expected to remain below 4% of sales

13 *) Adjusted for restructuring costs, capital gains/losses, impairment charges and other one-off items Ambitions by Service Line

Growth Profitability

Technology 2015 2020 2015 2020 Services and Modernization 2017 2017

2015 2020 2017 2020 Industry Solutions 2017 2015 Business 2020 2017 2017 2020 Consulting and Implementation

Product 2015 2017 2020 2017 2015 Development Services 2020

Average market growth Target profitability for Tieto (Tieto’s addressable market)

14 Industry solutions continue to drive our competitiveness Ongoing technology renewal in multiple businesses

KEY SOFTWARE BUSINESSES

CAPITAL MARKETS • Competitive differentiation CREDIT PAYMENTS • Customer base: strong and expanding SOLUTIONS • Growth and expansion opportunity

EDUCATION • Selective investments for technology renewal ⎯ Lifecare - Healthcare LIFECARE PUBLIC SECTOR CASE ⎯ Tieto SmartUtilities MANAGEMENT ⎯ Payments (concluded during 2018)

HYDROCARBON • Investment level stabilizing during 2019 MANAGEMENT TIETO SMART PRODUCTION UTILITIES EXCELLENCE

Customer Experience Management Growth 3-5% Payments Investment proportion 20% Lifecare Growth 0-1% Tieto Investment SmartUtilities proportion 10% Industry solutions Public cloud and and software microservices Application Cloud borne modernization applications Product development Infrastructure services Data-driven services businesses Legacy software Enterprise products applications Security Traditional application B2B integration services services Multicloud

16 Our renewal continues with a higher management ambition in becoming customers’ first choice in business renewal

TIETO 2020 MANAGEMENT AMBITION (STRATEGY 2016–2020) Customers’ 40% OF 100M+ FROM 80% SHARED 1–2% INCREASE first choice! SW AND SOLUTIONS DATA-DRIVEN BUSINESSES MANAGED SERVICES IN NORDIC MARKET SHARE

• Accelerated investments, incl. • Promising innovation pipeline • Consistent growth of • Consistent growth and acquisitions industrialized Application M&A Above Services industry New product launches in 2018 Further scale and consulting Multi-cloud acceleration Consulting led acceleration average TSR ~5% OF REVENUES >5% IT SERVICES 10–12% SG&A 10% MARGIN** AS OFFERING INVESTMENTS REVENUE GROWTH P.A.* OF REVENUE Great place • Investments increased • Consistent growth of ~4%, • Down from ~15% to a range • Adj EBIT 10.5% (10.2) for to 5% of sales above market of 13–14% • Restructuring down to less than 2% of sales innovation and growth Maintain investment levels Consulting led acceleration Automation emphasis Business mix and productivity

*Formal guidance: IT services revenue growth above the market (CAGR) **Formal guidance: 10% reported To be On schedule operating margin (EBIT) accelerated

17 What next - accelerating innovation and growth

• Data-driven services, platforms and cloud BUSINESSES • Digital consulting and renewal AND GROWTH • Software and PDS Attractive data-rich market

INNOVATION • Co-innovation with customers – data Right investments AND • Simplifying legacy INVESTMENTS • Software renewal for growth

Active renewal to gain share CULTURE • Open Source culture AND • Active talent acquisition to accelerate digital skills TALENT • Leadership as a Service and re-skilling

All information in this material is for informational purposes only. The opinions and viewpoints regarding, inter alia, the future of the company and markets are of Tieto and may not actually materialize. This information should not be construed as an investment recommendation or investment advice. All information expressed herein is subject to change without notice. Neither Tieto nor its officers nor employees shall have any liability for any loss sustained by anyone who has relied on the information provided.

Attracting and retaining talent

Katariina Kravi, Human Resources 1 © Tieto Corporation Key facts

Support Industry functions Groups Personnel by PDS Service Line KEY FIGURES TSM • Full-time employees 15 109 (30 September) IS • Headcount 15 057 (30 September) • Employees in 24 countries BCI • Average age 40 • 28% female, 72% male • Recruitment (Gross 1–9/2018) 2 500 • Acquired Avega 300 Recruitments by profile in 2018 Other • Attrition rate (voluntary) 12.8% Developers

Consultants Architects

2 © Tieto Corporation Market trends affecting us

1 Every company is a technology company Industries are merging

New skills needed constantly

2 Competition over talent Job seeker’s market

Employer Branding

3 Roles and job opportunities to reflect market reality

Adapt to new employment landscape

Re-skilling and up-skilling

3 © Tieto Corporation Happy employees – happy customers

We see a clear correlation between employee engagement and customer experience.

EMPLOYEE ENGAGEMENT SCORE Customers: Average of VS CUSTOMER EXPERIENCE Customer 2018 Experience KPI

Employees: Average of employee engagement score

We aim to be our customers’ Customer Customer Customer Experience Experience Experience first choice for business renewal Laggards Neutrals Leaders

4 © Tieto Corporation Employee Experience at Tieto Internal

Purpose driven work Learning as a lifestyle

Team work and inclusion Empathic workspace

Leadership as a service Data and digitalization

Open Source Culture © Tieto Corporation We have succeeded #tietolife Internal

TIETO’S ENGAGEMENT SCORE GROWTH OUTSIDE ACCOMPLISHMENTS

76% Glassdoor 74%

72%

70%

68% OPEN 66% SOURCE CULTURE 64% 2014 2015 2016 2017 2018

Engagement Score

Critical profiles

61% Of all hires in 2018

Developers Architects Consultants Consultative Experts in sales strategic areas 43% 10% 8% + Meridium +Avega 54% Young professionals Of all hires in 2018 Thought leaders

7 © Tieto Corporation Towards purpose-driven winning teams

AGE

GENDER

ETHNICITY

GLOBAL TEAM

From traditional hierarchies to… ...diverse and agile teams of teams.

8 © Tieto Corporation Providing the tools for building a smarter society

GIG ECONOMY DATA DRIVEN HR

FUTURE ROLES: FLUID ROLES Data Engineer, Data Scientist, Cyber Security Engineer

EMPLOYER BRANDING EMPLOYEE 2020 EXPERIENCE LEARNING AS A PURPOSE DRIVEN LIFESTYLE PROJECTS

9 © Tieto Corporation

Leading the transformation in Financial Services

Christian Segersven, Financial Services 1 © Tieto Corporation Key facts

25% of Financial Public, Industrial and Services Healthcare Consumer Tieto’s sales and Welfare Services CUSTOMERS AND MARKETS Industry Solutions • Comprehensive presence with a customer base Business Consulting and Implementation of 300+ financial institutions in Nordic and Global

Technology Services and Modernization SERVICES Product Development • Payments Solutions & Services Services • Credit Solutions & Services Support Functions • Insurance and Wealth Management • IT transformation & modernization • Open Banking and Ecosystems enablement Sales by MARKET POSITION Service Line IS • Strong market position with solid contribution to Tieto’s growth TSM

BCI

2 © Tieto Corporation Our journey since 2016

MODERNIZED FOCUSED PORTFOLIO WITH CLEAR APPROACH RECENT WINS & STRATEGY STRATEGIC INITIATIVES VIRTUAL ACCOUNT TIETO PAYMENTS MANAGEMENT SOLUTION

State of the art liquidity Industrialized payment management solution based solution for Baltics on modern technology

3 © Tieto Corporation Today’s market dynamics require more flexible and intuitive partner Market dynamics are challenging Financial Services players relevance in the market

Never ending set of regulations and compliance requirements from financial industry authorities Need a partner who

Real time and personalized o Understands business and IT challenges services revolutionizing payments MARKET and lending o Focuses on problem solving DYNAMICS o Provides holistic solutions Technology innovations and data o Co-creates with customers intelligent entrants forces established institutions to transform o Provides specific software capabilities

Open Banking and PSD2 opens up market for new business models

4 © Tieto Corporation We focus on enabling the financial decisions of our customers’ clients in three key growth areas

VALUE PROPOSITION AMBITION

Global software business targeting private and governmental financial institutions with retail and corporate payment solutions Payments LIQUIDITY MANAGEMENT INSTANT PAYMENTS Global go-to-market ISSUING & ACQUIRING NATIONAL PAYMENT INFRASTRUCTURE

Nordic software business aiming at digitalizing the full credit value chain for retail and corporate financial institutions Credit European go-to-market MORTGAGES UNSECURED LENDING LEASING REAL-TIME SCORING

Nordic software business aiming at simplifying end customers wealth management position and investment decisions Insurance Nordic go-to-market and wealth BACK-OFFICE ASSET & INVESTMENT MANAGEMENT INSURANCE START-UP CUSTOMER EXPERIENCE & API CONNECTIVITY

STRATEGIC INITIATIVES

• Continue cloudification of strategic offerings • Increase value added services based on data-driven insights • Further leverage innovations with partners and ecosystems

GAME PLAN FOR GROWTH

• Further expand international sales and operations Payments • Continue investing in product development and transition fully to SaaS Key investments in • Roll out new data-enabled services based on analytics high growth domains backed up by strong • Expand sales and operations beyond Nordics into Northern & Western Europe sales pipeline and • Continue investing in integration capabilities to reduce implementation time to order backlog Credit market • Leverage further strong analytics and AI capabilities in scoring and decision making

Industry Solutions© Tieto Corporation Deep customer knowledge and competitive software assets driving performance and growth

o Standardized software scalable o Deep customer knowledge internationally and relationships o Common R&D practices and o End-to-end solutions in SCALE global talent chosen domains o Agile ways of working o Best knowledge in Nordic FS industry

o International expansion of software businesses

o Data-driven solutions for Nordic COMPETITIVENESS financial services GROWTH o Expand Nordic customer base

7 © Tieto Corporation A glimpse into few success stories

INNOVATION & COLLABORATION

Jupiter Project Jupiter: blockchain-based platform that digitalizes trading of non-listed company shares Mercury Project Mercury: World's first digital company identity business PAYMENTS network GetSwish & Siirto: Next generation instant CREDIT payments for Sweden and Finland Kraft: entering Norway market with advanced OTP bank: Large scale cards business machine learning capabilities VAM Nordics and Baltics: Payments and Aktia: modern mortgages solution in Finland Liquidity Mgmt Xerox: large scale leasing solution Qliro: driving unsecure lending in Sweden INSURANCE & WEALTH Swedish Bank: Consolidated pan-Nordic securities solution Ecosystem based solution: Insurance in a Box

8 © Tieto Corporation Our success stories BRINGING VALUE TO BUSINESSES & SOCIETY

VAM

GetSwish Siirto CardSuite for Virtual Account Real-time payment system Real-time payment system OTP bank Management in Sweden. Tieto drives in Finland. Tieto is Modernization of the Next generation virtual Swish’s operation, responsible for the whole bank’s cards issuing, account management management and infrastructure and authorization and platform that enables development of functions, application development, merchant management banks to deliver a real- as well as service desk and drives Siirto’s platform by migration to time liquidity overview. operations ecosystem for banks, PSP new modern Card Suite Solution fully developed and merchants Platform and run by Tieto

Mercury Jupiter

Consolidated pan- Project Mercury Project Jupiter Ecosystem based Nordic securities World's first digital Tieto in collaboration with solution «Insurance in solution for a large blockchain based company several other leading Finnish a Box» Swedish bank identity business network companies have A digital startup toolkit that enables the founding of revolutionized the ecosystem Solution with enriched designed to enable insurers limited liability companies on by developing a new functionality and higher to embrace the latest an entirely digital basis. blockchain-based platform automation, integral part of technology trends for rapid Done in close cooepration that digitalizes the share the bank’s core system. One go-to-market and growth. with Finnish authorities and ledger, issuance and trading of the biggest programs The new accelerators businesses of non-listed company done at the bank so far facilitate the Life & Pension shares. The project is line-of-business go live in continuity to the project less than 100 days. Mercury

Kraft: entering Aktia: modern Xerox: large scale Qliro: driving Norway market with mortgages solution in leasing solution unsecure lending in advanced machine Finland Flexible and completely Sweden learning capabilities Completely new and autonomous system Fully digital, feature rich End-to-end automated modernized lending platform managing full leasing solution covering the entire processing for loans and with machine learning and processing cycle starting deposit value chain from deposits with built-in rule engine capabilities from the first payment to automated customer machine learning thus final accounting. The registration to enabling fast and secure solution is easily adaptable administration. Loan financial services, as well as and allows Xerox to act and modules added on the quicker and more accurate grow without compromising same unified platform with lending decisions on global and local same technology deployment

© Tieto Corporation 1 Nordic leader in digitalizing the Strong market position credit value chain Personal lending, mortgages, leasing and collections leading the transformation in 2 Global leader in enabling Financial Services payments ecosystems Liquidity management, instant payments and cards

3 Nordic leader in transforming and modernizing financial institutions Digital start-ups, application & infrastructure renewal, outsourcing & operations

12 © Tieto Corporation All information in this material is for informational purposes only. The opinions and viewpoints regarding, inter alia, the future of the company and markets are of Tieto and may not actually materialize. This information should not be construed as an investment recommendation or investment advice. All information expressed herein is subject to change without notice. Neither Tieto nor its officers nor employees shall have any liability for any loss sustained by anyone who has relied on the information provided.

Shaping a smarter society Cristina Petrescu, Public, Healthcare and Welfare

33% of Financial Public, Industrial and Services Healthcare Consumer Tieto’s sales and Welfare Services CUSTOMERS AND MARKETS Industry Solutions • Nordic governments, regions, municipalities and Business Consulting private care providers funded by the public sector and Implementation SERVICES Technology Services and Modernization • End-to-end industry solutions and software in Product Development Healthcare, Welfare, Education and Case Services management Support Functions • Consulting services supporting the customers business and operation transformation • Technology modernization services for customer IT renewal Sales by MARKET POSITION Service Line • #1 in Finland IS TSM • #1 in Sweden • #5 in Norway

BCI

2 © Tieto Corporation Successfully delivering solutions to shape a smarter society

HELSINKI AND UUSIMAA HOSPITAL DISTRICT - DATALAKE

On the individual level, we can help people prevent the onset of medical ” conditions by identifying potential risks. For the elderly, we can provide longer and safer residencies at their own private homes. On a societal level, we can make predictions of the risks affecting whole populations – for example risks of epidemics – enabling forecasts of healthcare service needs”, describes Visa Honkanen, Director of Strategic Development department at HUS

4 © Tieto Corporation Digitalized work process, reduced waiting times, unlocked resources

TRELLEBORG MUNICIPALITY

Our cooperation with Tieto has provided us with a good basis for meeting ” citizens' expectations for increased availability and service, for example through new citizen services. We are working differently than before, and with the help of Tieto we have introduced modern e-services”, says Eleonore Schlyter, Service Provider, Trelleborg Municipality

5 © Tieto Corporation Proper care at the right time, simplified & better home care services, cost-effective use of resources

FREDRIKSTAD MUNICIPALITY

In the past, there was a lot that had to be done manually. For example, ” telephone calls would be received by the alarm centre, then the duty doctor was informed and the home care service was contacted – all this happened by telephone. We wanted to simplify these processes for the home care service and provide a better service for every single resident", says Tonje Myrvold, Systems Manager in the ehealth Department, Health and Welfare in Fredrikstad Municipality

6 © Tieto Corporation Challenges for the society

Growing Demand to digitalize processes elderly and services population Ever increasing citizen expectations for citizen-centric services

Technology trends and enablers: artificial intelligence, machine SOCIETY learning, blockchain, robotics etc.

PUBLIC Public IT need more interoperability & ORGANIZATION open ecosystems

Technical debt and legacy systems

Lack of resources Increasing operating costs of the public sector

7 © Tieto Corporation Fundamentally transforming healthcare and welfare

Connectivity enables citizens co-management and gives individual patients the opportunity to choose between remote or in-person care methods.

Automation improves access to care, quality of care and consistency of care and supports clinical staff through an increase of their productivity.

Big data and advanced analytics provide clinical decision support and changes the way in which healthcare conducts clinical treatment.

VALUE PROPOSITION GEOGRAPHICAL PRESENCE

Nordic software business aiming for digitalizing healthcare and welfare services through joined up information systems that are patient- Healthcare: market leader in Finland Lifecare centric, improving care while driving organizational efficiencies. (11/18) counties)

HEALTHCARE WELFARE Welfare: market leader in Finland, Sweden and Norway, 400+ customers

Nordic software business that stores all project or case records in one Case Strong market position in Sweden management place, making it easy to find, share and update information as well as and Norway, 500+ customers tracking progress.

Nordic software business that covers the full range of administrative Market leader in Sweden Education work tasks. It opens up communication with both parents or guardians (school/ preschool) and students to make sure everybody has a full view on learning and Market leader in Finland progression. (preschool)

Industry Solutions© Tieto Corporation A number of emerging and established solutions driving our growth

GAME PLAN FOR GROWTH TODAY AMBITION

Market leader in Finland for EHR. Strong Nordic leadership in EHR and selected market demand for interoperability, AI- specialist systems. AI-powered assisted clinical treatment and solutions. Expansion to new integrated clinical pathways geographical markets with selected Important deliveries in Lifecare Market leader in business systems in offerings. Welfare, strong demand for resource Protect market leadership, broaden healthcare in 2019 – optimization, automation, analytics, AI offering portfolio and achieve the leading healthy growth to and integrated care position in integrated care. continue

Case License market diminishing and Strong growth expected in the new Strong growth in welfare Management increasing demand for online solutions product areas 360° Online, eByggesak 360° and eArchive 360°. . Investments stabilizing towards the end of 2019 Strong position in Student Management. Nordic leader, expand to learning Increasing customer demand to utilize environment. Automatization and AI with Education data and provide citizen services open ecosystem utilizing advanced analytics.

Industry Solutions© Tieto Corporation Solid execution towards strategic ambition

Pre-packaged ACHIEVED 2016–2018 AMBITION 2019–2020 industry solutions and software GROWTH products driving growth in the Nordics o Increased market share o Pre-packaged industry in Nordics solutions and industry consulting USER EXPERIENCE

o Initiatives for improved o Design as an integrated user experience part of product development

PRE-PACKAGED INDUSTRY SOLUTIONS

o Investments in software o Modernize product accelerated portfolio

11 © Tieto Corporation Uniquely positioned and aiming for the #1 position in all Nordic countries

HEALTHCARE WELFARE #1 in Finland #1 in Finland #4 in Sweden #1 in Norway #4 in Norway #1 in Sweden Opportunities in EHR and specialist systems Opportunities in integrated care and new markets

EDUCATION CASE MANAGEMENT #1 in Finland (preschool) #1 in Norway #1 in Sweden #3 in Sweden #3 in Norway Challenger in Finland Opportunities in broaden portfolio Opportunities in cloud and the Finnish government

12 © Tieto Corporation We provide life-long value for the entire society

13 © Tieto Corporation All information in this material is for informational purposes only. The opinions and viewpoints regarding, inter alia, the future of the company and markets are of Tieto and may not actually materialize. This information should not be construed as an investment recommendation or investment advice. All information expressed herein is subject to change without notice. Neither Tieto nor its officers nor employees shall have any liability for any loss sustained by anyone who has relied on the information provided.

Taking Nordic industries to a data-driven digital world Satu Kiiskinen, Industrial and Consumer Services © Tieto Corporation Key facts

34% of Financial Public, Industrial and CUSTOMERS AND MARKETS Services Healthcare Consumer Tieto’s sales and Welfare Services • Large enterprises in Forest, Manufacturing, Retail, Logistics, Energy and Telecom Industry Solutions • Full portfolio of services for Nordic-based customers Business Consulting • Global expansion for selected own solutions and Implementation SERVICES Technology Services • End-to-end industry solutions and software in production and Modernization excellence, smart utility and hydrocarbon accounting Product Development • Established Nordic partner in industry consulting, Services customer experience solutions and implementations for enterprise applications Support Functions • Technology modernization services for ICS focus industries MARKET POSITION • #1 in Finland. # 2 in Sweden, overall # 2 in the Nordics Sales by IS • Leading position in production excellence in forest Service Line industry globally • #1 supplier of customer information systems in the Nordic energy utilities TSM • Nordic market leader in customer experience solutions • World-wide leader in Hydrocarbon Accounting software BCI

2 © Tieto Corporation Today’s agenda

1 ICS opportunity 2 ICS future bets 3 ICS ambition We look at the opportunities We open up on how we We share our ambition to in the Nordic industries to are getting ready for the Nordic Industries and enable a data driven digital capturing these society enterprise opportunities

3 © Tieto Corporation Taking Nordic industries to a data-driven digital world

Industry 4.0 Data platforms SERVITIZATION CLOUD CUSTOMER Sufficiency EXPERIENCE UNLOCK Automated INCREASE BETWEEN CUSTOMER services BUSINESS 2016–2017 EXPERIENCE CIRCULAR BUILD THE INCREASE POTENTIAL BETWEEN ECONOMY ROBOTICS DIGITAL 2017–2018 THROUGH FOUNDATION DATA Retail sharing economy Security and compliance CUSTOMER EXPERIENCE CONSUMER AGILE INCREASE EXPERIENCE BETWEEN 2015–2016 ENTERPRISE Sustainability Intelligent everything

4 © Tieto Corporation Helping Lyse build a digital foundation

About Lyse Lyse is a Norwegian industrial group operating within the About the co operation fields of energy, fibre-based broadband and smart Tieto selected to deliver cloud solutions, infrastructure homes. The Lyse Group was established following the operations and data centre services to the leading merger of several energy companies in 1998, being Norwegian energy and technology group Lyse operational from 1999.

CUSTOMER BUSINESS TIETO’S ROLE CUSTOMER BENEFITS OPPORTUNITY Delivery of unified multi-cloud Ability to deal with changing technology, Reduced IT costs, optimized business management platform and a true hybrid user requirements and IT requirements processes and strengthened ability to cloud that includes a set of dedicated develop and deploy new services faster private cloud services from Tieto’s Faster innovation and flexibility, and cost Norwegian data centre combined with control where Lyse pays for actual Utilization of automation, speed and global public cloud solutions from leading consumption of services innovation to succeed in the digital world suppliers

5 © Tieto Corporation Supporting Metso’s servitization journey

About Metso About the co operation Metso is a world-leading industrial company offering Tieto helped Metso solve real-world customer problems equipment and services for the sustainable processing and enhance digital customer experience for distributors and flow of natural resources in the mining, aggregates, and end users recycling and process industries

CUSTOMER BUSINESS TIETO’S ROLE CUSTOMER BENEFITS OPPORTUNITY Tieto and Metso jointly designed and Makes work easier and more efficient for Metso wanted to significantly improve built My.metso.com, a new digital distributors and direct end customers, as the daily work of its distributors and end channel for easy ordering of Metso spare it enables working while on the go or in a customers that use their aggregates, not and wear parts providing uninterrupted, remote quarry only now, but years into the future real-time access to Metso’s digital services

6 © Tieto Corporation Digitalizing the forest with Metsä Group

About Metsä Group Metsä Group is a forerunner in sustainable bio economy utilizing renewable wood from sustainably managed About the co operation northern forests. Metsä Group focuses on wood supply Tieto and Metsä Group are digitalizing the forestry ecosystem and forest services, wood products, pulp, fresh fiber with help of Artificial Intelligence, drones and Virtual Reality paperboards and tissue and cooking papers.

CUSTOMER BUSINESS TIETO’S ROLE CUSTOMER BENEFITS OPPORTUNITY Built a management system for forest Possibility to apply virtual reality on Digitalize the forestry ecosystem and assets using Digital Forest Twin digitized forest assets to further develop highly innovative services for strengthen Metso Group’s leading timber trading and forestry services Digital and reliable information position revolutionizes forest planning Further expand the portfolio of digital Forest management made easier and services for the wood and fiber supply damage from bark beetles reduced chain

7 © Tieto Corporation Helping Nordic industries to move to a data driven digital enterprise

GROWTH POTENTIAL VISIBLE OPPORTUNITIES (next 5 years) CO OPERATION PARTNERS

Post modern enterprise transition in Nordic forest and manufacturing industry 100+ M

Multiple change drivers in Nordic utilities driving core software renewal and emerging business models 50+ M

Hydrocarbon management for Oil and Gas for driving efficiency from assets ~10% CAGR

5G is opening new frontiers for telecom manufacturing, logistics and retail ~10% CAGR

Application modernization demand with new age robotics, artificial intelligence, DevOps and Agile +500M

8 © Tieto Corporation Our industry solutions portfolio is sharpened to capture this opportunity

VALUE PROPOSITION GEOGRAPHICAL PRESENCE

Handling the management of the whole order-to-cash value chain in the forest Industry Global Production Enables building excellence in production where it matters most for Excellence the paper industry.

Enabling utility retailers and distributors to optimize business processes for improved reliability and customer satisfaction with Tieto Smart Europe efficient distribution, easy network management, meter automation Utility and smart services to their customer

The suite offers Oil and Gas industry with unprecedented support for Hydrocarbon the whole upstream value chain, including onshore and offshore Global Management operations, with dedicated support for production operations, terminals, gas plants, LNG facilities, and pipeline

Industry Solutions© Tieto Corporation We are renewing our portfolio to capture the new opportunities

GAME PLAN FOR GROWTH

The solution for the forest Industry will transition out of its current legacy software business and move towards more pre-packaged System integration, Production driven by post modern enterprise renewal in Forest industry. The portfolio will Excellence widen to include high growth segments in tissue, non woven and packaging and is expected to see moderate growth in 2019.

Strong order book, Tieto Smart Entering a crucial phase where it will need to deliver its current backlog and focus on deliveries in Utility stabilize. Growth potential in next two years minimal, followed by accelerated growth in Europe 2019, performance improving in 2020

Tieto Hydrocarbon Accounting for Oil and Gas industry is in a very health Hydrocarbon maturity and will sustain healthy profitability in coming years. Tieto Management Hydrocarbon management (HCM) has high growth potential starting 2019

Industry Solutions© Tieto Corporation Tieto Distributed Energy Solution is ready to capture the new energy service opportunities and fight climate change

HOMES • Connected Services • Controllable loads & Efficiency TRADITIONAL • Micro-production and storage ENERGY Asset Management • EV charging INDUSTRY Energy Management Service Integrations ENERGY DATA HUBS Energy Tieto Distributed Markets Energy Solution Real time data RETAIL AND Demand Response & TELECOM Demand Side Management ASSETS

ENERGY SERVICE PROVIDERS OFFICES & INDUSTRY Smart Energy Management - Energy Efficiency  Reduction in CO emissions - Load control 2 - Electric Vehicles

11 © Tieto Corporation We aim for the pole position to accelerate our customers’ business renewal using data

in production excellence In digital customer experience solutions across forest industry solutions in Nordics globally Today in top 3 (by size) Today in top 3

in customer information in hydrocarbon systems management solutions (Smart Utility) in the Nordic globally energy utilities Today #1 in Hydrocarbon Today in top 3 Accounting Nordic advisor for post modern Nordic advisor of business enterprise renewal in design, renewal using industrial and Implementation and consumer data management of business Journey started #1 systems Journey started

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Strong position in Nordic consulting and digital services Ari Järvelä, Business Consulting and Implementation 1 © Tieto Corporation Key facts

13% of Financial Public, Industrial and SERVICES Services Healthcare Consumer Tieto’s sales and Welfare Services • Business, technology and process advisory • Software development and integration in both on-premise Industry Solutions and cloud environment Business Consulting • Customer experience, content management, customer and Implementation care and commerce solutions Technology Services • Analytics and cloud integration and Modernization • Prepacked enterprise application solutions, e.g. SAP, Product Development Microsoft, Oracle, Salesforce and Workday Services

Support Functions CUSTOMERS AND MARKETS • Serving enterprises headquartered in the Nordics • Manufacturing, Finance, Retail and Telco the largest segments FS Sales by MARKET POSITION Industry Group • #1 in Finland • #2 in Sweden ICS • Niche in Norway PHCW

2 © Tieto Corporation Attractive Nordic market with strong growth of over 10% Matching business renewal needs with digital and traditional consulting services

BUSINESS RENEWAL NEEDS meet TECHNOLOGY 88% of Nordic executives expect change in Omni-channel their value chain in coming years experience • Customer experience • Data and insight • Core renewals 30% 24/7 on-demand • Cloud and integration annual growth for advanced data-driven services INNOVATION solutions in 2018-2019 INSIGHT Personalization COMPETENCE EXPERIENCE Service desing, Microservice, 46% Digital supply Automation, Robotics, growth in system integration services networks Blockchain, SaaS, Cloud, IoT, for SaaS in 2018* Artificial Intelligence …… +5B ADVISORY | THOUGHT LEADERSHIP | CAPABILITIES | PARTNERS | REFERENCES investments in Nordics for core platform renewals during the next five years

* Forrester: European Tech Market Outlook for 2018 to 2019 © Tieto Corporation Where business renewal meets technology

VALUE CREATION ENABLING WITH DATA SPEED AND AND INSIGHT MOVING TO AGILITY WITH SAAS AND GUIDING CLOUD BASED CLOUD NATIVE THE WAY DEVELOPMENT ARCHI- THROUGH TECTURES DIGITAL JOURNEY

We help our customers in their We simplify processes and We enable speed and agility We help our customers to business renewal transformation technologies by modernizing by advising and implementing create insightful view and with business-, process-, and architectures and platforms Cloud-based solutions with value of their consumer- technology consulting into SaaS environments agile and design led approach and enterprise data.

Advisory and thought leadership advisory | Partners and ecosystems | References

OUR GROWTH OPPORTUNITY Opportunities with FOCUS design, data and Growth cloud services, opportunity • Digital business, technology and process consulting mainly driven by >15% Dual businesses • Data Insight and Intelligence • Customer Experience solutions agenda Opportunities with Growth traditional process • Core process and business platform Digital and traditional opportunity renewal consulting services and IT consulting, mainly driven by IT >5% • Cloud integration and cloud native development

5 © Tieto Corporation Unique Nordic position to accelerate customers’ business renewal

Examples of success

Engaging with strong customer base ✓ Forerunner in Time-to-data and comprising +150 Tier1 and +1 500 clients Artificial Intelligence

Unique combination of capabilities for ✓ Acquisitions of Avega (2017) and advisory and implementation of digital Meridium (2018) solutions – combining e2e-technology, ✓ Employing 600+ experts in industry expertise and business Customer Experience

+2 500 employees with leading edge competences covering full set of traditional ✓ Market-leading cloud-integrator and digital consulting capabilities partner

6 © Tieto Corporation The leading digital advisory and implementation partner for Nordic enterprises by 2020

FOCUS AREAS TODAY BY 2020

Strong in traditional consulting, growing Scalable, seamless digital and traditional Service portfolio rapidly in digital services consulting and advisory services

Good scale along with offshore – good The cool place to work with inspiring career Employee attractiveness traction in selected growth domains. opportunities

Leading Nordic partnerships with global Most attractive partner in software, cloud Ecosystem software firms and digital ecosystems

Nordic leader in all three countries Equally strong in Sweden and Finland, Geography (Fin, Swe, Nor) with organic growth and sub-scale in Norway bolt-on acquisitions

RECOGNIZED E2E CONSULTING LEADING NORDIC PARTNER FOR OUR MARKET POSITION SERVICES PROVIDER CUSTOMERS’ BUSINESS RENEWAL

7 © Tieto Corporation Renewing customers’ business across industries

We create business networks We help consumers to reduce We enhance customer with blockchain technology their climate impact experience with our digital insurance services 25% of Finnish household’s financial "My Climate Goal" enables consumers assets are in non-listed company to follow the climate impact from their Tieto develops new agile digital shares. We make the trading process food purchases with the help of a services for Ilmarinen’s business easier with blockchain technologies, digital tool. When consumers use their clients to enhance their customer providing a new reliable, simple and ICA card for food purchases, the experience. The insurance processes, entirely digital way for non-listed climate impact of the food is as well as the systems supporting company share trading. calculated, using modern technology them, are renewed to achieve and scientific calculations. increased efficiency and speed.

8 © Tieto Corporation Growth and profit drivers

Growth Profitability

Business 2020 2017 2017 2020 Consulting and Implementation

Average Market Growth Target profitability for Tieto (Tieto’s addressable market)

GROWTH DRIVERS PROFIT DRIVERS

• Expansion in Sweden and Finland, Market • Best mixture of local and global delivery entry into Norway • Consulting culture with high • New services – Data Insight, Native cloud accountability on utilization apps, SaaS-based solutions • Solution accelerators for improved • Ecosystem partnerships in SaaS- and profitability Cloud-domains

• Employee attractiveness

9 © Tieto Corporation Where business renewal meets technology

We aim to be #1 #1 #1 advising and implementing most trusted partner in cloud integration and cloud insightful solutions based on customer experience native development partner consumer and enterprise data solutions and enterprise core in Nordics process renewal

© Tieto Corporation All information in this material is for informational purposes only. The opinions and viewpoints regarding, inter alia, the future of the company and markets are of Tieto and may not actually materialize. This information should not be construed as an investment recommendation or investment advice. All information expressed herein is subject to change without notice. Neither Tieto nor its officers nor employees shall have any liability for any loss sustained by anyone who has relied on the information provided.

Modernizing enterprises for efficiency and agility

Håkan Dahlström, Technology Services and Modernization 1 © Tieto Corporation Key facts

48% of Financial Public, Industrial and Services Healthcare Consumer SERVICES Tieto’s sales and Welfare Services • Technology advisory Industry Solutions • Managed services - applications, integration, application platforms, infrastructure, workplace and Business Consulting and Implementation security • Enterprise cloud solutions Technology Services and Modernization CUSTOMERS AND MARKETS Product Development Services • Enterprises headquartered in the Nordics

Support Functions • Example of customers: City of Stockholm, Region Skåne, Telia, IF, Nordea, SSAB, OP Group, Kesko, Lähtapiola, Cargotec, Arek, City of Helsinki, Outokumpu, Ilmarinen, Metsä Group

Sales by MARKET POSITION Industry Group FS • #1 in Finland ICS • #2 in Sweden • Expansion in Norway • Leader in Nordic enterprise cloud

PHCW

2 © Tieto Corporation Steady execution towards 2020 ambition

TECHNOLOGY GOOD MODERNIZATION GROWTH IN STRONG AND BUSINESS CLOUD SERVICES FINANCIAL CONTINUITY PERFORMANCE

3 © Tieto Corporation Being our customers’ modernization partner

HOW WE CAN HELP • Application modernization BUSINESS NEEDS Modernize and rationalize the application landscape • Multicloud orchestration and cloud migration • Drive the digital strategy and superior Increase capacity flexibility and time to market customer experience across all channels • Cyber security • Modernize IT to enable innovations, growth Ensure data protection, privacy, and right location for and data-driven value data storage • Decrease time to market • Automation • Drive efficiency and reduce total cost of Increased efficiency and cost savings in ownership IT operations • Run business in dual mode – efficiency • IT ecosystem management from legacy operations and invest into Service integration and management across IT a digital future services ecosystem

4 © Tieto Corporation Nordic leader in modernizing customers’ Application modernization application landscape

CUSTOMER PRIORITY OUR VALUE PROPOSITION EXAMPLES OF SUCCESS

Current state Future state • Deep customer knowledge to manage Develop the business change (Digitalize and modernize) Innovate Room for • Industrialized services and increased for efficient business develop innovation continuity

Total • Co-creation with Cost of Transition customers Initial cost Ownership cost (TCO) Operate • Managing hybrid (RUN/Keep environments and lights ON) Operations ecosystem cost reduced Operate

5 © Tieto Corporation Cloud migration as an enabler Multicloud orchestration and cloud migration for business agility

CUSTOMER PRIORITY OUR VALUE PROPOSITION Nordic energy giant • Leading private cloud Vattenfall takes a Agile business models solutions in the Nordics digital leap forward • Multicloud orchestration Ecosystem orchestration across major public clouds – AWS and Azure The Prime • Well positioned to manage Minister's Office Faster time to market customers’ heterogenous one of Finland's environments most significant • Strong enterprise digitalization projects Insights with data architecture and application modernization Flexible capacity and Norwegian Railway pay-as-you-go Directorate the first in public sector to go 100 Reduced percent cloud-based operational costs

6 © Tieto Corporation Our leading-edge solution combining public Multicloud orchestration and cloud migration and private cloud driving future growth

Tieto OneCloud Investments Tieto OneCloud combines the best SIMPLE Accelerated investments to from key ecosystems in public and drive multicloud Partnerships private clouds into one portfolio, orchestration Leading cloud integrated and easy to manage players, such as SECURE AWS, Azure, VMware, Google • Multi-cloud management • Market leading partners AGILE & • Public, Private and Hybrid cloud EFFICIENT services Customers include • Workload flexibility Outokumpu, • Cloud advisory Stora Enso, Metsä Group, Region Skåne

Market 40–50% of infra services delivered through private and public cloud by 2020

7 © Tieto Corporation Customer Success Story Cloud migration Telia Norway – Agile development in public cloud

Scope Customer benefits Turning traditional release cycles into • Time to market – from nine continuous delivery model and accelerate yearly releases to daily development from months to days. Moving releases and re-platforming microservices components • Significant quality and stability to public cloud for scalability, faster product improvements innovation and cost transparency. • Cost reduction

8 © Tieto Corporation Increased demand for security services Cyber security

CUSTOMER PRIORITY OUR VALUE PROPOSITION HOW WE SCALE

• Customers need to gather, process, and Combining customer intimacy and • Tieto’s Cloud presence store critical data infrastructure services to protect sensitive • Tieto’s Datacenter footprint • Cloud migration requires a completely customer data with 24/7 security operations • Recent acquisition of NSEC new approach to security • CAGR 10-15% until 2022

THREAT AND CLOUD SECURITY AND VULNERABILITY EMERGING TECHNOLOGIES MANAGEMENT

MONITORING APPLICATIONS AND DATA SECURITY AND OPS

NETWORK SECURITY ENDPOINT AND MOBILE SECURITY SECURITY TEAM

9 © Tieto Corporation Automation driving efficiency, Automation quality and profitability

CUSTOMER PRIORITY OUR VALUE PROPOSITION IN RPA Success in RPA End to end services from 35+ use cases in • Master Data Management advisory, development and commercial • Cash collection process continuous services to manage contracts automation complete robot lifecycle Active use cases in • Finance operations • Expertise in robotics Machine Learning automation technology platforms Predictive analytics being commercialized • IT Monitoring automation • Saving up to 30% of cost for operations • Incident notifications and work note updates • Quick set-up time by reusable components and Customers • Service Desk incident pre-defined set of use cases include Kesko, resolution automation SSAB, Valmet, • Pay as you use – Robot as a City of Stockholm, service City of Tampere • Blended Nordics and offshore team for attractive pricing

10 © Tieto Corporation Solving data migration challenge Automation for a healthcare service provider Customer Success Story

Scope Customer benefits – using Robotic Process Automation A large healthcare provider in Finland needed to migrate 18 years of customer health records data • Data migration of over 700 000 records from 4 legacy systems to a new IT system on a within 2 weeks by 8 robots strict schedule. • 1 600% increased efficiency, reducing 4 FTE work for 3 months to 15 days • 100% data accuracy of migrated data • No business disruption during migration

11 © Tieto Corporation Leading the change in outsourcing with SIAM* IT ecosystem management Capacity to manage ecosystems becomes increasingly important

Heading for MULTI-PLAYER ECOSYSTEM ORCHESTRATION #1 position Drivers for service 2016–2018: From 0 to 15 integration Customer benefits • Ensure Business Continuity • Less downtimes and incidents of our top 50 customers Tieto SIAM • Ensure E2E Performance • Reduction of E2E resolution time covering a wide mix of value • Cost Savings • 20–25% annual cost savings industries proposition Today: SIAM is an • Secure Competences • Flexible resourcing essential part in new • Manage Multivendor • Efficient governance outsourcing contracts and deliveries Managing multi-vendor ecosystems, including SaaS and multicloud orchestration Tomorrow: Ambition to • SIAM as a Service with SLA/KPIs be # 1 SIAM Services • Cost efficient delivery models provider in the Nordics • Certified and experienced SIAM professionals • Flexible and easy to scale services • Managing multicloud environments

12 © Tieto Corporation *SIAM – Service Integration and Management Cargotec - Efficiency by Tieto SIAM IT ecosystem management Customer Success Story

Realized Benefits

We are impressed about the speed of transition: Customer benefits it’s been 6 months after • Cost decreased by 20% agreement was signed, and • Better control and now we are live with our transparency SIAM services. One of the • New service transition and Set success factor was that Tieto CONTROL INNOVATION up Operations had a clear concept for • Synergies and best practice SIAM, and they led the show. sharing Jan Alakoski, Cargotec IM Director

13 © Tieto Corporation Attractive service portfolio driving growth above the market

THE AMBITION WE SET IN 2016 OUR GROWTH IN 1– 9/2018 TSM’s ambition is to grow Sales growth in 2016–2020 (CAGR) Sales growth (CAGR) at least at the market rate*) Cloud apps and Security Solutions UP Eco-system solutions UP Infrastructure 5–20% 19% cloud Hybrid Cloud and Cloud solutions

Renewal and modernization of UP traditional Infra & Apps UP Application 2–5% 8% services Service integration and experience

2015 2020 DOWN DOWN New services Traditional infrastructure Traditional 5% and application services 4% Infra Renewal and modernization Traditional services

*) 14 © Tieto Corporation Market growth expectation (CAGR) for the Nordics at 1.5–3% Progress summary – on the right track

Achieved 2016–2018 Plan 2019–2020

Our mission Actively advice and modernize customers’ IT Cloud share of infra revenue is 40 % across applications and infrastructure

Value for customers ✓ Business agility and continuity 25% achieved Accelerated adoption of multicloud ✓ Faster technology adoption and return on investments Balanced deliveries, 60% global delivery ✓ High-quality and cost-efficient operations ✓ Access to global capacity and resources 50% achieved Active global delivery staffing and recruitments

Automation – 500 digital full-time employees

200 DFTEs achieved Automation acceleration

Growth Profitability

Technology 2015 2020 2015 2020 Services and Modernization 2017 2017

 Average market growth Target profitability for Tieto (Tieto’s addressable market)

GROWTH DRIVERS PROFIT DRIVERS • Increased demand for managing the • Industrialized, next generation managed complex IT landscape – Tieto is well services and methods equipped to manage duality and transform • Robotics and cognitive automation for • Attractive offering portfolio meeting increased efficiency business needs • Digital channels for service access and • Expansion in Sweden, Finland and Norway delivery and support in close co-operation with Industry Groups • Balanced deliveries with off-shoring and near-shoring

We are big enough to be We have what it takes to We are our customers competitive and manage the duality digital transformation small enough to care Capable of managing the legacy partner Long customer relationships and while modernizing the IT The competence and services knowledge of their business landscape, with Security by needed to be the design principles advisor and guide for the CXO

Solid performance – ready to expand

8% of Financial Public, Industrial and Services Healthcare Consumer SERVICES Tieto’s sales and Welfare Services • Focused high-end Software R&D services with healthy Industry Solutions offshoring/nearshoring ratio Business Consulting • Strengthening portfolio of own products and solutions in the and Implementation areas of networking Technology Services and Modernization CUSTOMERS AND MARKETS Product Development • Global Tier-1 OEMs in telecom, consumer electronics, Services semiconductor and automotive industries

Support Functions • Widening customer base with over 60 international customers MARKET POSITION

Smart Devices Other • One of the globally leading Software R&D services and Sales by solutions suppliers in connectivity and networking Automotive segment technologies Semiconductor • Strong presence in Europe, North America and China • Growing market position in the Automotive domain with several key customers Telecom

Cloud Born Dynamic Connected Safe Mobile Fun Hybrid & Multi Software defined Telematics, V2X, ADAS, Platforms, Apps, Multimedia, vendor, NFVi, Infrastructure, Connected car ISO 26262 AI, Multimedia Multiroom Audio, Cloud Native Zero Touch Smart TV apps

Ever reaching Autonomous Aware As a service Cozy Healthy 5G NR, HetNet, Orchestration, HERE technologies, Fleet management, Smart Home, Wearable, DevOPS, NB-IoT, Cloud RAN Automation, Slicing, Location based Mobility Services, Homekit, Alexa, Automated Open source services Use based insurance Google Home

TELECOM, 5G ADOPTION NEW CONSUMER IOT DEVICES, AUTOMOTIVE SOFTWARE GROWTH ACCELERATION INTELLIGENCE

Mobile Connections* in -Vehicle Software IoT Revenue by segment

~9 Bn ~€2.4Bn ~$3000 Bn

5G Industrial CAGR CAGR 14% 22% Chassis 14% 2% CAGR 49% Powertrain ~7.8Bn 4G CAGR 22% 21% 11% 53% ~$2150 Bn 29% Infotainment, 26% Telematics 31% 3G ~€1.7Bn 53% CAGR 51% consumer 29% Safety 34% 28% Systems 40% 2G 47% 4%

2017 2025 2017 2020 2018 2020

• Accelerated 5G adoption, NEP & Semiconductor • Increase of software & complexity in vehicle • High growth devices: Smart Speakers, Wearables vendor R&D follows • Connected car and Digital services driving new and Smart Home • 4G driving most revenue for NEPs, but cost revenue • New interaction and automation enabled by AI optimization required • Autonomous driving (Voice, Vision, NLP)

Opportunities for large 4G programs as well as Opportunities in vehicle SW, Connectivity, Cloud Opportunities in wearable, smart home and spearhead 5G projects and industry transformation towards software innovation through AI

Sources: GSMA intelligence, Technavio, IoT Advisory Group, Nasscom 4 © Tieto Corporation *Excluding IoT Connections Automotive market dynamics, our key opportunity

VALUE OF VEHICLE: TODAY CHALLENGES FOR OEMS OPPORTUNITIES FOR TIETO VS TOMORROW AND SUPPLIERS

Digital 10% Connected 20% car Cockpit Stagnation of vehicle sales ADAS & Telematics Safety and fleet 40% Today Tomorrow Acceleration of Technology adoption, Growing Complexity TODAY TOMORROW 90% 40%

Hardware Software Content & Services Software as differentiator Leading OEM Existing customers

Multiple Connected Vehicle Forecast + %of vehicles sold Active safety and Autonomy 4 & 5 Tier-2

95% Location Services Leader Multiple OEMS Connectivity in vehicle, between 57% vehicles, to infrastructure Leading Multiple 41% Tire Manufacturer Tier -1 Mobility as a services, move towards Leading Multiple services. etc 2015 2020 2025 semiconductor Semiconductors

World-class solutions and OUR STRENGTHS

expertise provider in emerging Close to our global customers communications and Strong closeness to our customers in their home base and offshoring locations digitalization technologies Delivering on the promise High Customer satisfaction and capability to always Well positioned to capture the market opportunity deliver what we promise. combining cutting edge technology competences, High level expertise and professionals advance software development practices and a 20+ years expertise on delivering complex and large SW proven global delivery model programs Growth capability Proven organic growth capability in key delivery sites in China, Poland and Czech High employee satisfaction Lean and transparent operations to ensure high motivation and professionalism in the teams

Achieved 2016–2018 Plan 2019–2020

Positive growth in Automotive Grow beyond telecom Further Grow in Automotive, Emerging Industries

4G/5G strong position established Success in 4G/5G technology services Share in Next generation Comms (4G/5G)

Product Renewal for 4G/5G done Growth in product business Accelerate Product business sales

GROWTH STRATEGY ENABLERS FOR GROWTH

• Expand with existing customers Strengthen customer base • New Automotive customers • Acquire new big customers Continued • Grow delivery centers in Pol, Cz, Chi Build scale globally • Strengthen presence in CEE strong growth + • Build wider capability in Automotive Expand new capabilities • Expand to new industries Sustained • Excel in Agile, Devops, Microservices profitability Accelerate growth through • Bolt on acquisitions to accelerate growth • Faster expansion to new industries and M&A customers

Growth Profitability

Product 2015 2017 2020 2017 2015 Development Services 2020

 Average market growth Target profitability for Tieto (Tieto’s addressable market)

GROWTH DRIVERS PROFIT DRIVERS

• Growing demand in key industries, • Focused in the higher value added especially 5G and Automotive services areas

• Meet the demand with the scale globally • Solid, proven and lean operations and in CEE • Good mix of high offshoring ratio (+70%) • Expand into new growth industries for and customer closeness further scale • Mix of business models contributing to • Accelerate through acquisitions stable profit margins

9 © Tieto Corporation Timely launch of a new brand Anima needed to speed up the development to secure the timely launch of a new brand – Kronaby, the hybrid smartwatch enabling you to stay connected. Not distracted.

Challenge • Pressure to succeed in the market launch of a new brand marrying traditional watchmaking with the latest technology of smartwatches

How Tieto helped • Accelerated time to market through agile SW engineering team with responsibility combining cutting edge technologies and best SW practices

Anima specializes in designed smart, connected products. Kronaby is the hybrid, connected smartwatch brand Customer value owned by Anima. • Timely launch of the Kronaby watch, while Tieto handled iOS app implementation Case: • Great end-user experience for Kronaby watch and iOS app Software Development Services, IoT • Cost-efficient SW R&D

10 © Tieto Corporation Enabling the autonomous world HERE Technologies needed a partner to both support their own product development as well as adding value for end customers

Challenge • Accelerating development and market growth of Here platforms and Solutions • Finding a partner capable of both product development and creating customer and industry specific solutions

How Tieto helped • Establishment of a Center of Excellence for HERE solutions • Strategic R&D cooperation in Product development • Joint go to market for location based services and map content

Here specializes in Location based solutions to enable the Customer value Autonomous World for everyone • Accelerated time to market and scale product development for HERE • Single stop shop for location based solutions for Tieto and HERE customers in multiple Industries Case: • Global support and reach Automotive, Location based Services, partnership

Great market opportunity, especially in 5G and Automotive

Right competences, global delivery and high performing operations to capture the opportunity

Proven growth capability in new industries beyond telecom

Solid baseline for higher growth ambition and expansion through acquisitions

Well positioned to consistently increase shareholder value

1 Well positioned to gain 2 Successful acquisitions 3 Growth as a key driver market share in the implemented – M&A for improvement in Nordics agenda continues operating profit

OBJECTIVES SET IN 2015

1–9 2018 / 2015 2017 OBJECTIVE R12** IT services revenue growth GROWTH 2.0% 3.0% 3.5% above the market (CAGR)

EBIT MARGIN 8.6% 9.0% 9.3/10.3%** 10%

ADJUSTED* EBIT MARGIN 10.3% 10.5% 9.6/10.6%**

Base dividend to be DIVIDENDS, EUR 1.35 1.40 increased annually

NET DEBT/EBITDA 0.1 0.8 1.0 <1.5

Positive trend in line with the financial objectives while investments increased

*) adjusted for restructuring costs, capital gains/losses, goodwill impairment charges and other items © Tieto Corporation **) Rolling 12 months Positive trend while investments for growth increased

NET CASH FLOW FROM NET SALES OPERATIONS MEUR MEUR 2000 200

1500 150

1000 100

500 50

1825 1607 1523 1460 1493 1543 161,9 159 167,9 132,6 97,2 151,0 0 0 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017

OPERATING PROFIT CAPEX AND ACQUISITIONS MEUR % MEUR 200 15,0 % 200

150 10,5 % 150 10,2 % 9,9 % 10,3 % Adjusted* 8,8 % 10,0 % operating profit 86 7,6 % 9,4 % 9,0 % (EBIT), EUR Acquisitions, 100 8,6 % million 100 EUR million Adjusted* 38 49 2 5,0 % operating profit 1 (EBIT), % 50 5,3 % 50 Capital 3,5 % 4,0 % expenditure, Operating profit EUR million 138,8 141,2 150,2 150,8 152,2 161,5 (EBIT), % 63 68 44 51 62 51 0 0,0 % 0 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017

*) Adjusted for restructuring costs, capital gains/losses, 4 © Tieto Corporation impairment charges and other one-off items Positive trend in key ratios

EQUITY RATIO % % NET DEBT / EBITDA** 50% 1,5 According to our financial targets Net debt/EBITDA: 45% upper limit 1.5 in the long run 0,5 0,2 40% 0,1 0,1 0,6 0,8

-0,4 46,9 49,3 47,8 46,2 47,3 42,6 35% -0,5 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017

CASH CONVERSION RATE (CCR) DIVIDENDS MEUR 4 120

15 3 18 16 22 2,2 80 1,8 CCR 2 1,6 Additional dividends, 1,3 1,1 Adjusted* CCR EUR million

1 0,6 40 Dividends, EUR million

3,4 1,4 3,6 0,9 0,3 0,9 0 65 73 81 85 89 2012 2013 2014 2015 2016 2017 0 2013 2014 2015 2016 2017

Cash conversion rate (CCR) = Free cashflow (FCF) / Net profit 5 © Tieto Corporation *) excluding M&A, divestments, restructuring and impairment **) estimated IFRS16 impact on EBITDA ~EUR +4 million and on Net debt ~EUR 154 million Our ambition and value creation Reiterating financial objectives

Current Ambition 2020 performance Focus on new businesses, consulting-led services, product IT services revenue growth development services along with Industry solutions above the market (CAGR) expansion – increased investments and reprioritization Organic growth at least at market rate

10% reported operating Adjusted*) margin sustainably above 10% margin (EBIT) Offering development below 5% of sales (OPEX)

Aim is to increase base dividends Strong cash-flow driving attractive dividend profile annually in absolute terms

Net debt / EBITDA 1.5 as an Investment capacity for organic and inorganic growth upper limit in the long run CAPEX expected to remain below 4% of sales

*) Adjusted for restructuring costs, capital gains/losses, 7 © Tieto Corporation impairment charges and other one-off items Growth as a key driver for improvement in operating profit

MEUR REVENUE GROWTH 2 000

Market average

Industry solutions and new data-driven opportunities driving growth

0 2015 2017 2020 Further potential from M&A MEUR ADJUSTED* PROFIT GROWTH 300 Growth driving Strategic ambition increased profits in absolute terms

0 2015 2017 2020

8 *) Adjusted for restructuring costs, capital gains/losses, © Tieto Corporation impairment charges and other one-off items We maintain 10% margin as the objective

Adjusted* Adjusted* EBIT margin EBIT margin % EBIT margin % 10%

2017 Revenue increase Productivity improvement Salary inflation/ 2020 Annual restructuring 2020 and offshoring other

Key drivers

Offering development Salary Improved SG&A Automation and Increasing expected to inflation Revenue growth ratio standardization Offshoring ratio remain ~4% below 5% of annually sales

*) Adjusted for restructuring costs, capital gains/losses, 9 © Tieto Corporation impairment charges and other one-off items Productivity gains driving margin improvement

2015–2017 2017–2020 INDUSTRY SOLUTIONS DRIVING INCREASE IN PRODUCTIVITY SALES GROWTH MARGIN IMPROVEMENT

Adjusted* EBIT, EUR million 150 100 Divestments of non-core Share of emerging services businesses and industry solutions Share of legacy started to increasing IS 100 Revenue decline New data-driven BCI per FTE 50 PDS business volumes down opportunities TSM 50 – IT services turned to PDS Offshore Selective acquisitions ratio growth in 2014 based on good M&A Growth bets defined capability 0 0 2017 2020 2015 2017 2020

SG&A TO SALES RATIO INVESTMENTS IN OFFERINGS PROFIT IMPROVEMENT IMPROVING STABILIZING 80 7,8 More focused and efficient 2 000 Growth driving increased 70 7,3 operations 1 800 DDB profits in absolute terms 1 600 26,00% 60 6,8 Increased investment in 1 400 Other Continuous productivity Sales 50 6,3 growth: offering 1 200 improvement development and new 1 000 21,00% 40 5,8 IS Offering development 800 30 5,3 competencies 600 SG&A TSM stabilizing to around 5% of 16,00% 20 4,8 Offshoring ratio from 40% 400 as % of sales % of to 46% 200 Sales 10 4,3 sales Stabilized restructuring 0 11,00% Transformation resulted in 0 3,8 costs 2015 2017 2020 2015 2017 2020 high restructuring costs

*) Adjusted for restructuring costs, capital gains/losses, 10 © Tieto Corporation impairment charges and other one-off items Ambitions by Service Line

Growth Profitability

Technology 2015 2020 2015 2020 Services and Modernization 2017 2017

2015 2020 2017 2020 Industry Solutions 2017 2015 Business 2020 2017 2017 2020 Consulting and Implementation

Product 2015 2017 2020 2017 2015 Development Services 2020

Average market growth (Tieto’s Target profitability for Tieto addressable market)

Tieto’s objective: IT services revenue growth above the market (CAGR) 11 © Tieto Corporation Cost for Support Functions not visible in this view Successful acquisitions accelerate our role as the preferred business renewal partner

2013 2015 2016 2017 2018 Our criteria:

Canvisa Software Emric Avega Petrostreamz Consulting Innovation Credit processing Consulting in Oil & Gas Strategic fit Financial services Enterprise Content in Nordics Sweden Sales ~ EUR 2 Business attractiveness consultancy in Management Sales ~ EUR 20 Sales ~ EUR 45 million Sweden Sales ~ EUR 40 million million NSEC stand alone Sales ~ EUR 8 million Security services Execution and million Smilehouse in Sweden integration asessment eCommerce Sales ~ EUR 3 Sales ~ EUR 10 million Valuation and million Meridium expected returns Imano Digital customer Consulting experience Deal dynamics Sales ~ EUR 7 Sales ~ EUR 7 million million

Market opportunity based on customers’ agenda to accelerate innovation and efficiency

Healthy company with strong balance sheet

Focused investments, especially in data-driven opportunities and own industry solutions, to drive growth faster than the market

Consistent profit improvement

Attractive dividend policy

Speakers in the Capital Market Day 2018

Kimmo Alkio Håkan Dahlström President and CEO Executive Vice President Technology Services and Modernization

Ari Järvelä Satu Kiiskinen Executive Vice President Executive Vice President Business Consulting and Implementation Industrial and Consumer Services

Katariina Kravi Tom Leskinen Executive Vice President Executive Vice President Product Development Services Human Resources

Speakers in the Capital Market Day 2018

Cristina Petrescu Janne Salminen Executive Vice President Chief Financial Officer (acting) Public, Healthcare and Welfare

Christian Segersven Executive Vice President Financial Services

Moderator

Kia Haring Head of Global Communications

IR contacts

Tanja Lounevirta Ilkka Palmén Head of Investor Relations Finance Partner Phone +358 20 727 1725 Mobile +37 40 1828287 Mobile +358 50 321 7510 [email protected] [email protected]

Tuija Silvennoinen Assistant Phone +358 20 727 9939 Mobile +358 40 578 3463 [email protected]

Tieto aims to capture the significant opportunities of the data-driven world and turn them into lifelong value for people, business and society. We aim to be customers’ first choice for business renewal by combining our software and services capabilities with a strong drive for co-innovation and ecosystems. www.tieto.com