TietoEnator Corporation STOCK EXCHANGE RELEASE 6 February 2007, 8.00 am EET 1 (19)
TIETOENATORS interim report 4/2006 (January December 2006)
Key financials for continuing operations
- Fourth-quarter net sales grew 5% to EUR 455.5 (432.1) million.
Full-year net sales totalled EUR 1 646.5 (1 570.4) million with
5% growth.
- Organic growth 6% in the fourth quarter, 2% in the full-year.
- Fourth-quarter operating profit totalled EUR 43.9 (50.1)
million and included EUR 7.3 (1.7) million of capital gains.
Operating margin excluding capital gains was 8.0% (11.2). Full-
year operating profit totalled EUR 127.7 (169.1) million.
- Profit before taxes EUR 42.2 (51.6) million in the fourth
quarter, EUR 124.5 (171.2) million in full year.
- Full-year profit after taxes EUR 87.3 (136.4) million.
- Fourth-quarter EPS EUR 0.39 (0.62), full-year EPS EUR 1.15
(1.73)
Discontinued operations and total
- Net profit from discontinued operations EUR 157.9 million in
the fourth quarter including a capital gain of EUR 156.0 million
- Fourth-quarter EPS in total EUR 2.52 (0.64), full-year EPS EUR
3.25 (1.75)
- Dividend proposal EUR 1.20 (0.85)
General market overview
Market activity in IT services and solutions was high for the
whole of 2006. The drivers of demand were improvement in clients
customer service and new product introductions. Cost savings,
flexibility and business process efficiency did not, however,
diminish in importance. Competition in the IT sector is intense
and is getting more diverse. Prices were under pressure in the
commoditized services and in the areas where global sourcing has
higher traction.
In 2006 labour market activity increased clearly. General wage
inflation was maintained at a reasonable level, but recruitment of
experienced staff has turned difficult in some markets and new
recruitment is taking place at higher salary levels.
Development of customer industries
Growth in TietoEnators business areas varied substantially due to
different growth prospects in their respective customer
industries, acquisition and outsourcing activity and a diverse
pricing environment.
Market activity in the banking business was at a high level.
Strong customer demand attracted competition and prices in the
services business in some markets were under pressure. Growth in
TietoEnators banking solutions business was strong. Growth was
also high in partnership services, mainly in the Finnish insurance
sector. The UK banking business ended the year with growing net
sales and profit despite the challenges in early 2006. The German
banking operations were underperforming.
The latest joint venture in the insurance sector in Finland,
TietoEnator Esy, started operations at the beginning of 2006. The
joint venture company employs around 180 people. In January 2007
TietoEnator agreed to acquire Swedish Abaris AB, which specializes
in securities processing solutions. The company employs some 86
people in Sweden, Finland and Norway and its net sales in 2007 are
expected to amount to EUR 10 million. The acquisition was
effective as of January 2007.
Cost cutting and flexibility remained the main investment drivers
for telecom operators, equipment vendors and media companies in
Europe. This means that price pressure and outsourcing
opportunities are common in the sector. However, new potential
business models were emerging based on the common value chain of
the telecom and media sectors. TietoEnators Telecom & Media
business area will put further efforts on creating those business
models as well as working with its global sourcing capacity.
At the end of the second quarter TietoEnator and Siemens signed an
agreement to deepen their co-operation and to transfer to
TietoEnator Siemens Communications R&Ds switching and migration
to next-generation networks. The transition meant that around 250
employees from Siemens moved to TietoEnator Telecom & Media at the
beginning of July. The commitment for the whole contract period is
approximately EUR 100 million.
In June TietoEnator agreed to acquire 51% of the share capital in
Polish RTS Networks Ltd, a provider of telecom R&D services. The
main customer of RTS Networks is Siemens Communications. The
acquisition strengthened TietoEnators R&D expertise and added 110
employees. RTS Networks was consolidated from the beginning of
July 2006. In January 2007 TietoEnator recruited 140 people
formerly working for the Taiwan based BenQs R&D centre in
Wroclaw, southern Poland. The people have previously performed
software development and system testing for BenQ in Germany and
will now gradually take assignments for TietoEnators customers in
the telecom R&D area.
At the beginning of February 2007 TietoEnator took over Ericssons
design centre in Aarhus, Denmark, with 86 employees. The design
centre supplies IP software building blocks used in Ericsson
products. Expected net sales for the unit in 2007 are EUR 10
million.
In the Finnish government sector overall market demand was good
and TietoEnators market position is strong. The purchase
processes of the Finnish government are being centralized, which
has created price pressure. In May Tietokarhu Oy, the joint
venture between TietoEnator and the Finnish Government, revised
its service agreement with The Finnish National Board of Taxes.
The fixed-term service agreement, due to expire in 2016, includes
the development and maintenance of the complex core IT systems
underlying Finnish taxation. Its annual impact on TietoEnators
net sales will remain unchanged and the total value for the
remaining term of the agreement is estimated at EUR 300 million.
In October TietoEnator sold its government business operations in
Sweden, Denmark and Norway to the Icelandic telecommunications
company Síminn and the management of TietoEnators government
business in Denmark. These operations were not part of
TietoEnators core business and investing in them would not have
been according to the companys strategy of focused
internationalization in banking, forest, healthcare and telecom.
In the first ten months of 2006 the divested businesses generated
EUR 50 million of net sales and a slightly positive operating
profit for the Group. At the time of the divestment they employed
about 420 people.
In the manufacturing sector the market situation continued to be
good,. Customers ERP implementations and enhancements were
providing the biggest growth potential. In the retail sector
customers continued to pursue cost-saving programmes with a focus
on IT-enabled standardization and automation.
In the healthcare business demand for new harmonized systems was
very strong. The migration to new digital business processes in
hospitals is complicated and demands on the functionality of
software are high. This has resulted in postponements of big
implementation projects. TietoEnator made a number of smaller
acquisitions during 2006 in the healthcare area in Germany, Sweden
and Finland. In January 2007 TietoEnator closed the acquisition of
Provisio AB in Sweden. The company specializes in operating room
information systems and has seven employees in Lund.
In the forest sector demand was good in Central Europe and
improved in North America. In the Nordic countries customers were
still focused on getting results out of their cost-saving
programmes. In the utilities sector investments are mainly driven
by the need to consolidate or renew systems in the billing and
self-service areas. The oil and gas business is performing well
and its customers are focusing on the standardization and
auditability of systems.
In August TietoEnator strengthened its capabilities to serve
utilities in Northern Europe by acquiring the business of TOPAS
Consulting GmbH in Germany.The acquisition expanded TietoEnators
customer base with European utilities and included 74 SAP experts
located in Dortmund and Mannheim.
In the processing and network services the market was very active
in 2006. Unlike some years ago the market consisted of a large
number of smaller outsourcing cases rather than big one-off
transactions.
In August TietoEnator and Stora Enso agreed on TietoEnator
hosting StoraEnsos ICT infrastructure in all of the countries in
which it operates. The agreement is an extension of services in
Finland to cover Stora Ensos ICT infrastructure globally. The
service contract is for five years and is worth EUR 20 million. In
January 2007 TietoEnator and ÅF Group, a Swedish technical
consulting company, agreed on TietoEnator taking over ÅF Groups
internal IT operations. TietoEnator will provide operational IT
services and the technical infrastructure for the ÅF Group. Around
20 people will move to TietoEnator. The contract starting from
February 2007 will run for three years and has a value of around
EUR 12 million.
In December TietoEnator sold its holding in Personec Group to
Nordic Capital. Personec is the largest supplier of business
support, especially payroll, HR and financial management services
and solutions in the Nordic countries. The transaction was a
natural step that concluded the process that was started in July
2004, when TietoEnator took Nordic Capital as an investor to
develop the business of Personec. Personec employs close to 1 300
experts and had net sales of EUR 129 million in 2005. As a result
of the divestment Personec is treated as a discontinued operation
in TietoEnators financial statements for 2006.
Demand for digitalization services and self-service concepts grew
constantly during the year, which demonstrates the added value of
offerings where TietoEnators industry-specific expertise is
combined with an understanding of the possibilities that advanced
technology can offer.
In 2006 TietoEnator gave priority to defining and refining the
companys offerings, the development of services that combine the
companys strengths across its business units and marketing and
sales to the European markets.
Net sales
Fourth-quarter net sales for continuing operations grew 5% to EUR
455.5 (432.1) million. Organic growth was 6%. Foreign exchange
rates did not impact growth.
Full-year net sales for continuing operations grew 5% to EUR 1
646.5 (1 570.4) million. Organic growth was 2%. Foreign exchange
rates did not impact growth.
Q4 net Q4 EBIT % Q4 FY
sales excl. organic organic
growth % capital growth % growth %
gains
Banking & Insurance 17 7.7 18 13
Telecom & Media 1 8.8 -2 -5
Government, Manufacturing -10 9.9 6 4
& Retail
Healthcare & Welfare 6 18.2 3 6
Forest & Energy 6 4.9 3 -1
Processing & Network 12 9.2 12 8
Banking & Insurance returned to strong growth in the fourth
quarter and the full-year growth was at a very high level. Telecom
& Medias low growth is mainly due to lower prices and a lower
contribution from performance-based rewards from partnership
customers, which contributed only EUR 0.9 (4) million in the
fourth quarter and EUR 2.0 (10) million in the full year.
Government, Manufacturing & Retails growth was impacted by
divestments.
Full-year growth was 21% in Germany, 4% in Norway, 3% in Finland
and -3% in Sweden. In Sweden the decline was mostly due to Telecom
& Media.
The banking and insurance sector increased its share to 23% (19)
of Group net sales for the full year with the help of
acquisitions, good organic growth in the Banking & Insurance
business area and extended contracts in Processing & Network.
Telecom and medias share fell to 31% (35) of sales. The public
sector contributed 18% (18), the forest sector 5% (6) and the
energy sector 5% (5) of net sales.
TietoEnator adopted IFRIC 4 (Financial Reporting Interpretations
Committees interpretation on accounting of leasing contracts)
from the beginning of 2006. As a result a total of EUR 5.4 million
of invoicing from customers was recognized as leasing contracts
and not as net sales, mostly in Processing & Network in the full
year. The interpretation has been applied retroactively for 2005
and in the full year 2005 the impact was EUR 5.1 million. IFRIC 4
also lowered depreciation by EUR 5.1 (4.6) million and increased
the Groups interest income by EUR 0.3 (0.5) million.
The order backlog, which comprises only services ordered with
binding contracts, amounted to EUR 1 244.7 million (1 073.0) at
the end of the period, 16% higher than a year before. Processing &
Networks share of the order backlog is about 34%. Approximately
51% (58) of the backlog is expected to be invoiced in 2007.
Profitability
Fourth-quarter operating profit for continuing operations amounted
to EUR 43.9 (50.1) million representing a margin of 9.6% (11.6).
Excluding capital gains the operating profit totalled EUR 36.6
(48.3) million representing a margin of 8.0% (11.2). Capital gains
of EUR 7.3 million in the quarter were mainly generated by the
divestment of the government businesses in Denmark, Norway and
Sweden.
Project overruns burdened the profitability of Forest & Energy by
EUR 2.3 million, of Telecom & Media by EUR 2.5 million and of
Government, Manufacturing & Retail by EUR 1.3 million. In 2005 the
costs for project overruns were not material for the Group. The
company is in the process of strengthening the risk management and
legal control of projects and project follow-up.
Restructuring expenses were EUR 0.6 million, all in Telecom &
Media. In the fourth quarter of 2005 TietoEnator had around EUR 3
million of restructuring and other related costs. Telecom &
Medias operating profit also included a negative value adjustment
of EUR 1.2 million in associated companies shares belonging to
that business area.
Telecom & Medias performance-based rewards from partnership
customers contributed less than a year ago. Their impact was EUR
0.9 (4) million in the fourth quarter and EUR 2.0 (9) million in
the full year. Healthcare & Welfare did not reach its normal
fourth quarter margin peak due to projects that did not start
according to plan.
Full-year operating profit totalled EUR 127.7 (169.1) million.
Capital gains were EUR 15.7 (19.0) million and operating profit
excluding capital gains was EUR 112.0 (150.1) million. This
represented a margin of 6.8% (9.6). Full-year operating profit was
burdened by restructuring costs of EUR 12.4 million (about EUR 16
million in 2005) and costs for underperforming projects of EUR
22.6 million (not material in 2005).
The full-year operating margin before capital gains in
TietoEnators main markets reached 15% (16) in Finland and 2% (8)
in Sweden for the full year. Profitability in Finland was
maintained on a very good level despite substantially lower
rewards from partnership customers in the telecom business. The
profitability decline in Sweden is explained by restructuring and
the weak performance of Telecom & Media and Forest & Energy. There
was a clear improvement in the Swedish profitability towards the
year-end. The average profitability in countries outside Finland
and Sweden was positive and only slightly lower than in 2005.
Operating profit (EBIT) included EUR 2.4 (1.9) million from
amortization on allocated intangible assets in the fourth quarter
and EUR 8.8 (6.9) million in the full year.
Costs for share-based payments of EUR 0.8 (1.0) million in the
fourth quarter, and EUR 4.0 (2.9) million in the full year, were
included in employee benefit expenses.
Net financial expenses were at EUR 1.8 (positive 1.5) million in
the fourth quarter. Net interest expenses were EUR 1.6 (positive
0.7) million and one-time net losses from foreign exchange
transactions EUR 0.4 (net gains 0.6) million.
Fourth quarter earnings per share from continuing operations
totalled EUR 0.39 (0.62). EPS was affected by capital gains of EUR
0.02 (0.02) per share, amortization on intangibles of EUR 0.03
(0.03) per share and stock option expenses of EUR 0.01 (0.01) per
share. Excluding these items EPS amounted to EUR 0.40 (0.64).
Net profit from discontinued operations amounted to EUR 157.9
(3.1) million in the fourth quarter consisting of EUR 1.9 million
of Personecs net profit and EUR 156.0 million capital gain from
the divestment of Personec.
Total earnings per share (EPS) in the fourth quarter totalled EUR
2.52 (0.64).
Full-year EPS from continuing operations totalled EUR 1.15 (1.73)
and for discontinued operations EUR 2.10 (0.02). Total EPS for
2006 amounted to EUR 3.25 (1.75).
The return on capital employed (ROCE) was 18.7% and the return on
shareholders equity (ROE) 15.5%.
Financing and investments
Cash flow from continuing operations amounted to EUR 109.3 (198.9)
million in the full year. Operating profit contributed EUR 174.7
(210.2) million and the increase in working capital consumed EUR
37.8 (-5.9) million. Tax payments were higher at EUR 24.8 (17.3)
million. The increase is mostly due to the payment of previously
recognized deferred taxes in Sweden. The deferred tax asset was
further employed in Finland. The cash flow from discontinued
operations amounted to EUR 3.7 (1.9) million.
Payments for new acquisitions in continuing operations totalled
EUR 24.6 million. Divestments in continuing operations generated
cash totalling EUR 30.4 million. Cash used in investing
activities from discontinued operations includes around EUR 25
million that Personec paid for Manpowers payroll and the Human
Resources outsourcing business in Sweden and the payment for the
disposal of the shares in Personec amounted to EUR 22 million.
The total dividend payment of EUR 64.5 million was made in April
and altogether EUR 52.3 million was used for the share repurchase
programmes in May and September.
The divestment of Personec in December reduced consolidated
interest bearing debt and added a substantial amount of cash. The
equity ratio was 48.4% (39.8). Gearing decreased to 14.9% (39.1).
Net debt totalled EUR 93.4 (199.9) million including EUR 231.5
million in interest-bearing debt, EUR 13.5 million in finance
lease liabilities, EUR 12.5 million in finance lease receivables
and EUR 138.9 million in cash and cash equivalents.
In November TietoEnator signed an agreement on a five-year EUR 250
million syndicated revolving credit facility, which was not in use
at the end of 2006. In December TietoEnator issued a seven-year
private placement bond of EUR 100 million. The bond has a fixed
coupon interest rate of 4.34% and was listed on the Helsinki Stock
Exchange at the end of 2006. The purpose of these new debt
instruments is to rearrange TietoEnators external financing by
extending the maturity profile of the companys debt and
guaranteeing financing for a longer period of time.
The other interest-bearing debt consists of a seven-year EUR 50
million private placement bond and usage of EUR 76 million from
the short-term commercial paper programme. The three-year EUR 50
million bilateral credit facility was repaid during the fourth
quarter. At the end of the year unused credit facilities
totalled about EUR 420 million.
Accrual-based investments totalled EUR 77.9 (267.3) million for
the period. Capital expenditure including financial leasing
accounted for EUR 50.9 (77.8) million, investments in business
activities for EUR 5.5 (7.6) million, and investments in
subsidiary and associated company shares for EUR 21.5 (181.9)
million.
Personnel
The number of full-time employees for continuing operations
totalled 14 597 (13 968) at the end of 2006. The net recruitment
took place mostly in low-cost countries. Acquisitions and new
outsourcing contracts added around 974 employees during the year.
Recruitment was stronger than in the year before: a total of 2 096
(1 599) employees were hired. The highest recruitment numbers were
in Finland, the Czech Republic, Sweden and Latvia.
In total 280 employees were affected by personnel adjustments
during the year 2006 mostly in Telecom & Media, Banking &
Insurance and Processing & Network.
Employee turnover has continued to increase. For 2006 employee
turnover totalled 9.0% (7.1).
The average number of employees was 14 414 (13 213) in 2006.
At the end of 2006 the number of people in low-cost countries
totalled about 2 000 or 13% of the total headcount. The
recruitment activity in Poland added about 140 people in January
2007. TietoEnator recognizes the need to speed up the growth of
its low-cost resources and has made short-term and long-term plans
to guarantee that the optimum mix of resources is reached as soon
as possible. Short-term plans include the scale-up of existing
sites in the Czech Republic, Poland and India and immediate
readiness to open new sites in Eastern Europe. Long-term plans
imply opening new sites in existing or additional countries in
Eastern Europe and Asia.
TietoEnators global sourcing strategy is based on a combination
of European and Asian sites. European customers are more
interested in services provided from European sites. Another
benefit of the strategy is lower risk through less dependence on
one particular country and market.
Board of Directors and management
TietoEnator Corporations Annual General Meeting on 23 March 2006
re-elected the previous Board members: Mariana Burenstam Linder,
Bengt Halse, Kalevi Kontinen, Matti Lehti, Olli Martikainen, Olli
Riikkala and Anders Ullberg.
TietoEnators personnel elected Jari Länsivuori and Elisabeth
Eriksson to be representatives of the personnel organisations on
the TietoEnator Board of Directors in April. In November Anders
Ericsson was elected to replace Elisabeth Ericsson.
In February Mr Matti Viljo was appointed Senior Vice President of
the Banking & Insurance business area from April 2006. In March Mr
Juhani Strömberg, Senior Vice President, Strategic Offering
decided to leave the company from 1 April 2006.
Shares and options
The outstanding number of shares excluding the shares in the
companys possession was 73 596 462 at the end of 2006.
The 2 903 860 shares the company had repurchased in 2005 were
cancelled in April. A total of 500 000 shares for EUR 12.4 million
were repurchased in April for the three-year share-based incentive
plan. In July TietoEnators Board of Directors decided to start a
new share repurchase programme totalling EUR 40 million to develop
the companys long-term capital structure. A total of 1 745 000
shares were purchased in September at an average price of EUR
22.86. Pursuant to the Finnish Companies Act TietoEnators Board
of Directors decided to cancel all the shares that were acquired
by the company in September. The shares cancelled represented 2.2%
of the total number of shares and voting rights in the company.
TietoEnator continues to have 500 000 shares in its possession
which represent 0.6% of all the shares and voting power.
The subscription period for the warrants 2000 ended on 31 May
2006. No shares were subscribed with these warrants.
The Annual General Meeting approved a new stock option programme
for TietoEnators key employees with a maximum of 1 800 000
options each entitling to subscribe for one share. In March the
Board of Directors decided to allocate approximately 500 000
options (2006 A) to about 300 key employees. The subscription
period of the 2006 A options is 1 March 2009 31 March 2011. In
December the Board of Directors decided to allocate approximately
600 000 stock options (2006 B) to about 300 key employees. The
subscription period of the 2006 B options is 1 March 2010 31
March 2012.
In December TietoEnators Board approved 2007 performance criteria
for the three-year share-based incentive plan. The allocation
regarding the year 2007 requires improvement in the Groups
earnings per share compared with 2006. The maximum allocation
requires 30% improvement. The plans performance targets for 2006
were not met and thus there is no share allocation from the plan
in 2007.
Full dilution (assuming all options were exercised fully) amounted
to 2.7% compared to 6.4% at the end of 2005.
The Board has not exercised its authorizations to issue share and
option rights or raise convertible bond loans during the period.
Dividend proposal
Consistent with TietoEnators dividend policy the Board of
Directors is proposing a dividend of EUR 1.20 (0.85) per share for
the year 2006. EUR 0.66 of the dividend relates to capital gains
and should be considered extraordinary.
Some items affecting 2007
The net of acquisitions and divestments finalized up to this date
is expected to have about -1% impact on net sales for the full
year 2007.
TietoEnator expects amortization of intangible assets of about EUR
10 (8.8) million and stock option expenses at around EUR 2 (4.0)
million. Costs related to the share-based incentive programme
depend on the companys performance in 2007 and are currently
expected to amount to a maximum of about EUR 5 (0) million. These
are included in the Groups operating profit.
Profit 2007 programme launched
TietoEnator has launched a programme called Profit 2007 to
improve its business performance. The programme includes plans to
rapidly cut costs and divest or restructure loss-making
businesses.
Prospects for 2007
TietoEnator expects the general IT market to stay active in 2007.
On average prices are expected to stay roughly in line with 2006
levels. TietoEnator will continue to invest in its low-cost sites
and international expansion. The actions planned to be taken as
part of the Profit 2007 programme will incur costs before
benefits can be realized.
TietoEnator expects its full-year organic growth in 2007 to be in
line with the 2006 level of 2%. The operating profit of the
underlying business is expected to exceed the level of 2006 (EUR
124 million). The operating profit of the underlying business does
not include potential capital gains and restructuring expenses.
TietoEnators Board of Directors will review the companys long-
term financial targets during 2007.
Financial calendar in 2007
Annual Review and Financial Review 2006 in pdf in week beginning
of 12 February 2006
Annual Review and Financial Review 2006 printed 5 March
Annual General Meeting on 22 March
Ex-dividend date on 23 March
Dividend record date on 27 March
First date of dividend payment on 12 April
Interim Report January March 2007 on 27 April
Interim Report January June 2007 on 20 July
Interim Report January September 2007 on 26 October
The accounting policies adopted are consistent with those of the
annual financial statements for the year ended 31 December 2005
and as described in the annual financial statements. All changes
in standards, amendments to standards and interpretations have
been applied, but of these only IFRIC 4 is relevant for the Group.
The figures in this report are audited.
Key figures 2006 2005 2006 2006 200 200 200
6 6 5
10- 10-12 7-9 4-6 1-3 1- 1-
12 12 12
Earnings per share, EUR
- basic 2.52 0.64 0.26 0.23 0.2 3.2 1.7
9 5 5
- diluted 2.52 0.64 0.26 0.23 0.2 3.2 1.7
8 5 5
- basic from continuing 0.39 0.62 0.26 0.24 0.2 1.1 1.7
operations 7 5 3
- basic from discontinuing 2.13 0.02 0.00 - 0.0 2.1 0.0
operations 0.01 2 0 2
Earnings per share from 0.40 0.64 0.31 0.23 0.2 1.1 1.6
continuing operations, EUR 4 8 4
a)
Equity per share, EUR 5.98 6.10 5.9 8.5 6.6
7 1 0
Return on equity rolling 12 24.0 22.8 27. 15. 27.
month, % 6 5 3
Return on capital employed 20.9 21.0 28. 18. 29.
rolling 12 month, % 8 7 7
Equity ratio % 33.3 35.0 34. 48. 39.
7 4 8
Net interest-bearing 354. 283. 198 93. 199
liabilities, EUR million 6 0 .6 4 .9
Gearing, % 80.4 61.6 43. 14. 39.
9 9 1
Investments in continuing 27.3 21.5 6.1 b 20.0 24. 77. 267
operations, EUR million ) 5 9 .3
a) Excluding goodwill impairments, amortisation on allocated
intangible assets from acquisitions, stock option expenses and one-
time capital gains.
b) During the third quarter some of the capital expenditures in
Jan-June 2006 have been defined as customer dedicated assets
according to IFRIC 4 and are now reported as loan receivables.
Income statement, EUR 2006 2005 2006 2005 chang
million e
10- 10-12 1-12 1-12 %
12
Continuing operations
Net sales 455. 432.1 1 1 5
5 646.5 570.4
Other operating income 10.3 3.1 25.1 28.8 -13
Employee benefit expenses 248. 235.4 938.5 868.3 8
7
Depreciation and 15.8 13.8 59.4 56.9 4
amortization
Impairment of goodwill - - - -
Other operating expenses 157. 135.9 546.2 505.1 8
3
Share of associated -0.1 0.0 0.2 0.2 0
companies result
Operating profit (EBIT) 43.9 50.1 127.7 169.1 -24
Net interest expenses -1.6 0.6 -2.1 2.1 -200
Net exchange losses/gains -0.1 0.6 -0.6 0.2 -400
Other financial income and 0.0 0.3 -0.5 -0.2 150
expenses
Profit before taxes 42.2 51.6 124.5 171.2 -27
Income taxes - -3.9 -37.2 -34.8 7
13.2
Net profit for the period 29.0 47.7 87.3 136.4 -36
from continuing operations
Discontinued operations
Net profit for the period 157. 3.1 159.7 1.6
from discontinued operations 9
Net profit for the period 186. 50.8 247.0 138.0 79
9
Net profit for the period
attributable to
Shareholders of the 185. 49.0 243. 136.3
parent company 5 9
Minority interst in 0.2 0.6 1.0 1.3
continuing operations
Minority interest in 1.2 1.2 2.1 0.4
discontinued operations
186. 50.8 247. 138.0
9 0
Earnings attributable to the shareholders of the parent company
per share, EUR
Basic 2.52 0.64 3.25 1.75 86
Diluted 2.52 0.64 3.25 1.75 86
Basic from continuing 0.39 0.62 1.15 1.73 -34
operations
Basic from discontinued 2.13 0.02 2.10 0.02
operations
Employee benefit expenses include rental payments on company cars
and non-statutory
employee benefits, such as meals, healthcare and leisure time
activities.
The result-based bonuses were EUR 15.7 million (19.0 previous
year) and the stock option expenses (share based payments) were
EUR 4.0 million (2.9).
Number of shares
2006 2006 2006 2006 2006 2005
10-12 7-9 4-6 1-3 1-12 10-12
Outstanding shares, end of
period
Basic 73 596 73 596 75 341 75 840 73 596 75 839
462 462 462 212 462 462
Diluted 73 657 73 596 75 341 76 228 73 657 76 142
628 462 462 104 628 318
Outstanding shares, average
Basic 73 596 74 910 75 532 75 840 74 963 76 305
462 484 805 120 658 323
Diluted 73 596 74 910 75 612 76 147 74 998 76 541
462 484 910 920 072 172
Company's possession of its own shares
End of 2 245 2 245 500 000 2 903 2 245 2 903
period 000 000 860 000 860
Average 2 245 930 978 594 887 2 903 1 664 2 437
000 860 855 008
Balance sheet, EUR million 2006 2005 chang
e
31 Dec 31 %
Dec
Goodwill 448.4 436.9 3
Other intangible assets 82.6 73.9 12
Property, plant and 87.9 100.6 -13
equipment
Deferred tax assets 75.2 98.3 -23
Investments in associated
companies 2.3 5.0 -54
Other non-current assets 1.4 2.0 -30
Total non-current assets 697.8 716.7 -3
Trade and other receivables 503.0 472.7 6
Current income tax 22.3 11.9 87
receivables
Interest-bearing current 12.7 10.8 18
assets
Cash and cash equivalents 138.9 99.9 39
Total current assets 676.9 595.3 14
Total assets 1 1312. 5
374.7 0
Share capital, share issue
premiums and other reserves 144.6 141.4 2
Retained earnings 477.8 347.3 38
Parent shareholders equity 622.4 488.7 27
Minority interest 4.0 12.2 -67
Total Equity 626.4 500.9 25
Finance lease liability 13.5 22.2 -39
Shareholders' loan 0.8 37.0
Other interest-bearing loans 153.6 106.0 45
Deferred tax liabilities 20.0 23.3 -14
Pension obligations 46.4 53.4 -13
Provisions 3.4 9.6 -65
Other non-current 3.2 1.1 191
liabilities
Total non-current 240.9 252.6 -5
liabilities
Trade and other payables 410.6 408.5 1
Current income tax 19.7 4.7 319
liabilities
Interest-bearing loans 77.1 145.3 -47
Total current liabilities 507.4 558.5 -9
Total equity and liabilities 1 1312. 5
374.7 0
Deferred tax assets end of December 2006 include the remaining EUR
36 million, which rose from the loss incurred in the parent
company related to the intra-group transaction carried out in
April 2004.
The increase in pension obligations during third quarter is
related to an outsourcing agreement
and a corresponding receivable is included in other receivables.
Net working capital in the balance 2006 2005 change
sheet, EUR million
31 31 %
Dec Dec
Accounts receivable 321.3 307.1 5
Other working capital receivables 181.7 165.5 10
Working capital receivables included in 503.0 472.6 6
assets
Operative accruals 215.6 208.0 4
Other working capital liabilities 192.2 178.5 8
Pension obligations and provisions 49.7 63.0 -21
Working capital liabilities included in 457.5 449.5 2
current liabilities
Net working capital in the balance sheet 45.5 23.1 97
The change in net working capital in the balance sheet does not
equal to that in the cash flow
due to acquisitions and disposals.
Cash flow, EUR million 2006 2005 200 2006 200 2006 2005
6 6
10- 10- 7-9 4-6 1-3 1-12 1-12
12 12
Cash flow from operations
Operating profit 43.9 51.1 27. 26.3 29. 127. 172.
7 8 7 2
Adjustments to operating
profit
Depreciation and 15.9 12.7 14. 14.9 14. 59.4 56.2
amortisation 3 3
Profit/loss on sale of -7.1 -1.4 - -3.6 - - -
fixed assets and shares 0.3 4.7 15.7 20.9
Share of associated 0.1 0.0 - 0.0 - -0.2 -0.2
companies' result 0.1 0.2
Other adjustments 0.5 1.1 1.0 1.2 0.8 3.5 2.9
Change in net working 17.9 14.6 - -8.1 3.2 - 5.9
capital 50. 37.8
8
Cash generated from 71.2 78.1 - 30.7 43. 136. 216.
continuing operations 8.2 2 9 1
Net financial items 0.9 2.1 - -0.4 - -2.8 0.1
2.4 0.9
Income taxes paid -3.8 -3.4 - -4.0 - - -
5.0 12. 24.8 17.3
0
Net cash flow from continuing 68.3 76.8 - 26.3 30. 109. 198.
operations 15. 3 3 9
6
Net cash flow from 2.0 2.3 - 1.2 7.2 3.7 1.9
discontinued operations 6.7
Total net cash flow from 70.3 79.1 - 27.5 37. 113. 200.
operations 22. 5 0 8
3
Cash flow from investing
activities
Acquisition of Group
companies and business
operations, net of cash -7.8 - - - - - -
acquired 10.4 3.9 12.3 0.6 24.6 161.
5
Capital expenditures - - - - - - -
16.6 19.7 3.2 15.2 15. 50.6 75.8
6
Disposal of business
operations
and associated company 21.0 -0.2 0.0 4.2 5.2 30.4 25.0
Other investing activities 1.7 -0.1 - -0.4 0.8 1.6 1.8
0.5
Net cash used in investing
activities from
- continuing operations -1.7 - - - - - -
30.4 7.6 23.7 10. 43.2 210.
2 5
- discontinued operations 21.0 -0.1 - -0.2 - -4.2 -2.5
0.4 24.
6
Total net cash used in 19.3 - - - - - -
investing activities 30.5 8.0 23.9 34. 47.4 213.
8 0
Cash flow from financing
activites
Dividends and donations 0.1 0.0 0.0 - - - -
64.7 1.2 65.8 79.9
Repurchase of own shares 0.0 - - - 0.0 - -
42.0 39. 12.4 52.3 80.0
9
Proceeds from finance lease 0.5 0.0 0.1 0.0 0.0 0.6 16.5
liabilities
Payment of finance lease -2.0 -1.5 - -2.4 - -9.3 -6.8
liabilities 2.2 2.7
Change in interest-bearing - 24.3 56. 87.2 - 41.6 163.
liabilities 74.2 4 27. 8
8
Net cash used in other 2.1 -8.1 - -1.1 1.7 -4.3 5.6
financing activities 7.0
Net cash used in financing
activities from
- continuing operations - - 7.4 6.6 - - 19.2
73.5 27.3 30. 89.5
0
- discontined operations 38.1 0.0 0.0 0.0 24. 63.0 1.4
9
Total net cash used in - - 7.4 6.6 - - 20.6
financing activities 35.4 27.3 5.1 26.5
Change in cash and cash 54.2 21.3 - 10.2 - 39.1 8.4
equivalents 22. 2.4
9
Cash and cash equivalents at - - - - - - -
beginning of period 84.6 78.5 107 97.1 99. 99.8 90.7
.3 8
Foreign exchange differences -0.1 0.0 - 0.0 0.3 0.0 -0.7
0.2
Cash and cash equivalents at 138. 99.8 84. 107. 97. 138. 99.8
end of period 9 6 3 1 9
54.2 21.3 - 10.2 - 39.1 8.4
22. 2.4
9
Statement of changes in Shareholders equity
Parent shareholders equity Minori Total
ty
intere equit
st y
Share Trans- Reta
issue i-
premiums lation ned
Shar and Own diffe- ear-
e other
EUR million capi shar rences ning
tal reserves es s
Balance at 31 Dec 82.9 94.8 -6.0 330. 9.5 511.4
2004 2
Translation -1.3 -2.2 6.0 2.5
difference
Minority interest 1.0 1.0
Cancellation of own -4.2 4.2 0.0
shares
Transfer between
restricted
and non-restricted -35.0 35.0 0.0
equity
Share based
payments
recognised against 3.0 3.0
equity
Dividend - -78.8
78.8
Own shares - 0.0 -80.0
purchased 80.0
Other changes 3.8 3.8
Net profit for the 136. 1.7 138.0
period 3
At 31 Dec 2005 78.7 62.7 - -8.2 435. 12.2 500.9
80.0 5
Balance at 31 Dec 78.7 62.7 - -8.2 435. 12.2 500.9
2005 80.0 5
Translation 2.3 1.6 3.9
difference
Minority interest -11.3 -11.3
Cancellation of own -2.9 2.9 80.0 - 0.0
shares 80.0
Transfer between
restricted
and non-restricted 0.9 -0.9 0.0
equity
Share based
payments
recognised against 4.0 4.0
equity
Dividend - -64.5
64.5
Own shares - -52.3
purchased 52.3
Exercise of share 0.0
options
Other changes -1.3 -1.3
Net profit for the 243. 3.1 247.0
period 9
At 31 Dec 2006 75.8 68.8 - -6.6 536. 4.0 626.4
52.3 7
SEGMENT INFORMATION
Net sales by business area, EUR million (primary segment)
2006 2005 Chang 2006 2005 Chang
e e
Continuing operations 10- 10-12 % 1-12 1-12 %
12
Banking & Insurance 78 67 17 284 237 20
Telecom & Media 152 150 1 542 544 0
Government, Manufacturing & 58 65 -10 236 239 -1
Retail
Healthcare & Welfare 44 42 6 144 131 10
Forest & Energy 45 42 6 161 160 0
Processing & Network 101 90 12 374 345 8
Group elimination incl other -24 -25 -4 -95 -85 11
Group total 455 432 5 1646 1570 5
Country Sales, EUR million (secondary segment)
2006 Chang Share 2005 Share Chang
e e
Continuing operations 1-12 % % 1-12 % %
Finland 751 3 46 731 47 0
Sweden 454 -3 28 469 30 -1
Germany 124 21 8 102 7 181
Norway 81 4 5 78 5 14
Denmark 51 -1 3 52 3 31
Great Britain 48 48 3 32 2 355
Netherlands 25 61 2 16 1 47
France 18 -14 1 21 1 -
Italy 17 - 1 0 0 -
Other 77 11 5 70 4 24
Group total 1 5 100 1 570 100 10
646
Net sales by industry segment, EUR million
2006 Chang Share 2005 Share Chang
e e
Continuing operations 1-12 % % 1-12 % %
Banking and insurance 374 23 23 303 19 16
Public 292 4 18 281 18 6
Telecom and media 515 -6 31 546 35 20
Forest 88 -1 5 88 6 2
Energy 79 6 5 75 5 12
Manufacturing 89 11 5 80 5 9
Retail & Logistics 88 -9 5 97 6 -17
Other 122 21 7 101 6 -8
Group total 1646 5 100 1570 100 10
Operating profit (EBIT), EUR million
2006 2005 Chang 2006 2005 Chang
e e
Continuing operations 10- 10-12 % 1-12 1-12 %
12
Banking & Insurance 6.1 5.8 4.5 20.1 24.5 -17.8
Telecom & Media 12.2 24.9 -50.8 37.5 71.3 -47.4
Government, Manufacturing & 14.3 5.5 158.3 31.2 22.8 37.1
Retail
Healthcare & Welfare 8.1 9.6 -15.6 12.8 19.8 -35.1
Forest & Energy 2.2 4.8 -54.6 7.8 17.4 -55.0
Processing & Network 9.3 6.2 49.5 39.7 28.6 38.6
Business areas 52.1 56.8 -8.2 149. 184.4 -19.1
2
Group operations incl other -8.2 -7.5 -8.9 - -24.0 -4.4
25.0
Associated companies outside 0.0 0.0 100.0 0.0 -0.1 100.0
BA
Group capital gain 0.0 0.7 - 3.5 8.7 -60.3
100.2
Operating profit (EBIT) 43.9 50.1 -12.2 127. 169.1 -24.4
7
Operating profit, EUR million
excl capital gains and impairment losses
2006 2005 Chang 2006 2005 Chang
e e
Continuing operations 10- 10-12 % 1-12 1-12 %
12
Banking & Insurance 6.1 5.8 4.5 20.1 23.3 -13.7
Telecom & Media 13.4 24.9 -46.0 38.7 70.2 -44.8
Government, Manufacturing & 5.8 5.5 4.2 18.0 21.6 -16.9
Retail
Healthcare & Welfare 8.1 9.6 -15.6 12.8 16.9 -24.1
Forest & Energy 2.2 3.9 -43.5 7.8 13.5 -42.0
Processing & Network 9.3 6.2 49.5 39.5 28.6 37.9
Business areas 44.8 55.9 -19.8 137. 174.2 -21.3
0
Group operations incl other -8.2 -7.5 -8.9 - -24.0 -4.4
25.0
Associated companies outside 0.0 0.0 100.0 0.0 -0.1 100.0
BA
Operating profit (EBIT excl 36.6 48.3 -24.3 112. 150.1 -25.4
cap gain) 0
Operating margin (EBIT), % 2006 2005 Chang 2006 2005 Chang
e e
Continuing operations 10- 10-12 1-12 1-12
12
Banking & Insurance 7.7 8.7 -0.9 7.1 10.3 -3.2
Telecom & Media 8.0 16.5 -8.5 6.9 13.1 -6.2
Government, Manufacturing & 24.5 8.5 16.0 13.2 9.5 3.7
Retail
Healthcare & Welfare 18.2 22.9 -4.7 8.9 15.1 -6.2
Forest & Energy 4.9 11.4 -6.5 4.9 10.9 -6.0
Processing & Network 9.2 6.9 2.3 10.6 8.3 2.3
Business areas 11.4 13.2 -1.7 9.1 11.7 -2.7
Operating margin (EBIT) 9.6 11.6 -1.9 7.8 10.8 -3.0
Operating margin (EBIT) excl capital gains and impairment losses,
%
2006 2005 Chang 2006 2005 Chang
e e
Continuing operations 10- 10-12 1-12 1-12
12
Banking & Insurance 7.7 8.7 -0.9 7.1 9.8 -2.8
Telecom & Media 8.8 16.5 -7.7 7.2 12.9 -5.8
Government, Manufacturing & 9.9 8.5 1.4 7.6 9.1 -1.5
Retail
Healthcare & Welfare 18.2 22.9 -4.7 8.9 12.9 -4.0
Forest & Energy 4.9 9.2 -4.3 4.9 8.4 -3.5
Processing & Network 9.2 6.9 2.3 10.5 8.3 2.3
Business areas 9.8 12.9 -3.1 8.3 11.1 -2.8
Operating margin (EBIT), 8.0 11.2 -3.1 6.8 9.6 -2.8
excl capital gains and
impairment losses
Personnel
End of period Average
Continuing operations 2006 Chang Shar 2005 2006 2005
e e
By business area (primary 1-12 % % 1-12 1-12 1-12
segment)
Banking & Insurance 2 193 6 15 2 070 2 189 1 930
Telecom & Media 5 107 7 35 4 781 4 869 4 336
Government, Manufacturing & 1 532 - 23 10 1 997 1 904 1 982
Retail
Healthcare & Welfare 1 295 17 9 1 107 1 208 1 020
Forest & Energy 1 286 1 9 1 279 1 251 1 303
Processing & Network 1 966 - 1 13 1 977 1 979 2 028
Software Centres 709 122 5 319 518 183
Other Group Operations 507 16 3 437 496 430
Group total 14 4 100 13 14 414 13
597 968 213
End of period Average
Continuing operations 2006 Chang Shar 2005 2006 2005
e e
By country (secondary 1-12 % % 1-12 1-12 1-12
segment)
Finland 6 163 0 42 6 190 6 277 6 237
Sweden 3 239 - 9 22 3 552 3 380 3 538
Germany 1 342 59 9 845 1 062 836
Czech 769 80 5 427 597 296
Norway 742 - 11 5 830 851 798
Latvia 521 29 4 404 469 215
Great Britain 314 - 17 2 379 320 211
India 231 56 2 148 191 106
Denmark 221 - 36 2 347 343 341
Italy 176 - 18 1 215 187 36
Poland 153 - 1 0 73 0
France 114 - 2 1 116 107 124
Estonia 116 38 1 84 95 76
Lithuania 102 26 1 81 94 68
USA 71 - 7 0 76 73 87
Other 324 18 2 274 295 244
Group total 14 4 100 13 14 414 13
597 968 213
Total assets by business area, EUR million (primary segment)
2006 2005 Chang
e
Continuing operations 31 31 %
Dec Dec
Banking & Insurance 256. 228.4 12
0
Telecom & Media 414. 384.6 8
7
Government, Manufacturing & 64.1 73.0 -12
Retail
Healthcare & Welfare 93.5 85.7 9
Forest & Energy 112. 107.2 5
1
Processing & Network 187. 165.0 14
3
Group elimination - -28.1 21
34.0
Business areas 1 1 8
093. 015.9
9
Group Operation 280. 312.1 -10
9
Group total 1374 1 4
.7 328.0
Discontinuing operations, - -15.9 -
net impact
Total assets 1374 1 5
.7 312.0
Total liabilities by business area, EUR million (primary segment)
2006 2005 Chang
e
Continuing operations 31 31 %
Dec Dec
Banking & Insurance 93.2 86.5 8
Telecom & Media 166. 145.4 15
6
Government, Manufacturing & 39.2 36.7 7
Retail
Healthcare & Welfare 32.0 42.1 -24
Forest & Energy 52.3 51.0 3
Processing & Network 76.3 72.7 5
Group elimination - -3.5 793
31.0
Business areas 428. 431.0 -1
6
Group Operation 319. 275.3 16
7
Group total 748. 706.3 6
3
Discontinuing operations, - 104.8 -
net impact
Total liabilities 748. 811.1 -8
3
Segment assets by country, EUR million (secondary segment)
2006 2005 Chang
e
Continuing operations 31 31 %
Dec Dec
Finland 329. 363.1 -9
0
Sweden 317. 289.5 10
4
Norway 97.5 59.5 64
Germany 174. 114.4 53
6
Great Britain 99.1 89.5 11
Other 76.2 99.8 -24
Business areas 1 1 8
093. 015.9
9
Depreciation, EUR million 2006 2005 Chang 2006 2005 Chang
e e
Continuing operations 10-12 10-12 % 1-12 1-12 %
Processing & Network 8.6 7.7 12 31.5 2
31.4
whereof Finland 6.9 7.0 -2 27.0 -4
28.6
Sweden 1.2 0.6 114 3.8 2.2 74
Other countries 0.5 0.1 416 0.7 0.6 26
Other 4.8 4.3 11 19.2 0
18.6
Group total 13.4 12.0 12 50.7 1
50.0
Amortisation on allocated intangible assets from acquisitions, EUR
million
2006 2005 Chang 2006 2005 Chang
e e
Continuing operations 10-12 10-12 % 1-12 1-12 %
Telecom & Media 1.3 1.1 22 4.9 4.3 15
Other 1.1 0.9 23 3.8 2.6 44
Group total 2.4 1.9 23 8.7 6.9 26
No impairment losses have been recognised during 2006 and 2005.
Capital expenditure by business area, EUR million
2006 2005 Chang 2006 200 Chang
e 5 e
Continuing operations 10-12 10- % 1-12 1- %
12 12
Processing & Network 10.1 9.6 5 -35
35.3 54.
3
whereof Finland 8.3 8.4 -1 -57
22.1 51.
0
Sweden 1.8 1.2 50 300
13.2 3.3
Other countries 0.0 0.0 - 0.0 -
0.0
Other 6.8 1.5 353 -34
15.6 23.
5
Group total 16.9 52 -35
11.1 50.9 77.
8
Commitments and contingencies, EUR million
2006 2005
31 Dec 31 Dec change
%
For TietoEnator obligations
Pledges 0.0 0.8 -100
On behalf of associated companies
Guarantees 1.4 1.5 -6
Other TietoEnator obligations
Rent commitments due in one year 62.4 60.8 3
Rent commitments due in 1-5 years 174.3 173.5 0
Rent commitments due after 5 years 5.7 9.5 -40
Operating lease commitments due in one 7.2 8.9 -19
year
Operating lease commitments due in 1-5 7.0 8.3 -16
years
Operating lease commitments due after 5 0.0 0.6 -100
years
Other commitments *) 25.8 71.1 -64
Operating lease commitments are principally three-year lease
agreements that do not include buyout clauses.
*) Including EUR 19.3 (62.9 year 2005) million commitment mainly
for purchase of hardware.
Notional amounts of derivative financial 2006 2005
instruments, EUR million 31 Dec 31 Dec
Foreign exchange forward contracts 423.2 289.5
Interest rate swaps 2.0 2.0
Includes the gross amount of all notional values for contracts
that have not yet been settled or closed. The amount of notional
value outstanding is not necessarily a measure or indication of
market risk, as the exposure of certain contracts may be offset by
that of other contracts.
Includes the gross amount of all notional values for contracts
that have not yet been settled or closed. The amount of notional
value outstanding is not necessarily a measure or indication of
market risk, as the exposure of certain contracts may be offset by
that of other contracts.
Fair values of derivatives, EUR million
The net fair values of derivative 2006 2005
financial instruments at the
balance sheet date were: 31 Dec 31 Dec
Forward foreign exchange contracts -0.9 -0.9
Interest rate swaps -0.2 -0.1
Derivatives are used for hedging purposes only.
Major shareholders 31 December 2006
Shares %
1 Didner & Gerge Aktiefond 2 365 000 3.1%
2 Roburs fonder 1 546 200 2.0%
3 AMF Pensionsförsäkrings 1 522 700 2.0%
4 Afa Försäkring 1 353 295 1.8%
5 Svenska Litteratursällskapet i 1 319 000 1.7%
Finland
6 Tapiola 1 064 980 1.4%
7 Mutual Pension Insurance Company 1 002 510 1.3%
Ilmarinen
8 SEB fonder 996 383 1.3%
9 Nordea fonder 839 179 1.1%
1 The State Pension Funds 811 500 1.1%
0
Remaining Nominee registered 38 805 51.2%
317
Others 24 215 31.9%
398
Total 75 841 100.0%
462
Based on ownership records of the Finnish and Swedish central
security depositories.
TietoEnator executed two share buyback programmes during 2006 and
on the end of year TietoEnator posses 2 245 thousand own shares.
TIETOENATOR CORPORATION
For further information:
Åke Plyhm, Deputy CEO, TietoEnator, tel. +46 705 658 631,
ake.plyhm@tietoenator.com,
Timo Salmela, CFO, TietoEnator, tel. +358 9 8626 2213, +358 400
434 974, timo.salmela@tietoenator.com,
Päivi Lindqvist, EVP, Communications and Investor Relations,
TietoEnator, tel. +358 9 8626 3276, +358 40 708 5351,
paivi.lindqvist@tietoenator.com or
Paula Liimatta, IR Manager, TietoEnator, tel. +358 9 8626 3113,
+358 40 580 3521,
paula.liimatta@tietoenator.com
Press conference for analysts and media will be held in Helsinki,
Radisson SAS Royal Hotel, cabinet Finland, Runeberginkatu 2, at
9.00 am CET, (10.00 am EET, 8.00 am UK time).
The conference will be hosted in English by President and CEO
Pentti Heikkinen, Deputy CEO Åke Plyhm, CFO Timo Salmela, EVP
Communications and Investor Relations Päivi Lindqvist and Investor
Relations Manager Paula Liimatta.
The conference will be webcast and published live on the Internet
at TietoEnator's website www.tietoenator.com/presentations and
there will be a possibility to present questions on-line. An on-
demand video will be available after the conference.
Conference call starting at 3.00 pm CET, (4.00 pm EET, 2.00 pm UK
time) will also be available as live audio webcast on
www.tietoenator.com/presentations. The call will be hosted by Timo
Salmela and Päivi Lindqvist. Callers may access the conference
directly at the following telephone numbers: US callers: +1 617
213 8836, non-US callers: +44 20 7365 8426, code 'TietoEnator'.
Lines to be reserved ten minutes before start of conference call.
A replay will be available until 13 February 2007 in the following
numbers: US callers: +1 617 801 6888, non-US callers: +44 20 7365
8427, access code: 5810 2149. An on-demand audiocast of the
conference will also be published at TietoEnator's website later
during the same day.
TietoEnator publishes financial information in English, Finnish
and Swedish. All releases are posted in full on TietoEnator's
website www.tietoenator.com as soon as they are published.
TietoEnator is among the leading architects in building a more
efficient information society and one of the largest IT services
providers in Europe. TietoEnator specializes in consulting,
developing and hosting its customers business operations in the
digital economy. The Groups services are based on a combination
of deep industry-specific expertise and the latest information
technology. TietoEnator has about 16 000 experts in close to 30
countries.
www.tietoenator.com
DISTRIBUTION
Helsinki Stock Exchange
Stockholmsbörsen
Principal Media
TietoEnator Corporation
Business ID: 0101138-5
Kutojantie 10 PO Box 33
FI-02631 ESPOO, FINLAND
Tel +358 9 862 6000
Fax +358 9 862 63091
Registered office: Espoo
Kronborgsgränd 1
SE-164 87 KISTA, SWEDEN
Tel +46 8 632 1400
Fax +46 8 632 1420
e-mail: info@tietoenator.com
www.tietoenator.com