TietoEVRY Oyj — Earnings Release 2021

Oct 13, 2021

TietoEVRY announces new strategy - focused, specialized and expansion driven

TietoEVRY announces new strategy - focused, specialized and expansion driven

TietoEVRY Corporation          INSIDE INFORMATION          13 October 2021, 8.00

a.m. EEST

TietoEVRY is announcing its new strategy to drive customer value and growth

through specialization. The technology industry is being reshaped with cloud as

the foundation, providing expansion opportunities for the company. Expansion

will focus on cloud-native services, data & software engineering and scalable

software businesses. In managed application and infrastructure services, the

company will seek partnerships to invest and build scale. The company confirms

its 5% growth and 15% adjusted EBITA targets for 2023 while the new strategy

supports potential for enhanced performance.

Hyperconnected data, enabled by cloud, is redefining customer priorities and

reshaping the technology industry. These trends are widening the divide between

cloud-native services and software with high growth, and traditional managed

services in which automation and scale are important drivers for

competitiveness.

TietoEVRY is today announcing a new strategy to drive specialization and focus.

Investments will be focused on businesses where the company sees competitive

advantages and sustainable growth: cloud-native services, data & software

engineering and scalable software businesses, including their global expansion

potential. In the areas of traditional managed application and infrastructure

services, the company sees new partnerships as potential means to build scale

and pursue joint investments.

To capture the momentum of cloud-native and software market, TietoEVRY is

establishing six specialized end-to-end businesses. These businesses will have

full operational responsibility, including go-to-market, service portfolio,

investments and partnerships. Reflecting the distinct market dynamics of each,

the individual businesses will have optionality to scale, and prioritize

investments. These businesses, built on the solid foundation of the current

service lines, are: Business Design & Engineering, Health & Care Software,

Financial Services Solutions, Industry Software, Enterprise Modernization and

Cloud Platform Services.

The following investment priorities will drive competitiveness and value

creation in each business:

.    Invest to expand in Business Design & Engineering, Health & Care Software

and Financial Services Solutions - invest to accelerate products, services and

capabilities; prioritized M&A.

.    Partner to scale in Enterprise Modernization and Cloud Platform Services -

invest in capabilities to drive scale and automated managed services; seek

partners (operational and structural) to jointly invest and scale.

.    Focus for value in Industry Software - optimized investments for selected

businesses and develop portfolio to increase focus.

TietoEVRY Group continues to support the businesses through scalable common

functions (Finance, Strategy, global Operations and HR) driving portfolio

development, performance management and efficiency across the company.

"The global technology market is going through a profound change as the market

is becoming cloud-enabled and new technologies are at the core of enterprise

business renewal. This is the right time to renew our strategy, also in light of

our integration progress, and capture the opportunities stemming from the high

-growth markets for cloud and software.

The change in the market opens up opportunities for TietoEVRY to provide high

value creation, operational agility and innovation for our clients through

specialization. We believe this specialization-focused strategy with six end-to

-end businesses will be highly competitive in the market. Our businesses will be

able to explore alternative means to accelerate growth and expansion through

business-specific investments, partnerships and potential M&A. With this

strategy, we also enable further value creation for our shareholders.

The direction we are setting today is the biggest change in the company's

history - and we are taking a quantum leap forward in our potential. I trust

these changes will also be highly rewarding to our employees, as we will all

gain enhanced learning opportunities and a sense of pride from our individual

contributions to our customers' success. I am excited to embark on this new

phase and the opportunities it brings to unlock the full potential of our global

team of 24 000 experts - towards solutions that make a world of difference,"

says Kimmo Alkio, the President and CEO.

New businesses and TietoEVRY's Executive Management

The new structure, dismantling the current matrix, and appointments in Executive

Management will take effect on 1 January 2022. The businesses forming the

reportable segments as from the first quarter of 2022 are described below:

Business Design & Engineering

Cloud-native development, data and software engineering expanding globally

To be led by Christian Pedersen

Health & Care Software

Open and modular software for Health & Care, expanding Nordic customer base and

markets

To be led by Ari Järvelä

Financial Services Solutions

Modular and integrated software suite for Nordic and global financial

institutions

To be led by Christian Segersven

Industry Software

Software for core processes in the public, energy and industrial sectors

To be led by Ari Järvelä

Enterprise Modernization

Automated managed services and transformation to drive enterprise efficiency and

agility across business processes, applications and infrastructure for selected

Nordic customers

To be led by Satu Kiiskinen

Cloud Platform Services

Secure multi-cloud capacity driving scale and platforms for customers' cloud

adoption

To be led by Johan Torstensson

The business executives together with

Tomi Hyryläinen, CFO

Kishore Ghadiyaram, Head of Strategy

Trond Vinje, Head of Human Resources

Malin Fors-Skjæveland, Head of Operations

will form TietoEVRY's Executive Management led by Kimmo Alkio, the President and

CEO.

Financial targets

The financial targets announced in December 2020 are maintained while the new

strategy supports potential for enhanced performance. The targets include:

.    Growth accelerating to 5% by 2023

.    Adjusted EBITA 15% by 2023

.    One-time items ~1% of revenue by 2022

.    Net debt/EBITDA below 2 by the end of 2022 (achieved in 2021)

.    Dividends increased annually

Updated long-term financial targets for the Group and for the businesses will be

announced at a Capital Markets Day at a later stage.

Further information

Investors, please contact:

Tomi Hyryläinen, Chief Financial Officer, tel. +358 50 555 0363, tomi.hyrylainen

(at) tietoevry.com

Kjell Arne Hansen, Head of Investor Relations, tel. +47 9504 0372, kjell.hansen

(at) tietoevry.com

Media, please contact:

Kia Haring, Head of Communications and Sustainability, tel. +358 40 765 3700,

kia.haring (at) tietoevry.com

Invitation to a press conference

A virtual press conference for analysts and media will be held on Wednesday 13

October 2021 at 1.00 p.m. EEST. Kimmo Alkio, President and CEO, and Tomi

Hyryläinen, CFO, will introduce the strategy online in English.

The link to the event webcast will be available at TietoEVRY's website

www.tietoevry.com/Investors. Participants will have an opportunity to ask

questions after the presentation via a Teams meeting. Instructions for the Q&A

session are available on the company's website. The company will publish a video

replay of the presentations after the event.

TietoEVRY Corporation

DISTRIBUTION

NASDAQ Helsinki

NASDAQ Stockholm

Oslo Børs

Principal Media

TietoEVRY creates digital advantage for businesses and society. We are a leading

digital services and software company with local presence and global

capabilities. Our Nordic values and heritage steer our success.

Headquartered in Finland, TietoEVRY employs around 24 000 experts globally. The

company serves thousands of enterprise and public sector customers in more than

90 countries. TietoEVRY's annual turnover is approximately EUR 3 billion and its

shares are listed on the NASDAQ in Helsinki and Stockholm as well as on the Oslo

Børs. www.tietoevry.com