TietoEVRY Oyj

Earnings Release • Oct 23, 2025

Tietoevry's Interim Report 3/2025: Early signs of margin recovery with transformation execution ongoing

Tietoevry's Interim Report 3/2025: Early signs of margin recovery with transformation execution ongoing

Tietoevry Corporation    INTERIM REPORT23 October 2025   9:00 a.m. (EEST)

· Organic growth 4%, or -1% eliminating the revenue related to a court ruling

in Tietoevry Banking

· Tietoevry Care and Industry back to growth

· Adjusted operating margin 19.3% (12.8%), or 15.2% eliminating the court

ruling effect in Tietoevry Banking

· Improved profitability in all businesses

· Cost optimization progressing towards the 2026 target of EUR 115 million -

run-rate savings of EUR 75 million achieved by the end of the third quarter

· The divestment of the Tech Services business completed during the quarter

The divestment of Tietoevry Tech Services was completed on 2 September. The

business has been presented as a discontinued operation as from the first

quarter of 2025. The financial information presented in this report concerns

continuing operations, unless otherwise stated. The comparative information has

been restated accordingly.

The full interim report with tables is available at the end of this release.

[][][][][][][][]

7-9/2025 7-9/2024 1-9/2025 1-9/2024

Revenue, EUR million 454.2 436.3 1388.1 1407.6

Organic growth[1)], % 4 -1 -1 0

Acquisitions and 0 1 0 3

divestments, %

Foreign exchange 0 -1 0 -1

rates, %

Total growth, % 4 0 -1 2

Organic growth adjusted for 4 -2 -1 1

working days[4)], %

Operating profit/loss 56.5 35.5 16.4 108.3

(EBIT), EUR million

Operating margin (EBIT), % 12.4 8.1 1.2 7.7

Adjusted[2)] operating 87.8 55.9 181.3 167.0

profit (EBITA[3)]), EUR

million

Adjusted[2)] operating 19.3 12.8 13.1 11.9

margin (EBITA[3)]), %

Cash flow from operating 44.7 58.2 193.4 198.1

activities, EUR million[5)]

Interest-bearing net debt, 551.9 900.5 551.9 900.5

EUR million[5)]

Full-year outlook for 2025 updated on 15 September

Tietoevry expects its organic[1)] growth to be in the range of -2% to 0%

(revenue in 2024: EUR  1 879.5 million). The company estimates its full-year

adjusted operating margin[2)] (adjusted EBITA[3)]) to be 12.7-13.3% (12.0% in

2024).

The profitability outlook includes a negative IFRS 5-related impact of

approximately 1.1 percentage points on the adjusted operating margin (EBITA) due

to the Tech Services divestment. The impact comprises the costs that the company

was not able to allocate to discontinued operations prior to the closing of the

divestment on 2 September, and transition services income after that date.

1) Adjusted for currency effects, acquisitions and divestments

2) Adjustment items include restructuring costs, capital gains/losses,

impairment charges and other items affecting comparability

3) Profit before interests, taxes, amortization of acquisition-related

intangible assets, goodwill and other intangible asset impairment

4) Company estimate

5) Cash flows combine the continuing and the discontinued operations; balance

sheet comparative information not restated.

CEO comment by Endre Rangnes

Progressing with execution of our strategic priorities: customer first, growth

and lean cost structure

"Our third-quarter performance was healthy with early signs of margin recovery.

Our organic growth totalled 4% and adjusted operating margin 19.3% - this

development was largely driven by revenue related to a court ruling in Tietoevry

Banking. When eliminating the positive contribution of this revenue, underlying

growth remained at -1%. On a positive note, our underlying margin improved to

15.2% from 12.8% year-on-year, with higher profitability in all businesses,

following the execution of our cost optimization efforts. Tietoevry Care and

Tietoevry Industry turned to growth whereas revenue development in Tietoevry

Create remained negative due to continued challenging market conditions.

Following the successful divestment of Tietoevry Tech Services during the

quarter, we are now fully focused on executing our strategic priorities. This

marks a pivotal phase for the company, where we are driving forward with a

sharpened emphasis on customer centricity, growth and a lean cost structure -

anchored by a strong execution mindset.

To accelerate commercial impact, we have launched a comprehensive sales focus

programme across business units. This initiative includes a new sales governance

model, better aligning demand and supply of competencies for the benefit of our

customers, as well as harmonization of CRM systems and targeted sales training.

These efforts are designed to reinforce customer trust, strengthen the sales

pipeline and enhance incentive effectiveness. Furthermore, our AI programme will

help us adopt the best practices of embedding AI in both offerings and sales -

and provide AI tools to improve internal productivity.

We are actively transforming our business profile to support sustainable growth

and improved profitability. Our strategic focus is on expanding cloud-native and

AI-enabled solutions. Our ambition for growth is higher than our current

performance, and we are pursuing international expansion for our proven Nordic

software solutions. Early market responses - such as our latest win in

Catalonia, Spain - are encouraging, though we expect the full impact to

materialize over time due to longer lead cycles in new markets. We remain

confident in our direction and committed to delivering long-term value for our

customers and shareholders.

Our cost optimization programmes introduced earlier this year are progressing as

planned towards the EUR 115 million target by the end of 2026. We achieved run

-rate savings of EUR 75 million by the end of the third quarter - well in line

with the ambition for this year.

We are excited to introduce the next chapter of the company as well as our

business plans at our Capital Markets Day in November. Reflecting on the active

dialogue I have had with investors and across our stakeholder groups in the past

months, we can be proud of our strong foundation, which comprises our long-term

customer relations, relevant and renowned partners, market-leading vertical

software assets, innovation capabilities and our talented people. This existing

foundation combined with our clear strategy and relentless execution are the

cornerstones of our future success."

Financial performance by segment

Revenue, Revenue, Growth, Organic Adjusted Adjusted

Adjusted Adjusted

% growth, operating operating

operating operating

EUR EUR %

million million profit, profit,

margin, % margin, %

EUR EUR

million million

7-9/2025 7-9/2024 7-9/2025 7-9/2024 7-9/2025 7-9/2024

Tietoevry 184.3 190.9 -3 -3 23.6 23.0 12.8

12.1

Create

Tietoevry 157.4 137.9 14 14 43.8 18.3 27.8

13.3

Banking

Tietoevry 54.8 53.3 3 2 17.4 16.8 31.7

31.6

Care

Tietoevry 64.0 61.7 4 3 12.4 10.1 19.4

16.3

Industry

Eliminations -6.3 -7.5 - - -9.4 -12.4 -

-

and

non

-allocated

costs

Group total 454.2 436.3 4 4 87.8 55.9 19.3

12.8

For further information, please contact:

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

(at) tietoevry.com

Tommi Järvenpää, Head of Investor Relations, tel. +358 40 576 0288,

tommi.jarvenpaa (at) tietoevry.com

A webcast for analysts and media will be held on 23 October at 10.00 a.m. EEST

(9.00 a.m. CEST, 8.00 a.m. UK time). Endre Rangnes, President and CEO, and Tomi

Hyryläinen, CFO, will present the results online in English. The

presentation (https://tietoevry.events.inderes.com/q3-2025) can be followed on

Tietoevry's website (https://www.tietoevry.com/investors).

To take part in the questions and answers session after the presentation you

will need to dial in by phone. You can access the teleconference by registering

on this link (https://events.inderes.com/tietoevry/q3-2025/dial-in). After

registration you will be provided phone numbers, user ID and a conference ID to

access the conference.

The event is recorded and it will be available on demand later during the day.

Tietoevry publishes its financial information in English and Finnish.

Tietoevry Corporation

DISTRIBUTION

Nasdaq Helsinki

Nasdaq Stockholm

Oslo Børs

Principal Media

Tietoevry is a leading software and digital engineering services company with

global market reach and capabilities. We provide customers across different

industries with mission-critical solutions through our specialized software

businesses* Tietoevry Care, Tietoevry Banking and Tietoevry Industry, as well as

our digital engineering business Tietoevry Create. Our around 15 000 talented

vertical software, design, cloud and AI experts are dedicated to empowering our

customers to succeed and innovate with latest technology.

Tietoevry's annual revenue is approximately EUR 2 billion. The company's shares

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

Børs. www.tietoevry.com