TietoEVRY Oyj

Management Reports • Nov 24, 2025

Inside information: Tieto updates its strategy along with financial targets and capital allocation policy

Inside information: Tieto updates its strategy along with financial targets and capital allocation policy

Tietoevry Corporation  INSIDE INFORMATION   24 November 2025  7:00 p.m. EET

The Board of Directors of Tieto (formerly Tietoevry) has approved the company's

new financial targets and capital allocations policy for 2026-2028. Tieto's

target is to reach annual revenue growth1) of over 5% (CAGR) in 2027-2028 and an

adjusted2) operating margin (EBITA) of over 16% by 2028. In addition, the

company aims to achieve net debt/EBITDA below 2.

The new capital allocation principles enable the company to focus on growth

while delivering attractive shareholder returns. The company aims to distribute

dividend representing 60-80% of net profit. With excess capital, the company

will carry out share buybacks or pay extraordinary dividends. Tieto's current

consideration for 2025 dividend proposal is 80% of net profits, adjusted for non

-cash impairments and the IFRS 5 related cost burden.

Speeding up strategy execution through four strategic priorities

Based on its strong foundation, Tieto aims to strengthen its market leadership

in the company's core Nordic markets while driving selective international

expansion with selected software products. The company is speeding up execution

of its strategy to become the European software and technology consulting market

leader within selected industries through four strategic priorities:

1. Customer first

2. Simplified core

3. Selective expansion

4. Competitive cost base

"Our rejuvenated strategy is intended to drive higher growth through customer

focus. We have a strong foundation to become the European software and

technology consulting market leader within selected industries. Now our focus is

set on speeding up execution. Based on our simplified core, we leverage the

unique opportunity to expand our vertical software businesses with our

consulting services. Selective international expansion is one of the priorities,

which brings us from strong Nordic roots to broader European growth, especially

with our scalable software solutions. Reflecting our strategic ambitions, we

have set new financial targets which we believe are truly realistic and

achievable", says Endre Rangnes, President and CEO.

Financial development in 2026 - a year of execution and transition

Tieto will maintain strong focus on executing its strategy in 2026. While growth

is expected to remain flat, or slightly negative, impacted by headwinds in Tieto

Banktech and Tieto Caretech, profitability will improve, driven by the ongoing

cost optimization programme and ending of the negative impact of IFRS 5 -related

cost burden. Growth initiatives are anticipated to deliver results from 2027

onwards. Tieto will announce official financial outlook for 2026 in its

financial statement release on 12 February 2026.

Renewed brand reflecting simplified operational core and unwavering focus to

advance businesses and society with technology

As one catalyst to address the execution of the company's strategic priorities

focused on customer first- mindset, simplified core and selective international

expansion, Tietoevry is renewing its brand. The new brand considers the

company's heritage as well as geographically expanding footprint by opting for

simpler and meaningful, Tieto, as the company name. However, the name change of

the parent company, Tietoevry Corporation, will be subject to a decision by the

Annual General Meeting. The four businesses will also be renamed as follows:

.Tietoevry Banking to Tieto Banktech

.Tietoevry Care to Tieto Caretech

.Tietoevry Industry to Tieto Indtech

.Tietoevry Create to Tieto Tech Consulting

Tieto will host its Capital Markets Day tomorrow

Tieto's Capital Markets Day 2025 "Changing gear to deliver growth" will be held

tomorrow, 25 November. The event provides insights into the company's strategy

and execution priorities. Tieto's four businesses will provide insights into

their respective markets, business priorities, growth plans and share their

financial targets.

The event will start on 25 November at 2 p.m. GMT (4 p.m. EET) and can be

followed through a live stream. A detailed programme and a link to the webcast

along with the presentation materials are available on the company's

website (https://www.tietoevry.com/en/investor-relations/cmd/). On-demand video

will be available after the event.

1)Mainly organic, adjusted for currency effects

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

charges and other items affecting comparability

For further information, please contact

Tommi Järvenpää, Head of Investor Relations, tel. +358 40576 0288,

tommi.jarvenpaa (at) tietoevry.com

TIETOEVRY CORPORATION

DISTRIBUTION

NASDAQ Helsinki

NASDAQ Stockholm

Oslo Børs

Principal Media

Tieto 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

Tieto Caretech, Tieto Banktech and Tieto Indtech as well as TietoTech Consulting

business. 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.

Tieto'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