Slide 1: Q1 2026: Strong profitability and solid performance in software businesses
Q1 2026 Strong profitability and solid performance in software businesses Endre Rangnes, President and CEO Tomi Hyryläinen, CFO 1
Slide 2: Our strategy for 2026-2028
Our strategy We execute through Our success is measured for 2026-2028 4 strategic priorities by our financial targets Become European software and technology consulting market leader within selected 01 Customer first Growth (CAGR 2027-2028) >5% industries 02 Simplified core Profitability (2028) >16%
Slide 3: Solid execution of 4 strategic priorities continues
Solid execution of 4 strategic priorities continues 01 Customer 02 Simplified 03 Selective 04 Competitive first core expansion cost base ▪ Customer governance model ▪ Divestment of Bekk ▪ Tieto Iberia established to ▪ Run-rate savings of €105m rollout progressing Consulting closed Feb 2 drive expans
Slide 4: AI reshaping our industry – Tieto well positioned to capture the AI opportunities
AI reshaping our industry – Tieto well positioned to capture the AI opportunities WHO WINS IN AN AI-DRIVEN MARKET? OUR COMPETITIVE EDGE Q1 AT TIETO Vendors with Tieto has a strong Tangible AI advancements • Vertical software foundation to scale AI • AI tooling embedded in all • Business-critical dat
Slide 5: Q1: Strong profitability and solid performance in software businesses
Q1: Strong profitability and solid performance in software businesses Organic growth ▪ Growth -3%, 2 pp. negative ▪ Tieto Tech Consulting impact from known headwinds – software businesses delivered healthy underlying growth impacted by weak market conditions – additional cost saving measures initiat
Slide 6: Tieto Group Q1 key figures
Tieto Group Q1 key figures Revenue, EUR million Organic growth1 Adjusted operating profit (EBITA)2, EUR million 448 -3% 66 / 14.7% (471) (-4%) (50 / 10.6%) Net debt/EBITDA Order backlog1 Cash flow from operating activities3, EUR million 1.3 +8% 85 (n/a) year-on-year (97) 1) Adjusted for currency eff
Slide 7: Tieto Tech Consulting
Tieto Tech Consulting Organic growth Market weakness impacting performance – significant AI partnership with Microsoft -7% • Growth impacted by challenging • Simplification and upskilling (-6%) €185m (215) market conditions continues • Profitability impacted by lower • Strengthened AI capabilities u
Slide 8: Tieto Banktech
Tieto Banktech Organic growth Strong profitability and good underlying growth 1% • Strong growth in Financial • Improved profitability (-3%) €141m (137) Crime Prevention and BaaS supported by cost optimization measures • Growth impacted by legacy contract run-off (–5 pp.) • Strong order backlog with
Slide 9: Tieto Caretech
Tieto Caretech Organic growth Continued strong performance -2% • Solid growth in modern • Strong order intake (-2%) €58m (57) software portfolio • Significant win for Lifecare • Growth impacted by legacy solutions with City of business decline (–5 pp.) Stockholm • Consistent strong profitability • N
Slide 10: Tieto Indtech
Tieto Indtech Organic growth Continued solid performance 2% • Solid growth in all businesses • Divestment of Edlevo & HR & (-2%) €71m (68) except Pulp, Paper & Fibre Payroll announced - expected and Energy & Utilities to close in Q2 • Profitability improved driven • Bent Philipps appointed as by str
Slide 11: CFO report
CFO report 11
Slide 12: Significant profitability uplift - solid performance in software businesses
Significant profitability uplift - solid performance in software businesses Q1’26 Q1’25 Revenue and growth ▪ Organic growth -3% Revenue 448 471 - Good underlying growth in Banktech and Caretech - negative 2pp impact Organic growth, % -3% -4% at Group level from legacy contract run-off Acquisitions &
Slide 13: Seasonally strong Q1 operating cash flow of €85m
Seasonally strong Q1 operating cash flow of €85m Free cash flow1 (€m) ▪ Cash flow from operations €85m (97) – underlying Operating cash flow (€m) improvement YoY approx. €7m/9% Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 - Supported by improved profitability 217 202 - Seasonal net working capital decrease of €14m
Slide 14: Cost optimization programme on track to deliver €130m
Cost optimization programme on track to deliver €130m – with €105m run rate realized by end of Q1 €130m cost optimization programme ▪ Cost optimization target to deliver €130m run 35 130 rate savings by end of 2026 ▪ Execution on track with €105m run rate 95 executed by end of Q1’26 (€95m in Q4’25)
Slide 15: Personnel reductions across all businesses
Personnel reductions across all businesses ▪ LTM attrition at 7.6%, reflecting continued soft market 8.0 7.9 7.5 7.8 7.6 environment Attrition % last twelve ▪ Cost optimization continuing – net reduction of ~800 months (voluntary) FTEs during the quarter Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 - Tech Consulti
Slide 16: Outlook remarks – Q2'26
Outlook remarks – Q2’26 Group revenue growth expected to improve from Q1 level Growth ▪ Tieto Tech Consulting: Impacted by continued weak demand across all drivers markets - growth expected to improve, but still remain negative ▪ Tieto Banktech: Impacted by ending of a significant (margin-dilutive)
Slide 17: Q2 profitability outlook
Q2 profitability outlook Business Q2’25 Profitability outlook adj. EBITA % Tech Consulting 10.0% Above Q2’25 level Banktech 10.5% Above Q2’25 level Caretech 24.4% At or above Q2’25 level Indtech 10.2% Above Q2’25 level 17
Slide 18: 2026 revenue growth dynamics – unchanged from Q4'25
2026 revenue growth dynamics – unchanged from Q4’25 Q1 Q2 Q3 Q4 Positive growth Tech Consulting momentum Neutral growth Market softness expected to persist for the year momentum Growth Banktech headwind Legacy run-off -5 pp. Legacy run-off -6 pp. SB1 comparison effect -14 pp. Legacy run-off -4 pp. C
Slide 19: Focused execution in 2026
Focused execution in 2026 19
Slide 20: 2026 Key priorities
Focused execution in 2026 – building momentum towards 2028 2026 Key priorities • Strengthen client relationships • Selective international expansion • Leverage strategic partnerships • Continue simplification activities • Finalize the cost efficiency program