Tieto Corporation · OMXHEX:TIETO
Tieto — TietoEVRY — Q4 2025 Earnings Presentation
26 slides from Tieto's earnings presentation, Feb 12, 2026
Slide 1: Strong profitability – execution of new strategic priorities progressing
Strong profitability – execution of new strategic priorities progressing Endre Rangnes, President and CEO Tomi Hyryläinen, CFO 1
Slide 2: Strategy rejuvenated – execution through 4 strategic priorities
Strategy rejuvenated –execution through 4 strategic priorities 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 2027-20
Slide 3: Solid execution of 4 strategic priorities
Solid execution of 4 strategic priorities 01 Customer 02 Simplified 03 Selective 04 Competitive first core expansion cost base ▪ Long–term contracts secured ▪ New operating model with ▪ Strategic partnerships with ▪ Resetting the cost base – in Banktech with record-high improved accountability NTT D
Slide 4: 2025 – a year of profound change with early signs of performance recovery
2025 – a year of profound change with early signs of performance recovery Organic growth Adj. EBITA ▪ Divestment of Tech Services -2% (-1%) 13.8% (12.0%) ▪ CEO transition ▪ New leadership team ▪ Engagement of key stakeholders Operating cash flow Order backlog +13% Cost optimization program 296 ▪ ▪ R
Slide 5: AI remains a key focus area – client adoption progressing
AI remains a key focus area – client adoption progressing Sales and Value Typical AI project development proposition 1. x1 x2 contract x5 contract x10 value contract value value 3. 2. Growing our AI business Internal efficiency and Internal Products through our large productivity by AI efficiency an
Slide 6: Advancing in sustainability
Advancing in sustainability Achievements from 2025 Our focus Rating A in Climate category on Carbon Disclosure Project (CDP) Science Based Targets initiative (SBTi) validated Tieto’s new long- Climate term ambitions and net-zero in full action Social value chain by 2040 impact Tieto India recognized
Slide 7: Q4 results
Q4 results 7
Slide 8: Q4: Strong profitability – execution of new strategic priorities progressing
Q4: Strong profitability – execution of new strategic priorities progressing Organic growth -2% ▪ Top line growth impacted by ▪ Strategy execution advancing – continued market weakness and acquisitions in Spain supporting known headwinds in Tieto European expansion, divestment Banktech and Caretech
Slide 9: Tieto Group Q4 key figures
Tieto Group Q4 key figures Revenue, EUR million Organic growth1 Adjusted operating profit (EBITA)2, EUR million 464 -2% 75 / 16.2% (472) (-5%) (58 / 12.4%) Net debt/EBITDA3 Order backlog1 Cash flow from operating activities4, EUR million 2.2 +13% 103 (2.2) year-on-year (128) 1) Adjusted for currency
Slide 10: Tieto Tech Consulting
Tieto Tech Consulting Organic growth Strategy execution advancing – new, simplified operating model implemented -6% • Growth pressured by • Commercial momentum (-8%) €196m (208) challenging market conditions maintained with several new wins • Profitability improved through effective capacity managem
Slide 11: Tieto Banktech
Tieto Banktech Organic growth Strong profitability and solid order backlog supporting long-term growth -3% • Growth in software portfolio • Strong order backlog with (-2%) €142m (146) continued – soft market long-term revenue visibility impacting professional (from 2027) services demand • Improved p
Slide 12: Tieto Caretech
Tieto Caretech Organic growth Solid profitability and strengthening of partnerships to drive growth 1% • Strong growth in modern • Strengthening market (0%) €63m (61) software portfolio, largely position in Finland, supported offset by legacy business by extended partnerships decline (–4 pp.) with f
Slide 13: Tieto Indtech
Tieto Indtech Organic growth Performance improvement continued 6% • Growth improved in 6 product • Profitability improved driven (-5%) €70m (65) units – Pulp, Paper & Fibre by stronger business and Energy & Utilities momentum and cost declined optimization measures • Market activity continued to Adj
Slide 14: CFO report
CFO report 14
Slide 15: Strong Q4 profitability – success in cost optimization programme
Strong Q4 profitability – success in cost optimization programme Q4'25 Q4'24 Revenue and growth Revenue 464 472 ▪ Organic growth -2% Organic growth, % -2% -5% - Negative 2pp impact from known headwinds in Banktech and Caretech Acquisitions & divestments, % 0% 0% ▪ Adj. EBITA 16.2% Foreign exchange r
Slide 16: Dividend proposal €0.88/share (€104m), representing upper end of the payout range
Dividend proposal €0.88/share (€104m), representing upper end of the payout range 2025 Dividend proposal €m Net profit 26 Dividend Annual dividend of Adjustments 60-80% policy Non-cash impairments +86 IFRS 5 cost burden +19 of net profit Net profit after adjustments 130 (Adj. for non-cash one-time i
Slide 17: Share buyback programme of €150m launched
Share buyback programme of €150m launched €150m share buyback Aligned with our capital programme launched allocation principles to ▪ Represents approx. 7% of all shares with maintain efficient capital the current share price structure ▪ Execution expected to take up to 12 ▪ Invest in organic growth
Slide 18: Seasonally strong Q4 operating cash flow of €103m
Seasonally strong Q4 operating cash flow of €103m Operating cash flow (€m) Free cash flow1 (€m) ▪ Cash flow from operations €103m (128) 217 - Supported by improved profitability 128 108 103 97 - Seasonal net working capital decrease of €30m 81 63 - Free cash flow1 of €81m (108) 51 45 20 ▪ Overall ca
Slide 19: Cost optimization programme target uplifted to €130m – execution ahead of schedule
Cost optimization programme target uplifted to €130m (€115m) – execution ahead of schedule ▪ Cost optimization target increased to €130m €130m cost optimization programme (€115m). Further potential identified primarily in Tech Consulting operational simplification and external purchases. 35 130 ▪ Ex
Slide 20: Personnel reductions across all businesses
Personnel reductions across all businesses 7.9 7.9 8.0 7.5 7.8 Attrition % last twelve ▪ LTM attrition at 7.8%, reflecting continued soft months (voluntary) market environment Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 ▪ Cost optimization ongoing in all businesses – net reduction of ~450 FTEs during the quarter
Slide 21: Outlook remarks – Q1’26
Outlook remarks – Q1’26 Growth Group revenue growth at Q4 level drivers ▪ Tieto Tech Consulting: Impacted by continued weak demand across all markets ▪ Tieto Banktech: Impacted by ending of a significant (margin-dilutive) mainframe contract (negative ~5 pp.) ▪ Tieto Caretech: Headwind from declining
Slide 22: Q1 profitability outlook
Q1 profitability outlook Business Q1’25 Profitability outlook adj. EBITA % Tech Consulting 11.8% Above Q1’25 level Banktech 11.4% Above Q1’25 level Caretech 24.7% Above Q1’25 level Indtech 12.4% Above Q1’25 level 22
Slide 23: 2026 outlook
2026 outlook 23
Slide 24: Guidance for 2026 – step-change in profitability
Guidance for 2026 – step-change in profitability Organic growth • Soft market environment expected to continue into 2026, affecting Tech Consulting growth -2% to 0%2025: €1 852m / -2% • ~3 pp. known growth headwinds − ~2 pp. run-off of legacy contracts in Banktech and Caretech − ~1 pp. one-off SB1 c
Slide 25: 2026 revenue growth dynamics
2026 revenue growth dynamics 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. Caretech Legacy run-off
Slide 26: Focused execution in 2026 – building momentum towards 2028
Focused execution in 2026 – building momentum towards 2028 2026 • Strengthen client relationships • Reinforce sales capabilities • Leverage strategic partnerships • Continue simplification activities • Finalize the reset of the cost base • Regain stakeholder confidence