Slide 1: Improved profitability — growth impacted by weakening market
Q3 2024 2°: Improved profitability — growth impacted by weakening market Kimmo Alkio, President and CEO Tomi Hyrylainen, CFO wis tietoeucy
Slide 2: Improved profitability — growth impacted by weakening market
Age Dacted ‘ 0 eakening Marke 2 Revenue decrease of Resilient profitability 1% — growth impacted of 13.5% by weakening market Strategic review of Tietoevry Tech Services progressing — the company is in an exclusive process with a non-industrial buyer
Slide 3: Full-year guidance for 2024 updated on 16 October
Full-year guidance for'2024—— d updated on 16 October Organic growth around -2% (previous 0-3%) Market demand weakened towards the end of Q3 Soft market conditions expected to continue for the rest of 2024 Weaker demand impact primarily Tietoevry Create and Tech Services Certain markets for Tietoevr
Slide 4: Weakening of the market environment — softness to continue into 2025
Weakening of the market environment — softness to continue into 2025 “ = & Market demand for Customer focus on Increasing Al intensity Continued instability IT-services continues efficiency — higher and GenAl maturity in the geopolitical to weaken, lower emphasis on short- with cloud asa environment
Slide 5: Advancing with AI, customer wins
tf Advancing with Al, Customer wir pas L > Ahlstrom has chosen Tietoevry Industry as its strategic partner for Cloud Services, expanding their existing collaboration on the Manufacturing Execution System (MES). This partnership aligns Responsible Al training to all employees: As part of of with Ahls
Slide 6: AI / GenAI opportunities and advancements being captured across Tietoevry businesses
Al / GenAl opportunities and advancements being captured across Tietoevry businesses Revolutionizing care with data, Next Al Lab - ideato reality in Alandanalytics days embedded Al Tatoos n i F impowered future ‘ofthe Alwave —and be the developers of digtal futures. _ Generative Al unleashed Future-
Slide 7: Business highlights
Business highlights
Slide 8: Tietoevry Group
Tietoevry Group Improved profitability — growth impacted by weakening market Organic growth! Adj. EBITA2 “1% “abe 13.5% a (2%) (13.0%) €88m (86) Cash flow from operations Order backlog ft: €58m . 50 | +8%' a 50 5 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 (€-2m) : €3,205m (2,957) m Revenue, €m Adj. EBITA 4) Adju
Slide 9: Tietoevry Create
Tietoevry Create Healthy profitability despite continued market softness 196 229 224 214 191 11.0% 15.0% 13.1% 1.4% 12.1% 03/23 Q4/23 Q1/24 9 Q2/24 Q3/24 Revenue, €m Adj. EBITA 4, tietoeuy Organic growth “4% (-4%) j. EBITA 12.1% (11.0%) €23m (22) Highlights Market weakened further with macroeconomic
Slide 10: Tietoevry Banking
Tietoevry Banking Stable profitability 135 150 149 148 138 13.3% 143% 1.9% 9.9% 13.3% 03/23 Q4/23 Q1/24 9 Q2/24 Q3/24 Revenue, €m Adj. EBITA 4, tietoeuy Organic growth a% (1%) j. EBITA 13 3% (13.3%) €18m (18) Highlights * Growth continued in Credit, Cards and Financial Crime Prevention. Norwegian ba
Slide 11: Tietoevry Care
Tietoevry Care Solid performance — softening demand in certain markets 52 61 59 59 53 30.6% 30.1% 28.2% 26.2% 31.6% 03/23 Q4/23 Q1/24 9 Q2/24 Q3/24 Revenue, €m Adj. EBITA 4, tietoeuy Organic growth 3% (3%) j. EBITA 31. 6% (30.6%) €17m (16) Highlights * Growth affected by public sector deficits in Fi
Slide 12: Tietoevry Industry
Tietoevry Industry Softening demand in certain markets Organic growth Highlights 1 % + Market environment impacting demand in (e) pulp, paper & fibre industry and public sector ° in Finland (6%) * Continued growth in Data Platforms 61 69 70 67 62 + Profitability impacted by weaker demand — efficienc
Slide 13: Tietoevry Tech Services
Tietoevry Tech Services Improved profitability — business mix developing favourably 242 9.5% Q3/23 4, tietoeuy 276 10.3% Q4/23 263 256 7.6% 7.7% Q1/24 = Q2/24 Revenue, €m Adj. EBITA 236 10.5% Q3/24 Organic growth “3% (-4%) j. EBITA 10. 3% (9.5%) €25m (23) Highlights * Transformation to cloud continu
Slide 14: CFO report
CFO report
Slide 15: Active cost base management supporting improved profitability
Active cost base management supporting improved profitability Q3'24 highlights Organic growth -1% in a weakening market. Limited impact from working days (+1.5 WD) due to vacation period Order backlog +8% year-on-year Active cost base management in all businesses supporting improved profitability of
Slide 16: Healthy Q3 cash generation — impacted by seasonality in working capital
Healthy Q3 cash generation — impacted by seasonality in working capital Cash flow from operations €58m (-2) — Net working capital increase of €20m, driven by seasonal decrease in vacation accruals and accounts payable — Accounts receivable decrease of €45m — weekend impact from prior quarter recover
Slide 17: Active capacity management — LTM attrition stable
Active capacity management — LTM attrition stable * LTMattrition of 8.8% - stable from Q2’24 * Cost management measures driving capacity reduction Tietoevry Create capacity reduced by 300 FTEs Tietoevry Tech Services capacity reduced by 100 FTEs Aggregated capacity reduction in software businesses b
Slide 18: Performance drivers — Q4'24
Performance drivers — Q4'24 Growth drivers Profit drivers Other drivers Q4 growth impacted by weakening market * Tietoevry Create impacted by weakening demand in all markets and lower internal revenue * Tietoevry Banking impacted by Norwegian bank merger in 2023 — negative 4 pp. impact on growth + T
Slide 19: Q4 profitability outlook
Q4 profitability outlook Q4'23 Business adj. EBITA% Profitability outlook Tietoevry Create 15.0% Below Q4’23 level Tietoevry Banking 14.3% At or below Q4’23 level Tietoevry Care 30.1% Above Q4'23 level Tietoevry Industry 16.6% At Q4’'23 level Tietoevry Tech Services 10.3% At or below Q4'23 level
Slide 20: Our way forward
Our way forward
Slide 21: Way forward — Continue to build resilience and advance specialized businesses
Way forward — Continue to build resilience and advance specialized businesses Drive strategic Focus on resilience in Be at the forefront of Conclude Tietoevry transformation the current market delivering value from Tech Services towards software and environment and Alin software and strategic review