Tieto Corporation · OMXHEX:TIETO
Tieto — TietoEVRY — Q2 2026 Earnings Presentation
22 slides from Tieto's earnings presentation, Jul 22, 2026
Slide 1: Strong profitability demonstrates resilience in a weak market
Q2 2026 Strong profitability demonstrates resilience in a weak market Endre Rangnes, President and CEO Tomi Hyryläinen, CFO
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 ▪ Sales recruitment and training ▪ Divestments of Edlevo and ▪ 2 new customers in DACH for ▪ Run-rate savings of €115m with AI focus HR & Payroll completed in Care
Slide 4: AI creating value across Tieto's businesses
AI creating value across Tieto's businesses Tech Consulting Banktech Caretech Indtech AI capability AI-powered software AI-powered anti-money AI-assisted documentation AI-powered financial engineering laundering automation Platform AI Engineering Services AML Solution Lifecare Smart Notes Eye-share
Slide 5: Q2: Strong profitability demonstrates resilience in a weak market
Q2: Strong profitability demonstrates resilience in a weak market Organic growth • Organic growth of -5%, mainly • Edlevo and HR & Payroll reflecting weaker consulting divestment completed – new market demand • Adjusted EBITA improved by 5.5 pp. to 14.9%, driven primarily by €90m share buyback progr
Slide 6: Tieto Group Q2 key figures
Tieto Group Q2 key figures Revenue, EUR million Organic growth1 Adjusted operating profit (EBITA)2, EUR million 427 -5% 63 / 14.9% (463) (-4%) (44 / 9.4%) Net debt/EBITDA Order backlog1 Cash flow from operating activities3, EUR million 1.0 -4 % 21 (n/a) year-on-year (51) 1) Adjusted for currency eff
Slide 7: Tieto Tech Consulting
Tieto Tech Consulting Organic growth Strong profitability – transformation accelerating -6% • Growth impacted by further • Accelerating the competence (-7%) €172m (203) deterioration in market demand shift C • Profitability supported by – 1,500 consultants enrolled in improved utilization and Micros
Slide 8: Tieto Banktech
Tieto Banktech Organic growth Improved profitability and solid order backlog -6% • Strong growth in BaaP • Solid order backlog providing (-1%) €139m (141) following deepening strong momentum for H2 and customer relationships beyond • Growth impacted by legacy contract run-off (-6 pp.) and Adj. EBITA
Slide 9: Tieto Caretech
Tieto Caretech Organic growth Continued strong performance - European expansion progressing -2% • Continued solid performance • European expansion (-3%) €57m (58) of the modern software progressing: 2 new customers portfolio, particularly in Social in DACH region Care Sweden • Growth impacted by leg
Slide 10: Tieto Indtech
Tieto Indtech Organic growth Strong profitability driven by cost optimization 0% • Continued solid growth in • Divestment of Edlevo and HR (-1%) €65m (67) Eye-Share and Public360 & Payroll completed • Growth impacted by weak performance in Pulp, Paper & Fibre and our volume-based Adj. EBITA business
Slide 11: CFO report
CFO report 11
Slide 12: Improved profitability in all Businesses – New €90m share buyback programme launched
Improved profitability in all Businesses – New €90m share buyback programme launched Q2’26 Q2’25 ▪ Organic growth -5% Revenue and growth Revenue 427 463 - Continued weak market demand in Tech Consulting Organic growth, % -5 -4 - Negative 2pp impact from legacy contract run-off in Banktech and Acquis
Slide 13: New €90m share buyback programme launched
New €90m share buyback programme launched New €90m share buyback programme Status of the ongoing €150m share ▪ Share purchases to begin after completion buyback programme of the €150m programme ▪ Represents approx. 5% of all shares with €109m / 73% the current share price ▪ As of 17 July 2026, 5.8 m
Slide 14: Q2 operating cash flow of €21m – leverage well below target
Q2 operating cash flow of €21m – leverage well below target Free cash flow1 (€m) ▪ Cash flow from operations €21m (51) – underlying Operating cash flow (€m) improvement YoY approx. €3m/16% Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 - Supported by improved profitability 217 202 - Seasonal net working capital incr
Slide 15: Cost optimization programme on track to deliver €130m
Cost optimization programme on track to deliver €130m – with €115m run rate realized by end of Q2 €130m cost optimization programme ▪ Cost optimization target to deliver €130m run 35 130 rate savings by end of 2026 ▪ Execution on track with €115m run rate 95 executed by end of Q2’26 (€105m in Q1’26)
Slide 16: Personnel reductions continued - attrition at very low level
Personnel reductions continued - attrition at very low level ▪ LTM attrition at 7.3%, reflecting continued soft market 8.0 7.5 7.8 7.6 environment Attrition 7.3 % last twelve ▪ Cost optimization continued – net reduction of ~520 months (voluntary) FTEs during the quarter Q2’25 Q3’25 Q4’25 Q1’26 Q2’2
Slide 17: Outlook remarks – Q3'26
Outlook remarks – Q3’26 • Tieto Tech Consulting: Impacted by continued weak market demand Growth – growth expected to be slightly below Q2 level • Tieto Banktech: Order backlog supporting growth, impacted by ending of a significant (margin-dilutive) mainframe contract -4 pp. and SB1 comparison effec
Slide 18: Q3 profitability outlook
Q3 profitability outlook Business Q3’25 Profitability outlook adj. EBITA % Tech Consulting 13.1% Below Q3’25 level Banktech 28.1% Below Q3’25 level Caretech 31.7% At Q3’25 level Indtech 18.9% At or Above Q3’25 level 18
Slide 19: Full-year guidance for 2026 updated on 17 July
Full-year guidance for 2026 updated on 17 July Organic growth EBITA Adj. -5 to -3% (previous -2 to 0%) 14.8 – 15.8% (unchanged) ▪ Growth guidance updated due to weaker-than-expected market ▪ Profitability outlook for 2026 is maintained demand ▪ The company has continued to execute its cost optimizat
Slide 20: 2026 revenue growth dynamics – Tech Consulting H2 outlook has weakened
2026 revenue growth dynamics – Tech Consulting H2 outlook has weakened 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. Lega
Slide 21: Focused execution in 2026
Focused execution in 2026 21
Slide 22: Focused execution in the year of transformation – building momentum towards 2028
Focused execution in the year of transformation – building momentum towards 2028 KEY 2026 PRIORITIES • Building the workforce of the future • Strengthen client relationships • Selective international expansion • Leverage strategic partnerships • Continue simplification activities • Finalize the cost