Slide 1: Strong organic growth of 5% – growth outlook for the year upgraded
Q2 Q4 2022 2021 Strong organic growth of 5% – growth outlook for the year upgraded Kimmo Alkio, President and CEO Tomi Hyryläinen, CFO
Slide 2: Q2 in brief
Strong organic growth of 5% – growth outlook for the year upgraded Q2 in brief Growth driven by Adjusted operating Successful talent Full-year growth Strategic review of Tietoevry Create, margin 10.7% attraction with outlook upgraded Tietoevry Banking up by 12%, and impacted by salary 1 200 new join
Slide 3: Continued active market with high growth potential
Continued active market with high growth potential Our market growth estimate of 3% While macro economic Talent market continues to be for 2022 unchanged uncertainties exist, market active – attrition and salary Market driven by cloud-native activity level remains healthy with inflation impacting gr
Slide 4: Initiating strategic review of Tietoevry Banking to unlock its full value potential
Initiating strategic review of Tietoevry Banking to unlock its full value potential as an independent listed company Tietoevry Banking today Objectives of strategic review Process and way forward • Leading position in financial services • Clear identity in a global Fintech • Strategic review incl. c
Slide 5: Q2'22 financials
Q2’22? financials oe
Slide 6: Tietoevry Q2'22
Tietoevry Q2’22 Business highlights Organic growth* 5% Revenue EUR 739.1 million, organic growth* 5% Adj. EBITA** Reported growth 2.4%, currency and divestment impact 10.7% (down 1.5%) EUR 17 million (negative) Adjusted EBITA** EUR 78.7 (88.3) million, 10.7% (12.2) Strong growth in Tietoevry Create
Slide 7: Tietoevry Create
Tietoevry Create Digital consulting, analytics and software engineering services Business highlights Organic growth* 12% Revenue EUR 210.3 million, organic growth* 12% Adj. EBITA** Adjusted EBITA** EUR 26.5 (23.1) million, 12.6% (12.2) 12.6% (up 0.4%) High market activity in cloud native, data and s
Slide 8: Tietoevry Banking
Tietoevry Banking Software for financial institutions Business highlights Organic growth* 10% Revenue EUR 132.3 million, organic growth* 10% Adj. EBITA** Adjusted EBITA** EUR 13.6 (14.4) million, 10.3% (12.0) 10.3% (down 1.7%) Healthy growth driven by Cards and Financial Crime Prevention Profitabili
Slide 9: Tietoevry Care
Tietoevry Care Software for health and care services Business highlights Organic growth* -4% Revenue EUR 58.3 million, organic growth* -4% Adj. EBITA** Adjusted EBITA** EUR 17.5 (19.5) million, 30.1% (31.7) 30.1% (down 1.6%) Growth impacted by high comparable – Q2’21 one-time revenue impact of ~10%
Slide 10: Tietoevry Industry
Tietoevry Industry Industry-specific software and data platforms Business highlights Organic growth* 3% Revenue EUR 68.3 million, organic growth* 3% Adj. EBITA** Adjusted EBITA** EUR 11.7 (11.0) million, 17.1% (14.1) 17.1% (up 3.0%) Organic growth of 3% driven by Public 360 and Pulp and Paper Large
Slide 11: Tietoevry Transform
Tietoevry Transform Enterprise IT services for selected customers Business highlights Organic growth* 0% Revenue EUR 118.7 million, organic growth* 0% Adj. EBITA** Adjusted EBITA** EUR 5.4 (11.9) million, 4.5% (10.0) 4.5% (down 5.5%) Healthy growth in Industry & Forest segment - decline in Telecom &
Slide 12: Tietoevry Connect
Tietoevry Connect Infrastructure capacity and services Business highlights Organic growth* 1% Revenue EUR 230.7 million, organic growth* 1% Adj. EBITA** Adjusted EBITA** EUR 12.0 (15.6) million, 5.2% (6.7) 5.2% (down 1.5%) Strong growth continues in cloud platforms and security services, up by 14% T
Slide 13: Guidance 2022 – growth guidance upgraded
Guidance 2022 – growth guidance upgraded Growth guidance upgraded to 3–5% Profit guidance 13.1–13.6% unchanged (previously 2–4%) H1’22 profitability of 11.1% supports trend towards lower end of Following strong organic1) growth of 4.6% in H1’22 and the guided range anticipated revenue development in
Slide 14: CFO report
CFO report 14
Slide 15: CFO highlights
CFO highlights Q2’22 financials – continued strong growth Q2’22 other • Organic growth 5% – driven by Tietoevry Create and • CAPEX of EUR 23.9 million (18.5), representing 3.2% of Tietoevry Banking revenue (2.6) • Adjusted operating margin EUR 78.7 million / 10.7% – • One-time items (OTI) EUR 27.1 m
Slide 16: Seasonally low Q2 cash flow – Net debt / EBITDA 1.6x
Seasonally low Q2 cash flow – Net debt / EBITDA 1.6x MEUR 165 EUR 8 (11) million cash flow from operations 116 • Seasonal net working capital increase of EUR 57 million – mainly driven by liabilities 57 • Impacted by one-time items 25 11 92 169 8 Free cash flow of EUR -34 (116/-27**) million 62 Q221
Slide 17: Attrition and inflation at high levels
Attrition and inflation at high levels High attrition level continues – rolling 12-month attrition stabilized Attrition at 16.3% in Q2’22 (16.5% in Q1’22), compared to 11.7% in Q2’21 % last twelve months (voluntary) 14.6 16.5 16.3 11.7 13.5 Net personnel increase in Q2’22 when adjusting for divestme
Slide 18: Performance drivers – Q3'22
Performance drivers – Q3’22 • Continued good momentum in Tietoevry Create and Tietoevry Banking • Growth in Tietoevry Care back to healthy level Growth drivers • Tietoevry Industry growth impacted by a large customer contract ending in Data Platform Services – negative impact ~3%-points • Efficiency
Slide 19: Recognitions and way forward
Recognitions and way forward 19
Slide 20: Recent recognitions
Recent recognitions Recognized for quality and customer Partner of the year 2022 for Platinum level on global Ecovadis value in Sweden by Radar Microsoft in Finland Sustainability rating 20
Slide 21: Summary and way forward
Summary and way forward Developers of Digital Futures Growth momentum to Efficiency measures in Continued high Strategic review of continue in H2’22 – place to drive attention to employee Tietoevry Banking full-year growth performance in H2’22 – engagement and initiated to unlock its guidance upgrad
Slide 22: Thank you
- ee 2s @ hank you wis tietoeucy