Tietoevry's Half-Year Report 2025: Challenging quarter - actions for rapid step change in execution and performance initiated

Tietoevry Corporation HALF-YEAR REPORT22 July 2025, 9:00 a.m. (EEST)

· Soft market conditions continued - organic growth of -4% · Profitability of 9.4% includes 1.3 pp negative impact of IFRS 5-relatedtemporary cost burden · Driving a rapid step change in execution and performance - actions aimingfor EUR 115 million run-rate savings by the end of 2026 · Non-cash impairment of EUR 80 million related to capitalized developmentcosts mainly for the Banking Platform in Norway · Endre Rangnes appointed as President and CEO of Tietoevry - new leadershipteam to focus on customers and growth

On 23 March 2025, Tietoevry announced that it had entered into an agreement todivest its Tietoevry Tech Services business. Starting from the first quarterof2025, Tietoevry has presented its Tech Services business as a discontinuedoperation. The financial information presented in this report concernscontinuing operations, unless otherwise stated. The comparative informationhasbeen restated accordingly. Tietoevry published restated financial informationfor 2024 on 15 April 2025.

The full interim report with tables is available at the end of this release.

Continuing operations 4-6/2025 4-6/2024 1-6/2025 1-6/2024Revenue, EUR million 463.1 478.9 933.9 971.4     Organic growth1), % -4 1 -4 1     Acquisitions and 0 3 0 3divestments, %     Foreign exchange 0 0 0 -1rates, %Total growth, % -3 5 -4 3Organic growth adjusted -3 0 -3 1for working days4), %Operating profit/loss -66.1 30.7 -40.1 72.8(EBIT), EUR millionOperating margin (EBIT), -14.3 6.4 -4.3 7.5%Adjusted2) operating 43.7 51.1 93.5 111.1profit (EBITA3)), EURmillionAdjusted2) operating 9.4 10.7 10.0 11.4margin (EBITA3)), %

Continuing and 4-6/2025 4-6/2024 1-6/2025 1-6/2024discontinued operationscombinedCash flow from operating 51.3 68.1 148.7 139.9activities, EUR millionInterest-bearing net 875.4 932.3 875.4 932.3debt, EUR million

Full-year outlook for 2025 unchangedTietoevry Tech Services is reported as a discontinued operation as from thefirst quarter and, consequently, Tietoevry's guidance reflects continuingoperations.Tietoevry expects its organic1) growth to be in the range of -2% to +1%(revenuein 2024: EUR  1 879.5 million). The company estimates its full-year adjustedoperating margin2) (adjusted EBITA3)) to be 12.0-13.0% (12.0% in 2024).The profitability outlook assumes a negative impact of approx. 1.1 percentagepoints on the adjusted operating margin (EBITA) related to IFRS 5. The impactincludes an estimate of the costs that cannot be allocated to continuingoperations and transition services income after the closing of the divestmentofTietoevry Tech Services.

1) Adjusted for currency effects, acquisitions and divestments2) Adjustment items include restructuring costs, capital gains/losses,impairment charges and other items affecting comparability3) Profit before interests, taxes, amortization of acquisition-relatedintangible assets, goodwill and other intangible asset impairment4) Company estimate

Comment regarding the interim report by Endre Rangnes, President and CEO

A step change in execution and performance

"I am honored and excited to enter the CEO position of Tietoevry. During mynearly three months as the interim CEO of Tietoevry, I have spent a lot oftimeengaging with our people, customers and partners across the businesses.Focusingon areas that constitute the cornerstones of our future success, it has becomeclear that our company stands on a solid foundation. Today, we have a strongcustomer base with active innovation agendas in place. We also have aportfolioof leading-edge vertical software and digital consulting capabilities - and wesee that we can unlock even more potential in these areas going forward.Furthermore, we have a global team of highly talented people who have beenbuilding the leading market positions of our businesses in the Nordics.

While we can recognize our strengths and achievements, we have not succeededindelivering adequate financial performance and have suffered from lack ofgrowthover an extended period of time. Based on our dialogue with several keystakeholders, we need to restore customer trust by strengthening our focus onclients and sales. Considering the highly competitive industry we operate in,our performance in these areas needs to be clearly improved.

Focus on customers, growth and cost base

We now need to take immediate action to get back on track and drive a stepchange in execution and performance. To drive a step change in strategyexecution, we have launched the following near-term focus areas:

· Customer first · Restore growth · Competitive cost base.

As the first steps, we are taking decisive actions to strengthen customer-focused sales capabilities and processes to drive growth. Ensuring acontinuedcompetence shift to lead innovation for the benefit of our customers is ofutmost importance. We are also launching a new cost optimization programmeaiming to build a lean cost structure and adapting our cost level to accountforthe divestment of Tech Services. With the new programme, we seek to achievesavings of EUR 75 million by the end of 2026, in addition to those related tothe initiatives decided in the first half of 2025. Altogether, these measuresare estimated to result in run-rate savings of EUR 115 million by the end of2026. Meeting these significant targets will also mean making some difficultdecisions in the coming months.

Through the next phase with new leadership team

During the summer we have onboarded new members to our Group Executive Team.This team is well equipped to steer the company through the next phase, whichwill be demanding but should also be rewarding to all stakeholders.

Going forward, our strategic priority is clear - we aim to create sustainablevalue by focusing on customers and profitable growth. We foresee acceleratedinternational growth for selected software products and AI-driven digitaldevelopment, and we also strive to enter new geographic markets. As anexample,Tietoevry Care is already making strides in expanding its European marketpresence through a collaboration project at Basel University Hospital inSwitzerland. The inclusion of Tietoevry in the Gartner® Hype CycleT forHealthcare 2025 demonstrates our readiness to introduce our open modular data-driven care software beyond the Nordics. In addition, Tietoevry Banking hasdemonstrated good progress in Norway throughout the year, building confidenceinour aspirations beyond the Nordics.

We will be presenting our strategic priorities in further detail for eachbusiness at the Capital Markets Day in November, focusing on how we will seizethe growth and expansion opportunities, and we look forward to what the monthsahead will bring.

Challenging quarter - while encouraging order backlog

As to the second quarter, we are not satisfied with our performance, withorganic growth of -4% and a profit margin of 9.4%. The continued softness oftheIT market impacted us, especially our Create business. The quarter ended,however, with a strong order backlog, organically up by 14% year-on-year,creating confidence in positive future development. In the second half of theyear, one of the key milestones will be the closing of the Tech Servicesdivestment, expected to take place during the third quarter. The marketremainschallenging, but we anticipate that our growth will improve during the secondhalf. Revenue development coupled with progress in cost optimization measuresand the ending of the negative IFRS 5 impact is anticipated to contribute toourprofitability as well.

In line with our values, we have demonstrated and been recognized for ourstrongcommitment to sustainability. Tietoevry was again selected as one of Europe'sClimate Leaders for 2025 by the Financial Times and Statista. We were alsonamedby Newsweek as one of the World's Greenest Companies 2025, which recognizesthetop 750 publicly listed companies for their environmental sustainabilityperformance. We can truly be proud of our company and our work for the worldaround us."

Financial performance by segment

Revenue, Revenue, Growth, Organic Adjusted AdjustedAdjusted Adjusted % growth, operating operatingoperating operating EUR EUR % million million profit, profit,margin, % margin, %

EUR EUR million million 4-6/2025 4-6/2024 4-6/2025 4-6/2024 4-6/2025 4-6/2024

Tietoevry 198.7 213.9 -7 -7 19.0 24.3 9.611.4CreateTietoevry 145.0 148.2 -2 -2 15.5 14.7 10.79.9BankingTietoevry 58.0 58.6 -1 -3 14.1 15.3 24.426.2CareTietoevry 67.8 67.3 1 -1 7.4 10.1 10.915.1IndustryEliminations -6.4 -9.1 - - -12.3 -13.4 --andnon-allocatedcostsGroup total 463.1 478.9 -3 -4 43.7 51.1 9.410.7

For further information, please contact:

Tomi Hyryläinen, Chief Financial Officer, tel. +358 50 555 0363,tomi.hyrylainen(at) tietoevry.com

Tommi Järvenpää, Head of Investor Relations, tel. +358 40 576 0288,tommi.jarvenpaa (at) tietoevry.com

A teleconference for analysts and media will be held on 22 July at 10.00 a.m.EEST (9.00 a.m. CEST, 8.00 a.m. UK time). Endre Rangnes, President and CEO,andTomi Hyryläinen, CFO, will present the results online in English. Thepresentation (https://tietoevry.events.inderes.com/q2-2025) can be followed onTietoevry's website (https://www.tietoevry.com/investors).

To take part in the questions and answers session after the presentation youwill need to dial in by phone. You can access the teleconference byregisteringon this link (https://events.inderes.com/tietoevry/q2-2025/dial-in). After theregistration you will be provided phone numbers, user ID and a conference IDtoaccess the conference.

The event is recorded and it will be available on demand later during the day.Tietoevry publishes its financial information in English and Finnish.

Tietoevry Corporation

DISTRIBUTIONNasdaq HelsinkiNasdaq StockholmOslo BørsPrincipal Media

Tietoevry is a leading software and digital engineering services company withglobal market reach and capabilities. We provide customers across differentindustries with mission-critical solutions through our specialized softwarebusinesses* Tietoevry Care, Tietoevry Banking and Tietoevry Industry, as wellasour digital engineering business Tietoevry Create. Our 16 000* talentedverticalsoftware, design, cloud and AI experts are dedicated to empowering ourcustomersto succeed and innovate with latest technology.

Tietoevry's annual revenue for the continuing businesses* is approximately EUR2billion. The company's shares are listed on the NASDAQ exchange in HelsinkiandStockholm, as well as on Oslo Børs. www.tietoevry.com

* Tietoevry Tech Services is excluded due to the divestment signed in March2025. The transaction is expected to close during Q3 2025.

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