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-related
temporary cost burden
  · Driving a rapid step change in execution and performance - actions aiming
for EUR 115 million run-rate savings by the end of 2026
  · Non-cash impairment of EUR 80 million related to capitalized development
costs mainly for the Banking Platform in Norway
  · Endre Rangnes appointed as President and CEO of Tietoevry - new leadership
team to focus on customers and growth

On 23 March 2025, Tietoevry announced that it had entered into an agreement to
divest its Tietoevry Tech Services business. Starting from the first quarter of
2025, Tietoevry has presented its Tech Services business as a discontinued
operation. The financial information presented in this report concerns
continuing operations, unless otherwise stated. The comparative information has
been restated accordingly. Tietoevry published restated financial information
for 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  1-6/2024
Revenue, EUR million      463.1     478.9     933.9     971.4
     Organic growth1), %  -4        1         -4        1
     Acquisitions and     0         3         0         3
divestments, %
     Foreign exchange     0         0         0         -1
rates, %
Total growth, %           -3        5         -4        3
Organic growth adjusted   -3        0         -3        1
for working days4), %
Operating profit/loss     -66.1     30.7      -40.1     72.8
(EBIT), EUR million
Operating margin (EBIT),  -14.3     6.4       -4.3      7.5
%
Adjusted2) operating      43.7      51.1      93.5      111.1
profit (EBITA3)), EUR
million
Adjusted2) operating      9.4       10.7      10.0      11.4
margin (EBITA3)), %

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

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

1) Adjusted for currency effects, acquisitions and divestments
2) Adjustment items include restructuring costs, capital gains/losses,
impairment charges and other items affecting comparability
3) Profit before interests, taxes, amortization of acquisition-related
intangible assets, goodwill and other intangible asset impairment
4) 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 my
nearly three months as the interim CEO of Tietoevry, I have spent a lot of time
engaging with our people, customers and partners across the businesses. Focusing
on areas that constitute the cornerstones of our future success, it has become
clear that our company stands on a solid foundation. Today, we have a strong
customer base with active innovation agendas in place. We also have a portfolio
of leading-edge vertical software and digital consulting capabilities - and we
see that we can unlock even more potential in these areas going forward.
Furthermore, we have a global team of highly talented people who have been
building the leading market positions of our businesses in the Nordics.

While we can recognize our strengths and achievements, we have not succeeded in
delivering adequate financial performance and have suffered from lack of growth
over an extended period of time. Based on our dialogue with several key
stakeholders, we need to restore customer trust by strengthening our focus on
clients 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 step
change in execution and performance. To drive a step change in strategy
execution, 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 a continued
competence shift to lead innovation for the benefit of our customers is of
utmost importance. We are also launching a new cost optimization programme
aiming to build a lean cost structure and adapting our cost level to account for
the divestment of Tech Services. With the new programme, we seek to achieve
savings of EUR 75 million by the end of 2026, in addition to those related to
the initiatives decided in the first half of 2025. Altogether, these measures
are estimated to result in run-rate savings of EUR 115 million by the end of
2026. Meeting these significant targets will also mean making some difficult
decisions 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, which
will be demanding but should also be rewarding to all stakeholders.

Going forward, our strategic priority is clear - we aim to create sustainable
value by focusing on customers and profitable growth. We foresee accelerated
international growth for selected software products and AI-driven digital
development, and we also strive to enter new geographic markets. As an example,
Tietoevry Care is already making strides in expanding its European market
presence through a collaboration project at Basel University Hospital in
Switzerland. The inclusion of Tietoevry in the Gartner® Hype CycleT for
Healthcare 2025 demonstrates our readiness to introduce our open modular data
-driven care software beyond the Nordics. In addition, Tietoevry Banking has
demonstrated good progress in Norway throughout the year, building confidence in
our aspirations beyond the Nordics.

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

Challenging quarter - while encouraging order backlog

As to the second quarter, we are not satisfied with our performance, with
organic growth of -4% and a profit margin of 9.4%. The continued softness of the
IT 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 the
year, one of the key milestones will be the closing of the Tech Services
divestment, expected to take place during the third quarter. The market remains
challenging, but we anticipate that our growth will improve during the second
half. Revenue development coupled with progress in cost optimization measures
and the ending of the negative IFRS 5 impact is anticipated to contribute to our
profitability as well.

In line with our values, we have demonstrated and been recognized for our strong
commitment to sustainability. Tietoevry was again selected as one of Europe's
Climate Leaders for 2025 by the Financial Times and Statista. We were also named
by Newsweek as one of the World's Greenest Companies 2025, which recognizes the
top 750 publicly listed companies for their environmental sustainability
performance. We can truly be proud of our company and our work for the world
around us."

Financial performance by segment

              Revenue,  Revenue,  Growth,   Organic   Adjusted   Adjusted
Adjusted   Adjusted
                                  %         growth,   operating  operating
operating  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       9.6
11.4
Create
Tietoevry     145.0     148.2     -2        -2        15.5       14.7       10.7
9.9
Banking
Tietoevry     58.0      58.6      -1        -3        14.1       15.3       24.4
26.2
Care
Tietoevry     67.8      67.3      1         -1        7.4        10.1       10.9
15.1
Industry
Eliminations  -6.4      -9.1      -         -         -12.3      -13.4      -
-
and
non
-allocated
costs
Group total   463.1     478.9     -3        -4        43.7       51.1       9.4
10.7

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, and
Tomi Hyryläinen, CFO, will present the results online in English. The
presentation (https://tietoevry.events.inderes.com/q2-2025) can be followed on
Tietoevry's website (https://www.tietoevry.com/investors).

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

DISTRIBUTION
Nasdaq Helsinki
Nasdaq Stockholm
Oslo Børs
Principal Media

Tietoevry is a leading software and digital engineering services company with
global market reach and capabilities. We provide customers across different
industries with mission-critical solutions through our specialized software
businesses* Tietoevry Care, Tietoevry Banking and Tietoevry Industry, as well as
our digital engineering business Tietoevry Create. Our 16 000* talented vertical
software, design, cloud and AI experts are dedicated to empowering our customers
to succeed and innovate with latest technology.

Tietoevry's annual revenue for the continuing businesses* is approximately EUR 2
billion. The company's shares are listed on the NASDAQ exchange in Helsinki and
Stockholm, as well as on Oslo Børs. www.tietoevry.com

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