Focused, specialized and expansion driven!

Focused, specializedand expansion driven!

KIMMO ALKIO – Pres ident and CEO, T ie toEVRY

TOMI HYRYLÄINEN – CFO

TietoEVRY STRATEGY 2021

Solid foundation to rethink our future

Attractive market with high opportunities

Solid integration progress

Competitive services, software and capabilities

Strong customer base and market position

Time to step ahead and reshape the future!

Expanding data-driven world fueled by hyperconnected data

Personalized

Autonomous& real-time

Care for Privacy & security

Technology driven

Circular & sustainable

Ethical

T HE DATA ECOSYST EM

Customer engagement

Business results

Employee experience

Technology at the core of customer’s businessdriving agility, experiences, innovation and performance

Ti e t oEVRY STRATEG Y 2021

Agility & efficiency

Products Experience

Innovation

CUSTOMER AGENDA

Cloud

TECHNOLOGIES &WAYS OF WORKING

Design

DevOps Data &Analytics

Automation

Software

Technology industry reshaping with cloud as the foundation

Ti e t oEVRY STRATEG Y 2021 Source: Multiple analyst reports (e.g. Gartner) and TietoEVRY analysis, Growth CAGR ‘18-23

-10% -5% 0 5% 10% 15% 20% 25%

Managed traditional

infra

Cloud managed Services

5%

10%

15%

20%

Cloud migration Services

Cloud Consulting & Development

Managed traditional

appsSystem

Integration

Integrated(apps + Infra)& automatedmanagedservices

Data & AnalyticsEnterprise

softwareSaaS

Cloud capacity

PR

OF

ITA

BIL

ITY

G R O WT H

T RADIT IONAL MODERNIZE CLOUD NAT IVE

Distinct competitive drivers as world evolves towards cloud native


Market evolving to high growth cloud native and software

2020 2024

Cloud native and software growth 10 – 20%

Traditional services decline ~-8%

TietoEVRY addressable market – Nordic technology services, global engineering and selective European software

M A R K E T S I Z E

Y E A R

Accelerate business mix change to high growth cloud native and software

Increase the addressable market through focused business choices

MARKET EVOLUT ION

OPPORT UNIT YFOR T ie toEVRY

TietoEVRY reshaping businesses to drive customer value and growth through specialization

End-to-end businesses with full accountabilityand broader options to scale

Clear business choices to capture market growth and expansion opportunity

Drive partnerships to scale in managed application and infrastructure services

Focus investments to expand cloud native capabilities and scalable software businesses

Specialist customer

engagement

Employee learning and

growth

Attractive shareholder

returns

1

2

3

4

S T R A T E G I C C H O I C E S T O D R I V E …

Businesses’ choices to actively capture cloud nativeand software market momentum

B U S I N E S S C H O I C E S


Cloud native development, data and software engineering expanding globallyBusiness Design & Engineering

Transformation and automated managed servicesfor select Nordic customersEnterprise Modernization

Secure multi-cloud capacity driving scale and platforms for customers’ cloud adoptionCloud Platform Services

Open and modular software for Health & Care, expanding Nordic customer base and marketsHealth & Care Software

Modular and integrated software suite for Nordicand global financial institutionsFinancial Services Solutions

Software for core processes in public, energy and industrial sectors, aiming to build scaleIndustry Software

C L O U D N A T I V EA N D S O F T WA R E

M O D E R N I Z E T O C L O U D

Specialized businesses for customers’ efficiency, transformation and innovation agenda


CL O UD NAT I V E AND S O F T WARE M O DE RNI Z E T O CL O UD

Business Design & Engineering

Hyperconnected data, software and cloudat the core of market evolution and customers’ agenda

Design, Data & Software engineering to accelerate digital products and experiences

Open and data enabled software for Nordic health & care experience & efficiency

Financial Services software offered as a service to drive efficiency, speed and compliance

Software for core processes in public sector, utilities, and industrial

Drive enterprise efficiency and agility across business processes, applications and infrastructure

Orchestrate multi-cloud capacity for scaling and securing data assets and sovereignty

Health & Care Software

Enterprise Modernization

Financial Services Solutions

Industry Software

Cloud Platform Services


Specialized businesses building and nurturing talent and expertiseLearning & growth

Communities with leading industry experts enabling professional advancement

Enhanced clarity of personal contribution to customer success and societal impact

End-to-end businesses with own strategies enabling exciting career opportunities

Culture and ways of working reflecting the characteristics of each business

Expert communities

Purposeful work

Clarity on vision

Adaptive culture


Value foundation building on Nordic heritage:Openness, Trust, Diversity

Unlocking learning and growth, through purposeful work and adaptive culture

Attractive business mix to drive financial performance

Value foundation:Openness,Trust,Diversity

• Leading capabilities addressing global market demand• Expand markets and scale incl. M&A


• Customer base and knowledge built over the years• Invest to managed services automation


• Automated operations• Partnerships to drive scale against price erosionCloud Platform Services

• Competitive software with market expansion potential• Investments for growth incl. M&AHealth & Care Software

• Competitive software and as-a-service offering• Investments into Banking-as-a-service for growth and

expansion incl. M&A


• Fit for purpose software and solutions• Competitive software, customer knowledge and

installed baseIndustry Software

L O N G T E R M P O T E N T I A LC U R R E N T


R E V E N U E M I X E B I T A a d j . D R I V E R SG R O WT H

High

High

Medium

Medium

Lower

Lower

Around group average

Above group average

Above group average

Above group average

Below group average

Below group average

Indicative growth profile: High: >8%Medium: 3-8% Lower: <3%

Business profiles with restated numbers to be available prior to Q1’22 report

Investment priorities geared towards sustainable high growth businesses



Cloud Platform ServicesFinancial Services Solutions Industry Software

Health & Care Software Enterprise Modernization

Invest to expand Partner to scale Focus for value

• Invest to accelerate products, services and capabilities

• Prioritized M&A

• Invest in capabilities to drive scale and automated managed services

• Seek partners (operational and structural) to jointly invest and scale

• Optimize investments for selected businesses

• Develop portfolio to increase focus

Active portfolio development to drive focus and scale in all businesses

Unique growth, scale and expansion options for each business


Strategy & Investments

Operational partnerships

Structural actions

OPT IONALIT Y






Industry Software

NORDICS EUROPE GLOBALBUSINESSES

EXPANSION POT ENT IAL

Current primary markets

Geographical expansion mainly driven by cloud native and software businesses

C L O U D N A T I V EA N D

S O F T WA R E

M O D E R N I ZE T O C L O U D

Renewed structure to drive specialized end-to-end businesses

TietoEVRY




EnterpriseModernization

Specialized businesses with broader optionsto scale, including M&A&D

End-to-end businesses (dismantling the matrix) with full operational responsibility covering: • Go-to-market• Business models and service portfolio• Culture, talent and rewarding• Investments and partnerships• Financial performance

Common Group functions driving portfolio development, performance management and efficiency: HR, Operations, Strategy and Finance

Specialized end-to-end businesses to drive fast decision making, experts at customer front and employee attractiveness



Industry Software


New TietoEVRY Executive Management as of January 2022

Managing Directors with end-to-end business and operational responsibility

Group functions and CEO

*Operations include Global Delivery Operations, CIO function, Core Processes, Marketing, Communications and Sustainability/ESG

Business Design &

Engineering Health & Care Software


Tomi HyryläinenChief Financial Officer

Kishore GhadiyaramHead of Strategy

Trond VinjeHead of HR

Malin Fors-SkjævelandHead of Operations*

Kimmo AlkioPresident and CEO



Industry Software



ChristianPedersenManaging Director, Business Design & Engineering

AriJärveläManaging Director, Health & Care Software

Christian SegersvenManaging Director, Financial Services Solutions

AriJärveläManaging Director, Industry Software

SatuKiiskinenManaging Director, Enterprise Modernization

JohanTorstenssonManaging Director, Cloud Platform Services

Financial targets maintained –new strategy support potential for enhanced performance


Accelerating growth to 5% by 2023

EBITA adjusted 15% by 2023

One-time items ~1% of revenues by 2022

Increased dividends annually

Net debt / EBITDA <2 by end of 2022

A C H I E V E D

Improved growth profileand profit

Continued strong cash flow generation

Continued dividendattractiveness

Reduced leverage level enabling investment flexibility

Financial targets as announced at CMD

Solid foundation for improved shareholder returns

Reduced discount to SoTP valuation

Go-live Jan’22 with Q1’22 financial reporting in the new structure


S T R A T E G Y L A U N C H1 3 O C T 2 0 2 1

Q 4 ’ 2 1R E P O R T I N G

Q 1 ’ 2 2R E P O R T I N G

B U S I N E S S A S U S U A L ,Q 1 ’ 2 2 +

• Long-term financial targets maintained

• Q4 and full year actuals withexisting reportable segments

• No business level soft guidance (EBITA Adj) for Q1

• FY22 guidance for the Group

• New reportable segments• Business level soft guidance

(EBITA Adj) for Q2

Clear and transparent transformation into new reporting structure including financial guidance clarity

C M D , H 2 2 0 2 2

• Updated long-term financial targets for the Group and new reportable segments

• End-to-end businesses operational

G O - L I V EJ A N 2 0 2 2

• Restated 2021 financialsin the new structure

• More detailed business descriptions

Ti e t oEVRY STRATEG Y 2021Ti e t oEVRY STRATEG Y 2021



Business Design& Engineering



Industry Software

N E W R E P O R T A B L E S E G M E N T S S T A R T I N G Q 1 / 2 0 2 2


Business Design & Enginering


Industry Software

Health & CareSoftware

FinancialServices

Solutions

I N D I C A T I V E R E V E N U E S I Z I N G

Cloud & Infra

Current reportable segments

International Operations*

* Segment Other

Digital Consulting

Product Dev. Services


Industry Software

Managed infra services, private cloud, end-user services and security

Business with selected customers

Business with selected customers and ERP practices

Design, Cloud, data & software engineering practices

Health & Care Software business

All businesses except for Health & Care Software

Preliminary revenue mapping to new businesses and new reportable segments

Strategy implementation starting with transition to e2e businesses followed by expansion


Drive focus and specialization

2022

Specialized business expansion

2023 - 2024

2024+Pursue European and global markets with proven businesses

• Establish end-to-end specialized businesses• Investment focus to cloud native and software• Portfolio pruning to drive focus• Renewed identity

• End-to-end businesses scaling independently• Accelerate cloud-native and software growth• Realize cloud platform and modernization

partnerships for scale• Portfolio pruning complete and active M&A

• Business Design & Engineering expanding customer base in new markets

• New European markets for Health & Care and Financial Services software (Banking)

Consistent growth and performance drive in all businesses throughout strategy implementation

TietoEVRY STRATEGY 2021

Creating futures with technology

At TietoEVRY, we are creating purposeful technology that reinvents the world for good

We innovate solutions to bring value for all futures, while redefining our own

We are developers of digital futures

Updated identity supporting the strategy from 2022 onwards

Naming conventions for the specialized businesses

Renewed purpose and position to set direction

Summary: Renewed strategy to drive focus, specialization and expansion


Financial targets* maintained – new strategy supports potential for enhanced performance5

Structure and leadership aligned to renewed strategy - Go-live by January 20224

Reshaping TietoEVRY future through specialized end-to-end businesses and prioritized investments3

Growth and expansion opportunity for TietoEVRY by specializing in cloud, data, engineering and software2

Hyperconnected data enabled by cloud is redefining customer priorities and reshaping technology industry1

* Financial targets as communicated at CMD 2020: 5% growth, 15% EBITA adj. by the end of 2023

Documents

Focused, specialized and expansion driven!