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TietoEVRY (TIETOS) investor relations material
TietoEVRY CMD 2025 summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Strategic priorities and transformation
Four strategic priorities: customer first, simplified core, selective international expansion, and a competitive cost base, with a shift to customer-centricity and sharper execution.
Leadership overhaul with 9 of 11 executive team members new, emphasizing fact-based management, accountability, and transparency.
Significant investments in AI, product modernization, and leadership development to drive operational excellence and growth.
Portfolio simplification and cost efficiency programs underway, including the sale of tech services, ongoing restructuring, and a €115 million run-rate savings target by end of 2026.
Selective international expansion aims for over €500 million in European contract value by 2028, focusing on scalable software and partnerships.
Financial guidance and targets
Targets for 2027–2028: more than 5% CAGR top-line growth and over 16% adjusted EBITA margin by end of 2028.
Dividend payout ratio set at 60–80% of net profit, with excess capital allocated to share buybacks or extraordinary dividends.
Leverage target maintained at less than 2x net debt/EBITDA, expected to be reached by 2026.
2026 expected as a transition year with flat or slightly negative growth due to legacy headwinds, but margin expansion anticipated from cost measures and ending of IFRS 5 cost burden.
Growth from 2027 driven by Nordic market share gains, international expansion, and software business acceleration.
Business unit/segment strategies and growth levers
Tech Consulting shifting to a local operating model, focusing on 60 strategic customers, regulated industries, and a competence shift toward AI, cloud, and data, targeting >3% growth and >12% profitability.
Care Tech leverages its modular Lifecare platform to expand from Nordic leadership into a €3.7bn European market, targeting above 7% growth and 28% profitability.
IndTech focuses on three core products for international growth, aiming for over 6% CAGR and 17% profitability, with a shift to higher recurring SaaS revenue.
Bank Tech targets more than 6% CAGR and 18%+ profitability, expanding from a strong Nordic base into selected European markets with modular banking software and AI-driven solutions.
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