Tieto (TIETO) AGM 2025 presentation summary

Strategic direction and specialization

• Focus on becoming a software and digital engineering company to maximize shareholder value, with specialization in banking, care, industry, and digital consulting.

• Major milestone achieved with the divestment of Tech Services to Agilitas Private Equity for €300m, supporting the specialization strategy.

• Tech Services divestment expected to close in Q3 2025, with all customer and employee commitments maintained.

Financial performance and impact

• 2024 revenue reached €2.8bn, with organic growth at -2% and adjusted EBITA of €345m (12.3%).

• Operating cash flow improved to €326m, and order backlog strengthened to €3.26bn.

• Dividend of €1.50 per share proposed, yielding 8.8%.

• Divestment of Tech Services will reduce group revenue by €920m but improve organic growth and EBITA margin by ~1.2pp.

• Significant reduction in capital intensity, working capital, and capex by approximately 40% expected post-transaction.

Business segments and capabilities

• Banking: 3,000 fintech experts in 20 countries, serving over 30 markets with AI-enabled SaaS solutions.

• Care: 1,600 experts in 8 countries, delivering AI-driven platforms for health and social care, with 100% Nordic revenue.

• Industry: 1,600 experts in 19 countries, providing industry-specific software and SaaS solutions, with 90% Nordic revenue.

• Create: 9,000+ experts in 23 countries, focusing on cloud, software, and data engineering for global clients.

• Tech Services: 7,000+ experts in 9 countries, primarily outsourcing, cloud, and infrastructure for Nordic clients.