Tieto (TIETO) Investor presentation summary

Market position and business overview

• Holds a leading position in resilient Nordic markets with a strong heritage and global capabilities, serving thousands of customers and generating annual revenue of approximately €1.9 billion.

• Operates across four main business areas: Tech Consulting, Banktech, Caretech, and Indtech, each with a focus on software and digital solutions for specific industries.

• Maintains deep customer relationships, a diversified client base, and a high share of recurring software revenue, supported by a capital-light business model.

• Trusted by major brands in the Nordics and globally, including Ericsson, Nokia, AstraZeneca, and Volvo.

Strategic priorities and growth plans

• Strategy for 2026–2028 centers on becoming a European leader in software and technology consulting within selected industries.

• Four strategic priorities: customer first, simplified core, selective European expansion, and a competitive cost base.

• Targets include revenue CAGR above 5% and adjusted EBITA above 16% by 2028, with business-specific growth and profitability goals.

• Selective expansion into key European markets, aiming for over €500 million in contract value from Europe by 2028.

Financial performance and targets

• Q2 2026 revenue was €427 million, with organic growth at -5% due to weaker consulting demand, but adjusted EBITA margin improved to 14.9% through cost optimization.

• Cost optimization programme on track, delivering €115 million in run-rate savings by Q2 2026, targeting €130 million by end of 2026.

• Net debt/EBITDA reduced to 1.0x, with strong cash flow and a new €90 million share buyback programme launched.

• Updated 2026 guidance: organic growth of -5% to -3% and adjusted EBITA margin of 14.8–15.8%.