TietoEVRY (TIETOS) CMD 2025 summary

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.