Inside information: Tietoevry updates its full-year guidance, organic growth approximately 4% (previous 5-7%) and adjusted EBITA 12.6-13.0% (previous 13.0-13.5%)

19 Sep 2023 07:00 CEST

Tietoevry Corporation INSIDE INFORMATION 19 September 2023, 8:00 a.m. EEST

Tietoevry updates its full-year guidance due to short-term weaker demand in a
mixed market environment with economic uncertainty. The weaker economic
environment is resulting in customers' cost savings actions and delayed
purchasing decisions, impacting primarily Tietoevry Create and Tech Services
businesses.

Consequently, Tietoevry updates its outlook for 2023 and expects its organic
growth to be approximately 4% for the year. The full-year adjusted operating
profit margin is expected to be 12.6-13.0%.

In Tietoevry Create, the weaker demand is impacting primarily smaller customer
engagements, which are of less strategic in nature. In Tietoevry Tech Services,
the weaker demand is visible in short-cycle time and material work, while long
-term contracts provide resilience.

Solid performance is anticipated to continue in all software businesses and the
recently acquired MentorMate, a US based digital engineering company, is
performing according to expectations. Tietoevry's resilient business mix, with
approximately two thirds of revenue derived from long-term contracts, and
attention to cost efficiency continue to be a foundation for healthy financial
performance.

Revised outlook for 2023:

Tietoevry expects its organic1) growth to be approximately 4% (revenue in 2022:
EUR 2 928.1 million). The company estimates its full-year adjusted operating
margin2) (adjusted EBITA3)) to be 12.6-13.0%. (13.0% in 2022).

Previous outlook for 2023:

Tietoevry expects its organic1) growth to be 5% to 7% (revenue in 2022: EUR 2
928.1 million). The company estimates its full-year adjusted operating margin2)
(adjusted EBITA3)) to be 13.0-13.5% (13.0% in 2022).

1)Adjusted for currency effects, acquisitions and divestments.

2)Adjustment items include restructuring costs, capital gains/losses, impairment
charges and other items affecting comparability.

3) Profit before interests, taxes and amortization of acquisition-related
intangible assets

Tietoevry will publish its third-quarter interim report on 26 October.

For further information, please contact:

Tomi Hyryläinen, Chief Financial Officer, tel. +358 50 555 0363, tomi.hyrylainen
(at) tietoevry.com

Tommi Järvenpää, Head of Investor Relations, tel. +358 40 576 0288,
tommi.jarvenpaa (at) tietoevry.com

TIETOEVRY CORPORATION

DISTRIBUTION

NASDAQ Helsinki

NASDAQ Stockholm

Oslo Børs

Principal Media

Tietoevry creates purposeful technology that reinvents the world for good. We
are a leading technology company with a strong Nordic heritage and global
capabilities. Based on our core values of openness, trust and diversity, we work
with our customers to develop digital futures where businesses, societies, and
humanity thrive.

Our 24 000 experts globally specialize in cloud, data, and software, serving
thousands of enterprise and public sector customers in more than 90 countries.
Tietoevry's annual turnover is approximately EUR 3 billion and the company's
shares are listed on the NASDAQ exchange in Helsinki and Stockholm, as well as
on Oslo Børs. www.tietoevry.com

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