30 November 2022
Tietoevry Corporation STOCK EXCHANGE RELEASE 30 November 2022 8:05 a.m. EET
Tietoevry is holding its Capital Markets Day 2022 today, focusing on a theme of “Accelerating value creation”. The day will provide insights into the company’s strategy execution, business portfolio priorities and new uplifted financial ambitions. The company will share its plans for accelerated value creation and positioning as a scalable software and digital engineering focused company. All six of the specialized businesses will provide insights into their respective markets, business priorities, expansion plans and share their new financial ambitions. In addition, the company will share a summary of objectives for the announced strategic review of the combined Tietoevry Transform and Tietoevry Connect. Tietoevry will also confirm the original schedule and cover the status of earlier announced Tietoevry Banking’s strategic review.
“I’m very excited to be able to today share our plans to accelerate shareholder value by repositioning Tietoevry in the industry as a software and digital engineering centric company and our uplifted financial ambitions. Today’s earlier announcement on a strategic review of our outsourcing oriented businesses, Tietoevry Transform and Tietoevry Connect, as a combined and independent business is a major step in our strategy. We are making firm progress with our strategy and enabling our specialized businesses to be among the best in the market within their respective peer group. The planned actions will accelerate Tietoevry’s strategy implementation and drive attractive growth, profitability and overall shareholder value creation”, says Kimmo Alkio, President and CEO.
Uplifted financial ambition for Tietoevry Group is to reach annual revenue growth of 8–10% and adjusted operating margin (EBITA) of 15–16% by 2025. Furthermore, financial ambitions introduced during the day include maintaining net debt/EBITDA between 1–2 and continuing to increase dividends annually.
The revenue growth and profitability ambition of Tietoevry Group is aggregated from the businesses. The company has laid out long-term financial ambition for each business and will discuss drivers for growth and profitability during the day. The company introduces 2025 financial ambition for each business.
Aggregated growth ambition for software and digital engineering businesses is 12–14% and adjusted operating margin (EBITA) 17–19%, consisting of the following:
| Annual revenue growth1) by 2025 | Adjusted2) operating margin (EBITA) by 2025 | ||||
| Tietoevry Create | 14–16% | 14–16% | |||
| Tietoevry Banking | 10–12% | 16–18% | |||
| Tietoevry Care | 12–14% | 28–30% | |||
| Tietoevry Industry | 8–10% | 20–22% | |||
Aggregated growth ambition for managed services and transformation businesses is 1–3% and adjusted operating margin (EBITA) 9–11%, consisting of the following:
| Annual revenue growth1) by 2025 | Adjusted2) operating margin (EBITA) by 2025 | ||
| Tietoevry Transform | 2–4% | 10–12% | |
| Tietoevry Connect | 1–3% | 8–10% |
1) Mainly organic, adjusted for currency effects
2) Adjustment items include restructuring costs, capital gains/losses, impairment charges and other items affecting comparability
Tietoevry’s Capital Markets Day will start today at 1 p.m. CET and the event can be followed through a live stream. A detailed program and a link to the webcast along with the presentation materials are available on the company’s website. On-demand video will be available after the event.
For further information, please contact
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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