549300EW2KM4KROKQV31-2023-12-31-en


Report by the Board of Directors1)		Consolidated Financial Statements (IFRS)		FINANCIAL RISK MANAGEMENT AND CAPITAL STRUCTURE		9. Tangible assets	108
Report by the Board of Directors1)		Consolidated Financial Statements (IFRS)		18. Management of financial risks and capital structure	82	10. Investments	109
About Tietoevry	2	Income statement	43	19. Interest-bearing loans and borrowings	87	11. Long-term receivables	109
Highlights of 2023	2	Statement of other comprehensive income	43	20. Financial income and expenses	89	12. Current receivables	109
Five-year key figures	3	Statement of financial position	44	21. Financial assets and liabilities	90	13. Prepaid expenses and accrued income	110
IT market development	4	Statement of cash flows	45	22. Derivatives	92	14. Changes in shareholders' equity	110
Strategy	5	Statement of changes in shareholders' equity	46	23. Cash and cash equivalents	93	15. Provisions	111
Financial performance	6	Notes to the consolidated financial statements (IFRS)		24. Share capital and reserves	93	16. Non-Current liabilities	111
Financial position at the end of the period	10	Notes to the consolidated financial statements (IFRS)		OTHER INFORMATION		17. Current liabilities	111
Investments and development	10	1. Corporate information	48	25. Acquisitions and divestments	95	18. Accrued liabilities and deferred income	112
Order backlog	10	BASIS OF PREPARATION		26. Subsidiaries	97	19. Deferred tax assets and liabilities	112
Personnel	11	2. Material accounting policy information	48	27. Interests in joint ventures	99	20. Contingent liabilities	112
Performance in 2024	12	3. Adoption of new and amended IFRS standards and interpretations	49	28. Related party transactions	101	21. Derivatives	113
Major agreements	12		49	29. Commitments and contingencies	101	22. Management of financial risks	113
Changes in Group structure	16	4. Use of judgements and estimates	49	30. Events after the reporting period	101
Branches	16	PERFORMANCE FOR THE YEAR		Parent company's financial statements (FAS)		Dividend proposal, signatures for the Board of Directors' report and Financial Statements and Auditor's Report	114
Non-financial information	17	5. Segment information	50	Parent company's financial statements (FAS)			114
Shareholders' meeting	28	6. Revenue	53	Income statement	102
Shareholders’ Nomination Board	28	7. Other operating income and expenses	55	Balance sheet	103
The Board of Directors	29	8. Employee expenses	56	Statement of cash flows	104
The President and CEO and operative management	30	9. Income taxes	60	Notes to the Parent Company's Financial Statements (FAS)	105
Auditors	31	10. Earnings per share	63	Notes to the Parent Company's Financial Statements (FAS)	105
Major risks	31	INVESTED CAPITAL AND WORKING CAPITAL ITEMS		1. Net sales	106
Shares and shareholders	34	11. Goodwill and other intangible assets	64	2. Other operating income	106
Dividend	39	12. Property, plant and equipment	69	3. Personnel expenses	106
Events after the period	40	13. Leases	72	4. Other operating expenses	106
Full-year outlook	40	14. Trade and other receivables	75	5. Management remuneration	106
Financial calendar 2024	40	15. Defined benefit plans	77	6. Financial income and expenses	107
Key figures	41	16. Provisions	80	7. Income taxes	107
		17. Trade and other payables	81	8. Intangible assets	108
1) Unaudited

About Tietoevry

Tietoevry Corporation, a public limited liability company headquartered in Finland, is a leading Nordic

digital services and software company that employs over 24 000 experts globally. Tietoevry serves

thousands of enterprise and public sector customers in more than 90 countries. The company's shares are

listed on the NASDAQ in Helsinki and Stockholm and the Oslo Børs.

The company’s services comprise software, data and digital engineering as well as managed services and

transformation, and related capabilities to support customers’ business renewal, innovation and efficient

operations. Tietoevry’s role varies from consulting and advisory, designing and building solutions to

running IT operations. Competitiveness is based on solutions combining best-of-breed technologies with

consulting and integration capabilities, industrialized service delivery and strong global delivery capability.

To capture the momentum of the cloud-native and software market, Tietoevry’s five specialized end-to-

end businesses have full operational responsibility, including go-to-market, service portfolio as well as

investments and partnerships to drive scale and expansion.

The Group's segments are described in the Strategy section.

Highlights of 2023

• The company had a strong start for the year. While the softening of the IT market impacted

performance in the second half of 2023, full-year profitability remained close to the previous

year's level.

• The company took a major step in its transformation. The strategic reviews of Tietoevry Banking

and Tech Services accelerate Tietoevry’s strategy implementation, positioning the company as a

leading software and digital engineering player globally.

• The strategic review of Tietoevry Tech Services progressed as planned. Tietoevry Tech

Services, former Tietoevry Transform and Tietoevry Connect as a combined entity, began

operating as an integrated business as from 1 April 2023.

• The build-up of the operations enabling Tietoevry Banking to function as a fully independent

company was completed during the year. In February 2024, Tietoevry’s Board of Directors

approved a demerger plan to separate Tietoevry Banking. The Board of Directors proposes a

demerger to list the Tietoevry Banking business while reserves the right for other alternatives, if

in the best interest of shareholders.

• In July, the company acquired MentorMate, a digital engineering company headquartered in the

USA, to support Tietoevry Create’s ambition to become a leading digital engineering player

globally.

• In the full year, revenue was down by 2.6%, impacted by negative currency effects. Organic1)

growth was 4%. Adjusted operating profit2) (EBITA) was EUR 358.7 (379.2) million, representing

a margin of 12.6% (13.0). Profitability was affected by higher inflation and slower growth in the

second half of the year.

• Operating profit (EBIT) amounted to EUR 255.6 ( 266.5) million.

1) Adjusted for currency effects and impact from acquisitions and divestments.

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

Five-year key figures


	2023	2022	2021	2020	2019
Revenue, EUR million	2 851.4	2 928.1	2 823.4	2 786.4	1 734.0
Operating profit (EBIT), EUR million	255.6	266.5	382.0	146.7	126.8
Operating margin (EBIT), %	9.0	9.1	13.5	5.3	7.3
Adjusted1) operating profit (EBITA2)), EUR million	358.7	379.2	367.8	355.0	199.4
Adjusted1) operating margin (EBITA2)), %	12.6	13.0	13.0	12.7	11.5
Profit before taxes, EUR million	220.8	242.8	353.8	122.4	100.8
Earnings per share, EUR
Basic	1.45	1.59	2.46	0.80	1.02
Diluted	1.45	1.59	2.46	0.80	1.02
Equity per share, EUR	13.62	14.52	15.38	13.73	14.27
Dividend per share, EUR	1.47	1.45	1.40	1.32	0.64
Capital expenditure, EUR million	85.3	92.9	80.8	83.5	51.4
Acquisitions, EUR million	156.3	—	—	0.6	175.7
Return on equity, 12-month rolling, %	10.3	10.7	16.9	5.7	7.3
Return on capital employed, 12-month rolling, %	9.8	9.9	13.7	5.2	6.9
Gearing, %	56.6	39.5	33.5	54.3	63.4
Interest-bearing net debt, EUR million	911.8	679.1	610.6	883.3	1 070.0
Equity ratio, %	46.7	51.5	51.6	45.9	44.5
Personnel on average	24 181	24 401	23 824	23 788	15 950
Personnel on 31 Dec	24 159	24 320	24 389	23 632	24 322

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

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

See calculation of key figures on page Alternative performance measures.

IT market development

Macroeconomic uncertainty resulted in weaker demand in the latter part of 2023, which primarily

impacted digital engineering services as well as managed services and transformation. In digital

engineering, the weaker demand impacted smaller customer engagements. In managed services and

transformation, the weaker demand was visible in non-critical time and material work.

Tietoevry foresees that IT market softness will continue into 2024. The company expects its addressable

market to grow by 0–2% during the current year. Tietoevry’s business mix provides resilience, as

specialized businesses comprise a significant proportion of long-term customer engagements. Demand for

specialized software is expected to remain stable.

The shift to cloud native and data-driven technologies continues to be at the core of customers’ drive for

agility, productivity and competitiveness as well as IT security and data resilience. Cloud continues to be

the foundation for business agility and data at the core of competitive products and operations. Demand

for cloud native and data services, including Artificial Intelligence, is expected to remain high and to result

in over 10% market growth in this area. In Tietoevry's view, Generative AI (GenAI) will provide diverse

opportunities for enhancing productivity and competitiveness both among its customers and in its own

operations. It is expected to have profound impact in both driving productivity and bringing enhanced

software products and services to customers. To accelerate implementation, Tietoevry is actively working

to discover and concretize the benefits of GenAI by running innovative use cases across industries

together with customers and expanding its network of partners.

At the same time, customers' focus will be on user experience, driving new business opportunities and

growth. Customers also continue to emphasize data sovereignty, security and business continuity as they

adopt cloud technologies, with multi-cloud becoming a default. As customers remain cautious about their

spending, outsourcing demand with embedded transformation to cloud is expected to continue, resulting

in volume decline of up to 10% over time in traditional services. Service providers will be affected by

customer demands for price reductions, limiting their ability to increase prices and margins in the short

term.

Strategy

Cloud and data technologies form the foundation of driving customers' priorities to be agile, competitive,

innovative and secure. The software and technology services industry is continuously advancing with

data-driven and AI-enabled solutions, building on the cloud foundation. Tietoevry’s strategy aims to

capture cloud-native and AI-enabled market opportunities through specialized software, digital

engineering and managed services businesses. Each business aims to be among the best in the market and

all structural (M&A and divestments) and operational actions are considered to enable that agenda.

Specialization drives a best-in-class customer proposition and attracts talent. Shareholder value creation is

also supported by structural actions to unlock the value of the group and individual businesses.

Specialized businesses taking advantage of cloud, data and software market

growth

Specialization forms the cornerstone of Tietoevry’s strategy. The company’s five specialized end-to-end

businesses aim to take advantage of cloud, data and software market growth. The individual businesses

have optionality to build scale and prioritize investments, reflecting the distinct market dynamics, business

proposition and value potential of each. The businesses across digital engineering, software and managed

services and transformation businesses are:

• Tietoevry Create accelerates customers’ digital agenda to create competitive products and

data-driven businesses utilizing design, data and cloud technologies. This is a global business

with software and data engineering at its core.

• Tietoevry Banking is a provider of scalable Banking-as-a-Service platform and leading software

products to drive digital transformation and efficiency for financial institutions.

• Tietoevry Care provides modular and interoperable software, reinventing Nordic health and

social care to enhance the care personnel and citizen experience.

• Tietoevry Industry is a portfolio of distinct competitive software and data solutions across a

wide variety of industry domains. These domains include the public sector, pulp & paper and

utilities.

• Tietoevry Tech Services drives enterprise-wide transformation across customers’ business

processes, applications and infrastructure. Deep customer knowledge, global cloud & data

competencies, automated operations and a multi-cloud platform provider with a full range of

infrastructure choices at scale form its foundation.

The businesses have full operational responsibility, including go-to-market, service portfolio, delivery

capabilities, compensation models, investments and partnerships.

Strategic reviews to accelerate value creation

Tietoevry aims to unlock value through strategic reviews of Tietoevry Banking and Tietoevry Tech Services.

Tietoevry Banking, operating in a distinct fintech market, is expected to scale, build investment capacity

and unlock value creation opportunities in an independent setup.

With the strategic review of Tietoevry Tech Services, the company seeks to drive the competitiveness of its

managed services and transformation business, operating in a market going through a major

transformation. The success of businesses with an outsourcing foundation relies on the scale of

capabilities and infrastructure volumes needed to drive customers’ continuous efficiency, agility and

modernization needs.

Repositioning Tietoevry as a leading software and digital engineering player

globally

Tietoevry seeks to reposition itself as a leading software and digital engineering player globally. An active

M&A agenda together with strategic reviews of Tietoevry Banking and Tietoevry Tech Services form a solid

foundation for the ongoing transformation of the company.

•

Financial performance


	1–12/2023	1–12/2022
Revenue, EUR million	2 851.4	2 928.1
Change, %	-3	4
Organic growth, %	4	6
Operating profit (EBIT), EUR million	255.6	266.5
Operating margin (EBIT), %	9.0	9.1
Adjusted operating profit (EBITA), EUR million	358.7	379.2
Adjusted operating margin (EBITA), %	12.6	13.0
EPS, EUR	1.45	1.59
Net cash flow from operations, EUR million	266.1	276.9
Capital expenditure, EUR million	85.3	92.9

Full-year revenue decreased by 3% to EUR 2 851.4 (2 928.1) million. Exchange rates had a negative impact

of EUR 206 million on revenue compared to 2022. Net impact of acquisitions and divestments was positive

EUR 27 million. Organically, revenue was up by over 4%. Full-year operating profit (EBIT) amounted to EUR

255.6 (266.5) million, representing a margin of 9.0% (9.1).

Operating profit includes EUR -61.2 (-66.0) million in adjustment items. Adjusted operating profit (EBITA)

stood at EUR 358.7 (379.2) million, or 12.6% (13.0) of revenue. Further details on adjustment items are

available in the Alternative Performance Measures paragraph.

Depreciation and amortization amounted to EUR 152.4 (162.3) million, including EUR 59.8 (66.4) million in

depreciation of right-of-use assets and EUR 41.8 (46.7) million in amortization of acquisition-related

intangible assets. Net financial expenses stood at EUR 34.9 (23.7) million. Net interest expenses were EUR

34.1 (19.2) million and net gains from foreign exchange transactions EUR 3.1 (losses 1.4) million. Other

financial income and expenses amounted to EUR -3.9 (-3.0) million.

Earnings per share (EPS) totalled EUR 1.45 (1.59). Adjusted earnings per share amounted to EUR 2.14

(2.36).

Cash flow and investments

Full-year net cash flow from operations amounted to EUR 266.1 (276.9) million, including an increase of

EUR 95.2 million (increase of EUR 82.1 million) in net working capital.

Full-year capital expenditure totalled EUR 85.3 (92.9) million, mainly consisting of capitalized costs for the

development of software, investments in data centres and business-related software licences. Capitalized

costs for industry-specific software amounted to EUR 44.7 (37.2) million. Capital expenditure represented

3.0% (3.2) of revenue.

Financial performance by segment


	Revenue, EUR million	Revenue, EUR million	Growth, %	Organic growth, %	Adjusted operating profit, EUR million	Adjusted operating profit, EUR million	Adjusted operating margin, %	Adjusted operating margin, %
	1–12/2023	1–12/2022	Growth, %	Organic growth, %	1–12/2023	1–12/2022	1–12/2023	1–12/2022
Tietoevry Create	851.2	849.0	0	3	114.0	117.3	13.4	13.8
Tietoevry Banking	567.2	571.1	-1	10	68.9	81.3	12.1	14.2
Tietoevry Care	236.5	231.4	2	6	70.8	72.5	29.9	31.3
Tietoevry Industry	262.6	272.6	-4	5	43.4	46.0	16.5	16.9
Tietoevry Tech Services	1 074.7	1 171.4	-8	-2	85.7	88.9	8.0	7.6
Eliminations and non-allocated costs	-140.7	-167.4	—	—	-24.0	-26.8	—	—
Total	2 851.4	2 928.1	-3	4	358.7	379.2	12.6	13.0

For a comprehensive set of segment figures, see the tables section.

In Tietoevry Create, revenue was organically up by 3%. The year started with solid development, while in

the second half of the year, growth was impacted by the weaker market, particularly for smaller customer

engagements, and negative development in the Ukrainian business due to the war. Profitability improved

towards the year end, following decisive management actions, incl. capacity adjustments executed to

adapt to lower demand.

In Tietoevry Banking, revenue was organically up by 10%. Strong growth was driven by the Wealth,

Financial Crime Prevention, Credit, Cards and Banking as a Service businesses. Profitability was impacted

by increased technology costs and higher costs resulting from legal separation related to the strategic

review of the business. Profitability improved towards the year end, supported by price increases and

efficiency measures, including technology cost optimization.

In Tietoevry Care, revenue was organically up by 6%, driven by strong growth in both Healthcare and

Welfare. Demand in Healthcare was impacted in Finland in the second half of 2023 as customers were

preparing for procurements related to the social and healthcare reform. Continued strong profitability was

driven by scalable software businesses.

In Tietoevry Industry, revenue was organically up by 5%. Growth was solid in the Pulp and Paper

business, case management software Public 360° and Data Platform Services. Profitability remained at a

healthy level throughout the year.

In Tietoevry Tech Services, revenue was organically down by 2%. Its business mix is evolving towards

scalable data, application and cloud services while volumes in traditional infrastructure services and low-

margin hardware and software reselling are declining. Profitability improved despite negative growth and

high salary and technology cost inflation, supported by efficiency measures starting to contribute towards

the year end.

Financial position at the end of the period

The equity ratio was 46.7% (51.5). Gearing was 56.6% (39.5). Interest-bearing net debt totalled EUR 911.8

(679.1) million, including EUR 951.4 (750.0) million in interest-bearing debt, EUR 211.7 (210.0) million in

lease liabilities, EUR 2.2 (2.6) million in finance lease receivables, EUR 29.5 (28.6) million in other interest-

bearing receivables and EUR 219.6 (249.7) million in cash and cash equivalents.

Interest-bearing long-term liabilities amounted to EUR 701.0 (795.3) million at the end of December. The

company has a EUR 300 million bond outstanding, maturing in June 2025. Additionally, interest-bearing

long-term liabilities primarily comprise a new five-year term loan of EUR 174 million from OP Corporate

Bank plc related to the acquisition of MentorMate, a loan from the European Investment Bank and lease

liabilities of EUR 161.4 million.

Interest-bearing short-term liabilities amounted to EUR 462.2 (164.7) million, mainly comprising a EUR 100

million bond, a syndicated term loan, commercial papers, leasing liabilities and the short-term part of the

term loan from the European Investment Bank.

Tietoevry's sustainability-linked revolving credit facility of EUR 250 million was not in use at the end of

December. The revolving credit facility matures in 2027 and has two one-year extension options. It is

linked to selected sustainability targets of Tietoevry and hence supports the company’s commitments to

Science Based Targets.

Investments and development

A significant part of the company’s investments will be made in areas such as its own industry-specific

software, data & analytics and cloud services. Tietoevry’s development costs amounted to around EUR 129

(2022: 124 and 2021: 127) million, representing 4.5% (2022: 4.2% and 2021: 4.5%) of the Group's revenue,

including capitalized costs.

Order backlog

Tietoevry's order backlog amounted to EUR 3 236 (3 327) million at the end of December. Of the backlog,

54% (54) is expected to be invoiced during 2024. Adjusted for the impact of exchange rates, acquisitions

and divestments, the order backlog remained at the 2022 level. The order backlog includes all signed

customer orders that have not been recognized as revenue, including estimates of the value of

consumption-based contracts.

The significance of traditional measures for the order backlog is impacted by the shift from traditional large

outsourcing agreements towards agile methods and consumption-based business models. Additionally,

traditional development programmes are cut into smaller projects.

Personnel

The number of full-time employees amounted to 24 159 (24 320) at the end of December. The number of

full-time employees in the global delivery centres totalled 12 789 (12 633), or 52.9% (51.9) of all personnel.

The 12-month rolling employee turnover stood at 10.1% (14.4) at the end of December. Tietoevry believes

that a normal attrition level is 10–12%.

Group-level salary inflation is expected to be 4–5% on average for 2024. It is offset by a number of actions,

including price increases, further offshoring, automation, management of the competence pyramid and

overall cost efficiency across businesses.

Group personnel and remuneration


	2023	2022	2021
Number of full-time employees, 31 December	24 159	24 320	24 389
Average number of full-time employees	24 181	24 401	23 824
12-month rolling employee turnover, %	10.1	14.4	14.6
Employee benefit expenses, EUR million	1 566	1 597	1 527

Tietoevry’s Human Resources (HR) function facilitates and enables the development of the company's

workforce. It also ensures that the company’s practices and employee experience improve in line with

market changes. The function is led by the Head of HR, while the five business HR leads are responsible for

business-specific HR operations and agendas.The company supports freedom of association and

collective bargaining as defined in the International Labour Organization’s Declaration on Fundamental

Principles and Rights at Work and stated in Tietoevry’s Code of Conduct. European Works Councils (EWC)

are bodies representing European employees. Tietoevry’s management works constructively with the

employee organizations through both the EWC and local works councils and unions to consult on any

significant decision at a European level.

Tietoevry invests in the competence development of its employees. Curiosity and lifelong learning are

crucial aspects of the company’s culture and and a key to success in the dynamic IT industry. The

company’s development and performance management framework, MyGrowth, continues to support

personal and professional growth through dynamic goal setting, continuous feedback, and frequent

development conversations.

Diversity and inclusion is a key area in Tietoevry’s long-term sustainability plan. The Code of Conduct and

the Diversity and Inclusion Charter outline the commitment and principles for diversity and inclusion at

Tietoevry. The company’s five end-to-end businesses implement diversity and inclusion in their respective

units and teams, and each manager ensures diversity in their teams. The overall responsibility for ensuring

a diverse workforce where people feel included lies with the CEO and the Group Executive Management.

During 2023, a specific audit, with a focus on gender diversity in recruitment, was conducted by the Group

Risk Management unit and Internal Audit Team. The results were analysed per business unit and related

roadmaps with development actions created.

Employee engagement activities are followed up through OurVoice, an employee engagement survey. In

the survey, employees provide feedback on three areas that drive engagement: collaboration, growth

opportunities, and leadership. The employee engagement score remained at the previous year’s level at

82/100.

More about the company’s sustainable practices and achievements in the section Non-financial

information.

Performance in 2024

Tietoevry anticipates that the business mix of the company and long-term contracts provide resilience in

uncertain times while visibility to the full year is relatively low. Tietoevry expects its organic growth to be in

the range of 0–3% in 2024. The lower end of the range assumes that market uncertainty will continue in

the second half of the year whereas the upper end assumes that the market will gradually pick up during

the year.

Mitigating high inflation

The company estimates its full-year adjusted operating margin to be 12.0–13.0%, partly depending on the

outcome of growth. Continued high inflation is anticipated to constrain profitability improvement. The

company estimates salary inflation to be 4–5% on average for 2024. Tietoevry is also impacted by overall

high cost inflation, visible in items such as subcontracting, technology costs, premises, electricity and

software licences. The negative impact is mitigated by a number of actions including price increases,

further offshoring, automation, management of the competence pyramid and overall cost efficiency across

businesses.

Ongoing efficiency measures continue to contribute to profitability

Execution of efficiency measures in Tietoevry Tech Services, Create and Banking is expected to support

profitability in 2024. In 2024, one-time costs are expected to be around 1% of revenue. Additionally, costs

for strategic reviews, including transaction costs, legal separation costs, refinancing costs and costs for

operational simplification and efficiency measures in Tietoevry Tech Services, are estimated to be in total

1.5–2% of Group revenue. Of these costs, 1.2 percentage points had materialized by the end of 2023.

Major agreements

Tietoevry has signed a number of new agreements during the period with customers across all the

businesses. However, according to the terms and conditions of these agreements, Tietoevry is not able to

disclose most of the contracts.

In January, Goodyear decided to extend its partnership with Tietoevry Create. Tietoevry has been a

trusted partner for Goodyear, a global tyre manufacturer, for five years and the partnership with the

Proactive Solutions and Fleets Europe unit is now extended. Tietoevry will provide support in the

development of state-of-the-art fleet and tyre management solutions and help to improve the efficiency,

sustainability and competitiveness of Goodyear’s customers, such as commercial fleet operators, by

lowering downtime, costs and emissions. Goodyear will be provided with engineering and operation/

operating services from multiple locations in Eastern Europe.

In January, Tietoevry Banking entered into an extended agreement with Sparebanken Vest for the delivery

of payment and core banking services until the end of 2027 with the option for two additional years. The

agreement also includes the delivery of services related to Financial Crime Prevention and Card solutions.

Sparebanken Vest is an independent listed financial group headquartered in Bergen, Norway.

In January, Tietoevry Create and ASFINAG renewed the SAP frame agreement for another year. ASFINAG,

owned by the state of Austria, focuses on planning, funding, building, maintaining and operating

motorways and expressways in Austria. Tietoevry will support ASFINAG in running, maintaining and

extending their internal SAP system. The continuing transition to SAP S/4 will be a focus area during 2023.

In January, Corteva, an agriscience company based in Switzerland, prolonged its co-operation agreement

with Tietoevry’s Group company Infopulse to scale its software development. Under the contract with an

estimated revenue of over EUR 2 million, the client will work hand in hand with a dedicated team of

Infopulse’s engineers, subject matter experts as well as experts in digital agronomy, smart farming and e-

agriculture. The planned 12-month project aims to help farmers grow their products more efficiently,

cultivating sustainable agricultural practices.

In January, If Insurance decided to extend their comprehensive IT infrastructure agreement with Tietoevry

Connect (currently part of Tietoevry Tech Services). The partnership builds on a long-lasting relationship,

accelerating the customer's cloud modernization agenda. The new agreement extends over five years with

an option for a further two years and has a total order value of SEK 1 billion. The delivery covers IT

infrastructure, including workplace services for about 7 300 employees. The long-term relationship builds

on trust, transparency and deliveries that meet high demands for stability and security.

In January, Arek, a service provider for pension companies in Finland, prolonged its existing six-year

agreement with Tietoevry Connect. Tietoevry will continue as its IT partner in infrastructure services and

enable high service availability for Arek’s customers.

In February, Loomis Automatia, based in Finland, awarded Tietoevry Connect and Tietoevry Create a new

five-year agreement, as a continuation to long-term collaboration. The agreement covers three areas:

infrastructure services, continuous services for ATMs and payment delivery services. The procurement

placed high requirements on efficiency, quality and security improvements with a view to Loomis

Automatia being able to provide and develop high-quality services for Finnish customers also in the future.

In February, Tietoevry Industry concluded an agreement with the Norwegian Tax Authority on data

cleansing services for private businesses. The agreement will provide Tietoevry with an opportunity to sell

Norwegian population register services to private businesses – and use of the population register will help

customers ensure good data quality. Tietoevry was chosen as one of four providers of data cleansing

services for private companies that do not have access to a national register identifier, following a tender

announced by The Norwegian Tax Authority in the autumn of 2022. Tietoevry received the highest score

for service content and quality of the solution. The value of the agreement is EUR 4 million.

In March, Tietoevry Care was awarded a five-year agreement for a social care business system covering

both elderly and family care in Botkyrka municipality, Sweden. Botkyrka municipality has around

95 000 citizens. The social care system solution will deliver a broad range of functionality to support the

municipality's social care, and thanks to its high degree of automation and efficiency it will contribute to

equal treatment of citizens involved in the processes in its scope. The social care business systems will be

delivered as a service and will involve about 1 700 users in Botkyrka municipality.

In March, Kanta-Häme became the 12th wellbeing services county in Finland to use Tietoevry Care’s Health

Data Platform. The platform offers multiple applications supporting care personnel, such as the Patient

360° application. Patient 360° gathers data from different hospital information systems and gives doctors

a holistic view on patients to provide the right care. Patient safety is a priority, and the use of this platform

enhances quality of care for both healthcare staff and patients. The Health Data Platform also meets the

health and social care data privacy and security requirements (CE marked).

In March, Customs Finland chose Tietoevry Industry to build their new case and document management

system based on Public 360° as a joint effort between Tietoevry, Valtori (Government ICT Centre) and the

customer. Public 360° offers a centralized solution for the entire lifecycle management of Customs

Finland's administrative and authority-related cases and documents. The solution environment is intended

for the data processing of security classified content. This contract includes a fixed three-year period.

During the first quarter, Tietoevry Transform (currently part of Tietoevry Tech Services) started a new

project with Telia Finance (part of Telia Company). Telia Finance chose Tietoevry, providing services in

collaboration with a partner, at the end of 2022 to support the migration and transformation of a mission-

critical application serving as the company’s finance engine. It is planned that the migrated solution, fit for

Telia Finance's modern vision and business needs, will go live in the third quarter of 2025.

In May, Tietoevry Care was awarded a contract to deliver a social care system for Family Care in Lund

municipality, the third biggest municipality in the region of Skåne and a long-term customer of Tietoevry.

The four-year contract, with an option to prolong up to a total of 12 years, is based on a Software as a

Service model, a change from the current on-premise model, and contains a number of new functionalities

for the municipality. Previously, Tietoevry won a similar procurement for Elderly Care in Lund in 2022.

In May, Helse Midt-Norge RHF (The Central Norway Regional Health Authority) decided to extend its

application operations agreement with Tietoevry Care for another 18 months to secure stable operations.

The applications include Patient Administration, Open Framework, Laboratory Requisitions and Responses

(RoS) and Patient Journal Intensive Care (PICIS).

In May, Tietoevry Industry and Hamar kommune made an agreement on data services. The client aims to

use technology to create value from data and enable Hamar kommune to realize a smart data hub to

become more insight-driven in its operations and services towards citizens. The services are provided in a

partnership combining technology, design and legal services. The project involves ten other municipalities

and seven intermunicipal agencies, having the option of purchasing this solution. Upon the completion of

this innovation project, Tietoevry will own proprietary rights to the developed software.

In June, Tietoevry Industry and Göteborg Energi made an agreement on a new output management

solution for a billing system that is being installed. The agreement includes the entire output solution,

covering, among other things, digital mailboxes, EDI invoices, printed invoices – and the future invoice, Live

Invoice, as an option. Göteborg Energi made high demands on solution functionalities with improved

customer experience and environmental adaptations. Tietoevry provides Göteborg Energi with a cost-

effective service with high delivery precision and security. The agreement is valid for four years with an

option of four additional years. The value of the agreement for the first four years is close to EUR 5 million.

In June, Tietoevry Create and Offshore Norge, an employer and industry organization for companies with

activities related to the Norwegian Continental Shelf (NCS), made a three-year agreement on delivering a

material management software portfolio and application maintenance. Tietoevry will support the client in

developing and integrating efficient supply chain and inventory management solutions for operators and

suppliers across the NCS. Furthermore, the ambitions of this collaboration include ensuring a sustainable

future for document sharing, equipment management and surplus handling.

In June, Tietoevry Care signed a six-year contract with the municipality of Örnsköldsvik, the second largest

municipality in the Västernorrland region in Sweden with approximately 55 000 citizens. The contract

covers the social care system Procapita, and Lifecare for elderly and family care. The agreement includes

extensions to the current contract, and through new functions, the customer will be able to streamline

processes and operations more effectively, adding value for both the staff and inhabitants of Örnsköldsvik.

In June, the wellbeing services county of Ostrobothnia in Finland chose Tietoevry Care’s Lifecare as its

new client and patient information system. Lifecare will be used in Ostrobothnia's social and primary

healthcare and in specialized medical care. The open data model adapts to the customer’s various

workflows and enables the exploitation of both clinical and operational information, e.g. with the use of

Artificial Intelligence. The shared client and patient information system supports the development of

services in Ostrobothnia and healthcare professionals will be able to focus on caring for patients and

providing seamless health and social care services.

In June, Tietoevry Tech Services won two public tenders with Oslo municipality and signed two new

contracts in Norway for the company’s Unit4 ERP solution. The new four-year agreements, with an option

for annual extension for additional four years, have a total contract value of NOK 280 million. The client

foresees that Unit4 will be an important part of its resource planning and business management.

In July, Tietoevry Create was chosen as the digitalization partner for an IT integration initiative at the

Heinzel Group. Heinzel Group will take over UPM Kymmene Austria and its subsidiaries in Steyrermühl

(Austria) as from 1 January 2024. The plant is planned to be developed as a centre for sustainable

packaging papers and renewable energies starting from 2024. With its paper industry expertise, Tietoevry

was chosen as the partner for the IT integration into the Heinzel Group and will deliver SAP implementation

services.

In August, Tietoevry Create signed a four-year agreement on application maintenance and development

with Flytoget (Airport Express). Tietoevry will support the client in maintaining and developing their

applications, mobile apps for ticket sales and customer service.

In August, Tietoevry Banking signed a contract with The Savings Banks Group Finland to renew the

customer’s lending platform. Tietoevry Banking’s Lending Suite, the leading credit solution in the Nordic

markets, will serve as the foundation of the platform renewal. This strategic partnership is part of a broader

initiative by The Savings Banks Group to invest in shaping the future of its operations and creating next-

generation IT solutions. The agreement with Tietoevry Banking spans over ten years: an initial three-year

setup followed by seven years of continuous services.

In August, Tietoevry Care signed an agreement with Örebro Municipality to deliver the market's most

modern and comprehensive operational support system for social welfare. Örebro Municipality, with

around 158 000 residents, has entered a new co-operation agreement with Tietoevry for the delivery of

Lifecare, a modern and complete solution for social services. The agreement will be effective from 1

January 2024 for a period of six years, with an option for a six-year extension. The advantages for Örebro

Municipality and its residents include a world-class user experience for the staff, and the system also

raises the bar for what the citizens can expect in terms of services, participation and transparency.

In September, Tietoevry Tech Services signed a significant agreement for modern cloud technologies with

DigiFinland to enable secure, scalable, and flexible digital development. The scope of the agreement is

extensive and includes service desk, service governance, capacity and cloud services, cybersecurity

services, consulting services, and an option for end-user services. The value of the agreement is EUR 21

million over the seven-year contract period.

In September, Tietoevry Tech Services signed a new three-year contract with its existing customer

Haugen-Gruppen Nordic. The contract covers management and operation of server infrastructure and

core applications, a network for the customer’s several locations as well as cloud and security advisory

services. The contract has a total value of NOK 18.5 million.

In September, the wellbeing services county of Central Finland adopted Tietoevry Care's partnership

model to implement high-quality and cost-effective health and social services. The model offers customers

an opportunity to influence the contents, priorities and implementation schedule of upcoming features and

functionalities in Lifecare, and hence enables faster system development. In the partnership model, the

development of the Lifecare client and patient information system is carried out in cooperation with the

existing Finnish wellbeing services counties based on the needs of their health and social care

professionals. The South Karelia, South Ostrobothnia, Kanta-Häme, Central Ostrobothnia, Kymenlaakso,

Päijät-Häme and Satakunta counties have been involved in the model since 2021. The eight wellbeing

services counties serve about 1.4 million people in Finland.

During 2023, several wellbeing services counties in Finland started using Tietoevry Care's data platform.

The platform optimizes knowledge-based management and helps to improve the availability and

effectiveness of care. For example, the Western Uusimaa and the Kanta-Häme Wellbeing Services

Counties are among the 12 counties currently utilizing the data platform. It helps counties to estimate the

need for their services by combining data from various systems and sources into a single domain, with the

latest analytics tools available for generating insights. It optimizes the use of data to support faster

decision-making, saves care professionals’ time and helps to facilitate their work, as they no longer need to

collect the data manually. It also provides much-needed cost savings in the dire economic situation.

Tietoevry Create and Gassco are developing the next generation of GBS, Gassco Booking System, and

GMP, Gassco Maintenance Planning, as part of the Application Management agreement that Tietoevry

Create has with Gassco. Gassco is responsible for transporting gas from the Norwegian continental shelf

through an extensive pipeline network to Europe and these solutions are essential for handling the

European energy supply. Tietoevry Create is developing, managing and extending the applications in close

collaboration with the customer.

In October, the City of Stockholm prolonged the agreement with Tietoevry Industry on the Edlevo Student

Administration product for the City of Stockholm's School Platform. The product was initially taken into use

in 2015 with a view to enhancing administrative processes for school administrators and making

administrative data available to other systems within education. The extension is valid until end of 2026.

In October, Cambio Healthcare Systems, the leading Scandinavian supplier of e-health solutions, further

deepened its cooperation with Tietoevry as its IT partner in the area of application operations. Tietoevry

Tech Services will supply the customer with technical teams with deep understanding of Cambio’s

software for operational services. Following a long-lasting partnership, the parties have reached a co-

operation model in which Tietoevry Tech Services supplies infrastructure and services to Cambio, which in

turn supplies healthcare information systems to nine regions in Sweden.

In October, Tietoevry Create signed a contract extension for maintenance and development of all

LocalTapiola’s Contact Center area solutions. The contract also includes a modernization project to

introduce a number of new features for LocalTapiola’s Meeting Scheduling and Video Meeting Solutions.

Over 2 000 of LocalTapiola’s employees currently utilize these solutions, which include voice channel,

secure mail, chat, chatbot, meeting scheduling and video meeting.

In November, Tietoevry Tech Services and LocalTapiola entered into a new collaboration agreement,

focusing on enhanced quality and cost effectiveness by leveraging modernization and cloud services. This

new agreement builds upon and reinforces the long-standing strategic ICT partnership and supports the

implementation of LocalTapiola’s strategy. The contract covers a five-year period with a total value of EUR

44 million. LocalTapiola also has the option to extend the contract for two additional years. The agreement

demonstrates Tietoevry’s strong customer-centric approach and ability to implement comprehensive ICT

modernization that supports LocalTapiola’s business needs.

In November, the Wellbeing Services County of North Ostrobothnia chose Tietoevry Care to consolidate 14

separate Electronic Health records instances into one centralized solution. Furthermore, the system will be

updated to the newest Lifecare version. The consolidation will enhance usability for end-users via simpler

maintenance and troubleshooting. Maintaining one central system is also more cost efficient and secure.

Value of the agreement is EUR 4 million.

In December, the Eco-Lighthouse Foundation signed a contract with Tietoevry Create to further develop

the foundation's Eco-Lighthouse Portal. Over 10 000 businesses, ranging from small and medium-sized

individual enterprises to large corporations and municipalities, are certified by Eco-Lighthouse. Eco-

Lighthouse certification is recognized by authorities for public procurement and approved as

environmental documentation in tender competitions. The solution supporting the foundation’s work and

customer interaction has been developed and maintained by Tietoevry Create. The duration of the frame

agreement is three years with options to extend.

In December, the company announced that Tietoevry Banking won a Nordic Tier 1-bank contract to deliver

card issuing and payments software solutions. Tietoevry Banking has a mandate to undertake a major

overhaul of the card issuing and payments infrastructure. The company will deliver a market-leading SaaS

solution that will enable a wide range of modern payment services including credit and debit cards for

households and corporate clients and digital wallets. Specifically, Tietoevry Banking will upgrade the Card

Management System for their client’s entire portfolio of more than 5 million cards which are used for

around 200 million transactions on a monthly basis.

In December, Norion Bank chose Tietoevry Industry to deliver a Multichannel solution across the Nordic

countries and Germany. Collector Bank, currently Norion Bank (following a name change in 2023), has

been Tietoevry’s customer since 2015. The client's robust confidence in Tietoevry is largely attributed to

effective support and the delivery teams that have worked consultatively and proactively with Norion

Bank.

In December, Tolletaten extended its agreements with Tietoevry Industry on network delivery, utilizing

Tietoevry Industry’s BIX – Business Information Exchange solutions. Through the agreements, Tietoevry is

supporting the handling of all customs declarations between businesses and the Norwegian customs

authorities – in practice, all import and export of goods across the Norwegian border. The agreement is

critical to the society and the customer has set very high requirements for uptime. In 2023, Tietoevry

delivered 100% uptime.

In December, Tietoevry Tech Services made a new agreement with AFRY AB. The agreement, covering IT

outsourcing and introducing AIOps/DigiOps for efficient platform management, ensures flexible and

scalable services to support growth and helps AFRY obtain a cost-efficient, modern and productive

workplace. The partnership covers management and support for IT services to AFRY’s global IT

organization worldwide.

In December, Gassco made several purchase orders based on the IT main agreement with Tietoevry within

different consulting areas: network and security, server and datacenter, service desk, OT (Operational

Technology) application operations, cloud and hardware/software deliveries. The orders were made for

deliveries in 2024. After 20 years of partnership, the scope of the collaboration between Gassco and

Tietoevry has expanded, proving the ability to adapt, innovate, develop and collaborate together, and

providing Gassco's owner, partners and customers with increased opportunities for safe and stable

operation of Norway’s gas deliveries.

In December, Tietoevry Create expanded its foothold in consulting and design for social and healthcare

services by winning a tender for professional services, organized by DigiFinland. The call for tenders

included two areas: procurements, agreements, benefit indicators, a business model and a pricing model,

as well as design, service design and joint development. The procurement was put out to tender under the

Hansel IT consulting 2023–2028 DPS framework agreement. Tietoevry Create was selected as the primary

partner as its proposals received the best ratings for expertise and team interviews. Tietoevry Create’s

extensive expertise in the design of social and healthcare services and customer-focused design played a

decisive role.

Changes in Group structure

Tietoevry established new companies in countries such as Romania and Malaysia during the year.

Furthermore, new companies related to the strategic reviews of Tietoevry Banking and Tietoevry Tech

Services were established in Estonia, Finland, India, Latvia, Lithuania, Norway, Poland and Sweden.

Tietoevry acquired MentorMate, LLC in the US, MentorMate Bulgaria EOOD and MentorMate Paraguay

S.R.L. in July.

Branches

The Group has branches in France, Latvia, Norway, Ukraine and Sweden.

Non-financial information

This section describes Tietoevry’s sustainability activities as required by Chapter 3a of the Finnish

Accounting Act on non-financial information (NFI). The linkages between NFI areas and Tietoevry's

sustainability focus areas are identified in the chart describing policies and processes. More information is

available in the Sustainability Report, which is partly assured by an external partner.

Tietoevry's business model

The company’s services comprise software and digital engineering as well as managed services and

transformation, and related capabilities to support customers’ business renewal, innovation and efficient

operations. Tietoevry’s role varies from consulting and advisory, designing and building solutions to

running IT operations. Competitiveness is based on solutions combining best-of-breed technologies with

consulting and integration capabilities, industrialized service delivery and strong global delivery capability.

To capture the momentum of the cloud-native and software market, Tietoevry’s five specialized end-to-

end businesses have full operational responsibility, including go-to-market, service portfolio as well as

investments and partnerships to drive scale and expansion.

Management of NFI topics

Tietoevry’s highest governance body, the Board of Directors, is accountable for guiding the company

strategy on environmental, social and governance issues. Decision-making on and oversight of the

management of Tietoevry's impact is delegated to Tietoevry's Sustainability Steering Group (SSG), which

reports at regular intervals to the Group Executive Management and the Board. The SSG is chaired by the

Chief Sustainability Officer and represents different Tietoevry functions and units, with many members

from the Group Executive Management (GEM).

The SSG is responsible for preparing the sustainability section of Tietoevry’s annual report. The Audit and

Risk Committee (ARC) of the Board reviews the NFI on an annual basis, including reviewing performance

against sustainability goals and the management of sustainability-related risks. Operational sustainability

work is facilitated by the company’s Sustainability Team led by the Chief Sustainability Officer, who is also

responsible for Tietoevry’s sustainability policies and processes.

During 2023, Tietoevry’s management and the Board formally reviewed and discussed sustainability-

related topics on six occasions. For example, the Corporate Sustainability Reporting Directive (CSRD) and

its implications for Tietoevry was presented to the management in September and to the Board in June

and December. Other topics discussed were, for example, sustainability-related risks, the company’s

societal engagements and the Group's new long-term sustainability plan, which was developed during the

year. Review of operational and business-oriented sustainability topics is delegated to the SSG, which

meets at a minimum every second month.

In 2020, Tietoevry launched its Sustainability Strategy: Game Plan 2023, supported by a materiality

analysis to identify and prioritize the most important sustainability topics. This analysis continued to form

the basis for the company’s sustainability strategy and the reporting in accordance with GRI Standards.

The strategy is twofold: it focuses both on the continuous development of Tietoevry’s responsible

operations, and on the business impact opportunities that the company has together with its customers.

Responsible operations consist of three key themes: climate action, ethical conduct, and an exciting place

to work. Each theme includes publicly stated goals, and the related action plans, implementation and

reporting are managed by the designated responsibility area owners and data partners. The goals and

results for responsible operations in 2023 are presented further down in this section. Please note that

additional sustainability-related goals are presented in the Sustainability report. The business impact

opportunities include a range of solutions and services that can improve customers’ sustainability

performance and create a positive impact on society. For example, development of ethical software and

helping customers to optimize their production and logistics, as well as providing support in the re-use and

recycling of material. These opportunities are driven by each of Tietoevry’s five businesses and supported

by the Sustainability Team. The Sustainability Strategy 2023 is managed according to Tietoevry’s

sustainability management process, which follows the United Nations (UN) Global Compact Management

Model and the GRI Standards. Linkages to the UN Sustainable Development Goals, which are considered a

strategic tool in enabling corporations to contribute to a more sustainable society, are established by

applying principled prioritization. The management of the responsibility areas, as defined in the strategy –

including policies, processes, due diligence and escalation channels – is illustrated in the chart in this

section.

2023 was the final year for the company’s Sustainability Strategy, launched in 2020, although certain goals

extend beyond the set timeframe. Tietoevry is making good progress towards most of the goals while the

work to meet those with a longer time horizon continues. Results for each sustainability area are

introduced in a separate table in this section. The Sustainability report provides comments and reflections

on the performance concerning the Sustainability Strategy: Game Plan 2023. Tietoevry has initiated a

project to create a new value-driven long-term plan for the Group, grounded in each of the end-to-end

businesses. The forthcoming long-term plan is scheduled for approval by the management and

presentation to the Board in the early part of 2024, followed by external publication. Several members of

the management have been involved in the development of the new long-term plan.

Tietoevry’s ethical guidelines are summarized in the Code of Conduct policy, which applies to all

employees and company representatives of Tietoevry, and in a separate Supplier Code of Conduct rule

applied to any third party contributing to the company’s services, products, and other business activities.

Both documents are based on the UN Global Compact, the UN Guiding Principles on Business and Human

Rights, OECD Guidelines for Multinational Enterprises, and ISO 14001. The policies encompass all areas of

responsibility, interconnected with other policies addressing specific topics and detailed rules. They

address legal, certification, and best-practice requirements and undergo annual reviews.

Tietoevry has a Group-wide internal whistleblowing channel, which is also available to external parties

such as customers and suppliers. The Tietoevry Whistleblowing Channel is operated by an external service

provider. Whistleblowing notifications concerning matters such as possible Code of Conduct violations are

investigated confidentially through a predefined process by the Group Compliance Officer or, if requested

by the whistleblower, by a designated point of contact at certain subsidiary companies. Cases of a severe

or sensitive nature are also referred to the Escalation Committee, which consists of the Group Compliance

Officer, Head of Corporate Governance, Compliance and M&A, Head of Legal and Compliance, Head of

Risk Management and Internal Audit, and Head of HR. If a whistleblower notification relates to managers

who are members of the Group Executive Management – including the CEO – the Chair of the Audit and

Risk Committee of the Board of Directors will be informed. If a whistleblower notification involves

managers who directly report to Group Executive Management, the CEO will be informed.

In the case of serious or especially sensitive whistleblowing cases, the Group Compliance Officer will

prepare a report for submission to the Audit and Risk Committee. For each such case, the Escalation

Committee will consider whether the CEO or Board of Directors should also be informed. Biannual reports

are prepared for the Audit and Risk Committee, covering aggregated information about notifications

received through the whistleblowing channel, cases under investigation, cases closed, and rectifying

measures taken. In addition, responsibility areas have separate channels for incident reporting and

continuous improvement.

Main risks for negative impacts in the operating environment

The aim of Tietoevry’s internal control framework is to ensure that operations are effective and well

aligned with the company’s strategic goals. This includes identifying potential negative impacts that

Tietoevry might have on its operating environment, and escalating the company’s mitigation measures if

necessary. The internal control framework is intended to ensure correct, reliable, complete and timely

financial reporting and management information. The framework endorses ethical values, good corporate

governance, and risk management practices. Risk management and major risks are described in detail in

the Corporate Governance Statement.

Tietoevry applies a systematic risk management approach to improve the efficiency and control of

business operations, as well as to manage business continuity and profitability. The risk management

framework consists of the risk management organization and related policies, processes, tools and

common ways of working. The risk management organization develops and maintains the company’s risk

management framework, including risk reporting, risk management governance and follow-up of risk

exposures consisting of strategic, financial, operational, compliance, people and ESG risks. During 2023,

efforts to improve the corporate risk management framework continued. For example, the risk matrix has

been improved to ensure that ESG factors each have their own impact scales, facilitating the assessment of

ESG-related risks. During 2024, awareness-raising activities are planned to ensure that the updated risk

management framework is being properly used to better enable the company to capture ESG-related risks.

The risk management organization consists of the Corporate Risk Management Unit and nominated Risk

Managers in the businesses. All management levels are accountable for managing risks to an acceptable

level, within their respective areas and ensuring that the risk management framework is implemented and

integrated into all relevant processes and operations. Management demonstrates visible commitment and

support and is responsible for ensuring continuous improvement and development of the risk management

practices.

Tietoevry identifies ESG-related risks as both potential adverse effects on people and the planet arising

from its activities across the value chain, as well as adverse effects on the company's financial

performance resulting from external influences. This encompasses reputational considerations, where

negative publicity may result in lower sustainability index scores or audit discrepancies by independent

parties, possibly leading to customer trust loss and penalties. Non-compliance with regulations like GDPR

may result in regulatory interventions, penalties, or customer-imposed sanctions. Insufficient controls, low

anti-corruption awareness, or an unsupportive organizational culture can lead to fraudulent or illegal

actions, with consequences ranging from tender disqualification to sanctions. Mitigation measures include

compliance training, enhanced controls, audits, and follow-ups.

Stress-related health issues, discrimination, and harassment pose significant human and labour rights risks

at Tietoevry and consequently hinder employees from reaching their full potential. The company

addresses these risks systematically through regular employee surveys, a whistleblowing channel, and

global/local hybrid-working guidelines. Operational disruptions may occur if key resources are unavailable

due to extended sick leaves. Tietoevry emphasizes diversity and inclusion in its culture, considering it

essential for competitiveness in the technology industry, with a strategic focus on innovation, delivery

capabilities, and employee engagement.

Tietoevry's supplier base comprises both direct and indirect suppliers, with potential supply chain risks

related to the environment, human and labour rights, and corruption. Tietoevry strives for a fair and green

supply chain in which the company neither causes nor contributes to negative impacts on people and the

planet. Severe breaches of international conventions may lead to contract terminations by customers or

sanctions from authorities. Tietoevry addresses these risks through its responsible sourcing programme

and onboarding practices, subject to compliance and audit activities.

Tietoevry identifies and addresses environmental risks through its Environmental Management System and

includes risks related to offices and data centres, equipment, waste handling, and business travel. The

environmental aspects and associated impacts are assessed once a year and in connection with any

significant change, such as new business areas or products. Environmental risk analysis includes

identifying, evaluating and summarizing significant environmental aspects in the environmental aspect

Proper management of these aspects is essential for maintaining ISO certification (ISO 14001,

Environmental Management) and enhancing the company's appeal as a supplier, partner, and employer.

Tietoevry strives to mitigate the contribution to climate change by reducing its own carbon emissions,

increasing energy efficiency, and helping customers to reduce their carbon emissions with the company's

technology solutions. During 2023, Tietoevry continued to work towards reducing its emissions in line with

the ambitions approved by the Science Based Targets initiative. To improve the understanding of

Tietoevry’s exposure to climate-related risks and opportunities, an analysis aligned with the Task Force on

Climate-related Financial Disclosures (TCFD) recommendations was carried out during 2023. The findings

have informed the company’s double materiality assessment and the identified risks will be integrated in

the enterprise risk management system.

Physical climate change impacts, such as changes in precipitation, volumes of snow and ice, rise in sea

level, hurricanes, and cyclones as well as access to natural resources, may have an impact on Tietoevry or

on strategic partners in the supply chain. Geotechnical assessments are part of the company's preliminary

work prior to any new construction of offices or data centres. Back-up centres ensure continuity of

customer operations even in cases of severe consequences from climate change.

Policies and processes on NFI matters


Sustainability areas	Ethical conduct	Climate action	Exciting place to work

	1. Business ethics and anti-corruption	5. Energy usage and greenhouse gas emissions	7. Diversity and inclusion

	2. Human rights	6. Circular economy practices	8. Employee experience

	3. Cybersecurity and privacy

	4. Responsible sourcing

Policies	Policies, rules and guidelines*
Policies	Code of Conduct policy (1, 2), Non-audit services rule (2, 3), Anti-corruption rule (1, 2), Whistleblowing rule (1, 2, 3, 7, 8), Competition rule (1, 2), Source to Pay policy (4), Supplier Code of Conduct rule (1, 2, 4, 5), Environmental policy (4, 5, 6), Information classification rule (3), Security policy and Security rule (3), User Security rule (3), Privacy policy (3), AI policy and AI rule (1, 3), Health and Safety policy (1, 8), HR policy (1, 2, 7, 8), Insider rule (1), Public Authority Request rule (1, 3), Human rights policy (1, 2, 3, 4), Travel rule (5), Know your counterparty rule (1, 4)

Due diligence processes	Internal and external audits (1, 2), Governance, risk and compliance management (1, 2, 3), Sourcing to pay (4), Supplier self-assessment (4), Environmental management process (EMS) ISO14001 (4, 5, 6), ISO27001 (3), ISO31000 (3), ISAE3402 audits in Data Centers (3), ISAE 3000 Assurance over non-financial information (1, 2, 3, 4, 5, 7, 8), Information and cyber security audits and assessments (3), CDP Climate Change program (4, 5, 6), HR processes (1, 7, 8), Employee engagement survey (8), Human rights impact assessments (1, 2, 7), Opportunity Management process (1, 3)
	Sustainability management processes, sustainability materiality assessment for Sustainability Game Plan 2023

	Whistleblowing channel

*The numbers following each policy, rule and guideline relate to the numbering of the sustainability areas

Goals and results for each sustainability area


Responsibility area	Goal	Result 2020	Result 2021	Result 2022	Result 2023	UN Sustainable development goal
ETHICAL CONDUCT
Human rights	2023: Conduct a formal Human Rights Impact Assessment for a business entity	Assessment to be conducted in 2021	Group-wide human rights risk screening conducted in 2021 with completion in 2022	In progress	Completed
Cybersecurity and privacy	2023: Zero substantiated complaints concerning breaches of customer privacy and losses of customer data1)	Zero	Zero	Zero	Zero
Business ethics and anti-corruption	2023: 90% completion of ethics training (CoC e- learning)2)	91%	93%	96%	96%
Business ethics and anti-corruption	2023: 100% confirmation of receipt of a whistleblowing notification within four business days of receipt	100%	100%	100%	100%
Responsible sourcing	2023: 100% of new or renewed suppliers agreeing to Tietoevry’s Supplier Code of Conduct3)	100%	99%	100%	100%
CLIMATE ACTION
Energy usage and GHG emissions	2023: 80% reduction of scope 1 and 2 GHG emissions by 2023	Baseline	44% reduction	70% reduction	84% reduction
Energy usage and GHG emissions	2023: 100% carbon-free electricity in all data centres and offices	80%	92%	95%	99%
Circular economy practices	2023: 100% reuse and recycling of hardware4)	Not measured	Internal: 70%, Customer: 86%	Internal: 93%, Customer: 95%	Internal: 93% Customer: 98%
EXCITING PLACE TO WORK
Diversity and inclusion	2026: 40% female employees, 2030: 50% female employees5)	29% female employees	29% female employees	31% female employees	31% female employees
Employee experience	2023: Employee engagement score >75	76/100	78/100	82/100	82/100

1) Substantiated complaints regarding customer privacy and losses of customer personal data is defined as security incidents where national authorities have issued financial fines to Tietoevry related to the topic.

2) Measured on an annual basis

3) Scope: Agreements made through Procurement function. Note that scope also includes suppliers’ versions of Codes of Conduct agreed by our Chief Sustainability Officer.

4) Scope: Result based on reuse of returned devices (mainly laptops). Data accuracy: data is based on our main hardware supplier’s reports. This supplier provides close to 70% of Tietoevry’s devices. Baseline for measurement is FY2021.

5) Permanent employees (headcount)

EU Taxonomy reporting

The digital transition is described as a key enabler for achieving a more sustainable future.

Through leading technologies and the smart use of data, Tietoevry can positively impact

the environment and build solutions that can reduce customers' environmental footprint.

At Tietoevry, these kinds of enabling services and solutions include, for example, offerings

supporting customers with transitioning to a circular economy. Furthermore, the company

can reduce emissions in its own operations, such as at its data centres.

Mobilizing sustainable investments towards a low-carbon and resilient economy

The European Union has set a clear target of becoming the world’s first climate-neutral continent by 2050.

To support investment into sustainable projects, the EU has launched a classification system for

sustainable business activities, the EU Taxonomy.

The European Commission adopted the Climate Delegated Act in 2021, containing the two first

environmental objectives: 'Climate change mitigation' and 'Climate change adaptation'. The remaining four

objectives were adopted in 2023 and some new activities were also added to previously adopted

regulation.

Reporting according to the EU taxonomy

Companies that fall under the EU’s Non-Financial Reporting Directive must report how well their operations

match the EU Taxonomy. For reporting on the financial year 2023, companies report both taxonomy-

eligible and taxonomy-aligned KPIs of revenue as well as capital and operating expenditure for the first

two environmental objectives. For the four additional objectives, companies need to report only

taxonomy-eligible KPIs. For reporting on the financial year 2024, both taxonomy-eligibility and -alignment

will have to be disclosed for all six environmental objectives.

In order for an activity to be classified as aligned, it should comply with technical screening criteria defined

by the EU. According to technical screening criteria, an activity should ‘substantially contribute’ to at least

one environmental objective and avoid causing ‘significant harm’ to any of the other five objectives.

Furthermore, the company should comply with minimum safeguards.


Objective	Reported since	Reporting scope in 2023
Climate change mitigation	2021	Eligibility and alignment
Climate change adaptation	2021	Eligibility and alignment
Sustainable use and protection of water and marine resources	2023	Eligibility
Transition to circular economy	2023	Eligibility
Pollution prevention and control	2023	Eligibility
Protection and restoration of biodiversity and ecosystems	2023	Eligibility

Proportion of turnover1) from products or services associated with taxonomy-aligned economic activities

Financial year 2023

Substantial Contribution Criteria

DNSH criteria ('Does Not Significantly Harm')

Economic activities (1)

Code (2)

Turnover (3)

Proportion of

turnover (4)

Climate change

mitigation (5)

Climate change

adaption (6)

Water (7)

Pollution (8)

Circular economy

(9)

Biodiversity (10)

Climate change

mitigation (11)

Climate change

adaption (12)

Water (13)

Pollution (14)

Circular economy

(15)

Biodiversity(16)

Minimum

safeguards (17)

Proportion

of taxonomy-

aligned (A1)

or eligible

(A2) turnover

in 2022 (18)

Category

enabling

activity (19)

Category

transitional

activity (20)

EUR

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y/N

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1 Environmentally sustainable activities (Taxonomy-aligned)

Turnover of environmentally sustainable activities

(Taxonomy-aligned) (A.1)

0.0

of which enabling

0.0

of which transitional

0.0

A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

EL;

N/EL

EL;

N/EL

EL;

N/EL

EL;

N/EL

EL;

N/EL

EL;

N/EL

Data processing, hosting and related activities

CCM8.1

528.0

19%

N/EL

19%

Product-as-a-service and other circular use-and

result-oriented service models

CE5.5

40.0

N/EL

n/a

Provision of IT/OT data-driven solutions and

software

CE4.1

7.5

N/EL

n/a

Turnover of taxonomy-eligible but not environmentally

sustainable activities (not taxonomy-aligned activities)

(A.2)

575.6

20%

19%

A. Turnover of taxonomy-eligible activities (A.1+A.2)

575.6

20%

19%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Turnover of taxonomy-non-eligible activities

2 275.8

80%

Total

2 851.4

100%

1) 'Turnover' equals 'revenue' in Tietoevry's financial reporting

Revenue

Tietoevry’s revenue amounted to a total of EUR 2 851.4 (2 928.1) million in 2023 (Notes 5 and 6 to the

Financial Statements), of which EUR 575.6 (544.2) million, or 20% (19%) was eligible. The largest share of

Tietoevry’s eligible revenue comes from data platform services, provided by Tietoevry Tech Services.

These services fall under activity CCM8.1 ‘Data processing and hosting and related activities’ and

contribute to 'Climate change mitigation'. In 2022, eligible revenue of EUR 544.2 million consisted solely of

data platform services. In 2023, revenue for these services was down to EUR 528.0 million, impacted by

exchange rates.

The proportion of eligible revenue at the Group-level was supported by a number of offerings contributing

to the new objective 'The transition to circular economy' being classified as eligible. These offerings fall

under activities CE4.1 'Provision of IT/OT data-driven solutions and software' and CE5.5 'Product-as-a-

service and other circular use- and result-oriented service models'. Tietoevry's eligible solutions and

services with a total revenue of EUR 47.5 million, supporting circular economy, are being provided and

developed across businesses. Leasing Platform in Tietoevry Banking and Financing in Tech Services are

examples of such offerings.

While several of the company's products and services have positive effects on environmental

sustainability and are closely linked to economic activity CCM8.2 ‘Data-driven solutions for GHG emissions

reductions’ under 'Climate change mitigation', revenue for any of those is not deemed eligible. This is due

to the fact that climate change mitigation is not the predominant aim of offerings in the manner described

in economic activity CCM8.2.

Tietoevry does not report any eligible revenue or investments for offerings contributing to the objective

'Climate change adaptation'. Regarding the new objectives, the company has identified offerings which

match with economic activities contributing to the objective 'The transition to circular economy'. Economic

activities described under the other new objectives are currently not relevant for Tietoevry.

Alignment assessment was carried out for offerings eligible for the two first objectives. Regarding data

platform services, the assessment was conducted at the data centre level. Tietoevry concluded that the

eligible offerings for economic activity CCM8.1 ‘Data processing and hosting and related activities’ (Climate

change mitigation) to a large degree met the technical screening criteria, except for the criteria regarding

the global warming potential (GWP) of refrigerants used in the data centre cooling system. The

replacement refrigerants to those helping to lower the GWP and meet the requirements, however, might

initially result in an increase of energy consumption and related GHG emissions - and therefore is not in

line with the company's environmental goals.

Following the assessments for technical screening criteria, the company does not deem any of its revenue

as aligned. Alignment assessment for offerings generating eligible revenue for the four new objectives has

also been initiated.

Proportion of capital expenditure from products or services associated with taxonomy-aligned economic activities

Financial year 2023

Substantial Contribution Criteria

DNSH criteria ('Does Not Significantly Harm')

Economic activities (1)

Code (2)

Capex (3)

Proportion of

capex (4)

Climate change

mitigation (5)

Climate change

adaption (6)

Water (7)

Pollution (8)

Circular economy

(9)

Biodiversity (10)

Climate change

mitigation (11)

Climate change

adaption (12)

Water (13)

Pollution (14)

Circular economy

(15)

Biodiversity(16)

Minimum

safeguards (17)

Proportion

of taxonomy-

aligned (A1)

or eligible

(A2) capex in

2022 (18)

Category

enabling

activity (19)

Category

transitional

activity (20)

EUR

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y/N

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1 Environmentally sustainable activities (Taxonomy-aligned)

Capex of environmentally sustainable activities

(taxonomy-aligned (A.1)

0.0

of which enabling

0.0

of which transitional

0.0

A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

EL; N/

Data processing, hosting and related activities

CCM8.1

33.5

26%

N/EL

29%

Acquisition and ownership of buildings

CCM7.7

33.4

25%

N/EL

31%

Transport by motorbikes, passenger cars and light

commercial vehicles

CCM6.5

12.2

N/EL

Provision of IT/OT data-driven solutions and

software

CE4.1

0.8

N/EL

n/a

Capex of taxonomy-eligible but not environmentally

sustainable activities (not taxonomy-aligned activities)

(A.2)

79.9

61%

60%

66%

A. Capex of taxonomy-eligible activities (A.1+A.2)

79.9

61%

60%

66%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Capex of taxonomy-non-eligible activities

51.7

39%

Total

131.6

100%

Capital expenditure

Capital expenditure amounted to a total of EUR 131.6 (147.9) million, comprising EUR 85.3 million in

additions to tangible and intangible assets (see Notes 11 and 12 to the Financial Statements) and EUR 46.3

million in additions to right-of-use assets, mainly related to the company’s premises and vehicles (in Note

13 to the Financial Statements, total additions of EUR 76.5 million include remeasurements and lease

modifications which are excluded from the amount used in this capital expenditure calculation).

Taxonomy-eligible capital expenditure was EUR 79.9 (97.6) million, or 61% (66%) of the total amount. The

decline of the proportion was mainly due to the high comparison figure. In 2022, additions in right-of-use

assets included new major agreements for premises.

Taxonomy-eligible capital expenditure fell under the following categories, defined in the EU Taxonomy

regulation:

a) investments in assets or processes associated with taxonomy-eligible or taxonomy-aligned economic

activities

Tietoevry: this category represents 27 pp. of taxonomy-eligible capital expenditure, comprising

expenditure for data centres and eligible offerings.

c) purchases of output from taxonomy-eligible or taxonomy-aligned economic activities.

Tietoevry: this category represents 34 pp. of taxonomy-eligible capital expenditure, comprising additions

to right-of-use assets and including 2 pp. for business combinations. At Tietoevry, these purchases fall

under activity CCM7.7 ‘Acquisition and ownership of buildings’ and activity CCM6.5 ‘Transport by

motorbikes, passenger cars and light commercial vehicles’.

Tietoevry did not include any capital expenditure under capex category b) part of a plan to expand

taxonomy-aligned economic activities or to allow taxonomy eligible economic activities to become

taxonomy-aligned.

Based on the technical screening criteria for economic activities relevant for Tietoevry, the company did

not identify aligned capital expenditure in any of the categories above.

Proportion of operating expenditure from products or services associated with taxonomy-aligned economic activities

Financial year 2023

Substantial contribution criteria

DNSH criteria ('Does Not Significantly Harm')

Economic activities (1)+A4:Q4

Code

(2)

Opex (3)

Proportion of opex

(4)

Climate change

mitigation (5)

Climate change

adaption (6)

Water (7)

Pollution (8)

Circular economy

(9)

Biodiversity (10)

Climate change

mitigation (11)

Climate change

adaption (12)

Water (13)

Pollution (14)

Circular economy

(15)

Biodiversity(16)

Minimum

safeguards (17)

Proportion

of taxonomy-

aligned (A1)

or eligible

(A2) opex in

2022 (18)

Category

enabling

activity (19)

Category

transitional

activity (20)

EUR

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y/N

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1 Environmentally sustainable activities (taxonomy-aligned)

Opex of environmentally sustainable activities

(taxonomy-aligned (A.1)

0.0

of which enabling

0.0

of which transitional

0.0

A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)

EL;

N/EL

EL;

N/EL

EL;

N/EL

EL;

N/EL

EL;

N/EL

EL;

N/EL

Data processing, hosting and related activities

CCM8.1

15.3

18%

N/EL

18%

Acquisition and ownership of buildings

CCM7.7

2.7

N/EL

Provision of IT/OT data-driven solutions and

software

CE4.1

0.1

N/EL

Opex of taxonomy-eligible but not environmentally

sustainable activities (not taxonomy-aligned activities)

(A.2)

18.1

21%

24%

A. Opex of taxonomy-eligible activities (A.1+A.2)

18.1

21%

24%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Opex of taxonomy-non-eligible activities

69.2

79%

Total

87.3

100%

Operating expenditure

Operating expenditure as defined in the EU Taxonomy amounted to a total of EUR 87.3 (92.9) million,

comprising EUR 84.6 million in offering and internal development and EUR 2.7 million in maintenance of

premises and short-term leases. Taxonomy-eligible operating expenditure was EUR 18.1 (22.2) million, or

21% (24%) of the total amount. The change of the proportion was mainly attributable to the decline in

maintenance costs for premises under activity CCM7.7 'Acquisition and ownership of buildings'. Eligible

operating expenditure fell under the categories below, defined in the EU Taxonomy regulation:

a) expenditure related to assets or processes associated with taxonomy-eligible or taxonomy-aligned

economic activities

Tietoevry: this category represents 18 pp. of taxonomy-eligible operating expenditure and includes

offering and internal development related to eligible offerings.

c) purchases of output from taxonomy-aligned economic activities

Tietoevry: this category represents 3 pp. of taxonomy-eligible operating expenditure and relates to

maintenance of premises and short-term leases.

Operating expenditure category b) part of a plan to expand taxonomy-aligned economic activities or to

allow taxonomy-eligible economic activities to become taxonomy-aligned was assessed but Tietoevry did

not include any development costs under this category.

Based on the technical screening criteria for economic activities relevant for Tietoevry, the company did

not identify aligned operating expenditure in any of the categories above.

Compliance with Minimum Safeguards

Compliance with Minimum Safeguards is evaluated on a Group level. The evaluation includes reviewing

alignment of existing due diligence processes with the United Nations Guiding Principles and OECD

Guidelines for Multinational Enterprises across the company. During 2023, the focus has been on further

developments of the corporate-wide due diligence measures with regards specifically to human rights and

corruption. Activities include human rights impact assessment in one country, human rights risk

assessments of core corporate processes, development of risk assessment tools for business processes

and mapping of existing monitoring mechanisms ensuring a systematic assessment of corruption risks. The

execution of activities to close the gaps demonstrates that Tietoevry meets the requirements for

compliance with Minimum Safeguards.


ACCOUNTING POLICIES FOR EU TAXONOMY REPORTING
The required key performance indicators have been determined based on the company’s financial reporting prepared in accordance with IFRS. Further details about the Group’s accounting policies are described in the notes to the consolidated financial statements.
Revenue
At Group level, revenue comprises reportable segments’ total revenue and eliminations for internal revenue. Tietoevry’s eligibility assessment is primarily based on Group-level aggregated lead offerings, which is a key dimension in the company’s internal operative accounting. Approaching the reporting through the assessment of lead offerings means that there is no risk of double counting.
Capital expenditure
Capital expenditure is defined as additions to tangible and intangible assets during the financial year considered before depreciation, amortization and any remeasurements (including those resulting from revaluations and impairments) and excluding fair value changes. It also includes additions to tangible and intangible assets resulting from business combinations and additions to right-of-use assets from lease contracts.
Capital expenditure in this taxonomy reporting section includes additions to right-of-use assets, reported in Note 13 in the Financial Statements, while this is excluded from capital expenditure presented in the Group’s key figures in this Report by the Board of Directors. Identification of eligible capital expenditure was made based on Group-level reporting and thus there was no risk of double counting.
Operating expenditure
Operating expenditure is defined as expenditure related to research and development, building renovation measures, short-term lease, maintenance and repair, and any other direct expenditures relating to the servicing of assets of property, plant and equipment by Tietoevry or a third party to which activities are outsourced as necessary to ensure the continued and effective functioning of such assets. Only direct non-capitalized costs are included.
Tietoevry’s operating expenditure consists of the following items
• costs for offering and internal development related to data platform services. In the financial reporting, these costs are included in employee benefit expenses.
• costs for maintenance and short-term lease. In the financial reporting, related costs are included in other operating expenses.

Shareholders' meeting

Tietoevry Corporation's Annual General Meeting (AGM) held on 23 March approved the financial

statements 2022 and discharged the company's officers from liability for the financial year 2022. The

meeting also approved the Remuneration Report and an amendment to Section 10 of the Articles of

Association according to which the Board of Directors can also decide that the General Meeting will be

held with the help of a data communication connection and a technical aid during the meeting. The AGM

decided on a total dividend of EUR 1.45 per share, paid in two instalments.

The meeting re-elected Tomas Franzén, Liselotte Hägertz Engstam, Harri-Pekka Kaukonen, Katharina

Mosheim and Endre Rangnes. Bertil Carlsén, Elisabetta Castiglioni, Gustav Moss and Petter Söderström

were elected as new members. Tomas Franzén was re-elected as the Chairperson of the Board of

Directors.

Shareholders' Nomination Board

The composition of the Shareholders’ Nomination Board for Tietoevry Corporation was determined based

on holdings on 31 August 2023 in the Finnish, Norwegian and Swedish shareholders’ registers and received

evidence. The Shareholders' Nomination Board comprises the following members:

• Chairperson Annareetta Lumme-Timonen, Investment Director, Solidium

• Alexander Kopp, Investment Manager, Incentive

• Alexander Svensson, Vice President, Cevian Capital

• Mikko Lantto, Chief Technology and Development Officer, Ilmarinen

• Tomas Franzén, Chairperson of the Board of Directors, Tietoevry.

The Board of Directors

Board of Directors as at 31 December 20231)


Name	Born	Nationality	Education	Main occupation
Tomas Franzén (Board and RC Chairperson)	1962	Swedish	MSc. (Eng.)	Professional Board member
Harri-Pekka Kaukonen (Deputy Chairperson, ARC Chairperson)	1963	Finnish	Dsc. (Tech.)	Professional Board member
Bertil Carlsén2)	1960	Swedish	MSc. (Business Adm.)	Financial advisor and professional Board member
Elisabetta Castiglioni2)	1964	Italian	Ph.D. (Tech)	CEO, A1 Digital International GmbH
Liselotte Hägertz Engstam	1960	Swedish	MSc. (Civ. Eng.)	Expert advisor, professional Board member
Katharina Mosheim	1976	Austrian	Ph.D. (Econ.)	CEO, Alpha Pianos AS, professional Board member
Gustav Moss2)	1988	Swedish	MSc. (Finance & Accounting)	Partner, Cevian Capital AB
Endre Rangnes	1959	Norwegian	BBA (Econ.)	CEO, Zolva Group, professional Board member
Petter Söderström2)	1976	Finnish	MSc. (Econ.)	Investment Director, Solidium Oy
Tommy Sander Aldrin (personnel representative)2)	1965	Norwegian	BSc. (Comp.)	Chief Consultant
Anders Palklint (personnel representative)2)	1967	Swedish	MSc. (Eng.)	Senior Project Manager

1) Timo Ahopelto, Angela Mazza Teufer, Niko Pakalén and personnel representatives Robert Spinelli and Ilpo Waljus served as Board members until the AGM on 23 March 2023.

2) Board member as of the AGM on 23 March 2023.

The President and CEO and operative management

Members of the Group management as at 31 December 20231)

Kimmo Alkio

President and CEO

Born: 1963

Nationality: Finnish

Education: BBA and Executive MBA

Joined Tietoevry in 2011

Klaus Andersen3)

Managing Director, Tietoevry Banking

Born: 1964

Nationality: Danish

Education: Master's degree in Engineering

Joined Tietoevry in 2023

Kishore Ghadiyaram

Head of Strategy

Born: 1972

Nationality: Indian

Education: BSc. (Tech.)

Joined Tietoevry in 2008

Carsten Henke1)

Managing Director, Tietoevry Industry

Born: 1968

Nationality: German

Education: Masters degree in Mathematics

Joined Tietoevry in 1997

Tomi Hyryläinen

Chief Financial Officer

Born: 1970

Nationality: Finnish

Education: MSc. (Econ.)

Joined Tietoevry in 2018

Ari Järvelä1)

Managing Director, Tietoevry Care

Born: 1969

Nationality: Finnish

Education: MSc. (Eng.)

Joined Tietoevry in 2001

Satu Kiiskinen

Managing Director, Tietoevry Tech Services2)

Born: 1965

Nationality: Finnish

Education: MSc. (Econ.)

Joined Tietoevry in 2013

Christian Pedersen

Managing Director, Tietoevry Create

Born: 1974

Nationality: Norwegian

Education: MSc. (Tech.)

Joined Tietoevry in 2014

Trond Vinje

Head of HR

Born: 1968

Nationality: Norwegian

Education: MSc. (Pol. Sci.)

Joined Tietoevry in 2015

The remuneration and more detailed background information, such as full CVs of the Group Management,

are presented on the company’s website.

1) Ari Järvelä acted also as Managing Director of Tietoevry Industry until 1 November 2023. Carsten Henke was appointed as Managing Director

of Tietoevry Industry as of 1 November 2023.

2) Satu Kiiskinen acted as Managing Director of Tietoevry Transform and Johan Torstensson acted as Managing Director of Connect until 1 April

2023. These business were combined as Tietoevry Tech Services on 30 November 2022.

3) Christian Segersven acted as Managing Director of Banking until 1 February 2023.

Auditors

The ARC prepares a proposal on the appointment of Tietoevry’s auditors, which is then presented to the

Board of Directors and finally to the AGM for its decision. The compensation paid to the auditors is decided

by the AGM and assessed annually by the ARC.

The Board of Directors proposes to the AGM, in accordance with the recommendation of the ARC, that the

auditor to be elected at the AGM 2024 be reimbursed according to the auditor's invoice and in compliance

with the purchase principles approved by the Committee.

The Board of Directors proposes to the AGM, in accordance with the recommendation of the ARC, that the

firm of authorized public accountants Deloitte Oy be re-elected as the company's auditor for the financial

year 2024. The firm of authorized public accountants Deloitte Oy has notified that APA Jukka Vattulainen

will act as the auditor with principal responsibility. Further, it is proposed that Deloitte Oy will be elected as

the Authorized Sustainability Auditor.

Auditing

The AGM 2023 elected the firm of authorized public accountants Deloitte Oy as the company’s auditor for

the financial year 2023. Deloitte Oy notified the company that Authorized Public Accountant Jukka

Vattulainen acts as principal auditor.

In 2023, Tietoevry Group paid the auditors a total of EUR 1.6 (1.3) million in audit fees, and a total of EUR

0.6 (0.6) million for other services.

Major risks

Tietoevry utilizes five risk categories within Risk Management: strategic, operational, financial, people, and

compliance risks.

Strategic risks are related to market volatility, introduction of new technologies, changing digitalization and

automation strategies, change management, reskilling ability and speed, ability to respond to competition

and new entrants in the market, successful selection, management and implementation of company

strategy, dependencies on few big customers in some business areas and ensuring delivery quality in the

dynamic business environment.

Operational risks refer e.g. to changing the business model in business units, securing service and offering

delivery capabilities, risk and continuity management, cybersecurity, climate change, customer bidding

and requirement analysis, and maintaining a high professional standard in delivery management and

quality assurance.

Financial risks mainly consist of credit risks, currency risks, interest rate risks, inflation and funding and

liquidity risks.

Compliance risks are connected to the organization failing to recognize or meet the requirements in the

areas of legislation or other mandatory regulation (e.g. General Data Protection Regulation (GDPR),

Schrems II, anti-corruption, anti-bribery, insider matters, sanctions and trade compliance), internal policies

and rules or ethics and integrity.

People risks can be driven by Tietoevry's needs to build a market-leading workforce for high performance

in terms of delivering projects and customer services; people risks are also related to quality of life, human

rights, and the safety of people.

Risks are registered, managed, followed up and aggregated by utilizing the corporate GRC platform,

resulting in risk maps and Risk KPIs that are reviewed by leadership teams in the units and the ARC.

Tietoevry’s major risks and the measures for their mitigation are described below.

Market volatility

Changes in the Nordic core markets have a direct effect on market conditions and result in volatility that

might have a negative impact on Nordic market growth. Changes in the economic environment and

customer demand can affect both business volumes and price levels, which might result in lower revenue

or slower revenue growth than expected.

These potential risks are mitigated through multi-year contracts for continuous services. Tietoevry also

aims to maintain long-term business relations and to be a preferred supplier to its customers. The company

executes tight cost and investment control with continuous investment performance monitoring,

accompanied with a clear structure for decision rights, which are defined in the Decision Making Authority

(DMA) Policy.

Global service capabilities, cross-selling and tough price competition are the main drivers in the IT sector

for the development of the global delivery model. Tietoevry’s position as a leading IT service provider in the

Nordics is supported by existing and enhanced competencies, and by the choice of right partners.

Change and transformation

With its strategy, Tietoevry aims to drive customer value and growth through specialization. The

technology industry is being reshaped with cloud as the foundation, providing expansion opportunities for

the company. Expansion will focus on cloud-native services, data & software engineering and scalable

software businesses. In managed application and infrastructure services, the company will seek

partnerships to invest and build scale. Strategic reviews of the Tietoevry Banking and Tietoevry Tech

Services businesses will result in changes requiring careful change management.

In large-scale adaptation to the market by organizational transformation and right-sizing, resistance to

change can prolong the transition, which may affect operational efficiency.

Change management is steered by the company-wide or project-specific Program Management Office,

which provides standard tools and systems for the change, including communication, target setting and

training for the implementation of the new strategy.

Common standards for project management ensure proper project risk management and compliance in

project financials management and follow-up.

Sudden changes in the market environment, customer demand and customer strategies or the competitive

landscape in these areas might harm Tietoevry’s operations and profitability.

To diversify the business, Tietoevry provides services to several different industries and markets. The

company develops its business mix to provide new industry software solutions, digital consulting, new

hybrid cloud solutions and broader R&D capabilities to strengthen its position amongst both current and

new customers. An industrialized and standardized way of providing services and solutions, employing

automated processes, improves competitiveness and reduces risk.

Service continuity

Close to 100% availability of the services is the basis of trust among customers, stakeholders and society.

A service continuity disruption can be caused, for instance, by hardware or software failures, power

outages, natural disasters and different types of intentional or unintentional actions by people.

Risks related to malfunctions of systems could seriously affect Tietoevry’s ability to provide its services and

have an adverse impact on the company’s financials and reputation.Thus, business continuity planning is a

high priority in Tietoevry’s operational management in order to ensure that redundancy and fault tolerance

are at the appropriate level.

To reduce the service continuity risk and to better understand the interdependencies in solutions and data

centres, Tietoevry constantly reviews, maintains and improves its IT asset management, configuration

management and monitoring systems. In addition to a balanced global portfolio, Tietoevry has recovery

procedures and backup systems in place to handle potential service interruptions. Root cause analysis,

best practices and experiences from previous incidents help in preparing for and mitigating the service

continuity risk.

Also, a comprehensive and robust major incident & escalation process and crisis management process

reduce service interruptions.

Cybersecurity

Tietoevry’s business operations involve processing and storing large amounts of confidential data of public

and private sector customers, business partners and own data, including sensitive personal data.

The threat landscape is constantly growing and evolving – e.g. criminal hackers, hacktivists, human errors

or misconduct, and state-sponsored organizations – and may cause malfunctions or cybersecurity

breaches of information against Tietoevry, its customers, subcontractors or other third parties.

At least the following threats are risk factors that could lead to loss, misuse, destruction of data or system

malfunction, compromising Tietoevry’s ability to support, manage or develop services:

• Enterprise ransomware

• Supply chain attacks

• Critical vulnerabilities

• Targeted attacks

• Digital fraud

• Denial of service attacks

• Data breaches and data leaks

• Insider threats

Such events could have an adverse impact on the company’s financials and reputation.

To detect and investigate cybersecurity incidents, Tietoevry has implemented a comprehensive and robust

major incident & escalation process, a crisis management process as well as efficient cybersecurity

defence with high-class detection and response capabilities to reduce service interruptions.

We regularly review our risk management and cybersecurity framework, train our employees to increase

their awareness of cyber threats and continuously measure our cybersecurity maturity.

Quality costs related to customer bidding and delivery management

Inability to appropriately understand and analyse customers’ changing needs, their business processes

and the exact requirements can lead to misjudgements in setting the scope of projects or services and,

consequently, difficulties in meeting the specifications of customer agreements.

Tietoevry is committed to actively verifying that business processes from sales to delivery are designed,

implemented and embedded to deliver customer value and actively mitigate end-to-end risk exposure

along full contract life cycles. Internal and external quality assessments and audits are used to verify the

effectiveness and efficiency of ways of working as well as to control the quality of outcomes through

measurable and actionable KPIs (Key Performance Indicators) and key controls. At the same time,

customer feedback management is an integral part of how we drive performance and safeguard quality

assurance at both the operational and strategic level. As part of this, we actively ask customers for

feedback to understand how well we perform individual deliveries. In addition, we engage with customers

to understand how well we support them in meeting their changing business objectives through our

portfolio of deliveries. Insights and actions resulting from customer feedback are prioritized and followed

up regularly at all levels of the organization and integrated into change management efforts.

Retention and attrition of employees

The competition in the market and demand for new services require ability and speed to reskill, attract

new and retain existing competences and business knowledge for new services, new service models, new

technologies and offerings. Tietoevry’s success builds on attracting talent, skills renewal, business

knowledge and the maturity of the organization.

Inability to retain key employees and to recruit new talent with the required competence might have a

negative impact on the company’s performance. High employee turnover might also cause delays in

customer projects, leading to penalties or loss of customers.

To reduce these risks, Tietoevry implements unified delivery models across sites and offers its employees

challenging jobs, diverse development possibilities, social recognition and training opportunities as well as

interesting career paths through job rotation. Furthermore, the company has competitive compensation

packages, including a company-wide incentive system. Attractive recruitment tools, strategies, talent

management and competence development have a high strategic priority at Tietoevry. The company also

focuses on employer branding to build and strengthen Tietoevry’s image as an attractive employer both

internally and externally.

Credit risks

Changes in the general market environment and global economy can result in additional financial risks.

Credit risks might arise if customers or financial counterparties are unable to fulfil their commitments

towards Tietoevry.

Tietoevry's Credit Policy defines the principles for customer credit risk management to be applied in all

lines of business and controlled by a centralized credit management team. The risk assessment utilizes

external risk databases and past experience as a reference. Credit risk regarding financial counterparties

is managed through counterparty limits, as set out in the Tietoevry Treasury Policy.

Currency risks

Tietoevry’s currency transaction exposure arises from foreign trade, cash management and internal

funding in foreign currencies. Translating the balance sheets and income statements of Group companies

into euros creates a translation exposure.

Tietoevry’s Treasury Policy defines the principles for managing currency risks within the Group.

Interest rate risks

Tietoevry's interest rate risk consists mainly of short- and long-term loans, cash positions and derivative

contracts. Fluctuations in interest rates can impact Tietoevry's financial result or economic situation.

Tietoevry's Treasury Policy defines the principles for managing interest rate risks within the Group.

Funding and liquidity risks

Exceptional market conditions in the financial market might impose temporary limitations on raising new

funding and/or lead to an increase in funding costs.

Group Treasury monitors and manages Tietoevry’s funding structure and liquidity by maintaining a

sufficiently diversified loan portfolio and liquidity position. Analyses of alternative financing sources,

maturities and pricing for the company are continuously updated. Tietoevry’s financial risks are described

in full in the notes to the consolidated financial statements.

Tietoevry's Treasury Policy defines the principles for managing funding and liquidity risks within the Group.

Legal, regulatory and compliance risks

Tietoevry operates in multiple jurisdictions and is required to comply with a wide range of laws and

regulations enacted both at the European and international level, e.g. data protection and privacy laws,

public procurement, anti-corruption, anti-bribery, regulations restricting competitive trading conditions,

health and safety regulations, environmental regulations, labour regulations, competition regulations as

well as securities markets, corporate and tax laws. Failing to comply with the regulations or implement new

requirements may subject the company to regulatory interventions or penalties, or a slowing or even

halting of the development of its activities.

Tietoevry functions as a data processor for customers and as a data controller for its employees’ personal

data. Should Tietoevry or its products or services fail to comply with the privacy laws, this might result in

negative reputational impacts, significant fines or other expenses if the product or service in question

needs to be redesigned or redeveloped.

The risk is mitigated by company-wide privacy work. Tietoevry has a privacy governance model, which

ensures that the group and each business have resources to continuously follow up, report, and

proactively develop privacy and actively train and communicate with employees. Privacy governance also

ensures that the GDPR requirements are appropriately embedded as practical rules and instructions into

core processes such as offering and software development, sales, sourcing and marketing, program and

project delivery, continuous service delivery and Tietoevry’s internal service.

Supply chain risk

Tietoevry's ability to perform its obligations to customers can be affected by a failure by any significant

supplier or partner to fulfil its obligations. Such failure may expose Tietoevry to liabilities and impact the

profitability of the company. These risks are managed by partner contract management, contract renewal

negotiations and continuous evaluation of the partner delivery quality.

Global pandemic

Even though Covid-19 is no longer considered to be a pandemic by the World Health Organization (WHO)

since 5 May 2023, it (or some other widespread illness) can still create uncertainty in the market and for

the company. Tietoevry has continued to identify, evaluate, and manage risks that could have significant

financial, operating, or reputational impacts on the company on both a short- and long-term basis.

Enterprise risk management, crisis management and business continuity have been vital in handling the

effect of the pandemic on our employees, portfolio and customers. Tietoevry follows country-specific

government and healthcare guidelines for personal health and the prevention of the spread of current or

possible new pandemic cases.

Geopolitical instability

Geopolitical instability might result in disruption in areas where Tietoevry operates. This instability might

impact the company's operations, despite careful scenario planning and mitigation plans to ensure

business continuity. Russia's war against Ukraine has impacted our business in Ukraine, and its status is

monitored with regular business continuity and crisis management meetings in order to help and ensure

the safety of employees and secure business continuity.

Climate change

Physical climate change impacts may pose a risk for both Tietoevry and its customers. Tietoevry strives to

mitigate its contribution to climate change by reducing carbon emissions and increasing energy efficiency

in its own operations. Specific risk assessments concerning the proximity of hazards such as rivers, rail

lines and airports are carried out as part of the decision making prior to any new construction or lease of

offices or datacentres, and the company has back-up centres to ensure the continuity of customer

operations in case of severe climate change incidents. The ability to mitigate the impacts and adapt to

climate change is becoming an increasingly important factor influencing customers’ decision making.

Tietoevry can help its customers to reduce their carbon emissions through its technology solutions and

facilitate customers’ transition to a low-carbon and circular economy.

Artificial Intelligence

Artificial Intelligence (AI), including Generative AI and machine learning can be used for purposes such as

support or development activities and the usage of AI can involve risks, such as privacy, fairness concerns,

and ethical dilemmas. Also, training AI models can consume significant amounts of energy, contributing to

carbon emissions. Addressing these challenges can unlock AI’s potential and opportunities for positive

change and innovation while prioritizing responsible and ethical development.

Shares and shareholders

Tietoevry’s issued and registered share capital amounts to EUR 76 555 412.00. On 31 December, the

number of shares totalled 118 425 771. Tietoevry’s shares have no par value and their book counter value is

one euro. The company's shares are listed on NASDAQ in Helsinki and Stockholm and Oslo Børs. The

company has one class of shares, with each share conferring equal dividend rights and one vote.

The company had around 65 424 registered shareholders at the end of 2023 based on the ownership

records of the Finnish, Swedish and Norwegian central securities depositories. Tietoevry received the

following flagging announcements during the year:

• On 10 March, Cevian Capital Partners announced that its holding has fallen below 5%.

• On 9 August, Silchester International Investors LLP announced that its holding had increased to

11 873 031 shares, representing 10.03% of the total number of shares. On 25 August, the holding

had increased to 10.61%, including 5 937 483 shares held by Silchester International Investors

International Value Equity Trust, representing 5.01% of the total number of shares.

On 31 December, Tietoevry had three shareholders holding 5% or more of the shares: Solidium Oy,

Silchester International Investors LLP and Incentive Investment Funds.

In February, Tietoevry purchased 325 000 own shares (0.27% of the total number of shares) in trading

organized by Nasdaq Helsinki Ltd. The average purchase price was EUR 29.9745 per share. Related to the

company’s share-based reward plans, a total of 302 789 shares held by Tietoevry (0.26% of the total

number of shares) were transferred to the participants of the plan during the first quarter. At the end of the

year, the number of shares in the company’s or its subsidiaries’ possession totalled 34 679, representing

0.03% of the total number of shares and voting rights. The number of outstanding shares, excluding the

treasury shares, was 118 391 092.

The members of the Board of Directors, the President and CEO and their close associates together held

0.13% of the shares and votes registered in the book-entry system on 31 December 2023. The President

and CEO is also participating in the company’s long-term share-based incentive plans and potential

rewards will be paid partly in Tietoevry shares. As the number of additional shares related to these

incentives is dependent on the company’s performance, these are not included in this aggregate number.

The company’s Articles of Association include a restriction on voting at the Annual General Meeting, where

no-one is allowed to vote with more than one-fifth of the votes represented at the meeting. The Articles of

Association are available at www.tietoevry.com/investors.

Share-based incentive plans

Tietoevry has the following active share-based incentive plans: a Performance Share Plan 2021, 2022 and

2023 and a Restricted Share Plan 2021, 2022 and 2023. The potential rewards will be paid partly in the

company’s shares and partly in cash in 2024, 2025 and 2026, respectively. The share rewards to be

delivered to the participants will consist of shares to be acquired from the market and treasury shares.

Thus, no new shares will be issued in connection with the plans. The rewards to be paid on the basis of the

plans correspond to the value of an approximate maximum total of 3 330 000 Tietoevry shares (including

the proportion to be paid in cash). On 31 December, the value of granted and unvested share plans

corresponded to 2 413 884 shares. The company has not issued any bonds with warrants and does not

have any stock option programmes.

Board authorizations

The 2023 Annual General Meeting authorized the Board of Directors to decide on the repurchase of the

company's own shares. The amount of own shares to be repurchased shall not exceed 11 800 000 shares,

which currently corresponds to approximately 10% of all the shares in the company. The Board of

Directors was also authorized to decide on the issuance of shares as well as on the issuance of option

rights and other special rights. The amount of shares to be issued based on the authorization (including

shares to be issued based on the special rights) shall not exceed 11 800 000 shares, which currently

corresponds to approximately 10% of all the shares in the company.


	2023	2022	2021	2020	2019
Number of shares
Number of shares	118 425 771	118 425 771	118 425 771	118 425 771	118 425 771
Outstanding shares
At year end	118 391 092	118 413 303	118 418 184	118 414 793	118 253 526
Average	118 375 769	118 405 657	118 408 223	118 378 269	77 193 387

Share capital at year end, EUR	76 555 412	76 555 412	76 555 412	76 555 412	76 555 412

Per share data
Earnings per share, EUR
Basic	1.45	1.59	2.46	0.8	1.02
Diluted	1.45	1.59	2.46	0.8	1.02
Equity per share, EUR	13.62	14.52	15.38	13.73	14.27

Share price performance and trading volumes
NASDAQ Helsinki
Highest price of share, EUR	30.58	27.94	30.46	31.32	29.06
Lowest price of share, EUR	19.16	21.06	25.42	17.26	21.40
Average price of share, EUR	24.77	24.86	27.26	24.42	25.37
Turnover, number of shares	56 862 211	62 036 948	78 772 407	77 150 210	31 439 512
Turnover, %	48.0	52.4	66.5	65.1	26.5


	2023	2022	2021	2020	2019
Market capitalization, EUR million	2 550.9	3 140.7	3 254.3	3 180.9	3 282.8

Dividends
Dividend, EUR 1 000	174 035	171 699	165 785	156 308	75 190
Dividend per share, EUR	1.47	1.45	1.40	1.32	0.64
Payout ratio, %	101.1	91.0	56.8	165.3	62.3

Price-weighted ratios
NASDAQ Helsinki
Price per earnings ratio (P/E)	15	17	11	34	27
Dividend yield, %	6.8	5.5	5.1	4.9	4.6

Major shareholders on 31 December 2023


	Shares	%
1 Solidium Oy	12 857 918	10.9
2 Silchester International Investors LLP 1)	11 873 031	10.0
3 Incentive Investment Funds ICAV 2)	6 041 221	5.1
4 Ilmarinen Mutual Pension Insurance Company	1 966 644	1.7
5 Elo Mutual Pension Insurance Company	1 738 000	1.5
6 The State Pension fund	1 400 000	1.2
7 Nordea Life Assurance Finland Ltd.	826 541	0.7
8 Stiftelsen för Åbo Akademi	597 536	0.5
9 Nordea Pro Finland Fund	592 062	0.5
10 Society of Swedish Literature in Finland	590 800	0.5
Top 10 shareholders total	38 483 753	32.5
- of which nominee registered	17 914 252	15.1

Nominee registered other	50 820 204	42.9
Others	29 121 814	24.6
Total	118 425 771	100.0

The list of shareholders above is based on the ownership records of Euroclear Finland Oy, Euroclear

Sweden AB and Norwegian Central Securities Depository (VPS) and also includes shareholders with a

nominee registered holding exceeding the 5% threshold in accordance with Chapter 9, Section 5 of the

Finnish Securities Markets Act. Their holding information is based on the latest notification.

On 10 March, Cevian Capital Partners Ltd announced that its holding has fallen below the 5% threshold.

Based on Euroclear Finland Oy, the holding of Cevian Capital Partners Ltd on 31 August 2023 was 4 690

937 shares, representing 4.0% of the total amount.

1) On 9 August 2023, Silchester International Investors LLP announced that its holding has increased to 11 873 031 shares, representing 10.03%

of the total number of shares. Based on Silchester International Investors LLP's announcement on 25 August, the aggregated holding was

10.61%, including shares held by Silchester International Investors International Value Equity Trust.

2) On 21 September 2021, Incentive AS announced that the holding of Incentive Investment Funds ICAV was 6 041 221 shares, representing

5.1% of the shares.

Number of shares


	Shareholders		Shares
	No	%	No	%
1–100	27 208	52.2	1 221 814	1.0
101–1 000	21 089	40.5	7 266 577	6.1
1 001–10 000	3 553	6,8	8 829 058	7.5
10 001–100 000	206	0.4	5 479 588	4.6
100 001–1 000 000	38	0.1	10 385 215	8.8
1 000 001–	7	0.0	85 232 959	72.0

Based on the ownership records of Euroclear Finland Oy.

Dividend

The distributable funds of the parent company amount to EUR 1 417.7 million, of which net profit for 2023

amounts to EUR 119.7 million. The Board of Directors proposes to the Annual General Meeting that for the

financial year ended on 31 December 2023, a dividend of EUR 1.47 per share be paid from the distributable

profits of the company. The Board of Directors proposes that the dividend shall be paid in two instalments:

• The first dividend instalment of EUR 0.735 per share shall be paid to shareholders who on the

record date for the dividend payment on 15 March 2024 are recorded in the shareholders’

Verdipapirsentralen ASA (VPS).

• The second dividend instalment of EUR 0.735 per share shall be paid to shareholders who on

the record date for the dividend payment on 23 September 2024 are recorded in the

shareholders’ registers.

The proposed dividend payout does not endanger the solvency of the company.

Events after the period

On 9 January, Tietoevry announced that Christian Pedersen, Managing Director of Tietoevry Create since

2022, had decided to pursue interests outside of Tietoevry. Following this, Harri Salomaa was appointed as

Acting Managing Director of Tietoevry Create effective 9 January 2024.

In February, Tietoevry’s Board of Directors approved the demerger plan concerning a partial demerger of

Tietoevry as part of the strategic review and separation process of Tietoevry Banking. Tietoevry Banking is

proposed to be separated as a standalone company to be listed on Nasdaq Helsinki. The transaction is

subject to shareholder approval at an Extraordinary General Meeting. Tietoevry’s Board of Directors

retains the optionality to pursue other alternatives for Tietoevry Banking before completion of the

demerger, if in the best interests of Tietoevry and its shareholders. Tietoevry has secured in its

preparations for the demerger sufficient financing for the demerging businesses with EUR 852 million

backup and term loan facilities from certain Nordic banks.

Full-year outlook

Tietoevry expects its organic1) growth to be in the range of 0–3% (revenue in 2023: EUR 2 851.4 million).

The company estimates its full-year adjusted operating margin2) (adjusted EBITA3)) to be 12.0–13.0%

(12.6% in 2023)

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

Financial reporting in 2024

29 FebruaryAnnual Report 2023

13 MarchAnnual General Meeting

Tietoevry will publish three interim reports in 2024:

25 AprilInterim report 1/2024 (9:00 a.m. EEST)

23 JulyInterim report 2/2024 (9:00 a.m. EEST)

24 October Interim report 3/2024 (9:00 a.m. EEST)

Key figures

Calculation of key figures and alternative performance measures

Tietoevry presents certain financial measures, which, in accordance with the “Alternative Performance

Measures” guidance issued by the European Securities and Markets Authority, are not accounting

measures defined or specified in IFRS and are, therefore, considered alternative performance measures.

Tietoevry believes that alternative performance measures provide meaningful supplemental information to

the financial measures presented in the consolidated financial statements prepared in accordance with

IFRS and increase the understanding of the profitability of Tietoevry’s operations. In addition, they are seen

as useful indicators of the Group's financial position and ability to obtain funding. Alternative performance

measures are not accounting measures defined or specified in IFRS and, therefore, they are considered

non-IFRS measures, which should not be viewed in isolation or as a substitute to the IFRS financial

measures.


Adjusted earnings per share	=	Net profit for the period excluding adjustment items, amortization of acquisition-related intangible assets and related tax impact per country
Adjusted earnings per share	=	Weighted average number of shares

Adjustment items	=	Restructuring costs + capital gains/losses + impairment charges + other items affecting comparability


Operating profit (EBIT)	=	Net profit + interests + taxes

Operating margin (EBIT), %	=	Operating profit (EBIT)
Operating margin (EBIT), %	=	Revenue

Adjusted operating profit (EBITA)	=	Operating profit (EBITA) + adjustment items

Adjusted operating margin (EBITA), %	=	Adjusted operating profit (EBITA)
Adjusted operating margin (EBITA), %	=	Revenue


Equity per share	=	Total equity
Equity per share	=	Number of shares at the year-end

Capital expenditure	=	Acquisitions of intangible assets and property, plant and equipment

Acquisitions	=	Acquisitions of subsidiaries and business operations, net of cash acquired

Return on equity, 12-month rolling, %	=	Profit before taxes and non-controlling interests – income taxes	* 100
Return on equity, 12-month rolling, %	=	Total equity (12-month average)

Return on capital employed, 12-month rolling, %	=	Profit before taxes + interest and other financial expenses	* 100
Return on capital employed, 12-month rolling, %	=	Total assets – non-interest-bearing liabilities (12-month average)

Equity ratio, %	=	Total equity	* 100
Equity ratio, %	=	Total assets – advance payments

Interest-bearing net debt	=	Interest-bearing liabilities – interest-bearing receivables – cash and cash equivalents
Interest-bearing net debt	=

Net debt/EBITDA	=	Interest-bearing net debt
Net debt/EBITDA	=	EBITDA (12-month average)

Gearing, %	=	Interest-bearing net debt	* 100
Gearing, %	=	Total equity

Adjusted operating profit (EBITA) by segment


EUR million	2023	2022	Change %
Tietoevry Create	114.0	117.3	-3
Tietoevry Banking	68.9	81.3	-15
Tietoevry Care	70.8	72.5	-2
Tietoevry Industry	43.4	46.0	-6
Tietoevry Tech Services	85.7	88.9	-4
Non-allocated costs	-24.0	-26.8	-10
Adjusted operating profit (EBITA)	358.7	379.2	-5

Adjusted operating margin (EBITA) by segment


%	2023	2022	Change pp
Tietoevry Create	13.4	13.8	-0
Tietoevry Banking	12.1	14.2	-2
Tietoevry Care	29.9	31.3	-1
Tietoevry Industry	16.5	16.9	-0
Tietoevry Tech Services	8.0	7.6	0
Adjusted operating margin (EBITA)	12.6	13.0	-0

Reconciliation of adjusted operating profit (EBITA)


EUR million	2023	2022
Operating profit (EBIT)	255.6	266.5
+ Amortization on intangible assets recognized at fair value from acquisitions	41.8	46.7
Adjustment items:
- Capital gains1)	-6.9	-1.1
+ Strategic reviews2)	32.3	2.6
+/- Other M&A related items	1.5	1.7
+ Restructuring costs	11.1	12.6
+ Tietoevry Tech Services performance improvement programme	15.1	31.0
+ War in Ukraine and exit from Russia	3.2	13.3
+ Tietoevry Integration	—	9.2
+/- Other items3)	4.9	-3.3
Adjusted operating profit (EBITA)	358.7	379.2

1) Capital gains include a gain on the sale of property, plant and equipment.

2) The costs relating to strategic reviews are expected to total around 1.5–2.0% of Group revenue, distributed mainly over 2023 and 2024.

3) Include impairment losses, insurance compensation, settlement compensation, costs related to new strategy implementation, and other

minor non-recurring items. See also notes 5, 6 and 7.

CONSOLIDATED FINANCIAL STATEMENTS (IFRS)

Income statement


EUR million	Note	2023	2022
Revenue	5, 6	2 851.4	2 928.1
Other operating income	7	22.2	50.2
Materials and services1)		-567.2	-570.5
Employee benefit expenses	8	-1 566.0	-1 597.2
Depreciation and amortization	11, 12, 13	-152.4	-162.3
Impairment losses	11, 12, 13, 27	-4.8	-20.2
Other operating expenses1)	7	-328.9	-362.6
Share of results in joint ventures	27	1.3	1.0
Operating profit (EBIT)		255.6	266.5

Interest and other financial income	20	23.7	3.9
Interest and other financial expenses	20	-61.7	-26.2
Net foreign exchange gains/losses	20	3.1	-1.4
Profit before taxes		220.8	242.8

Income taxes	9	-48.6	-54.2
Net profit for the financial year		172.2	188.6

Net profit for the financial year attributable to
Owners of the Parent company		172.2	188.6
		172.2	188.6
Earnings per share attributable to owners of the Parent company, EUR per share	10
Basic		1.45	1.59
Diluted		1.45	1.59

1) Tietoevry has reclassified costs related to shared platforms in infrastructure services. See note 7.

Statement of other

comprehensive income


EUR million	Note	2023	2022
Net profit for the financial year		172.2	188.6
Items that may be reclassified subsequently to profit or loss
Translation differences	24	-99.8	-126.7
Items that will not be reclassified subsequently to profit or loss
Remeasurements of the defined benefit plans	15	0.6	2.0
Income tax related to remeasurements	9	-0.1	-0.4
Total comprehensive income		72.9	63.5

Total comprehensive income attributable to
Owners of the Parent company		72.9	63.5
		72.9	63.5

Notes are an integral part of these consolidated financial statements.

Statement of financial position

Assets


EUR million	Note	31 Dec 2023	31 Dec 2022
Non-current assets
Goodwill	11, 25	1 907.3	1 846.5
Other intangible assets	11, 25	339.6	336.7
Property, plant and equipment	12	88.8	97.2
Right-of-use assets	13	195.9	201.9
Interests in joint ventures	27	11.6	14.2
Deferred tax assets	9	11.8	14.6
Defined benefit plan assets	15	1.0	0.6
Other financial assets at amortized cost	21	15.1	15.0
Other financial assets at fair value	21	0.6	0.6
Other non-current receivables	13, 14	34.7	20.6
Total non-current assets		2 606.4	2 548.0
Current assets
Inventories		8.6	5.6
Trade and other receivables	13, 14, 25	653.6	550.2
Financial assets at fair value	21	17.5	23.6
Current tax assets		12.7	16.8
Cash and cash equivalents	23	219.6	249.7
Total current assets		912.0	845.8

Total assets		3 518.4	3 393.8

Equity and liabilities


EUR million	Note	31 Dec 2023	31 Dec 2022
Equity
Share capital	24	76.6	76.6
Share premium and other reserves	24	39.4	39.3
Invested unrestricted equity reserve	24	1 203.5	1 203.5
Retained earnings	24	293.0	399.9
Total equity		1 612.3	1 719.2
Non-current liabilities
Loans	19, 21	539.5	639.4
Lease liabilities	13, 19, 21	161.4	155.9
Deferred tax liabilities	9	27.5	10.7
Provisions	16	2.5	2.6
Defined benefit obligations	15	26.5	28.4
Other non-current liabilities	17	10.8	21.0
Total non-current liabilities		768.4	858.0
Current liabilities
Trade and other payables	17, 25	636.0	616.7
Financial liabilities at fair value	21	4.9	2.0
Current tax liabilities		20.0	13.9
Loans	19, 21	411.9	110.6
Lease liabilities	13, 19, 21	50.3	54.1
Provisions	16	14.6	19.1
Total current liabilities		1 137.7	816.5

Total equity and liabilities		3 518.4	3 393.8

Notes are an integral part of these consolidated financial statements.

Statement of cash flows


EUR million	Note	2023	2022
Cash flow from operating activities
Net profit for the financial year		172.2	188.6
Adjustments
Depreciation, amortization and impairment losses	11, 12, 13, 27	157.2	182.5
Profit/loss on sale of property, plant and equipment, and business operations		-7.0	7.8
Share of results in joint ventures	27	-1.3	-1.0
Other adjustments		12.2	-7.5
Net financial expenses	20	34.9	23.7
Income taxes	9	48.6	54.2
Change in net working capital
Change in current receivables		-64.7	-41.7
Change in current non-interest-bearing liabilities		-30.5	-40.4
Cash generated from operating activities before interests and taxes		321.5	366.2
Interests received		8.0	3.7
Interests paid		-31.1	-22.1
Other financial income received		20.6	25.3
Other financial expenses paid		-26.6	-37.7
Dividends received	27	1.3	1.4
Income taxes paid		-27.7	-59.8
Cash flow from operating activities		266.1	276.9

Notes are an integral part of these consolidated financial statements.


EUR million	Note	2023	2022
Cash flow from investing activities
Acquisition of business operations, net of cash acquired	25	-156.3	—
Capital expenditure	11, 12	-84.1	-95.4
Disposal of business operations, net of cash disposed	25	0.4	-0.3
Proceeds from sale of property, plant and equipment		10.6	0.5
Change in loan receivables		0.1	3.2
Cash flow used in investing activities		-229.3	-92.0

Cash flow from financing activities
Dividends paid		-171.7	-165.8
Repurchase of own shares		-9.8	-3.7
Repayments of lease liabilities	13, 19	-58.1	-66.3
Proceeds from short-term borrowings	19	195.2	—
Repayments of short-term borrowings	19	-131.3	-1.5
Proceeds from long-term borrowings	19	214.0	—
Repayments of long-term borrowings	19	-99.5	-13.1
Cash flow used in financing activities		-61.2	-250.4

Change in cash and cash equivalents		-24.5	-65.4

Cash and cash equivalents at the beginning of period	23	249.7	323.8
Foreign exchange differences		-5.5	-8.6
Change in cash and cash equivalents		-24.5	-65.4
Cash and cash equivalents at the end of period		219.6	249.7

Statement of changes in shareholders' equity


		Owners of the Parent company
EUR million	Note	Share capital	Share premium and other reserves	Own shares	Cumulative translation differences	Invested unrestricted equity reserve	Retained earnings	Total equity
31 Dec 2022		76.6	39.3	-0.3	-193.5	1 203.5	593.7	1 719.2

Comprehensive income
Net profit for the period		—	—	—	—	—	172.2	172.2
Other comprehensive income, net of tax
Remeasurements of the defined benefit plans, net of tax		—	—	—	—	—	0.5	0.5
Translation differences		—	0.1	—	-83.3	—	-16.5	-99.8
Total comprehensive income		—	0.1	—	-83.3	—	156.1	72.9

Transactions with owners
Contributions and distributions
Share-based incentive plans	8	—	—	9.0	—	—	-7.3	1.7
Dividends		—	—	—	—	—	-171.7	-171.7
Repurchase of own shares		—	—	-9.8	—	—	—	-9.8
Total transactions with owners		—	—	-0.8	—	—	-179.0	-179.7

31 Dec 2023		76.6	39.4	-1.1	-276.8	1 203.5	570.9	1 612.3


		Owners of the Parent company
EUR million	Note	Share capital	Share premium and other reserves	Own shares	Cumulative translation differences	Invested unrestricted equity reserve	Retained earnings	Total equity
31 Dec 2021		76.6	41.5	-0.2	-66.0	1 203.5	565.8	1 821.1

Comprehensive income
Net profit for the financial year		—	—	—	—	—	188.6	188.6
Other comprehensive income, net of tax
Remeasurements of the defined benefit plans, net of tax		—	—	—	—	—	1.6	1.6
Translation differences		—	-2.2	—	-127.5	—	2.9	-126.7
Total comprehensive income		—	-2.2	—	-127.5	—	193.2	63.5

Transactions with owners
Contributions and distributions
Share-based incentive plans	8	—	—	3.6	—	—	0.5	4.1
Dividends		—	—	—	—	—	-165.8	-165.8
Repurchase of own shares		—	—	-3.7	—	—	—	-3.7
Total transactions with owners		—	—	-0.1	—	—	-165.3	-165.4

31 Dec 2022		76.6	39.3	-0.3	-193.5	1 203.5	593.7	1 719.2

Notes are an integral part of these consolidated financial statements.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(IFRS)

1. Corporate information

Tietoevry Corporation (business identity code 0101138-5) is a Finnish public limited liability company

organized under the laws of Finland. It is domiciled in Espoo and the address of the Group head office is

Keilalahdentie 2-4, 02101 Espoo, Finland. The company is listed on NASDAQ in Helsinki and Stockholm and

the Oslo Stock Exchange.

Tietoevry is a leading Nordic digital services and software company that employs over 24 000 experts

globally. Tietoevry serves thousands of enterprise and public sector customers in more than 90 countries.

The company’s services comprise software, data and digital engineering as well as managed services and

transformation, and related capabilities to support customers’ business renewal, innovation and efficient

operations. Tietoevry’s role varies from consulting and advisory, designing and building solutions to

running IT operations.

The Board of Directors approved these consolidated financial statements on 14 February 2024. According

to the Limited Liability Companies Act, the shareholders have the right at the Annual General Meeting to

either approve, amend or reject the consolidated financial statements after the publication.

BASIS OF PREPARATION

The accounting policies applied to the consolidated financial statements as a whole are described

below. A more detailed description of accounting policies and significant estimates related to specific

disclosures are presented in conjunction with each note with the aim of providing an understanding of

each accounting area.

2. Material accounting policy information

These consolidated financial statements of Tietoevry have been prepared in accordance with International

Financial Reporting Standards (IFRS) as adopted by the European Union. The financial statements also

comply with Finnish accounting principles and corporate legislation complementing IFRS. The

consolidated financial statements are presented in millions of euros and have been prepared under the

historical cost convention, unless otherwise stated in these accounting policies. All figures presented have

been rounded, and consequently the sum of individual figures can deviate from the presented sum figure.

Key figures have been calculated using exact figures.

Consolidation principles

The consolidated financial statements include the Parent company Tietoevry Corporation and all

subsidiaries over which the Parent company has directly or indirectly more than one half of the voting

rights, or the Parent company is otherwise in control of the company. Control exists when the company is

exposed to, or has rights to, variable returns from its involvement with the entity and can affect those

returns through its power over the entity.

Subsidiaries are consolidated from the date on which control is achieved until the date on which control

ceases by using the acquisition method. Intra-group receivables, payables and transactions including

dividends and internal profit are eliminated on consolidation. When necessary, subsidiaries’ accounting

policies have been aligned to correspond to the Group’s accounting policies. The result for the period and

items of other comprehensive income are attributable to the equity holders of the parent company.

Foreign currency transactions

Items included in the financial statements of each of the Group's entities are measured using the currency

of the primary economic environment in which the entity operates (the functional currency). The

consolidated financial statements are presented in euros, which is the Parent company’s functional and

presentation currency.

Foreign currency transactions are translated into local functional currencies using the exchange rates

prevailing on the transaction date. The foreign currency monetary items are translated using period-end

exchange rates. The foreign currency non-monetary items held at fair value are translated into the

functional currency using the exchange rate prevailing at the date when the fair value was determined or

remeasured. Other non-monetary items are recognized at the exchange rate prevailing on the transaction

date.

For internal, long-term loans to subsidiaries, when classified as net investment in foreign operation, all

related unrealized foreign exchange gains and losses are recognized in profit or loss in the separate

financial statements. In the consolidated financial statements, such exchange differences are recognized

initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the net

investment.

Other foreign exchange gains and losses related to business operations are included in operating profit.

Foreign exchange gains and losses associated with financing are recognized in finance income and

expenses.

For Group entities whose functional and presentation currency is other than the euro, the income

statements and statements of financial position are translated into the Group presentation currency as

follows:

• assets and liabilities for each statement of financial position presented are translated using the

exchange rates prevailing at the reporting date;

• income and expenses for each income statement are translated using the average exchange

rates of the reporting period;

• all resulting translation differences are recognized in other comprehensive income.

When a subsidiary is sold, any translation differences are recognized in the consolidated income

statement as part of the gain or loss on the sale.

Goodwill and fair value adjustments to the carrying amounts of assets and liabilities arising on the

acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated into

euro using the exchange rates prevailing at the reporting date. Translation differences arising are

recognized in other comprehensive income.

3. Adoption of new and amended IFRS standards and interpretations

The following amendments to IFRS standards became effective on 1 January 2023. They have not had a

material impact on the amounts reported or on the disclosures in these financial statements.

• Amendments to IAS 1 – Disclosure of Accounting Policies

• Amendments to IAS 8 – Definition of Accounting Estimates

• Amendments to IAS 12 – Deferred Tax related to Assets and Liabilities arising from a Single

Transaction

• Amendments to IAS 12 – International Tax Reform – Pillar Two Model Rules

• IFRS 17 Insurance Contracts

New and revised IFRS standards in issue but not yet effective

At the date of authorization of these financial statements, the Group has not applied the new and revised

IFRS standards that have been issued but are not yet effective. Management does not expect the adoption

of these to have a material impact on the Group's financial statements in future reporting periods. The

Group intends to adopt these new and amended standards and interpretations, if applicable, when they

become effective and are endorsed by the EU.

4. Use of judgements and estimates

The preparation of the financial statements in accordance with IFRS requires management to make

estimates and assumptions that affect the amounts reported and disclosed at the reporting date. Although

these estimates are based on management's best knowledge of current events and actions, actual results

may differ from the estimates. In addition, management judgement is required in the application of

accounting policies, especially when IFRS permits alternative accounting, valuation and presentation

methods.

Management believes that the following accounting principles represent those matters, where

management judgement has the most significant effect on the amounts recognised or where different

estimate could result in significant adjustment to reported carrying amounts within the next financial year.

These are described in more detail in the related notes.


Accounting principle	Estimates made	Judgement applied	Note
Valuation of goodwill	X	X	11
Provisions	X		16
Deferred taxes	X		9

Further, management has considered the impact of climate change when preparing the consolidated

financial statements. There has not been any material impact on judgements and estimates arising from

those considerations.

PERFORMANCE FOR THE YEAR

This section comprises disclosures related to the performance of the Group, including segment

information, revenue recognition, other operating income and expenses, as well as information on

employee benefits, taxes and earnings per share.

5. Segment information

Tietoevry Group is comprised of five operating segments: Tietoevry Create, Tietoevry Banking, Tietoevry

Care, Tietoevry Industry, and Tietoevry Tech Services. From 1 April 2023, Tietoevry Transform and

Tietoevry Connect were combined to form Tietoevry Tech Services. In 2023, the financials of Tietoevry

Tech Services are reported as a new segment and the comparative information has been restated

accordingly.


ACCOUNTING POLICIES
The operating segments are reported in a manner consistent with the internal reporting provided to the Group Executive Management, which has been identified as Tietoevry’s chief operating decision maker being responsible for allocating resources and assessing performance of the operating segments as well as deciding on strategy.
The Group Executive Management assesses the profitability of segments principally on the basis of adjusted operating profit (EBITA). Operating profit (EBIT) is, however, also an essential measure and is disclosed in this segment note as it is most consistent with the result reported in accordance with IFRS. Transactions between the segments are made on a market-terms basis.
Eliminations include internal revenue between operating segments and Group function sales of internal services to the business. Non-allocated costs relate to Global management and Support functions and are shown separately in the operating profit (EBIT).

Tietoevry Create

Tietoevry Create is a leading accelerator for digital innovation and cloud-native development, providing

business advisory and design, data engineering and specialized software R&D services across a range of

industry sectors. It is a market-leading vendor in the Nordics and expanding in international markets.

Tietoevry Create has competence centres in Europe, India, China and the Americas – they leverage their

expertise and the latest technologies to support clients from nearly 20 countries.

Tietoevry Banking

Tietoevry Banking is modernizing the financial sector in the Nordics and globally with modular, pre-

integrated Banking-as-a-Service and a full suite of market-leading, scalable software and services within

domains such as payments, cards, wealth management, financial crime prevention and credit. Built by

unmatched industry expertise, the solutions help accelerate growth through digital customer engagement,

real-time operational efficiency and regulatory compliance.

Tietoevry Care

Tietoevry Care offers modular, open and interoperable software for customers in the health and social

care sectors to enhance the care experience across the Nordics. Using advanced analytics and embedded

AI, it provides decision support and process automation. Demand for software and services in healthcare

segments such as hospitals, primary and secondary care, as well as elderly, home and family care is

increasing rapidly on the back of the growing demand for better care outcomes, improved citizen

experience, higher staff satisfaction and increased efficiency.

Tietoevry Industry

Tietoevry Industry provides industry-specific software and data platform services for customers looking to

enhance their critical processes – with software increasingly delivered as a service. Product areas include

software for case management, pulp & paper, education, and energy and utilities. Furthermore, data

platform services deliver data in processes such as billing & invoicing and industry messaging. Tietoevry

Industry has extensive industry knowledge and in-depth expertise in utilizing data to create insights and

add value across core business and operational processes.

Tietoevry Tech Services

Tietoevry Tech Services is a Nordic multi-cloud platform provider with a full range of infrastructure choices

at scale – aiming to ensure resilience, security and compliance for customers’ business. Its business

comprises application and data services, cloud platforms and security services, traditional Infrastructure

services and user experience services. It drives enterprise-wide transformation for customers from

modernizing existing IT infrastructure and the renewal of core business applications to next-generation

services and data and AI services. Tietoevry Tech Services is the leading provider of managed services in

the Nordics, and delivers services to customer operations in more than 90 countries.

Disaggregation of revenue by segment


EUR million	2023	2022	Change %
Tietoevry Create	851.2	849.0	0
Tietoevry Banking	567.2	571.1	-1
Tietoevry Care	236.5	231.4	2
Tietoevry Industry	262.6	272.6	-4
Tietoevry Tech Services	1 074.7	1 171.4	-8
Eliminations	-140.7	-167.4	-16
Group total	2 851.4	2 928.1	-3

Operating profit (EBIT) by segment


EUR million	2023	2022	Change %
Tietoevry Create	94.9	91.2	4
Tietoevry Banking	42.9	49.1	-13
Tietoevry Care	68.9	72.2	-5
Tietoevry Industry	36.9	51.9	-29
Tietoevry Tech Services	51.9	42.3	23
Non-allocated costs	-39.8	-40.2	-1
Group total	255.6	266.5	-4

For more information, see notes 7 and 27.

Operating margin (EBIT) by segment


%	2023	2022	Change pp
Tietoevry Create	11.1	10.7	0
Tietoevry Banking	7.6	8.6	-1
Tietoevry Care	29.1	31.2	-2
Tietoevry Industry	14.0	19.0	-5
Tietoevry Tech Services	4.8	3.6	1
Operating margin (EBIT)	9.0	9.1	0

Customer revenue from fixed-price contracts by segment


EUR million	2023	2022
Tietoevry Create	23.7	18.3
Tietoevry Banking	19.9	21.8
Tietoevry Care	3.0	3.5
Tietoevry Industry	2.6	2.5
Tietoevry Tech Services	25.0	15.6
Group total	74.2	61.6

No single customer represents 10% or more of revenue.

Customer revenue by country


EUR million	2023	2022	Change %
Finland	644.2	640.2	1
Sweden	901.3	947.3	-5
Norway	948.6	1 016.7	-7
Other	357.2	323.9	10
Group total	2 851.4	2 928.1	-3

The distribution of revenue by country is based on the invoicing country.

Non-current assets by country


EUR million	31 Dec 2023	31 Dec 2022	Change %
Finland	110.9	119.0	-7
Sweden	110.7	120.1	-8
Norway	331.4	368.4	-10
Other	71.3	28.3	> 100
Group total	624.3	635.8	-2

Non-current assets include property, plant and equipment, right of use assets and intangible assets

excluding goodwill.

Personnel by segment


	End of period				Average
	2023	2022	Change %	Share %	2023	2022
Tietoevry Create	9 618	8 989	7	40	9 248	8 871
Tietoevry Banking	3 509	3 454	2	15	3 518	3 500
Tietoevry Care	1 557	1 480	5	6	1 539	1 425
Tietoevry Industry	1 644	1 682	-2	7	1 666	1 703
Tietoevry Tech Services	7 255	8 036	-10	30	7 621	8 214
Group functions	576	678	-15	2	589	689
Group total	24 159	24 320	-1	100	24 181	24 401

Personnel by country


	End of period				Average
	2023	2022	Change %	Share %	2023	2022
Sweden	3 856	4 029	-4	16	3 980	4 097
Norway	3 922	3 990	-2	16	3 951	4 102
Finland	3 015	3 134	-4	12	3 101	3 151
India	4 308	4 499	-4	18	4 390	4 601
Czech Republic	2 381	2 694	-12	10	2 497	2 631
Ukraine	1 728	2 037	-15	7	1 835	2 135
Latvia	1 070	1 072	0	4	1 091	1 041
China	1 044	1 066	-2	4	1 053	978
Poland	839	776	8	3	833	720
Bulgaria	780	32	> 100	3	350	18
Other	1 217	991	23	5	1 100	929
Group total	24 159	24 320	-1	100	24 181	24 401
Onshore countries	11 370	11 687	-3	47	11 586	11 869
Offshore countries	12 789	12 633	1	53	12 595	12 533
Group total	24 159	24 320	-1	100	24 181	24 401

Depreciation by segment


EUR million	2023	2022	Change %
Tietoevry Create	6.6	6.7	-1
Tietoevry Banking	4.8	4.8	2
Tietoevry Care	1.0	0.9	8
Tietoevry Industry	0.7	0.6	16
Tietoevry Tech Services	44.6	42.4	5
Group functions	40.8	48.4	-16
Group total	98.5	103.8	-5

Amortization on other intangible assets by segment


EUR million	2023	2022	Change %
Tietoevry Create	0.1	0.1	-42
Tietoevry Banking	3.6	2.8	30
Tietoevry Care	2.5	1.6	50
Tietoevry Industry	0.2	0.3	-14
Tietoevry Tech Services	5.4	6.5	-18
Group functions	0.3	0.4	-26
Group total	12.0	11.7	3

Amortization of acquisition-related intangible assets by segment


EUR million	2023	2022	Change %
Tietoevry Create	10.0	10.1	-1
Tietoevry Banking	19.3	21.6	-11
Tietoevry Care	0.2	0.2	-7
Tietoevry Industry	4.7	6.2	-24
Tietoevry Tech Services	7.7	8.7	-11
Group functions	—	—	—
Group total	41.8	46.7	-10

Impairment losses

In 2023, the Group recognised impairment losses on lease agreements for office and other facilities in

Finland and Czech Republic totalling EUR 2.7 million. In addition, as a result of annual impairment testing,

Tietoevry Create recognized a goodwill impairment loss of EUR 2.1 million for the carrying value of Tieto

Esy Oy.

In 2022, Tietoevry Banking reached a settlement with a customer following their decision to exit a Nordic

market and therefore to terminate an implementation project. Capitalized development work specific for

this customer was written-off resulting in an impairment loss of EUR 18.7 million. See also note 6. In

addition, Tietoevry Tech Services recognized an impairment loss of EUR 1.4 million for the joint venture

TietoIlmarinen, and bought the remaining 30% share of the company. TietoIlmarinen has been

consolidated as a 100% owned subsidiary since 31 December 2022. See also note 27.

6. Revenue

The business models of the Group consist of continuous services, software solutions, projects and

consulting. Revenue comprises the fair value for the sale of IT services and software licenses, net of

discounts and exchange rate differences.


ACCOUNTING POLICIES
Revenue is measured based on the consideration to which the Group expects to be entitled in a contract with a customer and excludes consideration collected on behalf of third parties. The Group recognizes revenue when it transfers control of a good or service to a customer.
The Group typically provides customers with a variety of comprehensive services. The individual service delivery contracts are often structured under a common frame contract where general terms for the service delivery to the customer are defined. The content of the delivery, performance obligations and pricing, are defined in the service delivery contracts. Management judgement is used to determine the basis for the revenue recognition; either an individual service delivery contract or a group of combined contracts.
Revenue from service contracts is based on service volumes or time and materials and the performance obligations are recognized over the accounting period in which the services are rendered or project is delivered. The services are generally satisfied and the control transferred to the customer over time given that either the customer simultaneously receives and consumes the benefits provided by the Group, or the Group’s performance does not create an asset with an alternative use for the Group, in which case there is an enforceable right to payment for work completed to date.


In the majority of the businesses providing continuous services, time and material projects and consulting, the performance obligations satisfied are invoiced on a monthly basis. At the time of invoicing, a receivable is recognized by the Group as this represents the point in time at which the right to consideration becomes unconditional, as only the passage of time is required before payment is due. The standard payment term is 30 days according to the Group’s Credit Policy.
Goods, typically distinct licenses, that provide a right to use the software, are invoiced on delivery. The license revenue is recognized at a point in time when the license is delivered, the legal title has passed, the customer has accepted the license and has access to the licensed software. Distinct licenses, that provide a right to access the software, are recognized over the contract period. Contract assets or liabilities do not typically arise in the businesses described above.
For contracts comprising fixed-price projects, revenue is recognized based on the actual service provided by the reporting date as a proportion of the total services to be provided. This is determined based on the cost of actual labour hours spent relative to the total expected cost of labour hours, as it best reflects the transfer of control to the customer. Estimates of revenues, costs or progress towards completion are revised if circumstances change and any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by management. Invoicing and customer payments in the fixed-price projects follow the payment schedule defined in the customer contract. If the services rendered by the Group exceed the payment, a contract asset is recognized, and if the payments exceed the services rendered, a contract liability is recognized.
The customer contracts of the Group typically comprise several of the business models described above. The most appropriate presentation on how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors is considered to be the disaggregation of revenue by segment, presented in the segment information note 5. The disaggregation of customer sales from long-term fixed-price contracts by segment represents the revenue from contracts for which the risks are different compared to other contracts with customers.
Some contracts include delivery of hardware together with a variety of services from the Group. Hardware is usually provided by another service provider. The installation of hardware is simple, does not include an integration service from the Group and could be performed by another party. It is, therefore, accounted for as a separate performance obligation. In these contracts, Tietoevry acts as an agent, if the Group does not obtain control of the hardware provided by another party before it is transferred to the customer, or as a principal if control is obtained.


Where the contracts include multiple performance obligations, the transaction price is allocated to each performance obligation based on the stand-alone selling prices, which are observable from the contracts and represent prices for services rendered in similar circumstances to similar customers. Revenue from contracts granting a discount retrospectively to the customer is recognized based on the price specified in the contract, net of the estimated discounts. Discounts are estimated based on management's experience of the earlier purchases of the customers under similar contracts. This estimation is regularly updated during the contract period. Revenue is only recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.
In settlement agreement cases, consideration paid to customers is reduced from revenue when a settlement agreement is signed with the customer. Consideration received from customers is recognized as revenue or other operating income depending on the facts and circumstances.
The Group grants assurance type of warranties which guarantee that the delivery complies with agreed specifications. These are accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
The Group does not have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. Consequently, the Group does not adjust any of the transaction prices for the time value of money.
The Group capitalizes material costs of set-up activities related to transition or implementation projects in the initial phase of continuous operating service contracts, when the criteria for capitalization according to IFRS 15 are met. Management judgement has been used when developing internal guidance on the tasks defined as set-up activities in the Group. The set-up activities do not result in the transfer of a promised good or service and are not identified as a performance obligation to the customer. The capitalized costs of a contract are amortized during the period when the revenue for the related continuous operating service contract is recognized.

Assets and liabilities related to contracts with customers


EUR million	Note	31 Dec 2023	31 Dec 2022	1 Jan 2022
Trade receivables	14	476.8	408.9	372.8
Contract assets	14	58.4	52.0	52.5
Contract liabilities, non-current	17	6.8	16.9	29.2
Contract liabilities, current	17	77.3	67.2	73.5

In 2023, increases due to acquisitions (see note 25) were EUR 7.9 million in trade receivables and EUR 0.1

million in contract liabilities. In 2022, decreases due to business disposals were EUR 1.7 million in trade

receivables, EUR 0.5 million in contract assets and EUR 1.1 million in contract liabilities.

Revenue recognised from the opening balance of contract liabilities was EUR 60.3 (62.7) million.

In 2022, Tietoevry Banking reached a settlement with a customer following their decision to exit a Nordic

market and therefore to terminate an implementation project. Tietoevry received compensation of EUR

29.4 million, of which EUR 13.5 million was realized against unbilled revenue within contract assets and

EUR 15.9 million was recognized as Other operating income.

Order backlog

The transaction price allocated to all fully or partially unsatisfied performance obligations (order backlog)

amounted to EUR 3 236 (3 327) million at the end of the year. Of the backlog, 54% is expected to be

recognized as revenue during 2024. The order backlog includes all signed customer orders that have not

been recognized as revenue, including estimates of the value of consumption-based contracts.

Assets recognized from costs to fulfil a contract


EUR million	2023	2022
Capitalized set-up costs on 31 Dec	5.8	11.8
Amortization of capitalized set-up costs	6.6	8.4

In the statement of financial position, capitalized set-up costs of EUR 0.4 (6.8) million are presented within

other non-current receivables and the current portion of EUR 5.4 (4.9) million in trade and other

receivables.

7. Other operating income and expenses

Other operating income includes income other than that associated with the principal activities of

Tietoevry, such as capital gains and foreign exchange gains on derivatives. Other operating expenses

mainly relate to information and communication technology and premises related costs as well as

professional services, such as consulting, and marketing. Costs related to shared platforms in

infrastructure services are recognized in other operating expenses when they are not directly linked to any

specific customer.


ACCOUNTING POLICIES
Government grants
Government grants are recognized as other operating income on a systematic basis over the periods necessary to match them with the related costs that they are intended to compensate.
Research and development costs
Research costs are expensed when incurred. Development costs related to major new software products are capitalized as intangible assets when it is probable that the development will generate future economic benefits for the Group, and certain criteria related to commercial and technological feasibility are met. Development costs comprise service and solution development focusing on, for example, industry-specific software, customer experience management and security services, as well as cloud services. Additionally, the costs for related internal development e.g. automation in infrastructure services, are included in development costs.

Other operating income


EUR million	2023	2022
Gain on sale of property, plant and equipment, and business operations	7.1	1.4
Change in fair value of derivatives	7.2	9.2
Government grants	2.5	3.4
Joint venture management fees	0.6	1.3
Other	4.9	34.8
Total	22.2	50.2

Tietoevry Tech Services completed a sale and partial leaseback transaction in December 2023 with the

sale of a data centre and office building in Norway for total consideration of EUR 11.2 million. The net

liability for the partial leaseback amounts to EUR 3.6 million. Tietoevry Tech Services recognized a net gain

of EUR 6.0 million on the sale in other operating income.

In 2022, Tietoevry Banking reached a settlement with a customer following their decision to exit a Nordic

market and therefore to terminate an implementation project. Tietoevry received compensation of EUR

29.4 million, of which EUR 15.9 million was recognized as Other operating income. See note 6. In addition,

Tietoevry Industry received insurance compensation of EUR 12.3 million related to the ending of

Tietoevry’s SmartUtilities platform in 2020.

Other operating expenses


EUR million	2023	2022
Information and communication technology1)	193.7	207.1
Premises related costs	44.6	51.3
Professional services and marketing	43.4	43.0
Other operating expenses	47.2	61.1
Total	328.9	362.6

1) In connection with the changes in the company's legal structure, certain customer contracts have been moved between Tietoevry Tech

Services and Tietoevry Banking. This includes costs related to shared platforms, which have been reclassified from Other operating expenses

to Materials and Services, as such costs are recognized in Materials and Services when directly linked to specific customers.

Fees to auditors


EUR million	2023	2022
Audit fees	1.6	1.3
Audit related	0.3	0.1
Tax advisory	0.0	0.1
Other services	0.3	0.4
Total	2.1	1.9

Development costs

Tietoevry’s development costs amounted to approximately EUR 129.3 (124.6) million, representing 4.5%

(4.3) of the Group's revenue. Of these costs, EUR 44.7 (37.2) million were capitalized. In 2023, the focus

was on developing industry-specific software, especially solutions for Financial Services and Healthcare.

8. Employee expenses

Employee expenses consist of wages and salaries and related social costs. Tietoevry has also post-

employment benefit plans as well as share-based incentive plans for key employees. Termination benefits

refer to benefits arising from termination of employment, not performance of work.


ACCOUNTING POLICIES
Employee benefits are recognised in the period in which services are rendered by the employees. Termination benefits are recognised at the time an agreement between the Group and the employee is made and no future service is rendered by the employee in exchange for the benefits.
Share-based incentive plans
Tietoevry has share-based incentive plans for its key employees which are accounted for as equity- settled. The plans are valued at fair value based on the market price of Tietoevry shares at the grant date and recognized as an employee benefit expense during the vesting period with a corresponding entry in equity. At each reporting date, the number of shares that are expected to vest from the Group’s share-based incentive plans is revised. As part of this evaluation, the changes in the forecasted performance of the Group, the expected turnover of the personnel participating in the plans and other information impacting the number of shares to vest, is taken into consideration. Any adjustments to the initial estimates are recognized in profit or loss and a corresponding adjustment is made to equity. In countries where the reward is intended to be paid fully in cash, the costs are accounted for as cash-settled. Social costs paid on top of the reward are accounted for as cash- settled.

Employee expenses


EUR million	2023	2022
Wages and salaries1)	1 219.3	1 247.9
Post-employment benefits
Defined contribution plans	92.4	100.1
Defined benefit plans	2.2	-2.1
Other benefits	23.8	23.8
Other pay-related statutory social costs	218.2	219.1
Share-based payments	8.7	7.5
Other personnel expenses	1.4	0.8
Total	1 566.0	1 597.2

1) Includes termination benefits

Management remuneration


	2023		2022
EUR thousand	President and CEO	Leadership team	President and CEO	Leadership team2)
Salaries and benefits	875.0	3 339.4	853.5	3 082.3
Bonuses1)	642.3	1 088.7	991.6	1 273.6
Share-based payments	1 105.6	2 415.3	514.4	906.2
Statutory pensions	214.8	460.2	136.5	415.8
Supplementary pensions	213.3	458.7	205.1	323.5
Total	3 051.0	7 762.3	2 701.1	6 001.4

1) In 2023, the bonuses are based on estimates. The comparative information has been updated based on the amounts paid.

2) The comparative information for the Leadership team has been updated based on amounts paid and final estimates for accruals.

The table includes management remuneration based on the time as a member in the Leadership team and

it is presented on an accrual basis, except as noted above.

The President and CEO, Kimmo Alkio is entitled to a bonus corresponding to a maximum of 150% of the

annual base salary based on the Group's external revenue, profit, cash-flow and achievement of strategic

goals when achievements exceed the targets set. The annual contribution for the President and CEO's

supplementary pension arrangement is 23% of the annual base salary. The President and CEO's retirement

age is 63. In case his assignment is terminated, the period of notice is 12 months and the severance

payment is equivalent to the base salary and the short-term target incentive for six months, in addition to

the salary for the notice period. The President and CEO participates in the Long-term incentive

programmes according to respective terms and conditions decided by the Board of Directors. In 2023,

after deductions for applicable taxes, a total of 29 563 (15 472) shares were delivered to the President and

CEO.

Generally, the other Leadership team members are entitled to a bonus corresponding to a maximum of

100% of the annual base salary based on their individual goals when achievements exceed the targets set.

The annual contribution for the Leadership team members' supplementary pension arrangement is up to

15% of the annual base salary. The retirement age of the Leadership team members is according to

national legislation. The termination terms vary and the amounts correspond to the periods of notice. The

Leadership team members participate in the Long-term incentive programmes according to respective

terms and conditions decided by the Board of Directors. In 2023, after deductions for applicable taxes, a

total of 54 445 (22 201) shares were delivered to the Leadership team members.

Remuneration for the Board of Directors


EUR thousand	2023	2022
Board members at 31 Dec 2023
Tomas Franzén, Chairperson Board and RC	173.0	169.3
Harri-Pekka Kaukonen, Deputy Chairperson, Chairperson ARC	106.4	102.9
Bertil Carlsén1)	75.7	—
Elisabetta Castiglioni1)	74.9	—
Liselotte Hägertz Engstam	77.3	79.7
Katharina Mosheim	77.3	78.9
Gustav Moss1)	81.3	—
Endre Rangnes	82.9	78.1
Petter Söderström1)	81.3	—
Timo Ahopelto, Deputy Chairperson2)	2.4	99.6
Niko Pakalén2)	3.2	86.1
Angela Mazza Teufer2)	0.8	64.1
Leif Teksum3)	—	2.4
Tommy Sander Aldrin, personnel rep.1)	15.0	—
Anders Palklint, personnel rep.1)	15.0	—
Thomas Slettemoen, personnel deputy rep.1)	7.5	—
Ilpo Waljus, personnel deputy rep.1)	7.5	15.0
Robert Spinelli, personnel rep.2)	—	15.0
Sigve Sandvik Lærdal, personnel deputy rep.2)	—	—
Total	881.5	791.1

1) As of 23 March 2023

2) Until 23 March 2023

3) Until 24 March 2022

Each member of the Board of Directors receives a fixed annual remuneration and additional meeting based

remuneration. According to the decision by the Annual General Meeting, the yearly remuneration is as

follows: Chairperson EUR 133 000, Deputy Chairperson EUR 72 000, and ordinary member EUR 54 500. In

addition to these fees, the Chairperson of a permanent Board Committee receives an annual fee of

EUR 20 000 and a member of a permanent Board Committee receives an annual fee of EUR 10 000. In

addition, remuneration of EUR 800 is paid to the Board members elected by the Annual General Meeting

for each Board of Director's meeting, permanent committee or temporary subgroup meeting. Further,

remuneration for employee representatives elected as ordinary members of the Board of Directors will be

an annual fee of EUR 15 000, and remuneration for the deputy members will be EUR 7 500. Remuneration

for the employee representatives is paid in cash only.

The Annual General Meeting also approved that part of the fixed annual remuneration may be paid in the

company’s shares purchased from the market. An elected member of the Board of Directors may, at his/

her discretion, choose to receive the fee from the following five alternatives:

1. No cash, 100% in shares

2. 25% in cash, 75% in shares

3. 50% in cash, 50% in shares

4. 75% in cash, 25% in shares, or

5. 100% in cash, no shares.

The shares will be purchased in accordance with an acquisition programme prepared by the company. If

the remuneration cannot be paid in shares due to insider regulation, termination of the Board member’s

term of office or other reason relating to the member of the Board, the remuneration shall be paid fully in

cash. In addition to the share remuneration, the Board members do not belong to or are not compensated

with other share-based arrangements, nor do the members have any pension plans at Tietoevry except the

employee representatives.

The Shareholders' Nomination Board based on shareholdings as at 31 August 2023 consisted of the

following representatives announced by Tietoevry’s shareholders:

• Annareetta Lumme-Timonen, Investment Director, Solidium Oy

• Alexander Svensson, Vice President, Cevian Capital AG

• Alexander Kopp, Investment Manager, Incentive AS

• Mikko Lantto, Chief Technology and Development Officer, Ilmarinen Mutual Pension Insurance

Company

• Tomas Franzén, Chairperson of the Board of Directors, Tietoevry Corporation.

Share-based incentive plans

The aim of Tietoevry's share-based incentive plans is to align the objectives of shareholders and key

employees in order to increase the value of the company in the long-term. At the end of 2023, Tietoevry's

share-based incentive plans included Performance Share Plans 2021–2023, 2022–2024 and 2023–2025

as well as Restricted Share Plans 2021–2023, 2022–2024 and 2023–2025. The rewards from the plans

will be paid partly in the company’s shares and partly in cash. The cash proportion is intended to cover

taxes and tax-related costs arising from the reward.

As a rule, no reward will be paid, if a participant´s employment or service ends before the reward payment.

The Board of Directors anticipates that share rewards to be delivered to the participants under the plans

will consist of shares to be acquired from the market. Thus, no new shares will be issued in connection

with the plans.

The Performance Share Plan 2020–2022 and the Restricted Share Plan 2020–2022 ended in 2023. Based

on the achievements of the targets, a total of 565 314 gross shares were earned and of these 302 789 net

shares were delivered to the participants. Tietoevry used its treasury shares for the reward payments. In

2023, the following gross shares were earned and paid fully in cash to participants who left Tietoevry in

accordance with the plan rules: a total of 20 884 gross shares under Performance Share Plan 2021-2023, a

total of 14 951 gross shares under Performance Share Plan 2022-2024 and a total of 118 gross shares

under Performance Share Plan 2023-2025.

The estimated future cash payment to be made to the tax authorities from share-based payments is EUR

9.3 million.

Main terms and conditions of the share-based incentive plans


	Performance Share Plan
	2021–2023	2022–2024	2023-2025
Plan launched	16 February 2021	16 February 2022	14 February 2023
Performance period	2021–2023	2022–2024	2023–2025
Vesting conditions	Relative Total Shareholder Return of Tietoevry share (TSR), strategic target related to Tietoevry's growth and Tietoevry's Earnings per Share (EPS). Valid employment or director agreement of a key employee upon the reward payment.	Relative and absolute Total Shareholder Return of Tietoevry share (TSR), Revenue growth and ESG target. Valid employment or director agreement of a key employee upon the reward payment.	Relative Total Shareholder Return of Tietoevry share (TSR) and ESG targets (gender diversity and CO2 reduction). Valid employment or director agreement of a key employee upon the reward payment.
Exercised	In shares and cash in 2024	In shares and cash in 2025	In shares and cash in 2026
Number of participants on 31 Dec 2023	81	464	512
Other	On 31 Dec 2023, rewards to be paid correspond to the value of approximate number of 375 130 Tietoevry gross shares.	On 31 Dec 2023, rewards to be paid correspond to the value of approximate number of 845 818 Tietoevry gross shares.	On 31 Dec 2023, rewards to be paid correspond to the value of approximate number of 890 740 Tietoevry gross shares.


	Restricted Share Plan
	2021–2023	2022–2024	2023-2025
Plan launched	16 February 2021	16 February 2022	14 February 2023
Vesting period	2021–2023	2022–2024	2023–2025
Vesting conditions	Valid employment or director agreement of a key employee upon the reward payment.
Exercised	In shares and cash in 2024	In shares and cash in 2025	In shares and cash in 2026
Number of participants on 31 Dec 2023	373	142	152
Other	On 31 Dec 2023, rewards to be paid correspond to the value of approximate number of 189 763 Tietoevry gross shares.	On 31 Dec 2023, rewards to be paid correspond to the value of approximate number of 57 235 Tietoevry gross shares.	On 31 Dec 2023, rewards to be paid correspond to the value of approximate number of 52 598 Tietoevry gross shares.

Assumptions made in determining the fair value of Tietoevry's Share-based incentive

plans

For Performance Share Plans and Restricted Share Plans, the fair value has been determined at grant using

the fair value of the company share as of the grant date and expected dividends. Market-based

performance metric outcome probability is estimated using Monte-Carlo simulation.

The fair value of social costs settled in cash are remeasured at each reporting date until settlement.

For share plan grants made in 2023, the fair value of the part recognised in equity has been determined at

grant date using the following assumptions. The part recognised as a liability is based on the share price at

the end of the reporting period:

• Share price at grant: EUR 22.70

• Expected dividends: EUR 3.61

• Risk-free interest rate: 3.07%

• Expected volatility (historical daily observations over corresponding maturity): 23.2%

• Contractual life: 2.8 years

• Fair value at grant: EUR 12.22

• Share price at year-end: EUR 21.54

Share-based payments included in employee benefit expenses


EUR million	2023	2022
Equity-settled share-based incentive plans	9.5	6.9
Cash-settled share-based incentive plans	0.1	0.0
Social costs settled in cash1)	0.9	1.3
Total	10.5	8.2

1) Social costs from all plans are reported as cash-settled.

Share option programme transferred from EVRY - settled in 2022

As part of the Merger plan, it was agreed that EVRY's incentive plans will continue and will be transformed

in a value neutral way into restricted stock units or performance shares in the combined company, with

equivalency on all material respects with regards to economic value, vesting conditions and other terms

and conditions, taking into account the strike price of the options and by applying an option conversion

ratio of 1:0.1423. Any existing right for EVRY to settle options and/or restricted stock units under the plans

in cash, will continue as a right for the combined company. The final reward instalment from Long-Term

Incentive Plan 2018 was paid in 2022. Based on the achievements of the targets, a total of 54 061 gross

shares were earned and of these, 26 442 net shares were delivered to the participants. Tietoevry used its

treasury shares for the reward payments.

9. Income taxes

Income tax expenses comprise current and deferred tax. Deferred tax assets and liabilities charged by the

same tax authority are netted and, therefore, shown net on the statement of financial position.


ACCOUNTING POLICIES
Tax expense for the period includes current taxes of the Group companies based on taxable profit for the year, together with tax adjustments for previous years and changes in deferred taxes. Tax is recognized in the income statement, except to the extent that it relates to items recognized in other comprehensive income or directly in equity, in which case the related income tax is also recognized in other comprehensive income or directly in equity, respectively. The share of results in joint ventures is reported in the income statement based on the net result and thus, including the income tax effect.
Deferred income tax is recognized, using the liability method, on temporary differences between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements as well as on tax loss carry forwards. Deferred income tax is determined using the tax rates and laws which have been enacted or substantively enacted at the reporting date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred taxes are not recognized on temporary differences related to investments in subsidiaries to the extent that they will probably not be reversed in the foreseeable future.
A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. The deferred tax assets and liabilities arising from consolidation are recognized in the consolidated statement of financial position if it is probable that the related tax effects will occur.


ACCOUNTING ESTIMATES AND JUDGEMENTS
At each reporting date, management estimates the amount of probable future taxable profits against which unused tax losses can be utilized. As the actual profits may differ from the forecasts, the change will affect the taxes in future periods.
The group operates globally and is, therefore subject to changing tax laws in multiple jurisdictions. The interpretation of tax legislation requires management judgement, and the applied interpretations may include uncertainties.

Income tax expense in income statement


EUR million	2023	2022
Current taxes	40.4	43.7
Change of deferred taxes	11.2	5.8
Taxes for prior years	-3.0	4.7
Total	48.6	54.2

Reconciliation of income tax expense
Profit before taxes	220.8	242.8
Tax calculated at the domestic corporation tax rate of 20%	44.2	48.6
Effect of different tax rates in foreign subsidiaries	2.8	2.4
Taxes for prior years	-3.0	4.7
Deferred taxes from previous year	0.1	-4.9
Tax effect of non-deductible expenses and tax exempt income	1.3	2.3
Tax on foreign dividend distribution	4.6	2.9
Other items	-1.4	-1.8
Total	48.6	54.2

Effective tax rate, %	22.0	22.3

OECD Pillar Two income taxes

In December 2021, the Organisation for Economic Co-operation and Development (OECD) released the

Pillar Two model rules (the Global Anti-Base Erosion model rules, or "GloBE") to reform international

corporate taxation. Tietoevry is within the scope of the Pillar Two model rules. The relevant legislation was

enacted in Finland, the country of incorporation for Tietoevry Corporation, and is effective from 1 January

2024.

Since the Pillar Two legislation was not effective at the reporting date, the Group has no related current tax

exposure. The Group applies the exception to recognizing and disclosing information about deferred tax

assets and liabilities related to Pillar Two taxes.

Under the model rules, the Group is liable to pay top-up tax for the difference between its GloBE effective

tax rate per jurisdiction and the 15% minimum tax rate. Management has assessed that the Group will not

have material exposure to Pillar Two income taxes in any of its jurisdictions.

Movements in deferred tax assets and liabilities during the year


EUR million	1 Jan 2023	Charged to income statement	Charged to other comprehensive income	Acquisitions and disposals	Other changes	31 Dec 2023
Deferred tax asset
Tax losses carried forward	39.0	-7.1	—	—	-8.3	23.6
Property, plant and equipment	10.8	5.9	—	—	-0.2	16.6
Lease liabilities	43.5	-2.7	—	0.3	-1.0	40.1
Employee benefits	10.2	-0.4	-0.1	—	-0.4	9.3
Provisions	3.0	-1.2	—	—	-0.1	1.6
Revenue recognition	6.3	-2.3	—	—	-0.4	3.6
Other temporary difference	4.2	0.3	—	0.1	-3.4	1.2
Total gross	117.1	-7.5	-0.1	0.4	-13.8	96.1
Offset against deferred tax liabilities	-102.5					-84.2
Total net	14.6					11.8

Deferred tax liability
Intangible assets	48.4	-7.6	—	5.6	-3.7	42.8
Right-of-use assets	39.9	-3.9	—	0.3	-1.0	35.4
Untaxed reserves	10.7	-0.7	—	—	0.1	10.1
Other temporary difference	14.2	15.7	0.1	—	-6.5	23.5
Total gross	113.2	3.6	0.1	5.9	-11.0	111.7
Offset against deferred tax assets	-102.5					-84.2
Total net	10.7					27.5

Net deferred tax asset	3.9	-11.2	-0.2	-5.5	-2.8	-15.7

The majority of the deferred tax assets and liabilities is expected to be recovered after more than 12 months.

On 31 December 2023, the Group's unused tax loss carry forwards amounted to EUR 108.9 (177.4) million pertaining to deferred tax assets of EUR 23.6 (39.0) million. These losses relate mainly to Norway and Sweden and

have no expiry date. Based on profit forecasts, it is probable that there will be sufficient future taxable profits available against which these tax losses can be utilized.

On 31 December 2023, the Group had tax loss carry forwards amounting to EUR 0.4 (0.7) million pertaining to deferred tax assets of EUR 0.1 (0.1) million, which were not recognized due to uncertainty of utilization.

The Group does not have any material uncertain tax positions in accordance with IFRIC 23 Uncertainty over Income Tax Treatments.


EUR million	1 Jan 2022	Charged to income statement	Charged to other comprehensive income	Other changes	31 Dec 2022
Deferred tax asset
Tax losses carried forward	49.6	-9.8	—	-0.8	39.0
Property, plant and equipment	7.7	3.2	—	-0.1	10.8
Lease liabilities	46.0	-0.4	—	-2.1	43.5
Employee benefits	11.8	-0.7	-0.4	-0.5	10.2
Provisions	3.6	-0.4	—	-0.2	3.0
Revenue recognition	9.5	-2.8	—	-0.4	6.3
Other temporary difference	4.7	-0.6	—	0.1	4.2
Total gross	132.9	-11.4	-0.4	-4.0	117.1
Offset against deferred tax liabilities	-113.8				-102.5
Total net	19.1				14.6

Deferred tax liability
Intangible assets	64.1	-14.4	—	-1.3	48.4
Right-of-use assets	41.4	0.5	—	-2.0	39.9
Untaxed reserves	9.5	2.0	—	-0.8	10.7
Other temporary difference	7.9	6.3	—	—	14.2
Total gross	122.9	-5.6	—	-4.1	113.2
Offset against deferred tax assets	-113.8				-102.5
Total net	9.1				10.7

Net deferred tax asset	10.0	-5.8	-0.4	0.1	3.9

10. Earnings per share

The total number of Tietoevry's shares on 31 December 2023 amounted to 118 425 771. At the end of the

reporting period, the number of own shares totalled 34 679, representing 0.03% of the total number of

shares and voting rights.


ACCOUNTING POLICIES
Basic Earnings per share (EPS) is calculated by dividing the net profit attributable to the shareholders of the Parent company by the weighted average number of shares in issue during the year, excluding shares purchased by Tietoevry and held as own shares.
Diluted earnings per share is calculated by adjusting the weighted average number of shares outstanding during the year with the shares estimated to be delivered based on the share-based incentive plans.


	2023	2022
Net profit for the financial year attributable to owners of the Parent company (EUR million)	172.2	188.6

Earnings per share (EUR)
Basic	1.45	1.59
Diluted	1.45	1.59

Weighted average number of shares during the year
Basic	118 375 769	118 405 657
Effect of dilutive share-based incentive plans	271 334	203 952
Diluted	118 647 103	118 609 609

INVESTED CAPITAL AND WORKING CAPITAL ITEMS

This section includes disclosures describing the assets that form the basis for the activities of Tietoevry

and the related liabilities.

11. Goodwill and other intangible assets

Tietoevry's intangible assets comprise mainly goodwill, internally developed software (capitalized

development costs), and intangible assets acquired in business combinations, such as technology,

trademarks and customer relationships. Intangible assets also include software licenses. Tietoevry does

not have any intangible assets with indefinite useful lives other than goodwill.


ACCOUNTING POLICIES
Intangible assets other than goodwill are recognized initially at cost. An intangible asset is recognized only if it is probable that the future economic benefits attributable to the asset will flow to the Group and the cost of the asset can be measured reliably. All other costs are expensed as incurred.
After initial recognition, intangible assets are measured at cost less amortization and accumulated impairment losses. Intangible assets are amortized over their useful lives with the straight-line method. Assets that are subject to amortization are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount of the intangible asset exceeds its recoverable amount, an impairment loss equal to the difference is recognized in profit or loss.
Internally developed software
Development costs related to major new software products are capitalized as intangible assets when it is probable that the development will generate future economic benefits for the Group, and certain criteria related to commercial and technological feasibility are met. Development projects are analysed individually to determine the moment when the project has reached a milestone after which capitalization of development costs can start. Only costs which are directly attributable to the development are capitalised.


Subsequent to initial recognition, these costs are measured at cost less accumulated amortization and impairment losses. The amortization period for internally developed software depends on the technology renewal cycle and contract duration. Internally developed software for which amortization has not yet started is tested for impairment on an annual basis by comparing the asset's carrying amount with its recoverable amount. If the carrying amount exceeds the recoverable amount, an impairment loss equal to the difference is recognized in profit or loss.
Intangible assets recognised from acquisitions
Intangible assets acquired in business combinations are measured at fair value at the acquisition date. These are usually customer or technology related and have finite useful lives.
Gains and losses on disposal of intangible assets are included in other operating income and expenses.
The Group applies the following useful lives:


	Years
Software acquired separately	3
Other intangible assets	3–10
Technology related intangible assets recognized at fair value from acquisitions	3–15
Customer related intangible assets recognized at fair value from acquisitions	2–10
Trademark recognized at fair value from acquisitions	6
Internally developed software (capitalized development costs)	5–15


Goodwill
Goodwill arising on a business combination represents the excess of the aggregate of the consideration transferred, the amount of non-controlling interests in the acquiree and previously held equity interest in the acquiree over the fair value of the Group’s share of the identifiable net assets acquired. Goodwill is measured at cost less accumulated impairment losses. It is not amortized, but tested for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purpose of impairment testing, goodwill is allocated to the operating segments of the Group, which are the cash generating units (CGU) expected to benefit from the synergies of the business combination. If the carrying amount of goodwill allocated to the operating segments exceeds its recoverable amount, an impairment loss equal to the difference is recognized in profit or loss. The recoverable amount is the higher of the value in use represented by the net present value of future cash flows and the fair value less costs to sell. Impairment losses on goodwill are not reversed.
In respect of joint ventures, goodwill is included in the carrying amount of the investment.


ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates are made when determining the fair values of assets acquired in a business combination. The valuation requires management to determine the appropriate valuation technique and inputs for fair value measurements, such as discount rate.
Determining whether goodwill is impaired requires an estimation of the value-in-use of the cash- generating units (CGU) to which goodwill has been allocated. The value-in-use calculation requires management to estimate the future cash flows expected to arise from the CGUs and an appropriate discount rate to calculate present value.
While management believes that the estimates and assumptions used are reasonable, there are uncertainties which could materially affect the valuations.

Intangible assets


EUR million	Goodwill	Software acquired separately	Intangible assets recognized from acquisitions1)	Internally developed software2)	Other	Advance payments	Total
Acquisition cost 1 Jan 2023	1 846.5	29.5	291.3	308.3	29.3	3.3	2 508.2
Acquisitions of subsidiaries	137.4	0.1	22.6	—	—	—	160.1
Additions	—	6.9	—	44.7	0.0	0.6	52.1
Disposals	—	-8.5	-17.3	-5.5	-9.9	—	-41.3
Reclassifications	—	2.3	—	—	0.7	-2.6	0.4
Translation differences	-76.6	-0.3	-14.7	-16.6	-0.1	-0.1	-108.4
Acquisition cost 31 Dec 2023	1 907.3	29.9	282.0	330.8	19.9	1.2	2 571.1

Accumulated amortization and impairments 1 Jan 2023	—	-22.6	-153.6	-122.6	-26.1	0.0	-324.9
Disposals	—	8.5	17.3	5.5	9.9	—	41.3
Amortization	—	-4.7	-41.8	-6.3	-1.1	—	-53.9
Impairments	—	—	—	—	—	—	—
Reclassifications	—	-0.4	—	—	0.0	—	-0.4
Translation differences	—	0.4	6.8	6.4	0.1	—	13.6
Accumulated amortization and impairments 31 Dec 2023	—	-18.7	-171.5	-117.0	-17.2	0.0	-324.3

Carrying value 1 Jan 2023	1 846.5	6.9	137.7	185.7	3.2	3.3	2 183.3
Carrying value 31 Dec 2023	1 907.3	11.2	110.6	213.9	2.8	1.2	2 246.8

1) Includes technology and customer related intangible assets as well as trademark recognized at fair value from acquisitions.

2) Comprises mainly the development of Tietoevry's Lifecare and Core banking & Payment solutions.


EUR million	Goodwill	Software acquired separately	Intangible assets recognized from acquisitions1)	Internally developed software2)	Other	Advance payments	Total
Acquisition cost 1 Jan 2022	1 943.7	49.6	308.6	285.3	38.2	3.5	2 628.9
Additions	—	2.7	—	37.2	0.9	2.7	43.5
Disposals	—	-25.2	—	—	-9.7	-0.7	-35.7
Reclassifications	—	3.6	—	-1.9	0.1	-2.2	-0.5
Translation differences	-97.1	-1.1	-17.3	-12.2	-0.1	-0.0	-128.0
Acquisition cost 31 Dec 2022	1 846.5	29.5	291.3	308.3	29.3	3.3	2 508.2

Accumulated amortization and impairments 1 Jan 2022	—	-42.5	-115.4	-103.3	-35.3	-0.7	-297.3
Disposals	—	25.2	—	—	9.7	0.7	35.7
Amortization	—	-6.0	-46.7	-4.8	-0.9	—	-58.5
Impairments	—	—	—	-18.7	—	—	-18.7
Reclassifications	—	-0.4	—	—	0.3	—	0.0
Translation differences	—	1.0	8.5	4.3	0.1	—	13.9
Accumulated amortization and impairments 31 Dec 2022	—	-22.6	-153.6	-122.6	-26.1	0.0	-324.9

Carrying value 1 Jan 2022	1 943.7	7.1	193.2	182.0	2.8	2.8	2 331.6
Carrying value 31 Dec 2022	1 846.5	6.9	137.7	185.7	3.2	3.3	2 183.3

1) Includes technology and customer related intangible assets as well as trademark recognized at fair value from acquisitions.

2) Comprises mainly the development of Tietoevry's Lifecare and Core banking & Payment solutions. In 2022, Tietoevry Banking reached a settlement with a customer following their decision to exit a Nordic market and therefore to terminate an implementation project. Capitalized development work

specific for this customer was written-off resulting in an impairment loss of EUR 18.7 million. See also note 5.

Impairment testing of goodwill

The annual impairment testing was carried out in the fourth quarter of 2023 in line with Group accounting

policy. The Group is organized into five businesses which are Tietoevry Create, Tietoevry Banking,

Tietoevry Care, Tietoevry Industry, and Tietoevry Tech Services. From 1 April 2023, Tietoevry Transform

and Tietoevry Connect were combined to form Tietoevry Tech Services, and the comparative information

has been restated accordingly. The five businesses form the Group's operating segments, see note 5 for

more information on the segments. The businesses form the cash-generating units (CGU) providing

services to selected customers in their market segments, and represent the lowest level at which goodwill

is monitored for internal management purposes.

Carrying amount of goodwill by CGU


EUR million	31 Dec 2023	31 Dec 2022
Tietoevry Create	697.7	575.5
Tietoevry Banking	308.7	325.9
Tietoevry Care	260.9	273.5
Tietoevry Industry	188.4	197.5
Tietoevry Tech Services	451.6	474.0
Total	1 907.3	1 846.5

Compared to 31 December 2022, the goodwill increased by EUR 137.4 million as a result of the acquisition

of MentorMate and decreased by EUR 76.6 million due to exchange rate fluctuations.

As a result of the impairment testing, no impairment was identified.

Recoverable amounts

The recoverable amounts of the CGUs of Tietoevry are determined based on value-in-use calculations

which are prepared using discounted cash flow projections. Annually, management of the Group defines

the long-term ambitions and strategic objectives for the coming years taking into account, for example,

industry growth forecasts obtained from external sources as well as salary increase assumptions. The

strategic objectives serve as basis for the businesses' long-term plans which are reviewed and approved

by the Group's top management.

The planning horizon covers a five-year period including key assumptions for sales growth rate,

development of EBITDA, capital expenditure including investments for right-of-use assets, tax payments

and changes in net working capital. Forecasted EBITDA margins are adjusted for expected efficiency

improvements. The key assumptions used are based on past experience and reflects management's

expectations of future development of sales prices, business mix, costs, market shares and volumes.

Subsequent to the five-year projection period, the terminal growth rate used is 2%, which is consistent with

the long term inflation rates in the Nordic countries (as the primary locations) and does not exceed the

expectations of growth in real terms.

Discount rate

The discount rate applied to the cash flow projections is the weighted average pre-tax cost of capital

(WACC). The components of the WACC rates are risk-free rate, market risk premium, country risk premium,

industry specific beta, cost of debt and debt equity ratio. The risk-free rate is based on 30-year German

government bond adjusted by the weighted average inflation differential between Germany and the

countries where each CGU has operations. The discount rates are also adjusted for the additional business

risk of the CGUs. The pre-tax discount rates for the CGUs vary between 8.8% and 11.6%.

Assumptions used in discounting the cash flow projections by the CGUs:


2023	Five-year period 2024–2028
	Terminal growth rate %	Pre-tax WACC %
Tietoevry Create	2.0	11.6
Tietoevry Banking	2.0	9.1
Tietoevry Care	2.0	8.8
Tietoevry Industry	2.0	8.9
Tietoevry Tech Services	2.0	8.9

Sensitivity analysis

The value-in-use calculation for each CGU is most sensitive to changes in WACC and EBITDA margin

assumptions. No reasonable change in key assumptions would result in recognition of an impairment loss in

any of the CGUs. The CGU that is most sensitive to changes in assumptions in the goodwill impairment test

is Tietoevry Tech Services, where a decrease of 2–3 percentage points in the long-term EBITDA margin

would cause the recoverable amount of this CGU to equal the carrying amount.The recoverable amount for

Tietoevry Tech Services exceeded the carrying amount of the assets tested by approximately EUR 430

million.

12. Property, plant and equipment

Tietoevry's property, plant and equipment comprise mainly information and communication technology

(ICT) equipment.


ACCOUNTING POLICIES
Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses.
Land is not depreciated. Property, plant and equipment acquired in business combinations are measured at fair value at the acquisition date. Depreciation is recognized according to plan based on the estimated economic lives of the individual assets and accounted for in accordance with the straight-line method. The assets' residual useful lives are reviewed, and adjusted if appropriate, at each reporting date.
Assets that are subject to depreciation are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss equal to the difference is recognized in profit or loss.
The group applies the following useful lives:


	Years
Buildings and structures	25–40
Data processing equipment1)	1–5
Other machinery and equipment	5
Other tangible assets	5

1) Purchases of personal computers are expensed immediately.

Property, plant and equipment


EUR million	Land	Buildings and structures	Machinery and equipment	Other tangible assets	Advance payments and work in progress	Total
Acquisition cost 1 Jan 2023	1.2	3.8	385.6	64.7	19.1	474.4
Acquisitions of subsidiaries	—	—	0.3	0.4	0.1	0.8
Additions	—	—	21.3	2.4	9.5	33.2
Disposals	—	-0.4	-76.8	-4.3	-0.1	-81.6
Reclassifications	—	—	14.8	0.5	-14.0	1.3
Translation differences	—	—	-5.5	-0.2	-0.3	-6.0
Acquisition cost 31 Dec 2023	1.2	3.4	339.7	63.4	14.4	422.1

Accumulated depreciation and impairments 1 Jan 2023	—	-2.1	-330.3	-44.9	0.0	-377.2
Disposals	—	0.4	74.6	4.2	—	79.2
Depreciation	—	-0.1	-32.2	-6.4	—	-38.8
Impairments	—	—	—	—	—	—
Reclassifications	—	—	-1.3	0.0	—	-1.3
Translation differences	—	—	4.8	0.0	—	4.8
Accumulated depreciation and impairments 31 Dec 2023	—	-1.8	-284.5	-47.1	0.0	-333.4

Carrying value 1 Jan 2023	1.2	1.7	55.4	19.8	19.1	97.2
Carrying value 31 Dec 2023	1.2	1.6	55.2	16.3	14.4	88.8


EUR million	Land	Buildings and structures	Machinery and equipment	Other tangible assets	Advance payments and work in progress	Total
Acquisition cost 1 Jan 2022	1.2	3.8	408.3	61.5	12.7	487.5
Additions	—	—	29.4	4.5	16.2	50.0
Disposals	—	—	-50.3	-1.5	-1.1	-52.9
Reclassifications	—	—	10.6	1.9	-8.3	4.1
Translation differences	—	—	-12.3	-1.7	-0.3	-14.3
Acquisition cost 31 Dec 2022	1.2	3.8	385.6	64.7	19.1	474.4

Accumulated depreciation and impairments 1 Jan 2022	—	-2.0	-356.9	-40.3	-0.9	-400.1
Disposals	—	—	49.1	1.5	0.9	51.6
Depreciation	—	-0.1	-29.9	-7.4	—	-37.4
Impairments	—	—	—	—	—	—
Reclassifications	—	—	-3.5	-0.1	0.0	-3.6
Translation differences	—	—	10.9	1.4	—	12.3
Accumulated depreciation and impairments 31 Dec 2022	—	-2.1	-330.3	-44.9	0.0	-377.2

Carrying value 1 Jan 2022	1.2	1.8	51.4	21.2	11.8	87.4
Carrying value 31 Dec 2022	1.2	1.7	55.4	19.8	19.1	97.2

13. Leases

Tietoevry Group mainly acts as a lessee and leases premises, IT equipment and cars. In monetary terms,

the highest portion of the Group's lease portfolio is for leasing premises. Tietoevry Group also leases

equipment for data centres to support continuous service delivery to its customers.


ACCOUNTING POLICIES
The Group as a lessee
The Group assesses whether a contract is, or contains, a lease at inception of the contract. The Group recognizes a right-of-use asset and a corresponding lease liability at the commencement date of a lease. Initially, the lease liability is measured at the present value of the future lease payments to be made over the lease period. The lease payments include fixed payments, less any lease incentives receivable, variable lease payments that depend on an index or rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option if it is reasonably certain to be exercised and payments of penalties for terminating the lease if the lease term reflects the exercise of a termination option.
To determine the present value of future lease payments, the Group discounts the lease payments using the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. The incremental borrowing rate reflects the rate at which the Group could borrow an amount similar to the value of the right-of-use asset in a similar economic environment. At year-end, the average annual incremental borrowing rate applied to discount remaining lease payments for existing lease agreements is 5.9%.
The Group determines the lease term as the non-cancellable period of the lease, together with the periods covered by an option to extend the lease, if it is reasonably certain to be exercised, and periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Group has some lease contracts for which the lease term is cancellable with only a short notification period (“evergreen leases”). Management uses judgement to evaluate the lease term for leases with extension or termination options, and for leases with a short notification period. Management estimates the lease term based on overall strategy and business development plans as well as contract specific facts and circumstances.
At 31 December 2023, the weighted average residual lease term for lease contracts is 6.6 years (residual terms vary between 0.1 - 16.3 years).


Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets comprises the initial measurement of the corresponding lease liability, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful life of the underlying asset.
Lease liabilities are measured at amortized cost. The carrying amount of lease liabilities is increased to reflect the interest on the lease liability and decreased for the lease payments made. Interest expenses related to the lease liabilities are recognized in profit or loss. The carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term or in lease payments, or a change in the Group’s assessment of an option to purchase the underlying asset.
The Group applies the recognition exemption provided for leases. Lease payments for leases of low value assets and short-term leases (less than 12 months) are recognized in the income statement on a straight-line basis. The low value assets comprise IT equipment and office furniture.
The Group has elected to separate the service component of a lease for all asset types, except for cars, where only variable lease payments are excluded from the measurement of the lease liability. Non-lease components are separated from lease payments based on fair market value. If such information is not readily available, management judgment is applied in estimating the value.
The Group presents the payment of the principal portion of the lease liability in the cash flows from financing activities and the interest portion in the cash flows from operating activities. Lease payments related to low value assets and short-term leases are presented in cash flow from operating activities.
The Group as a lessor
If an arrangement conveys a right to use a specific asset to a purchaser, often together with related services, the assets, mainly technical equipment, are classified as embedded finance leases. Further the lease is classified either as Operating lease or Finance lease. At 31 December 2023, all such cases have been classified as Finance leases. Sales derived from these embedded finance leases are recognized at the beginning of the agreement period. The annual payments are disclosed as amortization of the finance lease loan receivable and interest income.

Leases impact on income statement


EUR million		31 Dec 2023	31 Dec 2022
Tietoevry as a Lessee	Depreciation expenses of right-of-use assets	-59.8	-66.4

Tietoevry as a Lessee	Impairment losses	-2.7	—

Tietoevry as a Lessee	Variable lease payments	-8.5	-7.9
Tietoevry as a Lessee	Short-term leases and low value leases	-4.2	-5.2
	Other income and expenses	-12.7	-13.1

Tietoevry as a Lessor	Revenue	2.7	0.8
Tietoevry as a Lessor	Materials and services	-1.5	-0.7

Tietoevry as a Lessor	Finance income on the net investment in lease	0.1	0.1
Tietoevry as a Lessee	Interest expense on lease liabilities	-10.6	-9.7
	Expenses reported in financial items	-10.5	-9.6

	Total impact on income statement from leasing contracts	-84.4	-89.0

Leases impact on statement of cash flows


EUR million		31 Dec 2023	31 Dec 2022
Tietoevry as a Lessee	Interest paid (cash flow from operating activities)	-9.6	-9.4
	Principal paid (cash flow from financing activities)	-58.1	-66.3

Leases impact on the statement of financial position

Right-of-use assets


EUR million		Buildings	Machinery and Equipment	Total
Tietoevry as a Lessee	31 Dec 2022	185.9	16.0	201.9
	Acquisitions	2.2	—	2.2
	Additions1)	60.7	15.8	76.5
	Terminations	-14.0	-2.7	-16.7
	Depreciation	-49.8	-10.0	-59.8
	Impairment2)	-2.7	—	-2.7
	Other	0.0	0.0	0.0
	Currency translation differences	-5.4	-0.2	-5.6
	31 Dec 2023	177.0	18.9	195.9

1) Additions represent increase in right-of-use assets both due to new lease contracts, as well as remeasurements and lease modifications.

2) For more information, see note 5.


EUR million		Buildings	Machinery and Equipment	Total
Tietoevry as a Lessee	31 Dec 2021	171.5	21.0	192.4
	Divestment of subsidiary	-0.1	—	-0.1
	Additions1)	95.7	9.6	105.3
	Terminations	-19.9	-1.8	-21.7
	Depreciation	-54.2	-12.3	-66.4
	Currency translation differences	-7.1	-0.5	-7.6
	31 Dec 2022	185.9	16.0	201.9

Lease liabilities


EUR million	31 Dec 2023	31 Dec 2022
Current	50.3	54.1
Non-current	161.4	155.9
Total	211.7	210.0

The movement in lease liabilities during the reporting period is presented in note 19.

The maturity structure of contractual undiscounted lease payments is presented in note 18.

Lease receivables

Net investment in leases


EUR million	31 Dec 2023	31 Dec 2022
Current	2.2	2.4
Non-current	—	0.2
Total	2.2	2.6

Maturity analysis - contractual undiscounted cash flows for finance leases


EUR million	31 Dec 2023	31 Dec 2022
Within one year	2.2	2.4
One to two years	—	0.2
Total undiscounted lease receivable	2.2	2.7
Unearned finance income	0.0	0.0
Net investment in leases	2.2	2.6

14. Trade and other receivables

Trade receivables represent amounts that Tietoevry expects to collect from other parties in the ordinary

course of business. Trade receivables are non-interest bearing and the standard payment term is 30 days,

according to the Group’s Credit Policy. Contract assets relate to fixed-price projects where the customer

invoicing is based on agreed milestones and the services rendered by the reporting date exceed the

payment received. License fees relate to prepaid license costs that will be realized on an accrual basis in

future periods. Other interest-bearing receivables relate to assets that are financed as part of customer

deliveries and where the contracts are treated as service contracts.

Trade receivables to be sold via non-recourse arrangements for the sale of receivables, but not yet

derecognized as of the reporting date, are classified as Financial assets at fair value. More information in

note 21.


ACCOUNTING POLICIES
Trade receivables are initially recognised at fair value and subsequently at amortized cost less expected credit loss allowance (ECL). Tietoevry has elected to use the practical expedient and calculate lifetime ECL based on a pre-defined allowance matrix with customer segment specific credit characteristics, based on the following criteria: • Country Group (Finland, Sweden, Norway, Other European Union countries, Other countries) • Customer Industry Group (Financial Services, Public Healthcare & Welfare, Industrial customer Services) • Balance due status (Not yet due, overdue 1–7 days, 8–30 days, 31–60 days, 61–90 days, over 90 days)
Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. Default is defined as 90 days past due or a write off event, due to inability to collect debt.
For each segment, the ECL rate (expressed as a percentage) indicates the historical average defaults identified during the past three years and also the Group’s assessment of the possible impact from changes in the overall economic environment in which its customers operate. These collective allowances can be increased if the customer has filed for bankruptcy but has not yet registered the fact or if there are any facts or circumstances indicating that the customer’s credit risk is above industry/country average.


No ECL is calculated for the portion of trade receivables, where the credit risk is covered by credit insurance. When calculating ECL for contract assets, Tietoevry uses the ECL rate set for “not yet due” invoices in the allowance matrix.
Trade receivables are permanently written off when there is no reasonable expectation of recovery. Subsequent recoveries of amounts previously written off are credited to the income statement. Other interest-bearing receivables are initially recognized at fair value and subsequently at amortized cost during the contract period. The carrying amount of the trade and other receivables approximate their fair values due to their short-term nature.

Trade and other receivables


EUR million	31 Dec 2023	31 Dec 2022
Non-current
Prepaid expenses and accrued income	29.3	9.0
Finance lease receivables	—	0.2
Other	5.4	11.4
Total	34.7	20.6

Current
Trade receivables at amortized cost	476.8	408.9
Prepaid expenses and accrued income
Contract assets	58.4	52.0
Licence fees	32.9	30.6
Other prepaid expenses and accrued income	54.3	28.2
Finance lease receivables	2.2	2.4
Other interest-bearing receivables	14.4	13.6
Other	14.6	14.4
Total	653.6	550.2

Group trade receivables maturity and expected credit losses


31 Dec 2023	Not yet due	Overdue 1–7 days	Overdue 8–30 days	Overdue 31–60 days	Overdue 61–90 days	Overdue over 90 days	Grand Total
EUR million	Not yet due	Overdue 1–7 days	Overdue 8–30 days	Overdue 31–60 days	Overdue 61–90 days	Overdue over 90 days	Grand Total
Gross trade receivables subject to impairment	368.2	82.3	4.8	4.1	2.9	17.4	479.6
Average expected credit loss rate applied1)	-0.01 %	-0.01 %	-3.25 %	-3.64 %	-2.62 %	-7.85 %	-0.37 %
Collective loss allowance	-0.0	-0.0	-0.2	-0.1	-0.1	-1.4	-1.8
Individual loss allowance	-0.0	-0.1	-0.0	-0.3	-0.0	-0.5	-1.0
Total loss allowance	-0.1	-0.1	-0.2	-0.5	-0.1	-1.8	-2.8
Trade receivables net of ECL	368.1	82.2	4.7	3.6	2.8	15.5	476.8
Trade receivables covered by credit insurance2)	—	—	—	—	—	—	—
Total trade receivables at amortized cost	368.1	82.2	4.7	3.6	2.8	15.5	476.8

1) The majority of trade receivables overdue over 90 days are subject to ongoing negotiations with a customer, with a corresponding entry in contract liabilities and therefore excluded from the ECL calculation which lowers the resulting ECL rate for that ageing category.

2) The credit insurance ended in 2023 and was not renewed.

There are no major concentrations of credit risk in the Group, see note 18. Impairment losses recognized on trade receivables and contract assets are included in other operating expenses in the income statement.


31 Dec 2022	Not yet due	Overdue 1–7 days	Overdue 8–30 days	Overdue 31–60 days	Overdue 61–90 days	Overdue over 90 days	Grand Total
EUR million	Not yet due	Overdue 1–7 days	Overdue 8–30 days	Overdue 31–60 days	Overdue 61–90 days	Overdue over 90 days	Grand Total
Gross trade receivables subject to impairment	227.9	16.4	1.4	3.2	0.5	2.3	251.7
Average expected credit loss rate applied	-0.12%	-0.62%	-1.49%	-1.82%	-3.71%	-51.61%	-0.66%
Collective loss allowance	-0.3	-0.1	-0.0	-0.1	-0.0	-1.2	-1.7
Individual loss allowance	-0.4	-0.0	—	-0.4	-0.1	-0.2	-1.1
Total loss allowance	-0.6	-0.1	-0.0	-0.4	-0.1	-1.4	-2.7
Trade receivables net of ECL	227.3	16.2	1.4	2.7	0.4	1.0	248.9
Trade receivables covered by credit insurance	142.2	15.0	0.6	1.3	0.5	0.4	160.0
Total trade receivables at amortized cost	369.5	31.2	2.0	4.0	0.9	1.4	408.9

Net contract assets


	Not yet due	Not yet due
EUR million	2023	2022
Contract assets	58.4	52.1
Average ECL applied	-0.06%	-0.25%
Collective loss allowance	0.0	-0.1
Net contract assets	58.4	52.0

Movements in loss allowances


	Trade receivables
EUR million	2023	2022
1 Jan	2.7	2.9
Translation differences	-0.1	-0.1
Impairment losses recognized	1.8	3.7
Amounts written off this year as uncollectible	-0.6	—
Impairment losses reversed	-1.1	-3.7
Disposed companies	—	-0.1
31 Dec	2.8	2.7

15. Defined benefit plans

Group companies in different countries have a number of different post-employment benefit plans in

accordance with local requirements and practices. The majority of the plans are classified as defined

contribution plans. Post-employment benefit plans other than defined contribution plans are classified as

defined benefit plans.


ACCOUNTING POLICIES
The fixed contributions to defined contribution plans are recognized as employee benefit expenses in the period to which they relate. The Group has no further legal or constructive payment obligations once the contributions have been paid.
Defined benefit plans typically define an amount of post-employment benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. Defined benefit plans are funded with payments to insurance companies.
For defined benefit plans, the net liability recognized in the statement of financial position equals the present value of the defined benefit obligation at the closing date less the fair value of the plan assets. The present value of the defined benefit obligation is determined separately for each plan by independent actuaries using the projected unit credit method. The actuarial calculations include several financial and demographic assumptions and any change in these will impact the carrying amount and future expense of the defined benefit obligation.
Current service costs, past service costs and gains or losses on settlements are recognized in employee benefit expenses. Net interest expense or income is recognized in financial items under interest expense or interest income. All remeasurements of the defined benefit liability or asset arising from experience adjustments and changes in actuarial assumptions are recognized directly in other comprehensive income.

The Group manages defined benefit plans through insurance companies. The employer has guaranteed to

the members of the plans a certain level of benefit after their retirement, which depends on the length of

service and salary base. The salary base is an average of last years’ salaries indexed with common salary

index. After retirement, the benefit payable is indexed yearly.

In Finland, the Group’s risk covers approximately 170 non-active employees. When the pensioner who has

a vested pension retires, the final amount of the pension is revised in the Finnish pension plan and as a

result, the employer may incur additional costs. In addition, in the Finnish pension plan, the index increases

that are borne by the employer during the period between the grant date of the vested pension and the

beginning of the pension are charged only in the year when the pension is granted. In some insurance

contracts, under certain conditions, the insured person has the right to retire earlier than at the normal

retirement age. These additional expenses are charged at the beginning of the retirement. In 2022, the

majority of the defined benefit plans were converted to defined contribution plans resulting in costs of EUR

2.1 million and a settlement gain of EUR 7.5 million as well as a reduction of defined benefit obligations of

EUR 8.4 million.

In Sweden, the Group’s risk is only on active employees and the plan covers 60 employees. As the Group

does not have actuarial or investment risk for those plan members whose employment has ceased, the

plan members are removed from the pension plan and a settlement is recognized annually. In 2023, a

settlement loss of EUR 0.1 million was recognized in personnel expenses and the net defined benefit

liability increased by the corresponding amount.

In Norway, the collective defined benefit plan has been replaced with a defined contribution plan and an

unfunded compensation scheme for employees. The size of the compensation and the profile for its

accrual is based on parameters at the time of the change and are accounted for as a defined benefit plan in

the financial statements. The accrual formula and profile of the compensation scheme are used as the

basis to make provisions in the accounts so that the total compensation earned to date by employees at

any time is provided for as a liability in the consolidated statement of financial position. The plan covers

748 employees and pensioners. In addition, there are various other closed and unfunded pension plans in

Norway covering 289 employees and pensioners.

Defined benefit cost recognized in income statement and in other comprehensive income


EUR million	2023	2022
Service cost
Current service cost	2.1	2.7
Settlement gains / losses	0.1	-6.9
Conversion costs	—	2.1
Net interest	-0.3	-0.2
Total	1.9	-2.3

Amounts recognized in other comprehensive income
Remeasurement
Gains (-)/losses (+) from change in demographic assumptions	0.0	0.0
Gains (-)/losses (+) from change in financial assumptions	-1.0	-4.5
Gains (-)/losses (+) from experience adjustments	-0.2	-0.5
Gains (-)/losses (+) on plan assets	0.5	3.0
Total	-0.6	-2.0

Amounts recognized in the statement of financial position


	Present value of defined benefit obligaton1)		Fair value of plan assets2)		Net liability
EUR million	2023	2022	2023	2022	2023	2022
1 Jan	32.9	74.2	-5.2	-36.4	27.8	38.0
Current service cost	2.1	2.7	—	—	2.1	2.7
Interest expense/income	0.5	0.5	-0.2	-0.2	0.3	0.2
Employer contribution3)	—	—	-0.9	-1.1	-0.9	-1.1
Benefits paid3)	-1.7	-2.4	0.1	0.5	-1.6	-1.8
Curtailment and settlement	-0.1	-35.2	0.1	28.4	0.1	-6.9
Actuarial gains/losses	-1.2	-5.1	0.6	3.1	-0.6	-2.0
Businesses acquired/divested	—	0.2	—	-0.1	—	0.1
Exchange rate differences	-1.5	-1.9	0.0	0.6	-1.5	-1.4
31 Dec	30.9	33.0	-5.4	-5.2	25.5	27.8

1) Of which EUR 5.2 (6.1) million in Finland, EUR 0.8 (0.7) million in Sweden and EUR 24.8 (26.2) million in Norway.

2) Of which EUR 3.6 (3.9) million in Finland and EUR 1.9 (1.2) million in Sweden

3) Benefits are paid directly in Norway without holding plan assets. Accordingly, the comparative information has been updated on a net basis.


EUR million	2023	2022
Defined benefit obligations	26.5	28.4
Defined benefit plan assets	-1.0	-0.6
Net liability	25.5	27.8

Allocation of plan assets

In Sweden, the plan assets are comprised from equity and debt instruments EUR 1.2 (0.8) million and other

assets EUR 0.7 (0.5) million.

In Finland, the plan assets are accrued from the insurance premiums paid to the insurance company and

accumulated up to the reporting date. The assets are part of the insurance company's investment assets

and they are responsible for reporting the assets. A specification of the plan assets is not available.

Actuarial assumptions


%	2023	2022
Finland
Discount rate	3.7	3.1
Future salary increases	—	4.3
Future pension increases	2.6	2.8
Inflation rate	2.4	2.6

Sweden
Discount rate	3.9	3.7
Future salary increases	1.6	2.0
Future pension increases	1.6	2.0
Inflation rate	1.6	2.0

Norway
Discount rate	3.1	3.0
Future salary increases	3.5	3.5
Growth in the basic state pension (G)	3.3	3.3

Sensitivity analysis of actuarial assumptions

The following table shows how a change in one assumption, while holding all other assumptions constant,

would affect the defined benefit obligation.


	Change in assumption	Increase in assumption	Decrease in assumption
Impact on defined benefit obligation in Finland
Discount rate	0.5%	-6.7%	7.5%
Future pension increase	0.5%	7.0%	-6.4%
Life expectancy	+1 year	4.6%

Impact on defined benefit obligation in Sweden
Discount rate	0.5%	-7.7%	8.6%
Future salary increase	0.5%	9.4%	-8.6%
Future pension increase	0.5%	6.3%	-6.0%
Life expectancy	+1 year	2.9%

Impact on defined benefit obligation in Norway
Discount rate	0.5%	-1.1%	1.2%
Future salary increase	0.5%	0.2%	-0.1%
Future pension increase	0.5%	0.9%	—%
Life expectancy	+1 year	1.0%

Maturity profile of the defined benefit obligation

The weighted average duration of the defined benefit obligation is 15 years in Finland, 17 years in Sweden

and 15 years in Norway. The following table shows the maturity profile of the future benefit payments

which are the basis for the calculated undiscounted defined benefit obligation.


EUR million	2023
Maturity under 1 year	2.0
Maturity 1–5 years	8.0
Maturity 5–10 years	10.7
Maturity 10–30 years	24.6
Maturity over 30 years	2.2
Total future benefit payments	47.7

Expected contributions in 2024

Expected contributions to post-employment benefit plans for the year ending 31 December 2024 are EUR

0.9 million.

Multi-employer plans

The ITP pension plans operated by Alecta and Collectum in Sweden are multi-employer defined benefit

pension plans which pool the assets contributed by various entities that are not under common control

and the assets provide benefits to employees of more than one entity. It has not been possible to get

sufficient information for the calculation of obligations and assets by employer from Alecta and Collectum

and, therefore, these plans have been accounted for as defined contribution plans in the consolidated

financial statements. In Tietoevry, 4 289 employees are included in these pension plans. The yearly

contributions to the plans are around EUR 21 million.

3 325 employees in the Group’s Norwegian companies are members of an early retirement scheme (AFP),

which is a multi-company defined benefit plan, and is financed by premium payments determined as a

percentage of salary. There is no reliable measurement and allocation of liabilities and assets between the

companies that participate in the scheme. The scheme is, therefore, treated for accounting purposes as a

defined contribution plan and the premiums paid are recognized as costs through profit or loss. The

premium rate for 2023 was 2.6% (2.6) corresponding to EUR 3.8 (4.8) million. The scheme is underfunded

and it is assumed that premiums will increase over time in order to ensure sufficient buffer capital to cope

with increased payments.

16. Provisions

Provisions at Tietoevry Group comprise mainly restructuring and other employee related provisions, and

contract-related provisions.


ACCOUNTING POLICIES
A provision is a liability of uncertain timing or amount which is recognized when the entity has a present legal or constructive obligation as a result of a past event and it is more likely than not that an outflow of economic benefits will be required to settle the obligation and the amount of the obligation can be measured reliably. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation and are split between amounts expected to be settled within 12 months at the end of the reporting period and amounts expected to be settled later (non-current).
Provisions for restructuring
A restructuring provision is only recognized when a formal plan has been approved and the implementation of it has either commenced or the plan has been announced.
Provisions for warranties
The Group's warranties provide assurance that the delivery will function as expected and in accordance with contract specifications. Provisions related to these assurance-type warranties are recognized during the project and used during the warranty period.
Other provisions
Other provisions include provisions for loss making contracts which are recognized for any unavoidable net loss arising from the contract as well as employee related provisions other than restructuring.


ACCOUNTING ESTIMATES AND JUDGEMENTS
Provisions require management to assess the best estimate of the future costs needed to settle the present obligation at the reporting date. The actual costs may differ from the estimated costs.


EUR million	Provisions for restructuring	Provision for warranties	Other provisions	Total
1 Jan 2023	13.9	1.7	6.2	21.7
Translation differences	-0.2	0.0	-0.1	-0.3
Increases in provisions	24.2	0.7	6.2	31.1
Use of provisions	-25.4	-0.7	-6.7	-32.7
Reversals and changes in estimates	-0.5	-0.5	-1.5	-2.6
31 Dec 2023	12.0	1.2	4.0	17.2

of which
Non-current	0.5	0.1	1.9	2.5
Current	11.5	1.0	2.2	14.6
Total	12.0	1.2	4.0	17.2

In 2023, restructuring measures were taken mainly in Tietoevry Tech Services, Tietoevry Banking, and

Tietoevry Create.


EUR million	Provisions for restructuring	Provision for warranties	Other provisions	Total
1 Jan 2022	11.3	1.6	9.5	22.4
Translation differences	-0.7	-0.0	-0.3	-1.0
Increases in provisions	33.4	1.3	2.9	37.6
Use of provisions	-21.7	-0.3	-4.5	-26.4
Reversals and changes in estimates	-8.5	-0.9	-1.4	-10.8
31 Dec 2022	13.9	1.7	6.2	21.7

of which
Non-current	0.6	0.1	1.9	2.6
Current	13.3	1.6	4.3	19.1
Total	13.9	1.7	6.2	21.7

In 2022, restructuring measures were taken in Tietoevry Tech Services and Tietoevry Banking.

17. Trade and other payables

Trade and other payables represent unpaid, non-interest bearing liabilities at the end of the reporting

period. Contract liabilities represent where a customer has paid consideration or payment is due, but

Tietoevry has not yet transferred goods or services to the customer.


ACCOUNTING POLICIES
Trade and other payables are presented as current liabilities if settlement is due within 12 months from the end of the reporting period. They are recognized at their fair value and subsequently measured at amortized cost using the effective interest method.
The carrying amount of the trade and other payables approximate their fair values due to their short- term nature.


EUR million	31 Dec 2023	31 Dec 2022
Non-current
Contract liabilities	6.8	16.9
Accruals	4.1	4.2
Total	10.8	21.0

Current
Trade payables	206.9	233.9
Contract liabilities	77.3	67.2
Accrued liabilities
Employee-related accruals	197.7	193.2
Interest	28.8	4.3
Other accrued expenses	42.2	32.7
Value added tax liabilities	52.5	54.5
Payroll tax liabilities	30.7	30.9
Total	636.0	616.7

FINANCIAL RISK MANAGEMENT AND CAPITAL STRUCTURE

This section includes notes related to Tietoevry's financial risk and capital structure management. The

financial risks are monitored and managed via Tietoevry's Group Treasury.

18. Management of financial risks and capital structure

The Group's activities expose it to a variety of financial risks: market risk (including currency risk, interest

rate risk and commodity risk), credit risk and liquidity risk. The operative management of the treasury

activities of Tietoevry is centralized in Group Treasury. The Group Treasury is responsible for managing the

Group’s financial risk position and maintaining adequate liquidity. The Treasury Policy, which has been

approved by the Board of Directors, defines the principles for measuring and managing liquidity risk,

interest rate risk, foreign exchange risks and counter-party risk of the Group. The Treasury Policy also

defines the division of responsibilities with regard to financial risk management. The Group reviews and

monitors financial risks on a regular basis.

Market risk

Currency risk management

Transaction risk

Currency risk means the risk that the result or economic situation of the Group changes due to changes in

exchange rates. Foreign trade, Group internal transactions and liquidity management in non-euro

countries generate transaction exposure in the Group. The objective of the Group's currency risk policy is

to secure the profitability of operative business by managing recognized exposures while maintaining

sufficient flexibility to adjust to changing currency markets. The underlying exposure includes financial

items denominated in the non-functional currencies of operating companies, such as internal funding,

foreign currency bank account balances, and estimated cash flows such as firm commitments and future

trade transactions.

Swedish krona, Norwegian krone, Czech koruna, Indian rupee, Polish zloty and US dollar are the main

currencies with this exposure. During 2023, currency forward contracts were used to mitigate the risks.

Gains and losses from foreign exchange contracts are recognized in the consolidated income statement.

Group companies must hedge their identified currency risks with the Group Treasury unless there are legal

restrictions preventing this. The benchmark for the Group’s currency position is a situation where all the

identified currency risks are eliminated. A deviation from this benchmark is defined as an open position.

The following deviations can be made based on the total size of the Group’s gross currency position

(identified currency risks, excluding the hedging transactions):

• +/- 15 %: Group Treasury

• +/- 25 %: Treasury Committee

• Greater deviation: Board of Directors

The overall operational hedging ratio at the end of December 2023 was 99% (98%).

Identified currency transaction risk exposure and sensitivity analysis


EUR million	Loans and Cash	Estimated cash flows	Leases	Total foreign exchange exposure	External foreign exchange hedges	Transaction exposure sensitivity1)	Foreign exchange hedge sensitivity1)	Net effect gain/(loss)
SEK
31 Dec 2023	-130.6	23.1	—	-107.5	107.7	13.1	-10.8	2.3
31 Dec 2022	-96.2	24.0	—	-72.2	72.7	9.6	-7.3	2.3

NOK
31 Dec 2023	-42.3	12.7	—	-29.6	29.3	4.2	-2.9	1.3
31 Dec 2022	-25.5	16.8	—	-8.7	5.0	2.6	-0.5	2.1

PLN
31 Dec 2023	0.7	-9.6	1.2	-7.7	8.5	-0.2	-0.8	-1.0
31 Dec 2022	-1.1	-23.6	1.4	-23.3	23.5	—	-2.4	-2.4

CZK
31 Dec 2023	-9.6	-44.3	9.6	-44.3	53.4	—	-5.3	-5.3
31 Dec 2022	-1.6	-52.6	2.6	-51.6	54.2	-0.1	-5.4	-5.5

INR
31 Dec 2023	—	-22.5	—	-22.5	23.0	—	-2.3	-2.3
31 Dec 2022	—	-34.9	—	-34.9	34.7	—	-3.5	-3.5

USD
31 Dec 2023	2.2	—	-0.1	2.1	-2.3	-0.2	0.2	—
31 Dec 2022	-1.1	2.8	—	1.7	-3.0	0.1	0.3	0.4

Other
31 Dec 2023	-2.2	—	2.0	-0.2	—	—	—	—
31 Dec 2022	-1.1	—	—	-1.1	—	0.1	—	0.1

1) The maximum pre-tax effect (EUR million) of 10% negative change in exchange rates on the Group's foreign exchange position over the

following year.

Translation risk

According to the Treasury Policy, hedging translation exposure is subject to the Board of Directors'

decision. Exposure includes the acquisition price, share capital and restricted and non-restricted reserves

of subsidiaries in non-euro countries, as well as the result of the period. NOK 16 145 and SEK 7 353 million

exposure forms the majority of the translation risk. The translation position was unhedged at the end of

2023. See also note 24.

Interest rate risk management

The most significant part of the Group's interest rate risk arises from its borrowings and financial

investments. The objective of interest rate risk management is to minimize the effect of interest rate

fluctuations on Tietoevry’s annual results and economic positions. Group Treasury is responsible for the

monitoring and operative management of the Group’s interest rate position. The interest rate position

includes loans, financial investments and interest rate derivative contracts. According to the Treasury

Policy, 24 months is defined as a benchmark for the Group's interest rate position, in terms of weighted

average time to re-pricing. At the end of 2023, the ratio was at 17 months (19 months in 2022).


31 Dec 2023 EUR million	Amount	Average rate, %	Rate sensitivity1)
Capital markets2)	-465.3	2.2	-0.7
Money markets	216.2	0.7	0.2
Other loans	-483.1	4.8	-4.3
Other receivables	28.9	3.9	—
Leasing	-209.5	6.0	-2.1


31 Dec 2022 EUR million	Amount	Average rate, %	Rate sensitivity1)
Capital markets2)	-398.4	1.8	—
Money markets	244.6	0.4	0.1
Other loans	-348.0	2.9	-3.2
Other receivables	28.0	3.1	—
Leasing	-207.4	6.0	2.1

1) The maximum pre-tax effect (EUR million) of 1% rise in interest rates on the Group's net interest expenses over the following year.

2) The duration of underlying instruments was 1.1 years (2.2 in 2022).

Commodity risk management

The majority of electricity procurement has been centralized to selected supplier and under the selected

model, the Group does not enter into any new electricity derivative agreements in its own name.

Credit risk management

Credit risk is managed on Group level. Credit risk derives from financial investments, derivative contracts

and customer-related risks, such as accounts receivable. Group Treasury maintains a list of approved

counterparts for commercial paper investments and other financial transactions. Core banks of the Group

should have a minimum long-term rating of Baa3 or BBB-.

Customer-related credit risks are assessed based on payment history and financial strength in accordance

with the Credit Policy. The Credit Policy defines the limits for the acceptable level of customer credit risk in

terms of invoicing schedules and payment terms. The maximum exposure to customer related credit risk at

the reporting date is the carrying value of trade receivables. There are no major concentrations of credit

risk in the Group, whether through exposure to individual customers, specific industry sectors and/or

regions.

Liquidity risk management and funding

Liquidity risk management and funding principles are defined in the Treasury Policy. One of the key tasks of

Group Treasury is to secure adequate funding for the Group. The Group has a committed EUR 250 million

revolving credit facility, which matures in 2027 with 2 optional extension years. The Group has also

overdraft facilities and an uncommitted EUR 250 million commercial paper programme available to

maintain flexibility in funding. In addition, the Group has two facilities for the sale of receivables, EUR 50

million and SEK 550 million.

Debt structure


31 Dec 2023		Amount drawn	Amount available	Maturity structure
EUR million		Amount drawn	Amount available	2024	2025	2026	2027	2028	2029–
Loans	Bonds	400.0	—	100.0	300.0	—	—	—	—
	Commercial paper programme	67.0	—	67.0	—	—	—	—	—
	Revolving credit facility	—	250.0	—	—	—	—	—	—
	Liabilities towards joint ventures	3.0	—	3.0	—	—	—	—	—
	European Investment Bank	52.3	—	13.1	13.1	13.1	13.1	—	—
	OP Corporate Bank	174.0	—	—	—	—	—	174.0	—
	Syndicated term loan	208.3	—	208.3	—	—	—	—	—
	Other loans	49.4	—	21.0	17.0	10.1	1.2	—	—
		954.1	250.0	412.5	330.1	23.2	14.3	174.0	—

	Interest payments	—	—	27.3	16.9	9.7	8.7	8.8	—

Trade payables	Outflow	206.9	—	206.9	—	—	—	—	—

Other liabilities	Lease liabilities1)	248.2	—	59.5	46.0	33.3	25.8	23.7	59.8

Total		1 409.1	250.0	706.1	393.0	66.2	48.8	206.5	59.8

1) Lease liabilities are presented based on the contractual undiscounted lease payments.


31 Dec 2022		Amount drawn	Amount available	Maturity structure
EUR million		Amount drawn	Amount available	2023	2024	2025	2026	2027	2028–
Loans	Bond	400.0	—	—	100.0	300.0	—	—	—
	Commercial paper programme	—	—	—	—	—	—	—	—
	Revolving credit facility	—	250.0	—	—	—	—	—	—
	Liabilities towards joint ventures	3.5	—	3.5	—	—	—	—	—
	European Investment Bank	65.4	—	13.1	13.1	13.1	13.1	13.1	—
	Syndicated term loan	254.2	—	80.0	174.2	—	—	—	—
	Other loans	28.7	—	14.1	8.6	4.7	1.2	0.1	—
		751.8	250.0	110.7	295.9	317.7	14.2	13.2	—

	Interest payments	—	—	17.1	13.2	7.5	1.0	0.5	—

Trade payables	Outflow	233.9	—	233.9	—	—	—	—	—

Other liabilities	Lease liabilities	241.2	—	61.8	47.1	32.7	23.7	19.1	56.8

Total		1 226.9	250.0	423.4	356.2	357.9	38.9	32.8	56.8

Capital management

The objective is to keep the capital structure on a level securing adequate financial flexibility for the

operations. The capital structure of the Group is being continuously monitored through Net debt/EBITDA

ratio. The ratio is calculated by dividing interest-bearing net debt with the last 12 months' EBITDA of the

Group. Net debt/EBITDA ratio is a covenant used in certain funding arrangements. Tietoevry Group is

within limits for this covenant as at the reporting date and comparative period.


	31 Dec 2023	31 Dec 2022
Net debt	911.8	679.1
12 months EBITDA	412.8	449.0
Net debt/EBITDA	2.2	1.5

19. Interest-bearing loans and borrowings

The Group's interest-bearing liabilities consist of bonds, other loans, lease liabilities and cash pool

liabilities towards joint ventures.


ACCOUNTING POLICIES
Interest-bearing loans and borrowings are initially recognized at fair value, net of transaction costs which are recognized in the income statement as interest expenses over the loan term. Debt is classified as short term if it is payable within 12 months, otherwise it is classified as non-current.


EUR million	31 Dec 2023	31 Dec 2022
Non-current
Bonds	298.8	398.4
Other loans	240.8	241.0
Lease liabilities	161.4	155.9
Total	701.0	795.3

Current
Bonds	100.4	0.0
Other loans	308.5	107.1
Cash pool liabilities towards joint ventures	3.0	3.5
Lease liabilities	50.3	54.1
Total	462.2	164.7
Total Interest bearing loans and borrowings	1 163.2	960.1

More information on debt structure and carrying interest rates is disclosed in note 18.

Change in liabilities arising from financing activities


			Non-cash changes
EUR million	31 Dec 2022	Cash flows	Foreign exchange gains and losses	Reclassification	Acquisitions and disposals	New lease contracts	De-recognized contracts	Other	31 Dec 2023
Non-current interest-bearing loans	639.4	114.5	—	-229.5	—	14.9	—	0.3	539.5
Current interest-bearing loans	110.6	63.9	—	229.5	—	7.0	—	0.9	411.9
Lease liabilities	210.0	-58.1	-5.7	—	2.2	79.5	-17.3	1.0	211.7
Total	960.1	120.2	-5.7	—	2.2	101.4	-17.3	2.2	1 163.2


			Non-cash changes
EUR million	31 Dec 2021	Cash flows	Foreign exchange gains and losses	Reclassification	Acquisitions and disposals	New lease contracts	De-recognized contracts	Other	31 Dec 2022
Non-current interest-bearing loans	731.6	-13.1	—	-80.0	—	-0.3	—	1.2	639.4
Current interest-bearing loans	31.5	-1.5	—	80.0	—	0.7	—	—	110.6
Lease liabilities	206.5	-66.3	-7.9	—	-0.1	104.7	-27.0	0.2	210.0
Total	969.6	-81.0	-7.9	—	-0.1	105.0	-27.0	1.4	960.1

20. Financial income and expenses

Finance income and expenses comprise interest, foreign exchange gains and losses and other financial income and expenses, such as fees to banks.


2023	Interest income	Interest expenses	Foreign exchange gains and losses	Other financial income	Other financial expenses	Total
EUR million	Interest income	Interest expenses	Foreign exchange gains and losses	Other financial income	Other financial expenses	Total
Financial assets at fair value through profit or loss	—	—	4.2	—	—	4.2
Financial assets at amortized cost	23.5	-21.0	-1.0	0.3	—	1.7
Financial liabilities measured at amortized cost	—	-36.3	—	—	-4.1	-40.4
Net defined benefit obligation	—	-0.3	—	—	—	-0.3
Total	23.5	-57.6	3.1	0.3	-4.1	-34.9


2022	Interest income	Interest expenses	Foreign exchange gains and losses	Other financial income	Other financial expenses	Total
EUR million	Interest income	Interest expenses	Foreign exchange gains and losses	Other financial income	Other financial expenses	Total
Financial assets at fair value through profit or loss	—	—	-7.8	—	—	-7.8
Financial assets at amortized cost	3.6	—	6.4	0.3	—	10.3
Financial liabilities measured at amortized cost	—	-22.6	—	—	-3.4	-25.9
Net defined benefit obligation	—	-0.2	—	—	—	-0.2
Total	3.6	-22.8	-1.4	0.3	-3.4	-23.7

In addition, foreign exchange gains and losses included in the operating profit were EUR 0.5 (9.9) million in 2023.

21. Financial assets and liabilities

Financial assets and liabilities of the Group consist of trade receivables, cash and cash equivalents, lease

receivables and payables, trade payables, derivatives (see note 22), bonds and other interest-bearing

liabilities (see note 19).


ACCOUNTING POLICIES
All financial assets and liabilities are initially recognized at fair value, and subsequently classified either as financial assets at amortized cost or financial assets through profit or loss.
Financial assets at amortized cost
Financial assets are accounted at amortized cost only when the asset is held within a business model with the objective to collect contractual cash flows, which are solely payments of principal and interest.
This category of financial assets includes trade and other receivables, cash and cash equivalents, lease receivables and other interest-bearing receivables.
Financial assets in this category are carried at amortized cost in accordance with the effective interest method with interest income recognized in profit or loss under financial items, see note 20.
Financial liabilities at amortized cost
Financial liabilities in this category are initially recognized at fair value, net of transaction costs directly associated with the borrowing. For interest-bearing liabilities, after initial recognition, liabilities are measured using the effective interest rate method, taking into account any issue costs and any discount or premium on settlement. The related interest expenses are recognized in profit or loss in financial items, see note 20.
Financial assets and liabilities at fair value through profit or loss
Financial assets and liabilities in this category are recognized on the statement of financial position at their fair value with gains or losses resulting from changes in the fair value, being recognized in the income statement.
This category consists mainly of derivatives. Gains or losses from the revaluation of derivative contracts that relate to financial items (loans, cash, leases) are presented as financing costs, see note 20, whereas gains or losses from derivatives, mainly currency forward contracts that relate to operating activities, are included in operating profit.
Fair value measurement is also applicable to trade receivables sold under non-recourse agreements (for the sale of receivables), which have not yet been de-recognized from the statement of financial position at the reporting date.


Other investments include unlisted shares, where the cost is considered to be a reasonable approximation of their fair value.
Determination of fair values
The classification of financial assets and liabilities measured at fair value in the statement of financial position is based on three hierarchy levels: • Level 1: quoted prices in active markets for given or identical assets or liabilities that the entity can access at the measurement date; • Level 2: inputs that are observable for the asset or liability, either directly or indirectly; • Level 3: unobservable inputs for the asset or liability.
The carrying amount of all financial assets and liabilities, carried at amortized cost is considered to provide a reasonable approximation of their fair value, due to the short maturity and liquid nature of these items, except for bonds which are traded on an active market.
The fair values of derivatives are determined based on prevailing marked quotes at the reporting date. The fair values of foreign exchange derivatives are calculated according to foreign exchange and interest rates on the closing date.

Financial assets


EUR million	Note	31 Dec 2023	31 Dec 2022	Fair value hierarchy
Financial assets at fair value through profit or loss
Non-current
Other financial assets at fair value through profit or loss		0.6	0.6	Level 3
Current
Trade receivables at fair value through profit or loss		11.6	20.2	Level 2
Current derivative receivables	22	5.8	3.4	Level 2
Financial assets at amortized cost
Non-current
Other loan receivables, interest- bearing		15.1	15.0	Level 2
Lease receivables	13	—	0.2	Level 2
Current
Other loan receivables, interest- bearing	14	14.4	13.6	Level 2
Lease receivables	13	2.2	2.4	Level 2
Trade receivables	14	476.8	408.9	Level 2
Accrued interest income	14	15.5	0.0	Level 2
Cash and cash equivalents	23	219.6	249.7	Level 2
Total		761.7	714.1

Financial liabilities


EUR million	Note	31 Dec 2023	31 Dec 2022	Fair value hierarchy
Financial liabilities at fair value through profit or loss
Current derivative liabilities	22	4.9	2.0	Level 2
Financial liabilities measured at amortized cost
Non-current
Lease liability	19, 13	161.4	155.9	Level 2
Bonds1)	19	298.8	398.4	Level 1
Other loans	19	240.8	241.0	Level 2
Current
Trade payables	17	206.9	233.9	Level 2
Accrued interest	17	28.8	4.3	Level 2
Lease liability	19, 13	50.3	54.1	Level 2
Bonds1)	19	100.4	—	Level 1
Loans	19	311.6	110.6	Level 2
Total		1 403.7	1 200.3

1) Fixed rate bond where carrying amount of EUR 399.1 million has not been adjusted to match the fair value of EUR 389.5 million. Fair value of

the bond has been calculated based on the prevailing market rate at the end of the reporting period.

There has been no movement between the fair value hierarchy levels during 2023.

22. Derivatives

Tietoevry Treasury uses currency forward and interest rate swap contracts to manage identified currency

and interest rate risks. More information on financial risk management is in note 18 and on the accounting

policies applied in note 21. Derivatives are used for economic purposes only.

Nominal amounts of derivatives

Includes the gross amount of all nominal values for contracts that have not yet been settled or closed. The

amount of nominal value outstanding is not necessarily a measure or indication of market risk, as the

exposure of certain contracts may be offset by other contracts.


EUR million	31 Dec 2023	31 Dec 2022
Foreign exchange forward contracts	523.9	406.5
Interest rate swaps	280.0	40.0

Fair values of derivatives


EUR million	31 Dec 2023	31 Dec 2022
Gross positive fair values, foreign exchange forward contracts	5.8	3.4
Gross negative fair values, foreign exchange forward contracts	-4.9	-2.0
Gross positive fair values, interest rate swaps	15.5	2.9
Gross negative fair values, interest rate swaps	-20.0	-2.9
The net fair values at the reporting date	-3.6	1.4

The fair values of foreign exchange derivatives are calculated according to foreign exchange and interest

rates on the closing date. All outstanding currency derivative contracts will expire within 12 months after

the reporting date.

The fair values of interest rate swaps are based on values of corresponding agreements confirmed by the

bank.

Offsetting financial assets and liabilities

Agreements with derivatives' counterparties are based on ISDA Master Agreements or on agreements with

similar content with regards to offsetting financial assets and liabilities.

Based on the terms of these agreements, offsetting is possible only under certain circumstances, such as,

default of either of the parties or other force majeure events. If any of those occur, then the net position

owing/receivable to a single counterparty will be taken as owing.


	Gross amounts of recognized financial instruments in the statement of financial position1)	Related amounts not set off in the statement of financial position
31 Dec 2023		Financial Instruments	Cash collateral received	Net amount
EUR million		Financial Instruments	Cash collateral received	Net amount
Derivative financial assets
Foreign exchange forward contracts	5.8	-3.1	—	2.7
Interest rate swaps	15.5	-15.5	—	—
Derivative financial liabilities
Foreign exchange forward contracts	-4.9	3.1	—	-1.8
Interest rate swaps	-20.0	15.5	—	-4.6

1) No amounts have been set off in the statement of financial position


	Gross amounts of recognized financial instruments in the statement of financial position1)	Related amounts not set off in the statement of financial position
31 Dec 2022		Financial Instruments	Cash collateral received	Net amount
EUR million		Financial Instruments	Cash collateral received	Net amount
Derivative financial assets
Foreign exchange forward contracts	3.4	-1.6	—	1.7
Interest rate swaps	2.9	-2.9	—	—
Derivative financial liabilities
Foreign exchange forward contracts	-2.0	1.6	—	-0.4
Interest rate swaps	-2.9	2.9	—	—

1) No amounts have been set off in the statement of financial position

23. Cash and cash equivalents

Cash and cash equivalents comprise cash balances and cash deposits with banks and other liquid

investments that are readily convertible to a known amount of cash within three months and which are

subject to an insignificant risk of changes in value. Bank overdrafts are included in current liabilities in the

statement of financial position. Cash and cash equivalents are carried at nominal value, which corresponds

to their fair value.


EUR million	31 Dec 2023	31 Dec 2022
Cash in hand and at bank	195.7	233.4
Short-term deposits	24.0	16.3
Total	219.6	249.7

Cash and cash equivalents include restricted cash of EUR 28.5 (14.0) million, including EUR 18.2 (14.0)

million held within bank accounts in Ukraine, as well as EUR 10.3 million restricted for 3 working days in

connection with the sale of a data centre and office building in Norway at year-end.

24. Share capital and reserves

Tietoevry has one class of shares, and each share has one vote at the Annual General Meeting and equal

rights to dividend and other distribution of assets. The company’s Articles of Association includes a voting

constraint at the Annual General Meeting that no-one is entitled to vote on more than one-fifth of the votes

represented at the Annual General Meeting.

Tietoevry’s shares have no nominal value and their book value counter value is one euro. All issued shares

have been fully paid.


ACCOUNTING POLICIES
Dividends proposed by the Board of Directors are not deducted from distributable equity until approved by the Annual General Meeting of Shareholders.
When the company's own shares are repurchased, the amount of the consideration paid, including directly attributable costs, is recognized as a deduction in equity.


EUR million	Number of shares	Share capital	Share issue premiums and other reserves	Invested unrestricted equity reserve	Total
1 Jan 2022	118 418 184	76.6	41.5	1 203.5	1 321.6
Purchase of own shares	-145 000	—	—	—	—
Shares delivered from the share-based incentive plans1)	140 119	—	—	—	—
Translation difference	—	—	-2.2	—	-2.2
31 Dec 2022	118 413 303	76.6	39.3	1 203.5	1 319.4
Purchase of own shares	-325 000	—	—	—	—
Shares delivered from the share-based incentive plans1)	302 789	—	—	—	—
Translation difference	—	—	0.1	—	0.1
31 Dec 2023	118 391 092	76.6	39.4	1 203.5	1 319.4

Own shares2)	34 679
Total number of shares on 31 Dec 2023²⁾	118 425 771

1) Shares granted from own shares without impact on share capital.

2) On 31 Dec 2022, the number of shares in the company's possession totalled 12 468 and the total number of shares was 118 425 771.

Share capital

The share subscription price received in connection with the share issues is entered in share capital to the

extent that it has not been recorded in the invested unrestricted equity reserve according to the share

issue decision.

Share issue premiums and other reserves

Share issue premiums and other reserves include share issue premium of the parent company and the

statutory reserve fund of Tietoevry Tech Services AB.

Invested unrestricted equity reserve

The invested unrestricted equity reserve includes the subscription price of shares to the extent that it has

not been recorded in share capital according to specific resolution.

Retained earnings

In addition to accumulated profits less dividends paid out, retained earnings include the following:

• Costs of share-based payments which are accounted for as equity-settled and recognized as an

employee benefit expense during the vesting period with a corresponding entry in equity. More

information is disclosed in note 8.

• Remeasurements of the defined benefit plans arising from experience adjustments and changes

in actuarial assumptions. More information is disclosed in note 15.

• Treasury shares. In 2023, Tietoevry repurchased 325 000 own shares which were further

delivered from the share-based incentive plans.

• Cumulative translation differences arising from the translation of foreign Group companies’

assets and liabilities into euro; and

• Other retained earnings and losses.

The cumulative translation differences were EUR -276.8 (-193.5) million. The translation differences in

Other comprehensive income were EUR -99.8 (-126.7) million.The majority of these arise on the NOK and

SEK foreign currency translation exposures. In 2023, NOK weakened by 6.9% against the Euro whereas

SEK strengthened by 0.2%, resulting in a negative net effect on the Other comprehensive income. In 2022,

both currencies weakened against the Euro, NOK by 5.3% and SEK by 8.5%, resulting in negative

translation differences in Other comprehensive income.

Distributable funds

On 31 Dec 2023, the distributable funds of the parent company totalled EUR 1 417.7 million of which

retained earnings were EUR 90.4 million and net profit for the financial year EUR 119.7 million. The Board of

Directors proposes to the Annual General Meeting in 2024 that a dividend of EUR 1.47 per share will be

paid for 2023 (dividend of EUR 1.45 per share paid for 2022).

OTHER INFORMATION

This section includes information about the Group structure, joint ventures, related parties and

commitments.

25. Acquisitions and divestments

On 21 July 2023, Tietoevry acquired 100% of the shares of MentoMate, a digital engineering company

headquartered in Minneapolis, USA. The MentorMate acquisition advances Tietoevry Create’s strategic

ambition to become a leading digital engineering player globally. The acquisition significantly strengthens

Tietoevry Create's North American customer base and digital engineering capabilities across design, data,

cloud and AI, with employees in the attractive talent markets of Bulgaria and Paraguay.

In 2023, Tietoevry sold its wood supply software business to Vela Software International Inc., which is

headquartered in Toronto Canada. Conditions to complete the divestment have been fulfilled and the

transaction is closed. Revenue of the divested business amounted to approximately EUR 3.0 million in 2022

and the number of employees was approximately 30 across Sweden, Finland and India. The wood supply

software business was part of Tietoevry Industry. The gain recognised on the disposal was EUR 0.9 million.

In 2022, Tietoevry sold its Russian operations through a local management buy-out. With this transaction,

Tietoevry ended all its local operations in Russia and transitioned all its responsibilities including

employees, customers, suppliers, legal and regulatory to the new owners. The loss recognized on the

disposal was EUR 9.1 million.


ACCOUNTING POLICIES
Business combinations are accounted for using the acquisition method. Subsidiaries are consolidated from the date on which control is achieved until the date on which control ceases by using the acquisition method. The consideration transferred for the acquisition is the fair values of the assets transferred and the liabilities assumed. Acquisition related costs are recognised as expenses for the period in which they are incurred.
Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the consideration transferred over the fair value of the identifiable net assets acquired is recognized as goodwill at the acquisition date. If the cost of the acquisition is less than the fair value of the net assets acquired in the case of a bargain purchase, the resulting gain is recognized in profit or loss.
When a disposed operation is part of a cash-generating unit (CGU) to which goodwill has been allocated, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the cash-generating unit retained.
Assets held for sale
Non-current assets are classified as held for sale if their carrying amounts are expected to be recovered principally through sale and the sale is highly probable. From the date of classification, the assets are measured at the lower of the carrying amount and the fair value less costs to sell, and the recognition of depreciation is discontinued.

Acquisition of MentorMate in 2023

Acquisition accounting for the acquired entity is presented as provisional as at the reporting date and can

be adjusted within 12 months after the date of acquisition to reflect new information obtained about facts

and circumstances that existed at the acquisition date. The following table summarizes the fair values of

the assets and the liabilities recognized at the acquisition date and the consideration paid.


EUR million
Intangible assets	22.5
Property, plant and equipment	0.9
Right-of-use assets	2.2
Other non-current receivables	0.2
Trade and other receivables	8.9
Cash and cash equivalents	6.3
Non-current lease liabilities	-1.7
Deferred tax liabilities	-5.6
Trade and other payables	-7.9
Current lease liabilities	-0.6
Total net assets acquired	25.3
Goodwill	137.4
Total	162.6

Consideration paid in cash	162.6
Cash and cash equivalent balances acquired	-6.3
Net cash flow on acquisition	156.3

The identified intangible assets relate to customer relationships and marketing. Fair values for the

intangible assets have been determined using appropriate valuation methods including the multi-period

excess earnings method for customer relationship related intangible assets and the relief from royalty

method for marketing related intangible assets. The amortization periods for these intangible assets are 6

years and 1.4 years, respectively. The goodwill is attributable to the expected synergies, the skilled

assembled workforce obtained through the acquisition and future customers. The goodwill will be

deductible for tax purposes.

The fair value of the receivables amounted to EUR 9.1 million on 21 July including trade receivables of EUR

7.9 million. The full contractual amounts have been, or are expected to be, collected. The Group measured

the lease liabilities assumed using the present value of the remaining lease payments at the acquisition

date. The right-of-use assets were measured at an amount equal to the lease liabilities.

Since the acquisition date, MentorMate has contributed EUR 29.4 million in revenue and EUR 2.9 million in

net profit to the Group's consolidated statement of comprehensive income. The Group revenues for the

year would have been approximately EUR 2 890 million and Group net profit would have been

approximately EUR 177 million, if MentorMate had been consolidated from 1 January 2023.

26. Subsidiaries

Subsidiary shares owned by the Parent company


Company name	Domicile	Parent company's holding %	31 Dec 2023 Book value in the Parent company EUR million
EVRY Card Issuing AS	Norway	100.0	77.4
EVRY Card Payments AS	Norway	100.0	0.7
EVRY Card Services AS	Norway	100.0	84.0
Fellesdata AS	Norway	100.0	—
Infopulse Brasil Servicos Technologicos Ltda.	Brazil	1.0	0.0
Tieto Austria GmbH	Austria	100.0	0.8
Tieto (Beijing) Technology Co., Ltd.	China	100.0	0.8
Tieto China Co., Ltd.	China	100.0	4.3
Tieto Germany GmbH	Germany	100.0	0.5
Tieto Global Oy	Finland	100.0	1.1
Tieto Great Britain Ltd.	Great Britain	100.0	0.5
Tieto Lietuva UAB	Lithuania	100.0	2.6
Tieto Netherlands Holding B.V.	Netherlands	100.0	24.5
Tieto Poland Sp. z o.o	Poland	100.0	3.3
Tieto Support Services Sp. z o.o.	Poland	100.0	0.4
Tietoevry 12 Oy (former TietoIlmarinen Oy)	Finland	100.0	0.2
Tietoevry AB	Sweden	100.0	667.6
TietoEVRY Accounting AS	Norway	100.0	16.7
Tietoevry Banking Finland Oy	Finland	100.0	1.3
Tietoevry Banking Latvia SIA	Latvia	100.0	12.3
Tietoevry Czechia s.r.o.	Czech Republic	100.0	0.5
Tietoevry Czechia Support Services s.r.o.	Czech Republic	100.0	—
Tietoevry Denmark A/S	Denmark	100.0	6.5
Tietoevry DK A/S	Denmark	100.0	1.6
Tietoevry Estonia AS	Estonia	100.0	0.2
Tietoevry Finland Oy	Finland	100.0	71.2
Tietoevry Finland Support Services Oy	Finland	100.0	1.2
Tietoevry Fintech Estonia OÜ	Estonia	100.0	0.1
Tietoevry Fintech Norway AS	Norway	100.0	516.1
Tietoevry Fintech Sweden AB	Sweden	100.0	52.2


Tietoevry Inc.	The United States	100.0	73.7
Tietoevry Latvia SIA	Latvia	100.0	2.1
Tietoevry Malaysia Sdn. Bhd.	Malaysia	100.0	0.1
Tietoevry Norway AS	Norway	100.0	314.9
Tietoevry Slovakia s.r.o.	Slovakia	100.0	0.0
Tietoevry Tech Services AB	Sweden	100.0	201.9
Tietoevry Tech Services Czechia s.r.o.	Czech Republic	100.0	7.5
Tietoevry Tech Services Finland Oy	Finland	100.0	64.7
Tietoevry Tech Services Latvia SIA	Latvia	100.0	0.8
Tietoevry Tech Services Norway AS	Norway	100.0	176.9
Tietoevry Tech Services Slovakia s.r.o.	Slovakia	15.0	0.0
Dormant subsidiaries (2 in total)			0.0
Total			2 391.2

Shares in Group companies owned by subsidiaries


Company name	Domicile	Group holding %	31 Dec 2023 Book value in the Parent company EUR million
Avega Catalyst AB	Sweden	100.0	0.4
Avega Clarity AB	Sweden	100.0	0.8
Avega Complius AB	Sweden	100.0	0.0
Avega Dinamiko AB	Sweden	100.0	0.1
Avega Effectus AB	Sweden	100.0	0.8
Avega Group AB	Sweden	100.0	42.4
Avega Kipeo AB	Sweden	100.0	1.5
Avega Kite AB	Sweden	100.0	0.0
Avega Mtoni AB	Sweden	100.0	0.1
Avega Nuvem AB	Sweden	100.0	0.0
Avega Qurio AB	Sweden	100.0	2.6
Avega Scire AB	Sweden	100.0	0.1
Avega Sempai AB	Sweden	100.0	0.5
Avega Senso AB	Sweden	100.0	0.0
Bekk Consulting AS	Norway	100.0	41.5
EVRY Card Services AB	Sweden	100.0	24.2
EVRY Card Services Oy	Finland	100.0	5.7


EVRY Financial Service UK Ltd.	Great Britain	100.0	0.1
EVRY India Pvt. Ltd.	India	100.0	13.5
EVRY USA Corporation	The United States	100.0	0.4
Eye-share AS	Norway	100.0	2.2
Eye-share Singapore Pte. Ltd.	Singapore	100.0	0.0
Gjeldsregisteret AS	Norway	100.0	0.0
Infopulse Brasil Servicos Technologicos Ltda.	Brazil	99.0	0.1
Infopulse Bulgaria Ltd.	Bulgaria	100.0	0.1
Infopulse Europe GmbH	Germany	100.0	0.0
Infopulse Poland Sp. z o.o.	Poland	100.0	—
Infopulse Ukraine LLC	Ukraine	100.0	0.0
MentorMate Bulgaria Ltd.	Bulgaria	100.0	4.6
MentorMate Paraguay S.R.L.	Paraguay	100.0	0.4
MentorMate, LLC	The United States	100.0	163.7
NUK Holding AB	Sweden	100.0	16.9
Tieto Ukraine Support Services LLC	Ukraine	100.0	0.8
Tieto U.S. Inc.	The United States	100.0	1.1
Tietoevry Banking Poland Sp. z o.o.	Poland	100.0	0.0
Tietoevry Financing AB	Sweden	100.0	0.0
Tietoevry Financing AS	Norway	100.0	1.8
Tietoevry FinTech DOO	Serbia	100.0	0.0
Tietoevry Fintech India Pvt. Ltd.	India	100.0	9.8
Tietoevry India Pvt. Ltd.	India	100.0	21.9
Tietoevry Pay Oy	Finland	100.0	0.1
Tietoevry Sweden AB	Sweden	100.0	154.5
Tietoevry Sweden Support Services AB	Sweden	100.0	0.0
Tietoevry Tech Services Estonia OÜ	Estonia	100.0	0.0
Tietoevry Tech Services India Pvt. Ltd.	India	100.0	13.7
Tietoevry Tech Services Lithuania UAB	Lithuania	100.0	0.0
Tietoevry Tech Services Slovakia s.r.o.	Slovakia	85.0	0.0
Tietoevry Tech Services Sweden AB	Sweden	100.0	6.4
Dormant subsidiaries (7 in total)			0.1
Total			533.0

All subsidiaries are included in the Group consolidation. In India, the official reporting period is 1 April –31

March according to the Indian legislation.

27. Interests in joint ventures

Tietoevry has two joint ventures, Tieto Esy Oy in Finland and BuyPass AS in Norway, for the purpose of

producing high quality IT services in line with customer requirements.


ACCOUNTING POLICIES
Companies, where Tietoevry has assumed management responsibility, has contractually based joint control with a third party and has rights to the net assets of the company based on the contractual arrangement are included in the consolidated financial statements as joint ventures. Joint ventures are accounted by using the equity method under which the investments in joint ventures are initially recognized at cost and adjusted thereafter to recognize the Group's share of the post-acquisition profits or losses and movements in other comprehensive income. When the Group's share of joint venture’s losses exceeds the carrying amount of the investment, the investment is recognized at zero value in the statement of financial position and the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the joint venture.
Sales to and purchases from joint ventures are made on normal market terms and conditions and at market prices. The Group’s share of the joint ventures’ result for the period is separately disclosed in the income statement.

Joint ventures


	Number of shares		Parent company's share %		Voting right %		Carrying value EUR million
31 Dec	2023	2022	2023	2022	2023	2022	2023	2022
Tieto Esy Oy	7 300	7 300	80.0	80.0	34.0	34.0	2.6	5.1
BuyPass AS	21 100	21 100	50.0	50.0	50.0	50.0	8.9	9.2
							11.6	14.2

Reconciliation of carrying valu e


EUR million	2023	2022
Carrying value, 1 Jan	14.2	16.7
Translation differences	-0.6	-0.7
Share of results	1.3	1.0
Dividends received	-1.3	-1.4
Impairments	-2.1	-1.4
Carrying value, 31 Dec	11.6	14.2

In 2023, as a result of annual impairment testing, Tietoevry Create recognized a goodwill impairment loss

of EUR 2.1 million for the carrying value of Tieto Esy Oy. The remaining carrying value of Group level

goodwill is EUR 0.3 (2.5) million, all of which relates to Tieto Esy Oy.

In 2022, as part of a new partnership agreement with Ilmarinen and a change in the service delivery model,

it was decided to ramp down TietoIlmarinen Oy. In connection with these changes, Tietoevry agreed to

acquire the remaining 30% share of the joint venture from Ilmarinen. Tietoevry Transform recognized an

impairment loss of EUR 1.4 million for the joint venture and bought the remaining 30% share of the

company. TietoIlmarinen has been consolidated as a 100% owned subsidiary since 31 December 2022.

The name of TietoIlmarinen Oy has been changed to Tietoevry 12 Oy.

There are no commitments or contingencies related to joint ventures.

Financial and personnel information of joint ventures

The financial information summarised below represents amounts in joint ventures' financial statements

prepared in accordance with IFRS Standards.


31 Dec 2023	Tieto Esy Oy	BuyPass AS
EUR million	Tieto Esy Oy	BuyPass AS
Non-current assets	0.0	5.6
Current assets	3.3	71.2
Total	3.4	76.8

Non-current liabilities	—	0.2
Current liabilities	0.5	58.8
Total	0.5	59.0

Net sales	2.4	29.3
Expenses	-2.4	-26.2
Financial items	0.1	0.2
Result before taxes	0.1	3.3
Income taxes	-0.0	-0.8
Net result for the financial year	0.1	2.5

Dividends paid to Tietoevry	0.4	0.9

Average full-time personnel during the financial year	18	80


31 Dec 2022	Tieto Esy Oy	TietoIlmarinen Oy	BuyPass AS
EUR million	Tieto Esy Oy	TietoIlmarinen Oy	BuyPass AS
Non-current assets	0.0	—	5.2
Current assets	4.0	—	45.5
Total	4.0	—	50.7

Non-current liabilities	—	—	—
Current liabilities	0.7	—	32.5
Total	0.7	—	32.5

Net sales	3.9	1.6	30.7
Expenses	-3.2	-2.4	-27.9
Financial items	—	—	0.1
Result before taxes	0.7	-0.8	2.9
Income taxes	-0.2	0.0	-0.7
Net result for the financial year	0.6	-0.8	2.2

Dividends paid to Tietoevry	0.5	—	0.9

Average full-time personnel during the financial year1)	27	13	77

1) Updated for BuyPass AS based on the monthly average full-time personnel for the year.

100

28. Related party transactions

Related parties of Tietoevry include joint ventures and key management of the company and their close

family members. Key management includes the members of the Board of Directors, Leadership team and

the President and CEO.


ACCOUNTING POLICIES
Sales to and purchases from related parties are made on normal market terms and conditions and at market prices. There are no commitments or contingencies on behalf of related parties.

The transactions with related parties are presented below. More information on joint ventures is disclosed

in note 27. Information on management remuneration is disclosed in note 8.

Transactions and balances with joint ventures


EUR million	31 Dec 2023	31 Dec 2022
Sales	1.2	2.9
Other operating income	0.6	1.3
Purchases	0.6	1.3
Receivables	0.1	0.1
Liabilities including cash pool	3.1	4.1

29. Commitments and contingencies

The Group's commitments and contingencies mostly relate to lease guarantees and performance

commitments.


ACCOUNTING POLICIES
Commitments are disclosed when the Group has a contract where the existence of an obligation will be only confirmed in the future.
Contingent liabilities are possible obligations whose existence will be confirmed by uncertain future events that are not wholly within the control of the entity. They can also include obligations that are not recognized in the statement of financial position because settlement is not probable or their amount cannot be measured reliably.


EUR million	31 Dec 2023	31 Dec 2022
For Tietoevry obligations
Guarantees
Performance guarantees	150.6	81.7
Payment guarantees	0.6	0.5
Other	0.1	0.1
Other Tietoevry obligations
Lease commitments, not yet commenced	10.7	22.3
Other	0.5	0.6
On behalf of third parties
Guarantees
Performance guarantees	23.4	23.4

In addition to the above, Tietoevry Oyj or other group companies have provided security on behalf of

delivering Group company relating to some major contracts.

30. Events after the reporting period