549300EW2KM4KROKQV31-2024-12-31-en


Report by the Board of Directors1)		Consolidated Financial Statements (IFRS)
Report by the Board of Directors1)		Consolidated Financial Statements (IFRS)		FINANCIAL RISK MANAGEMENT AND CAPITAL STRUCTURE		10. Investments	186
About Tietoevry	5	Income statement	118	20. Management of financial risks and capital structure	160	11. Long-term receivables	186
Highlights of 2024	5	Statement of other comprehensive income	118	21. Interest-bearing loans and borrowings	165	12. Current receivables	186
Five-year key figures	6	Statement of financial position	119	22. Financial income and expenses	167	13. Prepaid expenses and accrued income	187
IT market development	7	Statement of cash flows	120	23. Financial assets and liabilities	168	14. Changes in shareholders' equity	187
Specialization-based strategy for greater value to all stakeholders	8	Statement of changes in shareholders' equity	121	24. Derivatives	170	15. Provisions	188
	8	Notes to the consolidated financial statements (IFRS)		25. Cash and cash equivalents	171	16. Non-Current liabilities	188
Financial performance	9	Notes to the consolidated financial statements (IFRS)		26. Share capital and reserves	171	17. Current liabilities	188
Financial position at the end of the period	13	BASIS OF PREPARATION		OTHER INFORMATION		18. Accrued liabilities and deferred income	189
Investments and development	13	1. Corporate information	123	27. Acquisitions and divestments	173	19. Deferred tax assets and liabilities	189
Order backlog	13	2. Material accounting policy information	123	28. Subsidiaries	175	20. Contingent liabilities	189
Personnel	14	3. Adoption of new and amended IFRS accounting standards and interpretations	124	29. Interests in joint ventures	177	21. Derivatives	190
Performance in 2025	15		124	30. Related party transactions	177	22. Management of financial risks	190
Major agreements	15	4. Use of judgements and estimates	124	31. Commitments and contingencies	178
Changes in Group Structure	18	PERFORMANCE FOR THE YEAR		32. Events after the reporting period	178	Proposal for distribution to shareholders	190
Branches	18	5. Segment information	125			Signatures for the report by the Board of Directors, Sustainability Statement and Financial Statements, and Auditors note	191
Shareholders' Meeting	19	6. Revenue	128
Shareholders’ Nomination Board	19	7. Other operating income and expenses	131	Parent company's financial statements (FAS)
The Board of Directors	20	8. Income taxes	132	Income statement	179
The President and CEO and operative management	21	9. Earnings per share	135	Balance sheet	180	Auditor's report	192
Auditors	22	COMPENSATION AND BENEFITS		Statement of cash flows	181	Assurance report on the Sustainability Statement	197
Major risks	22	10. Employee expenses	136			Independent auditor’s report on the ESEF consolidated financial statements of Tietoevry Oyj	200
Shares and shareholders	27	11. Remuneration of key management	137	Notes to the Parent Company's Financial Statements (FAS)	182		200
Shareholder distribution	31	12. Share-based payments	139	1. Net sales	183
Full-year outlook for 2025	33	13. Defined benefit plans	142	2. Other operating income	183
Financial calendar 2025	33	INVESTED CAPITAL AND WORKING CAPITAL ITEMS		3. Personnel expenses	183
Key figures	34	14. Goodwill and other intangible assets	146	4. Other operating expenses	183
		15. Property, plant and equipment	151	5. Management remuneration	183
Sustainability Statement2)	36	16. Leases	153	6. Financial income and expenses	184
		17. Trade and other receivables	156	7. Income taxes	184
1) Unaudited		18. Provisions	158	8. Intangible assets	185
2) Assured		19. Trade and other payables	159	9. Tangible assets	185

Board review

About Tietoevry5

Highlights of 2024 5

Five-year key figures6

IT market and strategy7

Financials and investments9

Order backlog13

Personnel14

Performance drivers in 202515

Major agreements15

Branches18

Governance19

Risks22

Shares and shareholders27

Shareholder distribution31

Full-year outlook for 202533

Key figures34

Sustainability Statement36

About Tietoevry

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

services and software company that employs around 23 000 experts globally. Tietoevry serves thousands of

enterprise and public sector customers in around 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 cloud-native and AI-enabled market opportunities, Tietoevry’s five specialized 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 2024

• Tietoevry continued its strategy execution aiming to reposition the company as a leading software and

digital engineering player globally.

• Tietoevry Tech Services strategic review is expected to be concluded in March 2025. The sales process

with the non-industrial buyer is in final stages. Sales process may or may not result in a transaction.

• Related to the strategic review of Tietoevry Banking, the Board of Directors decided in April to further

develop the business as a specialized business within the Group.

• The company announced appointments in the Group Executive Management. Cosimo De Carlo was

appointed as Managing Director of Tietoevry Create, effective 1 September 2024, and Endre Rangnes

was appointed as the Managing Director of Tietoevry Banking, effective 3 September 2024.

• Tietoevry continued to actively invest and promote reskilling towards new technologies of cloud, data

and AI.

• In January 2024, Tietoevry experienced a criminal ransomware attack in one of its data centres in

Sweden. Ransomware-event related customer contract settlements impacted Tietoevry Tech Services'

growth and profitability.

• During the year, the company won contracts covering new technologies in the areas of data, cloud and

AI/GenAI, described in section Major agreements.

• In the full year, revenue was down by 2%. Organically1) , revenue was down by 2%. Adjusted operating

profit2) (EBITA) was EUR 344.7 (358.7) million, representing a margin of 12.3% (12.6).

• Operating profit (EBIT) amounted to EUR 29.8 (255.6) million, impacted by a non-cash charge of EUR 200

million in impairment losses related to the goodwill held in Tietoevry Tech Services.

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


	2024	2023	2022	2021	2020
Revenue, EUR million	2 802.6	2 851.4	2 928.1	2 823.4	2 786.4
Operating profit (EBIT), EUR million	29.8	255.6	266.5	382.0	146.7
Operating margin (EBIT), %	1.1	9.0	9.1	13.5	5.3
Adjusted1) operating profit (EBITA2)), EUR million	344.7	358.7	379.2	367.8	355.0
Adjusted1) operating margin (EBITA2)), %	12.3	12.6	13.0	13.0	12.7
Profit/loss before taxes, EUR million	-21.8	220.8	242.8	353.8	122.4
Earnings per share, EUR
Basic	-0.53	1.45	1.59	2.46	0.80
Diluted	-0.53	1.45	1.59	2.46	0.80
Equity per share, EUR	10.95	13.62	14.52	15.38	13.73
Dividend per share3), EUR	1.50	1.47	1.45	1.40	1.32
Capital expenditure, EUR million	85.0	85.3	92.9	80.8	83.5
Acquisitions (cash outflows), EUR million	1.0	156.3	—	—	0.6
Return on equity, 12-month rolling, %	-4.3	10.3	10.7	16.9	5.7
Return on capital employed, 12-month rolling, %	1.4	9.8	9.9	13.7	5.2
Gearing, %	67.2	56.6	39.5	33.5	54.3
Interest-bearing net debt, EUR million	871.8	911.8	679.1	610.6	883.3
Equity ratio, %	43.1	46.7	51.5	51.6	45.9
Personnel on average	23 593	24 181	24 401	23 824	23 788
Personnel on 31 Dec	22 941	24 159	24 320	24 389	23 632

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

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

3) For 2024, distribution of dividend and/or return of capital

See calculation of key figures on page Alternative performance measures.

IT market development

Market softness in IT services is anticipated to continue into 2025 and the lower-demand environment to also

impact software businesses. Customers continue to focus on resilience, prioritizing investments in initiatives that

yield results in the short term. High pressure on public spending continues, especially in the Nordics. Tietoevry’s

business mix, however, provides resilience, as specialized businesses comprise a significant proportion of long-

term customer engagements. Currently, the market is expected to recover gradually during the second half of the

year.

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

productivity and competitiveness. The technology market continues to evolve further, building on cloud native

technologies towards Artificial Intelligence (AI). AI market adoption is accelerating. This next cycle of

transformation is providing high demand for cloud native, data services and AI-embedded software, and is

expected to result in over 10% market growth in this area. AI involving multiple technologies such as machine

learning, natural language processing and generative AI is enabling multiple use-cases across industries,

augmenting productivity, decision support and autonomous operations alike. While these technologies bring

enhanced experiences, products and services to customers, they also increase privacy, security and

misinformation risks. Reliable data management and security practices play a major role in capturing AI-driven

opportunities.

Customers also continue to emphasize data sovereignty, security and business continuity as they adopt cloud

technologies, with multi-cloud becoming a default. 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 may be affected by customer demands for price reductions. IT service companies' ability to increase

prices and margins remains limited.

Specialization-based strategy for greater value to all

stakeholders

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. Specialization drives a best-in-class customer proposition and attracts talent.

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

operational independence to build scale and prioritize investments, reflecting the distinct market dynamics,

business proposition and value potential of each. The businesses are described at www.tietoevry.com.

Repositioning Tietoevry as a leading software and digital engineering player globally

Tietoevry aims to unlock value through a strategic review of Tietoevry Tech Services. With the strategic review,

the company seeks to drive the competitiveness of the business. 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. The strategic review is progressing and the company is in the final

stages of negotiations on an exclusive basis with the non-industrial buyer. The process is expected to conclude

during March. Ongoing negotiations may or may not result in a transaction.

Tietoevry's specialized 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.

Financial performance


	1–12/2024	1–12/2023
Revenue, EUR million	2 802.6	2 851.4
Change, %	-2	-3
Organic growth, %	-2	4
Operating profit (EBIT), EUR million	29.8	255.6
Operating margin (EBIT), %	1.1	9.0
Adjusted operating profit (EBITA), EUR million	344.7	358.7
Adjusted operating margin (EBITA), %	12.3	12.6
EPS, EUR	-0.53	1.45
Net cash flow from operations, EUR million	325.7	266.1
Capital expenditure, EUR million	85.0	85.3

Full-year revenue was down by 2% to EUR 2 802.6 (2 851.4) million. Exchange rates had a negative impact of

EUR 16 million on revenue compared to 2023. Net impact of acquisitions and divestments was positive at EUR 37

million. Organically, revenue was down by 2%. Full-year operating profit (EBIT) amounted to EUR 29.8 (255.6)

million, representing a margin of 1.1% (9.0). Operating profit was impacted by a non-cash charge of EUR 200

million in impairment losses related to the goodwill held in Tietoevry Tech Services. More details in note 14 to the

Financial Statements. Operating profit includes EUR -71.1 (-61.2) million in adjustment items. Adjusted operating

profit (EBITA) stood at EUR 344.7 (358.7) million, or 12.3% (12.6) of revenue. Further details on adjustment items

are available in the Alternative Performance Measures paragraph.

Depreciation and amortization amounted to EUR 162.2 (152.4) million, including EUR 58.0 (59.8) million in

depreciation of right-of-use assets and EUR 43.8 (41.8) million in amortization of acquisition-related intangible

assets. Net financial expenses stood at EUR 51.6 (34.9) million. Net interest expenses were EUR 43.7 (34.1)

million and net losses from foreign exchange transactions EUR 2.6 (gains 3.1) million. Other financial income and

expenses amounted to EUR -5.4 (-3.9) million.

Earnings per share (EPS) totalled EUR -0.53 (1.45). Adjusted earnings per share amounted to EUR 1.92 (2.14).

Cash flow and investments

Full-year net cash flow from operating activities amounted to EUR 325.7 (266.1) million, including an decrease of

EUR 26.4 (increase of 95.2) million in net working capital.

Capital expenditure totalled EUR 85.0 (85.3) million, mainly consisting of capitalized costs for the development

of software, investments in data centres and business-related software licences. Full-year capitalized costs for

industry-specific software amounted to EUR 45.2 (44.7) million. Capital expenditure represented 3.0% (3.0) 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, %
	1–12/2024	1–12/2023	Growth, %	Organic growth, %	1–12/2024	1–12/2023	1–12/2024	1–12/2023
Tietoevry Create	836.9	852.3	-2	-5	100.1	114.6	12.0	13.4
Tietoevry Banking	580.4	567.2	2	4	72.0	68.9	12.4	12.1
Tietoevry Care	231.3	232.8	-1	-1	68.2	70.2	29.5	30.1
Tietoevry Industry	263.7	262.6	0	1	39.4	43.4	15.0	16.5
Tietoevry Tech Services	1 000.7	1 072.7	-7	-6	88.7	85.7	8.9	8.0
Eliminations and non-allocated costs	-110.4	-136.1	—	—	-23.7	-24.0	—	—
Total	2 802.6	2 851.4	-2	-2	344.7	358.7	12.3	12.6

In Tietoevry Create, revenue was organically down by 5%. The market remained weak throughout the year with

macroeconomic uncertainties impacting all regions. The business launched a new operating model during the

year to drive customer-centricity, service innovation, global scale and efficiency. The business also initiated

measures to adjust its capacity to market demand.

In Tietoevry Banking, revenue was organically up by 4%. Growth was strongest in the Cards, Financial Crime

Prevention and Credit businesses while increasing market softness started to have an impact during the second

half of the year. Profitability improved due to active measures to drive efficiency.

In Tietoevry Care, revenue was organically down by 1%. Growth was affected by public sector deficits in Finland

and Sweden. Towards the end of the year, the declining legacy product business had a further negative impact

on growth. Lifecare solutions remained competitive and the data & analytics business grew strongly. The

business continued to deliver strong profitability during the year.

In Tietoevry Industry, revenue was organically up by 1%. The market environment impacted demand in the pulp,

paper and fibre industry and the public sector, especially in Finland, whereas growth in Data Platform Services

continued. Full-year profitability decreased primarily due to weak performance in the fourth quarter.

In Tietoevry Tech Services, revenue was organically down by 6%. Growth was impacted by continued market

softness and volatility in hardware and software reselling. Cloud platform and security services saw growth

whereas traditional infrastructure services' market continued to decline. Profitability improved, driven by

efficiency management while ransomware event-related customer settlements strained growth and profitability

by approximately 1 percentage point in the full year.

Related to the criminal ransomware attack in one of its data centres in Sweden, the company recorded costs of

approximately EUR 1.5 million in 2024, included in adjustment items, and contractual service level agreement

(SLA) penalties of approximately EUR 0.6 million as a reduction revenue. Further, Tietoevry received claims for

damages from customers and the Group recorded EUR 7.6 million as a reduction in revenue. In the full year,

ransomware event-related customer contract settlements strained Tech Services' growth and profitability by

approximately 1 percentage point. The claims process is ongoing with the insurance provider. More details in

note 6 to the Financial Statements.

For a comprehensive set of segment figures, see note 5 to the Financial Statements.

Financial position at the end of the period

The equity ratio was 43.1% (46.7). Gearing was 67.2% (56.6). Interest-bearing net debt totalled EUR 871.8 (911.8)

million, including EUR 904.5 (951.4) million in interest-bearing debt, EUR 193.0 (211.7) million in lease liabilities,

EUR 1.4 (2.2) million in finance lease receivables, EUR 29.2 (29.5) million in other interest-bearing receivables and

EUR 195.1 (219.6) million in cash and cash equivalents.

Interest-bearing long-term liabilities amounted to EUR 712.1 (701.0) million at the end of December. In 2024, the

company made a draw-down of new term loans of EUR 120 million and EUR 130 million, maturing in 2027, and a

term loan of EUR 100 million, maturing in 2026. Additionally, the company's interest-bearing long-term liabilities

primarily comprise a term loan of EUR 174 million, maturing in 2028, and lease liabilities of EUR 142.6 million.

Interest-bearing short-term liabilities amounted to EUR 385.4 (462.2) million, mainly comprising a EUR 300

million bond, maturing in June 2025, and lease liabilities.

In December, the company signed a two-year term loan facility of EUR 300 million from Nordea Bank Abp,

Danske Bank A/S and OP Corporate Bank plc to be used for refinancing of the EUR 300 million bond.

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 2028 and has a one-year extension option. 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 are made in areas such as its own industry-specific software,

data and analytics/AI and cloud services. Tietoevry’s development costs amounted to around EUR 131 (2023: 129

and 2022: 124) million, representing 4.7% (2023: 4.5% and 2022: 4.2%) of the Group's revenue, including

capitalized costs.

Order backlog

Tietoevry's order backlog amounted to EUR 3 261 (3 236) million at the end of December. Adjusted for the impact

of exchange rates, acquisitions and divestments, the order backlog was up by 2% from the level of the

corresponding period of 2023. 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 22 941 (24 159) at the end of December. The number of full-

time employees in the global competence centres totalled 12 153 (12 789), or 53.0% (52.9) of all personnel. The

12-month rolling employee turnover stood at 8.3% (10.1) at the end of December. Tietoevry believes that a

normal attrition level is 10–12%.

Group-level salary inflation in 2024 was 4.5%. 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


	2024	2023	2022
Number of full-time employees, 31 December	22 941	24 159	24 320
Average number of full-time employees	23 593	24 181	24 401
12-month rolling employee turnover, %	8.3	10.1	14.4
Employee benefit expenses, EUR million	1 566	1 566	1 597

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.

During the year, the company developed a new Human Resource Policy. New targets related to gender equality,

equal pay and diversity were also developed and implemented. The completion of Code of Conduct training,

which includes e-learning modules about diversity, equity and inclusion (DEI), continued to be mandatory for all

employees during the year. In 2024, Tietoevry introduced new Responsible AI e-learning based on the

company’s updated AI Policy and Rules.

Tietoevry invests in the competence development and continuous learning of its employees. 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.

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

survey, employees provide feedback across multiple engagement drivers. The employee engagement score was

somewhat down from the previous year.

More information about the company’s sustainable practices and actions taken in 2024 is provided in the

Sustainability Statement.

Performance in 2025

Market softness in IT services is anticipated to continue into 2025. Tietoevry currently expects its organic growth

to be in the range of -3% to +1% in the full year. 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. Visibility to the IT market in the full year is weak and the company currently expects low to

modest market recovery in the second half of the year. First-quarter growth is anticipated to be negative.

Tietoevry currently expects full-year adjusted operating profit margin to be 12.0%–13.0%. The company

estimates salary inflation to be 4–5% on average for 2025. Tietoevry is also impacted by overall 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.

Continued focus on efficiency is expected to support profitability. For 2025, one-time costs for the Group are

expected to decrease to 1.0–1.5% of revenue. Efficiency measures, impairments and other one-time items are

expected to average around 1% of revenue over time. In addition, the completion of Tietoevry Tech Services'

strategic review might result in additional one-time costs.

Major agreements

In collaboration with Helsinki University Hospital, Tietoevry Care is developing an artificial intelligence solution

that enables rapid identification of rare diseases. The research results have potential to speed up the diagnosis

of rare diseases, improve patient care and avoid the costly process of delayed or misdirected treatments and

medicines. Early diagnosis often results in less need for treatment and the research has the potential to facilitate

doctors’ work and improve patient care, ultimately leading to an enhanced quality of life for patients. The AI

solution can bring forward the diagnosis by months or even years.

Svea Perintä Oy chose Tietoevry Industry to deliver the Multichannel solution in Finland. Multichannel will handle

outbound communication – primarily consisting of payment reminder and debt collection letters – for Svea

Perintä Oy. Through the implementation of the Multichannel solution, Svea Perintä Oy will gain access to new

digital distribution channels yielding improvements in both cost-efficiency and customer experience.

Modern Karton AS selected Tietoevry Industry’s mill execution system for implementation across its three mills in

Turkey and the UK. With this implementation, the customer aims to modernize its operations, increase flexibility

to meet market demands, prioritize sustainable products, and support organic growth and higher profitability.

The partnership underscores a commitment to innovation and operational excellence, positioning Modern

Karton as a leading vendor in its market.

Tietoevry Care was chosen to deliver its Lifecare client information system to Satakunta wellbeing services

county. The deployment of a shared information system in Satakunta will improve and harmonize social care

services – the Lifecare system will replace the county’s six social information systems, enabling better

management and understanding of social care customers. Furthermore, Tietoevry Care's Lifecare patient

information system is strengthening its position in the wellbeing services county of Satakunta through an

expansion of the system, taking place in spring 2025. The system will harmonize primary healthcare and dental

healthcare in the county by improving the quality of care and services as well as promoting operational

efficiency.

Tietoevry Care has won a significant contract to implement its Lifecare Open Platform solution at Karolinska

University Hospital in Sweden. The platform is based on an open standard for electronic health records,

openEHR. The Lifecare Open Platform complements existing healthcare systems by compiling information from

various sources into a seamless user experience. The platform enables improved management of patient data

and care processes, and more efficient and patient-centred care with less administration.

Handelsbanken Norway has entered into a new agreement with Tietoevry Banking. Central to the agreement is

the migration to a new modern core banking solution that is modular and based on high-level APIs, making it easy

to integrate with new solutions that support Handelsbanken’s channel strategy.

The wellbeing services county of Southwest Finland chose Tietoevry Care's Lifecare solution with a view to

helping care workers in their daily work in various locations across Southwest Finland, and enabling the

provision of equal services to the county’s 500 000 residents. The system covers, for example, the provision of

care for families with children, the elderly, people with disabilities and child protection.

Tietoevry Industry entered into an agreement with the Norwegian Labour and Welfare Administration (NAV) to

enhance the digitization and automation of NAV's information and document processes. Public 360° Online with

AI embedded will simplify information management for both administration and operational activities.

Tietoevry Create has been chosen to support, maintain and develop websites and digital service platforms

intended for Business Finland's customers and stakeholders. Business Finland is an organization that promotes

the growth and internationalization of Finnish companies.

Tietoevry Banking and Geldmaat agreed on a renewal of their strategic partnership. Following several years of

successful collaboration, Geldmaat extended the partnership for an additional five years for use of ATM SaaS

solutions. The service currently covers approximately 4 250 ATMs and cash recyclers in the Dutch market.

Building on 20 years of close collaboration, the Norwegian insurance company Gjensidige Forsikring has

extended their contract with Tietoevry Tech Services. The renewed partnership covers modernization and

securing Gjensidige’s technology roadmap to support the insurance company’s growth ambitions.

Tietoevry Care and the wellbeing services county of Central Finland used Generative AI to help classify customer

feedback data. The pilot utilized the Microsoft Azure OpenAI service, where the classification was entirely done

by generative AI using large language models. Most of the feedback was related to reception, patient care,

encountering and treating of the patient, or customer service. Systematic utilization of feedback and integrating

it into service development, short response times, and integration into service development are considered to be

important development areas.

Ten banks are now pioneering the integration of BankAxept, the national payment system in Norway, into Apple

Pay. This allows Norwegian card users to benefit from an easy, secure and private way to pay with an iPhone or

Apple Watch. Tietoevry Banking has, on behalf of Norwegian banks, worked closely with BankAxept to bring

BankAxept cards into Apple Pay. This collaboration leverages Tietoevry Banking’s strong market position as a

modernization partner for international payment solutions. For retailers, costs will be considerably reduced.

Bankgirot is extending their strategic collaboration with Tietoevry Tech Services for an additional two years. The

collaboration will include managed services, applications and networks. Bankgirot is one of Tietoevry Tech

Services’ strategic customers and the value of the contract is around EUR 20 million.

Pelvital, a US-based femtech company on a mission to improve the experience of patients with urinary

incontinence, chose Tietoevry Create as their partner to create a mobile app and web portal that enable

capturing and interpreting data from treatment sessions. The software was built using the IEC 62304 project

management framework and Tietoevry ensured that it met the necessary quality criteria to pass the FDA’s

software validation requirements.

Ahlstrom, a global leader in fibre-based materials, has selected Tietoevry as its strategic partner. This partnership

represents a significant expansion of the existing collaboration, as Tietoevry is already responsible for delivering

the Manufacturing Execution System (MES) for Ahlstrom's operations. The cloud services create a digital

foundation for the MES, also enabling the necessary flexibility for future implementations and other forthcoming

services. This renewal supports the aim to enhance production capabilities, increase operational efficiency, and

drive digital transformation across manufacturing processes. The extended cooperation highlights Ahlstrom's

commitment to leveraging advanced technologies and Tietoevry's expertise in cloud and MES solutions to

achieve greater scalability and innovation in its manufacturing ecosystem.

Helsinki University Hospital (HUS) has chosen Tietoevry Care to develop digital healthcare information systems

and services. Digital services complement traditional healthcare, offering advice and support to both customers

and social workers. Digitally supported treatment paths optimize the work of professionals, enabling safe remote

treatment and monitoring. Tietoevry Care has been a strategic partner of HUS since 2018.

Bank Norwegian, a branch of NOBA Bank Group, has signed a five-year extension contract with Tietoevry

Banking to support the bank’s strong growth in the Nordics and Europe. This agreement is an enabler for Bank

Norwegian's strategic ambition to strengthen and expand its presence in these regions. The agreement includes

a comprehensive range of card services, such as authorization, 3D Secure, clearing and settlement, security,

mobile payments, and personalization, as well as localized dispute and customer support in six languages.

Additionally, Tietoevry Banking will deliver 24/7 fraud prevention support services and monitoring of all

transactions for the bank’s card portfolio. The extended partnership provides Bank Norwegian with efficient and

secure credit card processing solutions that give their customers access to the latest card services and

technologies, while maintaining the highest level of security and support across all the bank's markets.

MentorMate, part of Tietoevry Create, continues its collaboration with Tactile Medical to further develop their

core medical device products, worn to treat multiple conditions. Tactile Medical is a leader in the US in

developing and marketing at-home therapy devices that treat lymphoedema and chronic venous insufficiency.

The municipalities in Norrbotten, Sweden, extended their agreement with Tietoevry Tech Services for another

two years. The agreement demonstrates Tietoevry’s strong customer-centric approach and ability to implement

sovereign cloud solutions for customers that are not allowed to use public cloud due to strict data requirements.

This follows the agreement, signed in 2021, to establish a private cloud platform for the municipalities. Since

then, Tietoevry has provided digital infrastructure within a secure and state-of-the-art solution that meets the

municipalities' requirements.

Tietoevry Industry won several agreements for its Public 360° solution. Falu Municipality in Sweden chose Public

360° as its solution for document and case management, signifying Tietoevry Industry’s expansion within the

municipal market. The company also entered into an agreement on SaaS migration with Brønnøysundregistrene

(Brreg), an important public sector player in Norway. The solution includes digitization, automation, robotics, and

artificial intelligence, providing easier and improved information management for both administration and

operational activities.

The Eastern and Western Uusimaa wellbeing services counties have selected Tietoevry Care’s Lifecare EHR as

their client and patient information system. The system will support primary healthcare, social services and

dental care. For the wellbeing services county of Eastern Uusimaa, the agreement also covers the management

and optimization of home care services. As the core system for the wellbeing services county, Lifecare

streamlines the work of social and healthcare professionals by providing a real-time, comprehensive view of

client and patient information. Currently, Lifecare is used by 15 wellbeing services counties, serving over 3 million

Finnish citizens.

Changes in Group structure

In June, Tietoevry Create bought the remaining 20% share of the joint venture Tieto Esy Oy, which resulted in an

impairment loss of EUR 0.3 million. Tieto Esy has been consolidated as a 100% owned subsidiary since 30 June

2024.

In 2024, Tietoevry and Norsk Tipping, both with 50% ownership in Buypass AS, jointly entered into an agreement

with Total Specific Solutions (TSS) on the sale of their shares in Buypass AS. Buypass was co-founded by

Tietoevry and Norsk Tipping in 2001 and has been accounted for as a joint venture in Tietoevry's consolidated

financial statements, included in Tietoevry Banking. The transaction closed on 16 October. Tietoevry Banking's

share of the joint venture's results was EUR 1.0 (1.3) million. Tietoevry Banking's share of the consideration

received was EUR 13.1 million and the resulting net gain of EUR 4.3 million was recognized in other operating

income.

Branches

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

Shareholders' Meeting

Tietoevry Corporation's Annual General Meeting (AGM) held on 13 March approved the financial statements

2023 and discharged the company's officers from liability for the financial year 2023. The meeting also approved

the Remuneration Report and the new Remuneration Policy. The AGM decided on a total dividend of EUR 1.47

per share, paid in two instalments.

The meeting re-elected the current members of the Board of Directors Bertil Carlsén, Elisabetta Castiglioni,

Tomas Franzén, Liselotte Hägertz Engstam, Harri-Pekka Kaukonen, Katharina Mosheim, Gustav Moss, Endre

Rangnes and Petter Söderström. 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 2 September 2024 in the Finnish, Norwegian and Swedish shareholders’ registers and received

evidence. The shareholders who wished to participate in the work of the Shareholders’ Nomination Board

nominated the following members:

Annareetta Lumme-Timonen, Investment Director, Solidium

Alexander Kopp, Investment Manager, Incentive

Mikko Lantto, Chief Technology and Development Officer, Ilmarinen

Alexander Svensson, Vice President, Cevian Capital

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

The Board of Directors

Board of Directors at 31 December 2024 1)


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 Carlsén	1960	Swedish	MSc. (Business Adm.)	Financial advisor and professional Board member
Elisabetta Castiglioni	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 Moss	1988	Swedish	MSc. (Finance & Accounting)	Partner, Cevian Capital AB
Petter Söderström	1976	Finnish	MSc. (Econ.)	Investment Director, Solidium Oy
Anders Palklint (personnel representative)	1967	Swedish	MSc. (Eng.)	Senior Project Manager
Thomas Slettemoen (personnel representative)2)	1970	Norwegian	Education BSc. (Comp.)	Business Consultant

1) Endre Rangnes served as a Board member until 3 September 2024 and personnel representative Tommy Sander Aldrin until the AGM on 13 March 2024.

2) Board member (personnel representative) as of the AGM on 13 March 2024.

The President and CEO and operative management

Members of the Group Executive Management as at 31 December 2024

Kimmo Alkio

President and CEO

Born: 1963

Gender: male

Nationality: Finnish

Education: BBA and Executive MBA

Joined Tietoevry in 2011

Cosimo de Carlo1)

Managing Director, Tietoevry Create

Born: 1973

Gender: male

Nationality: Italian, German

Education: Msc. (CS)

Joined Tietoevry in 2024

Kishore Ghadiyaram

Head of Strategy

Born: 1972

Gender: male

Nationality: Indian

Education: BSc. (Tech.)

Joined Tietoevry in 2008

Carsten Henke

Managing Director, Tietoevry Industry

Born: 1968

Nationality: German

Gender: male

Education: Msc. (Math)

Joined Tietoevry in 1995

Tomi Hyryläinen

Chief Financial Officer

Born: 1970

Gender: male

Nationality: Finnish

Education: MSc. (Econ.)

Joined Tietoevry in 2018

Ari Järvelä

Managing Director, Tietoevry Care

Born: 1969

Gender: male

Nationality: Finnish

Education: MSc. (Eng.)

Joined Tietoevry in 2001

Satu Kiiskinen

Managing Director, Tietoevry Tech Services

Born: 1965

Gender: female

Nationality: Finnish

Education: MSc. (Econ.)

Joined Tietoevry in 2013

Endre Rangnes2)

Managing Director, Tietoevry Banking

Born: 1959

Gender: male

Nationality: Norwegian

Education: BBA

Joined Tietoevry in 2024

Trond Vinje

Head of HR

Born: 1968

Gender: male

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) Cosimo de Carlo was appointed Managing Director of Tietoevry Create, effective 1

September 2024. Harri Salomaa served as Acting Managing Director from 9 January to 1

September 2024. Prior to that, Christian Pedersen held the position of Managing Director until

9 January 2024.

2) Endre Rangnes was appointed Managing Director of Banking, effective 3 September 2024

after serving on the Board of Directors of Tietoevry Oyj for 10 years. Klaus Andersen held the

position of Managing Director until 3 September 2024.

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.

Auditing 2024

The AGM 2024 elected the firm of authorized public accountants Deloitte Oy as the company’s auditor for the

financial year 2024. Deloitte Oy notified the company that Authorized Public Accountant Jukka Vattulainen acts

as principal auditor.

In 2024, Tietoevry Group paid the auditors a total of EUR 1.6 ( 1.6) million in audit fees, and a total of EUR 0.7 ( 0.6)

million for other services.

Major risks

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

compliance risks. In addition, Tietoevry has six risk types: Cybersecurity, Environmental, Social, and Governance

(ESG), Health and Safety, Privacy, Quality and Reputational. Risk categories serve the purpose of grouping risks,

while risk types are primarily utilized for the classification of risks and as the basis for relevant KPIs.

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 businesses, 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.

Cybersecurity risks involve potential threats to Tietoevry’s information systems and data that could lead to

unauthorized access, data breaches, and operational disruptions. These risks necessitate robust security

measures to protect sensitive information and ensure continuity of services.

ESG risks refer to potential impacts on Tietoevry's financial performance and position in the short, medium, and

long term, as well as potential negative impacts on people and the planet. These risks include regulatory

changes, environmental sustainability challenges, social compliance issues, and governance shortcomings,

requiring proactive measures to mitigate associated impacts and comply with sustainability regulations and

standards. Tietoevry incorporates ESG risks into its overall risk management process, considering factors like

climate change, resource scarcity, regulatory changes, and social issues such as labour practices and community

impact. The company regularly conducts double materiality analyses to identify the most significant sustainability

impacts, risks, and opportunities (IROs) for its business and stakeholders. Sustainability risks are integrated into

the overall risk framework.

Through its double materiality assessment, Tietoevry has identified material impacts, risks, and opportunities that

can affect both people and the planet, as well as the company's financial performance and status. Detailed

information about the company's IROs, including management and performance for the financial year 2024, is

presented in Tietoevry’s Sustainability Statement in accordance with CSRD/ESRS. Tietoevry's integration of

sustainability into risk reporting demonstrates a comprehensive understanding of how ESG factors can influence

business risks and opportunities, contributing to sustainable growth and long-term resilience.

Health and safety risks involve potential threats to the wellbeing and safety of individuals within Tietoevry's

operations. Reductions in employee wellbeing and morale could impact company culture, leading to

absenteeism, turnover, loss of key employees, and challenges in attracting new talent. These risks necessitate

proactive measures to ensure a safe working environment and adherence to relevant health and safety

regulations, safeguarding both employees and the organization.

Privacy risks involve potential threats to personal data due to unauthorized access, breaches, and misuse. These

risks require stringent data protection measures and compliance with regulations such as GDPR to safeguard

sensitive information and maintain trust.

Project risks encompass potential challenges in executing and delivering projects, which may arise from factors

such as resource allocation, timeline management, and meeting customer requirements.

Quality risks involve the potential decline in service and product standards that can arise from inadequate quality

assurance processes, process failure, insufficient training, or failure to meet customer expectations.

Reputational risks arise when an organization faces potential damage to its public image or credibility, which can

result from negative publicity, ethical breaches, poor customer service, or failure to comply with regulations.

Such risks can lead to a loss of trust among stakeholders, clients, and the public, impacting the company's

market position and financial performance.

Risks are registered, managed, followed up and aggregated by utilizing the corporate governance, risk, and

compliance (GRC) platform, resulting in risk maps and risk KPIs that are reviewed by leadership teams in the

businesses and the Audit and Risk Committee (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, and the company's

value proposition needs to be managed, maintained and adapted to changing markets. 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

review of the Tietoevry Tech Services business may 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, data communication disruption or different types of intentional and unintentional actions by

p eople.

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 and 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 continuously expanding and changing, with potential sources including for example

criminal hackers, hacktivists, human errors or misconduct, and state-sponsored organizations. These threats

may lead to malfunctions or cybersecurity breaches affecting 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 negatively affect the company's financial performance and reputation.

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

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

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

The company routinely reviews its cybersecurity framework along with the security protection, detection, and

response mechanisms. The company also trains its employees to enhance their awareness of cyber threats and

continuously assesses its cybersecurity maturity.

Quality costs related to customer bidding and delivery management

Failure to accurately understand and analyse customers' evolving needs, their business processes, and precise

requirements can result in errors in setting the scope of projects or services, leading to challenges in meeting the

specifications of customer agreements.

Tietoevry ensures that business processes from sales to delivery are designed, implemented, and embedded to

deliver customer value while mitigating end-to-end risk exposure throughout full contract life cycles. Both

internal and external quality assessments and audits verify the effectiveness and efficiency of operations and

control the quality of outcomes through measurable and actionable KPIs (Key Performance Indicators) and key

controls. Additionally, customer feedback management is integral to maintaining performance and quality

assurance at both operational and strategic levels. Tietoevry regularly requests feedback from customers to

evaluate individual deliveries and to understand how well the company supports their changing business

objectives through its portfolio of deliveries. These insights and actions derived from customer feedback are

prioritized and followed up regularly at all organizational levels and integrated into change management efforts.

Retention and attrition of employees

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

talent, and retain existing competencies and business knowledge for new services, service models,

technologies, and offerings. Tietoevry's performance relies on attracting talent, skills renewal, business

knowledge, and organizational maturity. Also the increasing utilization of new technologies, including AI, can

lead to reallocation of workforce and reskilling needs.

The failure to retain key employees and attract new talent with the necessary skills could adversely affect the

company's performance. High employee turnover may also result in delays in customer projects, potentially

leading to penalties or customer loss.

To mitigate these risks, Tietoevry employs unified delivery models across its locations and provides its

employees with challenging roles, diverse development opportunities, social recognition, training programmes,

and engaging career pathways through job rotation. Additionally, Tietoevry offers competitive compensation

packages, including a comprehensive company-wide incentive system. The company prioritizes effective

recruitment tools, strategies, talent management, and competency development, including reskilling. Tietoevry

also places a significant emphasis on employer branding to enhance and sustain its image as an attractive

employer both internally and externally. For instance, Tietoevry is committed to diversity, equity, and inclusion

(DEI) – the company fosters a culture that celebrates differences and ensures that all employees feel valued and

respected.

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 adhere to a broad spectrum of laws and regulations

at both the European and international levels. These include, but are not limited to, data protection and privacy

laws, public procurement regulations, anti-corruption and anti-bribery laws, regulations restricting competitive

trading conditions, health and safety regulations, environmental regulations, labour regulations, competition

regulations, as well as securities markets, corporate, and tax laws. Non-compliance with these regulations or

failure to implement new requirements may result in regulatory interventions, penalties, or a slowdown or

cessation of the company’s 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 organization-wide privacy initiatives. Tietoevry has implemented a privacy governance

model that ensures the Group and each business have dedicated resources for ongoing follow-up, reporting,

proactive privacy development, and active employee training and communication. This governance model

ensures that GDPR requirements are thoroughly integrated into key processes such as product and software

development, sales, sourcing and marketing, programme and project delivery, continuous service delivery, and

Tietoevry’s internal services through clear rules and instructions.

Supply chain risk

Tietoevry's performance in fulfilling its obligations to customers can be compromised if any key supplier or

partner fails to meet their commitments. Such failures could result in liabilities and negatively affect the

company’s profitability. To manage these risks, Tietoevry employs robust partner contract management, engages

in contract renewal negotiations, and continuously evaluates partner delivery quality. Furthermore, Tietoevry

recognizes the importance of diversifying its business-critical suppliers to mitigate dependency risks. By

expanding its supplier base, the company aims to ensure resilience and maintain operational continuity even if

one supplier faces challenges.

Global pandemic

Even though Covid-19 is no longer considered to be a pandemic by the World Health Organization (WHO), it (or

some other widespread illness) can still create uncertainty in the market and for the company. The spread of

mpox has emerged as a new public health concern, highlighting the need for ongoing vigilance and adaptability

in addressing such threats. 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 the company's 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 the company's 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. Additional geopolitical elements such as changes in the dynamics of

international relations may affect global businesses.

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, advocating for a circular economy, and increasing

energy efficiency in its own operations. The company's energy management strategy includes optimizing energy

use across all facilities, transitioning to renewable energy sources, and implementing energy-saving technologies.

Tietoevry is also committed to minimizing its carbon footprint through various initiatives, such as using energy-

efficient equipment, promoting sustainable practices, and engaging in carbon offset programmes.

Furthermore, Tietoevry has back-up centres to ensure the continuity of customer operations in case of severe

climate change incidents, such as flooding. 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 reduce their carbon emissions through its technology solutions and facilitate customers’ transition to

a low-carbon and circular economy. By integrating circular economy principles, Tietoevry aims to minimize

waste and promote the reuse, recycling, and repurposing of materials, thereby reducing environmental impacts

and fostering sustainable development.

Artificial Intelligence

Artificial Intelligence (AI), including Generative AI and machine learning, can be leveraged for various purposes

such as support and development activities. However, the use of AI entails certain risks, including concerns

related to privacy, fairness, security vulnerabilities, ethical dilemmas, and job displacement. Furthermore,

training AI models requires substantial energy consumption, which can contribute to carbon emissions.

Addressing these challenges is crucial to unlocking the potential of AI, enabling opportunities for positive change

and innovation while ensuring responsible and ethical development.

AI can streamline operations by automating routine tasks, thereby allowing employees to focus on more strategic

and creative endeavours. AI facilitates the exploration of untapped markets and the creation of entirely new

revenue streams. For instance, AI-powered platforms can enable the rapid development and deployment of

digital services, transforming traditional industries and fostering entrepreneurial ecosystems.

The transformation of business through AI is not without challenges. It necessitates a robust strategy that

encompasses talent acquisition, upskilling, and the integration of AI into core business processes. Ethical

considerations must be addressed, ensuring that AI applications are transparent, accountable, and aligned with

societal values. Additionally, there are risks of biased decision-making due to data quality issues, potential

misuse of AI technologies, and loss of human oversight in critical decision-making processes. These risks

underscore the importance of continuous monitoring and regulatory compliance to safeguard against

unintended consequences.

Shares and shareholders

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. Tietoevry’s issued and registered

share capital amounts to EUR 76 555 412.00. Tietoevry’s shares have no par value and their book counter value

is one euro.

On 31 December, the number of shares totalled 118 640 150, including new shares related to a directed share

issue. On 24 April 2024, the Board of Directors of Tietoevry Corporation resolved on a directed share issue

without payment in order to pay the rewards of the Performance Share Plan 2021–2023 and Restricted Share

Plan 2021–2023 for key employees of the Group. In the share issue, a total of

214 379 new shares were issued free of payment to the eligible reward recipients. The new shares were

registered with the Trade Register on 14 May 2024.

The company had 70 497 registered shareholders at the end of 2024 based on the ownership records of the

Finnish, Swedish and Norwegian central securities depositories. Tietoevry received one flagging announcement

during the year. On 23 November, Silchester International Investors LLP announced that its holding had

increased to 17 845 007 shares, representing 15.04% of the total number of shares.

On 13 March 2024, the Annual General Meeting of Tietoevry Corporation decided on the forfeiture of shares

entered in the joint account of the company as well as of the rights attached to such shares. The forfeiture

concerned shares whose transfer into the book-entry system had not been validly requested by 13 March 2024.

The number of shares in the company’s joint account amounted to 10 560. The shares on the joint account were

transferred to Tietoevry’s ownership on 23 July 2024. Following the transfer, the company holds a total of

45 239, representing 0.04% of the total number of shares and voting rights. The number of outstanding shares,

excluding the treasury shares, was 118 594 911.

The members of the Board of Directors, the President and CEO and their close associates together held 0.14% of

the shares and votes registered in the book-entry system on 31 December 2024. 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 2022, 2023 and 2024

and a Restricted Share Plan 2022, 2023 and 2024. The potential rewards will be paid partly in the company’s

shares and partly in cash in 2025, 2026 and 2027, 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 3 600 000 Tietoevry shares (including the proportion to be paid in cash).

On 31 December, the value of granted and unvested share plans corresponded to 2 755 649 shares. The

company has not issued any bonds with warrants and does not have any stock option programmes.

Board authorizations

The 2024 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.


	2024	2023	2022	2021	2020
Number of shares
Number of shares	118 640 150	118 425 771	118 425 771	118 425 771	118 425 771
Outstanding shares
At year-end	118 594 911	118 391 092	118 413 303	118 418 184	118 414 793
Average	118 522 308	118 375 769	118 405 657	118 408 223	118 378 269

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	-0.53	1.45	1.59	2.46	0.80
Diluted	-0.53	1.45	1.59	2.46	0.80
Equity per share, EUR	10.95	13.62	14.52	15.38	13.73

Share price performance and trading volumes
NASDAQ Helsinki
Highest price of share, EUR	22.34	30.58	27.94	30.46	31.32
Lowest price of share, EUR	16.37	19.16	21.06	25.42	17.26
Average price of share, EUR	18.78	24.77	24.86	27.26	24.42
Turnover, number of shares	62 977 285	56 862 211	62 036 948	78 772 407	77 150 210
Turnover, %	53.0	48.0	52.4	66.5	65.1


	2024	2023	2022	2021	2020
Market capitalization, EUR million	2 019.3	2 550.9	3 140.7	3 254.3	3 180.9

Dividends 1)
Dividend, EUR 1 000	177 892	174 035	171 699	165 785	156 308
Dividend per share, EUR	1.50	1.47	1.45	1.40	1.32
Payout ratio, %	-283.3	101.1	91.0	56.8	165.3

Price-weighted ratios
NASDAQ Helsinki
Price per earnings ratio (P/E)	-32	15	17	11	34
Dividend yield, %	8.8	6.8	5.5	5.1	4.9

1) For 2024, distribution of dividend and/or return of capital .

Major shareholders on 31 December 2024


	Shares	%
1 Silchester International Investors LLP 1)	17 845 007	15.0
2 Solidium Oy	12 857 918	10.8
3 Incentive Investment Funds ICAV 2)	6 041 221	5.1
4 Ilmarinen Mutual Pension Insurance Company	2 790 879	2.4
5 Cevian Capital Partners Limited	2 372 834	2.0
6 Elo Mutual Pension Insurance Company	1 676 000	1.4
7 The State Pension fund	1 400 000	1.2
8 Nordea Life Assurance Finland Ltd.	1 093 536	0.9
9 Society of Swedish Literature in Finland	590 800	0.5
10 OP-Henkivakuutus Ltd.	581 434	0.5
Top 10 shareholders total	47 249 629	39.8
- of which nominee registered	23 886 228	20.1

Nominee registered other	36 928 010	31.1
Others	34 462 511	29.0
Total	118 640 150	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.

1) On 23 November 2024, Silchester International Investors LLP announced that its holding has increased to 17 845 007 shares, representing 15.04% of

the total number of shares.

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	28 515	49.5%	1 272 213	1.1%
101–1 000	24 839	42.7%	8 641 770	7.3%
1 001–10 000	4 475	7.7%	11 152 015	9.4%
10 001–100 000	240	0.4%	6 306 797	5.3%
100 001–1 000 000	38	0.1%	8 815 338	7.4%
1 000 001–	10	—%	82 452 017	69.5%

Based on the ownership records of Euroclear Finland Oy.

Shareholder distribution

The distributable funds of the parent company amount to EUR 1 299.7 million, of which net profit for 2024

amounts to EUR 56.2 million. The Board of Directors proposes to the Annual General Meeting that, based on the

balance sheet to be adopted for the financial year which ended 31 December 2024, a total amount of EUR 1.50

per share would be distributed from the distributable funds of the company either as dividend from retained

earnings or as distribution of funds from the reserve for invested unrestricted equity or as a combination of

these. The Board of Directors would, when implementing the distribution, be authorized to decide whether and

to what extent the distribution is made as dividend from retained earnings and whether and to what extent the

distribution is made from the reserve for invested unrestricted equity, and the company will publish such

decisions of the Board separately. The distribution of funds would be implemented in two instalments as follows:

• The first instalment of EUR 0.75 per share in aggregate shall be paid to shareholders who on the record

date for the first instalment on 27 March 2025 are registered in the shareholders’ register maintained by

Euroclear Finland Oy or the registers maintained by Euroclear Sweden AB or Verdipapirsentralen ASA

(VPS).

• The second instalment of EUR 0.75 per share in aggregate shall be paid to shareholders who on the

record date for the second instalment on 23 September 2025 are registered in the shareholders’ register

maintained by Euroclear Finland Oy or the registers maintained by Euroclear Sweden AB or

Verdipapirsentralen ASA (VPS).

The proposed shareholder distribution does not endanger the solvency of the company.

For 2024, distribution of dividend and/or return of capital

Full-year outlook for 2025

Tietoevry expects its organic1) growth to be in the range of -3% to +1% (revenue in 2024: EUR 2 802.6 million).

The company estimates its full-year adjusted operating margin2) (adjusted EBITA3)) to be 12.0–13.0% (12.3% in

2024).

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, amortization of acquisition-related intangible assets and goodwill impairment.

Financial calendar 2025

25 MarchAnnual General Meeting

Tietoevry will publish three interim reports in 2025:

29 AprilInterim report 1/2025 (9:00 a.m. EET)

22 JulyHalf-year report 2025 (9:00 a.m. EET)

23 OctoberInterim report 3/2025 (9:00 a.m. EET)

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 accounting standards 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 accounting standards 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 accounting

standards and, therefore, they are considered non-IFRS accounting standards measures, which should not be

viewed in isolation or as a substitute to the IFRS accounting standards 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, and goodwill impairment
Adjusted earnings per share	=	Weighted average number of shares

Adjustment items	=	Restructuring costs + capital gains/losses + impairment charges + other items affecting comparability
Adjustment items	=

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)	* 100

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)	* 100

Equity ratio, %	=	Total equity	* 100
Equity ratio, %	=	Total assets – advance payments	* 100

Interest-bearing net debt	=	Interest-bearing liabilities – interest-bearing receivables – cash and cash equivalents

EBITDA	=	Operating profit (EBIT) + Depreciation + Amortization + Impairment

Net debt/EBITDA	=	Interest-bearing net debt
Net debt/EBITDA	=	EBITDA (12-month average)

Gearing, %	=	Interest-bearing net debt	* 100
Gearing, %	=	Total equity	* 100

Adjusted operating profit (EBITA) by segment


EUR million	2024	2023	Change %
Tietoevry Create	100.1	114.6	-13
Tietoevry Banking	72.0	68.9	5
Tietoevry Care	68.2	70.2	-3
Tietoevry Industry	39.4	43.4	-9
Tietoevry Tech Services	88.7	85.7	4
Non-allocated costs	-23.7	-24.0	-1
Adjusted operating profit (EBITA)	344.7	358.7	-4

Adjusted operating margin (EBITA) by segment


%	2024	2023	Change pp
Tietoevry Create	12.0	13.4	-1
Tietoevry Banking	12.4	12.1	0
Tietoevry Care	29.5	30.1	-1
Tietoevry Industry	15.0	16.5	-2
Tietoevry Tech Services	8.9	8.0	1
Adjusted operating margin (EBITA)	12.3	12.6	-0

Reconciliation of adjusted operating profit (EBITA)


EUR million	2024	2023
Operating profit (EBIT)	29.8	255.6
+ Amortization of intangible assets recognized at fair value from acquisitions	43.8	41.8
+ Goodwill impairment loss1)	200.0	—
Adjustment items:
- Capital gains2)	-4.4	-6.9
+ Strategic reviews	13.3	32.3
+/- Other M&A related items	0.5	1.5
+ Restructuring costs	32.5	11.1
+ Tietoevry Tech Services performance improvement programme	17.1	15.1
+ War in Ukraine and exit from Russia	2.4	3.2
+ Ransomware attack3)	1.5	—
+/- Other items4)	8.2	4.9
Adjusted operating profit (EBITA)	344.7	358.7

1) For more information, see note 14.

2) Capital gains include a gain on the sale of Tietoevry's share in Buypass AS in 2024 and gain on the sale of property, plant and equipment in 2023. See

also notes 7 and 29.

3) For more information, see note 6.

4) Include defined benefit pension costs related to certain amendments, impairment losses (except goodwill impairment) and other minor non-

recurring items. See also notes 5 and 13.

Sustainability

Statement

General information 37

Environment 60

Social78

Governance 97

Entity specific topics102

Appendices107

87%

Reduction in GHG emissions in own

operations (scope 1 & 2) since 2020

34%

New female hires

97%

Employees trained in Responsible AI

General

disclosures

Basis for preparation38

Governance40

Strategy43

Material impacts, risks and opportunities

and their interaction with strategy and

business model56

Basis for preparation

Basic information

Tietoevry’s business encompasses software, data and digital engineering, as well as managed services and

transformation. The company also offers related capabilities to support customers’ business renewal, innovation

and efficient operations. To capture the momentum of the cloud-native software market, Tietoevry’s five

specialized end-to-end businesses have full operational responsibility, including for the go-to-market and

service portfolio, as well as for investments and partnerships to drive scale and expansion. These specialized

businesses are Tietoevry Create, Tietoevry Banking, Tietoevry Care, Tietoevry Industry and Tietoevry Tech

Services, and they are supported by group functions organized in Corporate Business Services.

General basis for preparation of Sustainability Statement (BP-1)

Tietoevry’s Sustainability Statement has been prepared on a consolidated basis with the same scope as the

company’s Financial Statements. The reporting covers the entire Group (unless otherwise stated in the disclosed

information), including all the companies in which the Group directly or indirectly holds more than 50% of the

votes. The Sustainability Statement covers the company’s upstream and downstream value chain in relation to

material impacts, risks and opportunities identified through the double materiality assessment. The reporting

period is from 1 January to 31 December 2024. Comparative period data in the Sustainability Statement has not

been externally assured.

Tietoevry’s Sustainability Statement does not address Chapter 7, Section 22(1), paragraph 2 of the Accounting

Act regarding the marking of the Group’s Sustainability Statement with XBRL digital sustainability tags. This is due

to the inability of companies to comply with this provision in the absence of the ESEF Regulation or other relevant

European Union legislation.

Tietoevry has not used the option to omit a specific piece of information corresponding to intellectual property,

know-how or the results of innovation in its 2024 Sustainability Statement.

Disclosures in relation to specific circumstances (BP-2)

Time horizons

Tietoevry’s double materiality assessment was informed by the requirements of the European Sustainability

Reporting Standard (ESRS), particularly ESRS 1, which outlines the time horizons and key considerations for

materiality assessments. For the financial year 2024, Tietoevry has applied the time horizon 0-5 years for all

assessed topics. No material impacts, risks nor opportunities (IROs) with a longer time horizon were identified

during the assessment. This decision reflects the company’s existing practices, as longer time horizons have not

been commonly used in financial or operational planning. However, in the assessment of climate-related risks

and opportunities, the company also considered the time horizons outlined in its Task Force on Climate-related

Financial Disclosures (TCFD) analysis: short-term (0–2 years), medium-term (2–7 years), and long-term (7–30

years).

When revisiting the double materiality assessment during the 2025 financial year, Tietoevry will ensure further

alignment with ESRS requirements related to time horizons and will expand to a more forward-looking approach.

This will ensure a perspective that addresses both immediate and long-term impacts, risks and opportunities.

Value chain estimations

Tietoevry's scope 3 GHG emission data is primarily derived from estimations. For the largest scope 3 categories –

Purchased Goods and Services and Capital Goods – emissions are calculated using spend-based methodology.

This approach relies on financial data and generalized emission factors for spending categories rather than

precise emission data. Detailed descriptions of the GHG emission calculation methodologies and use of

estimations for all categories can be found in E1-4.

Sources of estimation and outcome uncertainty

The spend-based methodology used in scope 3 GHG emission calculations includes uncertainties that arise from

the use of average emission factors and applying them to Tietoevry’s spend data,

The metric ‘number of cases where Tietoevry has received fines from data protection authorities related to GDPR

non-compliance per year’, which is used to measure performance against the target of Zero GDPR-related fines

imposed by data protection authorities, is subject to outcome uncertainty due to the measurement techniques

used. Performance is tracked using the CMS.Law GDPR Enforcement Tracker, which provides an overview of

fines and penalties imposed by EU data protection authorities under the General Data Protection Regulation

(GDPR). As a result, the scope of the target is limited to cases recorded in this register.

Tietoevry measures performance against its work-life balance target – keeping overtime below 3% of average

normal working hours –using the metric ‘average percentage of overtime hours for all employees per year’.

However, the reliability of this metric is influenced by data availability challenges arising from variations in

employment contract types and local legislative differences.

Changes in preparation or presentation of sustainability information

Implementing the EU Corporate Sustainability Reporting Directive (CSRD) and reporting according to the

requirements of the ESRS have impacted metrics and targets specifically in relation to the qualitative

characteristics in ESRS 1. Redefinitions of metrics and targets are outlined in each of the topical standards in the

company’s Sustainability Statement. Comparative figures have not been disclosed, since that has not been

applicable to any disclosures.

Reporting errors in prior periods

In the EU Taxonomy report, the comparative eligible revenue has been restated from 20% to 19%, equivalent to a

change from EUR 575.6 million to EUR 535.6 million. A reassessment of one of the related offerings revealed that

it does not fully meet the description of the economic activity 5.5 ‘Product-as-a-service and other circular use-

and result-oriented service models' under the environmental objective 'Transition to circular economy'.

Disclosures stemming from other legislation or generally accepted sustainability reporting

pronouncements

Tietoevry’s Sustainability Statement 2024 does not include disclosures stemming from other legislation or

generally accepted sustainability reporting pronouncements. However, information on how Tietoevry complies

with The Norwegian Transparency Act (Norwegian: “Åpenhetsloven”) is included in the section ‘Additional

information to the Annual Report’. Additionally, a GRI content index with cross references to relevant disclosures

in the Sustainability Statement is also provided in the ‘Additional information’ section.

Incorporation by reference

No information in the Sustainability Statement has been incorporated by reference, except for the following

disclosures: BP-2 11 (a), (b) and (c) and BP 2-13 (a), (b) and (c) for which information is provided in more detail in

E1-4.

Governance

The role of the administrative, management and supervisory bodies (GOV-1)

Board of Directors

In addition to other obligations, the Board of Directors (the Board) is also responsible for guiding the company’s

sustainability strategy, overseeing sustainability target setting and approving the company’s Sustainability

Statement. It is also responsible for assessing the effectiveness of Tietoevry’s sustainability due diligence,

evaluating associated impacts, risks and opportunities, as well as reviewing the implementation and

effectiveness of actions. Furthermore, the Board is responsible for the business conduct of the company,

including ethical conduct.

Board members are expected to have the necessary expertise and qualifications to fulfil their roles effectively.

The Board also leverages sustainability skills and expertise from Tietoevry’s Group Sustainability function, which

has a deep understanding of the company’s material impacts, risks and opportunities. Group Sustainability also

regularly provides training to the Board on sustainability issues. Jointly, the Board as an entity possesses

expertise related to business conduct and also leverages skills from Tietoevry’s Group Legal and Compliance, as

well as Corporate Risk Management and Internal Audit.

During 2024, the Board addressed all of Tietoevry’s material impacts, risks and opportunities through review of

the company’s double materiality assessment. The Board further addressed specific impacts, risks and

opportunities related to cybersecurity, circularity, gender equality and equal pay for work of equal value,

diversity, climate mitigation and adaptation, energy, corporate culture, corruption and bribery prevention,

incidents, and privacy in relation to due diligence activities and the outcome of these activities during the year.

Tietoevry’s Board comprises two executive members and eight non-executive members. Of the Board members,

30% were female and 70% male during 2024, with a gender diversity ratio of 40% (average ratio of female to

male). The percentage of independent Board members was 80% at the end of 2024. Tietoevry personnel

elected two members and two deputy members of the Board, all of whom are male.

Board Committees

The Board is assisted by two permanent committees that prepare matters for which the Board is responsible.

The Board defines the charters of the committees and decides on their composition. The Board also establishes

temporary subgroups whenever these are needed for a specific topic. The entire Board remains responsible for

the duties assigned to the permanent committees or temporary subgroups.

The Board’s Audit and Risk Committee (ARC) members bring specialized knowledge and experience relevant to

the committee’s responsibilities and the company’s operating environment. Since the committee also oversees

statutory audits, at least one ARC member must have expertise in accounting or auditing.

The ARC ensures compliance with legislation and regulation, oversees the sustainability reporting process, as

well as monitors ethical and legal business practices in alignment with Tietoevry’s policies and rules. This

involves receiving regular reports on ethical conduct matters from the General Counsel, the Whistleblowing Unit,

and Internal Audit. The ARC reviews the Report of the Board of Directors – including the Sustainability Statement

and the Corporate Governance Statement – and monitors sustainability reporting-related risks and controls.

The Board’s Remuneration Committee (RC) prepares a compensation proposal concerning the CEO and his

immediate subordinates, and the principles of personnel compensation, including applicable ESG targets. The RC

monitors the targets and the implementation of the compensation schemes, performance assessment and

compensation determination and ensures that the targets set for earning the bonuses defined in the

compensation scheme are met. The RC also prepares the Remuneration Report.

Shareholders’ Nomination Board (SNB)

The SNB is a body of shareholders responsible for preparing the proposals to the Annual General Meeting (AGM)

for the election and remuneration of the members of the Board (including remuneration of employee

representatives). The SNB ensures the Board’s diversity and professional competence, including its expertise in

sustainability. The SNB also makes sure the Board members bring diverse occupational and professional

backgrounds.

Chief Executive Officer and Group Executive Management

Tietoevry’s CEO is appointed by the Board and is responsible for the Group’s operative management, internal

efficiency and quality in accordance with applicable legislation and regulation, and following the guidance of the

Board, including the implementation of sustainability measures. Moreover, the CEO shall report to the Board and

shall supply the Board with the information necessary for the performance of the duties of its members. The

Board ensures that the CEO has the necessary expertise to fulfil all its responsibilities, including these, in

compliance with legal and internal standards.

The CEO is assisted by Group Executive Management (GEM), which includes the heads of Tietoevry’s businesses

as well as the Head of Human Resources, the Head of Strategy and the Chief Financial Officer (CFO). The GEM

reviews and approves sustainability-related matters for Group Sustainability to present to the Board. The GEM

also oversees the implementation of the approved sustainability measures and related impacts, risks and

opportunities.

Group Sustainability and the Sustainability Steering Group

Tietoevry’s strategic and operational sustainability work is driven by Group Sustainability, led by the Chief

Sustainability Officer (CSO), who reports to the CFO. The CSO ensures that sustainability policies and processes

are aligned with legislation and with long-term sustainability plans and related targets.

Tietoevry’s Sustainability Steering Group (SSG), chaired by the CSO, oversees the work carried out by Group

Sustainability. The SSG, which meets every two months, includes representatives from Tietoevry’s businesses

and functions, as well as members of the GEM. The SSG approves the company’s long-term sustainability plans

and related targets before the GEM conducts final reviews and approvals. Major strategic initiatives require final

approval from the CEO.

Information provided to and sustainability matters addressed by the undertaking's

administrative, management and supervisory bodies (GOV-2)

Group Sustainability informs the Board on Tietoevry’s due diligence framework and the results and effectiveness

thereof, including performance against targets related to the company’s material impacts, risks and

opportunities. Group Sustainability also continuously provides the ARC with reports on risks and controls related

to sustainability reporting. Reports on whistleblowing incidents are delivered to the ARC twice a year, while any

topics that are urgent or of critical concern can be reported on an ad hoc basis.

During 2024, Group Sustainability provided the Board with updates on two occasions. The Board was provided

with the result of the company’s double materiality assessment i.e. Tietoevry’s material IROs, as well as on

sustainability due diligence activities, including the status in relation to the CSRD/ESRS implementation.

Furthermore, the Board was provided with a review of the effectiveness of Tietoevry’s sustainability due

diligence activities.

During the year, the ARC was provided with updates from Group Sustainability on four occasions, covering:

• Review of reporting according to the Non-Financial Reporting Directive and EU Taxonomy

• Review of interim assurance of double materiality assessment

• Internal quality control and risk management system regarding the sustainability reporting process

• Review of the Sustainability Statement draft prepared according to the CSRD, including the EU

Taxonomy report

Integration of sustainability-related performance in incentive schemes (GOV-3)

Tietoevry’s remuneration structure for the CEO and GEM is designed to support the company’s strategic goal of

driving growth and sustainable value creation for shareholders. The short-term incentive (STI) plan is focused on

driving financial and strategic performance year over year, whereas the long-term incentive (LTI) plan aims to

drive and reward value creation over a three-year period.

For both incentive plans, a set of measures and targets are defined to reflect the market context, strategic

objectives, business priorities and related financial results.

The main objectives of the LTI plan at Tietoevry are to align employees’ interests with those of shareholders,

retain management and key employees, and offer a competitive total reward package. Tietoevry introduced

Environmental, Social and Governance (ESG) measures in the LTI plan in 2022, with the first payout scheduled

for 2025, and has continued this practice since then by increasing the weighting of aggregated measures from

10% to 20% in 2023. The ESG focus in the LTI plan has remained consistent. A 10% weight is assigned to the

SBT-approved GHG reduction target, aiming for a 90% reduction from 2020 base line by 2026 and 10% weight is

allocated to the gender diversity target aiming to increase share of female recruits.

The Board approves the implementation of the incentive plans each year, including approval for measures,

targets as well as terms and conditions. At the end of each year, the Board reviews the performance against the

plans and approves the payout based on the performance versus plan and versus the overall performance of

Tietoevry. The plans described above do not apply to members of the Board.

Statement on due diligence (GOV-4)

Tietoevry conducts ongoing sustainability due diligence to assess impacts, risks and opportunities, aiming to

mitigate harm and drive business opportunities. The company tracks progress continuously and addresses any

significant negative impacts directly or collaboratively. Tietoevry prioritizes engagement with affected

stakeholders, including vulnerable groups, as a vital part of evaluating its due diligence efforts.

Tietoevry’s sustainability due diligence framework ensures that the company manages all its material IROs. A

mapping that explains how and where the main aspects and steps of the due diligence are reflected in the

Sustainability Statement can be found below.


Core elements of due diligence	Paragraphs in the Sustainability Statement
a) Embedding due diligence in governance, strategy and business model	GOV-1, GOV-2, GOV-3, SBM-3
b) Engaging with affected stakeholders in all key steps of the due diligence	GOV-2, SBM-2, IRO-1, MDR-P, MDR-T
c) Identifying and assessing adverse impacts	IRO-1, SBM-3, MDR-A
d) Taking actions to address those adverse impacts	MDR-A
e) Tracking the effectiveness of these efforts and communication	MDR-T

Risk management and internal controls over sustainability reporting (GOV-5)

Tietoevry’s sustainability reporting complies with the company’s group-level principles and processes for

external reporting, risk management and internal control. Sustainability reporting is centrally managed by Group

Sustainability within Corporate Business Services (CBS), in close collaboration with the financial reporting team

and other relevant support functions, as well as the businesses.

In sustainability reporting, internal control is based on risk identification, analysis and a focus on the most

material risks identified. This approach is consistent with Tietoevry’s internal controls framework.

The main risks in Tietoevry’s sustainability reporting process are data completeness and accuracy. To mitigate

these risks, a robust governance model has been established that clearly defines roles and responsibilities,

ensuring accountability in data collection and reporting. Tietoevry has included the capabilities required to

produce the disclosed information in the Group’s common business processes, which all the businesses and

support functions within CBS follow in their operations.

The owners of business processes at Tietoevry ensure that the company’s processes transparently generate the

necessary information for disclosure. Responsibility for the accuracy of this information, adherence to reporting

schedules, and the provision of materials to the reporting team is assigned to specific roles within the businesses

and CBS, as outlined in the company’s governance model. The existing controls have been adapted and new

controls have been added as applicable in 2024, to ensure that internal controls are operating effectively in time

for the first-year application of reporting according to CSRD/ESRS.

The findings of the risk assessment and internal controls are integrated into the sustainability reporting process

through regular reviews and updates of the internal controls. Group Sustainability regularly informs the SSG

about sustainability reporting risks and controls, and reports to the ARC to ensure accountability and oversight.

Strategy

Strategy, business model and value chain (SBM-1)

Specialization forms the cornerstone of Tietoevry’s strategy. This specialization strategy enables the company’s

distinct software and technology services to be among the best in the market. The software businesses aim to

optimize and digitalize customers’ core processes. Each specialized business enables processes for the

customer that are often critical for societal functioning and advancement. The specialized software businesses

of Tietoevry are:

• Tietoevry Care: At the core of healthcare and welfare services, enabling customers to deliver optimized,

intelligent and personalized services to citizens. Solutions enable customers to optimize the usage of

care resources and secure access to citizen data through open standards and interoperable practices

• Tietoevry Banking: Software and services that enable speed and efficiency for core financial services

industry processes like Core Banking, Cards, Credit and Wealth management. In addition to enabling

critical services for societal functioning through software-based platforms, the solutions further enable

financial crime prevention – a critical aspect of sustainable societies

• Tietoevry Industry: Software and data services that enable efficient citizen services, digital value chains

and production – all contributing to a well-functioning industry and society

Tietoevry’s specialized services businesses support customers in driving competitiveness, efficiency and

innovation:

• Tietoevry Create: Advancing digital products and services for customers to deliver superior experiences

and efficient operations

• Tietoevry Tech Services: Digitalizing customers’ operations with technology to enable their strategy and

business agenda. This business also provides the secure technology backbone with its infrastructure and

data platforms – a key aspect of societal functioning

The main purpose across all the businesses at Tietoevry is to realize technology-led solutions that improve

competitiveness, efficiency and innovation for customers across industries.

The company’s customers are in sectors such as financial services, retail, telecom, healthcare, welfare, pulp and

paper, education, energy, utilities and the public sector. Tietoevry serves enterprises and public sector clients in

around 90 countries, with over 80% of the company’s revenue coming from Finland, Sweden and Norway.

Tietoevry’s strategy does not include products or services that would be banned in certain markets. Additionally,

the company is not active, as defined by ESRS 2, in sectors associated with fossil fuels, such as coal, oil, gas,

chemicals production, controversial weapons, or tobacco cultivation or production.

A breakdown of revenue per segment, as included in the company’s Financial Statements, as well as headcount

of employees by geographical areas can be found below. No additional significant ESRS sectors beyond the ones

reflected in the segment revenue table are applicable for Tietoevry.

Disaggregation of revenue by segment


EUR million	2024	2023	Change %
Tietoevry Create	836.9	852.3	-2
Tietoevry Banking	580.4	567.2	2
Tietoevry Care	231.3	232.8	-1
Tietoevry Industry	263.7	262.6	0
Tietoevry Tech Services	1 000.7	1 072.7	-7
Eliminations	-110.4	-136.1	-19
Group total	2 802.6	2 851.4	-2

In 2024, comparative information for segment revenue was recast to reflect minor changes between segments arising due to structural changes.

Group numbers remained unchanged.

Headcount of employees per geographical area


Geographical area	2024	2023
The Nordic countries	10 710	11 255
Europe other	7 930	8 332
Asia	5 218	5 433
North and South America	234	278
Total	24 092	25 298

Value chain

Tietoevry’s value chain includes all activities involved in delivering IT services, industry-specific software

solutions and technology to customers. This involves both upstream activities (suppliers and partners) and

downstream activities (customers and end-users).

Tietoevry’s upstream value chain focuses on the key inputs and partnerships necessary for delivering its

services. This includes collaboration with global hardware and IT infrastructure providers, such as server and

cloud suppliers, which are essential for running IT services, including cloud computing and data management

solutions. The company also integrates third-party software into its offerings, and partners with vendors to

provide the latest technologies, development tools and software platforms (e.g. AI tools and enterprise resource

planning software). Additionally, as a knowledge-based company, skilled employees and consultants are critical

upstream resources. Tietoevry engages a network of professionals, including software developers, data experts,

industry experts and IT specialists, to deliver its services. Partnerships with educational institutions and external

staffing agencies also form part of this value-chain segment.

Tietoevry’s downstream value chain is centred on delivering software products, digital services and technology

solutions to its customers and end-users. Tietoevry offers industry-specific software, custom solutions, cloud

services, data management, cybersecurity and consulting services to enhance customer operations and to

support customers’ business agenda and performance. Additionally, Tietoevry plays a key role in enabling end-

to-end digital transformation for its customers. The company’s downstream services include advisory,

solutioning, project management, design, software/data engineering, application services, implementation of

software for customers, software support and managed services across software/SaaS, applications and

infrastructure, and further end-user support. The company also offers managed outsourcing services, operating

and managing IT infrastructure and applications enabling customers to focus on their core operations.

Tietoevry operates at the intersection of business and technology – applying technology to customers’ business

benefit. The company connects upstream technology suppliers – such as hardware, cloud infrastructure and

software providers – with the customers/industries it serves. Acting as both an integrator and an innovator,

Tietoevry utilizes upstream technologies in its software, system integration, and consulting and managed

services solutions for its downstream customers.

Inputs

Tietoevry’s key inputs are human capital, technology infrastructure, software and partnerships. These are

developed with efficient talent management and sustainable sourcing practices.

The company’s workforce is essential for delivering services and driving innovation. This includes specialized

capabilities in design, digital consulting, system integration, managed services, cloud, data/AI, software

development and cybersecurity. Moreover, Tietoevry depends on cloud technologies and hardware from key

suppliers, encompassing servers, networking equipment and data centre infrastructure. A diverse range of third-

party software development tools, platforms and data/AI technologies support the company’s software

development efforts.

Strategic partnerships with technology providers, universities and research institutions enable Tietoevry to stay

at the forefront of innovation and adopt the latest advancements in technology. Strong supplier relationships for

hardware and software ensure access to the best technologies and tools.

To secure and develop these inputs, Tietoevry emphasizes competitive talent management practices. By

recruiting top talent from global markets and collaborating with educational institutions and forming

partnerships, the company maintains a steady pipeline of qualified professionals. Ongoing professional

development is a priority, with training and certification programmes that keep employees adept in the latest

technologies.

In terms of technology sourcing, Tietoevry prioritizes sustainable practices and environmentally certified

hardware and partners that align with the company’s sustainability goals. Regarding innovation, the company

invests in research and development of its software products, and advancing technology solutions with its

customers.

Security and risk management are considered in all sourcing practices and customer deliveries. Tietoevry

implements stringent cybersecurity measures to protect data and ensure compliance with regulations such as

the GDPR. Additionally, the company carefully vets its strategic suppliers and partners to uphold ethical and

sustainability standards throughout its supply chain.

Outputs

Tietoevry’s outputs include software products, services and solutions delivered to customers. These outputs

translate into both current and future benefits in terms of competitiveness, efficiency and innovation for

customers. Key outputs include digital transformation, cloud services and data/AI-enabled services, and

industry-specific software solutions and platforms.

Current and expected customer benefits include enhanced operational efficiency, competitiveness and

innovation. Additionally, customers are supported in their sustainability efforts with software that optimizes core

processes and solutions that support their overall business agenda, with sustainability embedded.

For investors, Tietoevry’s outputs are centred around the company’s financial and sustainability performance.

Furthermore, outputs relate to the ability to adapt to market trends and technological advancements. Key

outputs include revenue growth, earnings, cash flow and investment in technologies like AI, automation and

cloud solutions, positioning the company for continued growth in a digital-first economy. Moreover, Tietoevry’s

sustainable business practices are becoming an increasingly important factor for investors and can enhance the

company’s attractiveness to responsible investors.

The immediate and expected outputs for Tietoevry’s employees are centred around professional development,

including upskilling and reskilling, employee well-being, and diversity and inclusion initiatives. As a knowledge-

based company, Tietoevry’s success is closely tied to the engagement and development of its employees.

Current and expected benefits for employees include continuous learning, job satisfaction and career

development. These benefits allow employees to advance within the company and contribute to innovative

projects. Another key benefit is diversity and inclusion. By fostering an inclusive culture, Tietoevry helps

employees to feel valued and respected. This supports engagement and productivity, contributing to products

and services that meet the needs of current and future customers.

Tietoevry’s impact on society extends beyond its customers and employees. The company contributes to

communities through initiatives such as digital inclusion projects. Current and expected outcomes for society

include improving quality of life by enabling essential services like healthcare, education and government

services through digital platforms. Additional benefits include contributions to global efforts to mitigate climate

change through energy-efficient operations and the use of renewable energy.

Tietoevry interacts with regulators, particularly regarding data privacy, cybersecurity and sustainability

regulation. The company ensures compliance with regulation such as GDPR and actively participates in policy

discussions around digital transformation. Key outputs include compliance with regulation, which builds trust

with policy makers. This results in immediate and anticipated benefits for regulators by supporting the

enforcement of data protection, cybersecurity, and sustainability standards, helping to ensure the safety and

security of digital ecosystems.

Elements of strategy that relate to or impact sustainability matters

Sustainability is embedded in Tietoevry’s strategy and day-to-day practices. Through innovative technologies,

transparent sustainability reporting and responsible digital transformation, the company addresses key

challenges while creating long-term stakeholder value. Below is an overview of the sustainability-related

elements in Tietoevry's practices, including key challenges and critical solutions.

Tietoevry is committed to reducing its carbon footprint, with a focus on energy efficiency and digital solutions.

The company strives towards low carbon data centres, cloud solutions and energy-efficient infrastructure as

part of its operations. The growing demand for data and cloud services requires a significant amount of energy,

making it challenging to maintain low carbon emissions while expanding digital infrastructure. Tietoevry is using

renewable energy to power its data centres, exploring new ways to reduce energy consumption across its

services, and continuously innovating in digital solutions to balance sustainability with business growth.

Strong governance practices and compliance with sustainability regulations – such as the CSRD, GDPR, EU AI

Act, the Norwegian Transparency Act and the upcoming EU Corporate Sustainability Due Diligence Directive –

are central in Tietoevry’s performance and in maintaining stakeholder trust.

Tietoevry prioritizes diversity, equity and inclusion (DEI) within its workforce. The company also aim to ensure

digital inclusion through its services and products in the communities it serves. Attracting a diverse talent pool

and fostering equity and inclusion in a fast-changing industry with a talent shortage are significant challenges. It

also includes ensuring equal access to technology across regions with different socioeconomic conditions.

Tietoevry is thus investing in employee development programmes and diversity initiatives within the societies in

which the company operates.

The company is constantly improving its supplier engagement practices to ensure responsible business practices

within its supply chain, while also performing a range of assessments and follow-up activities. Tietoevry strongly

encourages suppliers to set Science Based Targets (SBT) for full scopes as defined by the Greenhouse Gas

Protocol Corporate Standard, and to have these verified by the Science Based Target initiative (SBTi). Tietoevry

includes climate-related targets and performance as part of its supplier selection criteria. This means that

suppliers who share the company’s ambitions related to carbon reduction will have higher success in winning

business from Tietoevry.

Sustainability-related goals for key products and services, customer categories, geographical areas and

relationships with stakeholders

Tietoevry's five specialized end-to-end businesses are accountable for achieving the Group’s sustainability

targets. However, goals related to key products and service groups, customer categories, geographical areas

and stakeholder relationships have not been assessed, as such goals have not been established at the Group

level. Business-specific goals are available for some products and services.

Assessment of current significant products and (or) services, and significant markets and customer groups,

in relation to sustainability-related goals

Alongside the annual EU taxonomy alignment assessment, Tietoevry has conducted an inventory of its

sustainability-related offerings. The results provided a view into how these offerings contribute to the company’s

sustainability goals. The assessment, while focusing on the climate and environment, revealed that sustainable

technology offerings exist across the company. Revenue linked to sustainable technologies was identified in all

business areas. These offerings generally fall into two categories: those developed to improve customers’

sustainability performance, and those contributing to sustainability, even if not specifically designed for that

purpose. The findings of the double materiality assessment indicate correlations between Tietoevry’s current

offerings and the identified material topics, as well as with the company’s sustainability-related goals. However,

these correlations require further analysis and refinement to effectively guide future actions. In particular, during

2025 greater emphasis will be placed on assessing the topics where Tietoevry has identified actual and potential

positive impacts and financial opportunities. The company aims to develop concrete targets in these areas.

Interests and views of stakeholders (SBM-2)

The company aims to develop its business operations, products and services that contribute to innovation,

sustainability, compliance and stakeholder value. Through continuous engagement and open dialogue, Tietoevry

adapts its operations to meet the evolving needs of its stakeholders.

Tietoevry’s stakeholder engagement spans a wide spectrum of affected stakeholders and users of the

company’s Sustainability Statement, such as employees and other personnel, customers and end-users,

investors and shareholders, suppliers, business partners, potential employees and students. These stakeholders

are directly and indirectly affected by Tietoevry’s operations and activities.

The Board oversees the company’s ESG practices, while Group Sustainability in collaboration with relevant

company functions, manages and coordinates stakeholder dialogue.

Outcome

Dialogue with stakeholders informs Tietoevry’s action plans for managing impacts, risks and opportunities.

Stakeholder perspectives are incorporated into sustainability reporting and management reports at Tietoevry,

offering feedback on the company's overall business performance. In response to employee feedback, the

company has increased transparency around skills and staffing, enhanced support mechanisms for remote

working, and revitalized its learning platforms. Customer feedback has driven a renewed emphasis on the quality

of service delivery, fostering a more customer-centric culture and enhancing communication methods.

To keep investors and shareholders informed, Tietoevry provides regular updates on its overall business

performance, objectives and key initiatives. Collaborations with suppliers and business partners are aligned to

focus on shared innovation and business objectives including sustainability. In efforts to attract potential

employees and students, Tietoevry has refined its digital outreach and incorporated innovative technologies into

its recruitment processes.

Tietoevry periodically reviews its strategy in order to be competitive in the market and create value for all its

stakeholders, including customers, employees, investors and society at large. The strategy review involves

defining the markets, product/services portfolio choices, capability needs, operating model and financial

outcomes. The strategy is operationalized through yearly operating plans with specific operational and financial

objectives. Actions towards these objectives are reviewed regularly to ensure value creation for all stakeholders.

Tietoevry's approach to stakeholder engagement extends beyond the periodic conduct or validation of the

double materiality assessment. The company is committed to maintaining an ongoing dialogue with stakeholders

throughout the year, ensuring that their insights continually inform and align with Tietoevry's objectives. This

consistent engagement is a cornerstone of the company’s efforts to foster a culture of continuous improvement

and responsiveness to stakeholder needs and aspirations.

The table below presents a summary of Tietoevry’s key stakeholders, type of engagement, key topics and

outcomes of engagement.

Interests and views of stakeholders


Stakeholder	Stakeholder engagement	Key topics	Outcomes
Employees and other personnel	• Frequent employee surveys and quarterly all-hands calls • Collaborations with work councils and unions (European Work Council and other local collaborations) • Implementation of talent management processes • Engaging in development discussions, ongoing dialogue and feedback • Offering learning and development opportunities • Communication tools and forums available for all, such as a social intranet	• Health, safety and well-being • Diversity, equity, and inclusion (DEI) • Competence development and available career paths • Cybersecurity and privacy • Strategy, company direction and financial performance	• Understanding of employee needs and providing a safe workplace environment • Establishing diversity, equity, and inclusion (DEI) initiatives • Offering training programmes and workshops • Fostering a working culture that promotes open dialogue
Customers and end-users	• Customer feedback through experience and satisfaction surveys • Active dialogue and joint planning sessions • Regular innovation initiatives • Customer newsletters, seminars and workshops	• Customer experience • Product/service quality and safety • Sustainability • Innovation and development • Governance and business conduct, including ethics • Human rights • Responsible sourcing and transparency • Cybersecurity and privacy	• Understanding of customer needs • Utilizing feedback for quality improvements • Enhancing customer-centric culture and ways of working • Driving innovation and development
Suppliers and business partners	• Regular meetings on strategic, tactical and operational level, with commercial and technical perspectives • Bilateral supplier relationship • Performance management programmes • Sustainability assessment with major suppliers • Reviews of Supplier Code of Conduct coverage with regular suppliers • Identifying and engaging with emerging partners and ecosystems to accelerate customer value	• Supplier experience • Product/service quality and safety • Sustainability • Innovation and development • Governance and business conduct including ethics • Human rights • Responsible sourcing and transparency • Cybersecurity and privacy	• Collaborating on quality enhancements • Ensuring sustainable sourcing and continuous development through proactive operating models • Continuously assessing supplier sustainability as part of sourcing due diligence
Investors, shareholders and analysts	• Investor meetings and presentations • Close interaction with shareholders in connection with the Annual General Meeting • Regular financial reporting	• Financial performance and developments • Market environment • Company strategy • ESG performance and developments • Risks and opportunities	• Insights on financial performance and position • Clarification of future opportunities, strategy, and ambitions • Communication on risks associated with the market and operations
Potential employees and students	• Virtual Career days and student fairs • Thesis collaborations • Recruitment processes • Graduate programmes and internships • Social media	• Learning and education • Career opportunities • Insights on Tietoevry’s operations • Innovation and sustainability efforts • Diversity, equity, and inclusion (DEI)	• Inclusive recruitment processes • Academic partnerships • Expanding knowledge on Tietoevry's operations and employment opportunities

Material impacts, risks and opportunities and their interaction with strategy and business

model (SBM-3)

Tietoevry's material impacts, risks and opportunities (IRO) have been assessed throughout Tietoevry’s value

chain, including own operations, all value chain workers, and consumers and end-users. The material risks and

opportunities are predominantly rooted in its own operational activities, while the material impacts exert

influence throughout its value chain. The negative impacts are typically situated upstream or within the

company's direct operations. Conversely, the positive impacts are often observed downstream, as well as within

the company's internal operations. The company's material impacts, risks and opportunities do not interact with

its strategy.

Negative impacts and context at Tietoevry

• Climate change mitigation and energy (entire value chain): Energy consumption from Tietoevry’s own

operations and value chain contributes negatively to carbon emissions. Demand for digital services is

growing and as a result energy use will increase, potentially resulting in higher GHG emissions and

resource depletion

• Diversity and gender equality and equal pay for work of equal value, own workforce (own operations):

Unconscious bias in recruitment, promotion and retention, disparities in access to professional

development and training, gaps in pay equity between genders and in minority groups

• Collective bargaining, freedom of association and social dialogue, own workforce and workers in the

value chain (own operations, upstream): Operations across multiple countries with different labour laws,

regulations and practices. Some employees may face barriers to forming or joining unions. Dependence

on global suppliers located in areas with weaker labour regulations also poses a risk of negative impact

on collective bargaining and freedom of association

• Corruption and bribery incidents (entire value chain): As a listed company with global presence and

offerings, Tietoevry is exposed to corruption and bribery risks in own operations. Such incidents may

result in material negative impacts for individuals, legal entities, and societies that the company operates

in. Tietoevry is subject to various anti-corruption legislation which extend responsibility to interactions in

the entire value chain

• AI (entire value chain): Biases and discrimination, privacy concerns and ethical dilemmas, such as

decision-making in critical scenarios. Automation can result in job displacement, causing social

disruption, while training AI models requires significant energy and water, increasing carbon emissions

• Cybersecurity (own operations, downstream): Potential data breaches that lead to individual financial

losses, damage to persons’ reputations, regulatory fines and reputational damage. Disruption of services

can cause negative impacts for customers, their customers and society as a whole

Positive impacts and context at Tietoevry

• Corporate culture (own operations), protection of whistleblowers and corruption and bribery prevention

(entire value chain): Leadership commitment to ethical values, protection of whistleblowers to ensure

anonymity, compliance programmes to prevent corruption and bribery, as well as audits to ensure

adherence to anti-corruption policies, all contribute to a positive corporate culture supporting employee

engagement and innovation

• Secure employment, work-life balance and working time, own workforce (own operations): Career

advancement, including reskilling and upskilling, enabling employees to stay employable. Flexible

arrangements like remote work and flexible hours, enabling effective time management while maintaining

productivity

• Privacy for customers and end-users (downstream): Strict data protection measures and compliance

with regulation, e.g. GDPR, as well as transparency about data collection and usage practices enhance

customer loyalty and satisfaction

• Responsible AI (own operations, downstream): Clear ethical guidelines and training that prioritize and

support human rights, diversity, fairness and transparency, and which foster trust and accountability in

the development and deployment of AI technologies

Risks and context at Tietoevry

• Energy (own operations): The energy-intensive nature of data centres and cloud infrastructure, energy

price volatility, supply chain disruptions and regulatory changes in own operations and supply chain

• Data privacy and cybersecurity (own operations, downstream): Management of critical IT infrastructure

and sensitive data, compliance with data privacy regulations

• Gender equality and equal pay for work of equal value, own workforce (own operations): Under-

representation of female employees in the industry and the company and its leadership, disparities in

compensation

Opportunities and context at Tietoevry

• Climate mitigation (own operations, downstream), climate adaptation (own operations, downstream),

circular economy (own operations, downstream): Offerings contributing to reduced GHG emissions and

waste, circularity of hardware and software assets

• Working conditions, own workforce (own workforce): Promotion of secure employment, healthy working

time and work-life balance reducing costs related to recruitment and retention

• Cybersecurity (own operations, downstream): Providing robust data protection protocols, cyber threat

mitigation practices and the ability to adapt to new types of digital threats

• Responsible AI (own operations, downstream): Ethical AI practices and AI-driven products and services

addressing societal challenges attract customers and enhance trust

Material impacts, risks and opportunities


Source	Topic	Sub-topic	Sub-sub-topic	Negative actual or potential impact	Positive actual or potential impact	Risk	Opportunity
ESRS E1	Climate change	Climate change adaptation
		Climate change mitigation
		Energy
ESRS E5	Circular economy
ESRS S1	Own workforce	Working conditions	Secure employment
			Working time
			Social dialogue
			Freedom of association, the existence of works councils and the information, consultation and participation rights of workers
			Collective bargaining, including rate of workers covered by collective agreements
			Work-life balance
		Equal treatment and opportunities for all	Gender equality and equal pay for work of equal value
		Equal treatment and opportunities for all	Diversity


Source	Topic	Sub-topic	Sub-sub-topic	Negative actual or potential impact	Positive actual or potential impact	Risk	Opportunity
ESRS S2	Workers in the value chain	Working conditions	Freedom of association, the existence of works councils and the information, consultation and participation rights of workers
		Working conditions	Collective bargaining, including rate of workers covered by collective agreements
		Equal treatment and opportunities for all	Gender equality and equal pay for work of equal value
ESRS S4	Consumers and end-users	Information-related impacts for consumers and/or end-users	Privacy
ESRS G1	Business conduct	Corporate culture
		Protection of whistle-blowers
		Corruption and bribery	Prevention and detection including training
			Incidents
Entity specific topics	Cybersecurity
Entity specific topics	Responsible AI

Time horizons related to material impacts

The double materiality process has been informed by the requirements of ESRS and the time horizons used have

been aligned with these standards. This ensures a forward-looking approach that captures both immediate and

long-term impacts, risks and opportunities. However, for the first year of reporting according to the CSRD/ESRS,

Tietoevry has applied one time horizon (0-5 years) when assessing potential negative and positive impacts, and

opportunities and risks. The time horizons will be revisited and made more granular, including the development

of long-term horizons.

The implementation of the double materiality assessment has impacted the way Tietoevry identifies and

assesses its sustainability impacts, risks and opportunities. The requirement to report changes is not applicable

since it is the first year of reporting.

Resilience in strategy and business model to address material impacts, risks and opportunities

Tietoevry’s resilience and competitiveness are derived from adapting to fast-paced technological advancements,

addressing cybersecurity and environmental risks, and positioning the company to leverage opportunities in

digital transformation and sustainability. To address shifts in customer expectations, the company’s strategy

emphasizes continuous innovation in key areas like cloud services, AI and automation.

Tietoevry aims to continuously adapt to emerging sustainability regulations and stakeholder expectations. The

company has several practices to mitigate and manage material impacts and risks. As a technology company,

Tietoevry faces significant risks related to cybersecurity and data privacy. By having robust data protection

protocols, cyber threat mitigation practices and the ability to adapt to new types of digital threats, Tietoevry

ensures resilience in these areas. Resilience in relation to energy consumption is also a critical consideration,

given the rising energy demands of data centres, computing infrastructure and the shift to cloud-based services.

Actions taken by Tietoevry include energy-efficient solutions and measures, including the use of renewable

energy to reduce its carbon footprints. Tietoevry also adapts itself to changing regulation, e.g. by ensuring

compliance with existing and upcoming data protection laws, environmental standards, labour laws and

sustainability legislation.

With the increasing demand for digitalization across sectors, Tietoevry is positioned to take advantage of the

growing need for IT services, AI-based solutions, cloud infrastructure and automation technologies. Tietoevry

can leverage its sustainability efforts by also helping customers to achieve their own ESG goals through some of

Tietoevry’s digital solutions.

Current and anticipated effects on business model, value chain and strategy

Tietoevry’s response to the material impacts has led to several considerations in its business model and strategy:

• Sustainability embedded into operations: The company has integrated ESG factors into its core business

processes, governance structures and supply chain management. This includes adopting responsible

sourcing practices and partnering with suppliers committed to similar sustainability goals

• Energy transition in operations: Tietoevry has committed to reducing its energy consumption and carbon

footprint in own operations by continuing the transition to 100% renewable energy for its data centres

and offices. This move not only reduces environmental risks, but also presents an opportunity to attract

sustainability-focused clients and partners

• Investments in innovation for sustainability: The company is increasing its investments in developing new

products and services. Due to their technology intensity, these services can potentially support the ESG

agenda of the industry and customers. For instance, cloud solutions and AI-driven systems are being

designed to optimize energy use, reduce waste and enable businesses/clients to achieve their

sustainability targets

• Future outlook: Looking forward, Tietoevry plans to continue to adapt to global sustainability standards,

while also anticipating new opportunities arising from emerging technologies like AI. These innovations

will drive further improvements in operational efficiency and the customer experience, while helping

mitigate risks associated with climate change, regulatory shifts and social transformation

Current financial effects of material risks and opportunities

The current financial effects of material risks and opportunities on financial performance have been assessed

based on their estimated impact on revenue and costs. Risks and opportunities are not deemed to have a

material impact on the company’s financial position, nor does the company see significant risks of material

adjustments to the carrying amounts within the next annual reporting period.

Current financial effects of material risks and opportunities


Opportunities	Impact on financial performance and cash flow	Actions taken described under each topic
Climate change mitigation	Revenue for related EU Taxonomy-eligible offerings amounted to EUR 448.4 million. Eligible capital expenditure amounted to EUR 92.0 million and operating expenditure to EUR 18.5 million.	Read more in Climate change and EU Taxonomy
Climate change adaptation	The company has not recognized any revenue for climate change adaptation.	Read more in Climate change
Circular economy	Revenue for related EU Taxonomy-aligned offerings amounted to EUR 7.5 million. Circulation of hardware is anticipated to result in savings.	Read more in Resource use and circular economy, and EU Taxonomy
Working conditions (own workforce)	A large portion of the work related to the topic is embedded in employees’ daily routines, and hence not all standalone costs are available.	Read more in Own workforce
Cybersecurity (both risk and opportunity)	Cybersecurity is an integral part of several offerings, and therefore standalone profitability or cash flow is not available. However, these offerings overall are profitable. In 2024, the company experienced a criminal ransomware attack in one of its data centres in Sweden, resulting in negative impact on growth and profit. Read more in the Notes to the Financial Statements.	Read more in Cybersecurity
Cybersecurity (both risk and opportunity)		Read more in Cybersecurity
Responsible AI	AI is an integral part of several offerings, and therefore standalone profitability or cash flow is not available. However, these offerings overall are profitable.	Read more in Responsible AI
Risks
Energy	A large portion of the work related to the topic is embedded in employees’ daily routines, and hence not all standalone costs are available. In 2024, the company booked incremental costs for data centre consolidation, renewable energy and continued development of Environmental Management System (EMS). Data centre modernization and new technologies have improved energy efficiency and are anticipated to contribute to reduction in energy consumption in the long term. Measures in 2024 also include the renewal of the lighting system at the headquarters.	Read more in Climate change
Energy		Read more in Climate change
Gender equality (own workforce)	A large portion of the work related to the topic is embedded in employees’ daily routines, and hence not all standalone costs are available. Measures during 2024 include surveys and training.	Read more in Own workforce
Privacy	A large portion of the work related to the topic is embedded in employees’ daily routines, and hence standalone costs are not available.	Read more in Consumers and end-users

Impact, risk and opportunity management

Description of the processes to identify and assess material impacts, risks and opportunities

(IRO-1)

Tietoevry’s double materiality assessment included creating an overview of activities, business relationships and

affected stakeholders, along with a background analysis covering industry context, business activities,

sustainability frameworks, legislation and peer reviews. The assessment covered the full value chain, including

all employees and workers. Special attention is given to workforce segments that may face higher risks, including

vulnerable groups.

The process to identify and assess impacts, risks and opportunities used key inputs such as carbon dioxide

equivalent (CO₂e) emissions data, the company’s TCFD analysis, human rights risk assessments, diversity

metrics, health and safety data and ESG risks from Tietoevry’s governance, risk, and compliance (GRC) platform.

Geographic risk assessments and the Sustainability Accounting Standards Board’s (SASB) materiality matrix

helped identify value chain risks, considering upstream partners’ locations and spending. Sector averages and

estimates filled data gaps in the materiality process. In terms of circular economy, Tietoevry also screened its

business activities and current solutions available in the market, as well as conducted a literature review.

Consultation was carried out with internal and external stakeholders, such as experts from the company’s

circularity service providers.

The double materiality analysis as a whole included stakeholder interviews and a review of the existing

materiality assessment, followed by an impact and financial materiality assessment. The assessment was

conducted separately for each of Tietoevry’s five specialized end-to-end business, including resources from

Business Development and Strategy, Human Resources, Finance, Risk, Sustainability, Operational Excellence and

CBS.

When assessing impact materiality, Tietoevry evaluated actual and potential sustainability impacts – both

positive and negative – arising from its operations and business relationships across its value chain. For actual

negative impacts, materiality was based on severity; for potential negatives, both severity and likelihood were

considered. Actual positive impacts were evaluated by scale and scope, including likelihood of future benefits.

Financial materiality was assessed by potential financial impacts, such as changes in assets and/or liabilities,

changes in profit or loss, and company reputation, along with likelihood.

Scoring parameters followed the ESRS and guidance on the double materiality process from the European

Financial Reporting Advisory Group (EFRAG). For impacts deemed “actual”, likelihood was automatically set to

the highest probability. Materiality thresholds were established through collaboration between each business

and Group Sustainability, with final results for Tietoevry Group weighted by FY2022 revenue. Separate

thresholds were applied across categories (actual positive, actual negative, potential positive, potential negative,

risks and opportunities) to ensure relevance. A principle of reasonableness was applied to qualitative thresholds,

ensuring accuracy based on available data.

Internal controls and subject-matter verification, supported by stakeholder engagement, ensured reliability in

Tietoevry’s sustainability reporting. The result of the company’s double materiality assessment, aligning with

ESRS requirements, was reviewed by the ARC of the Board.

In the process of identifying and assessing impacts, risks and opportunities in the ESG context, Tietoevry has

sought to understand the associated interconnections. This involves a mapping of how the company’s impacts

and dependencies translate into potential risks and opportunities, both financial and reputational. For instance,

Tietoevry has identified a key connection between its negative environmental impact, stemming from substantial

energy consumption, and the associated financial risk. The company’s reliance on energy, particularly for its data

centres, creates a risk in the face of potential energy price surges, which could significantly affect operational

costs. Similarly, Tietoevry’s dependency on a skilled workforce highlights the impact of its employment practices

on talent retention and acquisition. The company understands that fostering a diverse and inclusive work

environment can mitigate the risk of talent shortages and unlock opportunities for innovation. Tietoevry’s

approach to mapping these connections is iterative and adaptive, ensuring that as new information emerges and

the business landscape evolves, the company can refine its understanding of how impacts and dependencies

affect its risk profile and the opportunities available.

Tietoevry employs a systematic approach to risk management to enhance the efficiency, control, profitability,

sustainability, and continuity of business operations. This involves a comprehensive process of assessing,

identifying, evaluating, and analysing risks that could impact business objectives, people and the environment

from an ESG perspective. By implementing appropriate risk treatment actions, the impact and likelihood of risks

are minimized.

Using a consistent risk matrix applied across the company, risks are prioritized by assessing their impact and

likelihood. ESG impacts and risks, including those identified in the company’s double materiality assessment, are

an integral part of the risk matrix. These are prioritized based on their potential impact on people and the planet,

including regulatory compliance, but also potential impacts on the company’s financial performance and status.

Metrics are used to rank ESG risks and impacts. High-priority ESG risks include those that could lead to

regulatory penalties (e.g. bribery, corruption), significant environmental harm, or severe human rights violations,

all of which are treated as high-impact risks requiring mitigation.

Tietoevry has refined its process for double materiality during the current reporting period, ensuring that both

the impact perspective (how the company affects the environment and society) and the financial perspective

(how environmental and social issues affect the company) are thoroughly evaluated when determining

materiality. This represents an evolution from the previous reporting period, where the parameters and

perspectives assessed were less comprehensive.

The last modification to the double materiality assessment occurred during the second half of the reporting year,

with ESRS 2 as the guiding framework, ensuring that Tietoevry considered the effects of the criminal ransomware

attack in one of Tietoevry’s data centers in Sweden. To maintain alignment with evolving sustainability practices

and standards, Tietoevry is committed to revising the double materiality assessment regularly to ensure it

remains relevant and accurate. The next scheduled review is set for Q2 2025.

Description of the processes to identify and assess material climate-related impacts, risks and

opportunities

In the process of identifying Tietoevry’s material climate-related impacts, risks and opportunities, the company

considered its impacts on climate change from GHG emissions. The main emissions related to the company’s

own operations include energy consumption in offices and data centres. In the upstream value chain, most of the

emissions are generated from Purchased goods and services as well as Capital goods, while in its downstream

value chain emissions come from the use of sold products.

Climate-related physical risks in own operations and along the upstream and downstream value chain were also

considered during the process, using input from Tietoevry’s resilience analysis as part of the company’s TCFD

analysis carried out during 2022-2023.

To identify potential climate-related risks, the following three scenarios were used:

• International Energy Agency (IEA) Net Zero Emissions (NZE) 2050: In this net-zero transition scenario,

advanced economies reach net-zero emissions by 2035, with 90% of electricity coming from renewable

sources by 2050. The key risk identified for Tietoevry in this scenario is related to carbon pricing,

renewable energy cost and alignment with evolving regulations

• The Representative Concentration Pathways (RCP) 8.5: This scenario envisions high levels of carbon

emissions leading to over 4°C global temperature rise by the end of the century, with increasing extreme

weather events, a rise in the sea-level and more severe storms. For Tietoevry, this presents substantial

physical risks to facilities and disruptions in its supply chain

• RCP 4.5: This middle-path scenario includes a peak of emissions around 2040, with global warming

stabilizing between 2°C and 3°C. This scenario presents both transitional and physical risks for Tietoevry

The risks and opportunities have been identified through Tietoevry’s risk management processes, workshops,

and the scenario analysis conducted in connection with the TCFD analysis. The risks are defined by their

potential financial impacts and the deemed likelihood of occurrence. Identified risks were analyzed in different

climate scenarios, including analyses of potential financial impacts and mitigation/adaptation strategies.

The physical climate-related risks identified in Tietoevry’s operating countries were assessed using the INFORM

Risk Assessment model. It uses RCPs and Shared Socioeconomic Pathways (SSPs) projections to evaluate

hazards, vulnerability and a country’s ability to cope with crises. Exposure to physical hazards was identified on

a country-by-country scale in countries where Tietoevry has operations. Each location was assigned a risk value

that corresponds to a hazard risk class, ranging from very low to very high. Identified physical climate-related

risks include potential electricity blackouts or production disruptions due to extreme weather events. The

projections forecast climate risks up to 2050 and 2080, guiding the company’s long-term strategy for resilience.

Tietoevry uses the same information and assumptions, including climate related assumptions, as a basis for the

preparation of its consolidated financial statements and sustainability statement. Tietoevry 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.

Information on assets and business activities that need significant efforts to be compatible with transition to

climate-neutral economy is disclosed in E1 - Climate change.

Information about the process to identify actual and potential pollution-related impacts, risks and

opportunities

Tietoevry’s business activities were assessed as part of the company’s double materiality assessment, but not at

the level of specific sites. Pollution of soil, pollution of living organisms and food resources, substances of

concern and substances of very high concern were considered non-material due to the nature of Tietoevry’s

operations. However, pollution of air was evaluated as a potential material topic, primarily due to diesel use for

backup generators and testing in data centres, as well as value chain activities, such as hardware production and

business travel. Pollution to air was assessed as an actual negative impact during the assessment, even though it

is not material.

Water pollution was also assessed due to hardware usage in data centres and by employees. Hardware

production involves significant water usage, potentially leading to pollution or water scarcity depending on the

practices involved. Although water pollution was identified as a potential impact, it was not classified as material.

Disclosure of whether and how consultations have been conducted (pollution)

Tietoevry has carried out consultations with internal and external stakeholders to identify and assess material

pollution-related impacts, risks and opportunities. However, potentially affected communities have not been

consulted.

Disclosure of results of materiality assessment (pollution)

Tietoevry identified air pollution and water pollution as actual or potential negative impacts in its double

materiality assessment, but neither of the topics were deemed material.

Disclosure of whether and how assets and activities have been screened in order to identify actual and

potential water and marine resources-related impacts, risks and opportunities in own operations and

upstream and downstream value chain

Tietoevry evaluated impacts, risks, and opportunities related to water and marine resources using both internal

and external expertise, focusing on its own operations and value chain. The company is primarily linked to water-

related impacts within its supply chain, while water consumption in its own operations is limited – mainly for

employee offices, cooling, and excess heat transfer to district heating networks. Water use at major sites is

regularly monitored.

Potential negative impacts on water in the value chain are mainly related to hardware production, due to the

water-intense nature of these operations. Tietoevry is mitigating any potential negative impact on water and

marine resources in its value chain through contractual relationships, by requiring contracted suppliers to accept

Tietoevry’s Supplier Code of Conduct, which includes topics such as environmental management. Supplier

selection and engagement activities address water protection and efficiency, particularly for suppliers operating

in industries with potential or actual negative impacts in these areas.

Disclosure of how consultations have been conducted (water and marine resources)

Tietoevry has consulted internal stakeholders from relevant areas linked to activities relevant for water and

marine resources impact, risks and opportunities. These stakeholders include sourcing partners responsible for

assets, facility and environmental experts, and employees in data centre operations.

Disclosure of whether and how actual and potential impacts on biodiversity and ecosystems at own site

locations and in value chain have been identified and assessed

Impact on the state of species and impact on the extent and conditions of ecosystems were not considered

material for Tietoevry to assess, given the nature of the company’s operations in combination with the result of

the background analysis. However, direct impact drivers of biodiversity loss were assessed on a sub-topic level.

Tietoevry has a local potential negative impact (not material) on land-use change and sea-water usage due to its

data centre operations. Potential negative impacts related to climate change and pollution can also be generated

from activities in the supply chain, including manufacturing of hardware, end-of-life practices of hardware and

business travel.

Disclosure of whether and how dependencies on biodiversity and ecosystems and their services have been

identified and assessed at own site locations and in value chain

In Tietoevry’s own operations, the dependencies on biodiversity and ecosystems and ecosystem services have

been identified at a high level in connection with green building certifications. Locally in its own operations,

Tietoevry’s main offices are green certified with LEED or BREEAM certifications. These certifications include

criteria for biodiversity and sustainable site development. In Tietoevry’s offices, dependencies on biodiversity

and ecosystem services are identified as air quality (plants and trees around offices produce oxygen and are

crucial for maintaining a healthy indoor environment), energy efficiency (green roofs and walls can help to

insulate buildings, reducing the need for heating and cooling while supporting local biodiversity) and water

supply (healthy ecosystems play a vital role in filtering and regulating water supplies).

Tietoevry is planning to take more actions to enhance biodiversity-related assessment in its own operations and

value chain within the next two years.

Disclosure of whether and how transition and physical risks and opportunities related to biodiversity and

ecosystems have been identified and assessed

Climate change physical risks in Tietoevry’s facilities are monitored regularly and mitigated locally in Tietoevry’s

operations via the Facility management organization and the Environmental Management System (EMS), and are

reported via the risk reporting system when applicable. Climate-related risk management within Tietoevry is

integrated into the multi-disciplinary company-wide risk management process. Physical risks and opportunities

related specifically to biodiversity and ecosystems have not been assessed.

Disclosure of whether and how systemic risks have been considered (biodiversity and ecosystems)

Tietoevry has not assessed systemic risks related to biodiversity and ecosystems. The company is aiming to

conduct an assessment within the next two years.

Disclosure of whether and how consultations with affected communities on sustainability assessments of

shared biological resources and ecosystems have been conducted

As the topic of biodiversity and ecosystems has not been deemed material to assess for Tietoevry, the company

has not conducted consultations with affected communities.

Disclosure of whether and how specific sites, raw materials production or sourcing with negative or

potential negative impacts on affected communities

Tietoevry has assessed that the company has a potential negative impact on affected communities through its

sourcing activities for hardware components. More specifically, the hardware value chain consists of activities

that can potentially lead to negative impacts on affected communities, including water scarcity, deforestation,

pollution, and social and economic problems.

Disclosure of whether and how communities were involved in materiality assessment

Tietoevry has not conducted consultations with communities in the process of identifying and assessing material

impacts, risks and opportunities related to biodiversity and ecosystems.

Undertaking has sites located in or near biodiversity-sensitive areas

Biodiversity-sensitive areas are regions that are crucial for conservation of biodiversity due to their rich variety of

species and ecosystems. Tietoevry’s sites are not located in or near to legally protected areas, UNESCO World

Heritage sites, UNESCO Man and the Biosphere Reserves, Ramsar sites, key biodiversity areas or other areas that

are important for biodiversity. Assessment does not cover all value-chain related sites. Biodiversity mitigation

measures will be considered to reduce and offset any negative impacts of actions on biodiversity in connection

with development projects.

Disclosure Requirements in ESRS covered by the undertaking’s Sustainability Statement (IRO-2)

The material impacts, risks and opportunities disclosed have been identified and evaluated during Tietoevry’s

double materiality assessment, covering all sustainability matters covered in topical ESRS (ESRS 1 AR 16). In

addition, Tietoevry identified entity-specific disclosures and associated impacts, risks and opportunities

connected to the following topics: cybersecurity, AI and the use of responsible AI. The thresholds used adhere to

EFRAG guidelines and incorporate a group-level weighting system that takes into account the aspects of

Tietoevry’s five specialized end-to-end businesses. The assessment established specific thresholds for negative

and positive impacts, risks and opportunities to accurately represent Tietoevry’s material areas. For Tietoevry’s

entity-specific topics SBM-3, MDR-P, MDR-A, MDR-T and MDR-M have been disclosed in the statement.

Environment

EU Taxonomy reporting 61

E1 - Climate change68

E5 - Resource use and circular economy76

EU Taxonomy reporting

The EU Taxonomy, established by Regulation (EU) 2020/852, classifies economic activities that are considered

environmentally sustainable. It provides a framework for directing financial flows towards green investment

projects that support the EU's environmental objectives.

A taxonomy-eligible economic activity falls within the scope defined by the EU Taxonomy as potentially

environmentally sustainable. Such an activity is listed in the Environmental or Climate Delegated Regulation,

meaning it is recognized as relevant to the EU’s environmental objectives. A taxonomy-aligned activity not only

belongs to the eligible economic activities, but also meets the specific technical criteria set out in the EU

Taxonomy. These criteria include that an activity should ‘substantially contribute’ to at least one environmental

objective and should avoid causing ‘significant harm’ to any of the other five objectives. Furthermore, the

company should comply with minimum safeguards.

Tietoevry has conducted its assessment of eligibility and alignment in accordance with the EU Taxonomy

Regulation and the Delegated Regulations, and by interpreting the guidelines currently issued by the European

Commission. Specialists with knowledge of each offering within the respective businesses were involved in the

assessment, with support from Group Sustainability to interpret the economic activity description and the

technical screening criteria. Additionally, minimum safeguards have been evaluated at Group level.

At present most of Tietoevry’s offerings are not in scope of the EU Taxonomy. The European Commission may

expand the EU Taxonomy to cover more sectors, including IT and Consulting. As part of this, the Commission is

expected to develop additional technical screening criteria for activities that may not be fully addressed yet,

including sectors that indirectly contribute to the environmental objectives.

Proportion of turnover (revenue) from products or services associated with taxonomy-aligned economic activities

Financial year 2024

Substantial Contribution Criteria

DNSH criteria ('Does Not Significantly Harm')

Economic activities

Code

Turnover

Proportion of

turnover

Climate

change

mitigation

Climate

change

adaptation

Water

Pollution

Circular

economy

Biodiversity

Climate

change

mitigation

Climate

change

adaptation

Water

Pollution

Circular

economy

Biodiversity

Minimum

safeguards

Proportion of

taxonomy-

aligned (A1)

or eligible

(A2) turnover

in 2023

Category

enabling

activity

Category

transitional

activity

MEUR

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)

Provision of IT/OT data-driven solutions and software

CE4.1

7.5

0.3%

N/EL

Turnover of environmentally sustainable activities (Taxonomy-

aligned) (A.1)

7.5

0.3%

Of which Enabling

7.5

0.3%

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

448.1

16%

N/EL

19%

Provision of IT/OT data-driven solutions and software

CE4.1

0.3

N/EL

Turnover of Taxonomy-eligible but not environmentally

sustainable activities (not Taxonomy-aligned activities) (A.2)

448.4

16%

19%1

A. Turnover of Taxonomy eligible activities (A.1 + A.2)

455.9

16%

19%1

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Turnover of Taxonomy-non-eligible activities

2 346.7

84%

Total

2 802.6

100%

1) In the table above, the comparative eligible revenue has been restated from 20% to 19%, indicating a change from EUR 575.6 million to EUR 535.6 million. A reassessment of one of the related offerings revealed that it does not fully meet the description of the economic activity 5.5 ‘Product-as-a-service and

other circular use- and result-oriented service models' under the environmental objective 'Transition to circular economy'.

Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective; EL - Taxonomy-eligible activity for the relevant objective;

N/EL – not eligible, Taxonomy-non-eligible activity for the relevant environmental objective

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

Financial year 2024

Substantial Contribution Criteria

DNSH criteria ('Does Not Significantly Harm')

Economic activities

Code

Capex

Proportion of

capex

Climate change

mitigation

Climate change

adaptation

Water

Pollution

Circular

economy

Biodiversity

Climate change

mitigation

Climate change

adaptation

Water

Pollution

Circular

economy

Biodiversity

Minimum

safeguards

Proportion of

taxonomy-

aligned (A1)

or eligible

(A2) turnover

in 2023

Category

enabling

activity

Category

transitional

activity

MEUR

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)

Provision of IT/OT data-driven solutions and software

CE4.1

1.0

N/EL

Capex of environmentally sustainable activities

(taxonomy-aligned (A.1)

1.0

of which enabling

1.0

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

31.3

21%

N/EL

26%

Acquisition and ownership of buildings

CCM7.7

50.2

34%

N/EL

25%

Transport by motorbikes, passenger cars and light

commercial vehicles

CCM6.5

10.5

N/EL

Provision of IT/OT data-driven solutions and software

CE4.1

0.2

0.1%

N/EL

CapEx of Taxonomy-eligible but not environmentally sustainable

activities (not Taxonomy-aligned activities) (A.2)

92.2

63%

61%

A. CapEx of Taxonomy eligible activities (A.1 + A.2)

93.2

64%

63%

61%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Capex of taxonomy-non-eligible activities

52.5

36%

Total

145.7

100%

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

Financial year 2024

Substantial contribution criteria

DNSH criteria ('Does Not Significantly Harm')

Economic activities

Code

Opex

Proportion of

opex

Climate change

mitigation

Climate change

adaptation

Water

Pollution

Circular

economy

Biodiversity

Climate change

mitigation

Climate change

adaptation

Water

Pollution

Circular

economy

Biodiversity

Minimum

safeguards

Proportion of

taxonomy-

aligned (A1)

or eligible

(A2) turnover

in 2023

Category

enabling

activity

Category

transitional

activity

MEUR

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)

Provision of IT/OT data-driven solutions and software

CE4.1

1.1

N/EL

OpEx of environmentally sustainable activities (Taxonomy-

aligned) (A.1)

1.1

Of which Enabling

1.1

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

15.1

17%

N/EL

18%

Acquisition and ownership of buildings

CCM7.7

3.4

N/EL

Provision of IT/OT data-driven solutions and software

CE4.1

0.05

N/EL

OpEx of Taxonomy-eligible but not environmentally sustainable

activities (not Taxonomy-aligned activities) (A.2)

18.5

21%

A. OpEx of Taxonomy eligible activities (A.1 + A.2)

19.7

22%

21%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

OpEx of Taxonomy-non-eligible activities

69.3

78%

Total

88.9

100%

Revenue

Tietoevry’s eligible revenue amounted to a total of EUR 455.9 (535.6) million, or 16% (19%) of its total revenue.

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’

contributing to the objective ‘Climate change mitigation’. The relevant eligible revenue amounted to EUR 448.1

million which is a slight decrease compared to the previous year.

The proportion of eligible revenue at Group level was supported by several offerings contributing to the

objective ‘The transition to circular economy’. These offerings fall under activities CE4.1 ‘Provision of IT/OT data-

driven solutions and software’. Tietoevry’s eligible offerings with a total revenue of EUR 7.8 million, supporting

circular economy, are being provided and developed across businesses. The Leasing Platform in Tietoevry

Banking is an example of such an offering. This software solution is designed to help customers manage the

lifecycle and circularity of assets, allowing users to track assets, optimize their use and manage their disposal or

recycling at the end of life.

While several of the company’s offerings have positive effects on environmental sustainability and are closely

linked to economic activity CCM8.2 ‘Data-driven solutions for GHG emissions reductions’ under the objective

‘Climate change mitigation’, revenue for those is not deemed eligible. This is because climate change mitigation is

not the predominant aim of offerings in the manner described in economic activity CCM8.2. In addition to the

objectives ‘Climate change mitigation’ and ‘The transition to circular economy’, Tietoevry does not report any

eligible revenue or investments for offerings contributing to other objectives.

The company conducted alignment assessments for its eligible offerings. Following the assessments for

technical screening criteria, the company concluded that the eligible offerings for activity CE4.1 ‘Provision of IT/

OT data-driven solutions and software’ fulfil the corresponding technical screening criteria. Thus, EUR 7.5 million

or 0.3% eligible revenue is reported as aligned revenue.

Regarding data platform services, the assessment was conducted at 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. Currently the alternatives

to these refrigerants are limited but Tietoevry plans to gradually adopt solutions that comply with the required

GWP limits.

Capital expenditure

Capital expenditure amounted to a total of EUR 145.7 (131.6) million, comprising EUR 85.0 million in a dditions to

tangible and intangible assets (as presented in Financial Statements notes 14 and 15) and EUR 60.7 million in

additions to right-of-use assets (Financial Statements note 16 additions to right-of-use assets also include

remeasurements that are excluded here).

Taxonomy-eligible capital expenditure was EUR 93.2 (79.9) million, or 64% (61%) of the total amount. Out of the

eligible capital expenditure, a total of EUR 32.5 million was related to data centres and eligible offerings and fell

under the category a) investments in assets or processes associated with taxonomy-eligible or taxonomy-

aligned economic activities. EUR 60.7 million were additions to right-of-use assets, which fall under the category

c) purchases of output from taxonomy-eligible or taxonomy-aligned economic activities. Tietoevry did not

report any capital expenditure under the 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, the company identified EUR 1.0 million, or 1%, as aligned capital

expenditure, which presented capitalized development expenditures for offerings for activity CE4.1 ‘Provision of

IT/OT data-driven solutions and software’.

Operating expenditure

Operating expenditure as defined in the EU Taxonomy amounted to a total of EUR 88.9 (87.3) million, comprising

EUR 85.5 million in offering and internal development and EUR 3.4 million in maintenance of premises and short-

term leases.

Taxonomy-eligible operating expenditure was EUR 19.7 (18.1) million, or 22% (21%) of the total amount. Out of

the eligible operating expenditure, a total of EUR 16.3 million was related to offering and internal development

and fell under the category a) expenditure related to assets or processes associated with taxonomy-eligible or

taxonomy-aligned economic activities. EUR 3.4 million were expenditures related to maintenance of premises

and short-term leases, which fell under the category c) purchases of output from taxonomy-aligned economic

activities. Tietoevry did not report any operating expenditure under the 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, the company identified EUR 1.1 million, or 1%, as aligned operating

expenditure, which presented development expenditures for offerings for activity CE4.1 ‘Provision of IT/OT data-

driven solutions and software’.

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 16 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 leases, 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

Nuclear and fossil gas related activities

Disclosure referred to in Article 8(6) and (7) of the delegated regulation (EU) 2021/2178 is presented below.


Nuclear energy related activities
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.	NO
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.	NO
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.	NO
Fossil gas related activities
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.	NO
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.	NO
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.	NO

Compliance with minimum safeguards

Tietoevry conducted an annual Group-level assessment to ensure compliance with minimum safeguards,

confirming that its activities align with the UN Guiding Principles, OECD Guidelines for Multinational Enterprises,

and the CSRD. This process evaluated the adequacy of due diligence practices and their implementation across

the organization.

The assessment was primarily based on the 'Final Report on Minimum Safeguards' published by the Platform on

Sustainable Finance (PSF) in October 2022. However, the November 2024 draft FAQ issued by the European

Commission recommends considering the latest amendment of the OECD Guidelines in compliance

assessments. Referencing both the PSF report and the draft FAQ ensures alignment with the most recent

implementation guidance. The assessment included a structured approach with questions centred on four core

areas of the minimum safeguards: human rights, anti-corruption, fair competition, and taxation, ensuring

alignment with the relevant principles and guidelines. Relevant stakeholders, including the Group Compliance

Officer, Head of Group Tax, and Senior Sustainability Manager responsible for human rights, were actively

consulted during the process.

During 2024, the focus has been to further strengthen the corporate-wide due diligence measures, specifically

with regards to human rights and corruption. Activities include a Group-wide anti-corruption assessment,

implementation of sustainability assessment into the supplier selection process and human rights risk

assessments of core corporate processes. The execution of activities demonstrates that Tietoevry meets the

requirements for compliance with minimum safeguards.

E1 - Climate change

Strategy

Transition plan for climate change mitigation (E1-1)

Tietoevry’s greenhouse gas (GHG) emissions related to own operations are generated by energy consumption in

offices and data centres. In its upstream value chain, most of the emissions are generated by Purchased goods

and services – including Capital goods – while downstream emissions come from the Use of sold products.

To enhance its climate transition, Tietoevry has established a high-level climate transition plan (CTP) approved

by the Sustainability Steering Group. The CTP is focusing on climate change mitigation actions within its own

operations and across the value chain. The CTP is aligned with Tietoevry’s strategy that is further described in

SBM-1 and SBM-3. Tietoevry has set science-based emission reduction targets covering all scopes. The SBT

validation team has classified the company’s scope 1 and 2 targets and has determined that the targets are in line

with a 1.5°C trajectory. These targets are set through 2026, with the exception of the company’s business travel

target, which is extended to 2030. The targets meet the SBTi’s latest guidelines (version 4.2).

In the CTP, Tietoevry is committed to reducing its absolute scope 1 and 2 GHG emissions by 90% by 2026 from

the 2020 base year. The company is also committed to sourcing 100% renewable electricity by 2026 (up from

80% in 2020). Additionally, the company aims to cut its scope 3 GHG emissions from business travel by 47% per

full-time employee by 2030, using 2019 as the base year. Tietoevry’s supplier engagement target, 70% of

suppliers having SBTs by 2026, aims to align emission reductions with the 1.5°C trajectory in the supply chain. In

line with these goals, Tietoevry is targeting net zero emissions in its own operations by 2026. This will be

achieved by reducing scope 1 and 2 emissions by 90%, with any residual emissions addressed annually through

the purchase of high-quality carbon removal solutions.

During 2024 Tietoevry committed to establish a net zero target across the value chain aligned with SBTi’s

requirements. Key decarbonization levers include renewable energy usage, improving energy and material

efficiency, adopting circular economy practices and engaging with suppliers who are reducing their own

emissions aligned with the SBTs to reach net zero.

Energy efficiency is improved by optimizing office spaces, consolidating data centres and choosing energy-

efficient devices. Business travel-related emissions are mitigated by enabling remote working and the use of

virtual conference technologies, as well as by improving instructions and guidelines. In its upstream value chain,

emissions are reduced via active engagement with the company’s biggest suppliers and by encouraging them to

set Science Based GHG reduction targets. All new and renewed material suppliers must accept Tietoevry’s

Supplier Code of Conduct, including environmental and climate topics. In the downstream value chain, Tietoevry

can help customers reduce their emissions by using the company’s products and services.

Tietoevry’s locked-in GHG emissions primarily arise from its energy-intensive infrastructure, long equipment

lifecycles and reliance on non-renewable energy sources. Data centres constitute a significant source of locked-

in emissions, consuming large amounts of energy and often being built with lifespans of up to 20 years. This

extended lifespan, coupled with reliance on fossil fuel-based electricity from backup diesel generators, can

result in long-term emissions. Tietoevry’s screening against the EU Taxonomy Regulation requirements identified

a particular locked-in emission related to the global warming potential (GWP) of refrigerants used in the cooling

systems of data centres. While alternatives to these refrigerants are limited, Tietoevry plans to gradually adopt

solutions that comply with the required GWP limits. Furthermore, some locked-in emissions are tied to facility

infrastructure in regions that are still heavily reliant on fossil fuels. As a result, Tietoevry is focusing on mitigating

these emissions by gradually aligning its operations with more sustainable solutions and investing in upgrades

where feasible.

Reducing locked-in emissions will require an incremental shift to renewable energy, upgrading existing

infrastructure and minimizing air travel by promoting digital alternatives like virtual meetings. Additionally, in the

upstream value chain, the production of devices such as smartphones, laptops and servers contributes to high

carbon emissions. This is mainly due to the energy-intensive extraction and processing of raw materials, such as

rare earth metals, as well as the manufacturing processes involved.

As part of Tietoevry’s ongoing commitment to sustainability, the next steps in the climate transition journey

include specifying the CTP to outline an actionable roadmap for achieving the company’s climate goals,

enhancing the accuracy of value chain-related GHG data to ensure more precise measurement and management

of emissions across scope 3 and establishing a Net Zero Target, aligned with the latest scientific guidance.

Tietoevry is not excluded from the EU Paris aligned benchmarks. Tietoevry did not recognize any significant

operational or capital expenditure in related to the transition plan in 2024.

Material impacts, risks and opportunities and their interaction with strategy and business

model (ESRS 2 SBM-3)

In its double materiality assessment, Tietoevry identified energy, climate change mitigation and adaptation as

material topics, representing actual negative impacts, risks and opportunities.

Energy was identified as an actual negative impact and a risk from both a physical and transitional perspective.

When assessing climate-related hazards, Tietoevry has considered chronic and acute physical risks and

analysed scenarios based on the INFORM Risk Assessment model. The INFORM Risk Assessment Model is a

global tool that measures disaster and crisis risks by analysing hazards, vulnerabilities, and coping capacities to

support evidence-based decision-making for risk reduction. Physical risks for Tietoevry include potential

electricity blackouts or production disruptions due to extreme weather events, while transitional risks involve the

rising costs of renewable energy, as demand might outpace supply over the next five years. Transition risks were

assessed based on TCFD classification of climate-related transition events and through scenario analysis. TCFD

is a framework that provides guidelines for organizations to disclose climate-related financial risks and

opportunities, helping stakeholders make informed decisions. For Tietoevry, financial risks related to energy

price volatility, regulatory changes and carbon pricing might pose a challenge for the climate transition. However,

given the nature of Tietoevry’s business, the company was assessed to have a low exposure to physical and

transitional climate-related risks, and therefore the company’s operations were deemed to be resilient against

the short-, medium- and long-term impacts of climate change. Tietoevry takes short-term (0-2 years), medium-

term (2-7 years) and long-term (7-30 years) financial and strategic time horizons into consideration while

assessing climate-related risks and opportunities in TCFD reporting. When defining the time horizons, Tietoevry

has considered aspects such as useful economic life time of its assets and the relatively long time horizon of

climate change impacts and mitigation efforts.

Climate change adaptation was identified as a material opportunity for Tietoevry. This is because the company is

well positioned to develop and expand products and services to support customers in this area, helping other

industries adapt to climate change too.

Tietoevry has screened its activities in order to identify potential future GHG emission sources. Some of the

emerging technologies that are explored in Tietoevry’s strategy – such as Artificial Intelligence (AI) – are energy

intensive and potentially pose a risk towards energy efficiency and potential increase of GHG emissions.

Impact, risk and opportunity management

Policies related to climate change mitigation and adaptation (E1-2)

The fundamental principles regarding climate change mitigation and adaptation are set forth in Tietoevry’s

Supplier Code of Conduct and its Code of Conduct. The company further defines its commitment and sets the

foundation for its environmental and climate-related work in its publicly available Environmental Policy. The

policy affirms Tietoevry’s alignment with key global frameworks, including the United Nations (UN) Global

Compact, UN Sustainable Development Goals, the ISO 14001 EMS and SBT, and provides a structured approach

to implementing and monitoring environmental initiatives.

The Environmental Policy gives guidelines to manage material impacts, risks and opportunities related to climate

change mitigation and adaptation. The main objectives of the Environmental Policy include ensuring compliance

with applicable environmental laws and regulations, pollution prevention, promoting environmental awareness

and contributing to the development of sustainable societies and businesses in collaboration with relevant

stakeholders.

In order to achieve the set objectives, the policy introduces principles that address the topics of energy, climate

change mitigation and adaptation. These principles include leadership commitment, enhanced process

approach, protection of environment, active engagement and striving for continuous improvement. The policy

also describes the principles that form the bases for the company’s climate actions, use of renewable energy and

energy efficiency, circularity and actions to increase its positive impact.

The Environmental Policy is reviewed annually and the review process includes stakeholder interest

consideration through benchmarking, stakeholder interviews, and active dialogue with experts. The policy

applies to all Tietoevry companies and employees globally, as well as to companies under Tietoevry’s control.

Policy content is made available to all Tietoevry employees through a mandatory e-learning module in Tietoevry

Essentials. The responsibility of implementing the Environmental Policy lies with the Chief Sustainability Officer.

Actions

Actions and resources in relation to climate change policies (E1-3)

Tietoevry’s main decarbonization levers include the use of renewable energy, energy and material efficiency,

consolidation and optimization efforts, and engagement with suppliers. By using these levers, Tietoevry has

achieved emission reductions over time and through this the company has contributed to climate change

mitigation.

As one of the main actions during 2024, Tietoevry continued the data centre consolidation project in the Nordics

that began in 2021. The implementation of modern technology and infrastructure is bringing benefits such as

energy efficiency. Tietoevry sees opportunities in consolidating operations to a selected number of co-located

data centres with excellent energy efficiency, a low-carbon footprint and circular economy practices. The

location of data centres is also important in enabling the circularity of the energy produced. For example, in some

locations technology allows the energy produced by the data centres to feed nearby district heating networks to

warm households. The data centre consolidation project has proceeded according to plan and is expected to

continue into 2026.

In order to further reduce GHG emissions, Tietoevry continued using renewable electricity in all of its data

centers and most of its offices, and is committed to doing so also in 2025. During 2024, Tietoevry increased the

use of renewable energy in its smaller offices in Europe, which was the main contributor of the GHG emission

reductions in scope 2.

To improve energy efficiency in Tietoevry’s offices globally, the company continued to optimize work spaces,

conducted energy inspections, renewed electrical devices and shared energy-saving tips with its employees

during 2024. Where possible, the company also encouraged adjustments to building automation systems,

optimizing lighting in offices based on whether a space is being used or not. During 2024, Tietoevry’s operations

in Riga were moved to a new A-class energy efficient and BREEAM-certified office space. Tietoevry will continue

its transition towards more energy-efficient offices also in 2025.

To ensure that Tietoevry’s environmental objectives are met, all offices and data centres operate under the

company’s global EMS, which is ISO 14001 certified and annually externally audited. The Global Environment

Team coordinates and supports the implementation and continual improvement of the EMS. This team comprises

environmental managers from various operating countries and is led by the global EMS manager. The

responsibility for implementing the principles outlined in the company’s Environmental Policy, as well as related

processes and actions, lies with the five specialized businesses.

Tietoevry’s business travel emissions have been steadily increasing after the pandemic. The company sees a

need to further enforce hybrid ways of working and to strengthen the implementation of Tietoevry’s Travel Rule,

which recommends choosing environmentally friendly options such as train travel over flying. In 2024, Tietoevry

conducted a company-wide employee commuting survey to enhance awareness about commuting habits and

improvement opportunities, as well as to support GHG emission calculations in scope 3.

In scope 3, the biggest share of Tietoevry’s emissions come from Purchased goods and services and Capital

goods related to the company’s suppliers. Emissions in this area are mitigated by supplier compliance with the

SBTs, alignment with Tietoevry’s Supplier Code of Conduct as well as direct engagement with the biggest

suppliers. Further actions in terms of responsible sourcing and material efficiency are described in E5-2.

Tietoevry sees climate change adaptation and resilience solutions as an area with potential business

opportunities. By having expertise in cloud-based solutions and analytics capabilities, Tietoevry could work with

its partners and customers to develop solutions for climate change adaptation and resilience.

Tietoevry is operating in a sector that is rapidly changing and having an impact on decarbonization action. In

general, the technology sector uses a range of strategies to balance supply and demand, including cloud

computing, AI and automation. The company’s R&D investments are targeted towards these cutting-edge

technologies, ensuring that Tietoevry remains agile, competitive and responsive to global market demands.

Tietoevry’s action plan for the material IROs did not require any significant operational expenditure (Opex) or

capital expenditure (Capex) for the financial year 2024. Tietoevry is unable to specify the achieved and

expected GHG emission reductions per action. Tietoevry’s ability to implement actions depend on the availability

and allocation of resources, but due to the sensitivity of this strategic information, the company does not disclose

the extent of the dependence,

Metrics and targets

Targets related to climate change mitigation and adaptation (E1-4)


Material topic	Type of IRO related to target	Target	Result 2024	Result 2023	Result 2022
Climate change mitigation, adaptation and energy	Actual negative, risk and opportunity	SBT: 90% absolute greenhouse gas emission reduction in scope 1 and 2 by 2026	87%	84%	70%
Climate change mitigation, adaptation and energy	Actual negative, risk and opportunity	SBT: 100% renewable electricity in own operations by 2026	99%	99%	95%
Climate change mitigation, adaptation and energy	Actual negative, risk and opportunity	SBT: Reduce business travel emissions 47% per FTE by 2030	73%	79%	83%
Climate change mitigation, adaptation and energy	Actual negative, risk and opportunity	SBT: 70% of suppliers having SBTs by 2026	46%	29%	27%
Climate change mitigation, energy	Actual negative, risk and opportunity	100% of employees completed the annual Environmental e- learning (new target FY2024)	97%	N/A	N/A

Tietoevry’s methodology for target-setting has included scenario analysis and internal and external stakeholder

engagement. Employees and management have provided their expertise through internal surveys and

workshops to ensure that the targets are relevant and feasible in view of the Group’s operations. The interests of

external stakeholders have been captured through benchmarking, legislative reviews, and market assessment.

All targets related to climate mitigation and adaptation are aligned with Tietoevry’s Environmental Policy, which

outlines the company’s commitment to the integration of environmental performance into all of its operations.

Tietoevry has GHG reduction targets approved by the SBTi. All entities within the Tietoevry Group are included in

scope 1 and 2 of the reduction targets. The targets support Tietoevry’s material impacts and risks of renewable

energy deployment and climate change mitigation through reduction of GHG emissions in own operations.

Targets related to scope 1 and 2 include a combined 90% reduction target for absolute scope 1 and 2 GHG

emissions from the baseline value of 10,042t in 2020, and an increase to 100% of annual sourcing of renewable

electricity from the baseline value of 80% in 2020.

Tietoevry’s carbon accounting system is monitored on an annual basis and/or in connection to significant

changes to ensure that the full scope is covered. The scope is evaluated against the Group facility list and

updated in the system if applicable. If any significant changes are implemented, e.g. in connection with the data

centre consolidation programme, then the base year data is reviewed and evaluated. GHG footprint calculation-

related emission factors are updated in the carbon footprint reporting system on an annual basis.

Two of the SBTs are connected to scope 3. These targets include a 47% reduction of GHG emissions from

business travel with the baseline value of 928 kgCO2e/FTE, and an increase to 70% in the share of the

company’s suppliers, measured by emissions from Purchased goods and services, that have established SBTs.

The baseline value for this target is 27% from 2022. In 2024, the supplier related SBT and scope 3 Purchased

goods and services emissions reporting did not include Avega, Bekk, EVRY India, and the Infopulse units in Brazil,

Bulgaria, Germany, Poland, and Ukraine. These entities were excluded as they are not fully integrated into

Tietoevry's operations and follow different spend categorizations. The estimated impact of excluding these

entities on the overall supplier SBT and emissions reporting accounts for less than 3% of total emissions.

Tietoevry’s business travel reduction target was established from 2019 data. At that time the business travel

emissions covered 8% of scope 3. During the pandemic these emissions declined radically, covering 4% of

Tietoevry’s scope 3 emissions in 2024. Since 2022, Tietoevry’s business travel emissions have been slowly

increasing.

To raise awareness of the company’s energy- and climate-related commitments, Tietoevry has also set a target

that requires all employees to annually complete mandatory training on environmental sustainability. Climate

change adaptation has also been identified as an opportunity, and the company’s targets support efforts in this

direction. All entities within the Tietoevry Group are included in the scope of the 100% annual completion target

for environmental e-learning, with the exception of the subsidiary Bekk, which operates fully as a portfolio

company.

Tietoevry achieved an 87% reduction in GHG emissions related to scope 1 and scope 2. This achievement is

aligned with the company’s ambitious environmental targets. The share of renewable electricity used across

Tietoevry’s offices and owned data centres remained consistently high at 99% throughout 2024. Business travel

emissions recorded a 73% reduction of kgCO2e/FTE from the baseline, reflecting Tietoevry’s continued efforts to

minimize its travel-related environmental impact. However, the figure is lower than in the previous year, which

indicates a slight increase in travel emissions. Progress was also evident in supplier engagement, as 46% of the

suppliers had set SBTs by the end of 2024. This represents meaningful progress from the previous year,

underscoring Tietoevry’s commitment to driving sustainable practices throughout its value chain. On the

environmental training side, Tietoevry achieved a high 97%completion rate in 2024, closely approaching the

annual target of 100%.

Supported by the reduction and renewable electricity targets, Tietoevry is aiming to achieve net zero in its own

operations by 2026. Tietoevry does not have absolute long-term GHG emission reduction targets in place, as the

development of the company’s full scope net zero target is ongoing. In 2024, Tietoevry committed to establishing

a net zero target across the value chain.

Measurements of the targets has not been validated by any external body except for the assurance providers

and no milestones or interim targets have been set. Tietoevry was unable to quantify the expected

decarbonisation levers’ contribution to achieve the GHG emission reduction targets.

Energy consumption and mix (E1-5)


Energy consumption and mix	2024
Fuel consumption from crude oil and petroleum products (MWh)	608
Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh)	8 076
Total fossil energy consumption (MWh)	8 684
Share of fossil sources in total energy consumption (%)	10%
Consumption from nuclear sources (MWh)	10 930
Share of consumption from nuclear sources in total energy consumption (%)	13%
Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.) (MWh)	2
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)	63 930
Total renewable energy consumption (MWh)	63 932
Share of renewable sources in total energy consumption (%)	77%
Total energy consumption (MWh)	83 546

Energy consumption in own operations (scope 1 and 2) has decreased from the previous year by 16% to 83 546

MWh (99 932 MWh). The main reason is the company's data centre consolidation programme and transfer to

modern technology co-location facilities.

Gross Scopes 1, 2, 3 and Total GHG emissions (E1-6)


Gross scopes 1, 2, 3 and Total GHG emission	Retrospective				Milestones and target years
Gross scopes 1, 2, 3 and Total GHG emission	Base year 2020	2024	2023	Change, %	2026
Scope 1 GHG emissions
Gross scope 1 GHG emissions (tCO2eq)	143	158	195	-19	14
Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%)	0	0	0
Scope 2 GHG emissions
Gross location-based scope 2 GHG emissions (tCO2eq)	12 372	6 937	7 877	-12
Gross market-based Scope 2 GHG emissions (tCO2eq)	9 899	1 157	1 406	-18	990
Significant scope 3 GHG emissions
Total gross indirect (scope 3) GHG emissions (tCO2eq)		163 204	205 417	-21
Purchased goods and services		134 696	189 227	-29
Capital goods1		9 235	0	100
Fuel and energy-related activities (not included in scope 1 or scope 2)		3 005	3 131	-4
Waste generated in operations		64	97	-34
Business travelling		5 852	4 639	26
Employee commuting		6 148	4 380	40
Upstream leased assets		397	59	> 100
Use of sold products		3 807	3 884	-2
Total GHG emissions
Total GHG emissions (location-based) (tCO2eq)		170 299	213 489	-20
Total GHG emissions (market-based) (tCO2eq)		164 519	207 018	-21

1 Comparative value of Capital goods is included in Purchased goods and services.


GHG intensity per net revenue	2024	2023	Change, %
Total GHG emissions (location-based) per net revenue (tCO2 e/MEUR)	61	75	-19
Total GHG emissions (market-based) per net revenue (tCO2 e/MEUR)	59	73	-19

Net revenue used in GHG intensity calculation is based on the Group’s revenue in the consolidated income

statement.

Tietoevry used the GHG Protocol Standard when accounting for emissions in 2024. Tietoevry’s scope 1 and 2

reporting boundary covers all Tietoevry companies and subsidiaries. Emissions are reported as CO2 equivalents

(CO2e). The electricity emission factors are based on national gross electricity production mixes (annual

statistics) from the International Energy Agency’s statistics (IEA stat 2024). Emission factors per fuel type are

based on assumptions in the IEA methodological framework. Factors for district heating/cooling are either based

on actual (local) production mixes, or average IEA statistics. The scope 2 market-based calculations are

determined by the purchased Guarantees of Origin (GoO)/Renewable Energy Certificates (REC). When acquiring

GoOs or RECs, the supplier certifies that the electricity is produced exclusively by renewable sources with an

emission factor of 0 grams CO2e per kWh. However, for electricity without certificates, the emission factor is

based on the remaining electricity production after all GoOs and RECs for renewable energy are sold. During

2024 Tietoevry purchased bundled (45%) and unbundled (29%) Energy Attribute Certificates (EACs), in the form

of GoOs and RECs which in total covered 73% of scope 2.

The emission factors used for European residual mixes are provided by the Association of Issuing Bodies (AIB)

2024 and European Residual Mixes 2024. Country-specific IEA emission factors are used for non-EU countries.

Purchased renewable district-heating and cooling products are counted as zero emissions, according to the

scope 2 market-based method. The base year for the scope 1 and 2 GHG calculations is 2020. The base year for

scope 3 business travel GHG calculations is 2019. In the report, the metric ton/UK tonne equivalent to 1,000

kilograms is stated solely as a ton.

Material scope 3 categories and their methodology are presented below. The categories deemed as non-

material for Tietoevry are Processing of sold products, Downstream leased assets, Franchises and Investments.

The remaining categories are incorporated into a presented category, such as Upstream transportation and

distribution being included within the Purchased goods and services category as is Downstream transportation.

There are no significant changes in the definition of the Tietoevry Group and its value chain in regards of GHG

emission reporting.

• Purchased goods and services and Capital goods: Tietoevry’s company-wide spend data has been used

to identify purchase categories and GHG emissions. Emission factors used in calculations come from the

Environmental Protection Agency (EPA) 2020, and are based on an input-output model that links

monetary accounts with the GHG emissions of different sectors of the economy. The emission factors

cover all GHG and are expressed in CO2 equivalents. The Global Warming Potential (GWP) of factors

used is 100 years GWP and comes from the sixth assessment report of the Intergovernmental Panel on

Climate Change (IPCC). These categories do not cover Avega, Bekk, EVRY India, and the Infopulse units in

Brazil, Bulgaria, Germany, Poland, and Ukraine. Tietoevry reports Purchased goods and services and

Capital goods as separate categories in 2024. Earlier, both categories were reported as a combined

figure in the Purchased goods and services category. The expenditure data used for calculating

emissions in these categories is not directly comparable with financial reporting data.

• Fuel- and energy-related activities: To calculate fuel and energy-related activity data in accordance with

the GHG Protocol, both scope 1 (direct) and scope 2 (indirect) emissions are considered. Scope 1

emissions are calculated by gathering fuel consumption data from company-owned sources and

applying appropriate emission factors. Scope 2 emissions are derived from the consumption of

purchased electricity, steam, heating, and cooling, using either location-based or market-based emission

factors. Additionally, fuel- and energy-related emissions under scope 3 (category 3) are calculated by

accounting for upstream activities, including the extraction, production, and transportation of fuels, as

well as transmission and distribution losses. Emission factors for these upstream activities are sourced

from the Internation Energy Agency (IEA) 2024 database, and the total emissions are determined by

multiplying the relevant activity data from scope 1 and scope 2 by the corresponding emission factors.

• Waste generated in operations: The activity data is provided by the waste management supplier or

property manager. Waste type-specific and waste treatment-specific emission factors have been used in

the calculations. Recycled waste fractions include only a small transport component (collection of

waste). The source for the emission factors is DEFRA, 2024. This category does not cover Avega and the

Infopulse units in Brazil, Bulgaria, Germany and Poland.

• Business travel: The emission factors represent kgCO2e emitted per kilometre or passenger kilometre for

each mode of transport. Emissions from business travel by air are reported by Tietoevry’s travel agency.

Mileage allowance (car) is calculated using the emission factor for mileage allowance, reference DEFRA

2024. This category does not cover Avega and Bekk.

• Employee commuting: Emissions related to commuting are based on actual commuting to work as well as

working from home. Emissions for home office work are calculated based on the number of full-time

employees, working hours per day and days at the home office. This total is then multiplied by an

estimation of the average watts for lighting (10W) and electricity (140W) required for working from home.

After this, the result is divided by 1,000 and the result will be the total amount of kWh for the home office.

The kWh is converted into tCO2e by using country-specific emission factors. The source of emission

factors used in the calculation is the International Energy Agency (IEA) 2024 for homeworking, and

DEFRA 2024 or local factors for mode of transport. The emissions are from a lifecycle emission

perspective, and the Global Warming Potential (GWP) of factors used is 100 years GWP. It comes from

the IPCC’s sixth (IEA factors) and sixth (DEFRA factors) assessment reports.

• Upstream leased assets: Scope 1 and scope 2 emissions according to market-based method from

outsourced data centres. The emission factors used in the calculation come from DEFRA 2024 for scope

1, and AIB 2024 and European Residual Mixes 2024 for scope 2. The emissions are from a lifecycle

emission perspective and the Global Warming Potential (GWP) of factors used is 100 years GWP. It

comes from the IPCC’s sixth (IEA factors) and sixth (DEFRA factors) assessment report.

• Use of sold products: The energy consumption of sold products is calculated using activity data from

product sales across various countries. Products are grouped into broader categories. For each category,

the estimated product lifetime and average annual energy consumption in kilowatt-hours (kWh) are

determined. Data from multiple reliable sources is used to estimate the average wattage per hour, daily

operating time, and product lifespan. The average daily energy usage is calculated by multiplying the

wattage by the estimated daily operating time. This daily usage is then multiplied by the number of

operational days per year to derive the annual average kWh. The total energy consumption is calculated

by multiplying the annual average kWh by the estimated product lifespan (in years) and the number of

units sold. This method provides a comprehensive estimate of the energy impact of the sold products

over their lifetime.

The share of emissions in the value chain calculated using primary data obtained from suppliers or other value

chain partners is less than 5% whilst the remaining share is estimation-based.

The Purchased goods and services category earlier used Defra’s 2014 spend-based emission factors. In 2024,

the more recent EPA 2020 emission factors were used. This change has an impact on the reported result, due to

differences in categorization and lower factors. Improving scope 3 supplier emission data is an ongoing process,

with the aim of achieving more accurate data for reporting.

Tietoevry conducted a global employee commuting survey in September 2024. The result of the survey is used

as source data for the scope 3 category Employee commuting related GHG emission calculations. The survey

was conducted by an external service provider.

Tietoevry Tech Services has carried out data centre consolidation during the past years. As a result of this

development, some data centres were closed in 2024 and transferred into co-location facilities with better

energy efficiency and modern technology. Transferring to cloud solutions has also continued in 2024, with an

impact on energy consumption.

GHG removals and mitigation projects financed through carbon credits (E1-7)

Financing GHG emission reduction projects through purchasing high-quality carbon credits is a recognized

method of contributing to climate change mitigation. High-quality carbon credits are essential, as they ensure

that the projects funded are genuinely effective in reducing or removing GHG emissions. Quality carbon credits

have considered topics like additionality, durability, leakage, external verification of the methodology and

calculations, and evaluation of the impacts on other sustainability areas.

Tietoevry cancelled carbon credits which corresponds to 1 280 metric tonnes of CO2eq for voluntary offsets of

its own GHG emissions related to operations in Norway. 100% of these carbon reduction credits were

purchased from two Gold Standard programme projects in India. Gold Standard programmes qualify as a

corresponding adjustment under Article 6 of the Paris Agreement. The main purpose of the projects’ activity is to

generate electricity through sustainable means using solar power and wind power resources. The generated

renewable electricity will contribute to climate change mitigation efforts.

All credits are issued by default after the annual monitoring and verification process, and 10% of all credits are

pooled into a buffer account. If any reversals occur in the projects, the carbon losses are covered through the

cancellation of an equivalent number of buffer credits from the buffer pool. The carbon credits have been issued

in accordance with the relevant standard’s protocols and are tracked in the registry to prevent double counting

or double selling. The serial number of the credits cancelled is available. No adjustments have been issued for

these carbon credits. The carbon credit projects that Tietoevry invests in include:

• Renewable energy projects (wind power generation) with distribution within the Indian power grid

• Renewable energy (solar power generation) projects within selected Indian states

Tietoevry is aiming to reach net zero in scope 1 and 2 by 2026. In connection to this commitment, the plan is to

remove the residual GHG emissions, less than 10%, with high quality carbon removal. In 2024 no removal project

credits were purchased.

Internal carbon pricing (E1-8)

Tietoevry does not have internal carbon pricing.

E5 - Resource use and circular economy

Impact, risk and opportunity management

Description of the processes to identify and assess material resource use and circular

economy-related impacts, risks and opportunities (ESRS 2 IRO-1)

Tietoevry has identified financial opportunities including offering circular services that help businesses transition

to a circular economy model, providing consulting services for circular IT practices and assisting in redesigning

and optimizing IT infrastructure for resource efficiency. Additional opportunities include developing software

solutions that support circularity in various industries (resource management systems, tools for tracking and

optimizing the lifecycle of products), supporting customers with IT equipment refurbishment and resale

programmes, for example through recycling as a service.

Circular economy opportunities rely on several dependencies linked to policy and regulation, supply chain

relationships and collaboration, technology and innovation, and infrastructure development. There are also

barriers to circular economy: namely market, financial, technical, and regulatory challenges.

Policies related to resource use and circular economy (E5-1)

Tietoevry's Environmental Policy outlines the company's commitment to minimizing its environmental footprint,

including aligning its operations with circular economy practices. The aim is to save natural resources and reduce

environmental impacts related to energy and material usage. The Environmental Policy is further introduced in

E1-2.

One of the main principles in the Environmental Policy is protection of the environment through generative and

circular economy. The policy outlines the Group’s aim to enhance circular economy principles by acting

according to the European Union waste hierarchy where the highest priority is to avoid and reduce waste.

Tietoevry commits to conserving natural resources through sustainable and mindful use of resources, reusing,

recycling and keeping materials in use at their highest value as long as applicable. For the ICT sector, managing

waste from electrical and electronic equipment (WEEE) is a material focus point. Following the principles set out

in the policy is done in compliance with relevant laws and regulations, best practices, and principles of

environmental stewardship, human rights, and the circular economy.

In the Environmental policy, Tietoevry commits to consider environmental aspects and footprint from life-cycle

perspective when making decisions such as choosing facility locations, energy providers, IT assets and other

products and services. Furthermore, in the Supplier Code of Conduct, Tietoevry specifies its expectation for

suppliers to apply the principles of circular economy including whole life costing and life cycle perspective in

design, manufacture, transport, recycling and disposal. As Tietoevry is not a manufacturer, the Policy does not

explicitly mandate on the use of virgin resources.

A key principle in Tietoevry’s Environmental Policy is to enhance its positive impact. This principle guides the

company in leveraging the opportunity that resource use and circular economy presents for Tietoevry. Tietoevry

commits to the positive impact by evaluating environmental handprint measures related to the products and

services Tietoevry provides to its customers and seeing technology as an enabler and accelerator in the journey

towards a more sustainable and circular society.

Actions

Actions and resources related to resource use and circular economy (E5-2)

Key actions related to circular economy are connected in various ways in upstream, downstream, and own

operations.

The technology sector is very dependent on devices in which rare minerals are an important component.

Tietoevry therefore has a clear responsibility, both in terms of not wasting any natural resources and making sure

end-of-life handling is done in the most responsible way possible. The company has committed to minimizing the

negative environmental and social impacts of device production and logistics.

Tietoevry's key actions to enhance circular economy practices are connected to responsible and efficient

sourcing processes, i.e. making purchasing decisions that maximize value and minimize waste. Reusing and

recycling hardware in a structured manner is an important step towards enabling circular economy practices,

both for Tietoevry and its customers.

Responsible sourcing processes and engagement activities cover Tietoevry's global operations, including the

upstream and downstream value chain. Tietoevry is responsible for hardware consisting of various types of

computers and mobile devices that are provided to approximately 23 000 employees as personal IT equipment.

The company's Customer Operations team also supports the customers’ end-users with devices such as laptops

and smartphones, the volume of which is much larger than Tietoevry’s own. Tietoevry’s sourcing function

purchases hardware for its employees as well as for its customers. The function is in charge of ensuring that

customers’ and Tietoevry’s own environmental requirements are met. This includes TCO certification – an

independent sustainability certification for IT products – or Energy Star certification for hardware devices. TCO

certification covers both social and environmental impacts during the entire lifecycle. All Tietoevry’s hardware

suppliers and service providers are required to have relevant environmental certifications in place, such as

ISO 14001 or the equivalent. Tietoevry engages regularly with hardware suppliers to understand their

sustainability aspects, also taking into account the conditions of their workforce.

To better understand the needs and usage patterns of Tietoevry employees, the company collects information

about the devices – including purchase date, purchase price, and technical specifications – and combines this

with HR data. For the devices that customers source from Tietoevry, information is collected and made available

to customers by utilizing the Lifecycle Management (LCM) framework. This helps Tietoevry to direct and

recommend suitable devices for people making purchases, by taking into consideration the role of the device

and limiting energy consumption, material usage, and GHG emissions.

During 2024, Tietoevry’s five specialized end-to-end business units increased their focus on and ownership of

the company’s circular economy work. This is a result of continuous awareness-raising efforts across the

company. In 2024, Tietoevry implemented a process to increase the secondary laptop return rate, which

resulted in more devices being returned during the year. Tietoevry has collaborated with its waste recovery

partners to improve processes and reporting. By ensuring a second or third life for a laptop or a server, and by

ensuring that end-of-life treatment is handled by certified suppliers, Tietoevry has improved reuse and recycling

over the past years. However, for countries outside of Europe, hardware is not always processed in a circular

manner and insights into the hardware downstream lifecycle may not be available. Tietoevry has plans to

increase the scope to ensure proper lifecycle management of hardware outside of the Europe in the coming

years.

To ensure sound electronic waste management practices, Tietoevry has collaborated with material recovery

partners. The aim is to ensure visibility into material reuse and end-of-life treatment processing and outcomes for

devices that cannot feasibly be reused. Tietoevry relies on recovery partners' procedures for proper treatment to

maximize hardware reuse.

To further support these actions, Tietoevry actively promotes supplier engagement, awareness and

communication activities, EMS implementation, and continuous improvement and overall development of

reporting. Circular economy actions are embedded into different areas such as the company’s EMS annual plan,

its sourcing processes and communication plan, and other relevant processes.

Tietoevry’s action plans for the material IROs did not require any significant operational expenditure (Opex) or

capital expenditure (Capex) for the financial year 2024.

Metrics and Targets

Targets related to resource use and circular economy (E5-3)

Tietoevry has not yet established targets related to circular economy as a financial opportunity. However, the

company plans to explore the topic further and aims to define appropriate targets in 2025.

Tietoevry tracks the effectiveness of its objectives and principles set out in the Environmental Policy through

internal processes and reporting. Since 2021, Tietoevry has monitored the metric of reuse and recycling of

hardware for internal operations and customer deliveries, with the aim of reaching a 100% share for both.

Internal hardware includes Tietoevry’s own employees’ personal IT devices, e.g. laptops and phones. External

hardware includes devices delivered to Tietoevry’s customers.

Social

S1 - Own workforce79

S2 - Workers in value chain89

S4 - Consumers and end-users93

S1 - Own workforce

Strategy

Material impacts, risks and opportunities and their interaction with strategy and business

model (ESRS 2 SBM-3)

Tietoevry’s double materiality assessments cover all employees, regardless of their role, location, or employment

type (including full-time, part-time, and temporary workers) as well as non-employees in the workforce including

self-employed people and people provided by third-party undertakings primarily engaged in employment

activities. The company recognizes that employees and non-employees across various levels and functions can

be impacted by corporate decisions, whether related to working conditions, health and safety, or organizational

changes.

Tietoevry evaluates the impacts on specific workforce segments that may face higher risks or challenges – such

as employees in technical roles, remote workers, those in high-stress environments, and underrepresented

groups like women and minorities – through regular monitoring, surveys, and engagement with workforce

representatives. Tietoevry's risk assessment, which is integrated into its human rights due diligence process,

considers factors like gender, age, job role, and location.

The risk analysis recognizes that employees and non-employees in different regions face varied risks due to local

labour laws and societal norms. Tietoevry aims to ensure compliance and address region-specific risks. Through

regular data collection, employee feedback, and collaboration with external experts, the company proactively

addresses emerging risks and protects the well-being of all employees.

No material impacts on Tietoevry’s own workforce related to the implementation of climate transition plans or

plans and actions to reduce carbon emissions were identified during the double materiality assessment.

Material negative impacts

A material negative impact related to diversity was identified as being mainly centred around gender equality. In

addition, equal pay for equal work was also identified as a material negative impact, specifically related to female

employees. Women are underrepresented in leadership and technical positions, which may infringe upon

individuals’ rights to equal treatment and opportunities, while also representing a broader industry challenge.

Furthermore, minority groups (such as people with disabilities, individuals from lower socioeconomic

backgrounds, and members of the LGBTQ+ community) may experience limited representation and lack of

diversity in leadership. Other concerns include discrimination, implicit bias, unfair hiring practices, and non-

inclusive workplaces.

The majority of Tietoevry’s operations are in areas where the risks of violations to freedom of association and

collective bargaining are low. However, some of the company’s operations are located in areas with higher risks

of violations or no guarantee of rights (37% of total operations). In countries such as China, Ukraine, Poland, India

and Serbia, employees’ rights to freedom of association, collective bargaining, and social dialogue may be

compromised. In these countries, the company strives to facilitate local forums where topics can be addressed.

For employees not covered by collective agreements, the company determines employees' working conditions

and terms of employment based on collective agreements that cover other employees in the organization.

Material positive impacts

Tietoevry's initiatives such as remote working opportunities, employee learning, and a focus on employee

development, including reskilling and upskilling, result in material positive impacts related to working time, work-

life balance, and secure employment for employees and non-employees in the workforce. The positive impacts

are consistent across various regions where Tietoevry operates, demonstrating the company’s commitment to

fostering a supportive and growth-oriented work environment. This holds true even amidst rapid changes in the

labour market, including the transformative effects of technological advancements.

Material risks

Tietoevry’s material risks related to gender equality and equal pay for work of equal value are closely tied to any

negative impacts on diversity and gender equality. Gender inequality can increase talent attraction and retention

costs, reducing productivity, and negatively affect reputation which can impact business and investment

opportunities.

Material opportunities

Material opportunities related to working conditions – specifically working time, work-life balance, and secure

employment – are tied to the positive impact the company has in these areas. By continuously striving for a

supportive work environment, Tietoevry can reduce costs through higher employee retention and decreased

recruitment needs, while contributing to growth.

Operations at significant risk of incidents of forced labour or compulsory labour

The high-skilled nature of Tietoevry’s workforce, the type of work performed, and the locations of its operations

contribute to a low risk of forced or compulsory labour within the company’s own operations. However, the

company has operations in a country classified as a high-risk country for modern slavery according to the Global

Slavery Index, namely Ukraine. The Global Slavery Index does not account for industry differences, which limits

the accuracy of the assessment's results.

Operations at significant risk of incidents of child labour

Tietoevry operates in the IT and digital services sector, which generally has a low risk of child labour. No

operations have been identified to be at significant risk of incidents of child labour.

Impacts, risks and opportunities management

Policies related to own workforce (S1-1)

Tietoevry is dedicated to respecting and supporting internationally recognized human rights for all individuals

impacted by its business operations across the regions in which it operates. This commitment is visible in key

policies, including the Human Rights Policy, the Code of Conduct, as well as the Health and Safety Policy.

The Human Rights Policy is aligned with the United Nations Guiding Principles on Business and Human Rights, the

OECD Guidelines for Multinational Enterprises, and the United Nations Global Compact (to which Tietoevry is a

signatory). The policy outlines the company’s approach to safeguarding the human rights of all individuals

affected by its business operations and partnerships, both in its own operations and throughout its value chain.

Key components of the policy include accountability for human rights across the value chain, regular human

rights due diligence, performance tracking, communication of the company’s progress, and robust mechanisms

for grievance and remediation.These together are considered appropriate mechanisms and processes to

monitor compliance with the international standards and norms mentioned above.

The Group Executive Management team is accountable for the successful implementation of the policy, which is

formally approved by Tietoevry's CEO. The policy is communicated both internally and externally, ensuring that

all employees and external partners are aware of the commitments. Tietoevry provides internal training materials

and conducts interactive information sessions to keep employees informed about the company’s human rights

due diligence progress. Performance against the policy commitments is regularly reviewed and reported as part

of Tietoevry’s corporate governance practices.

Tietoevry’s Code of Conduct (the Code) outlines the company’s ethical commitments regarding its workforce

and operations. The Code, aligned with the UN Guiding Principles on Business and Human Rights, OECD

Guidelines, and UN Global Compact, reinforces the company's ethical commitments on topics such as freedom

of association, health and safety, and fair employment. It ensures compliance with laws on working hours,

promotes work-life balance, and enforces a strong non-discrimination policy, prohibiting discrimination on

gender, identity, nationality, religion, race, age, disability, marital status, sexual orientation, political views, or

union membership. In addition, the Code outlines the company’s commitment to create an inclusive workplace

where differences are welcomed and respected, and where employees are given equal opportunities to grow.

The Code prioritizes health and safety, aiming to prevent workplace hazards, accidents, and occupational

diseases, and mandates zero tolerance for bullying, harassment, or violence. It also strictly prohibits forced,

compulsory, and child labour, including trafficking of human beings. The Code applies across all employment

aspects and in relationships with suppliers, customers, and partners. It is applicable to all employees, Board

members, subcontractors, and representatives globally.

The company is committed to respecting human rights – including preventing, mitigating, and addressing

discrimination, as outlined in its Human Rights Policy and Code of Conduct. This commitment is implemented

through ongoing human rights due diligence, encompassing the identification, assessment, investigation,

prevention, mitigation, and remediation of actual or potential adverse human rights impacts.

Management plays an active role in risk prevention and mitigation, while discrimination is addressed by

promoting clear company values and raising employee awareness about discrimination, diversity, and inclusion.

Concrete activities include mandatory training in the company’s Code of Conduct, which includes modules on

non-discrimination, as well as mandatory training in diversity, equity and inclusion for all people managers.

To support these efforts, mechanisms for grievance and remediation are in place to handle cases of harassment

and discrimination, and to foster an inclusive workplace. A whistleblowing channel allowing for anonymous

reporting provides a safe platform for submitting information on breaches of law or internal policies and rules.

Reports are logged and independently followed-up by the Whistleblowing Unit, ensuring confidentiality and

protecting whistleblowers against retaliation. Reports of a severe or sensitive character are reviewed and

followed-up by the Escalation Committee, which consists of the Head of Corporate Governance and

Compliance, Head of Group Legal & Compliance, Head of Internal Audit, Head of HR and Group Compliance

Officer.

Based on benchmarking, stakeholder consultation, and union engagement, the Code is revised annually to align

with best practices and stakeholder expectations. All employees agree to the Code upon joining the company

and complete an annual e-learning course. Tietoevry’s HR and Group Compliance teams support adherence to

these ethical standards. The Code is approved by the CEO and the Chief Financial Officer is responsible for the

implementation of the Code.

Tietoevry’s commitment to employee well-being is further reflected in its Health and Safety Policy, which focuses

on promoting both physical and mental health by maintaining a safe and healthy work environment. The policy

includes measures to identify and minimize workplace hazards, provide employees with the necessary training,

and ensure emergency preparedness. It also emphasizes compliance with relevant health and safety laws,

regulations, and standards.

All incidents, risks, and compliance issues related to health and safety are reported through the company’s risk

management system. The Head of Human Resources (HR) is responsible for implementing the policy, and

employees are encouraged to actively contribute to maintaining a safe workplace by reporting hazards and

incidents. The policy is approved by the Head of HR and oversight of the Code’s implementation lies with the

Head of Workplace Innovation & Facilities.

Processes for engaging with own workforce and workers’ representatives about impacts (S1-2)

Tietoevry engages both directly with its own workforce and through workers' representatives such as unions,

employee representation committees, and work councils both locally and internationally (through the European

Works Council). Direct engagement with its own workforce takes place through regular reviews of feedback

collected via employee surveys, performance evaluations – including development planning – as well as other

engagement mechanisms. Employee surveys are conducted several times a year to ensure a continuous

dialogue within the company. Quantitative results are shared and open for all employees, and systematic

dialogues are driven in the company. The outcomes of these engagements are analyzed to measure employee

satisfaction, work-life balance, and overall well-being. Adjustments to policies and programmes are made based

on these insights. Additionally, the company regularly assesses the impact of agreements with workers'

representatives to ensure that the evolving needs and perspectives of its workforce are addressed.

Tietoevry maintains agreements with workers' representatives that uphold the respect for the human rights of its

workforce, as stipulated in the Code of Conduct. These agreements facilitate regular communication and

discussions on human rights and labour rights, including working conditions and collective bargaining. By

ensuring that employee representatives can perform their functions unhindered and without fear of retaliation,

Tietoevry gains valuable insights into employee perspectives and is able to contribute to a supportive and

inclusive work environment. The company does not have a Global Framework Agreement in place.

The company holds regular local meetings with unions, in addition to specific meetings based on formal

negotiation meetings set by local laws. Regular monthly meetings with the European Works Council (EWC) are

conducted, including two in-person meetings per year. The responsibility for ensuring effective engagement lies

with Human Resources (HR). The Head of HR, representing the most senior role accountable, oversees the

execution of engagement initiatives and ensures that the insights gained inform Tietoevry's strategy process and

decision-making.

Process to remediate negative impacts and channels for own workers to raise concerns (S1-3)

Tietoevry is committed to ensuring effective grievance and remediation mechanisms, as outlined in its Human

Rights Policy and its Code of Conduct. The company maintains open, transparent communication channels

where internal and external stakeholders can raise concerns without fear of retaliation. Employees and other

stakeholders can report breaches of the Code of Conduct, internal policies, or laws to their managers, HR

partners or directly to the Group Compliance Unit. Additionally, such concerns can be reported through

Tietoevry’s third-party-operated whistleblowing channel, which allows for anonymous submissions. More

information about Tietoevry’s whistleblowing process is available in G1 - Business Conduct.

Tietoevry is dedicated to the well-being of its workforce, comprising both employees and other workers. If the

company identifies that any action or actions have caused or contributed to a material negative impact on its

workforce, immediate and appropriate steps are taken to remediate the situation.

The company’s approach to remediation is outlined in the Human Resources Policy and Human Rights Policy, and

in more detail in local employee handbooks specific to each country of operation, ensuring that the remediation

measures, including disciplinary practices, are both equitable and tailored to local regulations.

Actions

Taking action on material impacts on own workforce, and approaches to mitigating material

risks and pursuing material opportunities related to own workforce, and effectiveness of those

actions (S1-4)

Tietoevry’s approach to addressing the material impacts on its workforce, managing key risks, and pursuing

significant opportunities is grounded in its sustainability due diligence framework. This framework includes

processes to identify, mitigate, and remediate both actual and potential negative impacts on employees. Due

diligence is an ongoing effort, ensuring that workforce-related challenges are effectively addressed in a timely

manner.

The framework is reinforced by regular management training programmes that enhance awareness and equip

leaders with the skills needed to navigate workforce challenges. Furthermore, policies are continuously refined

to reflect emerging needs and align with industry best practices.

During the year, Tietoevry has carried out several activities related to its material impacts, risks and

opportunities. The scope of the key actions includes all countries and geographical areas where Tietoevry

operates.

Regarding the negative impact related to freedom of association, collective bargaining, and social dialogue, the

company has conducted several activities during the year. For example, the company incorporated a question

about freedom of opinion in the anonymous employee survey. This provides regular insights into employee

perceptions about their freedom to express opinions and have union representation. The company has

continued to promote its Code of Conduct values, which emphasize support for freedom of association and the

right to collective bargaining. Future actions will involve facilitation of employee representation committees or

work councils, ongoing support for regular engagement with employee representatives, and continuous

promotion of the Code of Conduct values. However, in countries where collective bargaining is not legally

recognized or practised, the company aims to establish alternative forms of employee representation and

dialogue. The expected outcomes include stronger employee representation, improved communication

channels between employees and management, and enhanced trust and cooperation within the workplace.

While Tietoevry has taken steps to promote gender equality in recent years, progress has been slower than

anticipated. Addressing challenges such as the under-representation of women remains a priority, and the

company is committed to accelerating efforts in this area as part of its sustainability strategy. Tietoevry will

maintain a strong emphasis on diversity in leadership roles, collaborating with business areas to measure

progress against established targets.

Key actions related to gender equality and equal pay for equal work during 2024 included the development of a

new Human Resource Policy, further underlining the company’s commitments to gender equality. The company

has developed a new mandatory training on diversity, equity, and inclusion (DEI) for managers, re-established

the Women@Tietoevry employee resource group (ERG) in Sweden and Norway, and launched external

campaigns to attract female tech talent. Additionally, cooperation with female tech networks in the Nordics,

including Women in Tech Stockholm, Helsinki, and ODA Nettverk in Norway, has been strengthened.

Additionally, in 2024, Tietoevry conducted a global pay gap analysis to identify and address disparities, with

specific efforts focused on the gender pay gap. This included adjustments of flagged salaries during the annual

salary review process. The analysis also helped to refine job structures and improve data quality for future

evaluations. Furthermore, new targets related to gender equality, equal pay and diversity were also developed

and implemented to improve tracking of the company’s performance. The company’s Code of Conduct e-

learning, which includes modules about DEI, continued to be a mandatory training for all employees during the

year.

Tietoevry remains committed to its aspiration to reach a gender split of 49/49 within the overall workforce over

time. In 2024, the aspiration was reformulated with the purpose of also including those who identify outside of

the binary, and to create a workforce that reflects the diversity of the communities it serves.

Long-term activities related to gender equality and diversity that were initiated before 2024 also continued

during the report year. These included diversity-focused recruitment, improved internal reporting on gender

balance figures, and diversity succession planning. Also, long-term incentive plans – including the target of

increasing the share of female recruits – continued to be part of the company’s agenda.

During 2025, Tietoevry will continue policy development and reviews in relation to DEI. Additional training for all

employees and managers will be developed to increase awareness around diversity and inclusion. Gender pay

gap analysis will be a standard part of annual assessments going forward and additional ERGs will be

established. Activities carried out and planned related to gender equality and equal pay for equal work as well as

workforce diversity are expected to positively impact these topics, while also mitigating risks related to gender

equality.

In 2024, Tietoevry continued to promote a healthy work-life balance including reasonable working time through

arrangements such as remote work options and adjustable working hours. The company monitors overtime on a

quarterly basis and in 2024 set itself the target of keeping overtime below 3% of normal average working hours.

Tietoevry strives to ensure that its time reporting system complies with local labour laws, particularly in countries

that have defined legal overtime limits. In locations with active union participation or work councils, overtime

reporting is done in collaboration with these bodies to provide collective oversight and support.

Tietoevry’s company-wide employee survey – conducted once in 2024 – featured workload as a key category,

providing valuable insights into employee experiences and perceptions related to work demands. Additionally,

employee surveys for specific functions and business areas were carried out four times during the year. Work-

life balance was also regularly evaluated through ongoing manager-employee check-ins, allowing for direct

support of employee well-being. These insights enable the company to further improve its efforts in terms of

working time and work-life balance by enabling data-driven decisions.

Activities going forward will continue to include a hybrid work setup, adjustable working hours and ongoing

dialogues between employees and managers, with the aim of promoting a healthy work-life balance.

Secure employment is supported by Tietoevry's professional development framework, which emphasizes

regular development dialogues and check-ins to ensure employees receive continuous support from their

managers. The employee survey includes elements that evaluate the company’s goal-setting and professional

growth, providing insights for continuous improvement. During 2024, there was an increased focus on

development dialogues as a means to support employees in having relevant skills in a fast-paced changing

industry. Future actions include communication plans with managers, training, and enhanced monitoring to

ensure Tietoevry continues to have a positive impact on secure employment.

The actions focused on work-life balance, working hours, and secure employment are anticipated to sustain

Tietoevry’s positive impact in these areas while fostering further improvements. Expected outcomes include

healthier work-life balance for employees, increased engagement, reduced burnout, and enhanced overall well-

being. These positive effects are also expected to create financial opportunities by enhancing the company’s

attractiveness as an employer, improving employee retention, increasing productivity and lowering recruitment-

related costs.

Tietoevry strives to ensure its practices do not cause or contribute to material negative impacts by aligning

business operations with its Code of Conduct and Human Rights Policy. The company conducts regular audits

and risk assessments of its procurement, sales, and data use policies to ensure alignment with its values.

Tietoevry actively engages with stakeholders, including employees and suppliers, to gather feedback and

address concerns. In instances where tensions arise between business pressures and the prevention of negative

impacts, clear management policies guide decision-making, supported by continuous feedback and learning

mechanisms. This approach enables Tietoevry to adapt and respond effectively to any potential issues.

The resources dedicated to managing material IROs related to the workforce include specialized teams with

expertise in these areas. These teams play a key role in developing action plans, supporting the implementation

of initiatives, and providing guidance to help ensure compliance with relevant policies and standards,

recognizing that compliance is a shared responsibility across the organization.

In addition to human resources, Tietoevry invests in robust platforms to support employee training, facilitate

meaningful development discussions, and conduct regular employee surveys. These tools not only help raise

awareness and enhance skills but also provide critical insights into employee needs and organizational

performance. Furthermore, resources are directed towards fostering a culture of inclusivity and collaboration,

with mechanisms in place to promote continuous feedback and engagement.

Tietoevry’s action plans for the material IROs did not involve significant operational (Opex) or capital (Capex)

expenditures during the 2024 financial year. Additionally, no future financial resources (Opex or Capex) have

been allocated to future action plans at this time.

Metrics and targets

Targets related to managing material negative impacts, advancing positive impacts, and

managing material risks and opportunities (S1-5)


Material topic	Type of IRO related to target	Target	Result 2024
Diversity, gender equality and equal pay for work of equal value	Actual negative impact and risk	33% of underrepresented gender in all board positions by 2026 (new target FY2024)	30%
Diversity, gender equality and equal pay for work of equal value	Actual negative impact and risk	30% of underrepresented gender in leadership positions by 2030 (new target FY2024)*	25%
Diversity, gender equality and equal pay for work of equal value	Actual negative impact and risk	37% recruitment of female recruits by 2025	34%
Diversity, gender equality and equal pay for work of equal value	Actual negative impact and risk	Ensure the unexplained gender pay gap remains below 5% threshold and is further reduced towards 2026 (new target FY2024)	3%
Diversity, gender equality and equal pay for work of equal value	Actual negative impact and risk	100% people managers trained in DEI on an annual basis (new target FY2024)	86%
Working time and work-life balance	Actual positive impact	Ensure work-life balance by keeping overtime at low level – not exceeding 3% of normal average working time (new target FY2024)	1%
Secure employment	Actual positive impact	Annual My Growth completion rate of 90% for all employees – covering work and development goals (new target FY2024)	81%
*Definition of leadership positions is senior managers: Job grade 15 and higher + CEO

Tietoevry’s target-setting methodology combines benchmarking, legislative review, and employee needs

assessment, using data from internal surveys, compliance reports, international standards, and input from

employee committees. Employees and management have provided essential feedback through consultations,

ensuring that goals are practical and relevant. Final targets received approval from Group Executive

Management. During target setting, past sustainability performance was also reviewed with employees. Cross-

functional teams from strategy, HR, Finance, and Sustainability contributed insights, while employee dialogues

provided diverse perspectives, helping shape targets aligned with organizational and workforce needs.

Tietoevry’s targets addressing material risks and negative impacts related to gender equality, equal pay and

diversity are aligned with the company's commitments to inclusion, diversity and non-discrimination outlined in

its Code of Conduct. Targets related to working time, work-life balance and secure employment are related to

the company’s commitments to fair employment conditions, as outlined in the Code of Conduct.

All targets, except for the share of female recruits, have 2024 as the base year. The share of female recruits,

however, uses 2020 as its base year, with a baseline value of 27%. The target scope for senior manager by

gender does not cover Avega, Bekk, Eye-share, EVRY India, the Infopulse units in Brazil, Germany, Poland, and

Ukraine as these entities operate under a different job grade system. The target scope related to the diversity,

equity and inclusion training does not cover Bekk, which operates fully as a portfolio company.

Targets are measured annually, with specific target periods outlined in the target table. Additionally, several key

targets are monitored quarterly, including reaching 30% of underrepresented gender in leadership positions by

2030, ensuring 37% of recruits are female by 2025, maintaining work-life balance by keeping overtime at low

levels, and achieving a 90% completion rate for the annual My Growth review (which covers work and

development goals for all employees). Quarterly reports are generated both at business and Group levels.

Measurements of the targets are not validated by any external body except for the assurance providers and no

milestones or interim targets have been set.

During Tietoevry's double materiality assessment, new material topics were identified, leading to the

establishment of new targets. These targets were approved by GEM in early 2024 and remain unchanged,

except for the My Growth target, which has been revised from 'Annual My Growth completion rate of 90% for all

employees – development plans addressed' to 'Annual My Growth completion rate of 90% for all employees,

covering work and development goals'.

Tietoevry values employee engagement in tracking sustainability and operational targets, and fostering

transparency and collaboration. Through structured channels, employees are regularly updated on progress in

areas like diversity, inclusion, and well-being. Quarterly performance reports related to targets are shared with

respective businesses, empowering them to follow performance and contribute to improvement efforts.

Employee engagement surveys are also used to monitor targets for satisfaction, work-life balance and inclusivity,

and the insights are shared to inform decision-making and adapt operations as needed.

In 2024, 30% of board positions were held by the underrepresented gender, showing progress towards the 33%

target by 2026. The company is on track, with a 3-percentage point gap requiring continued efforts but no

significant deviations from the planned trajectory. The 26% representation in leadership positions falls short of

the 2030 target of 30%, highlighting the need for further efforts. The achievement of 34% female recruits is

below the company’s initial plan, yet the overall increase in female recruits reflects a positive trend. Maintaining

focus will be crucial to reach the 37% target within the next year, despite challenges such as lower recruitment

volumes and fewer graduates. Close collaboration with business units is essential to align hiring processes and

facilitate regular progress reporting against established targets.

During 2024, the first year of conducting a company-wide gender wage gap assessment, Tietoevry set itself the

target of keeping the unexplained (adjusted) gender wage gap below the 5% threshold and achieved a result of

3% globally. This strong outcome highlights Tietoevry’s commitment to pay equity through transparent practices,

benchmarking, and structured compensation processes. As the initial assessment, it establishes a valuable

baseline for future improvements. Tietoevry remains dedicated to further reducing disparities by enhancing

monitoring and conducting regular reviews, ensuring that fairness and equity remain central to its compensation

practices.

The target of achieving 100% annual training in DEI for all people managers was not fully met. This was the first

year such training was conducted, and its launch in Q4, coinciding with other ongoing learning activities within

certain businesses, may have impacted completion rates. As this training was introduced in 2024, no significant

trends can yet be observed.

The My Growth completion rate for 2024 stands at 81%, which is below the target of 90%. This shortfall

highlights the necessity to evaluate the existing processes and practices associated with the My Growth

programme. It is essential to identify any barriers that may have prevented employees from completing their

work and development goals to ensure that reskilling and upskilling needs are identified and managed. As this is

a new target for the reporting year, no trends can be observed at this time.

The progress towards the target of maintaining overtime at a low level is in line with initial plans, as the 2024

result of 1% is well below the 3% threshold. This aligns with the objective of ensuring work-life balance. Future

evaluations will be necessary to assess ongoing performance against this target. Since this is a new target, it is

not possible to determine a trend based on previous performance.

Involvement of workforce or workers’ representatives in identifying lessons or improvements as a result of

performance against targets has not been implemented. Relevant engagement activities will be explored during

2025.

Characteristics of the undertaking's employees (S1-6)

In 2024, Tietoevry recorded a 14% employee turnover rate of which 8% were voluntary. In total, 3 566

individuals left the company.

Employee data is collected via the Human Capital Management Platform (Workday) as well as through a manual

process from subsidiaries not integrated in Workday. For new hires, turnover is calculated based on average

headcount on the last day of the previous year and the last day of the reporting year. Headcount numbers are

reported at the end of the reporting period. Assumptions are not used in the reporting related to metrics in S1-6.

In the Financial Statements, personnel are reported based on the average number of full-time employees during

the year and the total number of full-time employees at year end.

Employee headcount by gender


2024
Gender	Number of employees (headcount)
Male	16 422
Female	7 655
Other	15
Not reported	0
Total employees	24 092

Employee headcount in countries with at least 50 employees


2024
Country	Number of employees (headcount)
Austria	278
Bulgaria	690
China	1 026
Czech Republic	2 504
Denmark	54
Estonia	131
Finland	3 099
Germany	103
India	4 178
Latvia	1 159
Lithuania	136
Norway	3 874
Paraguay	91
Poland	955
Serbia	92
Slovakia	148
Sweden	3 683
Ukraine	1 699
US	118

Information on employees by contract type, broken down by gender (headcount)


2024
Female	Male	Other	Not disclosed	Total
Number of employees
7 655	16 422	15	0	24 092
Number of permanent employees
7 503	15 999	15	0	23 517
Number of temporary employees
152	423	0	0	575
Number of non-guaranteed hours employees
5	5	0	0	10

Collective bargaining coverage and social dialogue (S1-8)

Employment Terms and Conditions

Tietoevry ensures that the working conditions and terms of employment for its employees are largely determined

or influenced by collective bargaining agreements, particularly within the European Economic Area (EEA).

In consideration of the working conditions and terms of employment of non-employees, Tietoevry aims for

transparency and adherence to industry standards where collective bargaining agreements are applicable.

While specific estimates of coverage rates for non-employees are not available, the company strives to ensure

fair and equitable treatment across all its workforce segments. The percentage of total employees covered by

collective bargaining agreements during 2024 was 42%.

In relation to social dialogue, Tietoevry actively facilitates structured engagement between employees and

management. Employees within the European Union (EU) are covered by a European Works Council (EWC)

agreement. This agreement ensures robust representation and dialogue on matters concerning working

conditions, employment terms, and other significant workplace issues. The percentage of total employees

covered by workers’ representatives in the EEA during 2024 was 66%.

Data related to collective bargaining coverage and social dialogue is collected from HR specialists in all countries

of operations via a manual process. Data reported includes end-of-year headcount and percentage of

employees covered by collective bargaining agreements.

Collective bargaining coverage and social dialogue


2024
	Collective bargaining coverage	Social dialogue
Coverage Rate	Employees - EEA	Workplace representation (EEA only)
0–19%	Bulgaria, Czech Republic, Denmark, Estonia, Germany, Latvia, Lithuania, Poland, Slovakia	Bulgaria, Czech Republic, Denmark, Estonia, Latvia, Slovakia
20–39%	—	—
40–59%	—	—
60–79%	—	Poland
80–100%	Austria, Finland, Norway, Sweden	Austria, Finland, Germany, Lithuania, Norway, Sweden

Diversity metrics (S1-9)

Top management is defined as Tietoevry's Group Executive Management team. Data is collected from Workday

in terms of headcount by the end of the year.


2024
Gender	Number of employees at top management level	Percentage of employees at top management level
Male	8	89%
Female	1	11%

Age distribution across workforce

Data regarding distribution of age across the workforce is collected from Workday and via Excel in terms of

headcount by the end of the year.


2024
Age distribution in workforce	Headcount of employees
Under 30 years old	4 259
30–50 years old	14 890
Over 50 years old	4 943

Remuneration metrics (pay gap and total remuneration) (S1-16)

Tietoevry has undertaken a thorough analysis of employees' base pay to assess the gender pay gap, adhering to

well-defined principles and rules. Assessment has included both the unadjusted pay gap, which amounted to

12% during 2024, as well as the adjusted gender pay gap, which was 3% during 2024.

The unadjusted gender pay gap is determined as the difference in average annualized full-time salary between

male and female employees, expressed as a percentage of the average annualized full-time salary of male

employees.

The adjusted gender pay gap evaluation framework involves assessing compensation within specific peer

groups, based on country, business, and job profiles for employees in the centralized human resource

management system and similar categorizations for those outside of the centralized system. This is to ensure

that peer groups represent individuals performing a similar type of work in the same business and location.

Furthermore, the analysis factored in several key variables, such as employee work-life experience, tenure

within the company and their current role, and supervisory responsibilities.

The total remuneration ratio at Tietoevry is determined by comparing the annual remuneration of the highest-

paid individual to the median annual remuneration of other employees, excluding the highest-paid individual.

The total remuneration data was gathered at an individual level from the company’s central human resource

system, along with inputs from country HR representatives where needed (for locally administered benefits,

pensions, and allowances). During 2024, the total remuneration ratio was 34%.

To allow for a meaningful comparison of employee remuneration across different countries, Tietoevry applied

the World Bank's Purchasing Power Parity (PPP) conversion factor to all individual remuneration data. The PPP

conversion factor was applied based on the employee's country of employment to determine employee total

remuneration in international dollars (total remuneration in local currency/PPP conversion factor), which is then

used to further determine the total remuneration ratio.

Incidents, complaints and severe human rights impacts (S1-17)

Tietoevry collects data on incidents, complaints, and severe human rights impacts through the company's

whistleblowing channel as well as from HR partners. Data is consolidated at the end of the year for reporting

purposes. The company also reviews any complaints that might have been channelled to the National Contact

Points.

During 2024, a total of 62 cases were submitted to HR partners and the Whistleblowing Unit. The number of

reported discrimination and harassment incidents amounted to 30 for the reporting year. Out of these, three

cases contained discrimination allegations, and 27 cases were harassment related. Following due investigation,

27 cases were closed, and two are still ongoing. In total 16 remediation plans were implemented, with six results

reviewed through internal management review processes. One remediation plan is still under implementation,

and 27 incidents are no longer subject to action.There were no fines, penalties or compensation for damages

resulting from any of the reported cases. No cases of severe human rights incidents – including forced labour,

human trafficking, or child labour – were reported during the year.

S2 - Workers in value chain

Strategy

Material impacts, risks and opportunities and their interaction with strategy and business

model (ESRS 2 SMB-3)

Tietoevry identified actual negative impacts related to collective bargaining and freedom of association for value

chain workers. Furthermore, a potential negative impact was identified related to value chain workers' right to

equal treatment and opportunities for all.

The majority of Tietoevry’s purchases occur within the Nordic countries, with its top 200 suppliers accounting for

85% of total supplier spend, ranked by expenditure. Suppliers based in Finland, Sweden, and Norway represent

more than 70% of the company’s annual external spend. Hence, the risk for Tietoevry being directly involved in

any widespread and systematic negative impacts is limited. However, Tietoevry is aware of the fact that, through

its business relationships with its suppliers in lower tiers of the supply chain, the company may be linked to

impacts originating from suppliers located in regions with weak labour protections and regulatory oversight

where these impacts occur.

In these regions, workers may face restrictions on their rights to organize and engage in collective bargaining due

to both local labour practices and the structure of global supply chains. These negative impacts are not isolated

incidents, but reflect ongoing challenges in industries such as electronics manufacturing and raw material

extraction, where labour rights violations are more common. Additionally, the transition to greener and climate-

neutral operations could further exacerbate these risks, particularly in sectors such as mining for minerals

required for sustainable technologies. Restructuring and an increased demand for critical minerals, coupled with

lack of careful management, may lead to worsening labour conditions, impacting workers' rights to collective

bargaining and freedom of association.

Workers who could be materially impacted in Tietoevry’s value chain include migrant workers in upstream

activities such as mineral extraction. This is a key part of Tietoevry's hardware sourcing value chain. Therefore,

Tietoevry sources hardware from reputable global brands with established programmes aimed at mitigating the

risk of workers being negatively impacted. Migrant workers – potentially a part of Tietoevry's value chain – may

face exploitation and a lack of protection. Women in male-dominated sectors such as the technology sector may

encounter discrimination and pay gaps, while young workers and subcontracted staff may face job insecurity

and lower wages. Trade unionists in regions hostile to unionization may risk retaliation, and home workers –

such as remote IT service providers – may experience isolation and a lack of protection. Additionally,

maintenance staff, service workers in offices and data centres, and subcontracted workers in technology,

hardware installation, and logistics may also be subject to impacts, while not considered material to Tietoevry.

Tietoevry has not identified the risk of child labour and forced or compulsory labour in its own operations as

material, but there is an elevated risk of this further down the supply chain, particularly in the extraction sector

from which the metals and minerals used in Tietoevry's hardware are sourced. Some suppliers may be operating

in regions with known forced labour issues, particularly in raw material extraction or manufacturing. Countries

with weaker labour laws, like parts of Asia and Africa, pose heightened risks. Although Tietoevry does not

directly source raw materials, it relies on suppliers for electronic components that may include minerals like

cobalt and tin, often sourced from areas known for forced labour. This may be the case especially in artisanal

mining, mainly taking place in African countries. Additionally, outsourcing services or working with third-party

contractors in regions with forced labour risks expose Tietoevry indirectly.

In 2024, Tietoevry identified two cases of potential non-compliance with the UN Guiding Principles on Business

and Human Rights, ILO Declaration on Fundamental Principles and Rights at Work, or OECD Guidelines for

Multinational Enterprises involving value chain workers. The first case involved a Norwegian supplier accused of

poor working conditions, leading to an external inquiry under the Norwegian Transparency Act. Tietoevry

investigated the case and engaged in dialogue with the supplier where compliance with Tietoevry’s Supplier

Code of Conduct was addressed. Following the discussions, the matter was resolved.

The second case arose from a customer inquiry about how Tietoevry ensures respect for human rights and

working conditions among its limited number of suppliers located in Israel. Tietoevry conducted a risk

assessment, consulted a human rights expert, and engaged with relevant customer teams. The situation is being

monitored, with further supplier dialogues planned for 2025. This has prompted Tietoevry to further strengthen

its human rights due diligence processes, with plans to explore additional enhancements in 2025.

Tietoevry is not aware of any severe human rights issues or incidents in its value chain reported during 2024.

Given that Tietoevry has not identified any actual or potentially positive impact on workers in the value chain,

there are no activities resulting in positive impacts to be reported yet. Additionally, the results of the double

materiality assessment indicated that the company does not have any material risks and opportunities arising

from impacts and dependencies on workers in the value chain.

Impacts, risks and opportunities management

Policies related to value chain workers (S2-1)

Tietoevry is dedicated to respecting and supporting internationally recognized human rights for all individuals

impacted by its business operations across the regions in which it operates, including workers in the value chain.

This commitment is formalized through several key policies, including the Human Rights Policy, Code of Conduct,

the Supplier Code of Conduct and Tietoevry's Source to Pay Policy. The commitments in the Human Rights Policy

apply equally to Tietoevry's workforce and value chain workers.

In addition to the Human Rights Policy and the Code of Conduct, Tietoevry’s Supplier Code of Conduct (The

Supplier Code) is the key policy that addresses impacts on value chain workers. It communicates the company's

ethical and business principles, which all business partners are expected to follow. For clarity, when Tietoevry

acquires new businesses, the transferred supplier contracts do not initially include Tietoevry’s Supplier Code.

However, in any contract renewal or new contract the Supplier Code is incorporated.

As outlined in the Supplier Code, Tietoevry upholds and respects all internationally recognized human rights and

adheres to the UN Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational

Enterprises, and the UN Global Compact. The Supplier Code aligns fully with applicable ILO conventions,

addressing the prohibition of forced and child labour, and the right to freedom of association, and collective

bargaining rights. Rooted in these principles, it also incorporates additional expectations tailored specifically to

Tietoevry's standards.

The key contents of the Supplier Code define minimum requirements in areas such as human rights, labour

conditions, environmental responsibility, business ethics, and legal compliance. It emphasizes the need for

suppliers to support freedom of association, enable collective bargaining, and safeguard workers’

representatives from discrimination while allowing them to fulfil their responsibilities. The Supplier Code also

sets out requirements for equal treatment and opportunities for all employees. It mandates that employees must

not face discrimination or harassment – neither physical, sexual, psychological, or verbal – based on gender,

nationality, religion, race, age, disability, sexual orientation, pregnancy, marital status, political opinion, union

membership, social or ethnic origin, or any other status protected by local laws. Human rights must be

understood, respected, and applied equally to all workers, whether temporarily or permanently hired or

contracted. In cases where local laws conflict with the principles in the Supplier Code, the highest standard

should prevail to ensure sustainable operations.

Input for the annual review of the Supplier Code is gathered through benchmarking, stakeholder interviews, and

expert feedback. This process ensures alignment with stakeholder priorities and addresses their concerns.

Regular reviews ensure the policy remains responsive to evolving stakeholder interests and expectations.

Engagement with value chain workers is indirect, primarily via supplier management.

It is the responsibility of the supplier to ensure that its employees, relevant affiliated companies, and

subcontractors are informed about the content and comply with the requirements. Tietoevry strives to embed

the Supplier Code across its supply chain through integration into contracts, training programmes, and

compliance mechanisms. Responsibility for implementing the Supplier Code lies with Tietoevry's Group Chief

Procurement Officer (CPO).

The key content of the Source to Pay Policy is to ensure effective supplier management with the goal of

maximizing value, minimizing waste and total costs, and ensuring compliance with both internal and external

requirements. The policy is valid for all Tietoevry employees, businesses and operations and its objective is to

ensure that the company engages with suppliers that meet Tietoevry’s standards for responsible supply, while

also requiring those suppliers to uphold the same standards with their own partners. The Group CPO is

responsible for implementing the policy. In line with Tietoevry’s standard procedures, the policy is updated

annually based on alignment with stakeholders’ and experts’ priorities and concerns. The policy content is made

available to all employees through a mandatory e-learning module in Tietoevry Essentials.

Processes for engaging with value chain workers about impacts (S2-2)

As most of Tietoevry’s value chain workers are several tiers down, the company has limited influence over their

working conditions. Besides direct engagement during on-site audits, no general process for interacting with

value chain workers has been established due to this limited influence. Given the limited engagement with value

chain workers, the company does not currently assess the effectiveness of such engagement. Indirect

engagement, primarily through the supplier’s management, occurs via selected management reviews conducted

as part of the company’s annual risk assessment of its supplier base. The topics of these reviews vary yearly to

address the company’s identified material impacts, risks, and opportunities. The outcomes of these reviews,

along with audit findings, guide decisions and actions to manage actual and potential impacts on value chain

workers. Tietoevry conducts 8-10 management reviews annually, typically with different suppliers each year. For

hardware suppliers, these reviews take place yearly, focusing specifically on conflict minerals. The Group CPO,

along with Sourcing Managers and Group Sustainability, is responsible for ensuring that this engagement occurs

and that the results, when deemed valuable, influence Tietoevry’s approach to supplier management. The

company has not yet undertaken efforts to understand the perspectives of workers who may be particularly

vulnerable or marginalized.

In 2025, Tietoevry intends to initiate direct dialogues with value chain workers closer to the company’s own

operations, such as cleaners and canteen staff, to inform future decisions and activities.

Processes to remediate negative impacts and channels for value chain workers to raise

concerns (S2-3)

Tietoevry is dedicated to maintaining effective grievance and remediation mechanisms, as detailed in its Human

Rights Policy and Supplier Code. The company offers transparent communication channels for all stakeholders to

raise concerns without fear of retaliation, including a third-party-operated whistleblowing channel for

anonymous reports from external parties, such as value chain workers. More information about the

whistleblowing process can be found under G1 - Business Conduct. Tietoevry has not yet assessed whether the

value chain workers are aware of and trust the company’s processes to raise their concerns or needs. Nor has

Tietoevry explicitly required its suppliers to provide a channel for value chain workers to raise concerns. This will

be considered during the annual review of the Supplier Code in 2025. As a result, the company does not yet

track or monitor the effectiveness of suppliers' channels.

On-site audits help Tietoevry detect any significant risks to workers in the value chain. If an audit reveals a

potential issue, Tietoevry collaborates with the supplier to develop an action plan for correction within a

specified timeframe. In cases where a complaint or issue arises, Tietoevry monitors the situation closely until it is

fully resolved, and conducts follow-ups with both the supplier and affected workers to ensure that

improvements are effectively implemented and sustained. If Tietoevry is confirmed to have the obligation to offer

or participate in providing remedy to value chain workers, such a situation would be dealt with individually and

on a case-by-case basis. The effectiveness of remedies provided has not been assessed, as the company has

not encountered a situation of material negative impact on workers in the value chain requiring remedial action.

Actions

Taking action on material impacts on value chain workers, and approaches to managing

material risks and pursuing material opportunities related to value chain workers, and

effectiveness of those actions (S2-4)

Tietoevry is committed to identify, mitigate, and prevent any negative impact related to the company’s

operations throughout the value chain. Key actions aimed to prevent or mitigate identified impacts, addressing

all three material topics relevant to value chain workers during the reporting year are outlined below. The scope

of the key actions covers Tietoevry’s suppliers.

• Sustainability assessment: Integrated into the regular supplier selection process to evaluate suppliers'

commitment to environmental, social, and governance (ESG) issues. From 2024 onwards, results are key

in finalizing supplier selections, ensuring alignment with Tietoevry’s vision, goals and policy objectives

• Annual risk assessment: Assessed all suppliers, classifying them into risk categories allowing for a

targeted approach to mitigate supply chain risks, particularly in high-risk areas, which strengthens overall

supply chain resilience. High-risk suppliers underwent follow-up activities, see below

• Follow-up activities:

◦ Conducted three on-site audits to receive a deeper insight into suppliers’ practices, ensuring

compliance with regulations and Tietoevry-specific standards

◦ Held three management reviews with hardware suppliers with the expected outcome of

gaining a clearer understanding of the material sourced. Additionally, dialogues aim to mitigate

supply chain disruption risks stemming from geopolitical instability or sanctions, and also to

ensure supplier compliance with regulations like the EU Conflict Minerals Regulation

◦ Organized eight management reviews with selected suppliers to discuss achieving zero

emissions in the value chain with the expected outcome of promoting proactive action,

contributing to long-term carbon reduction in the company’s value chain

◦ Engaged in six targeted dialogues encouraging suppliers to set SBTs. Regular engagements,

such as dialogues, build trust and encourage collaboration, fostering a culture of continuous

improvement within the supply chain

• Supplier training: Trained two suppliers on Tietoevry’s Supplier Code with the expected outcome of

enhancing suppliers' understanding of ethical and responsible business practices, raising standards

across the supply chain

• Customer team support: Held dialogues with three Tietoevry customer teams supported by suppliers in

areas requiring heightened human rights due diligence. Collaborations with customer teams help ensure

human rights concerns in the company’s value chain are identified and addressed, mitigating potential

negative impact to people and reputational and operational risks for the company

In its 2023 annual report, the company committed to strengthening and monitoring the supplier onboarding

process, culminating in the integration of a sustainability assessment into the supplier selection process in 2024.

Additionally, Tietoevry advanced its Supplier Code implementation by training suppliers in 2024.

A fundamental action to avoid causing or contributing to material negative impacts on value chain workers

through the company’s own practices and to manage material risks in the company’s supply chain is to clearly

outline Tietoevry’s expectations on its suppliers to comply with all applicable laws and regulations as a

fundamental requirement. Furthermore, suppliers with a contractual relationship with Tietoevry must adhere to

the principles outlined in the Supplier Code, which serves as the foundation for the company’s Responsible

Sourcing practices. All onboarded suppliers are required to undergo a sanctions check. The Group Sourcing and

Partnerships Function, led by the Group CPO, monitors new and renewed supplier contracts to maintain high

standards and compliance levels.

The company allocates dedicated resources to managing its material impacts, including a team comprising of

Supplier Due Diligence Officers and Sustainability Process Leads, in close collaboration with Group

Sustainability. This team focuses on ensuring responsible supply chain management by maintaining and updating

current processes. Additionally, investments are directed towards enhancing the Supplier Dashboard, enabling

continuous monitoring of supplier contracts and associated risks.

A statement in the Source to Pay Policy outlines that no suppliers should be invited to a process unless they have

a fair chance to win the bid. Moreover, Tietoevry’s Code of Conduct states that colleagues and others are to be

treated with respect. This includes avoiding situations where Tietoevry’s requests would directly or indirectly

demand suppliers to work excessive hours which would cause a negative impact on value chain workers.

When being alerted about a potential negative impact, the relevant sourcing manager is responsible for ensuring

a dialogue with the supplier’s key account manager to verify the finding and agree on corrective and preventive

action plans. Such a process usually includes meetings with the supplier’s management.

In Tietoevry’s Supplier Code, the company requires the supplier to notify Tietoevry whenever there is a violation

of the Supplier Code. This is being monitored through frequent dialogues with Sourcing managers and through

the Whistleblowing Channel. Due to a lack of reliable insight, the company has not taken action to validate and

provide or facilitate remedies for its current material impacts.

Tietoevry has not taken any additional actions or initiatives with the primary purpose of delivering positive

impacts for value chain workers. As a result, the company does not track or monitor the effectiveness of such

initiatives.

Tietoevry plans to improve and further develop its supplier assessment tool starting in 2025, with a particular

focus on enabling the categorization of suppliers based on sector- and industry-specific risks. The goal is to gain

a deeper understanding of and more accurately identify where in the supply chain actual and potential negative

impacts of freedom of association, collective bargaining, and equal treatment and opportunities for workers

occur. Based on more accurate data, the company will be able to scope targeted responses. With the

enhancement of its management and engagement with suppliers, Tietoevry aims to develop means to track and

assess the effectiveness of the actions listed above during 2025. Moreover, in 2025 Tietoevry will review the

measurements it currently uses to monitor progress within supplier management with the aim of setting specific,

measurable, relevant, outcome-oriented and time-bound targets supporting the policy objectives.

Tietoevry’s action plan for the material S2 topics did not involve significant operational (Opex) or capital (Capex)

expenditures during the 2024 financial year. Additionally, no future financial resources (Capex) have been

allocated to future action plans at this time. During 2025, Tietoevry plans to invest EUR 0.1 million in a Supplier

Due Diligence tool to replace the current tool with a more automated, up-to-date and user friendly one. There is

a need for a Dashboard and the possibility to do the follow-ups with less manual work which excludes human

errors.

Metrics and targets

Targets related to managing material negative impacts, advancing positive impacts, and

managing material risks and opportunities (S2-5)

Aligned with the company’s policy objectives, the aim is to ensure the inclusion of the Supplier Code in all

supplier contracts. Tietoevry monitors this metric and evaluates its effectiveness through the Supplier

Dashboard.

Targets for the material topics related to workers in the value chain will be explored during 2025.

S4 - Consumers and end-users

Strategy

Material impacts, risks and opportunities and their interaction with strategy and business

model (ESRS 2 SMB-3)

Privacy for consumers and end-users has been determined as a material risk and as an actual positive impact for

Tietoevry in the company’s double materiality assessment. The scope of Tietoevry’s double materiality

assessment covers all consumers and/or end-users who are likely to be materially impacted by the company,

including impacts connected with the company’s operations and value chain through its products and services,

as well as its business relationships.

Tietoevry’s positive impact on privacy for consumers and end-users comes from its strong commitment to data

protection. The company ensures privacy by using secure technologies, conducting regular security audits, and

complying with regulations like the General Data Protection Regulation (GDPR). The company is also transparent

about data collection and usage practices. Building trust through strong privacy practices enhances customer

loyalty and satisfaction.

In terms of risks, Tietoevry is particularly attuned to data privacy and cybersecurity. Given the company’s

involvement in managing critical IT infrastructure and sensitive data, any breach could have significant

repercussions. Tietoevry continues to strengthen its cybersecurity capabilities and ensure compliance with data

privacy regulations.

All potential personal data breaches that affect individuals stem from violations of data confidentiality,

availability or integrity. These breaches could result in various negative consequences, such as inability to

continue personal data processing (e.g. service disruptions), potential physical harm (especially concerning

patient safety), significant economic or social disadvantages, and discrimination. Additionally, consequences

could include financial loss, identify theft or fraud, damage to an individual's reputation, and negative impacts on

the rights and freedoms of the data subjects. These risks apply to everyone, but their impact depends on the

individual's category, the type of personal data, and whose data is being processed. Vulnerable groups, as well

as those whose sensitive personal data is processed, are particularly at risk, and the potential consequences for

these groups might be more severe. To address these risks, Tietoevry conducts Privacy Impact Assessments

(PIAs) as part of its role as a Data Processor for its customers, who act as Data Controllers. These assessments

help identify and evaluate potential privacy risks, and Tietoevry takes action to mitigate these risks and ensure

that negative consequences for individuals are minimized.

During product or service development, Tietoevry carefully assesses the purpose, scope and context of personal

data processing from the perspectives of the different categories of individuals whose data is involved.

Customers may process the personal data of various groups, including their employees, consumers, children,

elderly people, patients and students.

Impact, risk and opportunity management

Policies related to consumers and end-users (S4-1)

Tietoevry’s main policies related to privacy include its Privacy Policy and its Human Rights Policy . The Privacy

Policy aims to protect personal data in compliance with data protection laws, particularly the GDPR. The policy

outlines how the company processes, manages, and safeguards personal data across its operations. Key

objectives include ensuring transparency, security and user control over personal data. The policy addresses

risks related to data breaches, privacy violations and regulatory non-compliance, while it also identifies

opportunities in building trust and data-driven innovation. Besides the GDPR, the policy is aligned with other

relevant national and international data protection laws. Parts of the policy are aligned with the UN Guiding

Principles on Business and Human rights (UNGP), particularly in the protection of privacy as a fundamental

human right, and the UNGP’s requirements to conduct due diligence to prevent and mitigate adverse human

rights impacts.

The policy applies to Tietoevry’s operations and value chain, including suppliers and partners handling personal

data. It covers all regions where the company operates and includes key stakeholders such as all customers,

employees, partners and end-users, ensuring personal data protection across upstream and downstream

activities. It is available internally on the company’s intranet and all employees are required to complete the

company’s e-learning on privacy annually. An external Privacy Policy Statement – based on the policy – is made

available upon request to external stakeholders. Stakeholder interests have not been considered when setting

and reviewing the Privacy Policy – the policy is purely based on the requirements in the GDPR.

The CEO approves the Privacy Policy and the Head of Group Legal is responsible for implementing it.

Confirmed personal data breaches are reported by Tietoevry, as a data processor, to its customers as data

owners. It is the responsibility of the customer to evaluate the severity of any breach. Tietoevry has not been

made aware of any cases of non-respect of the UNGPs, ILO Declaration on Fundamental Principles and Rights at

Work or OECD Guidelines for Multinational Enterprises that involve consumers and/or end-users during 2024.

Processes for engaging with consumers and end-users about impacts (S4-2)

As a company that handles personal data both for its own purposes and on behalf of customers across various

sectors, Tietoevry prioritizes privacy and data protection. When delivering IT services and products, the

company is committed to safeguarding the privacy, rights and freedom of individuals.

In its role as a Data Processor, Tietoevry adheres to the GDPR, particularly ensuring compliance with legal

obligations when partnering with customers who act as Data Controllers. This means that Tietoevry processes

personal data based on the instructions and requirements of its customers, who are responsible for ensuring

transparency and protecting the privacy of their consumers and end-users.

Tietoevry integrates Data Protection by Design and Default into its services and products, as required by GDPR

Article 25. During product and service development, potential privacy risks for individuals whose data will be

processed are carefully assessed and mitigated. Once delivered, services are carried out according to customer

contracts and specific data processing instructions are provided by customers.

When Tietoevry collaborates with customers, privacy-related discussions are part of day-to-day operations,

such as sales process or service delivery. However, as a Data Processor, Tietoevry does not interact directly with

consumers or end-users. The responsibility for ensuring data privacy and transparent communication with end-

users rests with the company’s customers, who act as Data Controllers.

Similarly, when Tietoevry acts as a Data Controller – for instance, when handling the personal data of its

employees, customers or external partners – the company follows GDPR Article 25. It assesses potential risks to

individuals’ privacy and ensures that any affected individual is informed before their data is processed.

Individuals are also given the opportunity to raise concerns, ask questions, or exercise their privacy rights. In

cases involving employees, Tietoevry may engage with their representatives – such as members of the European

Works Council (EWC) – to ensure full transparency.

As Tietoevry is a significant service provider working with many customers, any potential negative impacts on

data privacy could have widespread or systemic consequences. This makes privacy protection a key focus in all

aspects of the company’s operations.

Tietoevry, as a business-to-business company and Data Processor, has no general process for engaging with

consumers or end-users. This responsibility primarily lies with its customers, who act as Data Controllers.

Processes to remediate negative impacts and channels for consumers and end-users to raise

concerns (S4-3)

When Tietoevry acts as a Data Processor, the company supports its customers (the Data Controllers) in

managing personal data. However, it is the Data Controller’s responsibility to provide channels through which

their consumers and end-users can raise privacy concerns or issues. If necessary, consumers and end-users can

also submit complaints to their national data protection authority, as outlined by the GDPR. Tietoevry itself does

not provide specific contact points for consumers or end-users, unless agreed upon in the customer contract

(for example, through a service desk).

As a Data Controller, Tietoevry ensures transparent communication on how individuals can reach out on privacy-

related matters. Employees have access to an internal Privacy Notice, while a public Privacy Notice is available

for external individuals, such as customer representatives, partners, suppliers, visitors, and job candidates.

Additionally, Tietoevry has set up and communicated a whistleblowing channel to allow for the reporting of

privacy concerns or violations.To ensure that the company’s channels to raise issues are efficient, the company

conducts process performance evaluations monthly and reporting to top management at least twice a year.

Tietoevry has not conducted any specific assessment to understand whether the company’s privacy notice is

deemed as a trusted way to raise concerns due to its role as a Data Processor. Read more about awareness and

trust in the company’s overall grievance and remediation processes under G1 - Business Conduct.

Actual security incidents jeopardizing confidentiality, availability of services, and personal data of individuals are

handled according to Tietoevry’s security incident management process, which includes a special personal data

breach management procedure. Reported breaches are investigated, resolved, and notified to relevant

stakeholders according to GDPR Article 33. In addition, internal privacy assessments and external auditing

provide information about possible issues having an impact on the privacy of individuals.

If Tietoevry identifies actions that have caused or contributed to a material negative impact, immediate and

appropriate steps are taken to address the issue. The company’s remediation approach is outlined in the Human

Resources Policy and the Human Rights Policy . In cases where Tietoevry is obligated to offer or participate in

providing remedy, each situation is handled individually on a case-by-case basis.

Actions

Taking action on material impacts on consumers and end-users, and approaches to managing

material risks and pursuing material opportunities related to consumers and end-users, and

effectiveness of those actions (S4-4)

Tietoevry pursues the material opportunity related to privacy by integrating privacy and data protection into its

core business practices. Strong privacy management not only mitigates risks but also builds trust with customers,

partners, and end-users, strengthening the company’s reputation and competitive edge. Key actions Tietoevry

can perform to seize this opportunity include:

• Privacy by Design and Default: Tietoevry embeds privacy considerations into the development of all

products, services, and applications from the outset. By aligning with GDPR Article 25, the company

ensures that personal data is protected by default

• Strong Privacy Framework: Tietoevry’s comprehensive Privacy Framework helps to ensure that privacy is

managed systematically across all business operations. This framework includes monitoring potential

risks, adhering to data protection regulation, and implementing robust processes to safeguard personal

data

• Compliance with global standards: By complying with the GDPR and other international data protection

laws, Tietoevry can assure customers that their data is handled responsibly

• Continuous Improvement: Tietoevry regularly reviews and updates its privacy practices based on new

regulations, customer feedback, and industry standards. This adaptability ensures that the company

remains at the forefront of privacy and data protection

In summary, Tietoevry leverages privacy as a material opportunity by embedding it into its products, fostering

trust, ensuring regulatory compliance, and continuously improving its privacy practices to meet evolving market

demands.

Privacy-related roles and responsibilities are clearly defined at Tietoevry. The company has allocated resources

to manage significant impacts and risks, including well-established roles for issue and incident management.

Additionally, Tietoevry’s businesses have the necessary resources in place to ensure compliance with GDPR

Article 33, which governs the reporting of personal data breaches. Tietoevry’s privacy policy, procedures,

instructions, and systems are valid and mandatory for the whole company, including different functions and their

daily operations in the Corporate Business Services organization, as well as in the businesses accountable and

responsible for customer sales and service deliveries.

At the start of 2024, Tietoevry’s Group Privacy outlined the following privacy improvement focus areas for the

year:

• Opportunity and contract management: Involve customer teams and sales personnel acting in a Data

Processor role

• GDPR compliance for offerings: Engage product teams, product owners, and managers in a Data

Processor role

• GDPR in continuous service delivery: Include service delivery teams and personnel in a Data Processor

role

• GDPR in project deliveries: Focus on programme and project managers in a Data Processor role

• GDPR in sourcing and supplier management: Key employees responsible for evaluating supplier GDPR/

privacy practices in both Data Processor and Data Controller roles

• GDPR compliance of internal services: Involves application owners and managers in a Data Controller

role

• Improving privacy awareness and competence of employees: Targeted according to employees’ specific

roles

In addition, Tietoevry also conducts ISAE 3000 audits on an annual basis as a means to evaluate the

effectiveness of the company’s privacy activities and processes. The goal of these initiatives is to strengthen the

company’s GDPR compliance and ensure better protection of individuals’ privacy.

Tietoevry’s internal privacy improvement efforts are proactive and preventive measures aimed at avoiding non-

compliance with applicable laws. These actions also enhance the company’s privacy capabilities and maturity,

enabling it to deliver better services with robust privacy solutions to customers. This in turn helps customers to

fulfil their responsibilities and obligations when processing the personal data of consumers and end-users.

Tietoevry mitigates the risk related to privacy for consumers and end-users through its privacy management as

described under ‘Material positive impact’.

Based on actions formulated in 2023, Tietoevry has maintained its systematic and comprehensive approach to

data privacy governance also in 2024. In line with disclosed action plans in 2023, the company has executed

activities aligned with its Privacy Framework, while placing particular focus on the Schrems II implementation

and EU-US Data Protection Framework. Necessary updates have been integrated into the Sourcing and supplier

management processes and incorporated into training sessions for key internal stakeholders.

Group Privacy closely monitored developments in privacy-related legislation within the EU and in other countries

where Tietoevry operates. Internal projects were conducted in locations such as India and China. Additionally, a

mandatory e-learning programme for all employees achieved an impressive completion rate of nearly 100%

(99.97%).

Throughout the year, Tietoevry received no substantiated complaints regarding breaches of customer privacy

(i.e. no fines imposed for GDPR non-compliance). Additionally, Tietoevry has not been made aware of any severe

human rights issues connected to consumers and end-users during 2024.

Tietoevry’s Group Privacy unit is part of the Group Legal organization and privacy improvement actions in 2024

were run as Group Legal operating costs. The action plan did not involve significant operational (Opex) or capital

(Capex) expenditures during the 2024 financial year. Additionally, no future financial resources (Opex or Capex)

have been allocated to future action plans at this time.

Metrics and targets

Targets related to managing material negative impacts, advancing positive impacts, and

managing material risks and opportunities (S4-5)


Material topic	Type of IRO related to target	Target	Result 2024	Result 2023	Result 2022
Privacy for consumers and end-users	Actual positive impact and risk	100% of employees completed the annual Privacy e-learning	97%	100%	100%
Privacy for consumers and end-users	Actual positive impact and risk	Zero GDPR-related fines imposed by data protection authority	0	0	0

Tietoevry, in its roles as both a Data Processor and Data Controller, continuously monitors the effectiveness of its

internal Privacy Framework and the outcomes of its privacy-related procedures. To ensure accountability,

Tietoevry has established privacy Key Performance Indicators (KPIs) and targets, which are clearly

communicated. The company regularly reports its privacy performance and maturity levels to GEM and the ARC.

To monitor progress, the company conducts annual privacy maturity surveys, internal assessments, and external

audits. These processes help to ensure continuous improvement in privacy practices and performance. Internal

stakeholders are involved in setting privacy targets and monitoring performance. While consumers and end-

users are not directly engaged in these processes, Tietoevry employees – including privacy professionals – and

key teams such as security, risk management, and IT play an active role in identifying privacy-related lessons and

driving improvements.

Tietoevry has several internal targets and metrics related to managing its actual positive impacts and risks

related to privacy for consumers and end-users. These are related to, for example, the company’s offering, the

GDPR compliance of suppliers and internal services, and employee training. All the company’s privacy targets are

aligned with Tietoevry’s privacy objectives and principles as outlined in the company’s Privacy Policy. Two

targets are external, and both are related to the company’s actual positive impact and material risk.

The target ‘Zero GDPR-related fines imposed by data protection authority’ is measured on an annual basis. Data

is collected at year end through internal sources. The base year for this target is 2020 with the corresponding

baseline value of 0.

Tietoevry's second target is to have 100% of its employees completing the Privacy e-learning on an annual basis.

The target has been revised during 2024 from aiming for a completion level of 90% to a completion level of

100%, to reflect the fact that completion of the training is mandatory for all of Tietoevry’s employees. The base

year for this target is 2020 with the corresponding baseline value of 89%. This year’s result falls short of

expectations, requiring corrective actions. Nevertheless, the overall outcome remains commendable and

consistent with previous years.

As stated in the BP-1, all entities within the Tietoevry Group are included in the target for ‘Zero GDPR-related

fines imposed by data protection authorities’. However, compliance can only be tracked within Europe, as data

on non-compliance outside Europe is unavailable. The target related to the completion level of the Privacy e-

learning covers all entities within the Tietoevry Group, with the exception of the subsidiary Bekk, as it operates

fully as a portfolio company. This year’s target outcome, which aims for zero GDPR-related fines imposed by data

protection authorities, aligns with expectations and continues the trend observed since 2018. This is a result of

Tietoevry's comprehensive and systematic approach to ensuring privacy and GDPR compliance.

Performance against both targets are monitored by the Group Privacy function, and followed up on a quarterly

basis. Quarterly performance related to the e-learning target is followed up from the third quarter each year.

Performance is shared with and reviewed by each of the company’s businesses as well as at Group level. Annual

results are shared externally.

Governance

G1 - Business conduct98

G1 - Business conduct

Strategy

Material impacts, risks and opportunities and their interaction with strategy and business

model (ESRS 2 SBM-3)

Tietoevry has identified the protection of whistleblowers, and the prevention and detection of corruption and

bribery, including training, as material positive impacts. Key factors are the company’s promotion of

transparency, ethical guidelines, and measures to protect whistleblowers (including preserving anonymity and

preventing retaliation). Leadership’s commitment to fostering an open, ethical environment where employees

can raise concerns without fear is also crucial.

Additionally the company has identified corruption and bribery as potential negative impacts due to the

complexity of its global operations and supply chains. With numerous third-party relationships across diverse

regulatory environments, there is a risk of unethical practices occurring within the value chain. Operating in

markets with varying levels of regulatory oversight further increases this exposure.

Impact, risk and opportunity management

Business conduct policies and corporate culture (G1-1)

Corporate culture is crucial to Tietoevry’s business success, shaping employee behaviour, engagement and well-

being, while driving the company’s ability to innovate and adapt in a rapidly changing business environment.

Tietoevry fosters a culture grounded in openness, trust and diversity through communication, training and

development as well as employee engagement. Evaluation of the company’s corporate culture is carried out

through employee surveys, tracking of metrics such as employee turnover and diversity metrics, and cultural

audits.

Tietoevry’s commitments related to business conduct and corporate culture are formalized in Tietoevry’s Code

of Conduct. This is further underpinned by other Tietoevry policies, rules and processes, of which the most

relevant are described below.

Tietoevry’s Whistleblowing Rules promote an open corporate culture by offering a safe mechanism for reporting

compliance concerns without fear of retaliation. The rules specify reportable issues, such as Code of Conduct

breaches, legal violations and ethical misconduct, and encourage both employees and external stakeholders,

including those in work-related relationships (e.g. suppliers, partners or customers) to raise concerns. The

process for reporting concerns is also described in the rules, including how follow-ups on reports are conducted

in a way that ensures confidentiality and protection against retaliation. The rules also outline the company's

commitment to safeguard and uphold privacy principles. Investigations are carried out fairly and independently

to ensure that the rights of all parties involved are respected. The roles of the Whistleblowing Unit, the Group

Compliance Officer, Designated Points of Contact, and the Escalation Committee are defined in the document.

The implementation of Whistleblowing Rules and systems represents good corporate governance practices and

is required by statutory regulation in many jurisdictions, including EU member states that have transposed EU

Directive 2019/1937.

The purpose of Tietoevry’s Anti-Corruption Rules is to ensure compliance with international standards – such as

the UN Convention against Corruption and the OECD Guidelines for Multinational Enterprises – alongside local

laws in each country where the company operates. When local laws provide no guidance, Tietoevry applies its

Code of Conduct and these rules. The company’s primary objective is to guide employees on anti-corruption

principles and appropriate conduct regarding business relationships. The rules stress that all business dealings

must be honest, transparent, and based on sound judgment. The rules also highlight the importance of

interacting with external partners to build successful relationships, while ensuring that gifts or benefits are

exchanged appropriately and never in ways that could be construed as unethical. Compliance with these

principles is expected from all employees, officers, and directors of Tietoevry.

Stakeholder interests are taken into account when setting and reviewing policies and rules. In the latest review

of the Anti-corruption Rules, stakeholder perspectives influenced several updates, including the enhancement of

guidance on gifts and hospitality, the establishment of a clear process for proposing and approving sponsorships

and donations. Considerations taken into account when reviewing the Code of Conduct included the inclusion of

commitments to developing responsible solutions, and revisions concerning employees’ duties, roles, and

ownership in external businesses and organizations. Stakeholder considerations regarding the possibility to

report concerns anonymously, which is not a legal requirement in accordance with statutory law, was taken into

account in relation to updates of the company’s Whistleblowing Rules.

The Code of Conduct, the Whistleblowing Rules and the Anti-corruption Rules are revised on an annual basis,

involving internal and external stakeholders, and subject-matter expertise. The rules are available on Tietoevry’s

intranet as well as on the company’s website. The Code of Conduct includes content from these rules. Both the

Whistleblowing Rules and Anti-Corruption Rules are approved by the Head of Group Legal, and the Group

Compliance Officer is responsible for the implementation of the rules.

In a company-wide anti-corruption risk assessment completed by the end of 2024, the functions most vulnerable

to corruption and bribery were identified. Corruption risks for Tietoevry are often linked to roles with significant

decision-making authority, where individuals influence contracts and key business relationships, particularly in

high-value transactions and negotiations. In addition, functions that have access to confidential or sensitive

information of a strategic, financial or technical nature regarding Tietoevry or third parties are at risk of

corruption due to the potential misuse of such information for private gain. The functions identified as being at-

risk include sourcing, delivery and sales, Human Resources, Travel Desk, security, Business Development, GEM,

Communications and Brand, Finance and Accounting, and Project Management. In 2025, Tietoevry will begin

tracking the completion rates of anti-corruption e-learning for at-risk functions. While the company has not yet

measured the percentage of these functions covered by training, it plans to do so in 2025. Consequently, this

data is not available for the 2024 reporting period.

Whistleblowing and reporting mechanism

Compliance concerns can be reported by all employees and hired personnel within the group, in all countries

and subsidiaries. It is considered an entitlement and an obligation to notify the company when misconduct is

suspected. Reports can be made through the Whistleblowing Channel or to designated points of contact within

the group’s legal entities. All reports are handled confidentially, and whistleblowers can remain anonymous. The

Whistleblowing Channel can also be accessed and used by external parties such as customers, suppliers,

business partners, and others. Whistleblowing awareness is incorporated into the mandatory annual Code of

Conduct e-learning, and the reporting process is clearly outlined in the Whistleblowing Rules. Employee

awareness and trust in grievance and remediation processes are indirectly monitored through annual reporting

rates and the proportion of anonymous cases. However, the company has not conducted formal evaluations in

2024 to assess whether employees are truly aware of and trust these processes for raising concerns. The

company has procedures in place to ensure timely responses to business conduct incidents, including cases of

corruption and bribery. Reports to the Whistleblowing Unit are addressed within four working days and are

provided with follow-up updates within three months. All involved parties are given the opportunity to provide

input, ensuring a fair process.Tietoevry’s whistleblowing process is operated by the Group Compliance Officer,

who ensures that all reports are securely logged and accessible only to authorized personnel. The Group

Compliance Officer evaluates each report and determines whether further investigation is needed, potentially

escalating cases to the Escalation Committee.

Protection from retaliation is central to the whistleblowing process, and whistleblowers are encouraged to report

to the Whistleblowing Unit any negative consequences of speaking up. Protection of whistleblowers is

monitored continuously by the Whistleblowing Unit and reported to the ARC on a six-monthly basis. In 2024, no

allegations of retaliation were reported by whistleblowers. Tietoevry’s whistleblowing system meets legal

requirements, including the EU Directive (2019/1937). The whistleblowing system operates independently of

regular management and can escalate severe cases to senior leadership, such as the CEO or the ARC. Reports

and serious cases are periodically reviewed by the ARC to ensure transparency and accountability.

The Whistleblowing Rules outline Tietoevry’s commitment to ensure that individuals reporting concerns in good

faith are protected from any form of retaliation. This protection extends to both formal actions, such as dismissal,

and informal ones, such as unfavourable treatment or bullying. The Group Compliance Officer is responsible for

preventing retaliation and ensuring a fair investigation process.

In addition to the procedures for handling whistleblower reports, Tietoevry ensures follow-up of business

conduct incidents. Reported concerns related to business ethics and compliance, including potential

misconduct, are assessed and investigated based on their nature and severity. Investigations are conducted in

accordance with internal guidelines and may involve relevant functions such as Legal, Compliance, HR, or

external experts when necessary. Findings from these investigations contribute to corrective actions, policy

improvements, and risk mitigation measures to uphold ethical business practices.

Prevention and detection of corruption and bribery (G1-3)

The Code of Conduct and the Anti-Corruption Rules set out the rules related to Anti-Bribery and Corruption

(ABC) at Tietoevry. Corporate processes like the Know Your Counterparty Rules further help to prevent

misconduct and establish a robust legal and compliance framework, reinforcing Tietoevry’s efforts against

corruption and bribery. Prevention and detection of incidents are achieved through training and awareness

building among employees and representatives, while internal controls in finance processes prevent illegal or

fictitious transactions from being carried out. Allegations of corruption and bribery are always investigated in

accordance with the Whistleblowing Rules.

The Group Whistleblowing Unit and Escalation Committee operate independently from line and financial process

management, ensuring objectivity. Investigation outcomes are reported to the ARC biannually, or as required by

the Whistleblowing Rules.

ABC policies are communicated through Tietoevry’s Code of Conduct e-learning, and specific ABC training

modules are available on the company’s learning management platform. All employees, including members of

administrative, supervisory, and management bodies, must complete the Code of Conduct e-learning annually. It

covers anti-corruption and anti-bribery topics, outlining principles and providing guidance on the assessment of

business-related gifts and hospitality.

In 2024, there were zero confirmed incidents of corruption or bribery.

100

Metrics and Targets

Targets related to business conduct (ESRS 2 MDR-T)


Material topic	Type of IRO related to target	Target	Result 2024	Result 2023	Result 2022
Corporate culture, Corruption and bribery (prevention and detection)	Actual positive impact	100% of employees completed the annual Code of Conduct e-learning	96%	96%	96%
Corruption and bribery (incidents)	Potential negative	Zero incidents of corruption detected by the Whistleblowing Unit (new target FY2024)	0	N/A	N/A

Tietoevry methodology for setting targets through combining benchmarking, legislative review, and employee

needs assessments. Input from internal surveys, compliance reports and international standards ensures goals

are practical and relevant. Employees and management contribute through consultations, while cross-functional

teams from Strategy, HR, Finance, and Group Sustainability provide insights. Final targets, approved by GEM

reflect past performance and align with organizational and workforce needs.

The targets received final approval from Group Executive Management, and no assumptions were made while

defining them. The targets are aligned with the objectives of several policies and rules, including Tietoevry’s

Code of Conduct, the Anti-Corruption Rules as well as the company’s Whistleblowing Rules.

Completion of the Code of Conduct e-learning is tracked through Tietoevry’s learning management system

(LMS). This target assumes full employee participation and availability of e-learning resources for all eligible

learners along with accurate tracking of progress to maintain engagement. The target is monitored on both an

annual and quarterly basis. For the quarterly reports, the results are broken down by business, enabling more

focused monitoring and follow-up actions. It is assumed that employees who complete the Code of Conduct e-

learning are more likely to detect corruption or bribery and to prevent it from taking place. All entities within

Tietoevry Group are included in the scope of the 100% annual completion target for the Code of Conduct e-

learning, except for the subsidiary Bekk, which operates fully as a portfolio company. The base year for this

target is 2019 with a baseline value of 90% completion rate. The target is annual and it was adjusted during 2024

from a completion level of 90% to a completion level of 100%, to reflect the fact that completion of the e-

learning is mandatory for all Tietoevry’s employees.

Tietoevry's target of ‘Zero incidents of corruption detected by the Whistleblowing Unit’ is supported by internal

controls, audits, self-reporting mechanisms (including the whistleblowing channel), and compliance monitoring.

Investigations are promptly initiated when concerns or allegations arise. This target relies on the effectiveness,

trust, and awareness of existing processes to detect corruption risks. Progress is continuously tracked using data

from relevant internal sources and monitored by the Whistleblowing Unit. The target has 2024 as the base year

and its baseline value is zero.

Both targets were approved in early 2024. Measurements of the targets are not validated by any external body

except for the assurance providers and no milestones or interim targets have been set.

Relevant and verifiable targets relating to the material topic of protection of whistleblowers will be explored

during 2025. Effectiveness of policies and actions related to the protection of whistleblowers from detrimental

conduct is tracked by the Whistleblowing Unit, which monitors allegations of retaliation. In cases where there is

an enhanced risk of retaliation, risk mitigation actions are considered and implemented to the extent needed.

Detrimental conduct towards whistleblowers is prohibited in accordance with the Code of Conduct. The

company has zero tolerance for such conduct and a corresponding zero incident target.

Progress toward the 100% completion rate for the Code of Conduct e-learning fell slightly short of initial plans,

with a 96% completion rate for the reporting year. This outcome may be attributed to the expanded scope,

which included more entities than in previous years. Despite the broader scope, maintaining a 96% completion

rate indicates a positive trend, suggesting continued improvement in the coming years.

The company maintains a zero-tolerance policy on corruption, and the results for the reporting year are

satisfactory. As a multinational company with a global presence, operations carry an inherent risk of corruption

and bribery. Therefore, continuous efforts are required to prevent, detect, and potentially investigate suspected

corruption cases.

Incidents of corruption and bribery (G1-4)

During 2024, Tietoevry had zero convictions for violation of anti-corruption or bribery and paid no fines as a

result. As a result, the company has not taken any actions to provide for and cooperate in or support the

provision of remedy related to corruption and bribery during the year. However, one alleged corruption case

related to the company remained open during the year. The case was first reported in 2018 and involved a

former Tietoevry employee who was convicted in Belarus for bribing a public official. This led to charges in 2020

against Tietoevry Banking Latvia SIA (formerly SIA Tieto Latvia) for lack of internal controls and tax evasion. The

case is still subject to court proceedings in the Riga District Court. Tietoevry denies the charges and continues to

defend its position.

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Actions

Actions and resources related to business conduct (ESRS 2 MDR-A)

In response to Tietoevry’s material topics, the actions listed below were carried out during the reporting year to

prevent or mitigate negative impacts, and further strengthen the company’s actual positive impacts. The scope of

the key actions mainly applies to Tietoevry’s employees and other stakeholders covered by the company’s Code

of Conduct.

• Completion of an anti-corruption risk assessment to identify inherent risks and relevant mitigating actions

for securing effective compliance within Tietoevry. The risk assessment also determined which functions

in the company are most at risk regarding corruption

• The Code of Conduct e-learning has been promoted through campaigns on the company’s internal

communication and engagement platform to boost employees uptake of the training

The actions outlined below are scheduled for implementation and completion in 2025:

• With the purpose of increasing the share of employees who feel safe speaking up, develop an

information kit about the process of reporting a complaint to further raise awareness across the

organization

• Internal campaign on how to behave and treat colleagues in line with the defined corporate culture

In 2023, activities supporting business conduct and corporate culture included several initiatives. These

comprised mandatory annual training for all employees on Tietoevry’s Code of Conduct, achieving a completion

rate of 96% for the year. A global internal awareness session was conducted to foster dialogue on ethics among

employees. Efforts also included the implementation and follow-up of the Know Your Counterpart Rule and the

Anti-Money Laundering Rule, as well as ongoing awareness sessions and training to reinforce Tietoevry’s

compliance culture through reviews of third-party management practices. Additionally, customer teams received

training on tools and processes related to business ethics.

Tietoevry’s action plans for the material topics related to G1 - Business Conduct did not involve significant

operational (Opex) or capital (Capex) expenditures during the 2024 financial year. Additionally, no future

financial resources (Opex or Capex) have been allocated to future action plans at this time.

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Entity specific topics

Cybersecurity103

Responsible AI105

Appendix 107

103

Cybersecurity

Strategy

Material impacts, risks and opportunities and their interaction with strategy and business

model (ESRS 2 SBM-3)

Tietoevry’s commitment to delivering high-quality, secure services and products is essential for meeting

customer needs and driving the company’s performance. This, together with a growing demand for secure

software and services, creates a material financial opportunity for Tietoevry to generate revenue by offering

solutions that ensure data security. By investing in preventive measures, efficient continuity planning, incident

management and crisis management, Tietoevry can enhance its reputation and customer trust while minimizing

the impact of potential incidents.

Cybersecurity also constitutes a material risk for Tietoevry. The increasing sophistication of cyberattacks poses a

significant risk, including potential loss of data and damage to services. This can lead to negative financial and

reputational impacts. In addition, upcoming security regulations may impact service and product development

processes, potentially increasing the costs associated with ensuring data security.

Following a ransomware attack on a Swedish data centre in early 2024, Tietoevry conducted a double

materiality reassessment of cybersecurity. While the company had already identified cybersecurity as both an

opportunity and a risk, the assessment also highlighted it as a material potential negative impact due to the

increasing complexity of cybersecurity threats and potential impacts from any attacks. Read more in SMB-3,

table ‘Current financial effects of material risks and opportunities’.

Impact, risk and opportunity management

Policies related to Cybersecurity (ESRS 2 MDR-P)

Tietoevry’s Security Policy is aligned with the International Organization for Standardization (ISO), the

International Electrotechnical Commission (IEC), specifically with ISO 27001:2022, and with industry best

practices like the Information Security Forum’s Standard of Good Practice for Information Security (SOGP). The

purpose of the Security Policy, which also serves as the information security and cybersecurity policy, is to

specify the overall approach to protecting information assets, infrastructure and resources against unauthorized

access, disclosure, alteration and destruction with a risk-based approach and in adherence with internal and

external requirements.

As a trusted service provider of business-critical services to its customers and society, the company’s security

and safety measures must be an integral part of all of its services, products and processes. Through the

implementation of the company’s Security Policy, security governance is implemented, maintained and

continually improved. Based on policy, the company’s security controls are detailed and documented in the

Statement of Applicability (SoA) and appropriate security controls are implemented into Tietoevry’s business

services and applications. Based on the policy, related rules and processes, the company’s security principles

and responsibilities are outlined, including the responsibility for all employees, partners and subcontractors to

act in a security-conscious manner and report any suspected security incidents that come to their attention.

The policy is reviewed annually and approved by the CFO and CEO. The Chief Information Officer (CIO) oversees

the approval process, while the Chief Information Security Officer (CISO) is primarily responsible for

implementing the policy and related rules across the organization. The policy applies to all employees and

operations, and includes guidelines for partners, suppliers and subcontractors involved in delivering Tietoevry’s

services and products.

Stakeholder interests are considered when setting and revising the Security Policy and related rules, ensuring

alignment with business needs and upcoming changes in legal, regulatory, customer and compliance

requirements. Stakeholder considerations implemented during the latest policy review included enhancements

to security requirements, such as aligning with new controls, addressing customer, client and regulatory

demands, incorporating key monitoring controls, introducing additional measures for cloud environments, and

ensuring compliance with legislative mandates.

Tietoevry’s Security Policy is accessible to all employees via the company’s intranet. To ensure awareness, all

employees complete mandatory annual training covering the policy's content, including cybersecurity

expectations. In addition, Tietoevry also hosted a Cybersecurity Awareness Month during 2024, providing

employees with topical learning opportunities and webinars, and cybersecurity briefing sessions for customers

seeking insights into current threats.

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Actions

Taking actions on material impacts, risks and opportunities (ESRS 2 MDR-A)

At Tietoevry, security is an essential part of delivering on the company’s business objectives. Secure processes

and compliance with internal and external security requirements are prerequisites for delivering high quality and

contributing to the societies Tietoevry operates in. This includes building customer trust, improving product and

service quality, enabling new business opportunities, managing security risks, achieving compliance, reducing

disruptions and minimizing costs.

In response to Tietoevry’s material risks and opportunities related to cybersecurity and its potential negative

impacts, the actions listed below were carried out during the reporting year to prevent or mitigate potential

negative impacts, pursue opportunities and mitigate risks. The scope of the key actions mainly applied to

Tietoevry’s employees and other stakeholders covered by the company’s Security Policy:

• Cybersecurity awareness activities in various parts of the company regularly highlighted Security e-

learning as a means to achieve a better security posture and to support the achievement of a 100%

completion rate

• The Security e-learning has been promoted through campaigns on the company’s internal

communication and engagement platform to support the achievement of a 100% completion rate

Additionally in 2024, Tietoevry updated its security framework – which includes policies, rules and guidelines –

to align with and transition to the latest ISO 27001:2022 standard. Other activities included continued

incorporation of risk-based security controls in offerings, products and services, and ensuring that the physical

environment for employees is secure and safeguards company and customer assets. Tietoevry also continued to

strengthen business resilience, i.e. enhancing the ability to manage and recover from business disruptions and

security incidents. The implementation of security management is monitored by a governing group, with regular

reviews of policies and actionable items overseen by the CISO and by external auditors.

In 2023, activities supporting improved security posture and culture included several initiatives. These

comprised mandatory annual Security e-learning for all employees, achieving a completion rate of 99.9% for the

year. In order to transition to the newer ISO27001:2022 standard and to capture updated security requirements

from customer perspectives, legal and regulatory changes, stakeholders were involved to provide their inputs.

Additionally, to establish priorities for security domains to be improved, security maturity assessments based on

SOGP from the Information Security Forum (ISF) were performed across Tietoevry.

Tietoevry’s action plan for the material topic of Cybersecurity did not involve significant operational (Opex) or

capital (Capex) expenditures during the 2024 financial year. Additionally, no future financial resources (Capex

and Opex) have been allocated to future action plans at this time.

Metrics and targets

Targets related to Cybersecurity (ESRS 2 MDR-T)


Material topic	Type of IRO related to target	Target	Result 2024	Result 2023	Result 2022
Cybersecurity	Risk and opportunity	100% of employees completed the annual Security e-learning	97%	100%	100%

Tietoevry’s annual cybersecurity target is to achieve 100% completion of its security e-learning for all

employees. The e-learning programme is based on the company’s Security Policy and Rules, which demonstrate

Tietoevry’s commitment to being a trusted service provider while strengthening safety, compliance and business

resilience. This approach helps to mitigate risks posed by data breaches and cyberattacks, strengthens the

company’s resilience, and demonstrates a commitment to security. This commitment can be seen as a key

differentiator for customers who prioritize data protection in their business decisions.

The target is annual and it was adjusted during 2024 from a completion level of 90% to a completion level of

100%, to reflect the fact that completion of the training is mandatory for all Tietoevry employees. The base year

for the target is 2020, with a baseline value of 90%. The target is followed up on a quarterly basis, with

performance shared and reviewed by each of the company’s businesses and at Group level. An assurance

provider is the only type of external body that has provided validation of the target and no milestones or interim

targets have been set.

Tietoevry’s cybersecurity target was set using the same methodology and process outlined in previous sections,

including stakeholder engagement. The final target was then approved by GEM.

Tietoevry Group is included in the scope of the 100% annual completion target for the Security e-learning

programme, with the exception of the subsidiary Bekk, which operates fully as a portfolio company.

The Security e-learning results are below target and can be considered unsatisfactory. While last year's

completion rate was 99.93%, this year's rate is lower, reflecting a declining trend. This may be attributed to the

expanded scope, as one subsidiary excluded in 2023 was included in this year’s results.

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Responsible AI

Strategy

Material impacts, risks and opportunities and their interaction with strategy and business

model (ESRS 2 SBM-3)

Responsible AI provides Tietoevry with the opportunity to lead in innovation and trust, but requires careful

management of risks related to bias, privacy and ethics. Responsible AI has thus been identified as a material

opportunity, as well as a potential positive and negative impact for Tietoevry.

Opportunities include positioning Tietoevry as a leader in ethical AI, attracting customers and building trust with

stakeholders. Responsible AI can also drive the development of new services that address societal challenges.

Potential positive impacts include automating tasks, improving productivity, reducing costs, enhancing

personalization and enabling new offerings in data analytics and automation, while also helping to solve societal

issues. On the other hand, potential negative impacts involve risks of bias and discrimination in AI systems,

misuse of data leading to privacy violations and regulatory issues, ethical concerns from stakeholders, and

workforce changes due to AI automation, which could result in employee dissatisfaction.

Impacts risk and opportunity management

Policies related to Responsible AI (ESRS 2 MDR-P)

Tietoevry is committed to developing and implementing AI solutions that are meaningful, valuable, human-

centred, reliable, accountable, fair and secure. This commitment is formalized through several key policies,

including Tietoevry’s AI Policy,Code of Conduct and Human Rights Policy.

Tietoevry’s AI Policy sets the company’s framework for responsible use of Artificial Intelligence (AI), covering the

scope, objectives, methodology and effectiveness of ensuring ethical AI governance. The policy applies to all AI-

related activities, including machine learning, natural language processing and automation of human tasks, both

for internal and external products and services. The purpose of the policy is to promote responsible production

and consumption of AI technologies, with the aim of maximizing AI’s benefits while minimizing risks to individuals,

businesses and society.

Key contents of the policy include increasing awareness of AI governance requirements, facilitating access to

preferred AI technologies for innovation and ensuring ethical AI practices through well-documented principles. It

further aims to proactively foster a responsible organizational culture and promote transparent communication

with employees, customers and partners regarding AI ethics, risks and responsibilities.

The policy is aligned with regulatory standards, such as the EU AI Act, and is continuously updated to reflect

changes in regulations and best practices. It involves cross-functional input from key stakeholders, including

Legal, Security and the businesses, ensuring that all necessary perspectives are considered.

The policy is approved by the CIO and implemented by the CISO, with both being accountable for the policy’s

execution. It is integrated into Tietoevry’s management systems for continuous monitoring, feedback and

improvement. As part of Tietoevry’s commitment to Responsible AI, the company reviews the policy on an annual

basis to ensure it remains effective and aligned with evolving regulations and stakeholder feedback. The

commitments outlined in the policy are communicated both internally and externally to ensure all employees and

external partners are informed. Internal training materials, information pieces on the company’s intranet and

interactive sessions are provided to educate employees on the company's approach to the responsible use and

deployment of AI.

Actions

Taking action on material impacts, risks and opportunities (ESRS 2 MDR-A)

In 2024, Tietoevry advanced its commitment to responsible and ethical AI usage by implementing a mandatory

Responsible AI e-learning course for all employees and subcontractors, aligned with its updated AI Policy and

Rules. The company also developed informational materials and guidelines on AI Dos and Don’ts to educate

employees and external stakeholders on responsible AI practices, enhancing overall awareness.

Additionally, the company established a comprehensive Responsible AI governance framework, including

updated policies, rules, guidelines and a governance structure to align implementation with all businesses. This

framework is designed to oversee the development, deployment and use of AI technologies, ensuring they are

applied responsibly and ethically while mitigating potential risks associated with AI systems.

As part of its commitment to Responsible AI and to ensure compliance with the EU AI Act and other relevant

regulations, Tietoevry launched the Shell Strong project in 2024. Throughout the reporting year, the project

concentrated on identifying a portfolio of external offerings and internal services across the organization that

106

would require AI compliance checks. Initially, the focus has been on evaluating compliance with respect to

prohibited AI systems and high-risk AI solutions. The Shell Strong project further explored offerings and IT

services by categorizing them according to risk levels defined by the EU AI Act and implementing comprehensive

compliance controls. This included developing risk-based AI compliance measures for Tietoevry’s portfolio and

establishing AI governance to monitor business offerings and internal systems. The project also evaluated

suppliers to identify risk-free Gen AI-based providers and internal tools for Tietoevry’s services and employees.

Implementation will proceed in phases over the next 18 months, building foundational capabilities to ensure a

coordinated rollout in alignment with legal and regulatory requirements.

As Responsible AI is a new focus area for Tietoevry, the company cannot report on progress from actions or

plans disclosed in previous periods.

If Tietoevry identifies actions that have caused or contributed to a material negative impact, immediate and

appropriate steps are taken to address the issue. The company’s remediation approach is outlined in the Human

Resources Policy and the Human Rights Policy. In cases where Tietoevry is obligated to offer or participate in

providing remedy, each situation is handled individually on a case-by-case basis.

Tietoevry’s action plan for the material topics related to Responsible AI did not involve significant operational

(Opex) or capital (Capex) expenditures during the 2024 financial year. Additionally, no future financial resources

(Capex and Opex) have been allocated to future action plans at this time.

Metrics and targets

Targets related to Responsible AI (ESRS 2 MDR-T)


Material topic	Type of IRO related to target	Target	Result 2024
Responsible AI	Opportunity, potential negative and potential positive impact.	100% of employees completed the annual Responsible AI e-learning (new target FY2024)	97%

Tietoevry followed its established target-setting methodology, as detailed above in the sections on the target

setting for Responsible AI, while considering the requirements of the EU AI Act. The target received approval

from Group Executive Management, and no assumptions were made during its definition.

Tietoevry has one external target related to Responsible AI, which is the annual target of having 100% of its

employees complete the company’s Responsible AI e-learning on a yearly basis. The target was implemented

during 2024 and no changes to the target have been made during the year. Performance against the target is

shared and reviewed once a year by each of the company’s businesses, as well as on a Group level. The base

year for this target is 2024. No milestones or interim targets have been set, and target measurements are

validated only by assurance providers.

Tietoevry’s target related to Responsible AI is aligned with the company’s AI Policy and the company’s

commitment to responsible production and consumption of AI. In summary, this target helps Tietoevry harness

the potential of Responsible AI while addressing risks, ensuring compliance and capitalizing on new business

opportunities in the AI space.

All entities within the Tietoevry Group are included in the scope of the 100% annual completion target for the

Responsible AI e-learning programme, with the exception of the subsidiary Bekk, which operates fully as a

portfolio company.

The launch of the Responsible AI e-learning programme represents progress, with Tietoevry achieving good

initial results. However, the 100% target has not been met, leaving the final outcome misaligned with the

company's initial plans. As this is the first year of implementation, trends or changes cannot yet be evaluated.

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Appendices

Disclosure of list of ESRS Disclosure Requirements complied with in preparing Sustainability

Statement following outcome of materiality assessment (ESRS 2 IRO-2)


	ESRS 2 - General Disclosures	Page reference
BP-1	General basis for preparation of the Sustainability Statement	38
BP-2	Disclosures in relation to specific circumstances	38
GOV-1	The role of the administrative, management and supervisory bodies	40
GOV-2	Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies	41
GOV-3	Integration of sustainability-related performance in incentive schemes	41
GOV-4	Statement of due diligence	41
GOV-5	Risk management and internal controls over sustainability reporting	42
SBM-1	Strategy, business model and value chain	43
SBM-2	Interests and view of stakeholders	48
SMB-3	Material impacts, risks and opportunities and their interaction with strategy and business model	50
IRO-1	Description of the process to identify and assess material impacts, risks and opportunities	56
IRO-2	Disclosure Requirements in ESRS covered by the undertaking's Sustainability Statement	59


	ESRS E1 - Climate change
E1-1	Transition plan for climate change mitigation	68
SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	69
ESRS 2 IRO-1	Description of the process to identify and assess material climate-related impacts, risks and opportunities	56
E1-2	Policies related to climate change mitigation and adaption	69
E1-3	Actions and resources in relation to climate change policies	69
E1-4	Targets related to climate change mitigation or adaptation	71
E1-5	Energy consumption and mix	72
E1-6	Gross Scopes 1, 2, 3 and Total GHG emissions	73
E1-7	GHG removals and GHG mitigation projects financed through carbon credits	75
E1-8	Internal carbon pricing	75
	ESRS E2 - Pollution
IRO-1	Description of the processes to identify and assess material pollution-related impacts, risks and opportunities	56
	ESRS E3 - Water and marine resources
IRO-1	Description of the processes to identify and assess material water and marine resources-related impacts, risks and opportunities	56
	ESRS E4 - Biodiversity and ecosystems
IRO-1	Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks and opportunities	56
	ESRS E5 - Resource use and circular economy
ESRS 2 IRO-1	Description of the process to identify and assess material resource use and circular economy-related impacts, risks and opportunities	76
E5-1	Policies related to resource use and circular economy	76
E5-2	Actions and resources related to resource use and circular economy	76
E5-3	Targets related to resource use and circular economy	77

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	ESRS S1 - Own workforce
ESRS 2 SMB-2	Interests and view of stakeholders	48
ESRS 2 SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	79
S1-1	Policies related to own workforce	80
S1-2	Processes for engaging with own workforce and workers' representatives	81
S1-3	Processes to remediate negative impacts and channels for own workers to raise concerns	82
S1-4	Taking action on material impacts on own workforce, and approaches to mitigate material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions	82
S1-5	Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities	84
S1-6	Characteristics of the undertaking's employees	85
S1-8	Collective bargaining coverage and social dialogue	86
S1-9	Diversity metrics	87
S1-16	Remuneration metrics (pay gap and total remuneration)	87
S1-17	Incidents, complaints and severe human rights impact	88
	ESRS S2 - Workers in the value chain
ESRS 2 SBM-2	Interests and view of stakeholders	48
ESRS 2 SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	89
S2-1	Policies related to own value chain workers	90
S2-2	Processes for engaging with value chain workers	90
S2-3	Processes to remediate negative impacts and channels for value chain	91
S2-4	Taking action on material impacts on value chain workers	91
S2-5	Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	92


	ESRS S4 - Consumers and end-users
ESRS 2 SMB-2	Interests and views of stakeholders	48
ESRS 2 SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	93
S4-1	Policies related to consumers and end-users	93
S4-2	Processes for engaging with consumers and end-users	94
S4-3	Processes to remediate negative impacts and channels for consumers and end- users to raise concerns	94
S4-4	Taking action on material impacts on consumers and end-users, and approaches to mitigate material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions	95
S4-5	Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities	96
	ESRS G1 - Business conduct
GOV-1	The role of the administrative, management and supervisory bodies	40
IRO-1	Description of the process to identify and assess material resource use and circular economy-related impacts, risks and opportunities	56
G1-1	Business conduct policies and corporate culture	98
G1-3	Prevention and detection of corruption and bribery	99
G1-4	Confirmed incidents of corruption and bribery	100
	Cybersecurity
MDR-P	Policies adopted to manage material sustainability matters	103
MDR-A	Actions and resources in relation to material sustainability matters	104
MDR-T	Tracking effectiveness of policies and actions through targets	104
	Responsible AI
MDR-P	Policies adopted to manage material sustainability matters	105
MDR-A	Actions and resources in relation to material sustainability matters	105
MDR-T	Tracking effectiveness of policies and actions through targets	106

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Appendix B: List of datapoints in cross-cutting and topical standards that derive from other EU legislation (ESRS 2 IRO-2)


Disclosure Requirement and related datapoint	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Comments/Location in Sustainability Statement
ESRS 2 GOV-1 Board's gender diversity paragraph 21 (d)	Indicator number 13 of Table #1 of Article 1		Commission Delegated Regulation (EU) 2020/1816 Annex II		GOV-1
ESRS GOV-1 Percentage of board members who are independent paragraph 21 (e)			Delegated Regulation (EU 2020/1816, Annex II		GOV-1
ESRS 2 GOV-4 Statement on due diligence paragraph 30	Indicator number 13 of Table #1 of Article 1				GOV-4
ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i	Indicators number 4 Table #1 of Annex 1	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/245328 Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk	Delegated Regulation (EU) 2020/1816, Annex II		SBM-1
ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii	Indicator number 9 Table #2 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II		SBM-1
ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii	Indicator number 14 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1818, Article 12 (1) Delegated Regulation (EU 2020/1816, Annex II		SBM-1
ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv			Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II		SBM-1
ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14			Regulation (EU) 2021/1119, Article 2(1)		E1-1
ESRS E1-1 Undertaking is excluded from Paris-aligned Benchmarks 16 (g)		Article 449a Regulation (EU) No575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate Change transition risk: Credit quality of exposures by sector, emissions and residual maturity	Delegated Regulation (EU) 2020/1818, Article 12.1 (d) to (g) and Article 12.2		E1-1
ESRS E1-4 GHG emission reduction targets paragraph 34	Indicator number 4 Table #2 of Annex 1	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics	Delegated Regulation (EU) 2020/1818, Article 6		E1-4

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Disclosure Requirement and related datapoint	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Comments/Location in Sustainability Statement
ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38	Indicator number 5 Table #1 and Indicator n. 5 Table #2 of Annex 1				Not material
ESRS E1-5 Energy consumption and mix paragraph 37	Indicator number 5 Table #1 of Annex 1				E1-5
ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43	Indicator number 6 Table #1 of Annex 1				Not material
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44	Indicators number 1 and 2 Table #1 of Annex 1	Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity	Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1)		E1-6
ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55	Indicators number 3 Table #1 of Annex 1	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics	Delegated Regulation (EU) 2020/1818, Article 8(1)		E1-6
ESRS E1-7 GHG removals and carbon credits paragraph 56				Regulation (EU) 2021/1119, Article 2(1)	E1-7
ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66		Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II			Phase-in, not reported for FY2024
ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c).		Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book – Climate change physical risk: Exposures subject to physical risk.			Phase-in, not reported for FY2024
ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy- efficiency classes paragraph 67 (c).		Article 449a Regulation (EU) No 575/2013;Commission Implementing Regulation (EU) 2022/2453 paragraph 34;Template 2: Banking book – Climate change transition risk: Loans collateralised by immovable property – Energy efficiency of the collateral			Phase-in, not reported for FY2024
ESRS E1-9 Degree of exposure of the portfolio to climate related opportunities paragraph 69			Delegated Regulation (EU) 2020/1818, Annex II		Phase-in, not reported for FY2024

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Disclosure Requirement and related datapoint	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Comments/Location in Sustainability Statement
ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28	Indicator number 8 Table #1 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1				Not material
ESRS E3-1 Water and marine resources paragraph 9	Indicator number 7 Table #2 of Annex 1				Not material
ESRS E3-1 Dedicated policy paragraph 13	Indicator number 8 Table 2 of Annex 1				Not material
ESRS E3-1 Sustainable oceans and seas paragraph 14	Indicator number 12 Table #2 of Annex 1				Not material
ESRS E3-4 Total water recycled and reused paragraph 28 (c )	Indicator number 6.2 Table #2 of Annex 1				Not material
ESRS E3-4 Total water consumption in m3 per net revenue on own operations paragraph 29	Indicator number 6.1 Table #2 of Annex 1				Not material
ESRS 2- IRO 1 - E4 paragraph 16 (a) i	Indicator number 7 Table #1 of Annex 1				IRO-1
ESRS 2- IRO 1 - E4 paragraph 16 (b)	Indicator number 10 Table #2 of Annex 1				IRO-1
ESRS 2- IRO 1 - E4 paragraph 16 (c)	Indicator number 14 Table #2 of Annex 1				IRO-1
ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b)	Indicator number 11 Table #2 of Annex 1				Not material
ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c)	Indicator number 12 Table #2 of Annex 1				Not material
ESRS E4-2 Policies to address deforestation paragraph 24 (d)	Indicator number 15 Table #2 of Annex 1				Not material
ESRS E5-5 Non-recycled waste paragraph 37 (d)	Indicator number 13 Table #2 of Annex 1				Not material
ESRS E5-5 Hazardous waste and radioactive waste paragraph 39	Indicator number 9 Table #1 of Annex 1				Not material

112


Disclosure Requirement and related datapoint	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Comments/Location in Sustainability Statement
ESRS 2- SBM-3 - S1 Risk of incidents of forced labour paragraph 14 (f)	Indicator number 13 Table #3 of Annex I				S1 SBM-3
ESRS 2- SBM-3 - S1 Risk of incidents of child labour paragraph 14 (g)	Indicator number 12 Table #3 of Annex I				S1 SBM-3
ESRS S1-1 Human rights policy commitments paragraph 20	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I				S1-1
ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21			Delegated Regulation (EU) 2020/1816, Annex II		S1-1
ESRS S1-1 Processes and measures for preventing trafficking in human beings paragraph 22	Indicator number 11 Table #3 of Annex I				S1-1
ESRS S1-1 Workplace accident prevention policy or management system paragraph 23	Indicator number 1 Table #3 of Annex I				S1-1
ESRS S1-3 Grievance/complaints handling mechanisms paragraph 32 (c)	Indicator number 5 Table #3 of Annex I				S1-3
ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c)	Indicator number 2 Table #3 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II		Not material
ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e)	Indicator number 3 Table #3 of Annex I				Not material
ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a)	Indicator number 12 Table #1 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II		S1-16
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b)	Indicator number 8 Table #3 of Annex I				S1-16
ESRS S1-17 Incidents of discrimination paragraph 103 (a)	Indicator number 7 Table #3 of Annex I				S1-17

113


Disclosure Requirement and related datapoint	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Comments/Location in Sustainability Statement
ESRS S1-17 Non respect of UNGPs on Business and Human Rights and OECD paragraph 104 (a)	Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1)		S1-17
ESRS 2 - SBM3 – S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b)	Indicators number 12 and n. 13 Table #3 of Annex I				S2 SBM-3
ESRS S2-1 Human rights policy commitments paragraph 17	Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1				S2-1
ESRS S2-1 Policies related to value chain workers paragraph 18	Indicator number 11 and n. 4 Table #3 of Annex 1				S2-1
ESRS S2-1 Non respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19	Indicator number 10 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1)		S2-1
ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 19			Delegated Regulation (EU) 2020/1816, Annex II		S2-1
ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36	Indicator number 14 Table #3 of Annex 1				S2-4
ESRS S3-1 Human rights policy commitments paragraph 16	Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1				Not material
ESRS S3-1 Non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines paragraph 17	Indicator number 10 Table #1 Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1)		Not material
ESRS S3-4 Human rights issues and incidents paragraph 36	Indicator number 14 Table #3 of Annex 1				Not material

114


Disclosure Requirement and related datapoint	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Comments/Location in Sustainability Statement
ESRS S4-1 Policies related to consumers and end-users paragraph 16	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1				S4-1
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17	Indicator number 10 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1)		S4-1
ESRS S4-4 Human rights issues and incidents paragraph 35	Indicator number 14 Table #3 of Annex 1				S4-4
ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b)	Indicator number 15 Table #3 of Annex 1				G1-1
ESRS G1-1 Protection of whistleblowers paragraph 10 (d)	Indicator number 6 Table #3 of Annex 1				G1-1
ESRS G1-4 Fines for violation of anti- corruption and anti-bribery laws paragraph 24 (a)	Indicator number 17 Table #3 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II)		G1-4
ESRS G1-4 Standards of anti-corruption and anti- bribery paragraph 24 (b)	Indicator number 16 Table #3 of Annex 1				G1-4

115

Financial

Statements

116

Consolidated Financial Statements118

Notes to the consolidated

financial statements123

Parent company’s financial statements179

Notes to the Parent Company’s

Financial Statements182

Proposal for distribution to shareholders190

Signatures for the report by the Board of

Directors’, Sustainability Statement and

Financial Statements, and Auditors note 191

Financial

Statements

117


Consolidated Financial Statements (IFRS)		FINANCIAL RISK MANAGEMENT AND CAPITAL STRUCTURE		10. Investments	186
Income statement	118	20. Management of financial risks and capital structure	160	11. Long-term receivables	186
Statement of other comprehensive income	118	21. Interest-bearing loans and borrowings	165	12. Current receivables	186
Statement of financial position	119	22. Financial income and expenses	167	13. Prepaid expenses and accrued income	187
Statement of cash flows	120	23. Financial assets and liabilities	168	14. Changes in shareholders' equity	187
Statement of changes in shareholders' equity	121	24. Derivatives	170	15. Provisions	188
		25. Cash and cash equivalents	171	16. Non-Current liabilities	188
Notes to the consolidated financial statements (IFRS)		26. Share capital and reserves	171	17. Current liabilities	188
BASIS OF PREPARATION		OTHER INFORMATION		18. Accrued liabilities and deferred income	189
1. Corporate information	123	27. Acquisitions and divestments	173	19. Deferred tax assets and liabilities	189
2. Material accounting policy information	123	28. Subsidiaries	175	20. Contingent liabilities	189
3. Adoption of new and amended IFRS accounting standards and interpretations	124	29. Interests in joint ventures	177	21. Derivatives	190
	124	30. Related party transactions	177	22. Management of financial risks	190
4. Use of judgements and estimates	124	31. Commitments and contingencies	178
PERFORMANCE FOR THE YEAR		32. Events after the reporting period	178	Proposal for distribution to shareholders	190
5. Segment information	125			Signatures for the report by the Board of Directors, Sustainability Statement and Financial Statements, and Auditors note	191
6. Revenue	128
7. Other operating income and expenses	131	Parent company's financial statements (FAS)
8. Income taxes	132	Income statement	179
9. Earnings per share	135	Balance sheet	180	Auditor's report	192
COMPENSATION AND BENEFITS		Statement of cash flows	181	Assurance report on the Sustainability Statement	197
10. Employee expenses	136			Independent auditor’s report on the ESEF consolidated financial statements of Tietoevry Oyj	200
11. Remuneration of key management	137	Notes to the Parent Company's Financial Statements (FAS)	182		200
12. Share-based payments	139	1. Net sales	183
13. Defined benefit plans	142	2. Other operating income	183
INVESTED CAPITAL AND WORKING CAPITAL ITEMS		3. Personnel expenses	183
14. Goodwill and other intangible assets	146	4. Other operating expenses	183
15. Property, plant and equipment	151	5. Management remuneration	183
16. Leases	153	6. Financial income and expenses	184
17. Trade and other receivables	156	7. Income taxes	184
18. Provisions	158	8. Intangible assets	185
19. Trade and other payables	159	9. Tangible assets	185

118

CONSOLIDATED FINANCIAL STATEMENTS (IFRS)

Income statement


EUR million	Note	2024	2023
Revenue	5, 6	2 802.6	2 851.4
Other operating income	7	16.0	22.2
Materials and services		-536.9	-567.2
Employee benefit expenses	10, 11, 12, 13	-1 566.3	-1 566.0
Depreciation and amortization	14, 15, 16	-162.2	-152.4
Impairment losses	14, 15, 16, 29	-201.5	-4.8
Other operating expenses	7	-322.7	-328.9
Share of results in joint ventures	29	0.9	1.3
Operating profit (EBIT)		29.8	255.6
Interest and other financial income	22	7.0	23.7
Interest and other financial expenses	22	-56.1	-61.7
Net foreign exchange gains/losses	22	-2.6	3.1
Profit/loss before taxes		-21.8	220.8
Income taxes	8	-41.0	-48.6
Net profit/loss for the financial year		-62.8	172.2

Net profit/loss for the financial year attributable to
Owners of the Parent company		-62.8	172.2

Earnings per share attributable to owners of the Parent company, EUR per share	9
Basic		-0.53	1.45
Diluted		-0.53	1.45

Notes are an integral part of these consolidated financial statements.

Statement of other

comprehensive income


EUR million	Note	2024	2023
Net profit/loss for the financial year		-62.8	172.2
Items that may be reclassified subsequently to profit or loss
Translation differences	26	-80.8	-99.8
Items that will not be reclassified subsequently to profit or loss
Remeasurements of the defined benefit plans	13	0.7	0.6
Income tax related to remeasurements	8	-0.3	-0.1
Total comprehensive income		-143.1	72.9

Total comprehensive income attributable to
Owners of the Parent company		-143.1	72.9

119

Statement of financial position

Assets


EUR million	Note	31 Dec 2024	31 Dec 2023
Non-current assets
Goodwill	14, 27	1 648.2	1 907.3
Other intangible assets	14, 27	313.8	339.6
Property, plant and equipment	15	82.2	88.8
Right-of-use assets	16	175.8	195.9
Interests in joint ventures	29	—	11.6
Deferred tax assets	8	5.4	11.8
Defined benefit plan assets	13	0.8	1.0
Other financial assets at amortized cost	23	14.7	15.1
Other financial assets at fair value1)	23, 24	12.3	16.1
Other non-current receivables	17	25.1	34.7
Total non-current assets		2 278.4	2 621.9
Current assets
Inventories		7.1	8.6
Trade and other receivables1)	16, 17, 23	550.7	638.1
Financial assets at fair value	23, 24	13.7	17.5
Current tax assets		9.3	12.7
Cash and cash equivalents	25	195.1	219.6
Total current assets		775.9	896.6

Total assets		3 054.3	3 518.4

Notes are an integral part of these consolidated financial statements.

Equity and liabilities


EUR million	Note	31 Dec 2024	31 Dec 2023
Equity
Share capital	26	76.6	76.6
Share premium and other reserves	26	38.5	39.4
Invested unrestricted equity reserve	26	1 203.5	1 203.5
Retained earnings	26	-20.5	293.0
Total equity		1 298.1	1 612.3
Non-current liabilities
Loans	21, 23	569.6	539.5
Lease liabilities	16, 21, 23	142.6	161.4
Deferred tax liabilities	8	24.1	27.5
Provisions	18	2.6	2.5
Defined benefit obligations	13	26.1	26.5
Financial liabilities at fair value1)	23, 24	16.5	20.0
Other non-current liabilities	19	6.1	10.8
Total non-current liabilities		787.6	788.4
Current liabilities
Trade and other payables1)	19, 23	545.4	616.0
Financial liabilities at fair value	23, 24	7.1	4.9
Current tax liabilities		10.1	20.0
Loans	21, 23	334.9	411.9
Lease liabilities	16, 21, 23	50.5	50.3
Provisions	18	20.7	14.6
Total current liabilities		968.7	1 117.7

Total equity and liabilities		3 054.3	3 518.4

1) Comparative information has been updated, see note 24.

120

Statement of cash flows


EUR million	Note	2024	2023
Cash flow from operating activities
Net profit/loss for the financial year		-62.8	172.2
Adjustments
Depreciation, amortization and impairment losses	14, 15, 16, 29	363.8	157.2
Profit/loss on sale of property, plant and equipment, and business operations		-4.6	-7.0
Share of results in joint ventures	29	-0.9	-1.3
Other adjustments		3.7	12.2
Net financial expenses	22	51.6	34.9
Income taxes	8	41.0	48.6
Change in net working capital
Change in current receivables		81.3	-64.7
Change in current non-interest-bearing liabilities		-54.9	-30.5
Cash generated from operating activities before interests and taxes		418.2	321.5
Interests received		10.6	8.0
Interests paid		-42.7	-31.1
Other financial income received		25.1	20.6
Other financial expenses paid		-42.7	-26.6
Dividends received	29	1.0	1.3
Income taxes paid		-43.8	-27.7
Cash flow from operating activities		325.7	266.1

Notes are an integral part of these consolidated financial statements.


EUR million	Note	2024	2023
Cash flow from investing activities
Acquisition of business operations, net of cash acquired	27, 29	-1.0	-156.3
Capital expenditure	14, 15	-85.6	-84.1
Disposal of business operations, net of cash disposed	27, 29	13.1	0.4
Proceeds from sale of property, plant and equipment		1.2	10.6
Change in loan receivables		0.4	0.1
Cash flow used in investing activities		-71.8	-229.3

Cash flow from financing activities
Dividends paid		-174.2	-171.7
Repurchase of own shares		—	-9.8
Repayments of lease liabilities	16, 21	-56.6	-58.1
Proceeds from short-term borrowings	21	333.7	195.2
Repayments of short-term borrowings	21	-407.4	-131.3
Proceeds from long-term borrowings	21	350.0	214.0
Repayments of long-term borrowings	21	-320.8	-99.5
Cash flow used in financing activities		-275.4	-61.2

Change in cash and cash equivalents		-21.5	-24.5

Cash and cash equivalents at the beginning of period	25	219.6	249.7
Foreign exchange differences		-3.1	-5.5
Change in cash and cash equivalents		-21.5	-24.5
Cash and cash equivalents at the end of period		195.1	219.6

121

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
1 Jan 2024		76.6	39.4	-1.1	-276.8	1 203.5	570.9	1 612.3

Comprehensive income
Net loss for the period		—	—	—	—	—	-62.8	-62.8
Other comprehensive income, net of tax
Remeasurements of the defined benefit plans, net of tax	13	—	—	—	—	—	0.4	0.4
Translation differences		—	-0.8	—	-70.9	—	-9.1	-80.8
Total comprehensive income		—	-0.8	—	-70.9	—	-71.4	-143.1

Transactions with owners
Contributions and distributions
Share-based incentive plans	12	—	—	—	—	—	3.0	3.0
Dividends	26	—	—	—	—	—	-174.2	-174.2
Total transactions with owners		—	—	—	—	—	-171.1	-171.1

31 Dec 2024		76.6	38.5	-1.1	-347.8	1 203.5	328.4	1 298.1

122


		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
1 Jan 2023		76.6	39.3	-0.3	-193.5	1 203.5	593.7	1 719.2

Comprehensive income
Net profit for the financial year		—	—	—	—	—	172.2	172.2
Other comprehensive income, net of tax
Remeasurements of the defined benefit plans, net of tax	13	—	—	—	—	—	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	12	—	—	9.0	—	—	-7.3	1.7
Dividends	26	—	—	—	—	—	-171.7	-171.7
Repurchase of own shares	26	—	—	-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

Notes are an integral part of these consolidated financial statements.

123

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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.

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's shares are listed on NASDAQ in Helsinki and Stockholm and the Oslo Børs.

Tietoevry is a leading Nordic digital services and software company that employs around 23 000 experts

globally. Tietoevry serves thousands of enterprise and public sector customers in around 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 3 March 2025. 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.

2. Material accounting policy information

These consolidated financial statements of Tietoevry have been prepared in accordance with International

Financial Reporting Standards (IFRS) Accounting Standards as adopted by the European Union. The financial

statements also comply with Finnish accounting principles and corporate legislation complementing IFRS

accounting standards. 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 ("the Group"). 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 profit or loss 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.

124

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 monthly average exchange

rates;

• 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 accounting standards and interpretations

The following amendments to IFRS accounting standards became effective on 1 January 2024. They have not

had a material impact on the amounts reported or on the disclosures in these financial statements.

• Amendments to IAS 1 – Non-current Liabilities with Covenants

• Amendments to IAS 1 – Classification of Liabilities as Current or Non-current

• Amendments to IAS 7 and IFRS 7 – Supplier Finance Arrangements

• Amendments to IFRS 16 – Lease Liability in a Sale and Leaseback

New and revised IFRS accounting 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

accounting 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 accounting standards 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 accounting standards permit 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 a different estimate could result

in a 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	14
Other intangible assets	X	X	14
Provisions	X		18
Deferred taxes	X		8

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. The main considerations were as follows:

• Note 14 Goodwill and other intangible assets, Note 15 Property, plant and equipment, and Note 16 Leases

include disclosures describing the assets that form the basis for the activities of Tietoevry. Environmental

considerations represent an implicit element when preparing projections of future business performance

as inputs to the long-term plan and any other basis for asset valuations i.e. all matters that impact

business performance including the valuations of assets, are considered by management.

• Note 18 Provisions – provisions comprise mainly restructuring and other employee related provisions,

and contract-related provisions. The overall corporate risk management process uses input from all

Group functions (including finance and sustainability teams) as well as the businesses. There is no impact

from climate-change or any other environmental considerations on the provisions as at 31.12.2024.

• Note 12 Share-based payments provides a description of the long-term incentive plans including the

environmental, social and governance (ESG) related targets e.g. gender diversity and CO2 reduction in

the 2023-2025 and 2024–2026 plans.

• Note 20 Management of financial risks and capital structure – the Group’s revolving credit facility is

linked to selected sustainability targets of Tietoevry, see note 20.

125

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 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.


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 accounting standards. 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 around 90 countries.

126

Disaggregation of revenue by segment


EUR million	2024	2023	Change %
Tietoevry Create	836.9	852.3	-2
Tietoevry Banking	580.4	567.2	2
Tietoevry Care	231.3	232.8	-1
Tietoevry Industry	263.7	262.6	0
Tietoevry Tech Services	1 000.7	1 072.7	-7
Eliminations	-110.4	-136.1	-19
Group total	2 802.6	2 851.4	-2

The comparative information for segment revenue and operating profit (EBIT) was recast to reflect minor

changes between segments arising due to structural changes in 2024. Group totals remained unchanged.

Operating profit/loss and margin (EBIT) by segment


	Operating profit/loss (EBIT), EUR million	Operating profit (EBIT), EUR million		Operating margin (EBIT), %	Operating margin (EBIT), %
	2024	2023	Change %	2024	2023
Tietoevry Create	71.2	95.5	-25	8.5	11.2
Tietoevry Banking	44.8	42.9	5	7.7	7.6
Tietoevry Care	63.5	68.3	-7	27.5	29.3
Tietoevry Industry	30.5	36.9	-17	11.6	14.0
Tietoevry Tech Services	-139.4	51.9	> 100	-13.9	4.8
Non-allocated costs	-40.8	-39.8	2	—	—
Group total	29.8	255.6	-88	1.1	9.0

For more information, see Impairment losses and notes 7, 14 and 29.

Revenue by country


EUR million	2024	2023	Change %
Finland	650.4	644.2	1
Sweden	835.2	901.3	-7
Norway	938.3	948.6	-1
Other	378.7	357.2	6
Group total	2 802.6	2 851.4	-2

The distribution of revenue by country is based on the invoicing country. No single customer represents 10% or

more of revenue.

Non-current assets by country


EUR million	31 Dec 2024	31 Dec 2023	Change %
Finland	110.3	110.9	-1
Sweden	100.7	110.7	-9
Norway	291.0	331.4	-12
Other	69.8	71.3	-2
Group total	571.8	624.3	-8

Non-current assets include property, plant and equipment, right of use assets and intangible assets excluding

goodwill.

127

Personnel by segment


	End of period				Average
	2024	2023	Change %	Share %	2024	2023
Tietoevry Create	8 831	9 618	-8	38	9 190	9 248
Tietoevry Banking	3 296	3 509	-6	14	3 421	3 518
Tietoevry Care1)	1 553	1 529	2	7	1 578	1 511
Tietoevry Industry	1 593	1 644	-3	7	1 610	1 666
Tietoevry Tech Services1)	7 073	7 283	-3	31	7 230	7 649
Group functions	594	576	3	3	565	589
Group total	22 941	24 159	-5	100	23 593	24 181

1) In 2024, personnel were transferred from Tietoevry Care to Tietoevry Tech Services and the comparative information was recast accordingly.

Personnel by country


	End of period				Average
	2024	2023	Change %	Share %	2024	2023
Sweden	3 516	3 856	-9	15	3 702	3 980
Norway	3 731	3 922	-5	16	3 797	3 951
Finland	2 998	3 015	-1	13	3 034	3 101
India	4 131	4 308	-4	18	4 259	4 390
Czech Republic	2 315	2 381	-3	10	2 338	2 497
Ukraine	1 442	1 728	-17	6	1 551	1 835
Latvia	1 078	1 070	1	5	1 095	1 091
China	1 016	1 044	-3	4	1 031	1 053
Poland	911	839	9	4	864	833
Bulgaria	646	780	-17	3	717	350
Other	1 156	1 217	-5	5	1 205	1 100
Group total	22 941	24 159	-5	100	23 593	24 181
Onshore countries	10 787	11 370	-5	47	11 099	11 586
Offshore countries	12 153	12 789	-5	53	12 494	12 595
Group total	22 941	24 159	-5	100	23 593	24 181

Depreciation by segment


EUR million	2024	2023	Change %
Tietoevry Create	6.7	6.6	1
Tietoevry Banking	7.0	4.8	44
Tietoevry Care	1.1	1.0	12
Tietoevry Industry	0.8	0.7	13
Tietoevry Tech Services	48.5	44.6	9
Group functions1)	33.4	40.8	-18
Group total	97.5	98.5	-1

1) Includes depreciation of right-of-use assets relating to shared premises. In operating profit (EBIT), such costs are fully allocated to the operating

segments.

Amortization on other intangible assets by segment


EUR million	2024	2023	Change %
Tietoevry Create	0.0	0.1	> 100
Tietoevry Banking	11.2	3.6	> 100
Tietoevry Care	2.6	2.5	6
Tietoevry Industry	0.1	0.2	-41
Tietoevry Tech Services	6.8	5.4	27
Group functions	0.1	0.3	-49
Group total	21.0	12.0	74

Amortization of acquisition-related intangible assets by segment


EUR million	2024	2023	Change %
Tietoevry Create	12.5	10.0	25
Tietoevry Banking	19.0	19.3	-1
Tietoevry Care	0.2	0.2	0
Tietoevry Industry	4.5	4.7	-5
Tietoevry Tech Services	7.6	7.7	-2
Group functions	—	—	—
Group total	43.8	41.8	5

128

Impairment losses

In 2024, as part of the annual impairment testing carried out in the fourth quarter, Tietoevry recorded a non-cash

charge of EUR 200.0 million in impairment losses. The impairment loss related to the goodwill held in Tietoevry

Tech Services, which reduced the carrying amount of its goodwill to EUR 233.6 million as at 31 December 2024.

For more information, see note 14.

Further, Tietoevry Tech Services recognized an impairment loss of EUR 0.6 million on a right-of-use asset.

Tietoevry Care recognized an impairment loss of EUR 0.6 million on capitalized development costs. Tietoevry

Create bought the remaining 20% share of the joint venture Tieto Esy Oy, which resulted in an impairment loss of

EUR 0.3 million.

In 2023, the Group recognized 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.

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.

129


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.
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 earlier purchases of 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 (costs to fulfil a contract) 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 to fulfil a contract are amortized during the period when the revenue for the related continuous operating service contract is recognized.

130

Assets and liabilities related to contracts with customers


EUR million	Note	31 Dec 2024	31 Dec 2023	1 Jan 2023
Trade receivables	17	391.8	476.8	408.9
Contract assets	17	50.4	58.4	52.0
Contract liabilities, non-current	19	2.4	6.8	16.9
Contract liabilities, current	19	49.6	77.3	67.2

In 2023, increases due to acquisitions (see note 27) were EUR 7.9 million in trade receivables and EUR 0.1 million

in contract liabilities.

Revenue recognised from the opening balance of contract liabilities was EUR 69.9 (60.3) million.

Order backlog

The transaction price allocated to all fully or partially unsatisfied performance obligations (order backlog)

amounted to EUR 3 261 (3 236) million at the end of the year. Of the backlog, 52% is expected to be recognized

as revenue during 2025. 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	2024	2023
Capitalized set-up costs on 31 Dec	2.6	5.8
Amortization of capitalized set-up costs	3.0	6.6

In the statement of financial position, capitalized set-up costs of EUR 0.8 (0.4) million are presented within other

non-current receivables and the current portion of EUR 1.8 (5.4) million in trade and other receivables.

Customer contract settlements related to ransomware attack

In 2024, Tietoevry experienced a criminal ransomware attack in one of its data centres in Sweden. As a result,

the Group recorded costs of approximately EUR 1.5 million, the majority of which relates to the restoration of

services, and contractual service level agreement (SLA) penalties of approximately EUR 0.6 million as a reduction

in revenue. Further, Tietoevry received claims for damages from customers which have been assessed based on

legal and commercial considerations. The Group recorded EUR 7.6 million as a reduction in revenue, the majority

of which relates to claims resolved by year-end. In parallel, the claims process is ongoing with the insurance

provider and is expected to take several quarters to reach a conclusion.

131

7. Other operating income and expenses

Other operating income mainly relates to capital gains, foreign exchange gains on derivatives and government

grants. 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.

Other operating income


EUR million	2024	2023
Gain on sale of property, plant and equipment, and business operations	4.6	7.1
Change in fair value of derivatives	3.3	7.2
Government grants	2.0	2.5
Rental income	0.7	1.0
Joint venture management fees	0.2	0.6
Other	5.2	3.9
Total	16.0	22.2

In 2024, Tietoevry Banking recognized a net gain of EUR 4.3 million on the sale of its share in a joint venture. For

more information, see note 29.

In 2023, Tietoevry Tech Services completed a sale and partial leaseback transaction 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.

Other operating expenses


EUR million	2024	2023
Information and communication technology	192.4	193.7
Premises related costs	41.3	44.6
Professional services and marketing	43.1	43.4
Other1)	45.9	47.2
Total	322.7	328.9

1) Other operating expenses include expenses related to travel, recruitment and insurance.

Fees to auditors


EUR million	2024	2023
Audit fees	1.6	1.6
Audit related	0.4	0.3
Tax advisory	0.0	0.0
Other services	0.3	0.3
Total	2.3	2.1

132

8. 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 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 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 deferred tax asset is realized or the deferred 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	2024	2023
Current taxes	38.5	40.4
Change of deferred taxes	2.7	11.2
Taxes for prior years	-0.2	-3.0
Total	41.0	48.6

Reconciliation of income tax expense


EUR million	2024	2023
Profit/loss before taxes	-21.8	220.8
Tax calculated at the domestic corporation tax rate of 20%	-4.4	44.2

Effect of different tax rates in foreign subsidiaries	0.8	2.8
Tax effect of non-deductible goodwill impairment	43.4	—
Tax effect of other non-deductible expenses and tax exempt income	0.7	1.3
Taxes for prior years	-0.2	-3.0
Deferred taxes from previous year	-0.8	0.1
Tax on foreign dividend distribution	2.0	4.6
Other items	-0.6	-1.4
Total	41.0	48.6
Effective tax rate, %	-187.8	22.0

Impact of OECD Pillar Two model rules

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. The relevant legislation has been effective from 1 January 2024 in Finland, and Tietoevry Corporation is

within the scope of these rules.

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. In the majority of the Group's tax jurisdictions, the tax rate is

at or above the minimum level of 15% while the remaining jurisdictions meet the other Transitional Safe Harbour

rules. Therefore the Group has no tax exposure related to Pillar Two. The Group applies the exception to

recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two taxes, as

provided in the amendment to IAS 12.

133

Movements in deferred tax assets and liabilities


EUR million	1 Jan 2024	Charged to income statement	Charged to other comprehensive income	Other changes	31 Dec 2024
Deferred tax asset
Tax losses carried forward	23.6	-6.6	—	-0.9	16.1
Property, plant and equipment	16.6	-2.7	—	-6.8	7.0
Lease liabilities	40.1	-0.5	—	-0.3	39.3
Employee benefits	9.3	-0.2	0.0	-0.1	8.9
Provisions	1.6	1.2	—	0.0	2.8
Revenue recognition	3.6	-1.2	—	-0.2	2.3
Other temporary difference	1.2	2.5	—	0.0	3.7
Total gross	96.1	-7.6	0.0	-8.3	80.1
Offset against deferred tax liabilities	-84.2				-74.7
Total net	11.8				5.4

Deferred tax liability
Intangible assets	42.8	-6.1	—	-0.7	36.0
Right-of-use assets	35.4	0.7	—	-0.2	36.0
Untaxed reserves	10.1	0.0	—	-0.3	9.8
Other temporary difference	23.5	0.5	-0.1	-6.8	17.0
Total gross	111.7	-4.9	-0.1	-7.9	98.8
Offset against deferred tax assets	-84.2				-74.7
Total net	27.5				24.1

Net balance	-15.7	-2.7	0.1	-0.4	-18.7

The majority of the deferred tax assets and liabilities is expected to be recovered after more than 12 months.

On 31 December 2024, the Group's unused tax loss carry forwards amounted to EUR 73.6 (108.9) million pertaining to deferred tax assets of EUR 16.1 (23.6) 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 2024, the Group had tax loss carry forwards amounting to EUR 0.4 ( 0.4) 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.

134


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 balance	3.9	-11.2	-0.2	-5.5	-2.8	-15.7

135

9. Earnings per share

The total number of Tietoevry's shares on 31 December 2024 amounted to 118 640 150 . At the end of the

reporting period, the number of own shares totalled 45 239, representing 0.04% of the total number of shares

and voting rights. For more information, see note 26.


ACCOUNTING POLICIES
Basic Earnings per share (EPS) is calculated by dividing the net profit or loss 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.


	2024	2023
Net profit/loss for the financial year attributable to owners of the Parent company (EUR million)	-62.8	172.2

Earnings per share (EUR)
Basic	-0.53	1.45
Diluted	-0.53	1.45

Weighted average number of shares during the year
Basic	118 522 308	118 375 769
Effect of dilutive share-based incentive plans	104 015	271 334
Diluted	118 626 323	118 647 103

136

COMPENSATION AND BENEFITS

This section comprises disclosures on the Group's employee benefits, including remuneration of the

management and the Board of Directors.

10. Employee benefit expenses

Employee expenses consist of wages and salaries and related social costs. Tietoevry has 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.

Employee benefit expenses


EUR million	2024	2023
Wages and salaries1)	1 217.5	1 219.3
Post-employment benefits
Defined contribution plans	93.3	92.4
Defined benefit plans	7.4	2.2
Other benefits	25.6	23.8
Other statutory social costs2)	214.8	217.4
Share-based payments2)	6.5	9.5
Other personnel expenses	1.2	1.4
Total	1 566.3	1 566.0

1) Includes termination benefits.

2) Social costs reclassified from Share-based payments to Other statutory social costs for the comparative information.

137

11. Remuneration of key management

Key management of Tietoevry includes the members of the Board of Directors, the Group Executive

Management and the President and CEO.


ACCOUNTING POLICIES
Remuneration for management and the Board of Directors includes all forms of consideration paid, payable or provided by Tietoevry in exchange for services rendered.

Management remuneration


	2024		2023
EUR thousand	President and CEO	Group Executive Management	President and CEO	Group Executive Management1)
Salaries and benefits	914.3	3 198.0	875.0	3 339.4
Bonuses2)	105.8	478.8	404.7	1 039.2
Termination benefits	—	294.3	—	—
Share-based payments3)	678.8	832.2	1 105.6	2 415.3
Statutory pensions	163.9	328.5	214.8	433.8
Supplementary pensions	225.8	351.3	213.3	458.7
Management entity compensation4)	—	193.5	—	—
Total	2 088.6	5 676.6	2 813.4	7 686.4

1) The comparative information for the Group Executive Management has been updated based on amounts paid and final estimates for accruals.

2) In 2024, the bonuses are based on latest estimates. The comparative information has been updated based on the amounts paid.

3) Share-based payments include EUR 66.5 thousand to be paid as a termination benefit.

4) A management entity providing key management personnel services was established on a temporary basis with an end date of 31 December 2024.

The table includes management remuneration based on the time as a member in the Group Executive

Management and it is presented on an accrual basis, except as noted above.

The President and CEO, Kimmo Alkio is entitled to an on-target bonus of 75% of his base salary, and up to a

maximum of 150% of the base salary. The targets are based on the Group's external revenue, profit, cash-flow

and achievement of strategic goals. 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 2024, after deductions for applicable taxes, a total of 24 150

(29 563) shares were delivered to the President and CEO.

Generally, the members of the Group Executive Management are entitled to an on-target bonus of 50% of the

base salary, and up to a maximum of 100% of the base salary. The targets are based on their individual goals.

The annual contribution for the Group Executive Management members' supplementary pension arrangement is

up to 15% of the annual base salary. The retirement age of the Group Executive Management members is

according to national legislation. The termination terms vary and the amounts correspond to the periods of

notice. The Group Executive Management members participate in the Long-term incentive programmes

according to respective terms and conditions decided by the Board of Directors. In 2024, after deductions for

applicable taxes, a total of 27 120 (54 445) shares were delivered to the Group Executive Management

members.

138

Remuneration for the Board of Directors


EUR thousand	2024	2023
Board members at 31 Dec 2024
Tomas Franzén, Chairperson Board and RC	187.9	173.0
Harri-Pekka Kaukonen, Deputy Chairperson, Chairperson ARC1)	117.5	106.4
Bertil Carlsén1)	85.6	75.7
Elisabetta Castiglioni	85.6	74.9
Liselotte Hägertz Engstam	84.0	77.3
Katharina Mosheim	85.6	77.3
Gustav Moss1)	95.2	81.3
Endre Rangnes1, 2)	86.4	82.9
Petter Söderström1)	96.0	81.3
Timo Ahopelto, Deputy Chairperson3)	—	2.4
Niko Pakalén3)	—	3.2
Angela Mazza Teufer3)	—	0.8
Anders Palklint, personnel rep.	15.3	15.0
Thomas Slettemoen, personnel rep.	15.3	7.5
Ilpo Waljus, personnel deputy rep.	7.7	7.5
Tommy Sander Aldrin, personnel deputy rep.	7.7	15.0
Total	969.7	881.5

1) Shares were not purchased due to the resolution by the AGM not to deliver shares due to insider regulation or other justified reason. The cash

portions to be paid together with the share purchases.

2) Board member until 3 September 2024.

3) Board member until 23 March 2023.

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 137 500, Deputy Chairperson EUR 73 500, and ordinary member EUR 55 600. 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 15 300, and

remuneration for the deputy members will be EUR 7 650. 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 or other justified reason according to the AGM

resolution, 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 (SNB) based on shareholdings as at 2 September 2024 consisted of the

following representatives announced by Tietoevry’s shareholders:

• Annareetta Lumme-Timonen, Investment Director, Solidium Oy

• Alexander Kopp, Investment Manager, Incentive AS

• Mikko Lantto, Chief Technology and Development Officer, Ilmarinen Mutual Pension Insurance Company

• Alexander Svensson, Vice President, Cevian Capital AG

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

139

12. Share-based payments

Tietoevry offers two types of global share-based compensation plans: Performance Share Plans and Restricted

Share Plans.


ACCOUNTING POLICIES
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.

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 2024, Tietoevry's share-based

incentive plans included Performance Share Plans 2022–2024, 2023–2025 and 2024–2026 as well as

Restricted Share Plans 2022–2024, 2023–2025 and 2024–2026. The rewards from the plans will be paid partly

in the company’s shares and partly in cash. The cash portion 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 2021–2023 and the Restricted Share Plan 2021–2023 ended in 2024. Based on the

achievements of the targets, a total of 391 958 gross shares were earned and of these 214 379 net shares were

delivered to the participants. Tietoevry paid the rewards through a directed share issue without payment. For

more information, see note 26.

In 2024, 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 5 417 gross shares under Performance Share Plan 2022–2024, a total

of 2 895 gross shares under Performance Share Plan 2023–2025 and a total of 570 gross shares under

Performance Share Plan 2024–2026.

140

Main terms and conditions of the share-based incentive plans


	Performance Share Plan
	2022–2024	2023–2025	2024–2026
Plan launched	16 February 2022	14 February 2023	14 February 2024
Performance period	2022–2024	2023–2025	2024–2026
Vesting conditions	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.	Relative and Absolute 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 2025	In shares and cash in 2026	In shares and cash in 2027
Number of participants on 31 Dec 2024	435	470	583
Other	On 31 Dec 2024, rewards to be paid correspond to the value of approximate number of 805 689 Tietoevry gross shares.	On 31 Dec 2024, rewards to be paid correspond to the value of approximate number of 809 083 Tietoevry gross shares.	On 31 Dec 2024, rewards to be paid correspond to the value of approximate number of 953 988 Tietoevry gross shares.


	Restricted Share Plan
	2022–2024	2023–2025	2024–2026
Plan launched	16 February 2022	14 February 2023	14 February 2024
Vesting period	2022–2024	2023–2025	2024–2026
Vesting conditions	Valid employment or director agreement of a key employee upon the reward payment.
Exercised	In shares and cash in 2025	In shares and cash in 2026	In shares and cash in 2027
Number of participants on 31 Dec 2024	126	140	182
Other	On 31 Dec 2024, rewards to be paid correspond to the value of approximate number of 50 320 Tietoevry gross shares.	On 31 Dec 2024, rewards to be paid correspond to the value of approximate number of 84 255 Tietoevry gross shares.	On 31 Dec 2024, rewards to be paid correspond to the value of approximate number of 52 314 Tietoevry gross shares.

141

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 2024, 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 18.28

• Expected annual dividends: EUR 1.42

• Risk-free interest rate: 2.99%

• Expected volatility (historical daily observations over corresponding maturity): 23.57%

• Contractual life: 2.73 years

• Fair value at grant: EUR 6.53

• Share price at year-end: EUR 17.02

Share-based payments included in employee benefit expenses


EUR million	2024	2023
Equity-settled share-based incentive plans	6.5	9.5
Cash-settled share-based incentive plans	0.0	0.1
Social costs settled in cash1)	0.2	0.9
Total	6.7	10.5

1) Social costs from all plans are reported as cash-settled.

Liabilities arising from share-based payments amount to EUR 0.8 (1.4) million. The liabilities include cumulative

social costs from all plans, and taxes and tax-related costs from cash-settled plans. The estimated future cash

payment to be made to the tax authorities from share-based payments is EUR 5.4 million.

142

13. 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 initiated amendments to its old supplementary pension plan in 2024 to revert changes

implemented in 2021. At that time, the Group implemented an amendment to this supplementary pension plan,

and removed the employment pension TyEL index link, which was replaced by the pension company’s own

customer credit model and 6% increase to the defined benefit pension effective from 2022. In the past few

years, inflation has been higher than estimated in 2021, contributing to elevated TyEL index changes.

Consequently, the benefits from the supplementary pension plan had not reached the level of TyEL index linked

plans. After a thorough reassessment, the Group concluded to amend the supplementary pension plan and

revert to the TyEL index linkage. As a result, these defined benefit pension plans are TyEL index linked as of 1

January 2025 and the affected beneficiaries will be compensated accordingly. This resulted in defined benefit

pension costs of EUR 5.6 million, of which EUR 4.0 million was booked as amendments to the pension liability at

31 December 2024 and EUR 1.6 million was booked as one-time compensation to be paid in the first quarter of

2025.

The Group’s risk covers approximately 880 non-active employees in Finland. 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 Sweden, the Group’s risk is only on active employees and the plan covers 49 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 2024, a settlement loss of EUR 0.2

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

143

for as a liability in the consolidated statement of financial position. The plan covers 688 employees and

pensioners. In addition, there are various other closed and unfunded pension plans in Norway covering 252

employees and pensioners.

In Poland, the risk is only on active employees and the plan covers 692 employees. The basis for the valuation of

provisions for future benefits is the provisions of labor law, remuneration regulations, collective agreements and

other binding agreements between employers and employees. The provision includes retirement severance pay,

disability severance pay and death benefit. The valuation of liabilities was made based on the employment status

and employee characteristics (gender, age, relevant seniority and/or remuneration, etc.) existing at the reporting

date.

Defined benefit cost recognized in income statement and in other comprehensive income


EUR million	2024	2023
Service cost
Current service cost	1.7	2.1
Settlement gains/losses	0.2	0.1
Amendments	4.0	—
One-time compensation	1.6	—
Net interest	-0.3	-0.3
Total	7.3	1.9

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	0.1	-1.0
Gains (-)/losses (+) from experience adjustments	-0.8	-0.2
Gains (-)/losses (+) on plan assets	0.1	0.5
Total	-0.6	-0.6

Amounts recognized in the statement of financial position


	Present value of defined benefit obligaton1)		Fair value of plan assets 2)		Net liability
EUR million	2024	2023	2024	2023	2024	2023
1 Jan	30.9	32.9	-5.4	-5.2	25.5	27.8
Current service cost	1.7	2.1	—	—	1.7	2.1
Interest expense/income	0.5	0.5	-0.2	-0.2	0.3	0.3
Employer contribution	—	—	-0.8	-0.9	-0.8	-0.9
Benefits paid	-4.0	-1.7	0.1	0.1	-3.9	-1.6
Amendments	21.8	—	-17.7	—	4.0	—
Curtailment and settlement	-0.2	-0.1	0.3	0.1	0.2	0.1
Actuarial gains/losses	-0.6	-1.2	0.0	0.6	-0.6	-0.6
Businesses acquired/divested	—	—	—	—	—	—
Exchange rate differences	-1.2	-1.5	0.1	0.0	-1.1	-1.5
31 Dec	48.8	30.9	-23.6	-5.4	25.3	25.5

1) Of which EUR 26.7 (5.2) million in Finland, EUR 1.4 (0.8) million in Sweden, EUR 20.7 (24.8) million in Norway and 0.1 (0.1) million in Poland.

2) Of which EUR 21.4 (3.6) million in Finland and EUR 2.2 (1.9) million in Sweden. Benefits are paid directly in Norway and Poland without holding plan

assets.


EUR million	2024	2023
Defined benefit obligations	26.1	26.5
Defined benefit plan assets	-0.8	-1.0
Net liability	25.3	25.5

144

Allocation of plan assets

In Sweden, the plan assets are comprised from equity and debt instruments EUR 1.4 (1.2) million and other assets

EUR 0.8 (0.7) 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


%	2024	2023
Finland
Discount rate	3.2	3.7
Future salary increases	—	—
Future pension increases	2.2	2.6
Inflation rate	2.0	2.4

Sweden
Discount rate	3.0	3.9
Future salary increases	1.8	1.6
Future pension increases	1.8	1.6
Inflation rate	1.8	1.6

Norway
Discount rate	3.9	3.1
Future salary increases	4.0	3.5
Growth in the basic state pension (G)	3.8	3.3

Poland
Discount rate	5.6	5.0
Future salary increases	4.5	6.5

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%	-5.1%	5.6%
Future pension increase	0.5%	5.1%	-4.7%
Life expectancy	+1 year	5.8%

Impact on defined benefit obligation in Sweden
Discount rate	0.5%	-8,2%	9,1%
Future salary increase	0.5%	9,5%	-8,0%
Future pension increase	0.5%	7,0%	-6,1%
Life expectancy	+1 year	3.3%

Impact on defined benefit obligation in Norway
Discount rate	0.5%	-1.0%	1.1%
Future salary increase	0.5%	0.1%	-0.1%
Future pension increase	0.5%	0.9%	—%
Life expectancy	+1 year	1.0%

Impact on defined benefit obligation in Poland
Discount rate	0.5%	-6.4%	7.0%
Future salary increase	1.0%	14.7%	-12.5%

145

Maturity profile of the defined benefit obligation

The weighted average duration of the defined benefit obligation is 11 years in Finland, 18 years in Sweden, 15

years in Norway and 17 years in Poland. 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	2024
Maturity under 1 year	3.6
Maturity 1–5 years	13.8
Maturity 5–10 years	16.1
Maturity 10–30 years	36.2
Maturity over 30 years	3.6
Total future benefit payments	73.3

Expected contributions in 2025

Expected contributions to post-employment benefit plans for the year ending 31 December 2025 are EUR 0.7

million.

Multi-employer plans

The ITP2 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 previous years, the

information presented was based on two different ITP plans in Sweden, ITP1 and ITP2. However, only the ITP2

plans are multi-employer defined benefit plans. The ITP1 plan is a defined contribution plan and therefore,

should not be included. The comparative information for 2023 has been updated accordingly. In Tietoevry, 1 791

employees are included in the ITP2 pension plans (1 624 employees in 2023). The yearly contributions to the

plans are around EUR 10 million (EUR 9 million in 2023).

3 126 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 2024 was 2.7%

(2.6) corresponding to EUR 4.4 (3.8) 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.

146

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.

14. 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
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. 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

147


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.
Similarly, estimates are made and judgement is applied when assessing the useful lives of other intangible assets, and testing for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

148

Intangible assets


EUR million	Goodwill	Software acquired separately	Intangible assets recognized from acquisitions1)	Internally developed software	Other	Advance payments	Total
Acquisition cost 1 Jan 2024	1 907.3	29.9	282.0	330.8	19.9	1.2	2 571.1
Additions	—	4.6	—	45.2	0.0	0.8	50.6
Disposals	—	-9.7	-1.4	-68.0	-1.3	—	-80.5
Reclassifications	—	1.3	—	—	0.0	-1.2	0.1
Translation differences	-59.6	-0.7	-9.9	-12.7	0.0	-0.0	-83.0
Acquisition cost 31 Dec 2024	1 847.7	25.4	270.7	295.2	18.6	0.8	2 458.4
Accumulated amortization and impairments 1 Jan 2024	—	-18.7	-171.5	-117.0	-17.2	—	-324.3
Disposals	—	9.7	1.4	68.0	1.3	—	80.5
Amortization	—	-5.9	-43.8	-13.8	-1.3	—	-64.7
Impairments	-199.5	—	—	-0.6	—	—	-200.1
Reclassifications	—	-0.1	—	—	0.0	—	-0.1
Translation differences	—	0.4	7.5	4.5	0.0	—	12.4
Accumulated amortization and impairments 31 Dec 2024	-199.5	-14.6	-206.2	-58.9	-17.2	—	-496.4

Carrying value 1 Jan 2024	1 907.3	11.2	110.6	213.9	2.8	1.2	2 246.8
Carrying value 31 Dec 2024	1 648.2	10.8	64.4	236.3	1.4	0.8	1 962.0

1) Includes technology and customer related intangible assets as well as trademark recognized at fair value from acquisitions.

149


EUR million	Goodwill	Software acquired separately	Intangible assets recognized from acquisitions1)	Internally developed software	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	—	-324.9
Disposals	—	8.5	17.3	5.5	9.9	—	41.3
Amortization	—	-4.7	-41.8	-6.3	-1.1	—	-53.9
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	—	-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.

Internally developed software and other development costs

Tietoevry’s development costs amounted to approximately EUR 130.6 (129.3) million, representing 4.7% (4.5) of

the Group's revenue. Of these costs, EUR 45.2 (44.7) million were capitalized. In 2024, the focus was on

developing industry-specific software, especially solutions for Financial Services and Healthcare.

150

Impairment testing of goodwill

The annual impairment testing was carried out in the fourth quarter of 2024 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. 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 2024	31 Dec 2023
Tietoevry Create	688.5	697.7
Tietoevry Banking	295.2	308.7
Tietoevry Care	250.2	260.9
Tietoevry Industry	180.7	188.4
Tietoevry Tech Services	233.6	451.6
Total	1 648.2	1 907.3

Recoverable amounts and assumptions used

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 1.5% for all CGUs except for

Tietoevry Tech Services. The terminal growth rate of 1.5% 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.

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 8.6% and 10.9%.

Key assumptions used in discounting the cash flow projections by the CGUs


Key assumption %	Terminal growth rate		Pre-tax WACC
	2024	2023	2024	2023
Tietoevry Create	1.5	2.0	10.9	11.6
Tietoevry Banking	1.5	2.0	8.9	9.1
Tietoevry Care	1.5	2.0	8.6	8.8
Tietoevry Industry	1.5	2.0	8.6	8.9
Tietoevry Tech Services	0.0	2.0	10.7	8.9

Results of impairment testing

The Tietoevry Tech Services business is impacted by overall market softness, which has resulted in lower cash

flow projections. As a result, management concluded that the carrying amount exceeded the recoverable

amount for the Tietoevry Tech Services CGU and recorded a non-cash impairment charge of EUR 200.0 million.

This reduced the carrying amount of the goodwill held in Tietoevry Tech Services CGU to EUR 233.6 million as at

31 December 2024. The recoverable amount of the CGU is approximately EUR 500 million based on its value in

use.

The results of the impairment test indicate adequate headroom for the other CGUs, in which no reasonable

change in key assumptions would result in recognition of an impairment loss.

Compared to 31 December 2023, the goodwill balance decreased due to the goodwill impairment loss in

Tietoevry Tech Services and exchange rate fluctuations of EUR 59.6 million.

151

15. 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.

152

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 2024	1.2	3.4	339.7	63.4	14.4	422.1
Additions	—	—	24.3	3.4	6.7	34.4
Disposals	—	—	-100.3	-7.0	0.0	-107.3
Reclassifications	—	—	14.6	2.1	-12.8	3.9
Translation differences	—	—	-5.7	-0.3	-0.4	-6.4
Acquisition cost 31 Dec 2024	1.2	3.4	272.6	61.6	7.9	346.8
Accumulated depreciation and impairments 1 Jan 2024	—	-1.8	-284.5	-47.1	—	-333.4
Disposals	—	—	100.2	7.1	—	107.3
Depreciation	—	-0.1	-33.3	-6.1	—	-39.5
Reclassifications	—	—	-3.8	-0.1	—	-3.9
Translation differences	—	—	4.6	0.3	—	4.9
Accumulated depreciation and impairments 31 Dec 2024	—	-1.9	-216.8	-45.9	—	-264.6
Carrying value 1 Jan 2024	1.2	1.6	55.2	16.3	14.4	88.8
Carrying value 31 Dec 2024	1.2	1.5	55.9	15.7	7.9	82.2

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	—	-377.2
Disposals	—	0.4	74.6	4.2	—	79.2
Depreciation	—	-0.1	-32.2	-6.4	—	-38.8
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	—	-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

153

16. 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 6.2%.
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 2024, the weighted average residual lease term for lease contracts is 5.9 years (residual terms vary between 0.1–15.3 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 2024, 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.

154

Leases impact on income statement


EUR million		31 Dec 2024	31 Dec 2023
Tietoevry as a Lessee	Depreciation expenses of right-of-use assets	-58.0	-59.8

Tietoevry as a Lessee	Impairment losses	-0.6	-2.7

Tietoevry as a Lessee	Variable lease payments	-8.2	-8.5
Tietoevry as a Lessee	Short-term leases and low value leases	-3.5	-4.2
	Other income and expenses	-11.7	-12.7

Tietoevry as a Lessor	Revenue	0.7	2.7
Tietoevry as a Lessor	Materials and services	-0.6	-1.5

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	-11.8	-10.6
	Expenses reported in financial items, net	-11.7	-10.5

	Total impact on income statement from lease contracts	-82.0	-84.4

Leases impact on statement of cash flows


EUR million		31 Dec 2024	31 Dec 2023
Tietoevry as a Lessee	Interest paid (cash flow from operating activities)	-11.6	-9.6
	Principal paid (cash flow from financing activities)	-56.6	-58.1

Leases impact on the statement of financial position

Right-of-use assets


EUR million		Buildings	Machinery and Equipment	Total
Tietoevry as a Lessee	1 Jan 2024	177.0	18.9	195.9
	Additions1)	62.4	12.6	75.0
	Terminations	-29.9	-2.5	-32.4
	Depreciation	-48.7	-9.3	-58.0
	Impairment2)	-0.6	—	-0.6
	Other	0.0	—	0.0
	Translation differences	-3.9	-0.2	-4.1
	31 Dec 2024	156.2	19.6	175.8


EUR million		Buildings	Machinery and Equipment	Total
Tietoevry as a Lessee	1 Jan 2023	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	—
	Translation differences	-5.4	-0.2	-5.6
	31 Dec 2023	177.0	18.9	195.9

1) Additions represent increases in right-of-use assets due to new lease contracts, as well as remeasurements and lease modifications.

2) For more information, see note 5.

155

Lease liabilities


EUR million	31 Dec 2024	31 Dec 2023
Current	50.5	50.3
Non-current	142.6	161.4
Total	193.0	211.7

The movement in lease liabilities during the reporting period is presented in note 21.

The maturity structure of contractual undiscounted lease payments is presented in note 20.

Lease receivables

Net investment in leases


EUR million	31 Dec 2024	31 Dec 2023
Current	1.4	2.2
Non-current	—	—
Total	1.4	2.2

Maturity analysis - contractual undiscounted cash flows for finance leases


EUR million	31 Dec 2024	31 Dec 2023
Within one year	1.4	2.2
One to two years	—	—
Total undiscounted lease receivable	1.4	2.2
Unearned finance income	0.0	0.0
Net investment in leases	1.4	2.2

156

17. 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.


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 customer 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.
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.
For more information on the classification of Trade and other receivables, see note 23.

Average ECL rates


%	31 Dec 2024	31 Dec 2023
Not yet due	0.01%	0.01%
Overdue 1–7 days	0.01%	0.01%
Overdue 8–30 days	0.02%	0.02%
Overdue 31–60 days	2.82%	2.84%
Overdue 61–90 days	4.90%	5.64%
Overdue over 90 days	60.00%	60.00%

157

Trade and other receivables


EUR million	31 Dec 2024	31 Dec 2023
Non-current
Prepaid expenses and accrued income	19.4	29.3
Other	5.7	5.4
Total	25.1	34.7

Current
Trade receivables at amortized cost	391.8	476.8
Prepaid expenses and accrued income
Contract assets	50.4	58.4
License fees	46.5	32.9
Other prepaid expenses and accrued income1)	34.4	38.8
Finance lease receivables	1.4	2.2
Other interest-bearing receivables	14.5	14.4
Other2)	11.8	14.6
Total	550.7	638.1

1) Comparative information has been updated, see note 24.

2) Includes capitalized set-up costs to fulfil a contract and value added tax receivables.

Net contract assets


	Not yet due	Not yet due
EUR million	2024	2023
Contract assets	50.4	58.4
Loss allowance	-0.0	-0.0
Net contract assets	50.4	58.4

Group trade receivables maturity and expected credit losses


	Gross trade receivables	Loss allowance	Net trade receivables	Gross trade receivables	Loss allowance	Net trade receivables
EUR million	2024	2024	2024	2023	2023	2023
Not yet due	342.0	-0.0	341.9	368.2	-0.1	368.1
Overdue 1–7 days	30.7	-0.0	30.7	82.3	-0.1	82.2
Overdue 8–30 days	7.5	-0.3	7.3	4.8	-0.2	4.7
Overdue 31–60 days	4.7	-0.2	4.5	4.1	-0.5	3.6
Overdue 61–90 days	4.3	-0.6	3.7	2.9	-0.1	2.8
Overdue over 90 days1)	7.3	-3.5	3.7	17.4	-1.8	15.5
Total	396.4	-4.7	391.8	479.6	-2.8	476.8

1) At the end of 2023, the majority of trade receivables overdue over 90 days were subject to negotiation with a customer, with a corresponding entry

in contract liabilities and therefore excluded from the ECL calculation. The invoices were credited in full in the first quarter of 2024.

There are no major concentrations of credit risk in the Group, see note 20. Impairment losses recognized on

trade receivables and contract assets are included in other operating expenses in the income statement.

Movements in loss allowances


	Trade receivables
EUR million	2024	2023
1 Jan	2.8	2.7
Translation differences	-0.0	-0.1
Changes in loss allowances recognized	2.0	0.7
Amounts written off as uncollectible	-0.1	-0.6
31 Dec	4.7	2.8

158

18. 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 2024	12.0	1.2	4.0	17.2
Translation differences	-0.4	0.0	-0.1	-0.4
Increases in provisions	30.0	4.0	0.7	34.7
Use of provisions	-21.6	-3.9	-1.4	-26.9
Reversals and changes in estimates	-0.6	-0.3	-0.3	-1.2
31 Dec 2024	19.4	1.0	2.9	23.3
of which
Non-current	1.3	0.0	1.3	2.6
Current	18.2	1.0	1.6	20.7
Total	19.4	1.0	2.9	23.3

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 2024, restructuring measures were taken mainly in Tietoevry Create, Tietoevry Banking and Tietoevry Tech

Services. In 2023, restructuring measures were taken mainly in Tietoevry Tech Services, Tietoevry Banking, and

Tietoevry Create.

159

19. 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 2024	31 Dec 2023
Non-current
Contract liabilities	2.4	6.8
Accruals	3.7	4.1
Total	6.1	10.8

Current
Trade payables	174.8	206.9
Contract liabilities	49.6	77.3
Accrued liabilities
Employee-related accruals	186.9	197.7
Interest1)	12.1	8.8
Other accrued expenses	44.1	42.2
Value added tax liabilities	49.2	52.5
Payroll tax liabilities	28.6	30.7
Total	545.4	616.0

1) Comparative information has been updated, see note 24.

160

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.

20. 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 2024, 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 2024 was 99 % (99 %).

161

Identified currency transaction risk exposure and sensitivity analysis


EUR million	Loans and Cash, net	Estimated cash flows	Leases	Total foreign exchange exposure	External foreign exchange hedges	Transaction exposure sensitivity1)	Foreign exchange hedge sensitivity 1)	Net effect gain/loss
SEK
31 Dec 2024	-122.1	19.8	—	-102.2	102.3	12.2	-10.2	2.0
31 Dec 2023	-130.6	23.1	—	-107.5	107.7	13.1	-10.8	2.3

NOK
31 Dec 2024	-16.9	15.3	—	-1.6	3.0	1.7	-0.3	1.4
31 Dec 2023	-42.3	12.7	—	-29.6	29.3	4.2	-2.9	1.3

PLN
31 Dec 2024	1.4	-11.5	0.7	-9.4	9.5	-0.2	-1.0	-1.2
31 Dec 2023	0.7	-9.6	1.2	-7.7	8.5	-0.2	-0.8	-1.0

CZK
31 Dec 2024	-14.0	-28.8	9.8	-33.0	43.2	0.4	-4.3	-3.9
31 Dec 2023	-9.6	-44.3	9.6	-44.3	53.4	—	-5.3	-5.3

INR
31 Dec 2024	—	-27.2	—	-27.2	27.1	—	-2.7	-2.7
31 Dec 2023	—	-22.5	—	-22.5	23.0	—	-2.3	-2.3

USD
31 Dec 2024	2.4	0.2	-0.1	2.4	-2.6	-0.2	0.3	—
31 Dec 2023	2.2	—	-0.1	2.1	-2.3	-0.2	0.2	—

Other
31 Dec 2024	-6.2	—	0.6	-5.6	3.0	0.6	-0.3	0.3
31 Dec 2023	-2.2	—	2.0	-0.2	—	—	—	—

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 15 293 and SEK 7 153 million exposure forms the

majority of the translation risk. The translation position was unhedged at the end of 2024. 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 which 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 2024, the ratio was at 10

months (17 months in 2023) with the approval of the Audit and Risk Committee.


	Amount		Average rate, %		Rate sensitivity1)
EUR million	Fixed rate	Floating rate	Fixed rate	Floating rate	Rate sensitivity1)
31 Dec 2024
Bond2)	-299.8	—	2.0	—	—
Cash and cash equivalents	185.4	9.7	—	6.1	0.1
Other loans	-42.8	-562.0	4.7	4.6	-5.6
Other loan receivables	29.2	—	4.5	—	—
Leasing	-191.6	—	6.2	—	-1.9
Interest rate derivatives3)	-140.0	140.0	3.2	3.5	1.4

31 Dec 2023
Bond and Commercial paper2)	-399.1	-66.1	1.8	4.2	-0.7
Cash and cash equivalents	195.7	20.5	—	6.1	0.2
Other loans	-49.4	-433.8	5.0	4.8	-4.3
Other loan receivables	28.9	—	3.9	—	—
Leasing	-209.5	—	6.0	—	-2.1
Interest rate derivatives3)	-140.0	140.0	3.2	4.0	1.4

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 0.5 years (1.1 in 2023).

3) The interest rate derivatives are presented as nominal values.

162

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 sustainability-linked revolving

credit facility of EUR 250 million, which was not in use at the end of December. The revolving credit facility

matures in 2028 and has a one-year extension option. It is linked to selected sustainability targets of Tietoevry

and hence supports the company’s commitments to Science Based Targets. The Group has an overdraft facility

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.

In December, the Group signed a two-year term loan facility of EUR 300 million from Nordea Bank Abp, Danske

Bank A/S and OP Corporate Bank plc to be used for refinancing of the EUR 300 million bond.

163

Debt structure

The table below summarises the maturity profile of the Group’s financial liabilities based on the contractual undiscounted payments.


31 Dec 2024		Amount drawn	Amount available	Maturity structure
EUR million		Amount drawn	Amount available	2025	2026	2027	2028	2029	2030–
Loans	Bonds	300.0	—	300.0	—	—	—	—	—
	Revolving credit facility	—	250.0	—	—	—	—	—	—
	European Investment Bank	39.2	—	13.1	13.1	13.1	—	—	—
	OP Corporate Bank	174.0	—	—	—	—	174.0	—	—
	Nordea	100.0	—	—	100.0	—	—	—	—
	Nordea and SEB	250.0	—	—	—	250.0	—	—	—
	Other loans	42.8	—	22.8	15.4	4.2	0.4	—	—
		906.0	250.0	335.9	128.5	267.2	174.4	—	—

	Interest payments	—	—	33.0	25.7	20.7	8.3	—	—

Trade payables	Outflow	174.8	—	174.8	—	—	—	—	—

Other liabilities	Lease liabilities	223.7	—	58.5	44.5	34.7	27.5	11.6	46.9

Derivative liabilities	Foreign exchange forward contracts	—	—	7.1	—	—	—	—	—
	Interest rate swaps	—	—	—	—	3.6	12.9	—	—

Total		1 304.5	250.0	609.3	198.7	326.2	223.1	11.6	46.9

164


31 Dec 2023		Amount drawn	Amount available	Maturity structure
EUR million		Amount drawn	Amount available	2024	2025	2026	2027	2028	2029–
Loans	Bond	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 liabilities	248.2	—	59.5	46.0	33.3	25.8	23.7	59.8

Derivative liabilities1)	Foreign exchange forward contracts	—	—	4.9	—	—	—	—	—
	Interest rate swaps	—	—	—	—	—	4.7	15.3	—

Total		1 409.1	250.0	711.0	393.0	66.2	53.5	221.8	59.8

1) Derivative liabilities have been included in this summary in 2024, with comparative information added for 2023.

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 2024	31 Dec 2023
Net debt1)	871.8	911.8
12 months EBITDA2)	393.6	412.8
Net debt/EBITDA	2.2	2.2

1) Interest-bearing liabilities – interest-bearing receivables – cash and cash equivalents

2) EBITDA = EBIT + Depreciation + Amortization + Impairment

165

21. 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 2024	31 Dec 2023
Non-current
Bonds	—	298.8
Other loans	569.6	240.8
Lease liabilities	142.6	161.4
Total	712.1	701.0

Current
Bonds	299.8	100.4
Other loans	35.2	308.5
Cash pool liabilities towards joint ventures	—	3.0
Lease liabilities	50.5	50.3
Total	385.4	462.2
Total Interest bearing loans and borrowings	1 097.5	1 163.2

More information on debt structure and carrying interest rates is disclosed in note 20.

166

Change in liabilities arising from financing activities


			Non-cash changes
EUR million	1 Jan 2024	Cash flows	Foreign exchange gains and losses	Reclassification	Acquisitions and disposals	New lease contracts	De-recognized contracts	Other	31 Dec 2024
Non-current interest-bearing loans	539.5	28.2	0.0	1.8	—	0.2	—	-0.1	569.6
Current interest-bearing loans	411.9	-73.9	—	-1.8	—	0.9	—	-2.3	334.9
Lease liabilities	211.7	-56.6	-4.4	—	—	78.7	-36.8	0.5	193.0
Total	1 163.2	-102.3	-4.4	—	—	79.7	-36.8	-1.9	1 097.5


			Non-cash changes
EUR million	1 Jan 2023	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

167

22. Financial income and expenses

Financial income and expenses comprise interest, foreign exchange gains and losses and other financial income and expenses, such as fees to banks.


2024	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	1.3	—	-12.0	—	-1.7	-12.5
Financial assets at amortized cost	5.6	—	9.4	0.1	—	15.1
Financial liabilities at fair value through profit or loss	—	-0.6	—	—	—	-0.6
Financial liabilities measured at amortized cost	—	-49.8	—	—	-3.7	-53.5
Net defined benefit obligation	—	-0.3	—	—	—	-0.3
Total	6.9	-50.6	-2.6	0.1	-5.5	-51.7


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 loss1, 2)	16.4	—	4.2	—	-2.7	17.8
Financial assets at amortized cost1)	7.1	—	-1.0	0.3	—	6.3
Financial liabilities at fair value through profit or loss1)	—	-21.0	—	—	—	-21.0
Financial liabilities measured at amortized cost2)	—	-36.3	—	—	-1.4	-37.7
Net defined benefit obligation	—	-0.3	—	—	—	-0.3
Total	23.5	-57.6	3.1	0.3	-4.1	-34.9

1) Interest income and expenses related to interest rate swaps have been reclassified from Financial assets at amortized cost to Financial assets/liabilities at fair value through profit or loss. The comparative information was updated accordingly.

2) Financial expenses related to trade receivables sold via non-recourse arrangements are included in Financial assets at fair value through profit or loss. The comparative information was updated accordingly.

In addition, foreign exchange gains and losses included in the operating profit were EUR -1.3 ( 0.5) million in 2024.

168

23. 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 24), bonds and other interest-bearing liabilities

(see note 21).


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 22.
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 22.
Financial assets and liabilities at fair value through profit or loss
Financial assets and liabilities in this category are recognized in 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 22, whereas gains or losses from derivatives, mainly currency forward contracts that relate to operating activities, are included in operating profit.


Trade receivables to be sold via non-recourse arrangements are classified as financial assets at fair value through profit or loss (certain customers).
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;
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.

169

Financial assets


EUR million	Note	31 Dec 2024	31 Dec 2023	Fair value hierarchy
Financial assets at fair value through profit or loss
Non-current
Other financial assets at fair value through profit or loss		0.5	0.6	Level 3
Non-current derivative receivables1)	24	11.8	15.5	Level 2
Current
Trade receivables at fair value through profit or loss		11.1	11.6	Level 2
Current derivative receivables	24	2.7	5.8	Level 2
Financial assets at amortized cost
Non-current
Other loan receivables, interest-bearing		14.7	15.1	Level 2
Lease receivables	16	—	0.0	Level 2
Current
Other loan receivables, interest-bearing	17	14.5	14.4	Level 2
Lease receivables	16	1.4	2.2	Level 2
Trade receivables	17	391.8	476.8	Level 2
Accrued interest income1)	17	0.0	0.0	Level 2
Cash and cash equivalents	25	195.1	219.6	Level 2
Total		643.6	761.7

Financial liabilities


EUR million	Note	31 Dec 2024	31 Dec 2023	Fair value hierarchy
Financial liabilities at fair value through profit or loss
Non-current derivative liabilities1)	24	16.5	20.0	Level 2
Current derivative liabilities	24	7.1	4.9	Level 2
Financial liabilities measured at amortized cost
Non-current
Lease liability	16, 21	142.6	161.4	Level 2
Bonds2)	21	—	298.8	Level 1
Other loans	21	569.6	240.8	Level 2
Current
Trade payables	19	174.8	206.9	Level 2
Accrued interest1)	19	12.1	8.8	Level 2
Lease liability	16, 21	50.5	50.3	Level 2
Bonds2)	21	299.8	100.4	Level 1
Other loans	21	35.2	311.6	Level 2
Total		1 308.1	1 403.7

1) Comparative information has been updated, see note 24.

2) Fixed rate bond where carrying amount of EUR 299.8 million has not been adjusted to match the fair value of EUR 298.3 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 2024 .

170

24. 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 20 and on the accounting policies

applied in note 23. Derivatives are used for economic purposes only.

Nominal amounts of derivatives

The nominal values of derivatives include 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 2024	31 Dec 2023
Foreign exchange forward contracts	536.3	523.9
Interest rate swaps	280.0	280.0

Fair values of derivatives


EUR million	31 Dec 2024	31 Dec 2023
Gross positive fair values, foreign exchange forward contracts	2.7	5.8
Gross negative fair values, foreign exchange forward contracts	-7.1	-4.9
Gross positive fair values, interest rate swaps	11.8	15.5
Gross negative fair values, interest rate swaps	-16.5	-20.0
The net fair values at the reporting date	-9.1	-3.6

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 interest rate swaps have been reclassified from current assets and liabilities to non-current assets and

liabilities at fair value through profit or loss based on their maturities. The comparative information was updated

accordingly. The fair values of interest rate swaps are based on the 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 2024		Financial Instruments	Cash collateral received	Net amount
EUR million		Financial Instruments	Cash collateral received	Net amount
Derivative financial assets
Foreign exchange forward contracts	2.7	-1.9	—	0.7
Interest rate swaps	11.8	-11.8	—	—
Derivative financial liabilities
Foreign exchange forward contracts	-7.1	1.9	—	-5.2
Interest rate swaps	-16.5	11.8	—	-4.7

1) No amounts have been offset 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 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 offset in the statement of financial position

171

25. 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 2024	31 Dec 2023
Cash in hand and at bank	185.4	195.7
Short-term deposits	9.7	24.0
Total	195.1	219.6

Cash and cash equivalents include restricted cash of EUR 14.6 million, held within bank accounts in Ukraine. At

31 December 2023, cash and cash equivalents included restricted cash of EUR 28.5 million, including EUR 18.2

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.

26. 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 nobody 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 2023	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 plans 1)	302 789	—	—	—	—
Translation difference	—	—	0.1	—	0.1
31 Dec 2023	118 391 092	76.6	39.4	1 203.5	1 319.5
Forfeiture of shares2)	-10 560	—	—	—	—
Shares delivered from the share- based incentive plans 3)	214 379	—	—	—	—
Translation difference	—	—	-0.8	—	-0.8
31 Dec 2024	118 594 911	76.6	38.5	1 203.5	1 318.6

Own shares4)	45 239
Total number of shares on 31 Dec 20244)	118 640 150

1) During 2023, the shares were granted from own shares without impact on share capital.

2) The Annual General Meeting 2024 decided on the forfeiture of shares entered in the joint account of the company as well as of the rights attached to

such shares. The shares on the joint account were transferred to Tietoevry's ownership on 23 July 2024.

3) On 24 April 2024, the Board of Directors resolved on a directed share issue without payment in order to pay the rewards of the Performance Share

Plan 2021–2023 and Restricted Share Plan 2021–2023 to the eligible reward recipients. A total of 214 379 new shares were registered with the Trade

4) On 31 Dec 2023, the number of shares in the company's possession totalled 34 679 and the total number of shares was 118 425 771.

172

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 12.

• Remeasurements of the defined benefit plans arising from experience adjustments and changes in

actuarial assumptions. More information is disclosed in note 13.

• Treasury shares. The Annual General Meeting 2024 decided on the forfeiture of 10 560 shares entered in

the joint account of the company as well as of the rights attached to such shares. The shares on the joint

account were transferred to Tietoevry's ownership on 23 July 2024.

• 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 -347.8 (-276.8) million. The translation differences in Other

comprehensive income were EUR -80.8 (-99.8) million. The majority of these arise on the NOK and SEK foreign

currency translation exposures. In 2024, both currencies weakened against the Euro, NOK by 4.9% and SEK by

3.3%, resulting in a negative effect on the Other comprehensive income. 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.

Distributable funds

On 31 Dec 2024, the distributable funds of the parent company totalled EUR 1 299.7 million of which retained

earnings were EUR 35.9 million and net profit for the financial year EUR 56.2 million. The Board of Directors

proposes to the Annual General Meeting in 2025 that a dividend from retained earnings and/or distribution of

funds from the reserve of invested unrestricted equity in the total amount of EUR 1.50 per share will be paid for

2024 (dividend of EUR 1.47 per share paid for 2023).

173

OTHER INFORMATION

This section includes information about the Group structure, joint ventures, related parties and commitments.

27. Acquisitions and divestments


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

In July 2023, Tietoevry acquired 100% of the shares of MentorMate, a digital engineering company

headquartered in Minneapolis, USA. Acquisition accounting for MentorMate was presented as provisional in

December 2023 and there were no changes to the provisional amounts in 2024. 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

174

The identified intangible assets relate to customer relationships and marketing. Fair values for the intangible

assets were 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 is deductible for tax purposes.

The fair value of the receivables amounted to EUR 9.1 million on 21 July 2023 including trade receivables of EUR

7.9 million. The full contractual amounts have been 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.

In 2023, from the acquisition date, MentorMate 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.

Divestments in 2023

In 2023, Tietoevry sold its wood supply software business to Vela Software International Inc., which is

headquartered in Toronto Canada. 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.

175

28. Subsidiaries

Subsidiary shares owned by the Parent company


Company name	Domicile	Parent company's holding %
EVRY Card Issuing AS	Norway	100.0
EVRY Card Payments AS	Norway	100.0
EVRY Card Services AS	Norway	100.0
Infopulse Brasil Servicos Technologicos Ltda.	Brazil	1.0
Tieto (Beijing) Technology Co., Ltd.	China	100.0
Tieto China Co., Ltd.	China	100.0
Tieto Germany GmbH	Germany	100.0
Tieto Global Oy	Finland	100.0
Tieto Great Britain Ltd.	Great Britain	100.0
Tieto Lietuva UAB	Lithuania	100.0
Tieto Netherlands Holding B.V.	Netherlands	100.0
Tieto Poland Sp. z o.o	Poland	100.0
Tieto Support Services Sp. z o.o.	Poland	100.0
Tietoevry 13 Oy (former Tieto Esy Oy)	Finland	100.0
Tietoevry AB	Sweden	100.0
Tietoevry Accounting AS	Norway	100.0
Tietoevry Austria GmbH	Austria	100.0
Tietoevry Banking Finland Oy	Finland	100.0
Tietoevry Banking Latvia SIA	Latvia	100.0
Tietoevry Create Romania s.r.l.	Romania	100.0
Tietoevry Czechia s.r.o.	Czech Republic	100.0
Tietoevry Czechia Support Services s.r.o.	Czech Republic	100.0
Tietoevry Denmark A/S	Denmark	100.0
Tietoevry DK A/S	Denmark	100.0
Tietoevry Estonia AS	Estonia	100.0
Tietoevry Finland Oy	Finland	100.0


Company name	Domicile	Parent company's holding %
Tietoevry Finland Support Services Oy	Finland	100.0
Tietoevry Fintech Estonia OÜ	Estonia	100.0
Tietoevry Fintech Norway AS	Norway	100.0
Tietoevry Fintech Sweden AB	Sweden	100.0
Tietoevry Inc.	The United States	100.0
Tietoevry Latvia SIA	Latvia	100.0
Tietoevry Malaysia Sdn. Bhd.	Malaysia	100.0
Tietoevry Norway AS	Norway	100.0
Tietoevry Slovakia s.r.o.	Slovakia	100.0
Tietoevry Tech Services AB	Sweden	100.0
Tietoevry Tech Services Czechia s.r.o.	Czech Republic	100.0
Tietoevry Tech Services Finland Oy	Finland	100.0
Tietoevry Tech Services Latvia SIA	Latvia	100.0
Tietoevry Tech Services Norway AS	Norway	100.0
Tietoevry Tech Services Slovakia s.r.o.	Slovakia	15.0
Dormant subsidiaries (1 in total)

176

Shares in Group companies owned by subsidiaries


Company name	Domicile	Group holding %
Avega Catalyst AB	Sweden	100.0
Avega Clarity AB	Sweden	100.0
Avega Complius AB	Sweden	100.0
Avega Dinamiko AB	Sweden	100.0
Avega Effectus AB	Sweden	100.0
Avega Group AB	Sweden	100.0
Avega Kipeo AB	Sweden	100.0
Avega Kite AB	Sweden	100.0
Avega Mtoni AB	Sweden	100.0
Avega Nuvem AB	Sweden	100.0
Avega Qurio AB	Sweden	100.0
Avega Scire AB	Sweden	100.0
Avega Sempai AB	Sweden	100.0
Avega Senso AB	Sweden	100.0
Bekk Consulting AS	Norway	100.0
EVRY Card Services AB	Sweden	100.0
EVRY Card Services Oy	Finland	100.0
EVRY Financial Service UK Ltd.	Great Britain	100.0
EVRY India Pvt. Ltd.	India	100.0
EVRY USA Corporation	The United States	100.0
Eye-share AS	Norway	100.0
Eye-share Singapore Pte. Ltd.	Singapore	100.0
Gjeldsregisteret AS	Norway	100.0
Infopulse Brasil Servicos Technologicos Ltda.	Brazil	99.0
Infopulse Bulgaria Ltd.	Bulgaria	100.0
Infopulse Europe GmbH	Germany	100.0
Infopulse Poland Sp. z o.o.	Poland	100.0


Company name	Domicile	Group holding %
Infopulse Ukraine LLC	Ukraine	100.0
MentorMate Bulgaria Ltd.	Bulgaria	100.0
MentorMate Paraguay S.R.L.	Paraguay	100.0
MentorMate, LLC	The United States	100.0
NUK Holding AB	Sweden	100.0
Tieto Ukraine Support Services LLC	Ukraine	100.0
Tieto U.S. Inc.	The United States	100.0
Tietoevry Banking Poland Sp. z o.o.	Poland	100.0
Tietoevry Financing AB	Sweden	100.0
Tietoevry Financing AS	Norway	100.0
Tietoevry FinTech DOO	Serbia	100.0
Tietoevry Fintech India Pvt. Ltd.	India	100.0
Tietoevry India Pvt. Ltd.	India	100.0
Tietoevry Pay Oy	Finland	100.0
Tietoevry Sweden AB	Sweden	100.0
Tietoevry Sweden Support Services AB	Sweden	100.0
Tietoevry Tech Services Estonia OÜ	Estonia	100.0
Tietoevry Tech Services India Pvt. Ltd.	India	100.0
Tietoevry Tech Services Lithuania UAB	Lithuania	100.0
Tietoevry Tech Services Slovakia s.r.o.	Slovakia	85.0
Tietoevry Tech Services Sweden AB	Sweden	100.0
Dormant subsidiaries (3 in total)

All subsidiaries are included in the Group consolidation. In India, the official reporting period is 1 April – 31 March

according to the Indian legislation.

177

29. Interests in joint ventures

At the start of the year, Tietoevry had interests in two joint ventures, Tieto Esy Oy in Finland and BuyPass AS in

Norway. By year-end, Tietoevry no longer holds ownership in any joint venture.


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 consolidated 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.

Reconciliation of carrying value


EUR million	2024	2023
Carrying value, 1 Jan	11.6	14.2
Translation differences	-0.5	-0.6
Share of results	0.9	1.3
Dividends received	-1.0	-1.3
Impairments	-0.3	-2.1
Disposals and other decreases	-10.6	—
Carrying value, 31 Dec	—	11.6

In 2024, Tietoevry and Norsk Tipping, both with 50% ownership in Buypass AS, jointly entered into an agreement

with Total Specific Solutions (TSS) on the sale of their shares in Buypass AS. Buypass was co-founded by

Tietoevry and Norsk Tipping in 2001 and has been accounted for as a joint venture in Tietoevry's consolidated

financial statements, included in Tietoevry Banking. The transaction closed on 16 October. Tietoevry Banking's

share of the joint venture's results was EUR 1.0 (1.3) million. Tietoevry Banking's share of the consideration

received was EUR 13.1 million and the resulting net gain of EUR 4.3 million was recognized in other operating

income.

In 2024, Tietoevry Create bought the remaining 20% share of the joint venture Tieto Esy Oy, which resulted in an

impairment loss of EUR 0.3 million. Tieto Esy has been consolidated as a 100% owned subsidiary since 30 June

2024. The name of Tieto Esy Oy has been changed to Tietoevry 13 Oy. 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.

30. 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, the Group Executive Management

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 29. Information on management remuneration is disclosed in note 11.

Transactions and balances with joint ventures


EUR million	31 Dec 2024	31 Dec 2023
Sales	0.4	1.2
Other operating income	0.2	0.6
Purchases	0.3	0.6
Receivables	0.0	0.1
Liabilities including cash pool	0.0	3.1

Transactions with Tieto Esy Oy are included until 31 May, and transactions with Buypass AS are included until 16

October. By year-end, Tietoevry no longer holds ownership in any joint venture.

178

31. Commitments and contingencies

The Group's commitments and contingencies mainly 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 2024	31 Dec 2023
For Tietoevry obligations
Guarantees
Performance guarantees	161.2	150.6
Payment guarantees	1.4	0.6
Other	—	0.1
Other Tietoevry obligations
Lease commitments, not yet commenced	8.8	10.7
Other	0.4	0.5
On behalf of third parties
Guarantees
Performance guarantees	22.7	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.

32. Events after the reporting period

There were no material events after the reporting period.

179

PARENT COMPANY´S FINANCIAL STATEMENTS (According to Finnish Accounting Standards)

Income statement


EUR	Note	2024	2023
Net sales	1	159 318 730.62	174 294 044.70

Other operating income	2	18 625 597.04	31 773 209.71
Personnel expenses	3	-15 812 467.06	-15 468 496.71
Depreciation and impairment losses	8, 9	-24 400 008.76	-24 584 732.95
Other operating expenses	4	-188 706 182.23	-214 599 710.45
Operating loss		-50 974 330.39	-48 585 685.70

Financial income and expenses	6	12 677 819.00	95 450 986.94
Profit/loss before appropriations and taxes		-38 296 511.39	46 865 301.24

Appropriations
Appropriations		-499 704.05	-29 368.89
Group contribution		102 200 000.00	75 000 000.00
Profit before taxes		63 403 784.56	121 835 932.35

Income taxes	7	-7 213 616.60	-2 137 958.13
Net profit for the financial year		56 190 167.96	119 697 974.22

180

Balance Sheet

Assets


EUR	Note	31 Dec 2024	31 Dec 2023
Non-current assets
Intangible assets	8	108 140 827.76	131 692 801.99
Tangible assets	9	734 042.95	814 718.41
Investments	10	2 234 799 788.80	2 404 283 993.18
Total non-current assets		2 343 674 659.51	2 536 791 513.58

Current assets
Long-term receivables
Loan receivables from Group companies	11	94 116 207.08	90 205 736.24
Other receivables1)	11	13 574 388.46	16 101 039.90
		107 690 595.54	106 306 776.14
Current receivables
Accounts receivables	12	121 333.39	149 915.85
Receivables from Group companies	12, 13	199 291 370.02	178 230 090.79
Receivables from joint ventures	12, 13	—	11 107.76
Other receivables	12	3 164 516.43	9 739 695.69
Prepaid expenses and accrued income1)	13	10 618 029.38	8 967 930.00
		213 195 249.22	197 098 740.09

Cash and cash equivalents		119 688 724.78	100 717 703.28

Total current assets		440 574 569.54	404 123 219.51

Total assets		2 784 249 229.05	2 940 914 733.09

1) Comparative information has been updated, see note 21.

Shareholders' equity and liabilities


EUR	Note	31 Dec 2024	31 Dec 2023
Shareholders' equity	14
Share capital		76 555 412.00	76 555 412.00
Share issue premiums		13 791 579.51	13 791 579.51
Invested unrestricted equity reserve		1 207 617 299.52	1 207 617 299.52
Retained earnings		35 934 291.55	90 421 029.53
Net profit for the financial year		56 190 167.96	119 697 974.22
Total equity		1 390 088 750.54	1 508 083 294.78

Accumulated appropriations		529 072.94	29 368.89
Provisions	15	288 752.34	64 229.11

Liabilities
Non-current liabilities
Bonds	16	—	300 000 000.00
Loans	16	550 153 846.14	212 389 860.56
Other non-current liabilities1)	16	16 527 744.11	20 018 003.73
Accrued liabilities and deferred income	16	—	5 480.92
Total non-current liabilities		566 681 590.25	532 413 345.21
Current liabilities	17
Bonds		300 000 000.00	100 000 000.00
Advances received		84 162.80	83 264.78
Accounts payables		10 677 112.57	9 091 411.75
Liabilities to Group companies	17, 18	473 491 420.90	478 115 095.80
Liabilities to joint ventures	17, 18	—	3 050 111.71
Loans		13 076 923.08	288 381 846.08
Other current liabilities		7 626 624.48	5 303 900.85
Accrued liabilities and deferred income1)	18	21 704 819.15	16 298 864.13
Total current liabilities		826 661 062.98	900 324 495.10
Total liabilities		1 393 342 653.23	1 432 737 840.31

Total equity and liabilities		2 784 249 229.05	2 940 914 733.09

181

Statement of cash flows


EUR	2024	2023
Cash flow from operating activities
Net profit/loss before appropriations and taxes	-38 296 511.39	46 865 301.24
Adjustments
Depreciation, amortization and impairment losses	24 400 008.76	24 584 732.95
Net financial income	-12 677 819.00	-95 450 986.94
Other adjustments	-40 408.04	-22 698.02
Other non-cash items	638 061.52	-1 343 010.46
Cash generated from operating activities before net working capital	-25 976 668.15	-25 366 661.23

Change in net working capital
Change in current receivables	62 847 182.16	38 774 072.95
Change in current non-interest bearing liabilities	-31 064 272.36	-53 182 687.53
Cash generated from operating activities	5 806 241.65	-39 775 275.81

Interest expenses and other financial expenses paid	-76 970 351.54	-71 674 270.59
Interest income received	43 317 667.14	46 856 606.88
Dividend received and equity refund	211 158 638.32	120 742 785.78
Income taxes paid	-4 751 651.06	2 092 004.18
Cash flow from operating activities	178 560 544.51	58 241 850.44


EUR	2024	2023
Cash flow from investing activities
Purchase of tangible and intangible assets	-1 010 374.08	-783 162.79
Proceeds from sale of tangible and intangible assets	258 789.01	25 890.00
Investments in subsidiaries	—	-68 393 006.72
Acquisition of subsidiaries	-580 063.54	—
Loans granted	-44 698 203.66	-118 782 614.24
Repayments of other loans	22 862 693.45	71 141 168.28
Cash flow from investing activities	-23 167 158.82	-116 791 725.47

Cash flow from financing activities
Dividends paid	-174 184 712.20	-171 667 083.40
Purchase of own shares	—	-9 756 325.65
Proceeds from long-term borrowings	350 000 000.00	214 000 000.00
Repayments of long-term borrowings	-320 815 793.26	-99 502 052.90
Proceeds from short-term borrowings	333 652 285.08	195 677 679.51
Repayments of short-term borrowings	-404 638 405.82	-112 524 409.33
Change in intercompany cash pool, net	4 564 262.01	-97 166 824.86
Group contributions received	75 000 000.00	85 200 000.00
Cash flow from financing activities	-136 422 364.19	4 260 983.37

Change in cash and cash equivalents	18 971 021.50	-54 288 891.66

Cash and cash equivalents at the beginning of period	100 717 703.28	155 006 594.94
Cash and cash equivalents at the end of period	119 688 724.78	100 717 703.28
	18 971 021.50	-54 288 891.66

182

Notes to the parent company's financial statements

Parent company accounting principles

The financial statements of the Parent company Tietoevry Corporation are prepared in accordance with Finnish

Accounting Standards (FAS).

Tietoevry Corporation (business identity code 0101138-5) is a Finnish public limited IT service and software

company organized under the laws of Finland and domiciled in Espoo: Keilalahdentie 2-4, 02101 Espoo, Finland.

The company is listed on NASDAQ in Helsinki and Stockholm and the Oslo Stock Exchange. The Board of

Directors approved the financial statements on 3 March 2025. According to the Limited Liability Companies Act,

at the Annual General Meeting, the shareholders have the right to approve, disapprove or change the financial

statements after the publication.

Foreign currency items

Foreign currency transactions are initially translated at the exchange rate prevailing on the transaction date.

Foreign currency items at the end of the financial period are valued at the exchange rates on the balance sheet

date. Foreign currency items are hedged using derivative contracts.

Exchange gains and losses on net financial liabilities are reported in the income statement under financial items,

while other exchange gains or losses are included in operating profit. Gains and losses arising from revaluation of

derivative contracts are, depending on their nature, reported either under financial items or operating profit.

Net sales

Net sales include internal service fees and exchange rate differences from accounts receivables, less indirect

taxes such as value added tax.

Other operating income

Other operating income includes gain on sale of fixed assets, gain on liquidation of subsidiary shares, rental

income and derivative exchange rate gains.

Pension arrangements

The company’s pension obligations are administered through pension insurance institutions. Pension obligations

are fully covered.

Financial instruments

The company applies the Finnish Accounting Act chapter 5 section 2a and records financial instruments initially

at fair value.

See financial instruments accounting policies in the consolidated financial statements note 23.

Appropriations

Group contributions are included in appropriations.

Valuation of fixed assets

Fixed assets are carried at cost less accumulated depreciation. Depreciation is charged according to plan based

on the estimated economic lives of the individual assets and accounted for in accordance with the straight-line

method.

The company applies the following economic lives:


	Years
Intangible assets (software)	3
Other capitalized expenditure	3–10
Trademark	6
Goodwill from operations	10
Buildings	25–40
Data processing equipment1)	3–5
Other machinery and equipment	5
Other tangible assets	5

1) Purchases of personal computers are expensed immediately.

Income taxes

The income statement includes the company’s income taxes based on taxable profit for the period according to

local tax regulations as well as adjustments to prior year taxes. The information related to deferred tax items is

included in the notes.

183

1. Net sales


EUR	2024	2023
Internal service fees	159 318 730.62	174 294 044.70
Total	159 318 730.62	174 294 044.70


Net sales by country	2024	2023
Finland	43 167 539.20	45 947 589.09
Sweden	38 869 412.80	45 319 419.39
Norway	42 786 739.09	52 331 500.38
Other	34 495 039.53	30 695 535.84
Total	159 318 730.62	174 294 044.70

2. Other operating income


EUR	2024	2023
Rental income	14 447 526.94	20 152 040.14
Other income	4 178 070.10	11 621 169.57
Total	18 625 597.04	31 773 209.71

3. Personnel expenses


EUR	2024	2023
Wages and salaries	13 008 716.15	13 644 978.01
Pension expenses	2 449 309.08	1 352 796.53
Other pay-related statutory social costs	354 441.83	470 722.17
Total	15 812 467.06	15 468 496.71

The parent company had an average of 90 employees during 2024 and 92 employees in 2023.

4. Other operating expenses


EUR	2024	2023
Information and communication technology	29 329 901.99	28 581 673.92
Internal service fees	110 178 705.59	120 652 091.20
Premises related costs	13 841 600.21	19 879 920.12
Professional services and marketing	16 924 039.36	20 989 127.91
Derivative exchange rate losses on other expenses	4 165 123.88	11 227 622.14
Other operating expenses	14 266 811.20	13 269 275.13
Total	188 706 182.23	214 599 710.42

Fees to auditors


EUR	2024	2023
Audit fees	778 000.00	748 000.00
Sustainability statement assurance	108 000.00	—
Other audit related fees	229 000.00	253 300.00
Other services	120 000.00	30 000.00
Total	1 235 000.00	1 031 300.00

5. Management remuneration

See note 11 in Notes to the consolidated financial statements.

184

6. Financial income and expenses


EUR	2024	2023
Dividend income
Dividend income from Group companies	210 935 019.62	120 333 905.61
Dividend income from joint ventures	—	408 767.77
Dividend income from other companies	105.93	112.40
	210 935 125.55	120 742 785.78

Other interest and financial income
From Group companies	17 991 714.21	7 158 371.56
From other companies	60 874 633.41	102 703 903.09
	78 866 347.62	109 862 274.65

Impairment and other adjustments to investments, net1)	-165 340 755.15	—

Interest and other financing expenses
To Group companies	-11 782 285.73	-8 724 272.80
To other companies	-100 000 613.29	-126 429 800.69
	-111 782 899.02	-135 154 073.49

Total	12 677 819.00	95 450 986.94

1) Relates mainly to the impairment of subsidiary shares, see note 10.

7. Income taxes


EUR	2024	2023
Taxes for the financial period / appropriations	20 340 059.19	14 994 126.22
Taxes for the financial period / regular operations	-13 123 284.47	-13 562 980.59
Taxes for the previous years	-3 158.12	706 812.50
Total	7 213 616.60	2 137 958.13

185

8. Intangible assets


EUR	31 Dec 2024	31 Dec 2023
Intangible rights
Acquisition cost, 1 Jan	24 249 592.04	24 249 592.04
Acquisition cost, 31 Dec	24 249 592.04	24 249 592.04
Accumulated amortization, 1 Jan	20 405 362.68	18 405 050.93
Amortization for the period	1 994 495.40	2 000 311.75
Accumulated amortization, 31 Dec	22 399 858.08	20 405 362.68
Book value, 31 Dec	1 849 733.96	3 844 229.36

Goodwill
Acquisition cost, 1 Jan	212 149 583.27	212 149 583.27
Acquisition cost, 31 Dec	212 149 583.27	212 149 583.27
Accumulated amortization, 1 Jan	86 399 628.49	65 184 670.21
Amortization for the period	21 214 958.28	21 214 958.28
Accumulated amortization, 31 Dec	107 614 586.77	86 399 628.49
Book value, 31 Dec	104 534 996.50	125 749 954.78

Other capitalized expenditures
Acquisition cost, 1 Jan	20 667 455.82	20 214 412.39
Additions	717 334.09	469 553.14
Disposals	-115 435.46	-16 509.71
Acquisition cost, 31 Dec	21 269 354.45	20 667 455.82
Accumulated amortization, 1 Jan	18 568 837.97	17 542 594.60
Amortization for the period	944 419.18	1 026 243.37
Accumulated amortization, 31 Dec	19 513 257.15	18 568 837.97
Book value, 31 Dec	1 756 097.30	2 098 617.85

Total	108 140 827.76	131 692 801.99

9. Tangible assets


EUR	31 Dec 2024	31 Dec 2023
Land
Acquisition cost, 1 Jan	60 270.13	60 270.13
Acquisition cost, 31 Dec	60 270.13	60 270.13

Machinery and equipment
Acquisition cost, 1 Jan	34 175 059.50	33 864 641.83
Additions	293 040.05	313 609.65
Disposals	-127 579.55	-3 191.98
Acquisition cost, 31 Dec	34 340 520.00	34 175 059.50
Accumulated depreciation, 1 Jan	33 457 981.52	33 114 761.97
Depreciation for the period	246 135.96	343 219.55
Accumulated depreciation, 31 Dec	33 704 117.48	33 457 981.52
Book value, 31 Dec	636 402.52	717 077.98

Other tangible assets
Acquisition cost, 1 Jan	37 370.30	37 370.30
Acquisition cost, 31 Dec	37 370.30	37 370.30
Book value, 31 Dec	37 370.30	37 370.30

Total	734 042.95	814 718.41

186

10. Investments


EUR	31 Dec 2024	31 Dec 2023
Subsidiary shares
Acquisition cost, 1 Jan	2 401 510 653.24	2 333 141 681.29
Additions	580 063.54	68 393 006.72
Disposals	-223 512.77	-24 034.77
Reclassifications	1 619 893.60	—
Impairment1)	-168 840 755.15	—
Acquisition cost, 31 Dec	2 234 646 342.46	2 401 510 653.24
Book value, 31 Dec	2 234 646 342.46	2 401 510 653.24

Shares in joint ventures
Acquisition cost, 1 Jan	2 619 893.60	2 619 893.60
Reclassifications	-2 619 893.60	—
Acquisition cost, 31 Dec	—	2 619 893.60
Book value, 31 Dec	—	2 619 893.60

Other shares and interests
Acquisition cost, 1 Jan	153 446.34	153 446.34
Acquisition cost, 31 Dec	153 446.34	153 446.34
Book value, 31 Dec	153 446.34	153 446.34

Total	2 234 799 788.80	2 404 283 993.18

1) The majority of which relates to the impairment of subsidiary shares related to the Tech Services business. See also note 14 in Notes to the

consolidated financial statements.

Subsidiary shares

See note 28 in Notes to the consolidated financial statements.

Joint ventures owned and managed by the parent company

See note 29 in Notes to the consolidated financial statements.

11. Long-term receivables


EUR	31 Dec 2024	31 Dec 2023
Receivables from Group companies
Loan receivables	94 116 207.08	90 205 736.24
Total	94 116 207.08	90 205 736.24

Receivables from other companies
Non-current derivative receivables1)	11 807 520.06	15 466 006.94
Other receivables	1 766 868.40	635 032.96
Total	13 574 388.46	16 101 039.90

1) Comparative information has been updated, see note 21.

12. Current receivables


EUR	31 Dec 2024	31 Dec 2023
Receivables from Group companies
Accounts receivable	18 112 825.04	6 694 092.67
Loan receivables	67 844 968.98	48 632 032.43
Other receivables	4 703 403.36	2 827 560.88
Dividend receivables	—	40 033 806.35
Group contribution receivables	102 200 000.00	75 000 000.00
Prepaid expenses and accrued income	6 430 172.64	5 042 598.46
Total	199 291 370.02	178 230 090.79
Receivables from joint ventures
Accounts receivable	—	11 107.76
Total	—	11 107.76
Receivables from other companies
Accounts receivable	121 333.39	149 915.85
Tax receivable	346 274.17	2 808 239.71
Other receivables	2 818 242.26	6 931 455.98
Total	3 285 849.82	9 889 611.54

187

13. Prepaid expenses and accrued income


EUR	31 Dec 2024	31 Dec 2023
Prepaid expenses and accrued income from Group companies
Other	6 430 172.64	5 042 598.46

Prepaid expenses and accrued income from other companies
License fees	7 761 207.24	6 327 037.70
Rents	—	265.00
Social costs	18 145.34	22 172.62
Bond discount and issue costs	714 946.63	1 126 075.95
Other	2 123 730.17	1 492 378.73
Total1)	10 618 029.38	8 967 930.00

Total	17 048 202.02	14 010 528.46

1) Comparative information has been updated, see note 21.

14. Changes in shareholders' equity


EUR	31 Dec 2024	31 Dec 2023
Restricted equity
Share capital, 1 Jan	76 555 412.00	76 555 412.00
Share capital, 31 Dec	76 555 412.00	76 555 412.00

Share issue premiums, 1 Jan	13 791 579.51	13 791 579.51
Share issue premiums, 31 Dec	13 791 579.51	13 791 579.51

Restricted equity total	90 346 991.51	90 346 991.51

Unrestricted equity
Invested unrestricted equity reserve, 1 Jan	1 207 617 299.52	1 207 617 299.52
Invested unrestricted equity reserve, 31 Dec	1 207 617 299.52	1 207 617 299.52

Retained earnings, 1 Jan	210 119 003.75	271 844 438.58
Purchase of own shares	—	-9 756 325.65
Dividend distributions	-174 184 712.20	-171 667 083.40
Retained earnings, 31 Dec	35 934 291.55	90 421 029.53

Net profit for the financial year	56 190 167.96	119 697 974.22

Unrestricted equity total	1 299 741 759.03	1 417 736 303.27

Shareholders' equity, total	1 390 088 750.54	1 508 083 294.78

Distributable funds
Invested unrestricted equity reserve	1 207 617 299.52	1 207 617 299.52
Retained earnings	35 934 291.55	90 421 029.53
Net profit for the financial year	56 190 167.96	119 697 974.22
Total	1 299 741 759.03	1 417 736 303.27

Breakdown of the parent's share capital
Number of shares	118 640 150	118 425 771
Euros	76 555 412.00	76 555 412.00

188

15. Provisions


EUR	31 Dec 2024	31 Dec 2023
Restructuring commitments	250 066.86	30 952.00
Other provisions	38 685.48	33 277.11
Total	288 752.34	64 229.11

16. Non-current liabilities


EUR	31 Dec 2024	31 Dec 2023
Bonds	—	300 000 000.00
Loans	550 153 846.14	212 389 860.56
Non-current derivative liabilities1)	16 527 744.11	20 018 003.73
Accrued liabilities and deferred income	—	5 480.92
Total	566 681 590.25	532 413 345.21

1) Comparative information has been updated, see note 21.

In 2023, the fair value of bonds (EUR 291 423 000) was calculated based on prevailing market rate at the

reporting date.

17. Current liabilities


EUR	31 Dec 2024	31 Dec 2023
Liabilities to Group companies
Accounts payable	9 632 222.36	9 195 407.57
Other liabilities including cash pool	454 695 743.48	454 335 076.44
Accrued liabilities and deferred income	9 163 455.06	14 584 611.79
	473 491 420.90	478 115 095.80
Liabilities to joint ventures
Other liabilities including cash pool	—	3 050 111.71
	—	3 050 111.71
Liabilities to other companies
Bonds	300 000 000.00	100 000 000.00
Advances received	84 162.80	83 264.78
Accounts payable	10 677 112.57	9 091 411.75
Loans	13 076 923.08	288 381 846.08
Other current liabilities	7 626 624.48	5 303 900.85
Accrued liabilities and deferred income1)	21 704 819.15	16 298 864.13
	353 169 642.08	419 159 287.59

Total	826 661 062.98	900 324 495.10

1) Comparative information has been updated, see note 21.

Loans and receivables and financial liabilities are held at amortized cost using the effective interest rate method.

Their carrying amounts are considered to approximate their fair value, except for the fixed rate bond where

carrying amount has not been adjusted to match the fair value.

The fair value of bonds has been calculated based on prevailing market rate at the reporting date and as at

31 Dec 2024 it was EUR 298 284 000 (EUR 98 124 000 in 2023). Tietoevry signed a two-year term loan facility of

EUR 300 million to be used for bond refinancing, see note 20 in Notes to the consolidated financial statements.

189

18. Accrued liabilities and deferred income


EUR	31 Dec 2024	31 Dec 2023
Accrued liabilities and deferred income from Group companies
Service fee	9 146 604.31	14 501 872.02
Interest	16 850.75	82 739.77
	9 163 455.06	14 584 611.79

Accrued liabilities and deferred income from other companies
Vacation pay and related social costs	1 757 384.09	1 640 265.30
Other accrued payroll and related social costs	1 582 731.48	1 994 383.79
Other social costs	261 004.73	302 655.77
Interest1)	12 123 159.21	8 754 944.83
Other	5 980 539.64	3 606 614.44
	21 704 819.15	16 298 864.13

Total	30 868 274.21	30 883 475.92

1) Comparative information has been updated, see note 21.

19. Deferred tax assets and liabilities


EUR	31 Dec 2024	31 Dec 2023
Deferred tax assets
From temporary differences	428 868.30	6 655.42
Total	428 868.30	6 655.42

Deferred tax liabilities
From appropriations	105 814.59	5 873.78
Total	105 814.59	5 873.78

Deferred tax items are not included in the balance sheet.

20. Contingent liabilities


EUR	31 Dec 2024	31 Dec 2023
On behalf of Group companies
Guarantees	241 291 272.99	224 781 619.93
Other Tietoevry obligations
Rent commitments due in 2025 (2024)	6 910 519.70	7 316 116.50
Rent commitments due later	14 370 940.35	16 130 320.09
Lease commitments due in 2025 (2024)1)	407 181.30	333 901.00
Lease commitments due later1)	395 102.67	354 096.37
On behalf of Third parties
Guarantees	22 689 588.97	23 431 867.34

1) Lease commitments are principally three-year lease agreements that do not include buyout clauses.

In addition to the above mentioned contingent liabilities, parent company has provided security on behalf of

delivering Group company relating to some major contracts.

190

21. Derivatives

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	31 Dec 2024	31 Dec 2023
Foreign exchange forward contracts	602 846 898.94	630 995 010.27
Interest rate swaps	280 000 000.00	280 000 000.00

Fair values of derivatives

The fair values of foreign exchange derivatives are calculated according to foreign exchange and interest rates

on the closing date.

The interest rate swaps have been reclassified from Prepaid expenses and accrued income and Accrued

liabilities and deferred income to long term assets and liabilities based on their maturities. The comparative

information was updated accordingly.


The net fair values of derivative financial instruments at the balance sheet date	31 Dec 2024	31 Dec 2023
Foreign exchange forward contracts	-5 205 086.24	3 545 431.67
Interest rate swaps	-4 720 224.05	-4 551 996.79

Derivatives are used for economic purposes only.


Gross positive fair values of derivatives	31 Dec 2024	31 Dec 2023
Foreign exchange forward contracts	2 857 564.08	8 641 211.39
Interest rate swaps	11 807 520.06	15 466 006.94


Gross negative fair values of derivatives	31 Dec 2024	31 Dec 2023
Foreign exchange forward contracts	-8 062 650.35	-5 095 779.72
Interest rate swaps	-16 527 744.11	-20 018 003.73

Fair value measurement of financial assets and liabilities

See note 23 in Notes to the consolidated financial statements.

22. Management of financial risks

The operative management of the treasury activities of Tietoevry is centralized in Group Treasury, which is

operated from the Parent company. 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 counterparty 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.

Financial risks are assessed, measured and managed on a Group level. See note 20 in Notes to the consolidated

financial statements.

Proposal for distribution to shareholders

Distributable funds in the parent company totalled EUR 1 299 741 759.03 comprised of invested unrestricted

equity reserve of EUR 1 207 617 299.52 and retained earnings of EUR 92 124 459.51 of which net profit for the

current year is EUR 56 190 167.96.

The Board of Directors proposes that the distributable funds shall be distributed as follows:

• a dividend from retained earnings and/or distribution of funds from the reserve of invested unrestricted

equity in the total amount of EUR 1.50 per share (in total EUR 177 892 366.50) to be paid to shareholders

• the remainder EUR 1 121 849 392.53 to be retained as equity.

In the opinion of the Board of Directors the proposed distribution to shareholders does not endanger the

solvency of the company.

191

SIGNATURES FOR THE REPORT BY THE BOARD OF DIRECTORS, SUSTAINABILITY STATEMENT AND FINANCIAL STATEMENTS, AND AUDITOR'S NOTE

The consolidated financial statements and parent company financial statements prepared in accordance with

applicable accounting regulations give a true and fair view of the Group and the parent company's assets,

liabilities and financial position as at 31 December 2024 and the profit or loss of the Group and the parent

company operations and the cash flows for the financial year ended 31 December 2024.

The Report by the Board of Directors includes a fair review of the development and results of the business

activities of the Group and the parent company as well as a description of the most significant risks and

uncertainties and other aspects of the Group and the parent company's state.

The sustainability statement, which is part of the Report by the Board of Directors, is prepared, in all material

respects, in accordance with Chapter 7 of the Finnish Accounting Act and Article 8 of Regulation (EU) 2020/852

(the "Taxonomy Regulation").


Signatures for the Financial statements, Report by the Board of Directors and Sustainability statement				The Auditor's Note
Espoo, 3 March 2025				Our auditors' report has been issued today.
				Espoo, 3 March 2025

	Tomas Franzén			Deloitte Oy
	Chairperson			Audit Firm


Harri-Pekka Kaukonen	Bertil Carlsén	Elisabetta Castiglioni	Liselotte Hägertz Engstam	Jukka Vattulainen
Deputy Chairperson				Authorised Public Accountant (KHT)


Katharina Mosheim	Gustav Moss	Petter Söderström	Anders Palklint


	Thomas Slettemoen	Kimmo Alkio
		President and CEO

192

AUDITOR’S REPORT (Translation of the Finnish original)

To the Annual General Meeting of Tietoevry Oyj

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Tietoevry Oyj (business identity code 0101138-5) for the year ended 31 December, 2024. The financial statements comprise the consolidated income statement, statement of

comprehensive income, financial position, statement of cash flows, statement of changes in equity and notes, including material accounting policy information, as well as the parent company’s income statement, balance sheet,

statement of cash flows and notes.

In our opinion

• the consolidated financial statements give a true and fair view of the group’s financial position, financial performance and cash flows in accordance with IFRS Accounting Standards as adopted by the EU

• the financial statements give a true and fair view of the parent company’s financial performance and financial position in accordance with the laws and regulations governing the preparation of financial statements in Finland

and comply with statutory requirements.

Our opinion is consistent with the additional report submitted to the Audit Committee.

Basis for Opinion

We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good auditing practice are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of

our report.

We are independent of the parent company and of the group companies in accordance with the ethical requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical responsibilities in

accordance with these requirements.

In our best knowledge and understanding, the non-audit services that we have provided to the parent company and group companies are in compliance with laws and regulations applicable in Finland regarding these services, and

we have not provided any prohibited non-audit services referred to in Article 5(1) of regulation (EU) 537/2014. The non-audit services that we have provided have been disclosed in note 7 to the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

193

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial

statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have also addressed the risk of management override of internal controls. This includes consideration of whether there was evidence of management bias that represented a risk of material misstatement due to fraud.


Key Audit Matter	How our audit addressed the Key Audit Matter
Revenue recognition
Refer to Note 6 in the consolidated financial statements. Consolidated revenue of Tietoevry Oyj amounted to EUR 2 802.6 million (EUR 2 851.4 million). Revenue consist mostly of continuous services, software solutions and consulting. In addition to this, the Company has fixed-price projects. Revenue from service contracts, software solutions and consulting 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. 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. Revenue is a key financial indicator and consists of a large volume of transactions. For this reason the functionality of information system controls is emphasised in revenue recognition. A significant part of the revenue is automatically recognized in accounting through IT systems based on the fulfilment of the performance obligation. Revenue recognition due to its significance require specific attention both from the accounting and the auditing perspective.	We have evaluated the IT systems used for recognizing revenue by testing access and change management controls. We have also evaluated process level controls by performing walkthroughs of significant classes of revenue transactions, assessed the design of key controls and tested the operating effectiveness of those controls. We have analyzed the transactions recorded to revenue by applying data analytics to identify entries originating from automated processes and entries from manual journals. Based on our revenue related risk assessment we have focused our substantive audit procedures to the transactions estimated as higher risk transactions. Our substantive audit procedures to address the identified risk relating to revenue from services, software solutions and consulting consisted among others, performing transactional testing procedures to validate the recognition of revenue throughout the year as well as year-end. Our substantive audit procedures to address the risk of inappropriate accounting for fixed-priced projects were focused on judgements used by management in project estimates. We selected a sample of contracts and assessed the estimates based on projects’ status and forecasted costs and income. We agreed the revenue estimates against the sales agreements and ensured that the revenue recognition method applied was appropriate based on the terms of the agreement. We recalculated the revenue based on percentage of completion and assessed the appropriateness of the percentage of completion by comparing actual costs from the Company’s accounting records to the estimated total costs of the project.

194


Key audit matter	How our audit addressed the key audit matter
Impairment testing of Goodwill
Refer to Note 14 in the consolidated financial statements. Consolidated financial statements includes goodwill of EUR 1 648.2 million (1 907.3 million). Goodwill is measured at cost less accumulated impairment losses. Goodwill is subject to annual impairment test according to IAS 36 Impairment of Assets Standard. For testing purposes goodwill is allocated to cash-generating units. As a result of goodwill impairment test, Tietoevry concluded that the carrying amount exceeded the recoverable amount for the Tietoevry Tech Services Cash Generating Unit and recorded a non-cash impairment charge of EUR 200.0 million. Goodwill impairment testing requires substantial management judgment over the projected future business performance, cash flows and applied discount rate. Note 14 in the consolidated financial statements describes key assumptions used by management in the impairment test.	We have performed audit procedures on impairment testing prepared by management relating to material cash generating units and assessed key controls over management’s goodwill impairment testing. The recoverable amounts of the cash-generating units are determined based on value-in-use calculations. Cash flows used in these calculations are based on five-year financial plans defined by group management. We have assessed the key assumptions used by management in the impairment test for cash generating units by: • comparing the growth and profitability estimates used by management to historical performance. • comparing the estimates with the latest approved budgets and strategic plans. • involving our valuation specialists to verify that the discount rates and the long‐term growth rates are consistent with observable market data. • validated the mathematical accuracy of the impairment calculations. We have also assessed the related disclosure information.
We have no key audit matters to report with respect to our audit of the parent company financial statements. There are no significant risks of material misstatement referred to in EU regulation No 537/2014, point (c) of Article 10(2) relating to the consolidated financial statements or the parent company’s financial statements.

Responsibilities of the Board of Directors and the President and CEO for the Financial Statements

The Board of Directors and the President and CEO are responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU, and of

financial statements that give a true and fair view in accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with statutory requirements. The Board of Directors and President

and CEO are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors and President and CEO are responsible for assessing the parent company’s and the group’s ability to continue as a going concern, disclosing, as applicable, matters relating

to going concern and using the going concern basis of accounting. The financial statements are prepared using the going concern basis of accounting unless there is an intention to liquidate the parent company or the group or cease

operations, or there is no realistic alternative but to do so.

195

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with good auditing practice will always detect a material misstatement when it exists. Misstatements can arise from

fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and

appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the parent

company’s or the group’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of the Board of Directors’ and the President and CEO’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to

events or conditions that may cast significant doubt on the parent company’s or the group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our

auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s

report. However, future events or conditions may cause the parent company or the group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events so that the financial

statements give a true and fair view.

• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the group financial

statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify

during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may

reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters.

We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report

because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

196

Other Reporting Requirements

Information on our audit engagement

We have been acting as Tietoevry’s auditors a total period of uninterrupted engagement of 7 years since 2018.

Other information

The Board of Directors and President and CEO are responsible for the other information. The other information comprises the report of the Board of Directors and the information included in the Annual Report but does not include the

financial statements or our auditor’s report thereon. We have obtained the report of the Board of Directors prior to the date of this auditor’s report, and the Annual Report is expected to be made available to us after that date.

Our opinion on the financial statements does not cover the other information.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial

statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. With respect to the report of the Board of Directors, our responsibility also includes considering whether the report of the Board of

Directors has been prepared in compliance with the applicable provisions, excluding the sustainability report information on which there are provisions in Chapter 7 of the Accounting Act and in the sustainability reporting standards.

In our opinion, the information in the report of the Board of Directors is consistent with the information in the financial statements and the report of the Board of Directors has been prepared in compliance with the applicable

provisions. Our opinion does not cover the sustainability report information on which there are provisions in Chapter 7 of the Accounting Act and in the sustainability reporting standards.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that

fact. We have nothing to report in this regard.

Espoo, 3 March 2025

Deloitte Oy

Audit Firm

Jukka Vattulainen

Authorised Public Accountant (KHT)

197

ASSURANCE REPORT ON THE SUSTAINABILITY STATEMENT (Translation of the Finnish original)

To the Annual General Meeting of Tietoevry Oyj

We have performed a limited assurance engagement on the group sustainability statement of Tietoevry Oyj (0101138-5) that is referred to in Chapter 7 of the Accounting Act and that is included in the report of the Board of Directors

for the financial year 1.1.–31.12.2024.

Opinion

Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the group sustainability statement does not comply, in all material respects, with

• the requirements laid down in Chapter 7 of the Accounting Act and the sustainability reporting standards (ESRS);

• the requirements laid down in Article 8 of the Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU)

2019/2088 (EU Taxonomy).

Point 1 above also contains the process in which Tietoevry Oyj has identified the information for reporting in accordance with the sustainability reporting standards (double materiality assessment) and the tagging of information as

referred to in Chapter 7, Section 22 of the Accounting Act.

Our opinion does not cover the tagging of the group sustainability statement with digital XBRL sustainability tags in accordance with Chapter 7, Section 22, Subsection 1(2), of the Accounting Act, because sustainability reporting

companies have not had the possibility to comply with that provision in the absence of the ESEF regulation or other European Union legislation.

Basis for Opinion

We performed the assurance of the group sustainability statement as a limited assurance engagement in compliance with good assurance practice in Finland and with the International Standard on Assurance Engagements (ISAE)

3000 (Revised) Assurance Engagements Other than Audits or Reviews of Historical Financial Information.

Our responsibilities under this standard are further described in the Responsibilities of the Authorised Sustainability Auditor section of our report.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Matter

We draw attention to the fact that the group sustainability statement of Tietoevry Oyj that is referred to in Chapter 7 of the Accounting Act has been prepared and assurance has been provided for it for the first time for the financial

year 1.1.–31.12.2024. Our opinion does not cover the comparative information that has been presented in the group sustainability statement. Our opinion is not modified in respect of this matter.

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Authorised group sustainability auditor's Independence and Quality Management

We are independent of the parent company and of the group companies in accordance with the ethical requirements that are applicable in Finland and are relevant to our engagement, and we have fulfilled our other ethical

responsibilities in accordance with these requirements.

The authorised group sustainability auditor applies International Standard on Quality Management ISQM 1, which requires the authorised sustainability audit firm to design, implement and operate a system of quality management

including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Responsibilities of the Board of Directors and the President and CEO

The Board of Directors and the President and CEO of Tietoevry Oyj are responsible for:

• the group sustainability statement and for its preparation and presentation in accordance with the provisions of Chapter 7 of the Accounting Act, including the process that has been defined in the sustainability reporting

standards and in which the information for reporting in accordance with the sustainability reporting standards has been identified as well as the tagging of information as referred to in Chapter 7, Section 22 of the Accounting

Act and

• the compliance of the group sustainability statement with the requirements laid down in Article 8 of the Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a framework to

facilitate sustainable investment, and amending Regulation (EU) 2019/2088;

• such internal control as the Board of Directors and the President and CEO determine is necessary to enable the preparation of a group sustainability statement that is free from material misstatement, whether due to fraud or

error.

Inherent Limitations in the Preparation of a Sustainability Statement

In preparing the sustainability statement, the company is required to conduct a materiality assessment to identify relevant matters to be reported. This process involves significant management judgement and choices. Due to the

nature and characteristics of sustainability reporting, this type of information involves estimates and assumptions, as well as measurement and evaluation uncertainties.

In reporting forward-looking information, management is required to prepare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the Group.

The actual outcome is likely to be different since anticipated events frequently do not occur as expected.

Responsibilities of the Authorised Group Sustainability Auditor

Our responsibility is to perform an assurance engagement to obtain limited assurance about whether the group sustainability statement is free from material misstatement, whether due to fraud or error, and to issue a limited

assurance report that includes our opinion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on

the basis of the group sustainability statement.

Compliance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) requires that we exercise professional judgment and maintain professional skepticism throughout the engagement. We also:

• Identify and assess the risks of material misstatement of the group sustainability statement, whether due to fraud or error, and obtain an understanding of internal control relevant to the engagement in order to design

assurance procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the parent company’s or the group’s internal control.

• Design and perform assurance procedures responsive to those risks to obtain evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud

is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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Description of the Procedures That Have Been Performed

The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. The nature, timing and extent of assurance procedures selected

depend on professional judgment, including the assessment of risks of material misstatement, whether due to fraud or error. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than

the assurance that would have been obtained had a reasonable assurance engagement been performed.

Our procedures included for example the following:

• Performed inquiries of the company’s management and personnel responsible for collecting and reporting the information contained in the sustainability statement at the group level and for subsidiaries, as well as at the

different levels and business areas of the organization.

• Obtained an understanding of the company’s sustainability reporting process, internal controls, and information systems related to the sustainability reporting process through inquiries.

• Reviewed the supporting documentation and records prepared by the company, where applicable, and assessed whether they support the information included in the sustainability statement.

• With respect to the double materiality assessment process, we evaluated the implementation of the process conducted by the company in relation to the requirements of the ESRS standards and assessed whether the

disclosed information on the double materiality assessment is in accordance with the ESRS standards.

• Evaluated whether the sustainability statement meets the requirements of the ESRS standards, in all material aspects, regarding material sustainability matters to a significant extent.

• With respect to the EU taxonomy information, we obtained an understanding of the process by which the company has identified taxonomy-eligible and taxonomy-aligned economic activities and assessed the compliance of

the related disclosed information with the regulations.

Espoo, 3 March 2025

Deloitte Oy

Authorised Sustainability Audit Firm

Jukka Vattulainen

Authorised Sustainability Auditor

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(Translation of the Finnish Original)

Independent auditor’s report on the ESEF consolidated financial statements of Tietoevry Oyj

To the Board of Directors of Tietoevry Oyj

We have performed a reasonable assurance engagement on the consolidated financial statement (549300EW2KM4KROKQV31-2024-12-31-fi.zip) of Tietoevry Oyj (0101138-5) that have been prepared in accordance with the

Commission's regulatory technical standard for the financial year ended 31.12.2024.

Responsibilities of the board of directors and the President and CEO

The Board of Directors and the President and CEO are responsible for the preparation of the company’s report of the Board of Directors and financial statements (the ESEF financial statements) in such a way that they comply with the

requirements of the Commission's regulatory technical standard. This responsibility includes:

• preparing the ESEF financial statements in XHTML format in accordance with Article 3 of the Commission's regulatory technical standard

• tagging the primary financial statements, notes and company's identification data in the consolidated financial statements that are included in the ESEF financial statements with iXBRL tags in accordance with Article 4 of the

Commission's regulatory technical standard and

• ensuring the consistency between ESEF financial statements and the audited financial statements.

The Board of Directors and the President and CEO are also responsible for such internal control as they determine is necessary to enable the preparation of ESEF financial statements in accordance with the requirements of the

Commission's regulatory technical standard.

Auditor’s independence and quality control

We are independent of the company in accordance with the ethical requirements that are applicable in Finland and are relevant to the engagement we have performed, and we have fulfilled our other ethical responsibilities in

accordance with these requirements.

The auditor applies International Standard on Quality Management (ISQM) 1, which requires the firm to design, implement, and operate a system of quality management including policies or procedures regarding compliance with

ethical requirements, professional standards, and applicable legal and regulatory requirements.

Auditor’s responsibilities

Our responsibility is to, in accordance with Chapter 7, Section 8 of the Securities Markets Act, provide assurance on the financial statements that have been prepared in accordance with the Commission's regulatory technical

standard. We express an opinion on whether the consolidated financial statements that are included in the ESEF financial statements have been tagged, in all material respects, in accordance with the requirements of Article 4 of the

Commission's regulatory technical standard.

Our responsibility is to indicate in our opinion to what extent the assurance has been provided. We conducted a reasonable assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000.

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The engagement includes procedures to obtain evidence on:

• whether the primary financial statements in the consolidated financial statements that are included in the ESEF financial statements have been tagged, in all material respects, with iXBRL tags in accordance with the

requirements of Article 4 of the Commission's regulatory technical standard and

• whether the notes and company's identification data in the consolidated financial statements that are included in the ESEF financial statements have been tagged, in all material respects, with iXBRL tags in accordance with the

requirements of Article 4 of the Commission's regulatory technical standard and

• whether there is consistency between the ESEF financial statements and the audited financial statements.

The nature, timing and extent of the selected procedures depend on the auditor’s judgment. This includes an assessment of the risk of a material deviation due to fraud or error from the requirements of the Commission's regulatory

technical standard.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

Our opinion pursuant to Chapter 7, Section 8 of the Securities Markets Act is that the primary financial statements, notes and company's identification data in the consolidated financial statements that are included in the ESEF

financial statements of Tietoevry Oyj (549300EW2KM4KROKQV31-2024-12-31-fi.zip) for the financial year ended 31.12.2024 have been tagged, in all material respects, in accordance with the requirements of the Commission's

regulatory technical standard.

Our audit opinion on the audit of the consolidated financial statements of Tietoevry Oyj for the financial year ended 31.12.2024 has been expressed in our auditor’s report dated 3 March 2025. With this report we do not express an

opinion on the audit of the consolidated financial statements nor express another assurance conclusion.

Espoo, 3 March 2025

Deloitte Oy

Audit Firm

Jukka Vattulainen

Authorised Public Accountant (KHT)