549300EW2KM4KROKQV31-2025-12-31-en


TIETO − ANNUAL REPORT 2025	5

Highlights of 2025

Adjusted operating profit (EBITA),

EUR million

256.5

• 2025 was a year of changes at the company involving its business structure, management and strategy.

• Endre Rangnes, previously the Managing Director of the Banking business, was appointed as the new CEO

(225.4)

of the company. During the year, Tieto onboarded several new members to the Group Executive Team to

steer the company through the next phase. Read more in the section describing the company's Group

Executive Team.

• The divestment of the Tech Services business was completed in September. The transaction is a significant

Adjusted operating margin (EBITA)

step in Tieto’s transformation to reposition the company as a software and technology consulting market

leader.

13.8%

• Tieto launched an updated strategy to become the European software and technology consulting market

leader within selected industries – and introduced clear strategic priorities to accelerate execution. Read

more in the Strategy section.

• Strategy execution is well underway with acquisitions in Spain supporting the company's European

expansion. To drive simplification, the company made an agreement to divest Bekk Consulting, part of

(12.0)

Tieto Tech Consulting. Both transactions were closed in early 2026. Read more in Events after the period.

• In its successful Capital Markets Day held in November, the company introduced new long-term financial

targets. The financial targets are described in the Strategy section.

• Aligned with the company’s profound change, the company decided to renew its brand. The new brand

addresses the focus on a customer-first mindset, simplified core and selective international expansion by

opting for the simpler and meaningful Tieto as the company name. The name change of the parent

company, Tietoevry Corporation, will be subject to a decision by the Annual General Meeting.

• The market environment remained soft, especially for consulting services. Revenue was down by 1%.

Organically¹⁾, revenue was down by 2%.

• Tieto launched a cost optimization programme targeting a total of EUR 115 million in run-rate savings by the

end of 2026. Tieto achieved run-rate savings of EUR 95 million by the end of the year and uplifted the target

to EUR 130 million.

• Profitability development was healthy with adjusted operating profit²⁾ (EBITA) of EUR 256.5 (225.4) million,

representing a margin of 13.8% (12.0). The margin includes a negative IFRS 5-related impact of

approximately 1.0 percentage points due to the Tech Services divestment.

• Operating profit (EBIT) amounted to EUR 75.2 (142.3) million, impacted by EUR 82.9 million in non-cash

impairment of capitalized development costs mainly in Tieto Banktech.

• Both revenue and operating profit include a positive effect of EUR 21.9 million, booked in the third quarter,

arising from the court ruling related to deliveries in prior periods in Tieto Banktech as announced by the

company in August.

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.


TIETO − ANNUAL REPORT 2025	6

Five-year key figures


	2025	2024	2023	2022	2021
Revenue, EUR million	1 852.3	1 879.5	2 851.4	2 928.1	2 823.4
Operating profit (EBIT), EUR million	75.2	142.3	255.6	266.5	382.0
Operating margin (EBIT), %	4.1	7.6	9.0	9.1	13.5
Adjusted¹⁾ operating profit (EBITA ²⁾), EUR million	256.5	225.4	358.7	379.2	367.8
Adjusted¹⁾ operating margin (EBITA ²⁾), %	13.8	12.0	12.6	13.0	13.0
Profit before taxes, EUR million	41.0	97.2	220.8	242.8	353.8
Earnings per share, combined ³⁾, EUR
Basic	-1.19	-0.53	1.45	1.59	2.46
Diluted	-1.18	-0.53	1.45	1.59	2.46
Earnings per share, continuing operations, EUR
Basic	0.22	0.59	n/a	n/a	n/a
Diluted	0.22	0.59	n/a	n/a	n/a
Equity per share, EUR	9.15	10.95	13.62	14.52	15.38
Dividend per share ⁴⁾, EUR	0.88	1.50	1.47	1.45	1.40
Capital expenditure, EUR million	55.9	54.3	85.3	92.9	80.8
Return on equity, 12-month rolling, %	2.2	4.8	10.3	10.7	16.9
Return on capital employed, 12-month rolling ⁵⁾, %	3.8	1.4	9.8	9.9	13.7
Gearing⁵⁾, %	51.3	67.2	56.6	39.5	33.5
Interest-bearing net debt⁵⁾, EUR million	555.5	871.8	911.8	679.1	610.6
Equity ratio ⁵⁾, %	49.3	43.1	46.7	51.5	51.6
Personnel on average	15 088	16 363	24 181	24 401	23 824
Personnel on 31 Dec	14 246	15 867	24 159	24 320	24 389

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, goodwill and other intangible asset impairment.

³⁾ Continuing and discontinued operations combined.

⁴⁾ For 2024, distribution of dividend and return of capital.

⁵⁾ Continuing operations from 2025 onwards.

Key figures are presented for continuing operations in 2025. Comparative information for 2024 has been updated accordingly, unless otherwise stated.

See calculation of key figures on the page Alternative performance measures.


TIETO − ANNUAL REPORT 2025	7

IT market development

Macroeconomic and geopolitical uncertainty is expected to persist through 2026. Following the low growth

seen in 2025, overall spending on software and technology consulting services is anticipated to recover

modestly towards the year end while growth rates will remain below pre-pandemic levels. The primary drivers

of a gradual recovery in technology spending are expected to include:

• Competitive cost base: driving a leaner, more competitive cost base.

• Initiatives focused on AI-driven value creation, particularly in data management, security, and analytics

• Continued cloud transformation, with emphasis on data sovereignty

• Investments aimed at reducing accumulated technology debt

• ERP and enterprise application renewals, driven by ageing platforms and vendor roadmaps.

Customers continue postponing large-scale, multi-year transformation programmes that require significant

upfront commitments or lock-in of spend.

AI remains the central theme underpinning technology investment growth. The nature of AI spend is evolving

from proof-of-concepts towards use cases that deliver measurable business value. At the same time,

optionality across enabling technologies is increasing, reducing the likelihood of a winner-takes-all market

structure. As AI adoption matures, customers are increasingly recognizing that the primary constraints are not

the core models/technologies themselves, but rather data availability and quality, system integrations, data

management practices, and security.

Cloud transformation continues to rank high on customer agendas across industries, with growing emphasis

on security, resilience, and data sovereignty. In parallel, software providers are embedding AI capabilities to

improve productivity, usability, and insight generation, driving successive waves of application upgrades.

Demand for modular software architectures, open standards, and data-led value creation continues to

increase. These trends are evident even in highly regulated sectors such as banking and healthcare, where

compliance requirements and long transformation cycles have traditionally slowed adoption.

Software businesses and the services built around them are expected to remain more resilient, with growth

improving towards low single-digit levels. Technology consulting spend is expected to recover from the

negative growth observed in 2025 to slightly positive growth in 2026. While the overall market outlook remains

subdued, conditions are expected to be incrementally more favourable for Tieto’s businesses.


TIETO − ANNUAL REPORT 2025	8

Strategy to become European software and

technology consulting market leader within

selected industries

Based on its strong foundation, with deep customer relations, distinct capabilities and leading software assets,

Tieto aims to strengthen its market leadership in the company’s core Nordic markets while driving selective

international expansion with selected software products.

The company is speeding up the execution of its strategy of becoming the European software and technology

consulting market leader within selected industries through the following priorities:

• Customer first: from product-driven to customer-centricity

• Simplified core: focused operations and driving reduced complexity

• Selective expansion: from strong Nordic roots to broader European growth

• Competitive cost base: driving a leaner, more competitive cost base.

Tieto aims to capture versatile market opportunities driven by AI, cloud and data through its business portfolio

comprising the vertical software businesses Tieto Banktech, Caretech and Indtech along with the consulting

business Tieto Tech Consulting.

Tieto Tech Consulting (Tietoevry Create) : focusing on AI, cloud and data expertise, and enterprise

applications – driving growth from deepening collaboration with strategic partners

Tieto Banktech (Tietoevry Banking) : driving European expansion with competitive fintech software-based

solutions proven in the Nordics

Tieto Caretech (Tietoevry Care): bringing proven and open modular data-driven care software and platform

to other European markets beyond the Nordics

Tieto Indtech (Tietoevry Industry) : expanding through scalable software in selected European markets based

on products with a strong position in the Nordics

These are run as four distinct businesses, but the company is leveraging its technology consulting services

through industry verticals with software solutions and associated services. With this approach, the company

will have a more coordinated approach towards customers to optimize and digitalize their core processes

Financial targets

Driven by the updated strategic ambition, the company introduced new long-term financial targets and capital

allocation principles for 2026–2028:

• Annual revenue growth ¹⁾ of over 5% (CAGR) in 2027–2028

• Adjusted²⁾ operating margin (EBITA) of over 16% by 2028

• Net debt/EBITDA below 2

• Dividend representing 60-80% of net profit³⁾

With excess capital, the company will carry out share buybacks or pay extraordinary dividends.

¹⁾ Mainly organic, adjusted for currency effects

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

³⁾ Adjusted for non-cash one-time items


TIETO − ANNUAL REPORT 2025	9

Financial performance


	1–12/2025	1–12/2024
Revenue, EUR million	1 852.3	1 879.5
Change, %	-1	0
Organic growth, %	-2	-1
Operating profit (EBIT), EUR million	75.2	142.3
Operating margin (EBIT), %	4.1	7.6
Adjusted operating profit (EBITA), EUR million	256.5	225.4
Adjusted operating margin (EBITA), %	13.8	12.0
EPS, EUR	0.22	0.59
Net cash flow from operations ¹⁾, EUR million	295.9	325.7
Capital expenditure, EUR million	55.9	54.3

Full-year revenue was down by 1% to EUR 1 852.3 (1 879.5 ) million. Revenue includes a positive impact of EUR

21.9 million, booked in the third quarter, from the court ruling related to deliveries in prior periods in Tieto

Banktech. Full-year operating profit (EBIT) amounted to EUR 75.2 ( 142.3 ) million, representing a margin of 4.1

( 7.6). Operating profit was impacted by EUR 82.9 million in non-cash impairment of capitalized development

costs, mainly in Tieto Banktech.

In addition to impairment charges, operating profit includes EUR -65.7 (-46.9 ) million in adjustment items.

Adjusted operating profit (EBITA) stood at EUR 256.5 ( 225.4 ) million, or 13.8% ( 12.0) of revenue. Margin

includes a negative impact of approximately 1.0 percentage points related to IFRS 5 for the Tech Services

divestment. Improvement was mainly driven by solid implementation of the company's cost optimization

programme. Further details on adjustment items are available in the Alternative Performance Measures

paragraph.

Depreciation and amortization amounted to EUR 90.8 (95.1) million, including EUR 35.2 ( 35.9) million in

depreciation of right-of-use assets and EUR 32.7 (36.2) million in amortization of acquisition-related intangible

assets. Net financial expenses stood at EUR 34.3 (45.0) million. Net interest expenses were EUR 30.1 (37.3)

million and net losses from foreign exchange transactions were EUR 1.1 (losses 2.5) million. Other financial

income and expenses amounted to EUR -3.0 ( -5.3) million.

Earnings per share (EPS) totalled EUR 0.22 (0.59). Adjusted earnings per share amounted to EUR 1.39 ( 1.15).

Investments

Capital expenditure totalled EUR 55.9 (54.3) million, mainly consisting of capitalized costs for the development

of software and investments in facilities. Capital expenditure represented 3.0% (2.9 ) of revenue.

Cash flow

Full-year net cash flow from operating activities for continuing and discontinued operations amounted to EUR

295.9 (325.7)¹⁾ million, including a decrease of EUR 13.5 (decrease of 26.4) million in net working capital.

¹⁾ 2025 includes cash flow from the discontinued operations for eight months whereas 2024 includes the discontinued operations for the full

year.

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, %
	1–12/2025	1–12/2024	Growth, %	Organic growth, %	1–12/2025	1–12/2024	1–12/2025	1–12/2024
Tieto Tech Consulting	789.2	836.9	-6	-5	94.1	100.1	11.9	12.0
Tieto Banktech	585.7	580.4	1	1	101.1	72.0	17.3	12.4
Tieto Caretech	232.7	231.3	1	-1	63.8	68.2	27.4	29.5
Tieto Indtech	270.1	263.7	2	1	40.1	39.4	14.9	15.0
Eliminations and non-allocated costs	-25.5	-32.9	—	—	-42.6	-54.4	—	—
Total	1 852.3	1 879.5	-1	-2	256.5	225.4	13.8	12.0


TIETO − ANNUAL REPORT 2025	10

Tieto Tech Consulting

Organic growth

-5%

Adjusted operating margin

11.9%

(12.0)

Profitability at the previous

year's level in a challenging

market

• Growth impacted by challenging market

conditions across geographies

• Profitability remained at the previous year’s

level due to delivery capacity management

and SG&A reductions – partly offset by

salary inflation

• Operating model renewed to increase

market focus and customer-centricity

• Several wins with new technologies and AI

embedded, maintaining order backlog

stability

• Divestment of Bekk Consulting AS in

Norway, closed on 2 February 2026

Freight transport information gate for

ASFINAG

EU regulation on electronic freight transport

information (eFTI) obliges member states to

connect private eFTI data platforms to state

authorities, allowing for real-time data sharing and

tracking of freight transport activities. In Austria,

Tieto is implementing and operating this eFTI gate

for ASFINAG. The contract covers the

implementation of the solution by 2027 and

lifecycle management over the following five years.

ASFINAG, a public limited company, is responsible

for the financing, planning, construction, operation

and toll collection of the Austrian highway and

expressway network.

Developing next-generation automotive

audio platform for a European Tier 1

supplier

A leading European Tier 1 supplier has chosen Tieto

Tech Consulting to support the development of a

next-generation automotive audio platform. This

engagement leverages advanced system-on-chip

(SoC) technology and integrates leading automotive

operating systems such as QNX and Android

Automotive. The objective is to develop modular

and generic audio solutions that can be easily

customized for future vehicle programmes across

major automotive manufacturers. This approach is

leading to reduced development costs and faster

time-to-market.


TIETO − ANNUAL REPORT 2025	11

Tieto Banktech

Organic growth

Adjusted operating margin

17.3%

(12.4)

Improved profitability – set to

drive European expansion

• Healthy growth in BaaS and Financial Crime

Prevention

• A court ruling related to delivery fees in

prior periods contributed EUR 22 million to

revenue in the third quarter

• In the second half, growth was impacted by

an expired margin-dilutive contract with a

negative impact of close to 2 pp. on annual

growth

• The year ended with a strong order backlog

– growth contribution starting mainly in

2027

• Profitability has improved mainly due to

cost optimization measures – also when

eliminating the positive contribution of the

court ruling effect

DNB extends partnership with Tieto

Banktech to modernize its payment

infrastructure

DNB and Tieto Banktech have signed a new

extended agreement to transition DNB’s domestic

payments from the current RBS infrastructure to the

unified Payment Initiation (PIN) platform. The

decision follows a thorough evaluation and an

ambition to simplify DNB’s payment infrastructure,

enabling greater economy of scale, standardization

and future-proofed relevant capabilities.

Customers will continue experiencing the same

availability, while DNB gains the ability to respond

faster to market needs and strengthen real-time

monitoring capabilities.

ATM SaaS agreement marking entry into

the German market

Tieto Banktech has signed a five-year SaaS

agreement with IC Cash Services, marking its entry

into Germany’s ATM market. The partnership

provides IC Cash with a fully regulatory-compliant,

private cloud-based ATM platform designed to

enhance security, scalability and operational

efficiency across its European network of 2 500

ATMs. By leveraging Tieto Baktech’s proven

multivendor approach and integrated operations

model, IC Cash Services gains a robust

technological foundation to reduce costs, simplify

cash handling, and support its expansion across

Germany and other European markets.


TIETO − ANNUAL REPORT 2025	12

Tieto Caretech

Organic growth

-1%

Adjusted operating margin

27.4%

(29.5)

International expansion

progressing –profitability

remained strong

• Healthy growth in Welfare – growth in

Healthcare impacted by lower public sector

demand in Finland and the decline of the

legacy product business

• In Finland, 16/21 wellbeing services

counties won – full growth contribution

starting in 2027

• International expansion progressing –

introducing Lifecare Clinical Applications to

Catalonia Health Region

• Strong profitability sustained by cost

optimization measures

Developing patient information system

with leading private healthcare service

providers in Finland

Tieto Caretech has entered into a partnership

agreement with Finland’s leading private healthcare

service providers Aava and Pikkujätti, Pihlajalinna,

Mehiläinen and Terveystalo where more than 50

000 professionals use the system across roughly 1

000 units. The aim of the agreement is to jointly

develop the entire DynamicHealth patient

information system to be even more customer-

centric. DynamicHealth is currently used by

approximately 60 Tieto Caretech customers. The

agreement is valid for three years with an option to

extend by another three years.

Tieto and NTT DATA sign a strategic

contract to co-develop Catalonia’s Open

Health Platform

Based on a strategic agreement, Tieto Caretech and

NTT DATA will jointly participate in the

development of Catalonia’s open health platform –

one of the core projects of the region’s Digital

Health Strategy 2024–2030. The project, based on

the openEHR standard, includes architectural

components, an application marketplace, and

platform services. The platform is designed to

support integrated, person-centred care by

automating routine tasks, enabling personalized

care, and leveraging health data for continuous

improvement of healthcare services. The aim is to

deliver interoperable electronic health record

solutions that improve patient outcomes and

streamline healthcare delivery. The partnership

reflects a shared commitment to openness,

innovation, and excellence in digital health and is

another significant step in the expansion into the

broader European healthcare market.


TIETO − ANNUAL REPORT 2025	13

Tieto Indtech

Organic growth

Adjusted operating margin

14.9%

(15.0)

Performance improved towards

the year end

• Healthy growth across business units,

except Pulp, Paper & Fibre in which the

market-driven decline continued

• Growth rates and order backlog improved

towards the year end

• Several new wins across geographies during

the year

• Healthy profitability driven by cost

optimization measures and stronger

business momentum

Helping Bank Norwegian enhance its leading position in secure digital invoicing

Tieto Indtech has entered into a strategic three-

year agreement with Bank Norwegian to deliver its

Multichannel services for enhanced and tailored

invoicing and payment integration. Tieto is

providing invoicing and payment integration

services in Norway, Sweden, Denmark and Finland,

as well as in Germany and Spain. This enables

seamless customer communication and integration

across diverse regulatory and customer

landscapes. The partnership strengthens Bank

Norwegian’s position as a leading provider of

secure digital services – and reinforces Tieto’s

position as a trusted digital partner in the financial

sector in the Nordics and beyond.

Kesko selects Tieto Indtech to drive supply

chain integration

Kesko, a leading player in Finland’s grocery,

building and technical as well as car trade sectors,

has entered into a strategic agreement with Tieto

Indtech for the provision of BIX Supply Chain

Messaging Services for business transactions with

customers and suppliers. These services unlock

and enable smarter stock level management,

ensuring supply chains operate with the speed,

agility, and reliability demanded by today’s market.

Effective from July 2025, the agreement spans all

Kesko business divisions in Finland, as well as

Onninen operations across the Nordics and Baltics,

and will remain in force until the end of 2031.


TIETO − ANNUAL REPORT 2025	14

The divestment of Tietoevry Tech Services was completed on 2 September 2025

Key figures are presented for continuing operations in 2025. Comparative information

for 2024 has been updated accordingly, except for return on capital employed


TIETO − ANNUAL REPORT 2025	15

Financial performance of discontinued operations

On 23 March, Tieto announced that it had entered into an agreement to divest its Tietoevry Tech Services

business. Starting from the first quarter of 2025, Tieto has presented its Tech Services business as a

discontinued operation. The divestment was concluded on 2 September.

Net loss of discontinued operations amounted to EUR -166.1 (-133.0) million. Net loss includes a non-cash

charge of EUR -108.4 million in impairment losses due to remeasurement (fair value less costs to sell). Fair

value less costs to sell of EUR 254 million used in the remeasurement includes a management estimate of earn-

outs of EUR 30 million. The earn-out estimate is updated at each reporting date.

The reclassification of cumulative foreign exchange losses from other comprehensive income as part of the net

result of the sale of Tietoevry Tech Services totalled EUR 91.6 million.

In connection with the criminal ransomware attack in one of Tietoevry Tech Services' data centres in Sweden

in 2024, the claims process is ongoing with the insurance provider and based on the current status, Tieto

recorded insurance compensation of EUR 7.0 million in December 2025 in the discontinued operation.

More details available in Discontinued operations.

Financial position at the end of the period

The equity ratio was 49.3% ( 43.1%). Gearing was 51.3% (67.2%). Interest-bearing net debt totalled EUR 555.5

(n/a) million, including EUR 630.2 (n/a) million in interest-bearing debt, EUR 75.4 (n/a) million in lease liabilities,

EUR 4.0 ( n/a) million in interest-bearing receivables and EUR 146.2 (n/a) million in cash and cash equivalents.

See Basis of preparation.

Interest-bearing long-term liabilities amounted to EUR 659.3 (n/a) million at the end of December. Long-term

liabilities include term loans of EUR 130 million and EUR 300 million maturing in 2027. Additionally, the

company's interest-bearing long-term liabilities comprise a term loan of EUR 174 million maturing in 2028, a

loan of EUR 13 million from the European Investment Bank and lease liabilities of EUR 43.0 million.

Interest-bearing short-term liabilities amounted to EUR 46.4 (n/a) million, mainly comprising lease liabilities.

Tieto's sustainability-linked revolving credit facility of EUR 250 million, maturing in 2029, was not in use at the

end of December. It is linked to selected sustainability targets of Tieto and hence supports the company’s

commitments to Science Based Targets.

Investments and development

Tieto's investments were focused on software development, with the highest levels in Tieto Banktech and

Tieto Caretech. Investments for facilities were somewhat down. In total, capital expenditure, mainly consisting

of capitalized costs for the development of software, remained at the previous year's level at EUR 55.9 (54.3)

million, representing 3.0% (2.9) of revenue.


TIETO − ANNUAL REPORT 2025	16

Order backlog

Tieto's order backlog amounted to EUR 2 180 (1 925 ) million at the end of December . Adjusted for the impact of

exchange rates, acquisitions and divestments, the order backlog was up by 13% from the corresponding

period of 2024 and by 7% from the level of the previous quarter. The order backlog includes all signed

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

based contracts.

Personnel

The number of employees, converted to full-time equivalent (FTE), amounted to 14 246 (15 867) at the end of

December. The number of full-time employees in the global competence centres totalled 7 338 (8 486 ), or

51.5% ( 53.5) of all personnel. The 12-month rolling voluntary employee turnover stood at 7.8% ( 7.9) at the end

of December . Tieto believes that a normal attrition level is 10–12%.

Salary inflation was around 4% in 2025. For 2026, the company estimates salary inflation to be 3-4% on

average. 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


	2025	2024	2023¹⁾
Number of full-time employees, 31 December	14 246	15 867	24 159
Average number of full-time employees	15 088	16 363	24 181
12-month rolling employee turnover, %	7.8	7.9	10.1
Employee benefit expenses, EUR million	1 065	1 086	1 566

1) 2023 not updated for the divestment of Tietoevry Tech Services

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

The function is led by the Head of HR, while the business HR leads are responsible for business-specific HR

operations and agendas. Tieto ensures that the company’s practices and employee experience improve in line

with market changes. The digital learning platforms and development frameworks are designed to be

accessible to all employees. In 2025, Tieto continued to prioritize training and skills development not only due

to the importance of continuous reskilling but also to ensure workforce sustainability and secure employment.

Diversity remains a material topic, reflecting its ongoing importance to the organization and its workforce. The

tech industry may face structural challenges in achieving gender equality and building diverse teams. In 2025,

Tieto continued to strengthen its commitment to gender equality and workforce diversity through targeted

actions and strategic enhancements. The company expanded its initiatives to ensure more inclusive practices

and measurable progress. Key actions during 2025 included improvements to HR Rules and employee

handbooks related to inclusive hiring and equitable career progression as well as mandatory trainings. More

information about the company’s sustainable practices and actions taken in 2025 is provided in the section S1

Own workforce in the Sustainability Statement.


TIETO − ANNUAL REPORT 2025	17

Performance in 2026

Market conditions have remained challenging in IT services and recovery is anticipated to remain modest in

2026. Tieto currently expects its organic growth to be in the range of -2% to 0% in 2026, assuming market

conditions similar to 2025. Phasing out legacy contracts in Tieto Banktech and Tieto Caretech is estimated to

have a negative impact on growth. Furthermore, the high comparison figure for the third quarter, attributable

to additional revenue arising from the court ruling related to deliveries in prior periods in Tieto Banktech, will

impact growth rates. The negative impact on Group-level annual growth will be around 3 percentage points. In

Tieto Banktech, the impact of the headwinds on annual growth will be around 7 percentage points and in Tieto

Caretech, around 5 percentage points.

Tieto expects the full-year adjusted operating profit margin to be 14.8%–15.8%. The improvement is mainly

attributable to a reset of the cost base, driven by cost optimization measures. The company estimates salary

inflation to be 3-4% on average for 2026. Tieto 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, cost optimization, further offshoring, automation,

management of the competence pyramid and overall efficiency across businesses.

Cost optimization programme

Tieto's cost optimization programme initiated during 2025, driven by reduction of both personnel and the

costs of external services and facilities, were targeting EUR 115 million in savings by the end of 2026. The

potential personnel reductions comprised both administrative work and delivery capacity. By the end of 2025,

the company achieved a total of EUR 95 million in run-rate savings. The target for run-rate savings by the end

of 2026 was uplifted to EUR 130 million.

In 2026, total one-time costs are expected to be around 1.5% of revenue, mainly related to further

simplification in Tech Consulting and the ongoing cost optimization programme.

Branches

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


TIETO − ANNUAL REPORT 2025	18

Shareholders' Meeting

The company's Annual General Meeting (AGM) held on 25 March approved the financial statements 2024 and

discharged the company's officers from liability for the financial year 2024. The meeting also approved the

Remuneration Report. The AGM decided to distribute a total amount of EUR 1.50 per share in two instalments

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.

Tomas Franzén, Bertil Carlsén, Elisabetta Castiglioni, Harri-Pekka Kaukonen, Gustav Moss and Petter

Söderström were re-elected as members of the Board of Directors. Nina Bjornstad and Marianne Dahl were

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

Board of Directors.

Shareholders' Nomination Board

The composition of the Shareholders’ Nomination Board for the company was determined based on holdings

on 29 August 2025 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 Mutual Pension Insurance Company

• Jukka Vähäpesola, Head of Equities, Elo Mutual Pension Insurance Company and

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


TIETO − ANNUAL REPORT 2025	19

The Board of Directors

Board of Directors at 31 December 2025 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
Nina Bjornstad ²⁾	1977	Norwegian, USA	BSc. (Finance and Econ.), MBA	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
Marianne Dahl²⁾	1974	Danish	MSc. (Econ. and Business Adm.)	Senior Advisor, Professional Board member
Gustav Moss	1988	Swedish	MSc. (Finance & Accounting)	Partner, Cevian Capital AB
Petter Söderström	1976	Finnish	MSc. (Econ.)	Investment Director, Solidium Oy
Tommy Sander Aldrin (personnel representative)³⁾	1965	Norwegian	BSc. (Comp.)	Chief Consultant
Ilpo Waljus (personnel representative)³⁾	1974	Finnish	BBA	Test Manager

¹⁾ Liselotte Hägertz Engstam and Katharina Mosheim served as Board members and Anders Palklint and Thomas Slettemoen as personnel representatives until the AGM on 25 March 2025.

²⁾ Board member as of the AGM on 25 March 2025

³⁾Board member (personnel representative) as of the AGM on 25 March 2025.


TIETO − ANNUAL REPORT 2025	20

The President and CEO and operative management

Members of the Group Executive Team¹⁾as at 31 December 2025

Endre Rangnes²⁾

President and CEO

Born: 1959

Gender: male

Nationality: Norwegian

Education: BBA

Joined Tieto in 2024

Mario Blazevic³⁾

Managing Director, Tieto Banktech

Born: 1975

Gender: male

Nationality: Norwegian

Education: MSc. (CS), MBA (INSEAD)

Joined Tieto in 2012

Oddgeir Hansen⁴⁾

Executive Project Lead

Born: 1953

Gender: male

Nationality: Norwegian

Education: Business School

Joined Tieto in 2025

Tomi Hyryläinen

Chief Financial Officer

Born: 1970

Nationality: Finnish

Gender: male

Education: MSc. (Econ.)

Joined Tieto in 2018

Pär Johansson⁵⁾

Managing Director, Tieto Tech Consulting

Born: 1970

Gender: male

Nationality: Swedish

Education: MSc. in Material Science

Joined Tieto in 2010

Ari Järvelä

Managing Director, Tieto Caretech

Born: 1969

Gender: male

Nationality: Finnish

Education: MSc. (Eng.)

Joined Tieto in 2001

Jacob Nestande⁶⁾

Head of Group Operations & Platforms

Born: 1986

Gender: male

Nationality: Norwegian

Education: MSc. (Econ)

Joined Tieto in 2016

Johan Enger Nygaard⁷⁾

Managing Director, Tieto Indtech

Born: 1967

Gender: male

Nationality: Norwegian

Education: EBP (INSEAD), Bachelor studies in economics

Joined Tieto in 2011

Jonna Peltola⁴⁾

Head of Communication and Brand

Born: 1976

Gender: female

Nationality: Finnish

Education: BBA

Joined Tieto in 2020

Trine Rønningen⁸⁾

Interim Group Head of HR

Born: 1975

Gender: female

Nationality: Norwegian

Education: MSc. (Econ. BA), Organisational Psychology

Joined Tieto in 2024

Jussi Tokola⁴⁾

Head of Group Legal

Born: 1978

Gender: male

Nationality: Finnish

Education: MSc. (Eng.), LL.M.

Joined Tieto in 2002

The remuneration and more detailed background information, such

as full CVs of the Group Management, are presented on the

company’s website.

¹⁾ Group Executive Management until 22 May 2025. Kishore Ghadiyaram served as Head

of Strategy until 22 May 2025 and Satu Kiiskinen as Managing Director, Tietoevry Tech

Services until 2 September 2025.

²⁾ Endre Rangnes was appointed President and CEO effective 22 July 2025. He served as

Interim President and CEO from 5 May to 22 July 2025. Prior to that, Kimmo Alkio held the

position of President and CEO.

³⁾ Mario Blazevic was appointed Managing Director of Tieto Banktech, effective 22 July

2025. He served as Interim Managing Director from 6 May to 22 July 2025. Prior to that,

Endre Rangnes held the position until 5 May 2025.

⁴⁾ New position as of 22 May 2025.

⁵⁾ Pär Johansson was appointed Interim Managing Director of Tieto Tech Consulting,

effective 22 July 2025. Cosimo de Carlo held the position until 22 July 2025.

⁶⁾ New position as of 1 December 2025.

⁷⁾ Johan Enger Nygaard was appointed Managing Director of Tieto Indtech, effective 22

July 2025. He served as Interim Managing Director from 19 June to 22 July 2025. Prior to

that, Carsten Henke held the position of Managing Director until 19 June 2025.

⁸⁾ Trine Rønningen was appointed Interim Head of HR, effective 1 September 2025. Trond

Vinje held the position of Head of HR until 31 August 2025.


TIETO − ANNUAL REPORT 2025	21

Auditors

The AGM 2025 elected the firm of authorized public accountants Deloitte Oy as the company’s auditor for the

financial year 2025. Deloitte Oy notified the company that Authorized Public Accountant Marika Nevalainen

acts as principal auditor. Furthermore, the meeting elected Deloitte Oy as the sustainability auditor for the

financial year 2025.

Auditing 2025

The AGM 2025 elected the firm of authorized public accountants Deloitte Oy as the company’s auditor for the

financial year 2025 . Deloitte Oy notified the company that Authorized Public Accountant Marika Nevalainen

acts as principal auditor.

In 2025 , Tieto Group paid the auditors a total of EUR 1.3 ( 1.6 ) million in audit fees, and a total of EUR 0.2 ( 0.7)

million for other services.

Major risks

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

compliance risks. In addition, Tieto 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.

Risk Categories

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.

People risks can be driven by Tieto'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.

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. data protection and privacy, anti-corruption, anti-bribery,

insider matters, sanctions and trade compliance), internal policies and rules or ethics and integrity.

Risk Types

Cybersecurity risks involve potential threats to Tieto’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 Tieto's financial performance and position in the short, medium, and

long term, as well as potential negative impacts on people and the planet. Tieto 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 sustainability risks are identified through the double materiality assessment and other sustainability due

diligence activities and are integrated into the overall risk framework. Detailed information about the

company's IROs, including management and performance in the 2025 financial year, is presented in Tieto’s

Sustainability Statement.

Health and safety risks involve potential threats to the wellbeing and safety of individuals within Tieto'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.


TIETO − ANNUAL REPORT 2025	22

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). Tieto’s major risks and the measures for their mitigation

are described below.

Market volatility

Fluctuations within core markets directly influence market conditions, contributing to volatility that may

adversely affect growth prospects. Changes in the economic environment and customer demand can affect

both business volumes and pricing, potentially leading to reduced revenue or slower-than-anticipated revenue

growth.

Tieto 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 price competition drive the development of the global delivery

model in the IT sector. Tieto’s presence as an IT service provider in the Nordics is based on its competencies

and the selection of partners.

Change and transformation

Tieto's strategy focuses on driving growth and customer value through specialization. The company will adapt

its value proposition to shifting markets, prioritizing cloud-native services, data and software engineering, and

scalable software businesses as the industry evolves around cloud technology.

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 Programme 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 Tieto’s operations and profitability. To mitigate risk and to diversify

business, and to strengthen its position amongst both current and new customers, the company serves

multiple industries and pursues new software, digital consulting, cloud solutions, and expanded R&D. An

industrialized and standardized way of providing services and solutions, employing automated processes,

improves competitiveness and reduces risk.

Service continuity

High availability of the services is the basis of trust among customers, stakeholders and society.

Service continuity disruptions may result from hardware or software failures, power outages, natural disasters,

data communication interruptions, or various intentional and unintentional human actions.

System malfunctions could disrupt Tieto’s services and negatively affect its finances and reputation.

Therefore, business continuity planning is a key part of operations to ensure adequate redundancy and fault

tolerance.

Tieto minimizes service continuity risk by regularly updating its IT asset, configuration, and monitoring

systems. The company maintains a balanced global portfolio, utilizes recovery and backup procedures for

service interruptions, and leverages root cause analysis and lessons learned from past incidents to strengthen

preparedness. A strong incident and crisis management process minimizes service interruptions.

Cybersecurity

Tieto processes and stores confidential data for public and private sector customers, business partners, and

its own operations, including sensitive personal information.

The threat landscape is constantly evolving, with risks from criminal hackers, hacktivists, human errors, human

misconduct, and state-sponsored groups. These threats can cause malfunctions or cybersecurity breaches

impacting Tieto, 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 Tieto’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.

Tieto has established a (major) incident and crisis management process, and cybersecurity defence measures

with detection and response capabilities to identify and investigate cybersecurity incidents and minimize

service interruptions.

The company regularly reviews its cybersecurity framework, trains employees on cyber threats, and monitors

its cybersecurity maturity.

Quality costs related to customer bidding and delivery management

Failing to accurately assess customers' changing needs, business processes, and specific requirements can

cause errors in project or service scope and make it difficult to meet customer agreements.


TIETO − ANNUAL REPORT 2025	23

Tieto designs and manages business processes from sales to delivery to ensure customer value and minimize

risk across contract lifecycles. Internal and external audits, along with KPIs and key controls, measure

operational quality and effectiveness. Additionally, customer feedback management is integral to maintaining

performance and quality assurance at both operational and strategic levels. Tieto 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. Tieto'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, Tieto 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, Tieto 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. Tieto also places a

significant emphasis on employer branding to enhance and sustain its image as an attractive employer both

internally and externally. For instance, Tieto 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 Tieto.

Tieto'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 Tieto Treasury Policy.

Currency risks

Tieto’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.

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

Interest rate risks

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

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

Tieto'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 Tieto’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. Tieto’s financial risks are described in full in the notes to the

consolidated financial statements.

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

Legal, regulatory and compliance risks

Tieto 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, artificial intelligence and cybersecurity regulations, 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.

Tieto functions as a data processor for customers and as a data controller for its employees’ personal data.

Should Tieto or its products or services fail to comply with the applicable 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. Tieto 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 data protection 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 Tieto’s internal services through clear rules and instructions.

Supply chain risk

Tieto’s ability to fulfil its customer obligations may be adversely affected should any key supplier or partner fail

to meet their commitments. Such scenarios can result in increased liabilities and could impact the company’s

profitability. To address these risks, Tieto implements rigorous partner contract management, proactively

negotiates contract renewals, and consistently evaluates partner delivery performance. Additionally, the

company prioritizes diversification of its business-critical suppliers to reduce dependency risk. By broadening

its supplier portfolio, Tieto enhances operational resilience and ensures continuity even if one supplier

experiences difficulties. Read more about how the company mitigates risks related to workers in the value

chain in the Sustainability Statement.

Global pandemic

While the immediate threat of a global pandemic has subsided, the possibility of future widespread health

crises remains a significant risk that can disrupt markets and company operations. The emergence of new

public health concerns underscores the importance of ongoing vigilance and adaptability in managing such

threats. Tieto continues to proactively identify, assess, and address risks that could have major financial,

operational, or reputational impacts in both the short and long term. Robust enterprise risk management, crisis

management, and business continuity planning are critical to mitigating the effects of potential pandemics on

the company's employees, portfolio, and customer relationships. Tieto adheres to country-specific

government and healthcare guidance to safeguard personal health and prevent the spread of current or future

pandemics.


TIETO − ANNUAL REPORT 2025	24

Geopolitical instability

Geopolitical instability might result in disruption in areas where Tieto 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. Furthermore, changes in tariffs, trade restrictions, or

similar regulatory uncertainties in various markets could influence Tieto’s supply chain, cost structure, and

ability to serve customers. Such shifts may require the company to adapt quickly to new trade policies or

economic sanctions, potentially increasing operational complexity and financial risk.

Climate change

Physical climate change impacts may create risks for both Tieto and its customers. Tieto aims to reduce its

carbon emissions, promote a circular economy, and improve energy efficiency within its operations. The

company's energy management strategy involves optimizing energy use in its facilities, transitioning to

renewable energy sources, and implementing energy-saving technologies.

The ability to mitigate the impacts and adapt to climate change is becoming an increasingly important factor

influencing customers’ decision-making. Tieto can support or has capabilities to support its clients in reducing

carbon emissions through advanced technology solutions, aiding their transition to a low-carbon and circular

economy. Read more about Tieto’s Climate Transition Plan in the Sustainability Statement.

Artificial Intelligence

Artificial Intelligence (AI), including Generative AI and machine learning, offers opportunities for support and

development but also poses risks such as privacy issues, fairness challenges, security threats, ethical

concerns, job displacement, and high energy use leading to carbon emissions. Tackling these issues is

essential for 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 adoption of AI in business presents several challenges. It requires a comprehensive approach that

includes talent acquisition, upskilling, and integrating AI into key operational processes. Addressing ethical

considerations is necessary to promote transparency, accountability, and alignment with societal norms. Risks

include potential bias in decision-making from data quality issues, misuse of AI technologies, and reduced

human oversight in important decisions. These factors highlight the need for ongoing monitoring and

adherence to regulations to minimize unintended impacts.

Tieto is committed to the responsible production and consumption of AI technologies as a cornerstone of its

sustainability strategy. To ensure ethical, secure, and sustainable AI deployment, the company has established

a comprehensive AI Policy and a set of AI Rules that guide the development and use of AI technologies across

all operations. These governance frameworks are designed to address critical issues such as fairness,

transparency, privacy, and accountability.

In preparation for the forthcoming EU AI Act and other relevant regulations, Tieto has proactively undertaken a

thorough risk assessment of all its AI-powered products and services. This process identifies, evaluates, and

mitigates potential risks associated with AI, including bias in algorithms, security vulnerabilities, and

unintended social or environmental impacts. Regular reviews and updates ensure ongoing compliance with

evolving legal requirements and industry standards.

By integrating AI in a responsible manner across its core processes and product lifecycle, Tieto drives

sustainable innovation and trust with customers and stakeholders. These efforts contribute to the company’s

broader sustainability goals, including responsible digital transformation and minimizing the environmental

footprint of advanced technologies. Read more under the entity-specific topic "AI" in the Sustainability

Statement.


TIETO − ANNUAL REPORT 2025	25

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. Tieto’s shares have no par value and their book

countervalue is one euro.

On 31 December, the number of shares totalled 118 640 150 . The company had 59 747 registered shareholders

at the end of 2025 based on the ownership records of the Finnish, Swedish and Norwegian central securities

depositories. Tieto received one flagging announcement during the year. On 25 November, Silchester

International Investors LLP announced that its holding had decreased to 17 754 841 shares, representing

14.97% of the total number of shares.

In March, the company acquired a total of 135 000 of its own shares in trading organized by Nasdaq Helsinki

Ltd. The average purchase price per share was EUR 17.5988. In April, a total of 156 667 treasury shares (0.13%

of the total number of shares) were assigned to key employees related to the company’s long-term incentive

plans. In June, Tieto purchased a total of 215 000 of its own shares at average purchase price of EUR 16.1445

per share.

At the end of the period, the company held a total of 238 572, representing 0.20% of the total number of

shares and voting rights. The number of outstanding shares, excluding the treasury shares, was 118 401 578.

The members of the Board of Directors, the President and CEO and their close associates together held 0.08%

of the shares and votes registered in the book-entry system on 31 December 2025. 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 Tieto 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

Tieto has the following active share-based incentive plans: a Performance Share Plan 2023, 2024 and 2025

and a Restricted Share Plan 2023, 2024 and 2025. The potential rewards will be paid partly in the company’s

shares and partly in cash in 2026, 2027 and 2028, 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 shares (including the proportion to be paid in cash). On

31 December, the value of granted and unvested share plans corresponded to 2 062 890 shares. The company

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

Board authorizations

The 2025 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.


TIETO − ANNUAL REPORT 2025	26


	2025	2024	2023	2022	2021
Number of shares
Number of shares	118 640 150	118 640 150	118 425 771	118 425 771	118 425 771
Outstanding shares
At year-end	118 401 578	118 594 911	118 391 092	118 413 303	118 418 184
Average	118 490 938	118 522 308	118 375 769	118 405 657	118 408 223

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, combined ¹⁾, EUR
Basic	-1.19	-0.53	1.45	1.59	2.46
Diluted	-1.18	-0.53	1.45	1.59	2.46
Earnings per share, continuing operations, EUR
Basic	0.22	0.59	n/a	n/a	n/a
Diluted	0.22	0.59	n/a	n/a	n/a
Equity per share, EUR	9.15	10.95	13.62	14.52	15.38

Share price performance and trading volumes
NASDAQ Helsinki
Highest price of share, EUR	19.98	22.34	30.58	27.94	30.46
Lowest price of share, EUR	14.45	16.37	19.16	21.06	25.42
Average price of share, EUR	16.82	18.78	24.77	24.86	27.26
Turnover, number of shares	71 517 039	62 977 285	56 862 211	62 036 948	78 772 407
Turnover, %	60.0	53.0	48.0	52.4	66.5

¹⁾ Continuing and discontinued operations combined.


	2025	2024	2023	2022	2021
Market capitalization, EUR million	2 171.1	2 019.3	2 550.9	3 140.7	3 254.3

Dividends ²⁾
Dividend, EUR 1 000	104 193	177 892	174 035	171 699	165 785
Dividend per share, EUR	0.88	1.50	1.47	1.45	1.40
Payout ratio, %	-74.2	-283.3	101.1	91.0	56.8

Price-weighted ratios
NASDAQ Helsinki
Price per earnings ratio (P/E)	-15	-32	15	17	11
Dividend yield, %	4.8	8.8	6.8	5.5	5.1

²⁾ For 2024, distribution of dividend and return of capital


TIETO − ANNUAL REPORT 2025	27

Major shareholders on 31 December 2025


	Shares	%
1 Silchester International Investors LLP ¹⁾	17 754 841	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	2 819 879	2.4
5 Elo Mutual Pension Insurance Company	1 585 000	1.3
6 The State Pension fund	1 500 000	1.3
7 Nordea Life Assurance Finland Ltd.	1 156 275	1.0
8 Evli Finnish Small Cap Fund	930 000	0.8
9 OP-Henkivakuutus Ltd.	842 776	0.7
10 Nordea Pro Finland Fund	581 697	0.5
Top 10 shareholders total	46 069 607	38.8
- of which nominee registered	23 796 062	20.1

Nominee registered other	38 341 023	32.3
Others	34 229 520	28.9
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 25 November 2025, Silchester International Investors LLP announced that its holding was 17 754 841 shares, representing 14.97% 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	28 301	49.0%	1 235 126	1.0%
101–1 000	24 607	42.6%	8 660 866	7.3%
1 001–10 000	4 610	8.0%	11 480 946	9.7%
10 001–100 000	250	0.4%	6 266 630	5.3%
100 001–1 000 000	36	0.1%	10 096 301	8.5%
1 000 001–	8	—%	80 900 281	68.2%

Based on the ownership records of Euroclear Finland Oy.


TIETO − ANNUAL REPORT 2025	28

Dividend

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 2025, a dividend in the total amount of EUR 0.88 per

share be paid from the distributable funds of the company in two instalments as follows:

• The first dividend instalment of EUR 0.44 per share in aggregate shall be paid to shareholders who on the

record date for the first dividend instalment on 26 March 2026 are registered in the shareholders’ register

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

Securities Oslo/Verdipapirsentralen ASA (VPS). For shareholders whose shares are registered with

Euroclear Finland Oy, the payment date is on 2 April 2026. Outside of Finland, the first instalment is paid to

shareholders in accordance with the practices of Euroclear Sweden AB and VPS, and may occur at a later

date.

• The second dividend instalment of EUR 0.44 per share in aggregate shall be paid to shareholders who on

the record date for the second dividend instalment on 23 September 2026 are registered in the

shareholders’ register maintained by Euroclear Finland Oy or the registers maintained by Euroclear Sweden

AB or Euronext Securities Oslo/Verdipapirsentralen ASA (VPS). For shareholders whose shares are

registered with Euroclear Finland Oy, the payment date is on 2 October 2026. Outside of Finland, the

second instalment is paid to shareholders in accordance with the practices of Euroclear Sweden AB and

VPS, and may occur at a later date. The Board of Directors also proposes that the Annual General Meeting

would authorize the Board of Directors to decide, if necessary, on a new record date and payment date for

the second dividend instalment, for example if the rules of Euroclear Finland Oy or statutes applicable to

the Finnish book-entry system change or otherwise so require.

Dividends payable to Euroclear Sweden-registered shares will be forwarded by Euroclear Sweden AB and paid

in Swedish crowns. Dividends payable to VPS-registered shares will be forwarded by Nordea Bank Plc's

branch in Norway and paid in Norwegian crowns.

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


TIETO − ANNUAL REPORT 2025	29

Events after the period

On 1 December 2025, Tieto announced an agreement to sell Bekk Consulting AS (Bekk) in Norway to private

equity firm Axcel for a cash- and debt-free purchase price (enterprise value) of NOK 1 700 million

(approximately EUR 150 million). Tieto completed the transaction on 2 February 2026.

On 9 January, Tieto announced that it has signed a definitive agreement with AFI Family Espana to acquire

OpenSpring and GrupoOnetec, businesses offering technology consulting and anti-money-laundering

services. The total revenue of the companies is approximately EUR 10 million.

The Board of Directors has resolved to commence a share buyback programme of EUR 150 million. The

purpose of the buyback programme is to maintain an efficient capital structure of the company in line with the

company's capital allocation principles. The purchases will commence from 13 February 2026 at the earliest

and end by 31 March 2027 at the latest.


TIETO − ANNUAL REPORT 2025	30

Full-year outlook for 2026

Tieto expects its organic ¹⁾ growth to be in the range of -2% to 0% (revenue in 2025: EUR 1 852.3 million). The

company estimates its full-year adjusted operating margin²⁾ (adjusted EBITA³⁾) to be 14.8–15.8% (13.8% in

2025).

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, goodwill and other intangible asset impairment

Financial calendar


24 March	Annual General Meeting

Tieto will publish three interim reports in 2026


29 April	Interim report 1/2026
22 July	Half-year report 2026
27 October	Interim report 3/2026


TIETO − ANNUAL REPORT 2025	31

Key figures

Calculation of key figures and alternative performance measures

Tieto 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.

Tieto 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 Tieto’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, impairment of goodwill and other intangible assets, and related tax impact per country
Adjusted earnings per share	=	Weighted average number of shares

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

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


TIETO − ANNUAL REPORT 2025	32

Adjusted operating profit (EBITA) by segment


EUR million	2025	2024	Change %
Tieto Tech Consulting	94.1	100.1	-6
Tieto Banktech	101.1	72.0	40
Tieto Caretech	63.8	68.2	-6
Tieto Indtech	40.1	39.4	2
Non-allocated costs	-42.6	-54.4	-22
Adjusted operating profit (EBITA)	256.5	225.4	14

Adjusted operating margin (EBITA) by segment


%	2025	2024	Change pp
Tieto Tech Consulting	11.9	12.0	-0
Tieto Banktech	17.3	12.4	5
Tieto Caretech	27.4	29.5	-2
Tieto Indtech	14.9	15.0	-0
Adjusted operating margin (EBITA)	13.8	12.0	2

Reconciliation of adjusted operating profit (EBITA)


EUR million	2025	2024
Operating profit (EBIT), continuing operations	75.2	142.3
+ Amortization of intangible assets recognized at fair value from acquisitions	32.7	36.2
+ Impairment losses on other intangible assets¹⁾	82.9	—
Adjustment items, continuing operations:
- Capital gains	-0.7	-4.3
+ Strategic reviews	0.1	7.5
+/- Other M&A related items	2.2	0.5
+ Restructuring costs	48.7	32.6
+ War in Ukraine	2.6	2.4
+/- Other items²⁾	12.8	8.4
Adjusted operating profit (EBITA), continuing operations	256.5	225.4

¹⁾For more information, see note 5.

²⁾Include costs due to a settlement with a supplier in Q1, right-of-use asset impairment losses (see also note 5) and other minor non-recurring

items.


TIETO − ANNUAL REPORT 2025	33

Sustainability

Statement

88%

Reduction in GHG emissions

in own operations (scope 1

& 2) since 2020

87%

People managers trained

in diversity, equity, and

inclusion

8.5/

Employee confidence in

speaking up about

unethical behaviour


TIETO − ANNUAL REPORT 2025	34

General

disclosures

Basis for preparation35

Governance36

Strategy 39

Material impacts, risks and opportunities

and their interaction with strategy and

business model49


TIETO − ANNUAL REPORT 2025	35

Basis for preparation

Basic information

The business of Tietoevry ("Tieto") encompasses software and digital engineering. 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, Tieto’s four 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 businesses are Tieto Tech Consulting, Tieto Banktech, Tieto Caretech and

Tieto Indtech, and they are supported by Group functions.

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

Tieto’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 2025.

Tieto’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. Tieto 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 2025 Sustainability Statement.

Disclosures in relation to specific circumstances (BP-2)

Time horizons

Tieto’s double materiality assessment has been carried out in accordance with the requirements of the

European Sustainability Reporting Standards (ESRS), in particular ESRS 1, which specifies the principles and

time horizons to be applied when determining material impacts, risks, and opportunities. The company is

adopting short-term (< 1 year), medium-term (1-5 years) and long-term (> 5 years) time horizons as of the

reporting period and as defined by ESRS.

In the assessment of climate-related impacts, risks, and opportunities, Tieto additionally applied the time horizons

defined in its analysis in line with the recommendations of the Task Force on Climate-related Financial Disclosures

(TCFD): short-term (0–2 years), medium-term (2–7 years), and long-term (7–30 years). This alignment ensures

consistency between the company’s climate-related assessments and its broader sustainability materiality analysis.

Value chain estimations

Tieto uses a spend-based greenhouse gas (GHG) emission methodology for calculating the scope 3 categories

purchased goods and services, capital goods, and upstream transportation and distribution. This approach utilizes

financial expenditure data combined with generalized emission factors, derived from the Exiobase database, rather than

supplier-specific emission data. Emissions from employee commuting are estimated based on employee surveys, with

extrapolations applied to ensure coverage across all relevant countries. A detailed description of the GHG emission

calculation methodologies, including the use of estimations for each category, is provided in Disclosure E1-6.

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 Tieto’s spend data.

The metric "number of cases where Tieto 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.

Tieto 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

Tieto announced the completion of the divestment of its Tech Services business on 2 September 2025. The

divestment has led to material changes related to total number of employees, revenue as well as energy and

carbon emission data. Explanations of the reasons for these changes, revised comparative figures as well as

the differences between the figures disclosed in the preceding period and the revised comparative figures are

found in connection to the impacted disclosures:

• ESRS 2, GOV-1 21 (d)

• ESRS 2, SBM-1 40 (a) iii

• ESRS 2, SBM-1 40 (b)

• ESRS E1-5 tables

• ESRS E1-6 tables

• ESRS S1-6 tables

• ESRS S1-9 tables

• ESRS S1-16 tables

• MDR-T for all material IROs

Information on new targets for the following topics are also included in the 2025 Sustainability Statement and

MDR-Ts are disclosed in the relevant topical standards:

• Climate change mitigation and Energy (E1)

• Training and skills development – own workforce (S1)

• Collective bargaining, freedom of association and social dialogue – own workforce (S1)

• Corporate culture and protection of whistleblowers (G1)

Disclosures stemming from other legislation or generally accepted sustainability reporting pronouncements

Tieto’s Sustainability Statement 2025 does not include disclosures stemming from other legislation or

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

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

information to the Annual Report".

Incorporation by reference

No information in the Sustainability Statement has been incorporated by reference.


TIETO − ANNUAL REPORT 2025	36

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 the Sustainability Statement. It is

also responsible for assessing the effectiveness of Tieto’s sustainability due diligence, evaluating associated

impacts, risks and opportunities (IROs) and approving material IROs, 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 Tieto’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 matters. Jointly, the Board as an entity possesses

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

well as Corporate Risk Management and Internal Audit.

During 2025, the Board addressed all of Tieto’s material impacts, risks and opportunities through a review of

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

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

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

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

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

30% were female and 70% male during 2025, with a gender diversity ratio of 43% (average ratio of female to

male Board members). The percentage of independent Board members was 80% at the end of 2025. Tieto

personnel elected two members and two deputy members of the Board. One deputy member is female and the

other members elected by personnel are male. The Board’s gender diversity ratio for 2024 has been restated

from 40% to 43% due to a change in the calculation methodology, applying the average ratio of female to male

Board members to ensure consistency with the approach used in 2025.

Board of Directors Structure


	2025	2024
Percentage of male board members	70%	70%
Percentage of female board members	30%	30%
Number of executive board members	2	2
Number of non-executive board members	8	8
Number of board members representing the employees	2	2
The board's gender diversity ratio ¹	43%	43%
Percentage of independent board members	80%	80%

¹Average ratio of female to male board members (F/M),%


TIETO − ANNUAL REPORT 2025	37

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. It 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 Tieto’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

The Shareholders' Nomination Board (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 represent

diverse occupational and professional backgrounds.

Chief Executive Officer and Group Executive Team

Tieto’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 their responsibilities in

compliance with legal and internal standards.

The CEO is assisted by the Group Executive Team (GET), which includes the Managing Directors of Tieto’s

businesses as well as the Chief Financial Officer (CFO), the Head of Human Resources, the Executive Project

Lead, the Head of Communications and Brand, the General Counsel, Head of Group Legal and Compliance, and

the Head of Group Operations & Platforms. Of the GET members, 18% of the members are female and 82%

male. The GET oversees the implementation of the approved sustainability measures and related impacts, risks

and opportunities.

Group Sustainability and the Sustainability Steering Group

Tieto’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. Tieto’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 Tieto’s businesses and

functions, as well as members of the GET. The SSG reviews and approves sustainability-related matters for

Group Sustainability to present to the Board as well as approves the company’s long-term sustainability plans

and related targets. Major strategic sustainability 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 reports regularly to the Board on Tieto’s due diligence, including its effectiveness and

performance against targets linked to the company’s material impacts, risks, and opportunities (IROs). Starting

from 2025, regular sustainability updates have also been added as a standing agenda item in the CEO’s

monthly review to the Board. This ensures that sustainability risks and opportunities are considered in a

broader business context and that strategic decisions reflect their long-term impact. Group Sustainability also

provides the Audit and Risk Committee (ARC) with continuous updates on risks and controls related to

sustainability reporting. Reports on whistleblowing cases are submitted to the ARC twice per year, with urgent

or critical matters escalated on an ad hoc basis.

In 2025, the Board received updates from Group Sustainability on two occasions, besides the monthly CEO

reviews. These updates included:

• Implications of the divestment of the Tech Services business on Tieto’s sustainability plan, reporting, and

organizational setup.

• Information about the revision of Tieto’s double materiality assessment and its result, including Board

approval of the process and outcome.

• Reviewal of sustainability due diligence activities related to Tieto’s material IROs, covering process

effectiveness, and performance against targets.

• Information about the company's target development process and new sustainability targets for the

following material IROs: Collective bargaining, Freedom of association and Social dialogue (own

workforce), Corporate culture and Protection of whistleblowers and Training and skills development (own

workforce).

The ARC received four updates from Group Sustainability during 2025, covering:

• Review of Tieto’s Sustainability Statement for the financial year 2024.

• Information about the revision of Tieto’s double materiality assessment and outcome.

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

• Review of the Sustainability Statement for the financial year 2025.

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

Tieto’s remuneration structure for the CEO and GET 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 is defined to reflect the market context, strategic objectives, business priorities and related financial

results. The LTI plan incorporates sustainability-related performance measures, such as targets for

greenhouse gas (GHG) emission reductions and gender diversity.

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

management and key employees, and offer a competitive total reward package. Tieto introduced ESG metrics

in the LTI plan in 2022, and has continued this practice since then while also increasing the weighting of

aggregated measures from 10% to 20% in 2023, maintaining a consistent split equally between two key

metrics: SBTi-approved scope 1 and 2 GHG emission reduction target and increasing the share of female

recruits.

Tieto’s original SBTi validated target for scope 1 and 2 emissions required a 90% reduction by 2026 from a

2020 baseline. As these SBTi validated targets currently extend only to 2026, the company needed an


TIETO − ANNUAL REPORT 2025	38

approach that would ensure continuity in target-setting for the 2025–2027 LTI plan. Since no externally

approved targets extended beyond 2026, the existing reduction trajectory was extended by one additional

year to cover 2027.

Due to planned organizational changes – particularly the divestment of Tech Services – the 2024 emissions

level was selected as the baseline for LTI purposes, providing the most accurate and meaningful reference

point. Importantly, the reduction trajectory itself did not change; only the baseline year used for performance

measurement was updated.

Applying the extended 2020–2026 trajectory to the new baseline initially resulted in a 40% reduction target

for scope 1 and 2 emissions by 2027 within the LTI plan. Following the Tech Services divestment and a

reassessment of future reduction pathways – moving from a highly ambitious to a more moderate trajectory –

the 2027 LTI target was subsequently revised to a 25% reduction from the 2024 baseline. This adjustment

maintains continuity in the LTI framework while ensuring that climate performance targets remain realistic,

transparent, and aligned with Tieto’s long-term decarbonization strategy.

The gender diversity target is designed to encourage annual growth in the proportion of female hires,

supporting Tieto’s broader commitment to gender balance and inclusion within its workforce. In 2025, the first

ESG-linked reward was delivered based on the LTI 2022–2024 plan. Performance against the ESG metrics was

as follows: the GHG reduction metric reached 147% of the set target, while the gender diversity metric

achieved 72% of its target. These outcomes indicate progress in both environmental and social dimensions,

though the degree of achievement varied between the two metrics.

The Board approves the annual implementation of the incentive plans, including the measures, targets, and

related terms and conditions. Following year-end, the Board reviews the performance against the approved

plans and authorizes payouts based on performance relative to plan and Tieto's overall performance.

Statement on due diligence (GOV-4)

Tieto conducts ongoing sustainability due diligence to assess IROs, aiming to mitigate harm and drive business

opportunities. The company tracks progress continuously and addresses any significant negative impacts

directly or collaboratively. Tieto prioritizes engagement with affected stakeholders, including vulnerable

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

Tieto’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)

Tieto’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 the CFO office 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 material

risks identified. This approach is consistent with Tieto’s internal controls framework. The main risks in Tieto’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. Tieto has included the capabilities required to produce the disclosed

information in the Group’s common business processes, which all the businesses and Group support functions

follow in their operations.

Responsibility for the accuracy of disclosed information, adherence to reporting schedules, and the provision

of materials to the reporting team is assigned to specific roles within the businesses and Group support

functions, as outlined in the company’s governance model. Internal and auditor insights from the first reporting

cycle according to CSRD/ESRS have guided targeted improvements, ensuring a stronger control environment

and supporting the continuous enhancement of reporting processes.

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.


TIETO − ANNUAL REPORT 2025	39

Strategy

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

Tieto’s strategy focuses on industry-specific software and technology consulting businesses to provide best-

in-class solutions to customers. The portfolio comprises the distinct software businesses Tieto Banktech, Tieto

Caretech and Tieto Indtech and the technology consulting business Tieto Tech Consulting. While each

business operates independently, the company also integrates its technology consulting services across

industry verticals through software solutions and associated services. These solutions are essential for

enhancing customers’ competitiveness and contributing to the functioning of society.

Building on its established foundation of strong customer relationships and specialized capabilities, Tieto aims

to reinforce its position in its core Nordic markets while pursuing selected international expansion through

selected software products. The company is accelerating the implementation of its strategy to become the

European software and technology consulting market leader within selected industries.

The businesses of Tieto are:

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

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

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

• Tieto Banktech: 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.

• Tieto Indtech: Software and data services that enable efficient citizen services, digital value chains and

production – all contributing to a well-functioning industry and society. Tieto’s specialized service

businesses support customers in driving competitiveness, efficiency and innovation.

• Tieto Tech Consulting is the consulting business at Tieto, which helps customers to advance their digital

products, provide superior experiences to their customers, and drive efficient operations by adopting the

latest technologies including cloud, data and AI.

The overarching purpose across all Tieto businesses is to deliver technology-led solutions that enhance

customers' competitiveness, efficiency and innovation across industries. Furthermore, the aim is to improve

the customer experience of the people and communities that our customers serve.

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

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

around 90 countries, with approximately 80% of its revenue coming from Finland, Sweden and Norway.

Tieto’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.

Disaggregation of revenue by segment


EUR million	2025	2024 Restated	2024
Tieto Tech Consulting	789.2	836.9	836.9
Tieto Banktech	585.7	580.4	580.4
Tieto Caretech	232.7	231.3	231.3
Tieto Indtech	270.1	263.7	263.7
Tech Services	—	—	1 000.7
Eliminations	-25.5	-32.9	-110.4
Group total	1 852.3	1 879.5	2 802.6

Headcount of employees per geographical area


Geographical area	2025	2024 Restated	2024
The Nordic countries	6 755	7 189	10 710
Europe other	4 699	5 611	7 930
Asia	3 320	3 703	5 218
North and South America	192	234	234
Total	14 966	16 737	24 092

Employee numbers in this sustainability statement are presented as headcount, whereas employee numbers in the financial statements are

presented as full-time equivalents (FTE)


TIETO − ANNUAL REPORT 2025	40


	TIETO’S VALUE CHAIN
	Upstream

	3rd party software providers

	Cloud, SaaS and AI technology providers

	Leased facilities

	Subcontractors

Value chain



	Own operations
Own people and assets
	Employees

Software

Intellectual property

Tools, processes and systems



	Downstream



Customers and society

Tieto’s value chain includes all activities involved in

delivering technology consulting services, industry-

specific software solutions and technology to

customers. This involves both upstream activities

(suppliers and partners) and downstream activities

(customers and end-users).

Tieto’s upstream value chain comprises the key inputs

and partnerships necessary to deliver its services. This

includes collaboration with cloud, software and AI

technology providers. As a knowledge-based

company, skilled employees and consultants also

represent critical upstream resources. Tieto 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.

Tieto’s downstream value chain is centred on

delivering software products, platform-based solutions

and technology consulting services to its customers

and end-users. Tieto offers industry-specific software,

custom solutions, data management, software product

development and consulting services to enhance

customer operations and to support customers’

business agenda and performance. Tieto plays a key


Own operations

Software: Sales and product management – System architecture – Software design, development and testing – Software release – Customer deployment – Customer support.



Services: Customer engagement and solution sales – Solution design – Solution development/engineering – Solution delivery/deployment – Customer support.

role in enabling digital transformation and delivering

tangible benefits for its customers.

The company’s downstream offerings include

software and related services, technology advisory,

data, AI, software engineering and application

services. The company connects upstream technology

suppliers – such as cloud, AI and software providers –

with the customers/industries it serves. Acting as both

an integrator and an innovator, Tieto utilizes upstream

technologies in its software, system integration, and

consulting and managed services solutions for its

downstream customers.


TIETO − ANNUAL REPORT 2025	41

Inputs

Tieto’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, technology consulting, system integration, managed services, cloud, data/AI, software

development and cybersecurity. Moreover, Tieto draws on cloud technologies and infrastructure services

from key suppliers. 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 Tieto to stay at

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

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

To secure and develop these inputs, Tieto 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.

Tieto prioritizes sustainable sourcing by partnering with suppliers that share the company's sustainability

objectives and align with its sustainability goals. Furthermore, the company drives innovation through

investments 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. Tieto

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

Tieto’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 can be supported in their sustainability efforts with software that

optimizes core processes and solutions that support their overall business agenda, with sustainability

embedded.

For investors, Tieto’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, Tieto’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 Tieto’s employees are centred around professional development,

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

based company, Tieto’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 value for employees is diversity and inclusion. By fostering an inclusive culture, Tieto 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.

Tieto’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 contributing to global climate-mitigation efforts

through enhanced energy efficient operations and the use of renewable energy sources.

Tieto interacts with regulators, particularly regarding data privacy, cybersecurity and sustainability regulation.

The company ensures compliance with regulation 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

Through the application of technology, transparent sustainability reporting, and responsible digital

transformation, Tieto seeks to address material sustainability challenges and contribute to long-term value

creation for its stakeholders. The following section provides an overview of sustainability-related aspects of

Tieto’s operations, including key challenges and the company’s responses to them.

Tieto is committed to reducing its carbon footprint through energy efficiency, renewable energy and digital

solutions. The environmental strategy aims to minimize emissions across its operations and the value chain

through energy efficiency, renewable energy use, and supplier engagement. The company is committed to

providing employees with modern and resource-efficient office facilities that support environmental

ambitions. This includes optimizing energy performance with renewable electricity, improving building

efficiency, and selecting office locations with high environmental standards and sustainable mobility options.

To further reduce value chain emissions, Tieto collaborates with suppliers to align with its net-zero ambition by

encouraging the adoption of Science-Based Targets (SBTs). This engagement aims to enhance transparency,

improve data quality, and identify shared opportunities for emission reductions. Verified SBTs are strongly

encouraged, and climate-related targets and performance are integrated into supplier selection criteria —

favouring partners that demonstrate a commitment to emissions reduction.

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 as

well as the EU Pay Transparency Directive – are central in Tieto’s performance and in maintaining stakeholder

trust.

Tieto places a strong emphasis on diversity, equity, and inclusion (DEI) across its workforce and aims to

promote digital inclusion through its products and services in the communities it serves. Attracting diverse

talent and fostering an inclusive culture in a rapidly evolving industry facing talent shortages remain key

challenges. To address these, Tieto invests in employee development programmes and supports diversity and

inclusion initiatives within the societies where it 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.


TIETO − ANNUAL REPORT 2025	42

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

relationships with stakeholders

Tieto's four 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, Tieto has previously initiated work to identify and

describe its sustainability-related offerings. While no comprehensive assessment of products, services, or

markets in relation to sustainability-related goals has yet been completed, the company recognizes the

importance of understanding how its portfolio contributes to sustainability outcomes. During 2026, Tieto plans

to strengthen this understanding through two main initiatives: first, by including a question in the annual

employee survey to capture perceptions of how products and services contribute positively to society; and

second, by developing a Group-wide catalogue, in collaboration with business areas, to identify offerings with

a sustainability angle. These activities are expected to provide a more systematic basis for assessing the

alignment of the company’s offerings with its sustainability goals and identifying areas for future development.


TIETO − ANNUAL REPORT 2025	43

Interests and views of stakeholders (SBM-2)

The company aims to develop its operations, products, and services in a manner that supports innovation,

sustainability, regulatory compliance, and long-term stakeholder value creation. Through ongoing engagement

and open dialogue, Tieto identifies and responds to the evolving expectations, impacts, and needs of its

stakeholders.

Tieto’s stakeholder engagement activities encompass a broad range of groups that are directly or indirectly

affected by, or have an interest in, the company's operations and disclosures under the Sustainability

Statement. These include 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 Tieto’s operations and activities.

Oversight of sustainability and ESG matters rests with the Board of Directors, while Group Sustainability – in

collaboration with relevant business functions – manages and coordinates sustainability-related stakeholder

engagement and ensures alignment with the company’s material impacts, risks, and opportunities.

Outcome

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

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

offering feedback on the company's overall business performance. Tieto has continued to develop processes

across the company with a view to understanding and taking action on employee feedback and upskilling its

workforce through continued development of its global learning platform as well as targeted upskilling and

development initiatives in the respective businesses. Also, union and workers council dialogues are continuing,

securing employee representation in matters concerning development of the business and organization.

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, Tieto provides regular updates on its overall business performance, objectives and key initiatives. In

2025 the company conducted an investor survey, using the feedback to further improve transparency in

communications. 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, Tieto has refined its digital outreach and incorporated innovative technologies into its recruitment

processes.

Tieto 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. Progress towards these objectives is regularly reviewed to ensure value creation and

meaningful benefits for all stakeholders.

Tieto'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 Tieto'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 Tieto’s key stakeholders, purpose and channels of engagement, and

value created.

Interests and views of stakeholders


Stakeholder	Purpose of engagement	Channels of engagement	Value created
Employees and other personnel	To build a motivating, inclusive and safe workplace, supporting competence development. Engagement is essential for retaining talent and ensuring high performance.	Annual employee engagement and pulse surveys, leadership dialogues, performance and development discussions, competence- building programmes and diversity & inclusion initiatives. Collaborations with work councils and unions (European Work Council and other local collaborations).	A committed and skilled workforce, enhanced employee experience and retention. We foster a company culture that supports collaboration, open dialogue, innovation and sustainable performance.
Customers and end-users	To ensure that Tieto’s services and solutions meet evolving needs, support customers’ digital transformation and long-term competitiveness, while building trust and satisfaction.	Customer satisfaction surveys, continuous dialogue and joint planning sessions, co-innovation initiatives, customer newsletters, seminars and workshops.	Long-term customer relationships and mutual growth driven by co- innovation and continuous improvements. Fostering a customer- centric culture and the delivery of secure, innovative and high-quality digital solutions aligned with customer needs and expectations.
Suppliers and business partners	To ensure responsible sourcing, supply chain resilience, quality and compliance, and fostering innovation through collaboration.	Supplier Code of Conduct, sustainability assessments, audits, and ongoing collaboration through sourcing and partnership processes. This includes regular meetings with commercial and technical perspectives, as well as identifying and engaging with emerging partners and ecosystems.	Stronger partnerships, shared innovation opportunities and increased resilience. Strengthened supplier relationships based on shared values, improved transparency and accountability in the supply chain.
Investors, shareholders and analysts	To secure transparent and relevant communication on strategy, financial performance, governance, risk management and sustainability progress.	Regular financial and sustainability reporting, investor meetings and presentations, and close interaction with shareholders in connection with the Annual General Meeting. Furthermore, a Capital Markets Day was arranged in 2025.	Transparent and consistent communication on financial performance, future opportunities and risks, strategy and ambitions. This fosters investor confidence, fair company valuation and recognition as a sustainable and responsible business.
Potential employees and students	To build attractiveness as an employer, securing future competencies and positioning Tieto as an inclusive and innovative workplace. To expand knowledge on career opportunities, the company culture and an inclusive recruitment process.	Employer branding activities such as recruitment events and social media engagement. Thesis collaborations, internships and graduate programmes. Strategic and local partnerships.	An enhanced employer brand and stronger talent pipeline, attracting a range of diverse and skilled candidates and opening up for academic partnerships.


TIETO − ANNUAL REPORT 2025	44

Material impacts, risks and opportunities

and their interaction with strategy and

business model (SBM-3)

Tieto's material impacts, risks and opportunities

(IRO) have been assessed throughout the

company's value chain – from own operations to

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. Negative

impacts are typically found upstream or within

Tieto’s own operations, while positive impacts tend

to occur downstream and in own operations. The

company’s material impacts, risks, and

opportunities do not currently influence its

strategy. Most of these arise from Tieto’s core

business model, which centres on digital services

and cloud-based offerings. While they have not yet

necessitated strategic changes, the company

acknowledges that actively monitoring and

managing its material topics is essential for long-

term sustainability performance and for aligning

future strategic priorities.

Tieto's material IROs are to a large extent consistent

with those identified during the double materiality

assessment. However, Circular economy and

Collective bargaining and Freedom of association for

workers in the value chain are no longer material to

Tieto, while Training and skills development and

Privacy for its own workforce were concluded to be

material in the last assessment. In addition, some IROs

was assessed to be material from a different and/or

other perspective as a result of the double materiality

assessment in 2025. IRO characteristics are

elaborated on in the respective topical standard.

Diversity – workers in the value chain was identified as

a material topic in Tieto’s 2023 double materiality

assessment; however, it was not included in the

published report that year. In 2025, Diversity remains a

material topic, reflecting its ongoing importance to the

organization and its workforce.


TIETO’S MATERIAL IMPACTS, RISKS AND OPPORTUNITIES (IROs)

Material from impact perspective		• Collective bargaining, freedom of association, social dialogue, own workforce (actual negative) • Work–life balance and working time, own workforce (actual positive) • Secure employment, own workforce (actual positive) • Corporate culture (actual positive) • Protection of whistleblowers (actual positive) • Prevention and detection of corruption and bribery (actual positive) • Diversity and gender equality and equal pay for equal value – workers in the value chain (potential negative)	• Energy (actual negative, potential positive, risk) • Climate change mitigation (actual negative, risk) • Gender equality and equal pay for work of equal value – own workforce (actual negative, risk, opportunity) • Diversity – own workforce (actual negative, opportunity) • Training and skills development – own workforce (actual positive, opportunity) • Corruption and bribery incidents (potential negative, risk) • Privacy for customers and end-users and own workforce (actual positive, potential negative, risk) • AI (potential positive, potential negative, opportunity, risk) • Cybersecurity (potential negative, risk, opportunity)

Not material from impact perspective		• Pollution (7 subtopics) • Water and marine resources (5 sub-subtopics) • Biodiversity and ecosystems (3 subtopics) • Affected communities (11 sub-subtopics) • Own workforce (7 sub-subtopics) • Workers in the value chain (16 sub-subtopics) • Consumers and end-users (8 sub-subtopics) • Business conduct (3 subtopics)	• Climate change adaptation (risk)

	Not material from financial perspective		Material from financial perspective
The double materiality assessment results for the Group have been calculated using a revenue-weighted approach (FY2024 across all businesses and topics). Thresholds have been set separately for each (actual positive/actual negative, potential positive/negative, risks and opportunities) and those have been applied for the aggregated results.


TIETO − ANNUAL REPORT 2025	45

Impact materiality


Source	Topic		Positive or negative	Place in value chain	Time horizon
ESRS E1	Climate change Mitigation	Emissions from own operations and suppliers contribute to climate change.	Negative (actual)	Entire value chain	Short-, medium-, long-term
	Climate change Energy	Growing digital demand drives energy use in own operations and supplier infrastructure, reinforcing negative climate impact through high consumption of energy and escalating greenhouse gas emissions.	Negative (actual)	Entire value chain	Short-, medium-, long-term
	Climate change Ene rgy	Digital solutions can help customers and industries lower energy consumption, promoting efficiency and supporting the transition to sustainable energy across sectors.	Positive (potential)	Own operations, downstream	Short, medium-term
ESRS S1	Own workforce Working conditions Secure employment	Tieto supports secure employment by offering stable, long-term jobs, primarily through permanent and full-time contracts. As a major employer, the company contributes to workforce stability in its operating regions.	Positive (actual)	Own operations	Short-, medium-term
	Own workforce Working conditions Working time	Balanced working hours support employee health, well-being, and sustainable productivity. Tieto promotes healthy working time through initiatives that reduce excessive overtime and support employee well-being.	Positive (actual)	Own operations	Short-, medium-term
	Own workforce Working conditions Work-life balance	Flexible working conditions, including remote work and adaptable hours, enhance work-life balance and support employee well-being and caregiving responsibilities.	Positive (actual)	Own operations	Short-, medium-term
	Own workforce Working conditions Freedom of association Collective bargaining Social dialogue	Operations across multiple countries with different labour laws, regulations and practices expose employees to barriers to forming or joining unions or other kinds of engagement bodies.	Negative (actual)	Own operations	Short-term
	Own workforce Equal treatment and opportunities for all Gender equality & equal pay	The tech industry, including Tieto, faces structural challenges in achieving gender equality, which can affect equal pay for work of equal value and contribute to underrepresentation in general, particularly in leadership positions.	Negative (actual)	Own operations	Short, medium-term
	Own workforce Equal treatment and opportunities for all Training and skills development	Reskilling and upskilling initiatives significantly enhance employees’ long-term employability, ensuring career security and resilience. By fostering adaptability to evolving market demands, these activities reduce the risk of job displacement and strengthen organizational agility.	Positive (actual)	Own operations	Short, medium-term
	Own workforce Equal treatment and opportunities for all Diversity*	The tech industry, including Tieto, faces structural challenges in building diverse teams. Limited diversity contributes to unequal access to opportunities and reinforces societal exclusion, particularly for underrepresented groups.	Negative (actual)	Own operations	Short, medium-term
	Own workforce Other work-related rights Privacy	By ensuring responsible handling of personal data, the company helps build trust and safeguard the rights of employees.	Positive (actual)	Own operations	Short-term
	Own workforce Other work-related rights Privacy	Tieto’s processing of personal data carries risks that, if realized through a breach, could negatively impact individuals’ rights to privacy and ultimately their well-being.	Negative (potential)	Own operations	Short-term


TIETO − ANNUAL REPORT 2025	46


Source	Topic		Positive or negative	Place in value chain	Time horizon
ESRS S2	Workers in the value chain Equal treatment and opportunities for all Gender equality & equal pay	In the IT services supply chain, limited gender diversity and lack of transparency around equal pay may lead to unequal employment practices and reinforce structural inequalities.	Negative (potential)	Upstream	Short-, medium-term
	Workers in the value chain Equal treatment and opportunities for all Diversity*	Lack of diversity in the supply chain may result in unequal treatment and limited opportunities for underrepresented groups, reinforcing social exclusion.	Negative (potential)	Upstream	Short-, medium-term
ESRS S4	Consumers & end-users Information-related impacts Privacy	By ensuring responsible handling of personal data, the company helps build trust and safeguard the rights of consumers and end-users.	Positive (actual)	Downstream	Short-, medium-, long-term
	Consumers & end-users Information-related impacts Privacy	Processing of personal data carries risks that, if realized through a breach, could negatively impact individuals’ privacy, rights, and well-being.	Negative (potential)	Downstream	Short-term
ESRS G1	Business conduct Corporate culture	Tieto’s strong commitment to ethical values shapes a corporate culture rooted in trust, respect, and collaboration. This culture enhances employee wellbeing, strengthens engagement, and builds loyalty and trust among customers and business partners.	Positive (actual)	Own operations	Medium-term
	Business conduct Protection of whistle-blowers	Protecting whistle-blowers strengthens integrity and transparency, creating a safe environment for reporting concerns and fostering a strong ethical culture across our operations, value chain and society.	Positive (actual)	Entire value chain	Short-term
	Business conduct Corruption and bribery Prevention and detection of corruption and bribery (including training)	Effective prevention of corruption and bribery supports integrity and fairness, strengthening stakeholder confidence and contributing to a transparent business environment. These measures help prevent corruption and its negative impacts on people and society.	Positive (actual)	Entire value chain	Short-, medium-term
	Business conduct Corruption and bribery Incidents	As a company with global presence and offerings, Tieto is exposed to corruption and bribery risks. Such incidents may harm communities and individuals, undermining trust in legal systems and institutions and ultimately the rule of law.	Negative (potential)	Entire value chain	Medium-term
Entity specific	Cybersecurity	Cyber risks, including data breaches, malware attacks, and system disruptions, can compromise data integrity and disrupt service continuity, potentially affecting both individuals and society.	Negative (potential)	Entire value chain	Short-term, medium-term
	AI	AI use can introduce bias, discrimination and privacy risks, while automation may displace jobs and cause social disruption. Training AI models consumes large amounts of energy and water, driving carbon emissions and resource depletion.	Negative (potential)	Entire value chain	Medium-term, long-term
	AI	Responsible development and deployment of AI technologies promote fairness, accountability and trust, leading to socially beneficial outcomes for users and society.	Positive (potential)	Own operations, downstream	Medium-term, long-term

*This IRO was unintentionally omitted from the 2024 IRO table, even though it was determined to be material in that period. The omission is immaterial as the relevant disclosures related to sub-topic Equal treatment and opportunities for all were provided in the 2024 report.


TIETO − ANNUAL REPORT 2025	47

Financial materiality


Source	Topic	Description	Risk or opportunity	Place in the value chain	Time horizon
ESRS E1	Climate change mitigation	Exposure to energy price volatility, carbon credit costs, regulatory changes and supply chain disruptions related to climate change may increase operational expenses and affect business performance.	Risk	Entire value chain	Long-term
	Climate change adaptation	The transition to a low-carbon economy is likely to increase costs for renewable energy and the purchase of carbon credits. Climate-related supply chain disruptions and the need for resilient operations pose risks to service continuity and cost stability.	Risk	Entire value chain	Long-term
	Energy	Rising energy costs, energy price volatility and supply chain disruptions linked to energy use may impact financial performance across the value chain.	Risk	Entire value chain	Long-term
ESRS S1	Own workforce Equal treatment and opportunities for all Gender equality & equal pay	Promoting equality enhances innovation, talent attraction, and company reputation. Underrepresentation of women and potential pay gaps pose financial risks, including salary adjustments and possible regulatory fines	Opportunity and risk	Own operations	Short-, medium-term
	Own workforce Equal treatment and opportunities for all Training and skills development	Investing in employee training, upskilling, and reskilling enhances workforce productivity, drives innovation, and improves retention. These outcomes strengthen business growth, reduce recruitment costs, and support long-term financial performance.	Opportunity	Own operations	Short-term
	Own workforce Equal treatment and opportunities for all Diversity	Fostering a diverse workforce and an inclusive culture drives innovation, improves well- being and supports sustainable performance and employer attractiveness.	Opportunity	Own operations	Short-term
	Own workforce Other work-related rights Privacy	Non-compliance with data privacy regulations or cybersecurity breaches could lead to significant financial consequences, including regulatory fines, legal costs, and reputational damage, ultimately affecting operational costs, customer trust, and business performance.	Risk	Own operations	Short-term
ESRS S4	Consumers & end-users Information-related impacts Privacy	Non-compliance with data privacy regulations or cybersecurity breaches across the value chain could lead to regulatory fines, legal costs, reputational damage, and loss of customer trust, ultimately impacting revenue and business performance.	Risk	Downstream	Short-term
ESRS G1	Business conduct Corruption and bribery Incidents	Corruption events across the value chain could trigger legal and financial consequences, harming business integrity.	Risk	Entire value chain	Short -term
Entity-specific	Cybersecurity	Strong cybersecurity and data protection measures build customer trust and support business growth. Data breaches or non-compliance with privacy laws may lead to fines, reputational harm, and customer trust erosion.	Opportunity and risk	Own operations	Short-term
Entity-specific	AI	Ethical AI solutions improve efficiency and address societal challenges, attracting clients and enhancing competitiveness. Non-compliance with AI regulations may result in financial penalties, legal exposure, and reputational risks.	Opportunity and risk	Own operations	Medium-term

Resilience in strategy and business model to address material impacts, risks and opportunities

Tieto’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.

Sustainability is embedded in Tieto’s business operations, with established practices in place to mitigate and

manage material risks and impacts. The company continuously adapts to evolving sustainability regulations

and stakeholder expectations, further refining its ways of working and strengthening responsible business

conduct. Following the divestment of the Tech Services business, Tieto has continued to improve the

management of its material impacts, risks, and opportunities into its operational framework and ways of

working. Although Tieto no longer operates its own data centres, the company addresses indirect impacts and

dependencies across digital infrastructure. Management of the company’s material IROs and its capacity to

address them are outlined in the respective topical standards.


TIETO − ANNUAL REPORT 2025	48

Current and anticipated effects on business model, value chain and strategy

Tieto’s response to the material Impacts, risks and opportunities has led to several considerations in its

business model and strategy:

• Sustainability embedded into operations: The company has integrated sustainability 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.

• Net zero emissions full value chain: Tieto is committed to achieving net zero emissions across its value

chain by reducing its carbon footprint and promoting energy-efficient digital solutions. The company

focuses on minimizing the environmental impact of its services by partnering with cloud and data centre

providers that use renewable energy and by continuously optimizing its own operational energy

performance. As demand for digital services grows, Tieto works to balance business expansion with

sustainability by advancing low-carbon technologies, engaging suppliers on climate performance, and

supporting customers on their own decarbonization journeys.

• Investments in innovation: The company continuously invests into developing new products and services.

Due to their technology intensity, these services can potentially support the sustainability 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, Tieto plans to continue to adapt to global and regional 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

During the reporting period, Tieto’s material risks and opportunities did not have a material effect on the

company’s financial position, financial performance, or cash flows. The most notable financial effects relate to

opportunities tied to sustainability initiatives, such as renewable energy, supplier engagement for emissions

reduction, and AI and cybersecurity measures. Similarly, while the company continues to monitor and manage

risks relating to climate change, privacy, cybersecurity and AI, the costs associated with these risk mitigation

activities are embedded in day-to-day operations and are not considered material in the context of the

Group’s overall financial results.


TIETO − ANNUAL REPORT 2025	49

Impact, risk and opportunity management

Description of the process to identify and assess material impacts, risks and opportunities

(IRO-1)

To identify and evaluate Tieto’s material impacts, risks, and opportunities (IROs), a double materiality

assessment was conducted for the first time in 2023. This assessment formed the foundation and defined the

reporting scope of the FY2024 Sustainability Statement. It was updated in spring 2025, primarily following the

announced divestment of the Tech Services business on 23 March, which was concluded on 2 September

2025. The revision also takes into account whether there have been significant changes to the company’s

operations or external environment to ensure that the assessment remains relevant.

The 2025 revision of the double materiality assessment built upon the findings of the initial assessment

conducted in 2023. The methodology remained largely consistent, beginning with a comprehensive mapping

of Tieto’s value chain, including its activities, business relationships, and affected stakeholders. This was

complemented by a contextual analysis covering industry trends, relevant sustainability frameworks,

legislative developments, and peer benchmarking. The process also incorporated key inputs such as Tieto’s

analyses based on the Task Force on Climate-related Financial Disclosures (TCFD) and Taskforce on Nature-

related Financial Disclosures (TNFD), and performance data on previously established targets and metrics,

including the latest carbon dioxide equivalent (CO₂e) emissions figures.

Additional sources included human rights risk assessments, diversity metrics, employee survey results, and

ESG risks captured through Tieto’s governance, risk, and compliance (GRC) platform. The 2025 double

materiality assessment continued to cover Tieto’s full value chain, including all employees and workers.

Consultation with internal and external stakeholders was also carried out, including subject matter experts

from the company’s group functions, such as representatives from Sourcing, Group Privacy, Facility, Security,

HR and Legal . A key focus of the update was to evaluate the implications of the announced divestment of the

Tech Services business, as well as to identify any other events that could influence the company’s material

IROs.

As in 2023, the assessment was conducted at Group level, with input gathered separately from each of Tieto’s

four businesses. Each business assessed every ESRS sub-subtopic from both an impact and financial

materiality perspective. The process involved representatives from functions within the businesses including

Business Development and Strategy, Human Resources, Finance, Legal, and Risk.

In contrast to 2023, this year’s assessment involved a more granular evaluation of both impact and financial

materiality at the sub-subtopic level, resulting in the identification of additional topics for consideration. As

disclosed under BP-2, Time Horizons, the 2023 assessment applied a single time horizon of 0–5 years across

all topics. In the 2025 assessment, the time horizons defined in ESRS 1 were adopted, enabling a more

differentiated evaluation across short-, medium-, and long-term perspectives.

Several of Tieto’s material IROs are governed centrally through shared policies, processes, tools, and

monitoring, which limits the ability of individual businesses to fully validate these topics independently. To

address this, the 2025 assessment placed greater emphasis on integrating insights from Group-level experts –

both before and after the business-led evaluations.

When assessing impact materiality, the process evaluates 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 is based on severity; for potential negatives, both severity and likelihood are

considered. Actual positive impacts are evaluated by scale and scope, including likelihood of future benefits.

Financial materiality is assessed in terms of potential financial impacts, such as changes in assets and/or

liabilities, changes in profit or loss, and company reputation, along with likelihood.

In 2025, Tieto conducted a comprehensive review of its scoring system for the double materiality assessment.

The evaluation focused on the criteria and scales used to assess topics from an impact perspective, in line with

ESRS 1 and 2 guidance – covering severity, likelihood, and remediability. No changes were made to the scoring

parameters, which continued to align with ESRS and the European Financial Reporting Advisory Group

(EFRAG) guidance. For impacts classified as "actual", likelihood is automatically set to the highest level.

Financial materiality criteria were also revisited. In collaboration with the Group Risk Management team,

quantitative thresholds were developed to ensure consistency with Tieto’s broader Corporate Risk

Management processes.

Additionally, the materiality thresholds established in 2023 were reviewed through a sensitivity analysis,

confirming their continued relevance and applicability. As a result, no changes were deemed necessary.

However, in consultation with IRO Owners and Managers, certain topics that did not meet the thresholds

based solely on the business assessments were still included, as they were considered material to Tieto.

Conversely, some topics that exceeded the thresholds were excluded following the same dialogue, as they

were regarded as not material. As in 2023, separate thresholds were applied across the different IRO types –

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.

As a part of the process of identifying and assessing impacts, risks and opportunities, Tieto has actively

considered dependencies and interdependencies. Each business is asked to reflect on these when evaluating

ESRS topics from both impact and financial perspectives, making it a core element of the double materiality

assessment. In addition, Group-level analysis identified key activities and areas in the value chain where Tieto

relies on natural or social capital. This mapping helped link impacts and dependencies to potential financial

and reputational risks and opportunities. For example, the company’s reliance on a skilled workforce

underscores how employment practices affect talent retention and innovation potential. Promoting diversity

and inclusion is seen as a way to mitigate talent shortages and unlock new opportunities. Tieto’s approach to

dependencies is iterative and adaptive, allowing the company to refine its understanding as new insights

emerge and the business context evolves.

Tieto 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. 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.


TIETO − ANNUAL REPORT 2025	50

Internal controls and subject-matter verification, supported by stakeholder engagement, ensure reliability in

Tieto’s sustainability reporting. The result of the company’s double materiality assessment was reviewed by

the ARC and formally approved by the Board in September 2025.

To maintain alignment with evolving sustainability practices and standards, Tieto is committed to revising the

double materiality assessment regularly to ensure it remains relevant and accurate, with the next evaluation

scheduled for Q2 2026.

Description of the processes to identify and assess material climate-related impacts, risks and opportunities

(E1)

In the process of identifying Tieto’s material climate-related impacts, risks and opportunities, the company

considered its impacts on climate change from its GHG emissions. The main emissions related to the

company’s own operations include energy consumption in offices. In the upstream value chain, most of the

emissions are generated from purchased goods and services, business travel and upstream transportation and

distribution. Climate-related physical risks in own operations and along the upstream and downstream value

chain were also considered during the process, using input from Tieto’s resilience analysis as part of the

company’s TCFD analysis carried out during 2022-2023. TCFD analysis will be conducted during 2026. 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 Tieto 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 Tieto, 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 Tieto.

The risks and opportunities have been assessed through Tieto’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 Tieto’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 Tieto 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. Climate-

related hazards have been identified over short-, medium- and long-term time horizons. The projections

forecast climate risks up to 2050 and 2080, guiding the company’s long-term strategy for resilience. Tieto uses

the same information and assumptions, including climate-related assumptions, as a basis for the preparation

of its consolidated financial statements and Sustainability Statement. Tieto 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 ensure compatibility with the transition to climate-neutral economy is disclosed

in E1 – Climate change.

Description of the processes to identify and assess material pollution-related impacts, risks and

opportunities (E2)

Tieto’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 Tieto’s

operations. However, Pollution of air was evaluated as a potential material topic related to the value chain,

primarily due to diesel use for backup generators and testing in data centres, as well as other 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 was

concluded to be not material. Water pollution was also assessed due to hardware usage by employees and at

the data centres of the company's suppliers. 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 in the value chain, it was not classified as material. Tieto 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. Tieto 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.

Description of the processes to identify and assess material water and marine resources-related impacts,

risks and opportunities (E3)

Tieto 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 and

primarily associated with employee use in office facilities. 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-intensive nature of these operations. Tieto is mitigating any potential negative impact on water and

marine resources in its value chain through contractual relationships, by requiring contracted suppliers to

accept Tieto’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. Tieto has consulted internal

stakeholders from relevant areas linked to activities relevant for water and marine resources impacts, risks

and opportunities. These stakeholders include sourcing partners responsible for assets as well as facility and

environmental experts.


TIETO − ANNUAL REPORT 2025	51

Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks

and opportunities (E4)

In 2025, Tieto conducted an analysis based on the Taskforce on Nature-related Financial Disclosures (TNFD)

framework, applying its LEAP process to identify, assess, and manage nature-related dependencies, impacts,

risks, and opportunities. The LEAP approach provides a structured four-phase methodology – Locate,

Evaluate, Assess, and Prepare – to support systematic integration of nature-related considerations into

strategy, risk management, and reporting.

Identification of nature-related exposure and key locations

In alignment with the LEAP approach, Tieto assessed and prioritized nature-related issues across its sector,

value chain, and geographic footprint. Leveraging tools such as ENCORE Nature, the SBTi Materiality Screening

Tool, the SBTi High Impact Commodity List, CDP Water Impact Index, and the WWF Biodiversity Risk Filter, the

company identified the parts of its operations and value chain with the greatest potential dependencies and

impacts on nature.

According to the ENCORE tool, the company’s programming, consultancy, and related activities have generally

low ecosystem dependencies and impacts, except for moderate effects related to land use and potential

disturbances from data center operations.

Across Tieto's value chain, sectors with high biodiversity and nature impacts include metals and mining,

transportation, telecommunications, energy production, construction, and electronics manufacturing. Key

materials such as copper, gold, lithium, and cobalt exert significant pressures through land use change, water

and soil pollution, and greenhouse gas emissions.

To identify sensitive or priority sites, all Tieto locations were screened using the Integrated Biodiversity

Assessment Tool (IBAT). The analysis found that out of a total of 112 sites at the time, 41 sites (37%) are located

within or near Key Biodiversity Areas (KBAs), and 11 of these (27%) lie within one kilometre of a protected area

or KBA while four sites (10%) are situated within or directly adjacent to protected areas; however, these are

primarily office facilities in urban environments, with limited direct impact on natural habitats.

Impacts and dependencies across operations and value chain

Tieto assessed its main dependencies and impacts on nature across direct operations and the value chain,

focusing on energy, water, and material use, as well as pollution, land use change, and emissions. A scoring

approach (1–5) was applied to classify the materiality of supplier spending and the severity of nature impacts.

The analysis found that Tieto’s direct operations have limited influence on biodiversity, with key dependencies

related to energy consumption, land for offices, and ecosystem services such as air quality, water supply, and

energy efficiency. Within the value chain, hardware, connectivity, and business travel were identified as the

supplier categories with the highest potential nature impacts, primarily due to resource extraction, energy use,

and emissions. Emerging technologies such as artificial intelligence were also recognized for their potential to

increase energy demand and related environmental impacts.

Nature-related risks and opportunities

For Tieto, the most significant biodiversity-related risks are concentrated in the upstream value chain. Physical

risks stem from ecosystem degradation and loss of natural protection, which may increase exposure to

extreme weather events and affect the availability of critical raw materials. Transitional risks include evolving

biodiversity regulations, stricter environmental requirements, and rising stakeholder expectations, potentially

leading to higher procurement, compliance, and reporting costs. Reputational risks may also arise from

associations with unsustainable practices such as deforestation or pollution within supply chains.

On the opportunity side, digitalization enables solutions that support biodiversity monitoring, resource

efficiency, and innovation. Tieto has explored biodiversity-related offerings, including sensor technologies, AI,

and cloud-based solutions. While biodiversity has not been assessed as a material topic for Tieto, related risks

are managed through supplier engagement, sourcing policies, and due diligence processes that integrate

environmental and biodiversity considerations.

Context, limitations and next steps

As Tieto’s operations focus on technology consulting and software development, most nature-related

dependencies and impacts occur within the value chain rather than in direct operations. These relate mainly to

software vendors, cloud providers, and hardware manufacturers with their own environmental footprints and

supply chain complexities. However, the location-specific nature of biodiversity and ecosystem impacts, as

highlighted by the TNFD’s LEAP approach, presents challenges. Limited visibility into the geographic origins of

digital services and hardware components, particularly in cloud computing, restricts the ability to assess and

manage nature-related impacts with full accuracy.

Tieto will continue to develop the understanding of nature-related impacts and dependencies as the maturity

in this area rises. This can include mapping material flows which can support more informed decision-making

and nature-positive efforts going forward.

Disclosure Requirements in ESRS covered by the undertaking’s Sustainability Statement

(IRO-2)

The material impacts, risks and opportunities disclosed are the outcome of Tieto’s double materiality

assessment conducted during 2025. The assessment covered all sustainability matters included in the topical

ESRS (ESRS 1 AR16) and entity-specific topics, of which cybersecurity and AI were confirmed to remain

material for Tieto.

Thresholds for negative and positive impacts, risks and opportunities in line with EFRAG guidelines were

applied using a Group-level weighting system that considers the aspects of Tieto’s four businesses.

The disclosure requirements applied to all of Tieto’s material IROs are listed in the Appendix to the

Sustainability Statement – Disclosure of list of ESRS Disclosure Requirements complied with in preparing

Sustainability Statement following outcome of materiality assessment (ESRS 2 IRO-2) under each topical

standard. For Tieto’s entity-specific topics SBM-3, MDR-P, MDR-A, MDR-T and MDR-M have been disclosed in

the statement.


TIETO − ANNUAL REPORT 2025	52

Environment

EU Taxonomy reporting53

E1 – Climate change59


TIETO − ANNUAL REPORT 2025	53

EU Taxonomy reporting

The EU Taxonomy, established by Regulation (EU) 2020/852, provides a classification system for economic

activities considered environmentally sustainable. Its purpose is to support the redirection of financial flows

towards green investments that contribute to the EU's environmental objectives.

An economic activity is considered taxonomy-eligible if it falls within the scope defined by the EU Taxonomy as

potentially environmentally sustainable. Eligible activities are listed in the Environmental or Climate Delegated

Regulations, and are therefore recognized as relevant to the EU’s environmental objectives. An activity is

deemed taxonomy-aligned when it not only qualifies as eligible, but also meets the specific technical criteria

set out in the EU Taxonomy. These criteria include that an activity must make a "substantial contribution" to at

least one of the EU's environmental objectives, and also does not cause "significant harm" to any of the other

five objectives. Furthermore, the company should comply with the Minimum Safeguards.

Tieto continues to assess its business activities and assets against the EU Taxonomy Regulation and the

relevant Delegated Acts, taking into account the guidelines issued by the European Commission. Subject-

matter experts with knowledge of each offering within the respective businesses are involved in the

assessment, supported by Group Sustainability in the interpretation of the economic activity description and

the technical screening criteria. Additionally, Minimum Safeguards are evaluated at Group level.

Following the divestment of the Tech Services business, Tieto's share of taxonomy-eligible revenue, capital

expenditure and operational expenditure has decreased significantly. The company no longer owns or

operates data centres, which previously accounted for the largest share of eligible revenue under activity CCM

8.1 "Data processing and hosting and related activities". As a result, there is no remaining eligible revenue,

capital expenditure or operational expenditure associated with this activity within the current Group structure.

This represents a substantial shift in Tieto’s taxonomy metrics compared to previous years. Most of Tieto’s

current offerings therefore remain outside the scope of the EU Taxonomy. To ensure comparability with the

current Group structure, figures for 2024 have been restated to reflect the divestment. The restated 2024

figures, together with the 2025 results, are presented in the tables below for each KPI.

Looking ahead, the future scope of the EU Taxonomy remains uncertain. Earlier discussions at EU level

included potential expansion of the Taxonomy to cover additional sectors and economic activities, which

could have been beneficial for Tieto as more of the company's offerings could have been recognized within

the listed economic activities. However, recent regulatory developments indicate a shift in focus towards

simplification and reducing complexity rather than expansion.

Tieto continues to closely monitor regulatory development and discussions related to the EU Taxonomy to

ensure continued compliance. The company remains committed to providing transparent and relevant

information to the users of the Sustainability Statement as the framework continues to evolve.


TIETO − ANNUAL REPORT 2025	54

Proportion of turnover (revenue) from products or services associated with taxonomy-aligned economic activities

Financial year 2025

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 or

eligible

Turnover,

year 2024

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

6.7

0.4%

N/EL

0.4%

Turnover of environmentally sustainable activities (Taxonomy-

aligned) (A.1)

6.7

0.4%

—%

0.4%

Of which Enabling

6.7

0.4%

—%

0.4%

Of which Transitional

0.0

—%

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

EL; N/

Provision of IT/OT data-driven solutions and software

CE4.1

0.0

—%

N/EL

0.02%

Turnover of Taxonomy-eligible but not environmentally

sustainable activities (not Taxonomy-aligned activities) (A.2)

0.0

—%

0.02%

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

6.7

0.4%

—%

0.4%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Turnover of Taxonomy-non-eligible activities

1 845.6

100%

Total

1 852.3

100%

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


TIETO − ANNUAL REPORT 2025	55

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

Financial year 2025

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 or

eligible

CapEx, year

2024

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

0.0

—%

N/EL

Capex of environmentally sustainable activities

(taxonomy-aligned (A.1)

0.0

—%

of which Enabling

0.0

—%

of which Transitional

0.0

—%

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

EL; N/

Acquisition and ownership of buildings

CCM7.7

10.7

15%

N/EL

33%

Transport by motorbikes, passenger cars and light

commercial vehicles

CCM6.5

5.6

N/EL

Provision of IT/OT data-driven solutions and software

CE4.1

0.0

0.0%

N/EL

0.3%

CapEx of Taxonomy-eligible but not environmentally

sustainable activities (not Taxonomy-aligned activities) (A.2)

16.3

23%

—%

40%

A. CapEx of Taxonomy-eligible activities (A.1 + A.2)

16.3

23%

—%

41%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Capex of taxonomy-non-eligible activities

55.9

77%

Total

72.2

100%


TIETO − ANNUAL REPORT 2025	56

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

Financial year 2025

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 or

eligible

OpEx, year

2024

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

0.4

0.5%

N/EL

OpEx of environmentally sustainable activities

(Taxonomy-aligned) (A.1)

0.4

0.5%

—%

Of which Enabling

0.4

0.5%

—%

Of which Transitional

0.0

—%

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

EL; N/

Acquisition and ownership of buildings

CCM7.7

2.3

N/EL

Provision of IT/OT data-driven solutions and software

CE4.1

0.0

—%

N/EL

0.1%

OpEx of Taxonomy-eligible but not environmentally

sustainable activities (not Taxonomy-aligned activities) (A.2)

2.3

—%

A. OpEx of Taxonomy-eligible activities (A.1 + A.2)

2.7

—%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

OpEx of Taxonomy-non-eligible activities

90.1

97%

Total

92.8

100%


TIETO − ANNUAL REPORT 2025	57

Revenue

Taxonomy-eligible revenue for the year amounted to EUR 6.7 million, representing 0.4% of total Group

revenue. The majority of eligible revenue relates to offerings that support the transition to a circular economy,

such as IT/OT data-driven solutions and software (activity CE4.1).

While several of the company’s offerings contribute positively to environmental sustainability and are closely

linked to the economic activity CCM8.2 "Data-driven solutions for GHG emissions reductions" under the

objective "Climate change mitigation", the related revenue is not deemed eligible. This is because greenhouse

gas emission reduction is not the predominant aim of these offerings as described in the economic activity.

Beyond the environmental objectives "Climate change mitigation" and "The transition to circular economy",

Tieto does not report any eligible revenue or investments for offerings contributing to other objectives.

Taxonomy-aligned revenue for 2025 amounted to EUR 6.7 million, corresponding to 0.4% of total revenue.

This reflects only those offerings that meet the technical screening criteria and Minimum Safeguards under the

EU Taxonomy. The alignment relates exclusively to software solutions that enable circular economy outcomes.

Capital expenditure

Total capital expenditure for 2025 amounted to EUR 72.2 million. Of this amount, EUR 16.3 million,

corresponding to 23% of total capital expenditure, was identified as taxonomy-eligible. Investments focused

on the development of software solutions and digital platforms that contribute to environmental objectives. No

capital expenditure was reported for data centre infrastructure or related assets, as these were part of the

divested business.

Out of the eligible capital expenditure, no expenses came from the category a) investments in assets or

processes related to taxonomy-eligible or taxonomy-aligned economic activities. EUR 16.3 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. Tieto 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 assessment against the technical screening criteria, the company identified no aligned capital

expenditure.

Operating expenditure

Operating expenditure, as defined by the EU Taxonomy, amounted to EUR 92.8 million for 2025. Of this

amount, EUR 2.7 million, corresponding to 3% of total operating expenditure, was identified as taxonomy-

eligible. The eligible operating expenditure primarily relates to research and development activities for

software and digital solutions that support environmental objectives. Maintenance and short-term lease costs

are included only for assets and activities that fall within the scope of the Taxonomy.

Out of the taxonomy-eligible operating expenditure, a total of EUR 0.4 million was related to offering and

internal development, and was therefore classified under the category a) expenditure related to assets or

processes associated with taxonomy-eligible or taxonomy-aligned economic activities. A further EUR 2.3

million corresponded to expenditures related to maintenance of premises and short-term leases, which

corresponds to the category c) purchases of output from taxonomy-aligned economic activities. Tieto 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 0.4 million, corresponding to 0.5%, as

taxonomy-aligned operating expenditure. This relates to development expenditures for offerings classified

under 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. Tieto’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 Tieto 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.

Tieto’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


TIETO − ANNUAL REPORT 2025	58

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

Tieto conducts an annual Group-level assessment to ensure compliance with the EU Taxonomy's Minimum

Safeguards, confirming that its activities align with the UN Guiding Principles for Business and Human Rights

(UNGPs), OECD Guidelines for Multinational Enterprises, and the CSRD. The process evaluates the adequacy of

due diligence practices and their implementation across the company.

The assessment is based primarily on the "Final Report on Minimum Safeguards" published by the Platform on

Sustainable Finance (PSF) in October 2022. In December 2024, the European Commission published updated

FAQ guidance, reaffirming the requirement to apply the most recent OECD Guidelines along with the UNGPs in

the interpretation of Minimum Safeguards, in conjunction with existing guidance from the PSF Final Report and

the June 2023 Commission Notice. As no additional regulatory updates or guidance have been issued since

then, Tieto's compliance assessment framework remains current and aligned with EU Taxonomy requirements.

The company's assessment follows a structured methodology with questions centred on the four core areas of

the Minimum Safeguards: human rights, anti-corruption, fair competition, and taxation. The process includes

cross-functional involvement and consultation with relevant stakeholders, including the Group Compliance

Officer, Head of Group Tax, and Senior Sustainability Manager responsible for human rights, to ensure

alignment with the relevant principles and guidelines.

The company continues to further strengthen its corporate-wide due diligence measures, with particular

emphasis on human rights and corruption-related risks. Activities in 2025 included initiating measures to

address gaps identified in the Group-wide anti-corruption assessment conducted in 2024, as well as

performing a gap analysis of Tieto’s practices against the requirements of the forthcoming Corporate

Sustainability Due Diligence Directive. The implementation of these activities demonstrates that Tieto meets

the requirements for compliance with Minimum Safeguards.


TIETO − ANNUAL REPORT 2025	59

E1 – Climate change

Strategy

Transition plan for climate change mitigation (E1-1)

Tieto’s climate transition plan (CTP) sets out the company's strategic roadmap for reducing its greenhouse gas

emissions and aligning its operations with a low-carbon and climate-resilient economy. The plan presents the

company's ambition to achieve net zero in its own operations and throughout its value chain by 2040. It

defines emission reduction targets, actions, and timelines to achieve net-zero emissions, as well as

measurable milestones and governance mechanisms to support this objective.

The CTP aligns with the Paris Agreement objectives, the EU Green Deal, and the requirements of the Corporate

Sustainability Reporting Directive (CSRD). It also incorporates the recommendations of the Taskforce on

Climate-related Financial Disclosures (TCFD) and follows the methodologies of the Science Based Targets

initiative (SBTi).

Emissions profile

Tieto’s greenhouse gas (GHG) emissions related to own operations are primarily generated from energy

consumption in office facilities. The largest share of Tieto’s total GHG emissions occurs in its upstream value

chain, mainly from purchased goods and services, upstream transportation, business travel and employee

commuting.

Targets and alignment with SBTi

Previous SBTi validated targets: Tieto set its first near-term science-based GHG emission reduction targets

covering all scopes in 2022, and these were approved by SBTi in the same year. The SBTi validation confirmed

that the company’s scope 1 and 2 targets are in line with a 1.5°C trajectory. These initial targets were set

through 2026, except for the company’s business travel target, for which the target year was extended to

2030. The targets were developed in accordance with the SBTi’s guidelines version 4.2.

Since 2020 Tieto has achieved good progress towards these targets. In 2024 the company reported the

following results (including the Tech Services business): 87% reduction in scope 1 and 2 (target 90% by 2026),

99% share of renewable electricity (target 100% by 2026) and 46% of suppliers had set science-based climate

targets (target 70% by 2026). During 2024 Tieto made a public commitment to the SBTi to set a net-zero target

within the following two years.

For further details, see section E1-4 – Targets related to climate change mitigation and adaptation and the

table Targets for 2025 related to Climate change mitigation, adaptation and Energy.

Current SBTi validated targets: In 2025 the Tech Services business was divested and excluded from the Tieto

Group’s carbon accounting. After the divestment Tieto applied for new science-based GHG emission reduction

targets covering near-term, long-term and net-zero commitments from the SBTi. The revised targets are

absolute GHG emission reduction targets covering all scopes 1, 2 and 3. The target year for near-term targets is

2034, and the long-term and net-zero target year is 2040. The baseline for the scope 1 and 2 targets is 2022

and for the scope 3 target it is 2024. All reduction targets have been validated and approved by the Science

Based Targets initiative (SBTi) and are aligned with limiting global warming to 1.5°C. These targets are

consistent with achieving climate neutrality, with a net-zero ambition set for 2040, in accordance with the

latest climate science and recognized methodologies. The targets and overall Climate Transition plan are

internally approved by Tieto’s Sustainability steering group and the CEO.

For further details, see section E1-4 – Targets related to climate change mitigation and adaptation and the

table Targets for 2026 onwards related to Climate change mitigation.

Governance, risk management and integration into strategy

Climate-related risks and opportunities are integrated into the company’s existing corporate risk management

framework, and are assessed, monitored and governed using the same processes applied to other strategic

and operational risks. Identified risks and opportunities are subject to regular review by management and the

Board. This ensures that climate-related drivers, such as regulatory changes, carbon pricing, physical impacts,

and market shifts, are systematically evaluated and incorporated into decision-making.

The CTP aims to integrate climate-related risks and opportunities into the business strategy, investment

decisions, and operational planning. It combines operational, infrastructure-related and value chain initiatives

aiming to support alignment with the company’s net-zero ambition and the latest climate science.

Key decarbonization levers

The company is transitioning to 100% renewable energy sources across its operations, achieved through

procuring renewable energy for heating and cooling as well as sourcing certified renewable electricity (RECs/

GoOs). Energy-efficiency measures in buildings are continuously improved to further support emission

reductions.

In parallel, Tieto promotes the preferential use of energy-efficient devices and the optimization of IT

equipment, while also strengthening circular economy practices. Additional actions include the electrification

of the vehicle fleet, the mitigation of business travel emissions by promoting remote working, virtual

collaboration tools, and improved travel guidelines.

Tieto also actively collaborates with suppliers to enhance emissions transparency and performance, with a

particular focus on suppliers with the most significant contribution to the company’s footprint. Key measures

include engaging suppliers to align with our climate ambitions and encouraging them to adopt net-zero targets.

Since 2024, supplier selection includes criteria to prioritize partners that demonstrate clear commitments to

reducing their CO₂ footprint.

Use of carbon removals

For residual emissions that remain after all feasible reduction measures have been implemented, Tieto plans to

use credible and high-quality carbon removal credits. These credits are intended to address residual emissions

and complement, not replace, direct emission reduction efforts within the company’s net-zero transition plan.

Locked-in emissions and constraints

Tieto’s locked-in GHG emissions primarily originate from energy-intensive infrastructure and activities within

its value chain. A significant share of locked-in emissions relates to third-party data centres and cloud service

providers, which typically have long asset lifespans and high electricity demand. The continued reliance of

some providers on carbon-intensive electricity grids, the use of diesel-based backup generation, and

refrigerants in cooling systems contribute to long-term, hard-to-abate emissions. Additional locked-in

emissions stem from facility infrastructure in regions where energy systems remain heavily dependent on

fossil fuels, and from the production of ICT equipment such as smartphones, laptops, and servers. These

upstream emissions are driven by energy-intensive extraction and processing of raw materials and

manufacturing processes.


TIETO − ANNUAL REPORT 2025	60

Tieto seeks to mitigate these emissions by progressively transitioning its operations towards more sustainable

solutions and investing in upgrades where feasible. Achieving meaningful reductions in locked-in emissions

will require a strategic shift in supplier selection and continued development of the supplier base to ensure

alignment with Tieto’s 2040 net-zero ambition.

Investments and limitations of the current plan

During 2025, Tieto made investments to support the implementation of the transition plan, including continued

procurement of renewable energy, building greenhouse gas emission accounting, reporting and tracking

capabilities and GHG emission compensation related to operations in Norway. While the current transition

plan addresses key decarbonization levers and governance, it does not yet include a detailed breakdown of

financial investments or funding mechanisms.

Tieto is included in EU Paris-aligned benchmarks.

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

model (ESRS 2 SBM-3)

In the double materiality assessment, Tieto identified Energy, Climate change mitigation and Climate change

adaptation as material topics. These topics reflect actual negative impacts, potential positive impacts, as well

as material risks.

Energy

Energy was identified as a material topic due to its potential positive impact. Digital solutions can help

customers and industries lower energy consumption, promoting efficiency and supporting the transition to

sustainable energy across sectors. Energy was also identified as having an actual negative impact as growing

digital demand drives energy use in own operations and supplier infrastructure. Energy-related risks arise from

both physical and transition perspectives including energy price volatility, changes in energy markets, and

increasing demand for renewable energy. In this manner, energy is directly linked to GHG emissions and

Tieto's operational dependency on a stable, reliable and affordable energy supply.

Climate change mitigation

Climate change mitigation has been recognized as an actual negative impact and a risk, due to its influence on

Tieto's decarbonization pathway and alignment with science-based targets. Emissions from own operations

and suppliers contribute to climate change, and exposure to energy.

Climate change adaptation

Climate change adaptation has been recognized as a risk, especially for the company’s facilities and essential

services situated in regions vulnerable to physical climate hazards. To strengthen business continuity and

operational resilience, Tieto is committed to proactively managing potential climate-related impacts such as

extreme weather events, heatwaves, flooding, and supply chain interruptions, to minimize any adverse effects

on its operations and service delivery.

When assessing climate-related hazards, Tieto considered both chronic and acute physical risks. This

assessment was supported by a screening based on the INFORM Risk Index, a global tool that evaluates

disaster and crisis risks by analysing hazard exposure, vulnerabilities, and coping capacities. The analysis

identified exposure to risks such as flooding, heatwaves, and extreme weather events in certain operating

regions, informing business continuity planning and resilience measures.

The climate resilience analysis, based on the TCFD-aligned scenarios conducted in 2023, integrated planned

mitigation actions and assessed the financial, technological, and organizational resources required for their

implementation. Measures such as renewable energy sourcing, energy-efficiency improvements, and Scope 1

and 2 transition pathways were evaluated for their ability to reduce exposure to climate-related risks. Physical

risk screening, supported by the INFORM Risk Index, identified facilities in regions with elevated exposure to

flooding, heatwaves, and extreme weather events. These insights inform contingency planning and investment

decisions to strengthen adaptive capacity.

Identified physical risks include potential electricity supply interruptions or operational disruptions caused by

extreme weather events. Transition risks primarily relate to increasing renewable energy costs, as demand is

expected to outpace supply in the medium term. These transition risks were evaluated in accordance with the

TCFD classification of climate-related transition categories and through complementary scenario analysis. For

Tieto, relevant financial risks include energy price volatility, carbon pricing mechanisms, and regulatory

changes that may impact operational and investment decisions.

Time horizons and resilience assessment

Tieto applies short-term (0–2 years), medium-term (2–7 years), and long-term (7–30 years) time horizons

when assessing climate-related risks and opportunities. These timeframes reflect the expected economic life

of assets and the long-term nature of climate change impacts and mitigation pathways. While core operations

remain resilient across scenarios, uncertainties related to regulatory changes, technological development, and

supplier-level data have been considered in strategic planning. These factors inform mitigation strategies,

investment decisions, and operational priorities, and will be reassessed as more granular data becomes

available to ensure ongoing alignment with the company’s climate and net-zero objectives.

Interaction with strategy and business model

Reflecting these dynamics, Tieto assumes that the transition to a lower-carbon and more climate-resilient

economy will drive significant changes in macroeconomic conditions, energy systems, and technological

development within the ICT services sector. It is expected that decarbonization policies, increasing carbon

prices, and evolving market dynamics will influence energy demand and accelerate the shift towards

renewable energy sources. Furthermore, the transition is anticipated to foster innovation and wider

deployment of energy-efficient and low-carbon technologies across digital infrastructure, data centres, and

ICT services.

In its resilience analysis,Tieto screened its activities to identify potential future GHG emission sources,

excluding only a full value-chain evaluation for Avega, Bekk, Evry India and Evry USA. Emerging technologies

considered in Tieto’s strategy, including artificial intelligence (AI), may increase energy demand and thus pose

a potential risk to energy efficiency and emission reduction performance. These insights inform the company’s

climate transition planning and prioritization of decarbonization levers under its science-based targets

framework.

The outcomes of these assessments are integrated into Tieto’s strategic planning and investment decision-

making processes. Climate-related risks and opportunities are regularly reviewed as part of enterprise risk

management and inform capital allocation, particularly in relation to energy procurement, infrastructure

investments, and technology development. As part of the transition to a lower-carbon and resilient economy,

Tieto supports initiatives that contribute to energy efficiency, renewable energy sourcing, and operational

resilience, aligning investment plans with its decarbonization pathway and 1.5°C-aligned targets.

Furthermore, climate-related insights derived from the double materiality and scenario analyses are used to

guide strategic choices, such as supplier engagement requirements, selection of technology partners, and the

design of products and services that support low-carbon operations and customer solutions. This integration

ensures that Tieto’s business model remains resilient, adaptable, and capable of creating long-term value

while contributing to the transition towards a net-zero economy.


TIETO − ANNUAL REPORT 2025	61

Integration of sustainability-related performance in incentive schemes (ESRS 2 GOV-3)

Tieto has integrated Environmental, Social and Governance (ESG) performance measures into its long-term

incentive (LTI) plan to align management remuneration with the company’s sustainability objectives. ESG

measures were first introduced in 2022, with the initial payout taking place in 2025.

Since then, Tieto has strengthened the role of sustainability performance in its LTI plan by increasing the

aggregated weighting of ESG measures from 10% to 20% in 2023. Within this, a 10% weighting is assigned to

the Scope 1 and 2 greenhouse gas (GHG) emission reduction target, which has been validated by the Science

Based Targets initiative (SBTi).

The new LTI plan for the period 2026–2028 continues this integration by linking performance outcomes to

Tieto’s net-zero GHG emission reduction target. The 10% weighting is retained, and the metric is expanded in

scope to cover a broader range of emissions, including those across the value chain (scope 3). This approach

ensures that sustainability performance is directly linked to executive remuneration, reinforcing accountability

for climate action and supporting Tieto’s long-term alignment with a 1.5°C decarbonization pathway. Read

more under Integration of sustainability-related performance in incentive schemes Gov-3.

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 out in Tieto’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 confirms Tieto’s alignment with key global frameworks, including the United Nations (UN) Global

Compact, UN Sustainable Development Goals, the ISO 14001 EMS and SBT. It also provides a structured

approach to implementing and monitoring environmental initiatives.

The Environmental Policy provides guidelines for managing material impacts, risks and opportunities related to

climate change mitigation and adaptation. Its main objectives include 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 support these objectives, the policy sets out principles addressing the topics of Energy, Climate

change mitigation and Climate change adaptation. These include leadership commitment, enhanced process

approach, environmental protection, 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. The review process considers stakeholder interest

consideration through benchmarking, stakeholder interviews, and active dialogue with experts. In 2025, the

review focused particularly on the implications of the Tech Services business divestment. This resulted in

minor adjustments to the policy; the core principles underpinning the company’s climate actions remain

unchanged.

The policy applies to all Tieto companies and employees globally, as well as to companies under Tieto’s

control. Policy content is made available to all Tieto employees through a mandatory e-learning module in

Tieto Essentials. The responsibility for implementing the Environmental Policy lies with the Chief Sustainability

Officer.

Actions

Actions and resources in relation to climate change policies (E1-3)

Key actions and expected effects

Tieto’s main decarbonization levers include the use of renewable energy, reduced business travel, energy

efficiency measures including consolidation and optimization efforts, reduction via electrification, more

sustainable commuting, and supplier engagement and selection actions. These levers are intended to achieve

emission reductions over time and contribute to climate change mitigation.

Renewable energy procurement is expected to reduce scope 2 emissions by 379 t CO₂e from the 2024 level by

2034. Supplier engagement and selection of low-emission suppliers aim to cut upstream scope 3 emissions by

50 634 t CO₂e by 2034. Shifting employee commuting and business travel to electric vehicles and public

transportation is projected to reduce scope 1 and 3 emissions by 642 t CO₂e and 124 t CO₂e, respectively.

Finally, leasing only electric vehicles for operations is expected to lower upstream scope 3 emissions by 1 297 t

CO₂e.

Implementation and governance

During 2025, Tieto continued its commitment to reducing operational emissions by purchasing renewable

energy for its offices as well as office consolidation, achieving a greenhouse gas (GHG) emission reduction of

143 tCO₂e in own operations (scope 1 and 2). As a result, the total share of renewable electricity in the

company’s own operations was 95%. To further enhance energy efficiency across its global offices, Tieto

focused on optimizing workspace utilization, conducting energy inspections, upgrading electrical equipment,

and promoting energy-saving practices among employees. Where feasible, building automation systems were

adjusted, and lighting systems were renewed and optimized to respond to actual space usage. Additional

progress included upgrading the LEED certification of Tieto’s head office to platinum level and relocating the

Oslo office to more modern and energy-efficient facilities. Tieto will continue its transition towards more

energy-efficient offices in 2026.

To ensure that Tieto’s environmental objectives are achieved, major offices operate under the company’s

global Environmental Management System (EMS), which is ISO 14001 certified and externally audited annually.

The EMS is coordinated and continuously improved by Tieto’s EMS Team, consisting of environmental

managers from various operating countries and 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 four businesses supported by group operations. During 2025, four additional sites were

brought under Tieto’s global certification following successful scope extension audits, and 43 internal EMS

audits were conducted across Tieto’s facilities to ensure compliance and drive continuous improvement.

In scope 3, the majority of Tieto’s greenhouse gas emissions stem from purchased goods and services within

the company’s sourcing activities. These emissions are addressed through supplier compliance with Science-

Based Targets (SBTs), adherence to Tieto’s Supplier Code of Conduct, and active engagement with key

suppliers. Tieto collaborates with its suppliers to set SBTs, enhance transparency, improve data quality, and

identify joint opportunities for emission reductions in line with Tieto’s net-zero by 2040 ambition.

During 2025, Tieto’s business travel emissions were reduced by 504 tCO₂e, as a result of continued promotion

of hybrid working practices and reinforcement of Tieto's Travel Rule, which emphasizes the use of

environmentally preferable travel options such as train travel instead of air travel whenever feasible.

In autumn 2025, Tieto prepared, internally approved, and externally validated new Science-Based Targets

(SBTs) aligned with the 1.5°C global warming pathway, resulting in an updated climate transition plan. Starting

in 2026, Tieto will begin implementing the reduction plan and its associated key decarbonization levers. By

2034, Tieto aims to reduce scope 1 and 2 emissions by approximately 1 490 tCO₂e from a 2022 baseline

through renewable energy purchases. In scope 3, the most significant reduction potential is estimated at


TIETO − ANNUAL REPORT 2025	62

50 634 tCO₂e by 2034, which relates to suppliers' engagement, collaboration, and responsible procurement

practices and continued data quality improvements.

Tieto conducted a nature impact assessment during 2025, following the Taskforce on Nature-related Financial

Disclosures (TNFD) framework. The assessment identified Tieto’s key nature-related dependencies, impacts,

risks, and opportunities across its operations and value chain. Given Tieto’s business model, centred on

technology consulting, software development, and IT infrastructure, most nature-related impacts and

dependencies occur upstream and downstream in the value chain, particularly among software vendors, cloud

service providers, and hardware manufacturers. The findings will guide Tieto’s supplier engagement strategy

and support the integration of nature considerations into procurement and risk management processes. Tieto

recognizes the interconnection between climate change and biodiversity, acknowledging that climate change

drives biodiversity loss, while ecosystem degradation undermines nature’s ability to regulate greenhouse gas

emissions and mitigate extreme weather events.

Forward-looking actions and resources

During 2025 Tieto purchased carbon compensation from Gold Standard projects to compensate for emissions

from its Norway operations (ref E1-7). The company is preparing to compensate emissions related to its own

operations with carbon removal credits as a part of its commitment to achieving carbon neutrality in own

operations by 2026.

Tieto has identified Climate change adaptation as a potential risk in connection to business continuity, and is

preparing to set targets for this area during 2026. Tieto is also investigating the introduction of an internal

carbon pricing scheme for the company during 2026 to support internal GHG emission reduction efforts within

the company.

Tieto’s action plan for the material impacts, risks and opportunities did not require any significant operational

expenditure (Opex) or capital expenditure (Capex) for the financial year 2025.

Metrics and targets

Targets related to Climate change mitigation and adaptation (E1-4)

Tieto’s methodology for target-setting has included scenario analysis compatible with limiting global warming

to 1.5°C, as well as internal and external stakeholder engagement. Employees and management have provided

their expertise through internal meetings and workshops to ensure that the targets are relevant and feasible

for the Group’s operations. The interests of external stakeholders have been captured through benchmarking,

legislative reviews, and market assessment. All targets related to climate change mitigation and adaptation are

aligned with Tieto’s Environmental Policy, which outlines the company’s commitment to integrating

environmental performance across its operations. To ensure targets remain relevant and effective, Tieto

considers environmental, societal, technological, market, and policy developments when determining its

decarbonization levers.

Previous SBTi validated targets (approved 2022)

Tieto’s GHG emission reduction targets were approved by the SBTi in 2022. All entities within the Tieto Group

were included in scope 1 and 2 of the reduction targets. The targets supported Tieto’s material impacts and

risks related to renewable energy deployment and climate change mitigation through reduction of GHG

emissions in its own operations. Targets related to scope 1 and 2 included 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. Two of the SBTs were

connected to scope 3. These targets included a 47% reduction of GHG emissions from business travel from a

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 was 27% from 2022.Tieto continues to disclose progress against these previously approved targets for

comparability.

Since 2020, Tieto has made good progress towards these targets. In 2024 the company reported the following

results (including the Tech Services business): 87% reduction in scope 1 and 2 (target 90% by 2026), 99%

share of renewable electricity (target 100% by 2026) and 46% of suppliers had set science-based climate

targets (target 70% by 2026). The business travel target, initially achieved during the post-pandemic period,

experienced a slight increase in related emissions in recent years; however, overall performance remained

better than the pre-pandemic baseline. In 2025, the company achieved a 54% reduction in CO₂e emissions per

average FTE with regards to business travel.

The share of renewable electricity decreased from 99% to 95%, primarily due to the exclusion of data centre

operations previously powered by 100% renewable electricity related to the divestment of the Tech Services

business.

The supplier engagement SBT result declined to 41% (46%) as the divestment of the Tech Services business

led to the removal of suppliers with higher SBT adoption rates from the reporting scope.

See table Targets for 2025 related to Climate change mitigation, adaptation and Energy for more information.

Current SBTi validated targets (approved 2025)

In 2025 the Tech Services business was divested and excluded from the Tieto Group’s carbon accounting.

During 2025, Science Based Targets results were recalculated to reflect the revised organizational boundary

excluding demerged operations. This adjustment had a measurable impact on reported outcomes, and the

company reports both previously reported figures and recalculated figures.

The revised targets are absolute GHG emission reduction targets covering all scopes 1, 2 and 3. The near-term

target year for all scopes is 2034, and the long-term and net-zero target year is 2040. The base year for the

scope 1 and 2 targets is 2022 and for the scope 3 target it is 2024. Scope 1 and 2 use 2022 as the base year due

to established and reliable reporting, ensuring comparability over time. This also illustrates progress achieved

to date and provides a clear link between historical performance and forward-looking plans. Using 2024 as the

base year for Scope 3 reflects organizational changes and ensures data accuracy, addressing the complexity

of value chain emissions and evolving calculation methodologies.

The baseline value for the scope 1 and 2 target is 2,179 tCO2e and for scope 3 it is 98,394 tCO2e. All reduction

targets have been validated and approved by the Science Based Targets initiative (SBTi) and are aligned with

limiting global warming to 1.5°C. These targets are consistent with achieving climate neutrality, with a net-zero

ambition set for 2040, in accordance with the latest climate science and recognized methodologies. Scope 1

and 2 SBT GHG emission reduction targets are also linked to Tieto's LTIs. The targets and overall Climate

Transition plan are internally approved by Tieto’s Sustainability steering group and the CEO. Besides these

targets Tieto aims to be carbon neutral in own operations by 2026.

These targets support Tieto’s material impacts and risks of renewable energy deployment and climate change

mitigation through reduction of GHG emissions throughout the value chain.

In 2025, the company reports progress against the new targets alongside the previously approved targets.

Within scopes 1 and 2, the company achieved an 60% reduction in GHG emissions (market-based) compared

with the 2022 base year. For scope 3, the company reported a 6% reduction compared with the 2024 base

year, against targets of 59% reduction by 2034 and 90% reduction by 2040. In relation to the net-zero

commitment across the value chain by 2040, total value chain GHG emissions amounted to 92,986 tCO2e in

2025 (base year 2024: 99,399 tCO2e).


TIETO − ANNUAL REPORT 2025	63

Additional targets

In addition to the current SBTi validated targets, Tieto has also set an externally reported target requiring all

employees to annually complete mandatory training on environmental sustainability (Environmental e-

learning). All entities within the Group are included in the scope of the 100% annual completion target for

environmental e-learning, with the exception of the subsidiary Bekk, which operated fully as a portfolio

company. The result for this target was 97% in 2025. Measurements of the environmental training target are

not validated by any external body other than through external assurance.

See table Targets for 2026 onwards related to Climate change mitigation for more information.

Targets for 2025 related to Climate change mitigation, adaptation and Energy


Material topic	Type of IRO related to target	Target	Base year	2025	2024 Restated	2024
Climate change mitigation, adaptation and Energy	Actual negative, risk and opportunity	SBT: 90% absolute greenhouse gas emission reduction in scope 1 and 2 (market-based) by 2026	2020	88%	86%	87%
	Actual negative, risk and opportunity	SBT: 100% renewable electricity in own operations by 2026	2020	95%	96%	99%
	Actual negative, risk and opportunity	SBT: Reduce business travel emissions 47% per FTE by 2030	2019	54%	55%	73%
	Actual negative, risk and opportunity	SBT: 70% of suppliers having SBTs by 2026	2022	41%	40%	46%
Climate change mitigation, Energy	Actual negative, risk and opportunity	100% of employees completed the annual Environmental e-learning (new target FY2024)	2024	97%	97%	97%

The SBT targets presented in the table above refer to targets valid until 2025. These targets were set in 2022

and approved by SBTi. For 2026 onwards, they have been replaced with new absolute GHG emission

reduction targets (presented in the following table), validated and approved by SBTi and aligned with the Paris

Agreement and based on a 1.5 degrees reduction trajectory. This revision reflects the impact of the Tech

Services business divestment, the resulting changes in the reporting scope, and the company’s strengthened

ambition to establish near-term, long-term, and net-zero SBTs. These updated targets will provide a robust

foundation for climate transition planning and ensure continued alignment with the 1.5°C pathway.

Targets for 2026 onwards related to Climate change mitigation


Material topic	Type of IRO related to target	Target wording	Base year value	Base year	2025	2024
Climate change mitigation	Actual negative, risk	Near-term target: Tieto commits to reduce absolute scope 1 and 2 (market-based) GHG emissions 69% by 2034 from a 2022 base year.	2,179 tCO2e	2022	60%	54%
	Actual negative, risk	Near-term target: Tieto commits to reduce absolute scope 3 GHG emissions 59% by 2034 from a 2024 base year.	98,393 tCO2e	2024	6%	Baseline value
	Actual negative, risk	Long-term target: Tieto commits to reduce absolute scope 1 and 2 (market-based) GHG emissions 90% by 2040 from a 2022 base year.	2,179 tCO2e	2022	60%	54%
	Actual negative, risk	Long-term target: Tieto commits to reduce absolute scope 3 GHG emissions 90% by 2040 from a 2024 base year.	98,393 tCO2e	2024	6%	Baseline value
	Actual negative	Net-zero target: Tieto commits to reach net-zero GHG emissions across the value chain by 2040.	100,572 tCO2e	2022 & 2024	92 986	Baseline value

Tieto’s carbon accounting system is monitored on an annual basis and/or in connection with 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 emission factors are updated in the carbon footprint reporting system on an annual basis.


TIETO − ANNUAL REPORT 2025	64

Decarbonization levers

Tieto’s decarbonization strategy is centred on reducing greenhouse gas (GHG) emissions across both its own

operations and the value chain. The company’s approach combines immediate actions with long-term

initiatives to ensure measurable progress towards its climate targets and alignment with the 1.5°C pathway.

To reach the near-term 2034 target, Tieto focuses on two primary levers. First, strengthening supplier

engagement activities to ensure that business partners share Tieto’s climate ambitions and actively contribute

to emissions reductions throughout the value chain. Second, transitioning to 100% renewable electricity

across operations through the procurement of certified Renewable Energy Certificates (RECs) or Guarantees

of Origin (GoOs).The company is exploring technologies that could support progress towards GHG reduction

targets. In its operations, this may include energy-efficiency measures, advanced energy management

systems, and on-site renewable energy solutions. Tieto also engages with suppliers to encourage low-carbon

production technologies and process improvements that can contribute to scope 3 emissions reductions.

Looking ahead to the period from 2034 to 2040, Tieto has identified additional measures to sustain and

accelerate decarbonization progress. These include continued supplier engagement and integration of climate

performance into sourcing decisions, procurement of renewable energy for heating and cooling systems, and

the electrification of the vehicle fleet, including initiatives to encourage low-emission commuting among

employees. Furthermore, Tieto is implementing actions to mitigate business travel emissions by promoting

remote working practices, virtual collaboration tools, and enhanced travel guidelines. Together, these

measures form a comprehensive decarbonization pathway that supports Tieto’s long-term climate ambitions

and provides a robust foundation for achieving net-zero emissions in line with international climate goals.


TIETO − ANNUAL REPORT 2025	65

Energy consumption and mix (E1-5)

Changes in the 2024 figures due to Tech Services divestment

In 2025, Tieto recalculated its 2024 energy consumption (own operations) and GHG emission figures to

exclude the demerged Tech Services business. When comparing figures for 2024 before and after the

divestment, total energy consumption in own operations (scope 1 and 2) decreased by 68%. This reduction is

primarily attributed to the removal of data centre energy use, which previously accounted for a dominant

share of total consumption.

The share of fossil energy increased by 8%. This is mainly because the excluded data centre operations were

office operations heating remains partly dependent on fossil sources, which increases the relative fossil share

in the remaining scope.

Nuclear energy consumption was 99% lower following the removal of the data centre cooling agreement from

the scope. As a result, the share of renewable energy increased from 77% to 82%, since nuclear energy is not

classified as renewable.

These restated figures are presented in the following table.

Results in 2025

In 2025, energy consumption in Tieto’s own operations (Scope 1 and 2) decreased by 11% from 2024 to 23,953

MWh (2024: 27,056 MWh). The key drivers behind these changes include factors such as reduced and

optimized office floor area, operational energy-efficiency measures and improved building management,

optimization of ventilation and heating schedules, and targeted equipment upgrades. The second key driver is

the continued purchase of renewable electricity.

Total fossil energy consumption declined by 26% to 3,602 MWh (4,850 MWh) as a result of the overall energy

consumption reduction. This reduced the fossil share to 15.0% (17.9%), an improvement of 2.9%. Purchased or

acquired electricity, heat, steam and cooling from fossil sources decreased by 27% to 3,271 MWh (4,510

MWh), primarily driven by office consolidation.

While the absolute amount of renewable energy consumed decreased by 9% to 20,106 MWh (22,056 MWh),

the renewable share increased to 83.9% (81.5%), up 2.4 percentage points, reflecting the lower total

consumption and a cleaner supply mix. Nuclear energy consumption increased to 245 MWh (150 MWh),

bringing its share to 1.0% (0.6%); while small in absolute terms, this is relevant as it affects the overall energy

composition.

Energy consumption and mix (E1-5)


Energy consumption and mix	2025	2024 Restated	2024
Fuel consumption from crude oil and petroleum products (MWh)	268	340	608
Fuel consumption from natural gas (MWh)	63	0	0
Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh)	3 271	4 510	8 076
Total fossil energy consumption (MWh)	3 602	4 850	8 684
Share of fossil sources in total energy consumption (%)	15%	18%	10%
Consumption from nuclear sources (MWh)	245	150	10 930
Share of consumption from nuclear sources in total energy consumption (%)	1%	1%	13%
Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.) (MWh)	2	2	2
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)	20 104	22 054	63 930
Total renewable energy consumption (MWh)	20 106	22 056	63 932
Share of renewable sources in total energy consumption (%)	84%	82%	77%
Total energy consumption (MWh)	23 953	27 056	83 546


TIETO − ANNUAL REPORT 2025	66

Gross Scopes 1, 2, 3 and Total GHG emissions (E1-6)


Gross scopes 1, 2, 3 and Total GHG emissions		Retrospective					Milestones and target years
Gross scopes 1, 2, 3 and Total GHG emissions	Base Year 2022	Base Year 2024	2025 Result	2024 Restated	Change, %	2024 Result	2030	2034	2040
Scope 1 GHG emissions
Gross scope 1 GHG emissions (tCO2eq)	109		84	87	-3%	158
Percentage of scope 1 GHG emissions from regulated emission trading schemes (%)	0		0	0		0
Scope 2 GHG emissions
Gross market-based scope 1 & 2 GHG emissions (tCO2eq)	2179		863	1 006	-14%	8 094	816	689	218
Gross location-based scope 2 GHG emissions (tCO2eq)	3 742		4 076	4 258	-4%	6 937
Gross market-based scope 2 GHG emissions (tCO2eq)	2 069		779	919	-15%	1 157
Significant scope 3 GHG emissions
Total gross indirect (scope 3) GHG emissions (tCO2eq)		98 393	92 123	98 393	-6%	163 204	63 680	40 538	9 839
Purchased goods and services		80 074	73 979	80 074	-8%	134 696
Capital goods		1 432	1 671	1 432	17%	9 235
Fuel and energy-related activities (not included in scope 1 or scope 2)		1 246	1 181	1 246	-5%	3 005
Upstream transportation and distribution		4 374	4 312	4 374	-1%
Waste generated in operations		25	33	25	32%	64
Business travelling		6 600	6 096	6 600	-8%	5 852
Employee commuting		4 020	4 238	4 020	5%	6 148
Upstream leased assets		594	582	594	-2%	397
Use of sold products			0	0	—%	3 807
End-of-life treatment of sold products		28	31	28	11%	0
Total GHG emissions
Total GHG emissions (location-based) (tCO2eq)		102 738	96 283	102 738	-6%	170 299
Total GHG emissions (market-based) (tCO2eq)		99 399	92 986	99 399	-6%	164 519	64 496	41 227	10 057


TIETO − ANNUAL REPORT 2025	67


GHG intensity per net revenue	2025	2024 Restated	Change, %	2024
Total GHG emissions (location-based) per net revenue (tCO2e/MEUR)	52	55	-5%	61
Total GHG emissions (market-based) per net revenue (tCO2e/MEUR)	50	53	-6%	59

Net revenue used in GHG intensity calculation is based on the Group’s revenue in the consolidated income

statement.The result for 2025 shows that Tieto has reduced its GHG emissions compared to revenue.

GHG emission methodology in scopes 1,2 and 3

Reporting framework and units

Tieto applies the GHG Protocol Corporate Accounting and Reporting Standard when accounting for GHG

emissions in 2025. Tieto’s scope 1, 2 and 3 reporting boundary covers all Tieto companies and subsidiaries.

Emissions are reported as CO2 equivalents (CO2e).

Organizational boundary and consolidation approach

Tieto applies the operational control approach for consolidation, consistent with the Group consolidation

scope. The financial control approach is not deemed relevant for Tieto, as it does not hold a financial stake or

control over other entities outside of its boundary. The operational control approach allows Tieto to report

emissions from operations it actively influences and manages.

In 2025, Tieto finalized the divestment of the Tech Services business, resulting in a change to the

organizational boundary applied in the GHG inventory. To ensure consistency and comparability, a

recalculation of the 2024 GHG inventory was conducted to exclude emissions associated with Tech Services.

This adjustment was made in accordance with recognized GHG accounting standards. The methodology

described below pertains to the 2025 reporting year and reflects the updated organizational boundary post-

divestment.

Methodological assumptions, data sources and changes.

Tieto revised its GHG emission figures after the demerger of the Tietoevry Tech Services business in 2025. The

new baseline for scope 1 and 2 calculations is 2022, and for scope 3 it is 2024.

The Purchased goods and services category previously used EPA spend-based emission factors. In 2025, the

more recent Exiobase 3.10.1. emission factors were applied. This change has an impact on the reported result,

due to differences in categorization. Improving scope 3 supplier emission data is an ongoing process, with the

aim of achieving more accurate data for reporting.

The share of value chain emissions calculated using primary data obtained from suppliers or other value chain

partners is 11% (<5%), while the remaining share is based on estimates.

Tieto applies Exiobase spend-based emission factors for scope 3 categories such as Purchased goods and

services, Capital goods, and Upstream transportation. Compared to the earlier used EPA emission factors,

Exiobase values can differ due to broader system boundaries and global coverage. Exiobase includes life-

cycle emissions across international supply chains, encompassing upstream extraction, intermediate

processing, and transportation activities. In contrast, EPA factors are USA-specific and typically reflect

domestic industry averages with narrower boundaries. Therefore, the use of Exiobase provides a more

comprehensive representation of emissions associated with Tieto’s global procurement activities.

During 2025 Tieto improved data accuracy thanks to a more precise spend categorization. For details on the

EXIOBASE version, factor characteristics, and mapping approach, see Purchased goods and services (Scope 3

Category 1).

Scope 1 and 2

In scope 1 and 2 the electricity emission factors are based on national gross electricity production mixes

(annual statistics) from the International Energy Agency’s statistics (IEA stat 2025). 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 2025 Tieto purchased bundled (16%) and unbundled (55%) Energy Attribute Certificates (EACs) in the

form of GoOs and RECs, which in total covered 71% of scope 2. The emission factors used for European

residual mixes are provided by the Association of Issuing Bodies (AIB) 2025 and European Residual Mixes

2025. 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 2022.

All relevant sources under operational control are included, excluding those associated with the Tech Services

post-divestment.

Scope 3

Material scope 3 categories and their methodology are presented below. The categories deemed as non-

material for Tieto are Processing of sold products, Use of sold products, Downstream transportation and

Downstream leased assets, Franchises and Investments.

Purchased goods and services

The Purchased goods and services category (Scope 3 Category 1) includes emissions from purchased goods

and services. Based on Tieto’s expenditure, the spend categories are mapped to corresponding EXIOBASE

emission factor activities (aligned with NACE codes). The mapping follows Tieto’s sourcing categories and

regional factors. The emission factor for each category is multiplied by the respective spend, resulting in

emissions expressed in tCO₂e. Financial spend data is collected from procurement systems and categorized by

product and service type. Emissions from non-integrated subsidiaries are manually gathered and calculated

using data from their internal systems. Spend from the Tech Services business and its subsidiaries has been

manually collected, estimated and included for Q1-Q3. The expenditure data used for calculating emissions in

these categories is not directly comparable with financial reporting data.

Emission factors used in calculations come from the EXIOBASE database version 3.10.1, a multi-regional

environmentally extended input-output (EEIO) database from XIO Sustainability Analytics. These factors

represent cradle-to-gate emissions. The emission factors cover all GHG and are expressed in CO2 equivalents.

The Global Warming Potential (GWP) of factors used is 100 years and comes from the sixth assessment report

of the Intergovernmental Panel on Climate Change (IPCC). Market-average emission factors from EXIOBASE

were used. EXIOBASE market-average factors are designed to represent the average footprint of goods and

services consumed in a region, accounting for both domestic production and imports.

Capital goods

The Capital goods category (Scope 3 Category 2) includes extraction, production, and transportation of capital

goods purchased or acquired by the reporting company in the reporting year. These are included through

spending related to CAPEX similarly to the Purchased goods and services category. This category has been

calculated based on financial spend data from internal systems, similarly to Category 1 Purchased goods and

services. EXIOBASE 3.10.1.emission factors were applied. Please see the description under Purchased goods

and services (Scope 3 Category 1).


TIETO − ANNUAL REPORT 2025	68

Fuel- and energy-related activities

The Fuel- and energy-related activities category (Scope 3 Category 3) includes upstream emissions from the

extraction, production, and transport of fuel and energy purchased or acquired by Tieto in the reporting year,

where these emissions are not already accounted for in scopes 1 or 2. The main emissions in this category stem

from upstream emissions associated with purchased electricity and district heating. The calculation builds on

input data already collected for scope 1 and scope 2, i.e. fuel consumption data from company-owned sources

and from purchased electricity, steam, heating, and cooling. These emissions are estimated by applying

upstream emission factors to the same activity data used for scope 1 and scope 2.

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 upstream emissions of electricity are sourced from the International

Energy Agency (IEA) 2025 database. Upstream emissions from fuels are sourced from DEFRA (2025). Emission

factors from upstream emissions for district heating are from local sources. Total emissions are determined by

multiplying the relevant activity data from scope 1 and scope 2 by the corresponding emission factors.

Upstream transportation and distribution

The Upstream transportation and distribution category (Scope 3 Category 4) includes transportation and

distribution services purchased in the reporting year between Tieto’s tier 1 suppliers and its own operations,

where the transport is not owned or controlled by Tieto. Upstream transportation and distribution are

calculated similarly to Purchased goods and services (Scope 3 Category 1) using a spend-based methodology.

This category has been calculated based on financial spend data from internal systems, similarly to Purchased

goods and services (Scope 3 Category 1). Emissions are estimated using financial spend data related to

transportation and logistics services. EXIOBASE 3.10.1. emission factors are applied.

Waste generated in operations

The Waste generated in operations category (Scope 3 Category 5) includes emissions from disposal and

treatment of waste generated in Tieto's operations in the reporting year (in facilities not owned or controlled

by the reporting company). The activity data is provided by the waste management supplier or property

manager and collected by country- or site-level reporters. The waste-type-specific method has been used,

and thus the waste has been reported in kg per waste type and treatment method. Waste-type-specific and

waste-treatment-specific emission factors have been used in the calculations. Emissions associated with

material recycling include only transportation (collection of waste), as the emissions from the recycling

process itself are allocated to the secondary material. The source for the emission factors is DEFRA, 2025 and

Ecoinvent 3.12.

Business travel

The Business travel category (Scope 3 Category 6) includes emissions from transportation of employees for

business-related activities during the reporting year (in vehicles not owned or operated by Tieto). The main

emissions in this category are emissions from air travel. Data is collected from Tieto's travel agency and

internal mileage reports from expenditure data. Emissions from business travel by air are reported by Tieto’s

travel agency. The emission factors represent kgCO2e emitted per kilometre or passenger kilometre for each

mode of transport. Mileage allowance (car) is calculated using the emission factor for mileage allowance,

sourced from DEFRA 2025. This category is calculated using spend for non-integrated companies. Emissions

have been calculated on a WTW basis.

Employee commuting

The Employee commuting category (Scope 3 Category 7) includes emissions from transportation of employees

to and from work during the reporting year, in vehicles not owned or controlled by Tieto. The emissions in this

category are based on a commuting survey conducted in 2024 and adjusted according to number of

employees in 2025. Included travel modes: car, carpool, motorbike, bicycle, bus, rail, walk. Input data comes

from a commuting survey conducted by an external partner, and the headcount for 2025. The emissions are

calculated on a WTW basis, using sources such as DEFRA, EPA, and various other local sources.

Upstream leased assets

The Upstream leased assets category (Scope 3 Category 8) includes emissions from the operation of vehicles

leased by Tieto in the reporting year. Mileage allowance for leased cars is reported in this category (separated

from business travel). Data has been collected using internal mileage reports and data on number of leased

vehicles. Emissions have been calculated on a WTW basis using sources such as DEFRA (2025) and IEA (2025).

End-of-life treatment of sold products

The End-of-life treatment of sold products category (Scope 3 Category 12) includes the end-of-life treatment

cards sold. The only products that Tieto sells are cards; emissions are calculated based on consumption data.

This category is included in scope 3 reporting. Emissions are calculated based on data for cards sold.

Non-material categories

The Downstream transportation and distribution category (Scope 3 Category 9) is identified as not material.

Tieto (excluding the Tech Services business) does not sell any products that require transportation not paid for

by Tieto. The only physical products Tieto sells are cards, and the transportation of the cards is included in

Category 4. As a result, downstream transportation and distribution is not included in the scope 3 inventory.

The Processing of sold products category (Scope 3 Category 10) is deemed as not material for Tieto, because

Tieto does not sell any intermediate products that need further processing after point of sale.

The Use of sold products category (Scope 3 Category 11) is deemed as not material since Tieto (excluding the

Tech Services business) does not sell physical products, hardware or other products that directly consume

energy. Emissions from servers used to run cloud-based software are included in Purchased goods and

services (Scope 3 Category 1). As a result, the Use of sold products category is not included in the scope 3

inventory.

The Downstream leased assets category (Scope 3 Category 13) is deemed as not material for Tieto since Tieto

does not own any products that are leased out.

The Franchises category (Scope 3 Category 14) is deemed as not material because Tieto does not have any

franchises.

The Investments category (Scope 3 Category 15) is deemed as not material as Tieto does not have any

investments outside the reporting boundary of the GHG emissions. Tieto does not have joint ventures. All

subsidiaries are included in the boundary of the Group emissions.


TIETO − ANNUAL REPORT 2025	69

GHG removals and GHG mitigation projects financed through carbon credits (E1-7)

Tieto finances climate mitigation projects by purchasing high-quality carbon credits to address residual

operational emissions. Ensuring the quality of these carbon credits is essential, as it confirms that the projects

funded are genuinely effective in reducing or removing GHG emissions. High-quality carbon credits take into

account factors such as additionality, durability, leakage, external verification of the methodology and

calculations, and evaluation of the impacts on other sustainability areas.

In 2025, Tieto cancelled carbon credits corresponding to 1 159 metric tCO2e of voluntary reduction credits to

offset emissions related to operations in Norway. 100% of these carbon reduction credits were purchased

from two Gold Standard programme projects in India. The projects generate electricity through sustainable

means, using solar power and wind power resources, and are annually monitored and third-party verified.

All credits are issued following an 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 recorded 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 Tieto invests in include:

• Renewable energy project (wind power generation) with distribution within the Indian power grid

• Renewable energy (solar power generation) projects in selected Indian states.

In 2025, the company did not purchase any carbon removal credits. Tieto aims to prioritize direct emission

reductions and, for the remaining residual emissions (targeted less than 10%), to use high-quality carbon

removal solutions consistent with the requirements of ESRS E1.

Internal carbon pricing (E1-8)

Tieto does not currently apply internal carbon pricing. However, in 2026 Tieto will explore options for the

introduction of an internal carbon pricing mechanism to guide operational decision-making towards lower

greenhouse gas emissions as well as to support emission reduction initiatives across all businesses.


TIETO − ANNUAL REPORT 2025	70

Social

S1 – Own workforce71

S2 – Workers in value chain 78

S4 – Consumers and end-users 81


TIETO − ANNUAL REPORT 2025	71

S1 – Own workforce

Strategy

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

model (ESRS 2 SBM-3)

Tieto’s double materiality assessments encompass the entire workforce – covering all employees regardless

of role, location, or employment type (including full-time, part-time, and temporary workers), as well as non-

employees working under Tieto’s direction, such as self-employed individuals and those provided by third-

party undertakings primarily engaged in employment activities. The company recognizes that both employees

and non-employees across different levels and functions may be affected by corporate decisions related to

issues such as working conditions and organizational change.

Tieto regularly evaluates potential impacts and risks related to its workforce, with a particular focus on

employees in technical, remote, or high-stress roles, as well as underrepresented groups, including women

and minorities. The company recognizes that employees and non-employees in different regions may face

varying risk levels due to local labour market conditions, legislation, and societal norms. Insights are gathered

through ongoing monitoring, employee surveys, and engagement with workforce representatives, enabling

Tieto to ensure compliance with applicable laws, address region-specific risks, and proactively safeguard the

well-being of all workforce members.

The high-skilled nature of Tieto’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 Ukraine, which is classified as a high-risk country for modern slavery according to

the Global Slavery Index. The Global Slavery Index does not account for industry differences, which limits the

accuracy of the assessment's results. Operations in the IT and digital services sector also generally carry a low

risk of child labour and no operations have been identified to be at significant risk of incidents of child labour.

No material impacts on Tieto’s own workforce related to the implementation of climate transition plans or

carbon reduction activities were identified in the latest double materiality assessment.

Material negative impacts

Tieto’s material negative impacts related to diversity are mainly linked to gender equality, particularly with

regards to equal pay for female employees and female representation in leadership and technical roles. This

underscores ongoing gaps in equal opportunities and reflects systemic industry-wide challenges. Minority

groups, including people with disabilities, individuals from lower socioeconomic backgrounds, and LGBTQ+

employees, may also face limited representation. Other concerns include discrimination, implicit bias, unfair

hiring practices, and non-inclusive workplaces.

According to an analysis made by using the ITUCs Global Rights Index, the majority of Tieto’s operations are in

areas where the risks of violations of freedom of association and collective bargaining are low (58%).

However, 42% of operations are in areas where these risks are higher or not fully guaranteed. In countries such

as China, Ukraine, Poland, India and Serbia, employees’ rights to freedom of association, collective bargaining,

and social dialogue may be restricted. In these countries, Tieto strives to facilitate local forums where such

issues can be raised and addressed. For employees not covered by collective agreements, the company

applies employees' working conditions and terms of employment based on collective agreements applicable

to other employees in the organization.

Privacy is a key consideration for Tieto’s own workforce, a potential negative impact closely related to the risk

of mishandling of employee data, over-collection, or inconsistent application of privacy measures, which in

turn could infringe on employees' rights. The management of privacy for the company's own workforce is

explained in more detail under S4 Consumers and end-users.

Material positive impacts

Company-wide initiatives – including remote work opportunities, continuous learning, and a strong focus on

employee development through reskilling and upskilling – contribute to Tieto’s material positive impact on

both employees and non-employees. These efforts support working time flexibility, promote work-life

balance, and help secure employment, with consistent benefits across the regions where Tieto operates. Amid

rapid labour market changes driven by technological advancement, the company is committed to maintaining

a supportive and growth-oriented work environment. Structured training programmes further enhance skills,

promote internal mobility, and prepare employees for long-term career development in an evolving digital

landscape.

Tieto has identified an actual positive impact on Workforce privacy, underpinned by the company's strong

commitment to data protection. Personal data is safeguarded through secure technologies, regular security

audits, and strict adherence to regulations such as the General Data Protection Regulation (GDPR).

Transparent practices regarding data collection and usage further reinforce trust. These robust privacy

measures not only protect employees, but also contribute to a culture of accountability and integrity across

the organization. As a result, Tieto’s approach to data protection has a demonstrably positive effect on its

workforce.

Material risks

Tieto’s material risks related to Gender equality and equal pay for work of equal value are closely connected to

potential negative impacts on diversity and gender equality within the organization. Gender inequality can

undermine talent attraction and retention, reduce productivity and negatively affect the company's reputation,

which in turn can impact business and investment opportunities.

Privacy for own workforce constitutes a material risk for Tieto, as any breach or misuse of personal data could

result in significant negative impacts. If such a risk were to materialize, it could lead to regulatory and

reputational risks, in addition to the negative consequences for the individuals impacted.

Material opportunities

Material opportunities related to working conditions – specifically working time, work-life balance, and secure

employment – are linked to the positive impact described above. By continuously fostering a supportive work

environment, Tieto can benefit from higher employee retention, reduced recruitment needs and increased

operational stability, while simultaneously contributing to growth.

A further key material business opportunity for Tieto lies in ensuring equal treatment and equal opportunities

for all employees, encompassing diversity, training and skills development, and in advancing gender equality

and equal pay. Diverse and inclusive teams support innovation and enable the company to better serve a

broad customer base, thereby enhancing competitiveness and revenue potential. Employee training and skills

development can increase productivity, support internal mobility, and reduce recruitment costs, while fair

treatment and pay strengthen retention and engagement.


TIETO − ANNUAL REPORT 2025	72

Impacts, risks and opportunities management

Policies related to own workforce (S1-1)

Tieto 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 reflected in

key policies, including the Human Rights Policy, the Code of Conduct, the Health and Safety Policy, and the

Human Resources Policy. Management plays a key role in the implementation of these policies and promoting

clear company values aligned with the content of the policies.

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 Tieto is a

signatory). The policy describes the company’s approach to safeguarding the human rights of all individuals

affected by its business operations and partnerships, both within its own operations and throughout its value

chain. Core components of the policy include accountability for human rights across the value chain, regular

human rights due diligence, performance tracking and transparent communication of progress. It further

outlines the company's approach to grievances and remedies for human rights impacts as outlined in S1-3. The

policy is approved by the CEO, while the Chief Financial Officer is responsible for its implementation.

Tieto’s Code of Conduct (the Code) sets out the company’s ethical principles concerning its workforce and

operations. The Code is aligned with the UNGPs, OECD Guidelines, and UNGC, and it reinforces the company's

ethical commitments on topics such as freedom of association, health and safety, and fair employment. It

ensures compliance with laws concerning working hours, promotes work-life balance, and enforces a robust

non-discrimination policy which prohibits discrimination based on gender, identity, nationality, religion, race,

age, disability, marital status, sexual orientation, political views, or union membership. Additionally, the Code

outlines the company’s commitment to creating an inclusive workplace in which differences are welcomed

and respected, and where employees have equal opportunities for development through training, promotion,

continued employment and working conditions. The Code also establishes Tieto’s zero tolerance for bullying,

harassment, or violence, and strictly prohibits forced, compulsory, and child labour, including human

trafficking.

The Code applies across all aspects of employment, as well as interactions with suppliers, customers, and

partners. It applies to all employees, Board members, subcontractors, and representatives globally. Employees

agree to the Code upon joining the company, and are required to complete mandatory annual training on its

content.

The Human Resources Policy supports Tieto's commitment to fair recruitment, equal treatment, employee

well-being, and compliance with labour laws and international standards. It reinforces zero tolerance for

harassment and discrimination, promotes equal opportunities for development and advancement, and

emphasizes continuous learning and feedback. These principles are implemented through leadership

accountability, employee training, and regular policy reviews. The Human Resources Policy applies to all

employees and entities across Tieto and is embedded into corporate governance and supplier practices. It is

formally approved by Tieto's CEO, while the GET is accountable for its successful implementation.

Tieto’s commitment to employee well-being is further reflected in its Health and Safety Policy, which promotes

both physical and mental health by ensuring 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 HR is responsible for implementing the policy,

while the Head of Facility ensures that all company premises remain safe and compliant. Employees are

expected to support these efforts by promptly reporting hazards and incidents.

All policies are communicated internally and externally. Training materials are available to all employees,

including mandatory Code of Conduct e-learning, mandatory DEI training for people managers and training in

human rights. Performance against commitments outlined in all these policies is regularly reviewed, followed

up and addressed according to set procedures. All policies undergo annual updates, and significant revisions

informed by benchmarking, stakeholder consultation, and engagement with employee unions.

Processes for engaging with own workforce and workers’ representatives about impacts

(S1-2)

Tieto engages both directly with its own workforce and through workers' representatives including through

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 employee

surveys, performance evaluations including development planning, and various other engagement

mechanisms. Employee surveys are conducted multiple times a year to ensure a continuous dialogue within

the company. Quantitative results are openly shared with all employees, and the company fosters systematic,

ongoing dialogues to ensure transparency and engagement. The outcomes of these engagements are analyzed

to assess employee satisfaction, work-life balance, and overall well-being. Based on these findings, policies

and programmes are continuously adjusted to better meet employee needs. 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.

Tieto maintains agreements with workers' representatives to ensure that respect for the human rights of its

workforce is upheld as stipulated by the Code of Conduct. These agreements facilitate regular communication

and dialogue 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,

Tieto gains valuable insights into employee perspectives and strengthens a supportive and inclusive work

environment. The company does not have a Global Framework Agreement in place.

Regular local meetings with unions are held, in addition to specific meetings based on formal negotiation

meetings set by local laws. Monthly meetings with the European Works Council (EWC) are conducted,

including two in-person meetings per year. Responsibility for ensuring effective engagement lies with Human

Resources (HR). The Head of HR, as the most senior accountable role, oversees the implementation of

engagement initiatives and ensures that the insights gained from these processes inform Tieto's strategy

process and decision-making.

Process to remediate negative impacts and channels for own workers to raise concerns

(S1-3)

Tieto has formal processes in place to address and cooperate in the remediation of negative impacts on

individuals in its own workforce. These processes are governed by the Code of Conduct, Human Rights Policy,

Human Resources Policy and Employee Lifecycle Management Rules, which together establish the basis for

ethical conduct and human rights protection across the company’s operations. Where Tieto identifies that it

has caused or contributed to a material adverse impact on its workforce, appropriate and timely remediation

measures are implemented. These may include investigation, mitigation, and corrective actions, with lessons

learnt systematically leveraged to prevent recurrence. The effectiveness of remediation efforts is assessed

through stakeholder engagement, internal reviews, and performance tracking mechanisms.

Tieto’s mechanisms for handling grievance and complaints are an integral part of the company’s compliance

framework and are underpinned by the Code of Conduct and the Whistleblowing Rule (as described under

ESRS G1-1). The Whistleblowing Rule mandates that all reported concerns are to be investigated in a fair,

transparent, and timely manner and strictly prohibits any form of retaliation against whistleblowers.

The company provides multiple channels through which members of the workforce may raise concerns or

express needs. These include direct reporting to line managers, HR partners, or the Group Compliance

function, as well as a whistleblowing channel operated by an external service provider, enabling anonymous

submissions. The whistleblowing channel is accessible to all employees and other workers across all countries


TIETO − ANNUAL REPORT 2025	73

and subsidiaries. All reports submitted through this channel are logged, independently investigated, and

handled confidentially. The Group Compliance function tracks and monitors reported issues and ensures

protection against retaliation.

Severe or sensitive cases are escalated to the company’s Escalation Committee, composed of the Head of

Corporate Governance and Compliance, Head of Group Legal & Compliance, Head of Internal Audit, Head of

HR, and the Group Compliance Officer. Investigation outcomes are reported to the ARC on a biannual basis or

as otherwise required. The effectiveness of the whistleblowing channel is assessed through indicators such as

reporting rates, the proportion of anonymous cases, and response times. Employees also contribute to

evaluating the level of trust and accessibility of the grievance and complaints mechanisms through the annual

employee survey (read G1- MDR-T).

Tieto's workforce is made aware of these channels through onboarding, annual Tieto Essentials training, and

internal communication, including local employee handbooks.

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)

Tieto continues to take deliberate and structured action to uphold and promote freedom of association,

collective bargaining, and social dialogue across its operations. These efforts are rooted in our Code of

Conduct and reflect our commitment to respecting all human rights and fostering inclusive workplaces.

During the reporting year, Tieto actively facilitated the formation and strengthening of employee

representation committees and work councils in all countries of operation. In countries where collective

bargaining is not legally recognized, alternative forms of employee dialogue that comply with local legislation

were reinforced. These initiatives aim to prevent and mitigate negative impacts related to limited employee

voice and representation, while also enabling positive impacts such as enhanced trust, improved

collaboration, and higher workplace satisfaction.

Tieto also introduced measurement of employees' perception of their ability to express opinions and

participate in the representation structure through the annual employee survey. This serves as an additional

tool for tracking the company's effectiveness within this area and guiding further action. The company also

continued to conduct regular awareness-raising activities to ensure that employees and managers understand

the principles outlined in the Code of Conduct, including those related to labour rights.

To support continuous improvement, additional actions are planned for implementation during 2026. These

include annual reviews of employee representation structures and related activities to further strengthen their

effectiveness. Tieto will continue ongoing initiatives to promote constructive employee dialogue, such as

regular training sessions on the Code of Conduct and continuous engagement with employee representatives

across multiple channels. These actions apply across all geographies in which Tieto operates. In jurisdictions

where collective bargaining is subject to legal limitations, Tieto adapts its approach to ensure compliance

while continuing to encourage meaningful employee dialogue.

Activities are supported by dedicated HR resources and operational budgets allocated for training, employee

surveys, and engagement platforms. Progress is monitored through participation rates in training sessions,

feedback collected from employee representatives and HR resources, as well as outcomes of employee

engagement surveys.

Tieto also actively supports healthy working hours and the promotion of work-life balance. The company’s

workload planning and project management practices are designed to prevent systemic overtime. When

business demands temporarily increase, adjustments are made with oversight by HR and leadership to avoid

long-term strain. This helps prevent burnout and promote employee wellbeing, which are critical to long-term

workforce sustainability.

Overtime data is monitored monthly at both team and unit levels through time-tracking systems, managerial

reporting, and employee feedback. Trends are analysed to identify hotspots and take corrective action,

ensuring overtime stays low. Time-tracking systems, manager reports, and employee feedback are used to

identify potential negative impacts. Resources to manage overtime includes monitoring and analytics tools,

and manager training. Where excessive overtime is identified, managers are required to review workloads and

redistribute tasks. Employees are encouraged to take recovery time and make use of wellbeing resources.

In 2025, Tieto strengthened its commitment to gender equality and workforce diversity through a series of

targeted actions and strategic improvements. Building on the previous year's progress, the company

expanded its initiatives to ensure more inclusive practices and measurable progress. Key actions during 2025

included improvements to HR Rules and employee handbooks on inclusive hiring and equitable career

progression. The mandatory DEI training for managers was relaunched, and the Code of Conduct e-learning,

which includes modules about DEI, remained mandatory for all employees.

A new Employee Resource Group (ERG), the Rainbow Network, was launched in Finland to support diversity

and inclusion through dialogue, mentoring and community-building. This addition complements existing ERGs,

including Women@Tieto in Sweden and Norway, and iLead in India.

Tieto deepened its collaboration with female tech networks during the year, including continued partnerships

with Women in Tech (Finland and Sweden), ODA Nettverk in Norway and Riga Tech Girls in Latvia. New

partnerships were initiated in Sweden (Tjejer Kodar) and Finland (Mothers in Business) to increase regional

outreach and talent attraction.

Starting from 2024, the global pay gap analysis is an integral part of the annual compensation and

performance review process. In 2025, flagged disparities were addressed through targeted salary

adjustments. Enhanced data quality and job architecture improvements supported more accurate evaluations

and equitable compensation practices.

Targets for tracking gender representation and inclusive leadership were integrated into the company’s

sustainability dashboard and reviewed quarterly by HR and executive leadership. With the aim of building a

workforce that reflects the diversity of the communities it serves, Tieto remains committed to its aspiration of

achieving a 49/49 gender split across its workforce, with inclusive recognition of individuals identifying as

non-binary.

Long-term initiatives related to gender equality and diversity continued to progress. These include adding

diversity and inclusion-related questions to our employee survey, launching the leadership foundation

programme “Women in Leadership – Tech Consulting Foundation Programme”, implementing diversity-

focused recruitment, and enhanced analytics on gender representation in the recruitment funnel. In addition,

long-term incentive plans continue to include a target for increasing the share of female recruits.

Looking ahead to 2026, Tieto will expand its diversity, equity and inclusion training offerings for managers and

employees, follow-up on the results of the diversity and inclusion questions in the employee survey, establish

additional ERGs across the Nordics and other geographies, and implement targeted actions for recruitment

based on the funnel analytics. These actions are expected to further mitigate risks related to gender equality

and enhance the company’s reputation as an inclusive employer.

In 2025, Tieto continued to prioritize training and skills development as a strategic pillar for workforce

sustainability and secure employment, as well as an essential enabler of equal treatment and opportunity

across diverse employee groups. Skills development allows employees to build competencies that align with


TIETO − ANNUAL REPORT 2025	74

higher-value roles and evolving market requirements. This process is supported by a transparent job

architecture and fair, equitable evaluation frameworks. By embedding inclusive learning practices, Tieto works

to remove systemic barriers and promotes equitable career progression.

Tieto’s digital learning platforms and development frameworks are designed to be accessible to all employees,

regardless of location, role and background. Learning content is available in multiple formats and languages to

accommodate diverse needs. During 2025, Tieto Tech Consulting established a foundational leadership

programme for women (Women in Leadership – Tieto Tech Consulting Foundation Programme). It is designed

as a component of their wider Leadership Development Programme, intended to sharpen leadership skills and

foster a powerful network of female leaders.

Actions in this area are primarily delivered through existing HR processes and centrally managed programmes

(e.g. learning platforms, compensation review cycles). Related costs are embedded in operating functions

rather than tracked as separate Capex/Opex lines. Consequently, the action plan for S1 topics did not involve

significant operational (Opex) or capital (Capex) expenditures during the 2025 financial year. At this time, no

future significant financial resources (Opex or Capex) have been allocated to future action plans

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	2025	2024 Restated	2024
Gender equality and equal pay for work of equal value	Actual negative impact	33% of underrepresented gender in all board positions by 2026	30%	30%	30%
	Actual negative impact	30% of underrepresented gender in leadership positions by 2030*	28%	28%	25%
	Actual negative impact	37% recruitment of female recruits by 2025	30%	37%	34%
	Risk	Ensure the unexplained gender pay gap remains below 5% threshold and is further reduced towards 2026	1.9%	2.5%	2.6%
Diversity	Actual negative impact and opportunity	100% people managers trained in DEI on an annual basis	87%	86%	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	1%	1%	1%
Secure employment	Actual positive impact	Achieve a 90% completion rate for manager–employee dialogues that facilitates the establishment of individual work and/or development goals	93%	71%	81%
Training and skills development	Actual positive impact and opportunity	Achieve a high to very high score (≥8/10) in the annual employee survey measuring employees’ experience of continuous skill and learning development on the job	7.9	N/A	N/A
Definition of leadership positions is senior managers: Job grade 15 and higher + CEO * Average score of at least 8 on a Likert scale from 0-10.

Tieto’s target-setting methodology for own workforce-related topics integrates benchmarking, legislative

review, and employee needs assessment, drawing on data from internal surveys, compliance reports, and

input from unions and employee committees. In developing targets, the company also reviewed past

sustainability performance and actively engaged subject matter experts from relevant functions such as

Human Resources, Facilities, and Sourcing to provide insights on target relevance and feasibility.

This collaborative approach supports the development of targets that are both aligned with organizational

priorities and responsive to workforce needs. Targets for the following IROs were approved by the GET in

2024: Gender equality and equal pay for work of equal value, Diversity, Working time, Work-life balance and

Secure employment. The target related to Training and skills development was approved by the SSG in 2025.

Targets are aligned with commitments outlined in Tieto's corporate policies, including its Code of Conduct,

Human Resource Policy, Health and Safety Policy and Human Rights Policy. All targets disclosed in the

company’s Sustainability Statement 2024 remain unchanged as compared to 2025, except for the target

related to Secure employment, which has been revised from "Annual My Growth completion rate of 90% for all

employees, covering work and development goals" to "Achieve a 90% completion rate for manager-employee

dialogues that facilitates the establishment of individual work and/or development goals" in order to improve

understandability.

During 2025, Tieto developed one new target related to the material topic Training and skills development.

This target aims to track the effectiveness of the company's commitment to ensure that employees are trusted,

qualified, and continuously developing their skills. The target is defined as achieving a high to very high score

(≥8/10) in the annual employee survey, measuring employees’ experience of continuous skill and learning

development on the job. Responses are provided on a 0-10 scale, and results are aggregated to calculate an

average score, which is then used to assess and report performance against the target.

In 2025, Tieto also established a clear and outcome-oriented target to strengthen collective bargaining,

freedom of association and social dialogue across all countries of operation. The objective is to actively

facilitate the exercise of worker representation rights by ensuring that all employees have access to effective

structures, resources, and necessary support. This includes implementing mechanisms for dialogue, providing

training for employee representatives, and maintaining transparent communication channels. Target-related

activities will be implemented during 2026 and performance against the target will be disclosed in the 2026

Sustainability Statement.

All targets, except for share of female recruits and the training and skills development target, have 2024 as the

base year. The share of female recruits uses 2020 as its base year, with a baseline value of 27%. The base year

for the training and skills development target is 2025 with a baseline value 7.9.


TIETO − ANNUAL REPORT 2025	75

The target scope covers all employees except for the following targets:

• Senior management by gender: Data does not include Avega, Bekk, or EVRY India, as these entities operate

under a different job grading system.

• DEI training completion rate: Excludes Bekk, which operates fully as a portfolio company.

• Training and skills development: The scope includes all employees, except for those in entities not yet

integrated into Tieto's human capital management platform Workday.

Targets are measured annually, with specific target periods outlined in the target table. Additionally, several

key targets are monitored quarterly, including reaching 30% of the 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 manager-employee dialogues.

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.

Tieto engages employees in tracking target performance. 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 the 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.

Target performance

In 2025, 30% of board positions were occupied by the underrepresented gender, maintaining the same level

as in 2024. The company is progressing as expected, with a 3-percentage point gap that necessitates ongoing

efforts but does not indicate any major deviations from the planned course.

With 28% of leadership positions held by underrepresented genders, the company is making progress towards

the 2030 target of 30%, but further efforts are necessary. The 31% female recruitment rate is below both the

company's initial plan and the previous years' figures. 2025 has been a particularly challenging year due to

reduced recruitment volumes and the absence of a graduate programme, which has typically attracted more

female candidates. Although recruitment fell short of the target, ongoing analysis of the recruitment funnel,

including sourcing channels, role-specific actions, and job ad language review, is expected to drive improved

outcomes in 2026.

In 2025, Tieto conducted another company-wide assessment of the gender wage gap, aiming to keep the

unexplained (adjusted) gap below 5%. The company successfully further decreased its global result to 2%,

from 3% in 2024. This positive outcome underscores Tieto's dedication to pay equity through transparent

practices, benchmarking, and structured compensation processes. Tieto continues to uphold its ongoing

commitment to reducing disparities by enhancing monitoring and performing regular reviews, ensuring

fairness and equity are central to its compensation practices.

The target of achieving 100% annual training in DEI for all people managers was not fully reached in 2025.

Although the training was initiated earlier this year than in 2024, it overlapped with organizational

restructuring programmes and other ongoing learning activities in some business areas, potentially affecting

completion rates.To improve completion rates, a revised schedule for this training is proposed for 2026,

including an earlier roll-out of the training together with other training activities for managers, as well as a

stricter completion deadline.

Tieto’s commitment to secure employment is reflected in its target of achieving a 90% completion rate

(relative to the total employee headcount) for manager–employee dialogues to facilitate the establishment of

individual work and/or development goals. The result for 2025 is 93%.

The result for Tieto’s target to promote work–life balance by maintaining overtime at a low level – not

exceeding 3% of normal average working time (calculated as the percentage of total overtime hours relative to

normal average working time across the workforce) – amounted to 1% in 2025. This outcome indicates that

the company continues to effectively manage workloads and support employee well-being; however, ongoing

attention is required to ensure that variations across business areas and geographies are addressed and that a

sustainable balance between performance and employee health is maintained.

The training and skills development target is to achieve a high to very high score in the annual employee

survey, measuring employees' experience of continuous skill and learning development on the job.

Performance against this target is evaluated using a 0–10 Likert scale, where scores of 8 and above indicate

strong achievement. In 2025, the average score was 7.9.

Characteristics of the undertaking's employees (S1-6)

In 2025, Tieto recorded an employee turnover rate of 17%, of which 8% represented voluntary turnover. In

total, 2 654 individuals left the company. During the reporting period, Tieto completed the divestment of its

Tech Services business. This strategic transaction had a significant impact on the Group’s workforce profile. As

a direct result of the divestment, the total number of employees at year-end decreased by approximately 30%.

Prior to the divestment, the reported headcount for the previous year stood at 24 092 employees. Following

the transaction, and after restating the comparative figures to reflect the new organizational structure, the

adjusted employee headcount for 2024 is 16 737. The reduction in headcount is primarily attributable to the

transfer of personnel associated with the divested business. After the divestment, the percentage of females

at Tieto increased to 34% in 2024 and 2025.

Employee data is collected via 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 turnover in reporting period


	2025	2024 Restated	2024
Total number of employees who left the company	2 654	2 653	3 566
Turnover rate %	17%	16%	14%

Employee headcount by gender


	2025	2024 Restated	2024
Gender	Number of employees (headcount)	Number of employees (headcount)	Number of employees (headcount)
Male	9 812	10 942	16 422
Female	5 141	5 782	7 655
Other	13	13	15
Not reported	0	0	0
Total employees	14 966	16 737	24 092


TIETO − ANNUAL REPORT 2025	76

Employee headcount in countries with at least 50 employees


2025		2024 Restated	2024
Country	Number of employees (headcount)	Number of employees (headcount)	Number of employees (headcount)
Austria	269	278	278
Bulgaria	577	690	690
China	869	1 026	1 026
Czech Republic	641	741	2 504
Denmark	63	53	54
Estonia	61	75	131
Finland	1 672	1 753	3 099
Germany	81	103	103
India	2 440	2 663	4 178
Latvia	772	850	1 159
Lithuania	72	76	136
Norway	2 869	2 997	3 874
Paraguay	86	91	91
Poland	767	940	955
Serbia	86	92	92
Slovakia	<50	<50	148
Sweden	2 151	2 386	3 683
Ukraine	1 356	1 699	1 699
US	89	118	118

Information on employees by contract type, broken down by gender (headcount)


	Female	Male	Other	Not disclosed	Total
Number of employees
Result 2025	5 141	9 812	13	0	14 966
Restated 2024	5 782	10 942	13	0	16 737
Result 2024	7 655	16 422	15	0	24 092
Number of permanent employees
Result 2025	5 046	9 645	13	0	14 704
Restated 2024	5 656	10 610	13	0	16 279
Result 2024	7 503	15 999	15	0	23 517
Number of temporary employees
Result 2025	95	167	0	0	262
Restated 2024	126	332	0	0	458
Result 2024	152	423	0	0	575
Number of non-guaranteed hours employees
Result 2025	3	5	0	0	8
Restated 2024	4	3	0	0	7
Result 2024	5	5	0	0	10

Collective bargaining coverage and social dialogue (S1-8)

Tieto is committed to fostering fair and inclusive working conditions through collective bargaining and

structured social dialogue. Across its operations, the company ensures that employees have access to

mechanisms to influence their working conditions, either through formal collective bargaining agreements or,

where such agreements are not legally recognized, alternative representation structures.

The collective bargaining coverage and social dialogue (S1-8) data for 2024 was collected through decentralised

inputs and was not captured by business affiliation. Consequently, Tech Services employees cannot be reliably

identified or separated retrospectively without significant assumptions or manual reconstruction, which would

compromise the faithful representation of the information. As a result, the 2024 figures include Tech Services

employees, while the 2025 figures exclude them, affecting comparability between the periods. The Group considers

the restatement of S1-8 comparative information to be impractical in accordance with ESRS requirements and

discloses this limitation to provide transparency to users of the sustainability statement.

In countries where collective bargaining is practiced and legally supported, a significant portion of Tieto’s workforce

is covered by collective bargaining agreements that shape key aspects of employment, including wages, working

hours, and other terms and conditions. In jurisdictions where employees are not directly covered by such

agreements, Tieto may still apply principles or terms derived from collective bargaining agreements applicable to

other employee groups or from industry-wide agreements established by other undertakings. This approach ensures

consistency and fairness in employment practices across the organization. The percentage of total employees

covered by collective bargaining agreements during 2025 was 42% (42%).

Within the European Economic Area (EEA), Tieto actively promotes social dialogue through structured engagement

with employee representatives. This includes regular meetings, feedback sessions, and collaborative initiatives

aimed at improving workplace conditions and employee satisfaction. Social dialogue is a cornerstone of the

company’s HR strategy, enabling mutual understanding and trust between employees and management. The

percentage of total employees covered by workers’ representatives in the EEA during 2025 was 71% (66%).

Tieto has also established a formal agreement for representation through a European Works Council (EWC).

This council serves as a transnational platform for employee representation, allowing for consultation and

dialogue on matters affecting employees across multiple EU member states. The EWC complements national-

level representation structures and reinforces the company’s commitment to transparency and employee

involvement in decision-making processes.

Collective bargaining coverage and social dialogue


	2025		2024
	Collective bargaining coverage	Social dialogue	Collective bargaining coverage	Social dialogue
Coverage Rate	Employees – EEA	Workplace representation (EEA only)	Employees – EEA	Workplace representation (EEA only)
0–19%	Bulgaria, Czech Republic, Estonia, Germany, Latvia, Lithuania, Netherlands, Poland, Romania, Slovakia	Bulgaria, Czech Republic, Denmark, Estonia, Latvia, Netherlands, Romania Slovakia	Bulgaria, Czech Republic, Denmark, Estonia, Germany, Latvia, Lithuania, Poland, Slovakia	Bulgaria, Czech Republic, Denmark, Estonia, Latvia, Slovakia
20–39%	Denmark	—	—	—
40–59%		—	—	—
60–79%	Norway	Norway	—	Poland
80–100%	Austria, Finland, France, Sweden	Austria, Finland, France, Germany, Lithuania, Poland, Sweden	Austria. Finland, Norway, Sweden	Austria. Finland, Germany, Lithuania, Norway, Sweden


TIETO − ANNUAL REPORT 2025	77

Diversity metrics (S1-9)

During the reporting period, the gender distribution within Tieto’s top management shifted, reflecting progress

in the company’s commitment to diversity and inclusion. The number of female executives in the GET

increased from one to two, while the number of male executives rose from eight to nine, resulting in an overall

expansion of the top management team. Consequently, the proportion of women at the top management level

increased from 11% to 17%. Data is collected from Workday in terms of headcount by the end of the year.

Employees at top management level


	2025		2024 Restated	2024
Gender	Number of employees at top management level	Percentage of employees at top management level	Number of employees at top management level	Number of employees at top management level
Male	9	82%	8	8
Female	2	18%	0	1

Age distribution across workforce

The age distribution of Tieto’s workforce remained broadly consistent with the previous year, indicating

stability in the company’s demographic profile. As of the end of the reporting period, employees under 30

years of age represented 16% of the total workforce, compared to 18% in the previous year. The proportion of

employees aged 30 to 50 increased slightly to 64% from 62%, while those over 50 years of age accounted for

20%, compared to 21% last year.

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.

Age distribution in workforce


	2025		2024 Restated	2024
Age distribution in workforce	Headcount of employees	Percentage of employees	Headcount of employees	Headcount of employees
Under 30 years old	2 382	16%	3 020	4 259
30–50 years old	9 550	64%	10 570	14 890
Over 50 years old	3 034	20%	3 147	4 943

Remuneration metrics (pay gap and total remuneration) (S1-16)


2025		2024 Restated	2024
Remuneration ratio	32%	32%	34%
Gender pay gap	12%	14%	12%
Adjusted gender pay gap	1.9%	2.5%	2.6%

Tieto conducted a thorough analysis of employees' base pay to assess the gender pay gap, adhering to well-

defined principles and rules. The assessment covered both the unadjusted pay gap and adjusted pay gaps. In

2025, the unadjusted pay gap amounted to 12%, representing 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 was 2% during 2025. The adjusted gender pay gap evaluation framework

compares compensation within specific peer groups based on country, business, and job profiles for

employees in the centralized human resource management system, and equivalent categorizations for

employees outside the centralized system. This approach ensures that compared peer groups consist of

individuals performing a similar type of work in the same business and location. In addition, the analysis factors

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 Tieto 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, with supplementary inputs from country HR representatives where needed. For 2025, the total

remuneration ratio was 32%.

Total remuneration data was collected at individual level from Workday, and includes annualized salary,

incentives, and cash allowances. Data on benefits in kind was gathered through local HR teams. Where

applicable, holiday pay information was sourced from local payroll systems. To allow for a meaningful

comparison across countries, Tieto applied the World Bank's latest 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.

The 2025 results were influenced by organizational changes during the year, including the appointment of a

new CEO and the divestment of Tech Services, both of which affected the overall composition of the

workforce and the resulting total remuneration ratio.

Incidents, complaints and severe human rights impacts (S1-17)

Tieto collects data on incidents, complaints, and severe human rights impacts through the company’s

Whistleblowing Unit (incl. Whistleblowing Channel) and HR partners. Data is consolidated at the end of the

reporting period for reporting purposes. The company also collects any complaints that may have been

channelled to the National Contact Points for OECD Multinational Enterprises from Group Legal & Compliance.

During 2025, a total of 44 cases were submitted to HR partners and the Whistleblowing Unit. Out of these, the

number of reported discrimination and harassment incidents amounted to seven for the reporting year. Out of

these, two cases contained discrimination allegations (one on basis of nationality and one on gender), while

five cases were harassment-related. Following due investigation, four incidents of harassment were confirmed

and remediated, while the remaining cases are still subject to action.

No cases of severe human rights incidents – including forced labour, human trafficking, or child labour – were

reported during the year. If such incidents had occurred, the company would have disclosed the number of

cases and the extent to which they represented non-compliance with the UNGPs, the ILO Declaration on

Fundamental Principles and Rights at Work, or the OECD Guidelines for Multinational Enterprises.

Incidents and complaints


	2025	2024
Number of incidents of discrimination and harassment	7	30
The number of complaints filed through the Tieto channels for raising concerns	44	62
The total amount of fines, penalties, and compensation for damages as a result of the incidents and complaints disclosed above	0	0


TIETO − ANNUAL REPORT 2025	78

S2 – Workers in value chain

Strategy

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

model (ESRS 2 SBM-3)

The outcome of the 2025 double materiality assessment confirmed that Gender equality and equal pay for

work of equal value, as well as Diversity for workers in value chain, remain material potential negative impacts

for Tieto. These reflect persistent industry-wide challenges and the continued use of subcontracted labour

and software/cloud vendors. In contrast, Collective bargaining and Freedom of association are no longer

considered material IROs.

The divested Tech Services business relied heavily on hardware procurement and maintenance. While it did

not manufacture hardware, its operations were closely tied to hardware supply chains, including sourcing from

high-risk geographies. Post-divestment, Tieto's exposure to hardware-related activities and costs has

decreased from approximately 5% to less than 1% of revenue, and the labour‑related risks previously linked to

these activities now sit mainly with third‑party providers, reducing Tieto’s direct exposure. Consequently, the

materiality of Collective bargaining and Freedom of association for workers in the value chain is reduced.

Tieto’s supplier base is concentrated in the Nordic region, with over 60% of external spend directed to

suppliers in Finland, Sweden, and Norway. However, the company acknowledges that indirect links to adverse

impacts may exist through lower-tier suppliers operating in regions with weak labour protections.

As Tieto continues to engage software and cloud providers and subcontractors, the potential negative impacts

related to Diversity and Gender equality and equal pay for work of equal value remain relevant due to

persistent industry-wide challenges, including structural gender inequalities and underrepresentation.

Two categories of workers have been identified as potentially impacted:

• Workers employed by service providers (e.g. software/cloud vendors, facility and postal services)

• Subcontracted workers, including software developers and leased labour

Potentially affected groups could include:

• Migrant workers, particularly in facility services, who may face exploitation and limited protections

• Women in male-dominated sectors, who may experience discrimination and pay gaps

• Young and subcontracted workers, who may face job insecurity and lower wages

• Remote workers, who may experience isolation and lack of protection

Tieto has not identified child labour or forced or compulsory labour in its own operations as material risks.

However, there is an elevated risk of such practices further down the supply chain, particularly in the

extractive sector from which the metals and minerals used in the hardware — such as laptops and mobile

phones used by Tieto employees — are sourced from. 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 Tieto does not directly source raw

materials, it partly 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.

In 2025, Tieto did not identify any cases of actual or 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. One case from 2024, involving a

customer inquiry relating to Tieto’s suppliers located in Israel, remains partially open. Following the divestment

of the Tech Services business, one of these suppliers is no longer a part of Tieto's value chain. Dialogue with

the remaining supplier has improved internal understanding of potential human rights risks.

Tieto continues to strengthen its human rights due diligence processes, with a focus on proactive management

of exceptional cases. The company is not aware of any severe human rights incidents reported in its value

chain during 2025.

Given that Tieto 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)

Tieto 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 embedded in several key policies, including the Human Rights Policy, Code of

Conduct, the Supplier Code of Conduct (the Supplier Code) and Tieto's Source to Pay Policy. The commitments

in the Human Rights Policy apply equally to Tieto’s own employees and to workers across its value chain. In

addition to the Human Rights Policy and the Code of Conduct, the Supplier Code is the key document that

addresses impacts on value chain workers. It communicates the company's ethical and business principles,

which all business partners are expected to follow. To clarify, should Tieto acquire new businesses, existing

supplier contracts do not initially include Tieto’s Supplier Code. However, the Supplier Code is incorporated

into all new contracts and during any contract renewals.

As stated in the Supplier Code, Tieto is committed to upholding and respecting all internationally recognized

human rights. The company 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 is fully aligned with

applicable ILO conventions, covering the prohibition of forced and child labour, the right to freedom of

association and collective bargaining, as well as explicitly opposing all forms of modern slavery, including

human trafficking. Building on these principles, it also sets additional expectations tailored specifically to

Tieto's standards.

The Supplier Code outlines minimum requirements in areas such as human rights, labour conditions,

environmental responsibility, business ethics, and legal compliance. It establishes requirements for equal

treatment and opportunities for all employees and mandates that employees must not face discrimination or

harassment – neither physical, sexual, psychological, nor 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.


TIETO − ANNUAL REPORT 2025	79

Human rights must be understood, respected, and applied equally to all workers, whether they are temporarily

or permanently hired or contracted. In situations where local laws conflict with the principles in the Supplier

Code, the higher standard shall prevail.

Input for the annual review of the Supplier Code is gathered through benchmarking, stakeholder interviews,

and, when needed, expert feedback. This process ensures alignment with stakeholder priorities and addresses

their concerns. Annual reviews ensure the policy remains responsive to evolving stakeholder interests and

expectations. No significant changes to the Supplier Code have been adopted during the reporting year.

Tieto's engagement with value chain workers is mostly 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 of the Supplier Code and comply with the requirements. Tieto strives to embed

the Supplier Code across its supply chain through integration into contracts and compliance mechanisms.

Responsibility for implementing the Supplier Code lies with Tieto'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 Tieto employees, businesses and operations, and its objective is to

ensure that the company engages with suppliers that meet Tieto’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. All employees are informed of the policy content through a mandatory e-learning

module in Tieto Essentials.

Processes for engaging with value chain workers about impacts (S2-2)

Given that most of Tieto’s value chain workers are several tiers removed, the company has limited influence

over their rights to equal treatment and opportunities. While direct engagement may occur during on-site

audits or targeted dialogues, no general process for interacting with value chain workers has been established.

As a result, 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 follow-up activities from 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 the interactions with Tieto's suppliers can guide decisions and actions to

manage actual and potential impacts on value chain workers.

The Group CPO, along with Sourcing Managers and Group Sustainability, is responsible for ensuring that the

engagement with suppliers occurs and that the results, when deemed valuable, influence Tieto’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.

As outlined under Actions (S2-4), in 2025 Tieto initiated direct dialogues with value chain workers at three

facility management suppliers across four sites in Stockholm, Helsinki and Pune. These dialogues aim to

enhance understanding of the company’s impacts and guide future actions.

Processes to remediate negative impacts and channels for value chain workers to raise

concerns (S2-3)

Tieto 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. Tieto has not assessed whether the value

chain workers are aware of and trust the company’s processes to raise their concerns or needs. Nor has Tieto

explicitly required its suppliers to provide a channel for value chain workers to raise concerns. As a result, the

company does not track or monitor the effectiveness of suppliers' channels.

On-site audits are one way to help identify significant risks to workers within the value chain. If an audit reveals

a potential issue, Tieto collaborates with the supplier to develop an action plan to remedy it within a specified

timeframe. In cases where a complaint or issue arises, Tieto 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 Tieto 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)

Tieto is committed to identify, mitigate, and prevent any negative impact related to the company’s operations

throughout the value chain. Key actions aimed at preventing or mitigating identified potential impacts,

addressing the two material sub-subtopics relevant to value chain workers during the reporting year are

outlined below. The scope of the key actions covers Tieto’s suppliers.

• Sustainability assessment: Introduced in 2024 and embedded in the supplier selection process to evaluate

sustainability commitment. The results inform final decisions, ensuring alignment with Tieto’s vision and

policy objectives.

• Annual risk assessment: All suppliers are assessed and categorized by risk level, enabling targeted

mitigation efforts. High-risk suppliers underwent follow-up activities.

• Follow-up activities:

◦ Pre-divestment reviews: Two management reviews with hardware suppliers were conducted

in order to clarify material sourcing and mitigate risks from geopolitical instability and

sanctions, helping ensure compliance with regulations like the EU Conflict Minerals

Regulation.

◦ Supplier evaluations: Three comprehensive evaluations were carried out via digital meetings

to assess suppliers’ alignment with ISO 9001, ISO 14001, internal privacy and security

standards, and the Supplier Code. No findings were identified.

◦ Supplier profile reviews: Three questionnaire-based reviews focused on adherence to ISO

9001, 14001, 27001, and 27701 were conducted.

◦ SBT dialogues: Five targeted engagements encouraged suppliers to commit to setting or

obtaining validation of their Science-Based Targets, fostering collaboration and continuous

improvement towards achieving net-zero carbon emissions throughout the value chain.

◦ Worker dialogues: Direct engagement with value chain workers (cleaning, canteen, and

reception services) took place at three sites located in Stockholm, Helsinki and Pune. These

dialogues aim to deepen understanding of Tieto’s impacts and to inform future actions.

◦ Customer team support: Dialogues with customer teams supported by suppliers in high-risk

areas requiring heightened human rights due diligence. Collaborations with customer teams

help identify and address human rights concerns in the company’s value chain, mitigating

potential negative impacts on people and reputational and operational risks for the company.

Tieto outlines clear expectations for suppliers to comply with all applicable laws and the Supplier Code, which

underpins responsible supply chain practices. All onboarded suppliers undergo sanctions checks. The Group


TIETO − ANNUAL REPORT 2025	80

Sourcing and Partnerships Function, led by the Group CPO, monitors contracts to uphold standards and

compliance.

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.

The Source to Pay Policy includes a rule that no suppliers should be invited to a process unless they have a fair

chance to win the bid. Moreover, Tieto’s Code of Conduct states that colleagues and external stakeholders

such as suppliers and business partners are to be treated with respect. This includes avoiding situations where

Tieto’s requests would directly or indirectly demand suppliers to work excessive hours, which would cause a

negative impact on value chain workers. When alerted to potential negative impacts, sourcing managers

initiate dialogue with suppliers to verify findings and agree on corrective actions, typically involving

management-level meetings. Suppliers are also required to report violations of the Supplier Code, monitored

through sourcing dialogues and the Whistleblowing Channel.

Tieto has not implemented initiatives specifically aimed at delivering positive impacts for value chain workers

and therefore does not monitor their effectiveness.

In 2025, Tieto initiated a project to enhance its supplier assessment tool to better categorize suppliers by

sector-specific risks. This project, when completed in Q1 2026, will enable a deeper understanding of and

more accurately identify where in the supply chain actual and potential negative impacts related to equal

treatment and opportunities for workers occur.

No significant Opex or Capex was allocated to the material S2 topics in 2025. However, in 2025, Tieto invested

EUR 0.1 million in a new Supplier Due Diligence tool to improve both automation and usability as well as reduce

manual errors. A dashboard will be developed to streamline follow-ups and enhance data reliability.

Metrics and targets

Targets related to managing material negative impacts, advancing positive impacts, and

managing material risks and opportunities (S2-5)

Aligned with Tieto’s policy objectives, the inclusion of the Supplier Code in all supplier contracts is a key

ambition. Progress is monitored via Tieto’s Supplier Dashboard.

In 2025, Tieto initiated target-setting efforts for the material sub-subtopics Diversity and Gender equality and equal

pay for work of equal value, specifically in relation to workers within its value chain. The double materiality

assessment indicated a potential negative impact, rather than a confirmed one, due to limited data availability. This

lack of data makes it difficult to verify whether Tieto contributes to inequality among value chain workers.

Looking ahead to 2026, Tieto will carry out a targeted risk assessment of its supplier base, focusing on these

material sub-subtopics. The aim is to identify suppliers with elevated risk profiles and initiate engagement to

better understand potential impacts and identify actionable steps to foster diversity and gender equality.

Based on insights from this process, Tieto aims to define a measurable, outcome-oriented target by the end of

2026, supported by continuous performance monitoring to ensure progress and accountability. As the target

has not yet been established, direct engagement with value chain workers has not yet taken place in the

target-setting process, in tracking performance against future targets, or in identifying lessons learned and

opportunities for improvement based on the company’s performance to date.


TIETO − ANNUAL REPORT 2025	81

S4 – Consumers and end-users

Strategy

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

model (ESRS 2 SBM-3)

In Tieto’s double materiality assessment, Privacy has been identified as a material topic for both the company’s

own workforce as well as its consumers and end-users who may be materially impacted through its

operations, products, services, and business relationships. Privacy is considered a material risk, a source of

actual positive impact, while also carrying the potential of causing a negative impact.

Tieto’s positive impact 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

towards all parties. Building trust through strong privacy practices enhances employee and customer loyalty

and satisfaction.

Tieto’s potential negative impact primarily stems from potential personal data breaches that, if they occur,

could lead to a range of adverse consequences for individuals, including disruptions to data processing (e.g.

service outages), physical harm (particularly in contexts like patient safety), and significant economic or social

disadvantages. Other potential outcomes include discrimination, financial loss, identity theft or fraud,

reputational damage, and broader infringements on individuals’ rights and freedoms. All potential personal

data breaches that affect individuals stem from violations of data confidentiality, availability or integrity. These

risks apply broadly, but their impact depends on the individual's category, the type of personal data, and

whose data is being processed. Vulnerable groups and individuals whose sensitive personal data is handled

are particularly at risk and face potentially more severe consequences. For the reporting period, no material

negative impact on consumers and end-users caused by Tieto has been identified.

In terms of risks, Tieto remains particularly attuned to data privacy and cybersecurity. Following the

divestment of its Tech Services business — including data centres and managed infrastructure — the

company’s involvement in critical IT infrastructure has narrowed. However, Tieto continues to handle sensitive

information within its core software and digital engineering operations. Any breach affecting its remaining

platforms or client data could still have significant reputational, regulatory, or financial repercussions. To

address these risks, Tieto conducts Privacy Impact Assessments (PIAs) in its capacity as a Data Processor for

customers who act as Data Controllers. PIAs are also carried out when Tieto acts as a Data Controller for its

own workforce’s personal data. In addition, enhanced Data Protection Impact Assessments (DPIAs) are

performed in accordance with the requirements of the GDPR. These assessments help identify privacy risks,

enabling Tieto to take measures to mitigate those risks and protect individuals from negative impacts.

During the development of products or services – both for customers and Tieto's internal use – Tieto carefully

assesses the purpose, scope and context of personal data processing, considering the perspectives of all

categories of individuals whose data is involved. Customers may be in control of personal data of various

groups from employees to consumers and end-users in sectors of society such as finance, healthcare,

education, social services and welfare, and security. Products and services that are inherently harmful to

people and/or products for which physical product safety information is required are not applicable to Tieto.

Impact, risk and opportunity management

Policies related to consumers and end-users (S4-1)

Tieto’s main policies related to privacy for consumers and end-users and own workforce are the Privacy Policy

and the Human Rights Policy. More information about the Human Rights Policy can be found under S1-1.

The Privacy Policy aims to ensure the rights and freedoms of all individuals, including the company's own

workforce as well as consumers and end-users, in relation to their personal data. It establishes common

principles for protecting personal data in line with data protection laws, particularly the GDPR. In addition, the

policy outlines how the company processes, manages, and safeguards personal data across its operations.

Key objectives of the policy includes 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 related to 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 Tieto’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 annually

complete the company’s e-learning on privacy. 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. The policy is

reviewed annually and no major changes were made to the policy during 2025.

Confirmed personal data breaches are reported by Tieto, in its role as Data Processor, to its customers who act

as data owners. It is the responsibility of the customer to evaluate the severity of any breach. Tieto has not

identified any cases of non-compliance with 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

2025.

Processes for engaging with consumers and end-users about impacts (S4-2)

As both a Data Controller and Processor, Tieto is committed to protecting personal data and upholding

individuals’ privacy rights in all its services and solutions. In its role as a Data Processor, Tieto adheres to the

GDPR, ensuring compliance with legal obligations when partnering with customers acting as Data Controllers.

In this capacity, Tieto processes personal data strictly based on the instructions and requirements of its

customers, who remain responsible for ensuring transparency and safeguarding the privacy of their

consumers and end-users.

Tieto integrates Data Protection by Design and Default into its services and products, as required by GDPR

Article 25. Potential privacy risks to individuals, including those who may be particularly vulnerable, are

assessed and mitigated throughout the development of products and services. Once delivered, services are

carried out according to customer contracts and specific data processing instructions that are provided by


TIETO − ANNUAL REPORT 2025	82

customers. When Tieto collaborates with customers, privacy-related discussions are part of day-to-day

operations, such as the sales process or service delivery. As a Data Processor, Tieto does not interact directly

with consumers or end-users since the responsibility for ensuring data privacy and transparent

communication with end-users rests with the company’s customers, who act as Data Controllers.

When Tieto acts as a Data Controller – for instance, when handling the personal data of its own workforce,

contacts of customers or external partners, website or office visitors, and employee candidates – the

company follows GDPR as applicable. For example, in line with GDPR Article 25, Tieto assesses potential risks

to individuals’ privacy and mitigates the risks before carrying out planned personal data processing.

In its Data Controller role, Tieto ensures that individuals are informed about their personal data processing.

Individuals are also given the opportunity to raise concerns, ask questions, or exercise their privacy rights. In

cases involving employees, Tieto may engage with their representatives – such as members of the European

Works Council (EWC) – to ensure full transparency. Employees are not broadly involved in personal data

processing decisions; instead, the EWC represents their interests.

As Tieto 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.

Processes to remediate negative impacts and channels for consumers and end-users to

raise concerns (S4-3)

When acting as a Data Processor, Tieto supports its customers (the Data Controllers) in managing personal

data. However, it remains the Data Controller’s responsibility to provide channels for consumers and end-

users to 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. Tieto 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.

When acting as a Data Controller, Tieto ensures transparent communication on how individuals can reach out

on privacy-related matters. Tieto's own workforce has access to an internal Privacy Notice, while a public

Privacy Notice is available for external individuals, such as customer representatives, partners, suppliers,

visitors, and employee candidates. A personal data breach management procedure has been embedded into

the security incident management process and system.

Additionally, Tieto's whistleblowing channel allows for the reporting of privacy concerns. To ensure the

effectiveness of the company’s channels for raising issues, the company conducts monthly evaluations of

process performance and reports the results to top management at least twice a year. Tieto has not conducted

a specific assessment to determine whether its privacy notice is deemed to be a trusted way to raise concerns,

given 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 that jeopardize confidentiality, availability of services, or individuals' personal data

are managed through Tieto’s security incident management process, which includes a dedicated personal data

breach management procedure. Reported breaches are investigated, resolved, and reported to relevant

stakeholders according to GDPR Article 33.

In addition, internal privacy assessments and external auditing provide information about possible issues

impacting the privacy rights of individuals. If Tieto 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 Rights Policy. If a negative impact to

fundamental rights and freedoms of persons, and in particular their right to the protection of personal data, is

identified, Tieto follows a structured process aligned with its Human Rights Policy, Security Policy and Privacy

Policy. Tieto's security incident process, including a personal data breach management procedure, ensures

prompt investigation and containment, transparent communication with affected parties and authorities, and

implementation of corrective measures such as data recovery, deletion, or compensation where appropriate.

Lessons learned are applied to strengthen policies, controls, and training to prevent recurrence. Oversight is

provided by the Group Privacy and Data Protection function, with material cases reported to the ARC.

Actions

Taking action on material impacts on consumers and end-users, and approaches to

mitigating material risks and pursuing material opportunities related to consumers and end-

users, and effectiveness of those actions (S4-4)

During 2025, Group Privacy focused on contributing to broader Tieto-level projects led by functions such as

Group Quality Assurance, Group CIO, and Group Sourcing. These initiatives have directly strengthened Tieto’s

overarching privacy framework, with positive impacts on both the internal workforce and customer-facing IT

services. Other Group-level efforts during 2025 included:

• The divestment of the Tech Services business – where Group Privacy supported the transition from the

privacy capabilities perspective.

• External ISO 27701 audit and certification – with the purpose of identifying privacy-specific non-

conformities.

• Renewal of legacy IT systems, including the internal solutions portfolio, to ensure effective management

and compliance with regulations such as privacy, security, and AI requirements.

• Process updates in Sourcing and Supplier Management – aiming to improve operative efficiency and

quality of required privacy outcomes.

In addition, Tieto also conducts ISAE 3000 audits on an annual basis as a means to evaluate the effectiveness

of the company’s privacy activities and processes. Tieto aims to complete the implementation of identified

privacy improvement measures within a short-term time horizon, typically within 12 months of each annual

audit. These initiatives aim to strengthen the company’s GDPR compliance and ensure better protection of

individuals’ privacy. Tieto’s internal privacy improvement efforts focus on proactive and preventive measures

aimed at avoiding non-compliance with applicable laws. In addition, these actions improve the company’s

privacy capabilities and maturity, enabling the delivery of better services with robust privacy solutions to

customers. This in turn supports customers in fulfilling their responsibilities and obligations when processing

consumers' and end-users' personal data. Tieto mitigates the risk related to privacy for own workforce as well

as for consumers and end-users through its privacy management as described in ESRS 2 SBM-3.

Building on actions executed in 2024, Tieto has maintained its systematic and comprehensive approach to

data privacy governance throughout 2025. In line with disclosed action plans in 2024, the company carried out

activities under its privacy framework, with a particular focus on integrating necessary updates into the

Sourcing and supplier management processes and providing training for key internal stakeholders. Group

Privacy closely monitored developments in privacy-related legislation within the EU and other countries where

Tieto operates.

Tieto’s Group Privacy unit is part of the Group Legal organization and operative privacy adjustments in 2025

were run as Group Legal operating costs. The action plan did not involve significant operational (Opex) or

capital (Capex) expenditures during the 2025 financial year. Additionally, no future financial resources (Opex

or Capex) have been allocated to future action plans at this time.


TIETO − ANNUAL REPORT 2025	83

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	2025	2024 Restated	2024
Privacy for consumers and end-users and own workforce	Actual positive impact, potential negative impact and risk	100% of employees completed the annual Privacy e-learning	97%	97%	97%
Privacy for consumers and end-users and own workforce	Actual positive impact, potential negative impact and risk	Zero GDPR-related fines imposed by data protection authority	0	0	0

In its dual roles both as Data Processor, focusing on consumers and end-users, and as a Data Controller

focusing on its own workforce, Tieto continuously monitors the effectiveness of its internal privacy framework

and the required outcomes of its privacy-related procedures. To ensure accountability, Tieto has established

privacy Key Performance Indicators (KPIs) and targets, which are clearly communicated. The company

regularly reports its privacy performance and maturity levels to the GET and the ARC.

To monitor progress, the company conducts an annual privacy maturity survey, tracks operative performance

statistics, initiates internal assessments, and undergoes audits by external partners. 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, Tieto employees – including privacy professionals

– and key Group functions such as security, risk management and IT play an active role in identifying privacy-

related lessons and driving improvements.

Tieto has established several internal targets and metrics related to the management of its actual positive

impacts, potential negative impact and risks related to privacy for own workforce, consumers and end-users.

These are related to areas such as the company’s offerings, the GDPR compliance of suppliers, internal

processes and IT solutions, and employee training. All the company’s privacy targets are aligned with Tieto’s

privacy objectives and principles as defined in the company’s Privacy Policy. Two external targets relate to the

company’s actual positive impact, potential negative 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. The base year for this target is 2020 with the corresponding baseline value of 0.

As stated in the BP-1, all entities within the Tieto 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. 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 Tieto's comprehensive and systematic approach to ensuring privacy and GDPR

compliance.

Tieto's second target is to have 100% of its employees completing the Privacy e-learning on an annual basis.

The training is mandatory for all of Tieto’s employees and contingent workers. The base year for this target is

2020 with a baseline value of 89%. The target covers all entities within the Tieto Group, with the exception of

the subsidiary Bekk, as it operates fully as a portfolio company.

Performance against both targets is 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. An assurance provider is the only type of external body that has provided

validation of the targets and no milestones or interim targets have been set.


TIETO − ANNUAL REPORT 2025	84

Governance

G1 – Business conduct85


TIETO − ANNUAL REPORT 2025	85

G1 – Business conduct

Strategy

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

model (ESRS 2 SBM-3)

Tieto's robust approach to managing corporate culture, whistleblower protection and anti-corruption –

through strong governance, ethical guidelines, and training – contributes to material positive impacts. By

consistently applying these practices across all regions where the company operates, Tieto helps to

strengthen its corporate culture and protection for whistleblowers, and enhances anti-corruption efforts.

Due to the complexity of Tieto's global operations and third-party relationships, the company recognizes the

potential for negative impacts related to corruption and bribery on people and societies. Operating across

diverse regulatory environments increases the company's exposure to such impacts.

The role of the administrative, management and supervisory bodies (ESRS 2 – GOV-1)

Information about the role of administrative, management and supervisory bodies related to business conduct

can be found under ESRS 2 GOV-1.

Impact, risk and opportunity management

Business conduct policies and corporate culture (G1-1)

A positive corporate culture is an important enabler of Tieto’s business success. It shapes employee

behaviour, engagement and well-being, and supports the company’s ability to innovate and adapt in a rapidly

evolving global environment. The company promotes a culture grounded in openness, trust and diversity

through communication, training, development and employee engagement. Evaluation of corporate culture is

conducted through employee surveys, and monitoring of indicators such as turnover, diversity and

whistleblowing metrics.

Tieto’s commitments related to business conduct and corporate culture are formalized in the Code of Conduct,

which serves as the company’s ethical compass and is approved by the CEO. The Code applies to all

employees, directors, contractors and other representatives. This is further supported by supplementary

policies and rules, of which the most relevant are described below.

Tieto’s Whistleblowing Rules promote an open corporate culture by offering a safe mechanism for reporting

suspected or actual misconduct, including breaches of law and Tieto's Code of Conduct, without fear of

retaliation. The rules specify that reports may be submitted anonymously and are accepted from both internal

and external stakeholders including suppliers, partners and customers. The process for reporting concerns is

also described in the rules, including how follow-ups on reports are to be conducted in a way that ensures

investigations are done independently and confidentially to protect against retaliation. The rules also outline

the company's commitment to safeguard and uphold privacy principles.

The Whistleblowing Unit, the Group Compliance Officer, Designated Points of Contact and the Escalation

Committee have defined roles in the process. The whistleblowing system operates independently of line

management and meets legal requirements, including those set out in Directive (EU) 2019/1937. Protection

against retaliation is integral in the process and monitored continuously.

Reports are acknowledged within seven calendar days and feedback provided within three months. The

Whistleblowing Unit evaluates each report and determines whether further investigation is required or if the

matter should be escalated to the Escalation Committee, CEO, ARC or the Board. The process is designed to

ensure confidentiality, fairness and respect for all involved parties. Relevant parties are given the opportunity

to be heard.

Whistleblowing awareness is incorporated into the mandatory annual Code of Conduct e-learning, and in 2025

subtitles and translations were added to remove barriers to understanding. In 2025, the company introduced a

targeted question in the annual employee survey to gauge employees’ perceived safety in reporting suspected

misconduct without fear of retaliation. While this does not constitute a full standalone evaluation of trust in the

formal grievance mechanisms, the results provide valuable insights into employees’ sense of psychological

safety and willingness to raise concerns. In addition to this new perception indicator, the company monitors

reporting rates and the proportion of anonymous cases as indirect signals of trust in the grievance

mechanisms. The company also recognizes that concerns and grievances may be raised and resolved outside

formal whistleblowing channels, and therefore aims to foster a speak-up culture where employees feel safe

voicing concerns through any channel without fear of negative consequences.

The Anti-Corruption Rules are aligned with international frameworks such as the UN Convention against

Corruption and the OECD Guidelines for Multinational Enterprises, and are applied in all jurisdictions where the

company operates. Where local laws are absent or insufficient, the Code of Conduct and internal rules prevail.

The rules emphasize transparency, sound judgement and ethical interactions with external stakeholders. Input

received from stakeholders in 2024 related to guidance on gifts, hospitality, sponsorships and donations led to

an update to the rules which has been in force from early 2025.

Suppliers and partners acknowledge the Supplier Code of Conduct, which sets out expectations of ethical

business conduct when interacting with Tieto.

The company has procedures in place to investigate business conduct incidents, including corruption and

bribery, in a prompt, independent and objective manner. Investigations are conducted in accordance with

internal guidelines and may involve Legal, Compliance, HR and/or external experts. Investigation findings

contribute to corrective actions, policy improvements and risk mitigation measures.

The Code of Conduct, Anti-Corruption Rules and Whistleblowing Rules are revised annually and include input

from subject-matter experts and stakeholders. The Code of Conduct incorporates content from these rules

and remains the paramount policy on business conduct and ethics. Policies are made available via the internal

process framework site and in part through the public website. No major update was made to the Code of

Conduct in 2025. Updates to the Whistleblowing Rules considered stakeholder views on anonymous reporting,

even though anonymity is not a legal requirement. 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.

The company has conducted a company-wide risk assessment to identify functions with the highest exposure

to corruption and bribery risks. Corruption risks for Tieto are 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 Tieto or third parties are also considered at-risk. To


TIETO − ANNUAL REPORT 2025	86

address these risks, targeted anti-corruption training for identified high-risk functions will be introduced,

measured and reported from 2026 onward.

Prevention and detection of corruption and bribery (G1-3)

Tieto maintains zero tolerance for corruption and bribery. As stated above, the Code of Conduct and the Anti-

Corruption Rules define the principles and requirements governing Anti-Bribery and Corruption (ABC) at Tieto.

These are supplemented by Know Your Counterparty Rules and other corporate processes which contribute

to the prevention of misconduct and support a robust legal and compliance framework. Internal controls

embedded in financial processes are designed to prevent the execution of illegal or fictitious transactions.

Training on business conduct, which includes sections focusing on anti-corruption and bribery, is mandatory

for all employees including members of the administrative, management and supervisory bodies. The training

is delivered through the annual Code of Conduct e-learning, and provides practical guidance on assessing

business-related gifts and hospitality using real-life scenarios. All employees have access to additional, in-

depth ABC training modules through the company’s learning management platform. The company will roll out

role-specific anti-corruption training for at-risk personnel during 2026, as no such training was provided in

2025.

Suspicions or incidents of corruption and bribery are escalated and investigated by the Group Whistleblowing

Unit in accordance with the principles of the Whistleblowing Rules. The Group Whistleblowing Unit and the

Escalation Committee operate independently from line and financial process management, ensuring

impartiality and objectivity in investigations. Outcomes of investigations are reported to the ARC on a biannual

basis or as otherwise required by the Whistleblowing Rules.

Metrics and Targets

Targets related to business conduct (ESRS 2 MDR-T)


Material topic	Type of IRO related to target	Target	2025	2024 Restated	2024
Corruption and bribery (prevention and detection)	Actual positive impact	100% of employees completed the annual Code of Conduct e-learning	97%	96%	96%
Corruption and bribery (incidents)	Potential negative impact	Zero incidents of corruption detected by the Whistleblowing Unit	0	0	0
Protection of whistleblowers	Actual positive impact	Achieve a high to very high score (≥8/10) in the annual employee survey measuring employees’ sense of safety when reporting suspected or observed misconduct or unethical behaviour	8.5	N/A	N/A
Corporate culture	Actual positive impact		8.5	N/A	N/A

Tieto’s methodology for setting targets related to business conduct is based on a structured,

stakeholder‑driven process. Employees and management contribute through consultations, while cross-

functional teams, including members from HR, Finance, Legal and Compliance and Group Sustainability,

provide insights. The approach ensures that targets are both practical and relevant, reflecting operational

realities and stakeholder expectations.

The two targets relating to corruption and bribery prevention and incidents were approved by the GET in

2024, while a target relating to protection of whistleblowers and corporate culture was approved by SSG in

2025. All targets presented in the above table are aligned with the objectives of Tieto’s Code of Conduct, Anti-

Corruption Rules, and Whistleblowing Rules. Additionally, all targets undergo both internal review and external

assurance processes.

The target of 100% completion of the Code of Conduct e-learning is tracked through Tieto’s learning

management system (LMS). It requires employee participation, availability of e-learning resources for all

eligible learners, and accurate tracking of progress. Monitoring is broken down by country, business unit and

people manager to enable targeted follow-up. The underlying assumption is that employees who complete the

training are more likely to detect, prevent and report suspicions or incidents of corruption or bribery. The

scope includes all entities within Tieto Group, except for the subsidiary Bekk, which operates independently as

a portfolio company. The base year for this target is 2019, with a baseline value of 90%. The target was

adjusted in 2024 to 100% to reflect the mandatory nature of the training. The target remains unchanged for

2025.

Tieto’s target of “zero incidents of corruption detected by the Whistleblowing Unit” is supported by internal

controls, audits, self-reporting mechanisms, and compliance monitoring. For the purpose of this target, an

"incident" refers to a case of corruption that has been formally investigated and substantiated by the

Whistleblowing Unit during the reporting period. Investigations are promptly initiated when concerns arise.

This target assumes that existing processes are effective, trusted, and widely known. It is monitored

continuously using internal data. The base year for this target is 2024, with a baseline value of 0 cases. The

target is unchanged for 2025.

For 2025 a new target relating to protection of whistleblowers and corporate culture was proposed and

formulated as "Achieve a high to very high score in the annual employee survey measuring employees’ sense

of safety when reporting suspected or observed misconduct or unethical behaviour". This target is measured

on an annual basis through the annual employee survey where employees are being asked to respond to the

following question: "I feel safe to report when suspecting or observing misconduct or unethical behavior".

Employee responses are given on a 0–10 scale where a score of 8–10 would indicate that employees feel safe

speaking up. Results are aggregated, and the average score is used to assess and report performance against

the target. All employees, except those working for Avega and Bekk, are included in the scope.

Assumptions made when defining this target includes a consistent understanding of survey questions across

the workforce, and sufficient participation rates to ensure representativeness. The survey tool used is

designed to support real-time analytics and engagement tracking, which enables a high participation rate to be

reached. An assurance provider is the only type of external body that has provided validation of the targets

and no milestones or interim targets have been set.

The effectiveness of actions taken to address material impacts, risks and opportunities are tracked using

defined metrics, such as completion rates for Code of Conduct e-learning modules and the number of reported

and confirmed cases of corruption. Perceived safety in raising concerns linked to the material topics of

protection of whistleblowers and corporate culture is tracked using results from the annual employee survey.

Additionally, input is gathered from compliance reports and international standards, including the OECD

Guidelines for Multinational Enterprises and the UN Convention against Corruption.

Incidents of corruption and bribery (G1-4)

During the reporting year 2025, Tieto recorded zero convictions for violations of anti-corruption or anti-bribery

laws. No fines or penalties were paid in relation to such matters. Consequently, the company did not

undertake any actions to provide for, cooperate in, or support the provision of remedy related to corruption or

bribery during the year.

However, one alleged case related to corruption remained open throughout 2025. The case was originally

reported in 2018 and involved a former employee of Tieto who was convicted in Belarus for bribing a public

official. This incident led to charges in 2020 against Tietoevry Banking Latvia SIA (formerly SIA Tieto Latvia),

alleging deficiencies in internal controls and tax evasion. The case is currently subject to ongoing court

proceedings in the Riga District Court. Tieto denies the charges and continues to defend its position.


TIETO − ANNUAL REPORT 2025	87


	2025	2024
Number of confirmed incidents of corruption or bribery	0	0
Amount of fines for violation of anti-corruption and anti-bribery laws	0	0
Number of confirmed incidents in which own workers were dismissed or disciplined for corruption or bribery-related incidents	0	0
Number of confirmed incidents relating to contracts with business partners that were terminated or not renewed due to violations related to corruption or bribery	0	0
Number of convictions for violation of anti-corruption and anti-bribery laws	0	0

Actions

Actions and resources related to business conduct (ESRS 2 MDR-A)

In alignment with Tieto’s material topics, the following actions were undertaken during the 2025 reporting year

to prevent or mitigate negative impacts and to strengthen actual positive impacts. These actions primarily

apply to Tieto’s employees and other stakeholders covered by the company’s Code of Conduct.

Tieto prioritized and planned implementation of key mitigating actions during 2025. The first wave of actions,

focused on strengthening internal controls and providing role-specific training for at-risk groups, was initiated

in 2025 and will be completed in 2026.

In 2024, Tieto reported that the company would develop an information kit to support employees in

understanding how to report complaints. Work was initiated in 2025, and an information package on

whistleblowing, including Frequently Asked Questions (FAQ), is being developed to raise awareness of the

reporting process and to reinforce employees' confidence in speaking up about observed or suspected

misconduct. The launch of the information kit was initiated in 2025 and will be completed in 2026.

During 2025, all employees, including members of administrative, supervisory, and management bodies, were

required to complete the annual Code of Conduct e-learning. The interactive training addresses anti-

corruption and anti-bribery through practical, real-life scenarios. Awareness of the Code of Conduct was

reinforced through internal campaigns and onboarding sessions. Managers received role-based training

tailored to their responsibilities.

The ongoing activities do not entail significant Opex or Capex. Certain actions proposed for 2026 are expected

to require some additional Capex, but not on a material level, and are not anticipated to increase Opex.


TIETO − ANNUAL REPORT 2025	88

Entity-specific

topics

Cybersecurity89

AI91


TIETO − ANNUAL REPORT 2025	89

Cybersecurity

Strategy

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

model (ESRS 2 SBM-3)

Tieto’s commitment to delivering high-quality, secure services and products remains central to meeting

customer needs and driving performance. The growing demand for secure software and services continues to

present a material financial opportunity, particularly through solutions that promote secure software

development practices and robust data protection. Investments in safeguarding measures, continuity

planning, incident and crisis management help build customer trust, strengthen the company’s competitive

position, and minimize the impact of potential incidents.

Cybersecurity also constitutes a material risk as well as a material potential negative impact for Tieto.

Increasing sophistication of cyberattacks poses significant threats, including data loss and service disruption,

with potential financial and reputational consequences. Regulatory developments may further affect service

and product development, increasing compliance costs. Potential negative impacts are closely linked to the

material cybersecurity-related risk for the company. Data loss or disruption of critical services can negatively

affect users and end-users by compromising their privacy and limiting access to crucial digital services.

With the divestment of the Tech Services business – previously a key contributor to cybersecurity-related

risks – the direct exposure to such risks has been reduced. However, the potential for negative impacts

remains, as these risks have shifted along the value chain.

Impact, risk and opportunity management

Policies related to Cybersecurity (ESRS 2 MDR-P)

Tieto’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, network and information system infrastructure and resources from

unauthorized access, disclosure, alteration and destruction with a risk-based approach and in adherence with

internal and external requirements.

As a provider of business-critical services, the company integrates security and safety across its operations. Its

Security Policy ensures that security governance is systematically implemented, maintained, and continuously

improved, with key controls documented in the Statement of Applicability (SoA) and embedded in services

and applications. The policy also defines responsibilities for employees, partners, and suppliers, promoting

security awareness and incident reporting. These measures support resilient, trustworthy, and sustainable

operations.

The policy is subject to review at least annually and is approved by the CEO. The Chief Information Security

Officer (CISO) is 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 Tieto’s services and products.


TIETO − ANNUAL REPORT 2025	90

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.

Tieto’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, Tieto also hosted the annual Cybersecurity Awareness Month, providing employees

with topical learning opportunities and webinars. Employees also participate in ongoing interactive phishing-

simulation training designed to strengthen vigilance and reduce the risk of social engineering attacks.

Furthermore, Tieto provided customers with cybersecurity briefing sessions to share insights into current

threats.

Actions

Taking actions on material impacts, risks and opportunities (ESRS 2 MDR-A)

Security plays a critical role in enabling Tieto to deliver resilient, high-quality services while managing

cybersecurity-related risks and opportunities. In response to Tieto’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. Actions focus

on strengthening awareness, embedding security into operations, and ensuring compliance with legal and

customer requirements, aiming at the implementation of the Security Policy and ISO 27001 alignment:

• Continued incorporation of risk-based, built-in security controls in offerings, products, and services.

• Measures to ensure a secure physical environment for employees and to safeguard company and customer

assets.

• Strengthening business resilience by enhancing the ability to manage and recover from disruptions and

security incidents.

• Ensuring confidentiality, integrity, and availability of information assets, including protection of intellectual

property and sensitive data.

• Measures to ensure compliance with relevant laws, regulations, customer requirements, and industry

standards, including privacy and data protection laws.

• Cybersecurity awareness activities across the company, regularly promoting Security e-learning to improve

the overall security posture.

• Internal campaigns to support 100% completion of the mandatory Security e-learning via the company’s

communication and engagement platform.

The scope of the key actions mainly applied to Tieto’s employees and other stakeholders covered by the

company’s Security Policy. Actions are planned and executed within the annual Information Security

Management System cycle. 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. The

Security Alignment Network, established in 2024 and expanded in 2025 to include a broader audience, serves

as a strategic steering forum that unites key business and security stakeholders. Its purpose is to ensure

alignment on updates to security policies and rules, driving continuous improvement of the company’s

common security baseline.

Tieto’s action plan for the material topic of cybersecurity did not involve significant operational (Opex) or

capital (Capex) expenditures during the 2025 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	2025	2024 Restated	2024
Cybersecurity	Risk and opportunity	100% of employees completed the annual Security e-learning	97%	97%	97%

Tieto’s annual cybersecurity target is to achieve 100% completion of its mandatory security e-learning for all

employees. The e-learning programme is based on the company’s Security Policy and Rules and includes

modules on key topics such as artificial intelligence and cybersecurity. The objective is to mitigate risks posed

by data breaches and cyberattacks, strengthen business resilience, and demonstrate a commitment to being a

trusted service provider. Security training is considered a benchmark for measuring employee understanding

of the security domain and is a key differentiator for customers who prioritize data protection in their business

decisions.

The target was updated in 2024 from 90% to 100% completion, reflecting the mandatory nature of the training

for all Tieto employees. Tieto’s target for cybersecurity awareness was set using the same methodology and

process outlined in previous sections, including stakeholder engagement. The final target was then approved

by the GET. There have been no changes in the targets, metrics, or underlying measurement methodologies

and assumptions.

The base year for the target is 2020, with a baseline value of 90%. The target is monitored and reported

quarterly, 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. The final completion percentage for 2025 is 97%.

The scope of the 100% annual completion target includes all Tieto employees, with the exception of the

subsidiary Bekk, which operates fully as a portfolio company.


TIETO − ANNUAL REPORT 2025	91

Strategy

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

model (ESRS 2 SBM-3)

Artificial intelligence (AI) provides Tieto with the opportunity to lead in innovation and trust, but requires

careful management of risks related to bias, privacy and ethics. Thus, AI has been identified as a material

business opportunity and risk for Tieto, carrying the potential to create both positive and negative impacts on

people and the planet through its use.

Opportunities for Tieto include positioning the company as a leader in AI, attracting new customers and

building trust with stakeholders. Driving responsible use of AI can also enable the development of new

services that address societal challenges, resulting in potential increased revenue for Tieto. Potential positive

impacts of AI include automating tasks, improving productivity, reducing costs, enhancing personalization and

enabling new offerings in data analytics and personalization. AI can also address societal challenges such as

healthcare access, education equity, and climate action through smart energy solutions and environmental

monitoring.

However, there are also potential negative impacts, involving risks of bias and discrimination in AI systems,

misuse of data leading to privacy violations and regulatory issues, and workforce changes due to AI

automation, which could result in employee dissatisfaction.

Impacts risk and opportunity management

Policies related to AI (ESRS 2 MDR-P)

Tieto’s AI Policy sets a clear framework for the responsible development, deployment, delivery and use of AI

across the organization. Key elements 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. The purpose of the policy is to support responsible production and

consumption of AI technologies by promoting transparency, fairness, human-centric design, and data privacy.

It aims to maximize the benefits of AI while mitigating risks to individuals, businesses, and society. The policy

applies to all AI-related activities, whether internally developed or externally sourced, and covers both

customer-facing and internal solutions.

The scope of the policy is comprehensive, applying to all Tieto legal entities, employees, and operations. It is

embedded within the company’s broader governance framework, ensuring alignment with other corporate

rules, processes, and contractual practices. This integration ensures that AI governance is consistently applied

across all relevant businesses and partner engagements. Accountability for the implementation of the AI Policy

rests with the GET. The AI Corporate Process Owner (CIO/CISO-Office) and AI leads in each of the businesses

ensure that governance is cascaded and embedded into daily operations.

The policy aligns with external standards, notably the EU AI Act, the European Commission’s Ethics Guidelines

for Trustworthy AI and the OECD AI Principles, and is continuously updated to reflect changes in regulations

and best practices. These references, together with the company's AI Rules and the yearly mandatory training

in Responsible AI for all employees, underscore Tieto’s commitment to international best practices and

regulatory compliance, reinforcing the credibility and robustness of its AI governance approach.

The company reviews the policy on an annual basis to ensure it remains effective and aligned with evolving

regulations and stakeholder feedback. Tieto has considered the interests of key stakeholders, including

customers, partners, employees, and society at large. The principles of fairness, respect, and human rights are

central to the policy, ensuring that AI solutions empower users, protect privacy, and avoid unintended harm or

bias.

Tieto's AI Policy is made available to all relevant stakeholders, including those potentially affected by AI

solutions and those responsible for implementing them. 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 2025, Tieto strengthened its commitment to responsible production and consumption of AI technologies by

updating governance documents and reintroducing mandatory annual training for employees and

subcontractors. These measures build on the 2024 foundation and help embed awareness and accountability

across the organization.

Following the EU AI Act’s ban on unacceptable-risk AI systems, Tieto conducted a comprehensive review of its

portfolio, covering both customer-facing offerings and internally used IT services. In the second half of the

year, the company assessed the risk levels and compliance requirements of its AI-optimized customer-facing

solutions, and established a continuous process for monitoring, evaluation and improvement.

Tieto’s AI Rules were evolved into a comprehensive governance model aligned with the EU AI Act. Internal

processes and policies were updated to incorporate AI considerations wherever relevant, ensuring AI

governance is integrated throughout the organization.

The Shell Strong project, launched in 2024 to strengthen the company's overall readiness in alignment with

new AI regulation and standards, progressed according to plan, supported by an active steering committee

overseeing deliveries and confirming timelines. After summer, the project initiated a comprehensive AI risk and

impact assessment across all IT services, mapping current compliance status and evaluating both business and

compliance risks. To strengthen alignment and to harmonize activities across businesses, an AI Alignment

Forum has been established. This forum brings together process owners, business AI leads and other relevant

stakeholders through regular meetings.

Key progress indicators include the rollout of an internal AI Compliance Checker for delivery teams and

periodic compliance refresh cycles for AI-enabled offerings. These measures demonstrate Tieto’s readiness to

meet regulatory obligations and maintain trust with customers and partners.

If Tieto 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 Rights Policy. In cases where Tieto is obligated to offer or participate in providing remedy, each

situation is handled individually on a case-by-case basis. No material negative impacts were reported during

2025.


TIETO − ANNUAL REPORT 2025	92

Financially, no significant operational (Opex) or capital (Capex) expenditures were allocated to AI in 2025, and

none are planned for the near future. However, resources have been scaled to support governance and

compliance activities. The Shell Strong project will continue into 2026 with increased capacity, reinforcing

Tieto’s long-term commitment to responsible innovation.

Metrics and targets

Targets related to AI (ESRS 2 MDR-T)


Material topic	Type of IRO related to target	Target	2025	2024 Restated	2024
AI	Opportunity, potential negative and potential positive impact.	100% of employees completed the annual Responsible AI e- learning	97%	97%	97%

In 2024, Tieto set a measurable target to ensure compliance with the EU AI Act, reinforcing its commitment to

transparent, accountable, and responsible AI use across all integrated entities globally. The target is to achieve

100% completion of mandatory training on responsible and ethical AI use by all employees and

subcontractors. Progress is monitored on an annual basis and tracked through Tieto's Learning Management

System. The training target initiative is progressing according to plan.

Tieto’s target related to 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 Tieto harness the potential of AI

while addressing risks, ensuring compliance and capitalizing on new business opportunities in the AI space.

All entities within the Group are included in the scope of the 100% annual completion target for the

Responsible AI e-learning, with the exception of the subsidiary Bekk, which operates fully as a portfolio

company.

Tieto followed its established target-setting methodology, as detailed above in the sections on the target

setting for the entity-specific topic of AI, while considering the requirements of the EU AI Act. The target was

approved by the GET, and no assumptions were made during its definition. No changes to the target have been

made. No milestones or interim targets have been set, and target measurements are validated only by

assurance providers.


TIETO − ANNUAL REPORT 2025	93

Appendices


TIETO − ANNUAL REPORT 2025	94

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	35
BP-2	Disclosures in relation to specific circumstances	35
GOV-1	The role of the administrative, management and supervisory bodies	36
GOV-2	Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies	37
GOV-3	Integration of sustainability-related performance in incentive schemes	37
GOV-4	Statement of due diligence	38
GOV-5	Risk management and internal controls over sustainability reporting	38
SBM-1	Strategy, business model and value chain	39
SBM-2	Interests and views of stakeholders	43
SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	44
IRO-1	Description of the process to identify and assess material impacts, risks and opportunities	49
IRO-2	Disclosure Requirements in ESRS covered by the undertaking's Sustainability Statement	51


	EU Taxonomy
Environment	EU Taxonomy	53
	ESRS E1 – Climate change
E1-1	Transition plan for climate change mitigation	59
ESRS 2 SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	60
ESRS 2 GOV-3	Integration of sustainability-related performance in incentive schemes	37
ESRS 2 IRO-1	Description of the process to identify and assess material climate-related impacts, risks and opportunities	50
E1-2	Policies related to Climate change mitigation and adaptation	61
E1-3	Actions and resources in relation to climate change policies	61
E1-4	Targets related to Climate change mitigation or adaptation	62
E1-5	Energy consumption and mix	65
E1-6	Gross Scopes 1, 2, 3 and Total GHG emissions	66
E1-7	GHG removals and GHG mitigation projects financed through carbon credits	69
E1-8	Internal carbon pricing	69
	ESRS E2 – Pollution
IRO-1	Description of the processes to identify and assess material pollution-related impacts, risks and opportunities	50
	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	50
	ESRS E4 – Biodiversity and ecosystems
IRO-1	Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks and opportunities	50


TIETO − ANNUAL REPORT 2025	95


	ESRS S1 – Own workforce
ESRS 2 SBM-2	Interests and views of stakeholders	43
ESRS 2 SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	71
S1-1	Policies related to own workforce	72
S1-2	Processes for engaging with own workforce and workers' representatives about impacts	72
S1-3	Processes to remediate negative impacts and channels for own workers to raise concerns	72
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	73
S1-5	Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities	74
S1-6	Characteristics of the undertaking's employees	75
S1-8	Collective bargaining coverage and social dialogue	76
S1-9	Diversity metrics	77
S1-16	Remuneration metrics (pay gap and total remuneration)	77
S1-17	Incidents, complaints and severe human rights impacts	77
	ESRS S2 – Workers in the value chain
ESRS 2 SBM-2	Interests and views of stakeholders	43
ESRS 2 SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	78
S2-1	Policies related to value chain workers	78
S2-2	Processes for engaging with value chain workers	79
S2-3	Processes to remediate negative impacts and channels for value chain workers to raise concerns	79
S2-4	Taking action on material impacts on value chain workers	79
S2-5	Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	80


	ESRS S4 – Consumers and end-users
ESRS 2 SBM-2	Interests and views of stakeholders	43
ESRS 2 SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	81
S4-1	Policies related to consumers and end-users	81
S4-2	Processes for engaging with consumers and end-users	81
S4-3	Processes to remediate negative impacts and channels for consumers and end- users to raise concerns	82
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	82
S4-5	Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities	83
	ESRS G1 – Business conduct
ESRS 2 SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	85
ESRS 2 GOV-1	The role of the administrative, management and supervisory bodies	85
ESRS 2 IRO-1	Description of the process to identify and assess material resource use and circular economy-related impacts, risks and opportunities	84
G1-1	Business conduct policies and corporate culture	85
G1-3	Prevention and detection of corruption and bribery	86
ESRS 2 MDR-T	Targets related to business conduct	86
G1-4	Confirmed incidents of corruption and bribery	86
ESRS 2 MDR-A	Actions and resources related to business conduct	86
	Cybersecurity
ESRS 2 SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	89
ESRS 2 MDR-P	Policies adopted to manage material sustainability matters	89
ESRS 2 MDR-A	Actions and resources in relation to material sustainability matters	90
ESRS 2 MDR-T	Tracking effectiveness of policies and actions through targets	90
	AI
ESRS 2 SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	91
ESRS 2 MDR-P	Policies adopted to manage material sustainability matters	91
ESRS 2 MDR-A	Actions and resources in relation to material sustainability matters	91
ESRS 2 MDR-T	Tracking effectiveness of policies and actions through targets	92


TIETO − ANNUAL REPORT 2025	96

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	Indicator 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
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	Indicator 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


TIETO − ANNUAL REPORT 2025	97


Disclosure Requirement and related datapoint	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Comments/Location in Sustainability Statement
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 collateralized 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
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


TIETO − ANNUAL REPORT 2025	98


Disclosure Requirement and related datapoint	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Comments/Location in Sustainability Statement
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
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 Labour Organization 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
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


TIETO − ANNUAL REPORT 2025	99


Disclosure Requirement and related datapoint	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Comments/Location in Sustainability Statement
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 Labour Organization 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
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


TIETO − ANNUAL REPORT 2025	100

Financial

Statements


TIETO − ANNUAL REPORT 2025	101


Consolidated Financial Statements (IFRS)		FINANCIAL RISK MANAGEMENT AND CAPITAL STRUCTURE		11. Long-term receivables	149
Income statement	102	21. Management of financial risks and capital structure	133	12. Current receivables	149
Statement of other comprehensive income	102	22. Interest-bearing loans and borrowings	135	13. Prepaid expenses and accrued income	149
Statement of financial position	103	23. Financial income and expenses	136	14. Changes in shareholders' equity	150
Statement of cash flows	104	24. Financial assets and liabilities	136	15. Provisions	150
Statement of changes in shareholders' equity	105	25. Derivatives	138	16. Non-Current liabilities	150
		26. Cash and cash equivalents	138	17. Current liabilities	150
Notes to the consolidated financial statements (IFRS)		27. Share capital and reserves	139	18. Accrued liabilities and deferred income	151
BASIS OF PREPARATION		OTHER INFORMATION		19. Deferred tax assets and liabilities	151
1. Corporate information	107	28. Acquisitions and divestments	140	20. Contingent liabilities	151
2. Material accounting policy information	107	29. Subsidiaries	141	21. Derivatives	152
3. Adoption of new and amended IFRS accounting standards and interpretations	108	30. Interests in joint ventures	142	22. Management of financial risks	152
	108	31. Related party transactions	142
4. Use of judgements and estimates	108	32. Commitments and contingencies	142	Proposal for dividend distribution	152
PERFORMANCE FOR THE YEAR		33. Events after the reporting period	142
5. Segment information	109			Signatures for the report by the Board of Directors, Sustainability Statement and Financial Statements, and Auditor's note	153
6. Discontinued operations	111
7. Revenue	112	Parent company's financial statements (FAS)
8. Other operating income and expenses	113	Income statement	143
9. Income taxes	114	Balance sheet	144
10. Earnings per share	116	Statement of cash flows	145	Auditor's report	154
COMPENSATION AND BENEFITS				Assurance report on the Sustainability Statement	158
11. Employee expenses	117	Notes to the Parent Company's Financial Statements (FAS)	146	Independent auditor’s report on the ESEF consolidated financial statements of Tietoevry Oyj	160
12. Remuneration of key management	117	1. Net sales	147		160
13. Share-based payments	118	2. Other operating income	147
14. Defined benefit plans	120	3. Personnel expenses	147
INVESTED CAPITAL AND WORKING CAPITAL ITEMS		4. Other operating expenses	147
15. Goodwill and other intangible assets	123	5. Management remuneration	147
16. Property, plant and equipment	126	6. Financial income and expenses	147
17. Leases	128	7. Income taxes	147
18. Trade and other receivables	129	8. Intangible assets	148
19. Provisions	131	9. Tangible assets	148
20. Trade and other payables	132	10. Investments	149


TIETO − ANNUAL REPORT 2025	102

CONSOLIDATED FINANCIAL STATEMENTS (IFRS)

Income statement


EUR million	Note	2025	2024
Revenue	5, 7	1 852.3	1 879.5
Other operating income	8	21.0	15.7
Materials and services		-407.6	-424.0
Employee benefit expenses	11, 12, 13, 14	-1 064.5	-1 086.4
Depreciation and amortization	15, 16, 17	-90.8	-95.1
Impairment losses	15, 16, 17	-85.8	-1.0
Other operating expenses	8	-149.4	-147.3
Share of results in joint ventures	30	—	0.9
Operating profit (EBIT)		75.2	142.3
Interest and other financial income	23	5.3	6.3
Interest and other financial expenses	23	-38.5	-48.9
Net foreign exchange gains/losses	23	-1.1	-2.5
Profit before taxes		41.0	97.2
Income taxes	9	-15.3	-27.0
Net profit for the financial year, continuing operations		25.6	70.2
Net loss for the financial year, discontinued operations	6	-166.1	-133.0
Net loss for the financial year		-140.5	-62.8

Net loss for the financial year attributable to owners of the Parent company		-140.5	-62.8

Earnings per share, EUR	10
Basic Continuing operations		0.22	0.59
Discontinued operations		-1.40	-1.12
Net loss for the financial year		-1.19	-0.53
Diluted Continuing operations		0.22	0.59
Discontinued operations		-1.40	-1.12
Net loss for the financial year		-1.18	-0.53

Statement of other

comprehensive income


EUR million	Note	2025	2024
Net loss for the financial year		-140.5	-62.8
Items that may be reclassified subsequently to profit or loss
Translation differences	27	17.8	-80.8
Items reclassified to profit or loss
Translation differences	6, 27	91.6	—
Items that will not be reclassified subsequently to profit or loss
Remeasurements of the defined benefit plans	14	0.3	0.7
Income tax related to remeasurements	9	-0.1	-0.3
Total other comprehensive income		109.7	-80.4
Total comprehensive income		-30.8	-143.1

Total comprehensive income attributable to
Owners of the Parent company		-30.8	-143.1

Total comprehensive income attributable to owners of the Parent company arises from
Continuing operations		40.1	9.0
Discontinued operations	6	-70.8	-152.2

Notes are an integral part of these consolidated financial statements.


TIETO − ANNUAL REPORT 2025	103

Statement of financial position

Assets


EUR million	Note	31 Dec 2025	31 Dec 2024
Non-current assets
Goodwill	6, 15, 28	1 309.4	1 648.2
Other intangible assets	15	216.3	313.8
Property, plant and equipment	16	17.7	82.2
Right-of-use assets	17	63.6	175.8
Deferred tax assets	9	8.0	5.4
Defined benefit plan assets	14	0.4	0.8
Financial assets at fair value	24, 25	38.9	12.3
Other non-current receivables ¹⁾	18, 24	10.9	39.8
Total non-current assets		1 665.2	2 278.4

Current assets
Inventories		6.3	7.1
Trade and other receivables	17, 18, 24	288.9	550.7
Financial assets at fair value	24, 25	15.5	13.7
Current tax assets		7.0	9.3
Cash and cash equivalents	26	146.2	195.1
Current assets excluding assets held for sale		463.8	775.9
Assets held for sale	28	118.4	—
Total current assets		582.2	775.9

Total assets		2 247.4	3 054.3

¹⁾ The presentation of Other non-current receivables has been amended to include Other financial assets at amortized cost. The comparative

information has been updated accordingly.

Equity and liabilities


EUR million	Note	31 Dec 2025	31 Dec 2024
Equity
Share capital	27	76.6	76.6
Share premium and other reserves	27	13.8	38.5
Invested unrestricted equity reserve	27	1 044.7	1 203.5
Retained earnings	27	-51.2	-20.5
Total equity		1 083.8	1 298.1

Non-current liabilities
Loans	22, 24	616.3	569.6
Lease liabilities	17, 22, 24	43.0	142.6
Deferred tax liabilities	9	23.0	24.1
Provisions	19	2.8	2.6
Defined benefit obligations	14	21.7	26.1
Financial liabilities at fair value	24, 25	12.2	16.5
Other non-current liabilities	20	6.3	6.1
Total non-current liabilities		725.3	787.6

Current liabilities
Trade and other payables	20, 24	335.0	545.4
Financial liabilities at fair value	24, 25	1.6	7.1
Current tax liabilities		8.1	10.1
Loans	22, 24	14.0	334.9
Lease liabilities	17, 22, 24	32.4	50.5
Provisions	19	27.5	20.7
Current liabilities excluding liabilities associated with assets held for sale		418.5	968.7
Liabilities attributable to assets held for sale	28	19.8	—
Total current liabilities		438.3	968.7

Total equity and liabilities		2 247.4	3 054.3

Notes are an integral part of these consolidated financial statements.


TIETO − ANNUAL REPORT 2025	104

Statement of cash flows


EUR million	Note	2025	2024
Cash flow from operating activities
Net loss for the financial year		-140.5	-62.8
Adjustments
Depreciation, amortization and impairment losses	15, 16, 17, 30	301.5	363.8
Profit/loss on sale of property, plant and equipment, and business operations		128.2	-4.6
Share of results in joint ventures	30	—	-0.9
Other adjustments		2.5	3.7
Net financial expenses	23	37.7	51.6
Income taxes	9	24.6	41.0
Change in net working capital
Change in current receivables		8.6	81.3
Change in current non-interest-bearing liabilities		5.0	-54.9
Cash generated from operating activities before interests and taxes		367.4	418.2
Interests received		8.7	10.6
Interests paid		-41.4	-42.7
Other financial income received		42.5	25.1
Other financial expenses paid		-46.0	-42.7
Dividends received	30	0.0	1.0
Income taxes paid		-35.3	-43.8
Cash flow from operating activities		295.9	325.7


EUR million	Note	2025	2024
Cash flow from investing activities
Acquisition of business operations, net of cash acquired	28, 30	4.0	-1.0
Capital expenditure	15, 16	-71.4	-85.6
Disposal of business operations, net of cash disposed	6, 28, 30	201.5	13.1
Proceeds from sale of property, plant and equipment		0.9	1.2
Change in loan receivables		0.1	0.4
Cash flow used in investing activities		135.1	-71.8

Cash flow from financing activities
Dividends paid/return of capital		-177.7	-174.2
Repurchase of own shares		-5.9	—
Repayments of lease liabilities	17, 22	-48.5	-56.6
Proceeds from short-term borrowings	22	144.6	333.7
Repayments of short-term borrowings	22	-449.5	-407.4
Proceeds from long-term borrowings	22	300.0	350.0
Repayments of long-term borrowings	22	-233.7	-320.8
Cash flow used in financing activities		-470.7	-275.4

Change in cash and cash equivalents		-39.7	-21.5

Cash and cash equivalents at the beginning of period	26	195.1	219.6
Foreign exchange differences		-9.0	-3.1
Change in cash and cash equivalents		-39.7	-21.5
Cash and cash equivalents at the end of period ^1,2)		146.4	195.1

¹⁾ Cash and cash equivalents include restricted cash of EUR 19.7 (14.6 ) million held within bank accounts in Ukraine.

²⁾ Cash and cash equivalents at the end of 2025 include EUR 0.2 million presented as assets held for sale in the statement of financial position.

The statement of cash flows combines cash flows from both the continuing and the discontinued operations.

Notes are an integral part of these consolidated financial statements.


TIETO − ANNUAL REPORT 2025	105

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 2025		76.6	38.5	-1.1	-347.8	1 203.5	328.4	1 298.1

Comprehensive income
Net loss for the period		—	—	—	—	—	-140.5	-140.5
Other comprehensive income, net of tax
Remeasurements of the defined benefit plans, net of tax	14	—	—	—	—	—	0.3	0.3
Translation differences		—	1.5	—	5.3	—	11.1	17.8
Disposal of business operations	6, 27	—	—	—	91.6	—	—	91.6
Total comprehensive income		—	1.5	—	96.9	—	-129.2	-30.8

Disposal of business operations, other changes	6	—	-26.2	—	—	—	26.2	—

Transactions with owners
Contributions and distributions
Share-based incentive plans	13	—	—	3.0	—	—	-2.9	0.1
Dividends/return of capital	27	—	—	—	—	-158.8	-19.0	-177.7
Repurchase of own shares	27	—	—	-5.9	—	—	—	-5.9
Total transactions with owners		—	—	-2.8	—	-158.8	-21.9	-183.5

31 Dec 2025		76.6	13.8	-3.9	-250.9	1 044.7	203.6	1 083.8


TIETO − ANNUAL REPORT 2025	106


		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 financial year		—	—	—	—	—	-62.8	-62.8
Other comprehensive income, net of tax
Remeasurements of the defined benefit plans, net of tax	14	—	—	—	—	—	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	13	—	—	—	—	—	3.0	3.0
Dividends	27	—	—	—	—	—	-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

Notes are an integral part of these consolidated financial statements.


TIETO − ANNUAL REPORT 2025	107

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 is 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 Oslo Børs.

Tietoevry ("Tieto") is a leading software and technology consulting services company with global market reach

and capabilities. Tieto provides customers across different industries with mission-critical solutions through its

vertical software businesses Tieto Caretech, Tieto Banktech and Tieto Indtech as well as its consulting

business, Tieto Tech Consulting. Around 14 000 talented vertical software, design, cloud and AI experts are

dedicated to empowering Tieto's customers to succeed and innovate with the latest technology.

The Board of Directors approved these consolidated financial statements on 11 February 2026 . 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 Tieto 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.

Non-current assets or a disposal group are classified as held for sale if their carrying amount will be recovered

principally through the disposal of the assets and the sale is highly probable. The profit or loss from the

discontinued operation is reported separately from income and expenses from continuing operations in the

consolidated income statement, with prior periods presented on a comparative basis. See notes 6 and 28.

Foreign currency transactions

Items included in the financial statements of each of the Group's entities are measured using the currency of

the primary economic environment in which the entity operates (the functional currency). The consolidated

financial statements are presented in euros, which is the Parent company’s functional and presentation

currency.

Foreign currency transactions are translated into local functional currencies using the exchange rates

prevailing on the transaction date. The foreign currency monetary items are translated using period-end

exchange rates. The foreign currency non-monetary items held at fair value are translated into the functional

currency using the exchange rate prevailing at the date when the fair value was determined or remeasured.

Other non-monetary items are recognized at the exchange rate prevailing on the transaction date.

For internal, long-term loans to subsidiaries, when classified as net investment in foreign operation, all related

unrealized foreign exchange gains and losses are recognized in profit or loss in the separate financial

statements. In the consolidated financial statements, such exchange differences are recognized initially in

other comprehensive income and reclassified from equity to profit or loss on disposal of the net investment.

Other foreign exchange gains and losses related to business operations are included in operating profit.

Foreign exchange gains and losses associated with financing are recognized in finance income and expenses.

For Group entities whose functional and presentation currency is other than the euro, the income statements

and statements of financial position are translated into the Group presentation currency as follows:

• assets and liabilities for each statement of financial position presented are translated using the exchange

rates prevailing at the reporting date;

• income and expenses for each income statement are translated using the monthly average exchange rates;

• all resulting translation differences are recognized in other comprehensive income.

On disposal of a foreign operation, the cumulative translation differences relating to that foreign operation are

reclassified in the consolidated income statement as part of the gain or loss on the disposal.


TIETO − ANNUAL REPORT 2025	108

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 2025. They have not

had a material impact on the amounts reported or on the disclosures in these financial statements.

• Amendments to IAS 21 – Lack of Exchangeability

New and amended IFRS accounting standards issued but not yet effective

At the date of authorization of these financial statements, the Group has not applied the following new and

amended IFRS accounting standards and interpretations that have been issued but are not yet effective.

• Amendments to IFRS 7 and IFRS 9 – Contracts Referencing Nature-dependent Electricity (effective date 1

January 2026)

• Amendments to IFRS 7 and IFRS 9 – Classification and Measurement of Financial Instruments (effective

date 1 January 2026)

• Annual Improvements – Volume 11 (effective date 1 January 2026)

• IFRS 18 – Presentation and Disclosure in Financial Statements (effective date 1 January 2027, not yet

endorsed by the EU)

• Amendments to IAS 21 – Translation to a Hyperinflationary Presentation Currency (effective date 1 January

2027, not yet endorsed by the EU)

The Group will adopt these new and amended standards and interpretations, if applicable, when they become

effective and are endorsed by the EU. Management does not expect these to have a material impact on the

Group's financial statements in future reporting periods.

IFRS 18 sets out new requirements for presentation and disclosures in financial statements and will replace IAS

1 Presentation of Financial Statements. The new requirements include:

• Presentation of specified categories and defined subtotals in the income statement.

• Mandatory disclosures for management-defined performance measures (MPMs) in the notes to the

financial statements.

• Enhanced guidance on aggregation and disaggregation of financial information across primary statements

and notes.

IFRS 18 also makes consequential amendments to other accounting standards, including IAS 7 Statement of

Cash Flows, IAS 33 Earnings per Share and IAS 34 Interim Financial statements.

IFRS 18 will not impact the recognition or measurement of items in the financial statements. The Group is

currently assessing the impact of IFRS 18 on its consolidated financial statements and expects that it will have

some impact on the presentation of financial information. The Group will apply the new standard from its

effective date of 1 January 2027. Retrospective application is required, and therefore the comparative

information for the financial year ending 31 December 2026 will be restated in accordance with IFRS 18.

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	15
Other intangible assets	X	X	15
Provisions	X		19
Deferred taxes	X		9

Further, management has considered the impact of climate change when preparing the consolidated financial

statements. There has not been any material impact on judgements and estimates arising from those

considerations. The main considerations were as follows:

• Note 15 Goodwill and other intangible assets, Note 16 Property, plant and equipment, and Note 17 Leases

include disclosures describing the assets that form the basis for the activities of Tieto. 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 19 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 December 2025.

• Note 13 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 all

active plans.

• Note 21 Management of financial risks and capital structure – the Group’s revolving credit facility is linked

to selected sustainability targets of Tieto, see note 21.


TIETO − ANNUAL REPORT 2025	109

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

Tieto Group is comprised of four operating segments, which were renamed as announced on 24 November, as

follows: Tieto Tech Consulting (former Tietoevry Create), Tieto Banktech (former Tietoevry Banking), Tieto

Caretech (former Tietoevry Care), and Tieto Indtech (former Tietoevry Industry).


ACCOUNTING POLICIES
The operating segments are reported in a manner consistent with the internal reporting provided to the Group Executive Team, which has been identified as Tieto’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 Team 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 a ccounting 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 certain Group Support functions and are shown separately in the operating profit (EBIT).

Tieto Tech Consulting

Tieto Tech Consulting 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 focused on growth opportunities in AI, cloud and

data. Tieto Tech Consulting 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.

Tieto Banktech

Tieto Banktech 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.

Tieto Caretech

Tieto Caretech offers modular, open and interoperable software for customers in the health and social care

sectors. It has a strong position in the Nordics while investing to capture growth in an evolving European care

market. 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.

Tieto Indtech

Tieto Indtech provides industry-specific software and services for customers looking to enhance their critical

processes – with software increasingly delivered as a service. Software products are provided for areas such

as case management and pulp, paper & fibre. Furthermore, Tieto Indtech supports processes such as billing &

invoicing and industry messaging as well as purchase-to-pay process automation. The business has extensive

industry knowledge and in-depth expertise in utilizing data to create insights and add value across core

business and operational processes.

Disaggregation of revenue by segment


EUR million	2025	2024	Change %
Tieto Tech Consulting	789.2	836.9	-6
Tieto Banktech¹⁾	585.7	580.4	1
Tieto Caretech	232.7	231.3	1
Tieto Indtech	270.1	263.7	2
Eliminations	-25.5	-32.9	-22
Group total	1 852.3	1 879.5	-1

¹⁾ Includes catch-up revenue of EUR 17.7 million related to deliveries in prior years, following a court ruling on a customer dispute.

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), %
	2025	2024	Change %	2025	2024
Tieto Tech Consulting	59.2	71.2	-17	7.5	8.5
Tieto Banktech	-7.6	44.8	> 100	-1.3	7.7
Tieto Caretech	55.5	63.5	-13	23.9	27.5
Tieto Indtech	27.3	30.5	-10	10.1	11.6
Non-allocated costs	-59.2	-67.7	-13	—	—
Group total	75.2	142.3	-47	4.1	7.6

For more information, see Impairment losses and notes 8, 15 and 30.

Revenue by country


EUR million	2025	2024	Change %
Norway	686.4	688.1	0
Sweden	488.3	486.4	0
Finland	333.6	327.2	2
Other	344.0	377.8	-9
Group total	1 852.3	1 879.5	-1

The distribution of revenue by country is based on the invoicing country. No single customer represents 10%

or more of revenue.


TIETO − ANNUAL REPORT 2025	110

Non-current assets by country


EUR million	31 Dec 2025	31 Dec 2024	Change %
Norway	150.4	291.0	-48
Finland	65.2	110.3	-41
Sweden	40.3	100.7	-60
Other	41.7	69.8	-40
Total non-current assets	297.6	571.8	-48

Non-current assets include property, plant and equipment, right of use assets and intangible assets excluding

goodwill.

Personnel by segment


	End of period				Average
	2025	2024	Change %	Share %	2025	2024
Tieto Tech Consulting	7 675	8 831	-13	54	8 220	9 190
Tieto Banktech	3 139	3 296	-5	22	3 219	3 421
Tieto Caretech	1 516	1 553	-2	11	1 568	1 578
Tieto Indtech	1 402	1 593	-12	10	1 507	1 610
Group functions	515	594	-13	4	575	565
Group total	14 246	15 867	-10	100	15 088	16 363

Personnel by country


	End of period				Average
	2025	2024	Change %	Share %	2025	2024
Norway	2 756	2 881	-4	19	2 833	2 931
Sweden	2 054	2 275	-10	14	2 157	2 397
Finland	1 600	1 684	-5	11	1 647	1 707
India	2 399	2 630	-9	17	2 495	2 709
Ukraine	1 198	1 442	-17	8	1 307	1 551
China	858	1 016	-16	6	937	1 031
Poland	745	896	-17	5	858	847
Latvia	715	794	-10	5	763	804
Czech Republic	584	673	-13	4	629	690
Bulgaria	499	646	-23	4	572	717
Other	839	930	-10	6	890	981
Group total	14 246	15 867	-10	100	15 088	16 363
Onshore countries	6 909	7 382	-6	48	7 169	7 599
Offshore countries	7 338	8 486	-14	52	7 918	8 764
Group total	14 246	15 867	-10	100	15 088	16 363

Depreciation by segment


EUR million	2025	2024	Change %
Tieto Tech Consulting	16.8	6.7	> 100
Tieto Banktech	11.4	7.0	63
Tieto Caretech	5.2	1.1	> 100
Tieto Indtech	4.3	0.8	> 100
Group functions ¹⁾	6.5	29.2	-78
Group total	44.2	44.8	-1

¹⁾ Includes depreciation of right-of-use assets relating to shared premises in 2024. In operating profit (EBIT), such costs are fully allocated to the

operating segments.

Amortization of other intangible assets by segment


EUR million	2025	2024	Change %
Tieto Tech Consulting	0.0	0.0	0
Tieto Banktech	10.3	11.2	-8
Tieto Caretech	3.2	2.6	24
Tieto Indtech	0.3	0.1	74
Group functions	0.1	0.1	-15
Group total	13.9	14.1	-2

Amortization of acquisition-related intangible assets by segment


EUR million	2025	2024	Change %
Tieto Tech Consulting	10.7	12.5	-14
Tieto Banktech	17.7	19.0	-7
Tieto Caretech	0.2	0.2	3
Tieto Indtech	4.1	4.5	-8
Group functions	—	—	—
Group total	32.7	36.2	-10

Impairment losses

In 2025, Tieto Banktech recorded a non-cash charge of EUR 80.4 million in impairment losses. Capitalized

development costs relating to certain internally developed software were written down. The impairment

losses related mainly to the Banking Platform modernization program in Norway, where the remaining

investments have been streamlined to eliminate certain legacy efforts and focus on future customer demand.

The impairment assessment was supported by recent pre-studies with customers and customer contract

renewals.

Tieto Caretech recognized an impairment loss of EUR 2.5 million on capitalized development costs. In Group

functions, impairment losses totalling EUR 2.8 million were recognized on office facilities (right-of-use assets)

in Norway, Sweden and Latvia.

In 2024, Tieto Caretech recognized an impairment loss of EUR 0.6 million on capitalized development costs.

Tieto Tech Consulting bought the remaining 20% share of the joint venture Tieto Esy Oy, which resulted in an

impairment loss of EUR 0.3 million.


TIETO − ANNUAL REPORT 2025	111

6. Discontinued operations


ACCOUNTING POLICIES
Non-current assets or a disposal group are classified as held for sale if their carrying amount will be recovered principally through the disposal of the assets and the sale is highly probable. From the date of classification, assets and the associated liabilities held for sale are measured at the lower of the carrying amount and the fair value less costs to sell. Non-current assets classified as held for sale, or included in a disposal group classified as held for sale, are not depreciated or amortized.
A discontinued operation is reported when a component of the Group that either has been disposed of, or is classified as held for sale, • represents a separate major line of business or geographical area of operations; • is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or • is a subsidiary acquired exclusively with a view to resale. A component of the group is defined as operations and cash flows that can be clearly distinguished operationally and for financial reporting purposes from the rest of the Group.
The profit or loss from the discontinued operation is reported separately from income and expenses from continuing operations in the consolidated income statement, with prior periods presented on a comparative basis. Assets and liabilities related to the discontinued operations are presented as separate line items in the statement of the financial position and the comparative period is not restated. The statement of cash flows combines cash flows from both the continuing and the discontinued operations.
The discontinued operation includes revenue and operating expenses directly related to the disposal group, and other income and costs related to continuing operations that are not expected to continue after the sale transaction or would have been avoided without the sale transaction. Certain costs related to supporting the disposal group during the transition are not included in the discontinued operation.
Intra-group revenues and expenses between continuing and discontinued operations are eliminated. Elimination is done in discontinued operations when the Group intends to engage in similar transactions after the disposal.

Sale of Tietoevry Tech Services business

As announced on 23 March 2025, Tieto entered into an agreement to divest its Tietoevry Tech Services

business to funds advised by Agilitas Private Equity LLP. On 2 September 2025, Tieto announced that it had

completed the sale transaction. Tietoevry Tech Services was an operating segment and represented a major

line of business, and therefore it has been reported as discontinued operations.

The assets and liabilities related to Tietoevry Tech Services were classified as held for sale from 31 March to 31

August 2025. The purchase price for the divested operations amounts to EUR 300 million, of which EUR 70

million is in the form of earn-out payments subject to fulfilment of certain performance milestones in 2026 and

2027 and payable in the form of vendor loans. The Group recorded impairment losses on goodwill of EUR

108.4 million (of which EUR 106.7 million was recorded upon classification as held for sale) on the

measurement of Tietoevry Tech Services' net assets to the fair value less costs to sell of EUR 254.0 million. This

was based on management’s estimate of the present value of the future earn-out payments (EUR 30 million).

Results of discontinued operations


EUR million	2025	2024
Revenue	594.9	923.1
Materials and services	-61.1	-112.9
Employee benefit expenses	-310.2	-479.8
Depreciation and amortization ¹⁾	-16.4	-67.1
Impairment losses	-108.4	-200.6
Loss on sale, net	-129.2	—
Other operating income and expenses, net	-122.9	-175.1
Operating loss (EBIT)	-153.4	-112.5
Financial income and expenses	-3.4	-6.6
Loss before taxes	-156.8	-119.1
Income taxes	-9.3	-14.0
Loss, discontinued operations	-166.1	-133.0

¹⁾ All amortization and depreciation ceased on intangible and tangible assets from 1 April 2025 onwards.

Other comprehensive income from discontinued operations


EUR million	2025	2024
Loss, discontinued operations	-166.1	-133.0
Items that may be reclassified subsequently to profit or loss
Translation differences	3.6	-19.1
Items reclassified to profit or loss
Translation differences	91.6	—
Items that will not be reclassified subsequently to profit or loss
Remeasurements of the defined benefit plans, net of tax	0.1	-0.1
Total comprehensive income, discontinued operations	-70.8	-152.2

Reconciliation of net result of sale


EUR million	31 Dec 2025
Cash	222.6
Post-closing adjustments ¹⁾	7.3
Fair value of contingent consideration ¹⁾	30.0
Total consideration received or receivable	259.9
Carrying amount of net assets on disposal	-290.6
Reclassification of foreign exchange losses from other comprehensive income	-91.6
Costs to sell	-6.0
Other	-0.9
Net result of sale	-129.2

Consideration received in cash	222.6
Costs to sell	-6.0
Cash and cash equivalents disposed of	-15.3
Net cash flow on disposal	201.3

¹⁾Estimated as of 31 December 2025.


TIETO − ANNUAL REPORT 2025	112

Carrying amounts of assets and liabilities on disposal


EUR million	31 Aug 2025
Goodwill	128.9
Other intangible assets¹⁾	18.4
Property, plant and equipment ¹⁾	65.2
Right-of-use assets ¹⁾	99.9
Deferred tax assets	18.4
Interest-bearing receivables	29.4
Trade and other receivables	250.3
Other assets	8.5
Cash and cash equivalents	15.3
Total assets	634.4
Lease liabilities	101.9
Other interest-bearing liabilities	34.3
Deferred tax liabilities	8.8
Provisions	7.9
Trade and other payables	184.0
Other liabilities	7.0
Total liabilities	343.7
Net assets on disposal	290.6

¹⁾ All amortization and depreciation ceased on intangible and tangible assets from April 1 onwards in accordance with IFRS 5.

As at 31 August 2025, Tietoevry Tech Services' number of employees, converted to full-time equivalent (FTE),

amounted to 6 861 (7 073 at 31 December 2024).

Cash flows from discontinued operations

The net cash flows attributable to the operating, investing and financing activities of discontinued operations

are as follows:


EUR million	2025	2024
Cash flow from operating activities	60.5	126.1
Cash flow from/used in investing activities ¹⁾	186.1	-29.3
Cash flow used in financing activities	-16.8	-25.3
Net cash flows from discontinued operations	229.8	71.6

¹⁾ Cash proceeds from the disposal of Tietoevry Tech Services, net of cash disposed of, are included in the net cash flows from investing

activities of discontinued operations.

Customer contract settlements related to ransomware attack

In 2024, Tieto 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 related to the restoration of

services, and contractual service level agreement (SLA) penalties of approximately EUR 0.6 million as a

reduction in revenue. Further, Tieto received claims for damages from customers which were assessed based

on legal and commercial considerations, and for which the Group recorded EUR 7.6 million as a reduction in

revenue. In 2025, the Group recorded expenses of EUR 3.6 million within discontinued operations. The claims

process is ongoing with the insurance provider and based on the current status, the Group recorded insurance

compensation of EUR 7.0 million in 2025.

7. Revenue

The business models of the Group consist of the sale of services, software solutions, implementation 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 services, time and material projects and consulting, the performance obligations satisfied are invoiced on a monthly basis. At the time of invoicing, a receivable is recognized by the Group as this represents the point in time at which the right to consideration becomes unconditional, as only the passage of time is required before payment is due. The standard payment term is 30 days according to the Group’s Credit Policy.
Goods, typically distinct licenses, that provide a right to use the software, are invoiced on delivery. The license revenue is recognized at a point in time when the license is delivered, the legal title has passed, the customer has accepted the license and has access to the licensed software. Distinct licenses, that provide a right to access the software, are recognized over the contract period. Contract assets or liabilities do not typically arise in the businesses described above.
For contracts comprising fixed-price projects, revenue is recognized based on the actual service provided by the reporting date as a proportion of the total services to be provided. This is determined based on the cost of actual labour hours spent relative to the total expected cost of labour hours, as it best reflects the transfer of control to the customer. Estimates of revenues, costs or progress towards completion are revised if circumstances change and any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by management. Invoicing and customer payments in the fixed-price projects follow the payment schedule defined in the customer contract. If the services rendered by the Group exceed the payment, a contract asset is recognized, and if the payments exceed the services rendered, a contract liability is recognized.
The customer contracts of the Group typically comprise several of the business models described above. The most appropriate presentation on how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors is considered to be the disaggregation of revenue by segment, presented in the segment information note 5.


TIETO − ANNUAL REPORT 2025	113


Some contracts include delivery of certain services, licenses and/or hardware provided by another service provider. In these contracts, Tieto acts as an agent, if Tieto does not obtain control of the services or hardware provided by another party before it is transferred to the customer, or as a principal if control is obtained. The principal versus agent assessment is performed at the performance obligation level.
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.

Assets and liabilities related to contracts with customers


EUR million	Note	31 Dec 2025	31 Dec 2024	1 Jan 2024
Trade receivables	18	217.8	391.8	476.8
Contract assets	18	25.1	50.4	58.4
Contract liabilities, non-current	20	0.2	2.4	6.8
Contract liabilities, current	20	51.4	49.6	77.3

In 2025, the assets and liabilities of Tietoevry Tech Services were classified as held for sale (see note 6), and

the resulting decreases were EUR 176.4 million in trade receivables, EUR 21.4 million in contract assets and

EUR 10.8 million in contract liabilities. In addition, the resulting decrease from classifying the assets and

liabilities of Bekk Consulting AS as held for sale (see note note 28) was EUR 17.3 million in trade receivables as

of November 2025.

Revenue recognised from the opening balance of contract liabilities was EUR 42.8 (69.9) million, of which EUR

4.8 million relates to discontinued operations prior to reclassification as held for sale.

Order backlog

The transaction price allocated to all fully or partially unsatisfied performance obligations (order backlog)

amounted to EUR 2 180 (1 925) million at the end of the year. Of the backlog, 50% is expected to be recognized

as revenue during 2026. 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	2025	2024
Capitalized set-up costs on 31 Dec	0.4	2.6
Amortization of capitalized set-up costs	—	—

In 2025, the capitalized set-up costs of EUR 0.4 million are current and presented in trade and other

receivables. In 2024, the capitalized set-up costs of EUR 2.6 million related to discontinued operations of

which the non-current portion of EUR 0.8 million was presented within other non-current receivables and the

current portion of EUR 1.8 million in trade and other receivables.

8. Other operating income and expenses

Other operating income mainly relates to transitional services income, rental income, 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	2025	2024
Transitional services income	8.7	—
Rental and other premises related income	4.3	0.7
Change in fair value of derivatives	2.2	3.3
Government grants	1.0	1.5
Gain on sale of property, plant and equipment, and business operations	0.7	4.5
Joint venture management fees	—	0.2
Other	4.1	5.4
Total	21.0	15.7

In 2024, Tieto Banktech recognized a net gain of EUR 4.3 million on the sale of its share in a joint venture. For

more information, see note 30.


TIETO − ANNUAL REPORT 2025	114

Other operating expenses


EUR million	2025	2024
Information and communication technology	63.3	59.8
Professional services and marketing	33.4	32.8
Premises related costs	19.9	21.7
Other¹⁾	32.8	33.0
Total	149.4	147.3

¹⁾ Other operating expenses include expenses related to travel, recruitment and insurance.

Fees to auditors


EUR million	2025	2024
Audit fees	1.3	1.6
Audit related	0.2	0.4
Tax advisory	0.0	0.0
Other services	0.0	0.3
Total	1.6	2.3

9. Income taxes


ACCOUNTING POLICIES
Income tax expense includes current tax of the Group companies based on the taxable profit for the year, together with 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 assets and liabilities are recognized, using the liability method, on temporary differences between the tax bases of assets and liabilities and their carrying amounts in the statement of financial position as well as on tax loss carry forwards. Deferred taxes are measured using the tax rates and laws that 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 tax assets are recognized to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax liabilities 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. 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.
Deferred tax assets and liabilities are offset in the balance sheet when there is a legally enforceable right to offset current tax assets against current tax liabilities and when they relate to the same tax authority.


ACCOUNTING ESTIMATES AND JUDGEMENTS
Judgement is required in determining uncertain tax positions, deferred taxes, and the extent to which deferred tax assets can be recognized. 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 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	2025	2024
Current taxes	26.3	32.6
Change in deferred taxes	-13.8	-6.5
Taxes for prior years	2.9	0.9
Total	15.3	27.0

Reconciliation of income tax expense


EUR million	2025	2024
Profit before taxes	41.0	97.2
Tax calculated at the domestic corporation tax rate of 20%	8.2	19.4

Effect of different tax rates in foreign subsidiaries	1.1	3.6
Tax effect of other non-deductible expenses and tax exempt income	-0.4	0.3
Taxes for prior years	2.9	0.9
Deferred taxes from previous year	-0.2	-3.8
Tax on foreign dividend distribution	-0.4	1.8
Other items¹⁾	4.1	4.8
Total	15.3	27.0
Effective tax rate, %	37.4	27.8

¹⁾ Includes tax impact from allocation of income and expenses between continuing and discontinued operations in accordance with IFRS 5.

Impact of OECD Pillar Two model rules

OECD Pillar Two model rules introduced a global minimum tax rate of 15% per jurisdiction. The relevant

legislation has been effective from 1 January 2024 in Finland, and Tietoevry Corporation is within the scope of

these rules. The Group has performed an analysis of the impact of the Pillar Two legislation, including

applicability of the Transitional Safe Harbours and an analysis of potential income tax expense with respect to

Lithuania not meeting the Safe Harbour requirements. In 2025, based on this analysis, the impact on the

Group's income tax expense is immaterial.


TIETO − ANNUAL REPORT 2025	115

Movements in deferred tax assets and liabilities


EUR million	1 Jan 2025	Charged to income statement ¹⁾	Charged to other compre- hensive income	Classified as held for sale	Other changes	31 Dec 2025
Deferred tax asset
Tax losses carried forward	16.1	5.7	—	-16.0	0.1	6.0
Property, plant and equipment	7.0	-0.3	—	-4.2	-0.1	2.4
Lease liabilities	39.3	-2.8	—	-20.4	0.0	16.1
Employee benefits	8.9	-0.7	-0.1	-1.4	-0.3	6.5
Provisions	2.8	2.6	-0.1	-1.0	0.0	4.3
Revenue recognition	2.3	-0.5	—	-0.6	0.0	1.2
Other temporary difference	3.7	1.2	—	-0.1	-0.3	4.5
Total gross	80.1	5.2	-0.2	-43.7	-0.6	40.9
Offset against deferred tax liabilities	-74.7					-32.9
Total net	5.4					8.0

Deferred tax liability
Intangible assets	36.0	-9.0	—	-1.5	-0.8	24.7
Right-of-use assets	36.0	-3.6	—	-18.4	0.0	14.1
Untaxed reserves	9.8	0.0	—	-8.9	0.6	1.4
Other temporary difference	17.0	-1.2	-0.1	-1.0	1.0	15.7
Total gross	98.8	-13.8	-0.1	-29.7	0.8	55.9
Offset against deferred tax assets	-74.7					-32.9
Total net	24.1					23.0

Net balance	-18.7	19.0	0.0	-13.9	-1.4	-15.0

¹⁾ Charged to income statement includes the change in deferred taxes for discontinued operations up until the classification as held for sale on

31 March 2025. The change in deferred taxes reported in the income statement includes only continuing operations. For more information, see

Material accounting policy information.

The majority of the deferred tax assets and liabilities is expected to be recovered after more than 12 months.

On 31 December 2025, the Group's unused tax loss carry forwards amounted to EUR 24.4 (73.6) million

pertaining to deferred tax assets of EUR 6.0 (16.1) million. These losses relate mainly to the USA, Norway and

Finland. In the USA and Norway, there is no expiry date for utilization of tax losses. In Finland, the tax losses

expire after ten years. 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 2025, there were no unrecognized tax loss carry forwards. In 2024, tax loss carry forwards

which were not recognized due to uncertainty of utilization amounted to EUR 0.4 million pertaining to deferred

tax assets of EUR 0.1 million.

The Group does not have any material uncertain tax positions in accordance with IFRIC 23 Uncertainty over

Income Tax Treatments.


EUR million	1 Jan 2024	Charged to income statement ¹⁾	Charged to other compre- hensive 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


TIETO − ANNUAL REPORT 2025	116

10. Earnings per share

The total number of Tieto's shares on 31 December 2025 amounted to 118 640 150. At the end of the reporting

period, the number of own shares totalled 238 572 , representing 0.20% of the total number of shares and

voting rights. For more information, see note 27.


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 Tieto 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.
When calculating EPS for discontinued operations, both basic and diluted EPS are calculated using the same weighted average number of shares as used for continuing operations.


	2025	2024
Profit/loss attributable to owners of the Parent company (EUR million)
Continuing operations	25.6	70.2
Discontinued operations	-166.1	-133.0
Net loss for the financial year attributable to owners of the Parent company (EUR million)	-140.5	-62.8

Weighted average number of shares during the year
Basic	118 490 938	118 522 308
Effect of dilutive share-based incentive plans	177 697	104 015
Diluted	118 668 635	118 626 323

Earnings per share (EUR)
Basic
Continuing operations	0.22	0.59
Discontinued operations	-1.40	-1.12
Net loss for the period	-1.19	-0.53
Diluted
Continuing operations	0.22	0.59
Discontinued operations	-1.40	-1.12
Net loss for the period	-1.18	-0.53


TIETO − ANNUAL REPORT 2025	117

COMPENSATION AND BENEFITS

This section comprises disclosures on the Group's employee benefits,

including remuneration of the management and the Board of Directors.

11. Employee benefit expenses

Employee expenses consist of wages and salaries and related social costs. Tieto 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	2025	2024
Wages and salaries ¹⁾	833.2	850.2
Post-employment benefits
Defined contribution plans	58.3	59.1
Defined benefit plans	1.8	6.8
Other benefits	18.2	17.4
Other statutory social costs	147.2	147.1
Share-based payments	2.7	5.1
Other personnel expenses	3.2	0.8
Total	1 064.5	1 086.4

¹⁾ Includes termination benefits.

12. Remuneration of key management

Key management of Tieto includes the members of the Board of Directors, the Group Executive Team 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 Tieto in exchange for services rendered.

Management remuneration


	2025			2024
EUR thousand	President and CEO (current)	President and CEO (former)	Group Executive Team	President and CEO	Group Executive Team
Salaries and benefits ¹⁾	624.0	1 549.6	3 209.7	914.3	3 198.0
Bonuses²⁾	678.0	680.1	911.3	105.8	481.2
Termination benefits	—	793.4	420.0	—	294.3
Share-based payments¹⁾	55.1	1 888.3	1 060.4	678.8	832.2
Statutory pensions ¹⁾	5.5	199.9	386.1	163.9	328.5
Supplementary pensions ¹⁾	130.1	417.7	556.1	225.8	351.3
Management entity compensation ^2,3)	—	—	454.8	—	267.4
Total	1 492.6	5 528.9	6 998.4	2 088.6	5 752.9

¹⁾ Include amounts related to the notice period in certain mutual agreements.

²⁾In 2025, the bonuses include amounts paid in connection with the sale of Tietoevry Tech Services. Other bonuses are based on latest

estimates. The comparative information has been updated based on the amounts paid.

³⁾ In 2025, a management entity providing key management personnel services is used for a new Group Executive Team member in connection

with the service agreement. Previously, it was used on a temporary basis.

The table includes management remuneration based on the time as a member in the Group Executive Team,

and it is presented on an accrual basis, except as noted above. Tietoevry Tech Services was presented as a

discontinued operation from 31 March 2025 onwards, and their member of the Group Executive Team

continued in that role up until 2 September 2025.

In April 2025, Tieto announced that its President and CEO, Kimmo Alkio, would step down after 14 years in the

position. The Board appointed Endre Rangnes as Interim CEO effective 5 May 2025, and subsequently

confirmed him as President and CEO on 21 July 2025.

The remuneration of the former CEO, Kimmo Alkio, includes salary and benefits accrued until his departure, as

well as exit-related payments in accordance with his contractual terms. These include severance payments,

and long-term and short-term incentives based on the mutual agreement approved by the Board. Pension

arrangements for Kimmo Alkio follow Finnish market practice and include a supplementary pension of 23% of

the annual base salary and a retirement age of 63. In 2025, after deductions for applicable taxes, Kimmo Alkio

received 13 742 shares, as part of the company’s share-based incentive program.

Endre Rangnes’ remuneration as Interim CEO and subsequently as President and CEO comprises fixed salary,

benefits, eligibility for annual bonus and long-term incentive programs, and pension contributions. He is

entitled to a short-term incentive (STI) of 75% of annual base salary at target, with a maximum of 150%, based

on performance criteria set by the Board. He participates in Tieto’s defined contribution plan and an additional

pension arrangement, with a retirement age of 70.

Generally, the members of the Group Executive Team 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 Team members' supplementary pension arrangement is up to 15%

of the annual base salary. The retirement age of the Group Executive Team members is according to national

legislation. The termination terms vary and the amounts correspond to the periods of notice. The Group

Executive Team members participate in the Long-term incentive programs according to respective terms and

conditions decided by the Board of Directors. In 2025, after deductions for applicable taxes, a total of 24 324

(27 120) shares were delivered to the Group Executive Team members.


TIETO − ANNUAL REPORT 2025	118

Remuneration for the Board of Directors


EUR thousand	2025	2024
Board members at 31 Dec 2025
Tomas Franzén, Chairperson Board and RC	187.4	187.9
Harri-Pekka Kaukonen, Deputy Chairperson, Chairperson ARC	121.4	117.5
Nina Bjornstad (as of 25 March 2025)	82.7	—
Bertil Carlsén	89.1	85.6
Elisabetta Castiglioni	89.1	85.6
Marianne Dahl (as of 25 March 2025)	80.3	—
Liselotte Hägertz Engstam (until 25 March 2025)	8.0	84.0
Katharina Mosheim (until 25 March 2025)	8.0	85.6
Gustav Moss	94.7	95.2
Petter Söderström	93.1	96.0
Endre Rangnes (until 3 September 2024)	—	86.4
Tommy Sander Aldrin, personnel rep.	15.6	7.7
Ilpo Waljus, personnel rep.	15.6	7.7
Thomas Slettemoen, personnel rep.	—	15.3
Minna Kilpala, personnel deputy rep.	7.8	—
Anders Palklint, personnel deputy rep. (until 2 September 2025)	7.8	15.3
Björn Tjernström, personnel deputy rep. (as of 2 September 2025)	4.6	—
Total	905.2	969.7

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 140 200, Deputy Chairperson EUR 75 000, and ordinary member EUR 56 700. 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 personnel

representatives elected as ordinary members of the Board of Directors will be an annual fee of EUR 15 600,

and remuneration for the deputy members will be EUR 7 800. Remuneration for the personnel 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 Tieto except for the personnel representatives.

The Shareholders' Nomination Board (SNB) based on shareholdings as at 29 August 2025 consisted of the

following representatives announced by Tieto’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

• Jukka Vähäpesola, Head of Equities, Elo Mutual Insurance Company

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

13. Share-based payments

Tieto offers two types of global share-based compensation plans: Performance Share Plans and Restricted

Share Plans.


ACCOUNTING POLICIES
Tieto 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 Tieto 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 Tieto'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 2025, Tieto's share-based incentive

plans included Performance Share Plans 2023–2025, 2024–2026 and 2025–2027 as well as Restricted Share

Plans 2023–2025, 2024–2026 and 2025–2027. 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 2022–2024 and the Restricted Share Plan 2022–2024 ended in 2025. Based on

the achievements of the targets, a total of 284 011 gross shares were earned and of these 156 667 net shares

were delivered to the participants. Tieto used its treasury shares for the reward payments.


TIETO − ANNUAL REPORT 2025	119

In 2025, the following gross shares were earned and paid fully in cash to participants who left Tieto in

accordance with the plan rules: a total of 22 755 gross shares under Performance Share Plan 2023–2025, a

total of 8 067 gross shares under Performance Share Plan 2024–2026 and a total of 31 gross shares under

Performance Share Plan 2025–2027. Upon the disposal of Tietoevry Tech Services, the active LTI plans were

settled in cash according to a board resolution corresponding to 50 227 gross shares.

Main terms and conditions of the share-based incentive plans


Performance Share Plan	2023–2025	2024–2026	2025–2027
Plan launched	14 February 2023	14 February 2024	14 February 2025
Performance period	2023–2025	2024–2026	2025–2027
Vesting conditions	Relative Total Shareholder Return of Tieto 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 Tieto share (TSR) and ESG targets (gender diversity and CO 2 reduction). Valid employment or director agreement of a key employee upon the reward payment.	Relative and Absolute Total Shareholder Return of Tieto share (TSR) and ESG targets (gender diversity and CO 2 reduction). Valid employment or director agreement of a key employee upon the reward payment.
Exercised	In shares and cash in 2026	In shares and cash in 2027	In shares and cash in 2028
Number of participants on 31 Dec 2025	330	403	476
Other	On 31 Dec 2025, rewards to be paid correspond to the value of approximate number of 487 029 Tieto gross shares.	On 31 Dec 2025, rewards to be paid correspond to the value of approximate number of 562 949 Tieto gross shares.	On 31 Dec 2025, rewards to be paid correspond to the value of approximate number of 843 497 Tieto gross shares.


Restricted Share Plan	2023–2025	2024–2026	2025–2027
Plan launched	14 February 2023	14 February 2024	14 February 2025
Vesting period	2023–2025	2024–2026	2025–2027
Vesting conditions	Valid employment or director agreement of a key employee upon the reward payment.
Exercised	In shares and cash in 2026	In shares and cash in 2027	In shares and cash in 2028
Number of participants on 31 Dec 2025	109	147	154
Other	On 31 Dec 2025, rewards to be paid correspond to the value of approximate number of 75 484 Tieto gross shares.	On 31 Dec 2025, rewards to be paid correspond to the value of approximate number of 44 588 Tieto gross shares.	On 31 Dec 2025, rewards to be paid correspond to the value of approximate number of 49 343 Tieto gross shares.

Assumptions made in determining the fair value of Tieto'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 2025, 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 15.98

• Expected annual dividends: EUR 1.5

• Risk-free interest rate: 1.95%

• Expected volatility (historical daily observations over corresponding maturity): 23.73%

• Contractual life: 2.53 years

• Fair value at grant: EUR 5.29

• Share price at year-end: EUR 18.30

Share-based payments included in employee benefit expenses


EUR million	2025	2024
Equity-settled share-based incentive plans	2.7	5.1
Cash-settled share-based incentive plans ¹⁾	2.4	0.0
Social costs settled in cash ²⁾	0.6	0.2
Total	5.7	5.3

¹⁾ Relates mainly to key management remunerations, see note 12.

²⁾ Social costs from all plans are reported as cash-settled.

Liabilities arising from share-based payments amount to EUR 3.0 (0.8) million. The liabilities include key

management remuneration for 2025 to be settled in cash in 2026, 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 5.3 million.


TIETO − ANNUAL REPORT 2025	120

14. 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 either funded with payments to insurance companies or unfunded with pensions paid from operations.
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 amended its old supplementary pension plan in 2024 to revert changes implemented in

2021 and revert to the TyEL index linkage. As a result, the defined benefit pension plans have been TyEL index

linked as of 1 January 2025 and the affected beneficiaries were 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 in December

2024 and paid in 2025. Additionally, EUR 0.3 million was booked as compensation in 2025.

The Group’s risk covers approximately 840 (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 21 (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 2025, 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

for as a liability in the consolidated statement of financial position. The plan covers 504 (688) employees and

pensioners. In addition, there are various other closed and unfunded pension plans in Norway covering 176

(252) employees and pensioners.

In Poland, the risk is only on active employees and the plan covers 770 (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	2025	2024
Service cost
Current service cost	1.3	1.1
Settlement gains/losses	0.2	0.1
Amendments	—	4.0
One-time compensation	0.3	1.6
Net interest expense	0.4	0.3
Total	2.2	7.1

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	-2.1	0.0
Gains (-)/losses (+) from experience adjustments	0.4	-0.7
Gains (-)/losses (+) on plan assets	1.4	0.1
Total	-0.3	-0.7


TIETO − ANNUAL REPORT 2025	121

Amounts recognized in the statement of financial position


	Present value of defined benefit obligaton¹⁾		Fair value of plan assets ²⁾		Net liability
EUR million	2025	2024	2025	2024	2025	2024
1 Jan	48.8	30.9	-23.6	-5.4	25.3	25.5
Current service cost³⁾	1.5	1.7	—	—	1.5	1.7
Interest expense/income³⁾	1.1	0.5	-0.7	-0.2	0.4	0.3
Employer contribution	—	—	-0.2	-0.8	-0.2	-0.8
Benefits paid	-4.2	-4.0	1.8	0.1	-2.4	-3.9
Amendments	—	21.8	—	-17.7	0.0	4.0
Curtailment and settlement	-0.2	-0.2	0.4	0.3	0.2	0.2
Actuarial gains/losses ³⁾	-1.7	-0.6	1.4	0.0	-0.4	-0.6
Classified as held for sale	-4.3	—	1.4	—	-2.9	—
Exchange rate differences	0.0	-1.2	-0.1	0.1	-0.1	-1.1
31 Dec	41.0	48.8	-19.8	-23.6	21.3	25.3

¹⁾ Of which EUR 23.3 (26.7) million in Finland, EUR 0.6 (1.4) million in Sweden, EUR 17.1 (20.7) million in Norway and 0.1 (0.1) million in Poland.

²⁾ Of which EUR 18.8 (21.4) million in Finland and EUR 0.9 (2.2) million in Sweden. Benefits are paid directly in Norway and Poland without

holding plan assets.

³⁾ Includes current service cost, interest expense/income and actuarial gains/losses for discontinued operations up until the classification as

held for sale on 31 March 2025. The current service cost and interest expense/income reported in the income statement and the actuarial

gains/losses reported in the other comprehensive income include only continuing operations. For more information, see Material accounting

policy information.


EUR million	2025	2024
Defined benefit obligations	21.7	26.1
Defined benefit plan assets	-0.4	-0.8
Net liability	21.3	25.3

Allocation of plan assets

In Sweden, the plan assets are comprised from equity and debt instruments EUR 0.6 (1.4) million and other

assets EUR 0.3 (0.8) 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


%	2025	2024
Finland
Discount rate	4.0	3.2
Future pension increases	2.2	2.2
Inflation rate	2.0	2.0

Sweden
Discount rate	3.8	3.0
Future salary increases	1.7	1.8
Future pension increases	1.7	1.8
Inflation rate	1.7	1.8

Norway
Discount rate	3.9	3.9
Future salary increases	4.0	4.0
Growth in the basic state pension (G)	3.8	3.8

Poland
Discount rate	5.2	5.6
Future salary increases	2.0	4.5


TIETO − ANNUAL REPORT 2025	122

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%	-4.7%	5.2%
Future pension increase	0.5%	4.7%	-4.4%
Life expectancy	+1 year	5.5%

Impact on defined benefit obligation in Sweden
Discount rate	0.5%	-7.7%	8.6%
Future salary increase	0.5%	9.2%	-7.8%
Future pension increase	0.5%	6.8%	-6.0%
Life expectancy	+1 year	3.0%

Impact on defined benefit obligation in Norway
Discount rate	0.5%	-1.3%	1.5%
Future salary increase	0.5%	0.1%	-0.1%
Future pension increase	0.5%	1.2%	–
Life expectancy	+1 year	1.1%

Impact on defined benefit obligation in Poland
Discount rate	0.5%	-5.4%	5.9%
Future salary increase	1.0%	12.6%	-10.8%

Maturity profile of the defined benefit obligation

The weighted average duration of the defined benefit obligation is 10 years in Finland, 17 years in Sweden, 15

years in Norway and 16 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	2025
Maturity under 1 year	3.2
Maturity 1–5 years	12.7
Maturity 5–10 years	14.3
Maturity 10–30 years	30.3
Maturity over 30 years	2.9
Total future benefit payments	63.4

Expected contributions in 2026

Expected contributions to post-employment benefit plans for the year ending 31 December 2026 are EUR 0.3

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 the Group's Swedish companies 977 (1 791) employees are included in the ITP2 pension plans.

The yearly contributions to the plans are around EUR 6 (10) million.

2 146 (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 2025 was 2.7% (2.7) corresponding to EUR 3.0 (4.4) 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.


TIETO − ANNUAL REPORT 2025	123

INVESTED CAPITAL AND WORKING CAPITAL ITEMS

This section includes disclosures describing the assets that form the basis for

the activities of Tieto and the related liabilities.

15. Goodwill and other intangible assets

Tieto'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. Tieto 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


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.


TIETO − ANNUAL REPORT 2025	124

Intangible assets


EUR million	Goodwill	Software acquired separately	Intangible assets recognized from acquisitions ¹⁾	Internally developed software	Other	Advance payments	Total
Acquisition cost 1 Jan 2025	1 847.7	25.4	270.7	295.2	18.6	0.8	2 458.4
Additions	—	0.4	—	50.4	—	0.5	51.3
Disposals and retirements	—	-0.9	-173.4	-88.4	—	—	-262.7
Reclassifications	—	0.8	—	—	—	-0.8	—
Classified as held for sale	-557.8	-21.5	-46.7	-1.1	-17.9	-0.3	-645.3
Translation differences	19.5	0.1	1.2	-0.2	—	0.0	20.6
Acquisition cost 31 Dec 2025	1 309.4	4.2	51.8	256.0	0.7	0.2	1 622.2

Accumulated amortization and impairments 1 Jan 2025	-199.5	-14.6	-206.2	-58.9	-17.2	—	-496.4
Disposals and retirements	—	1.0	173.4	88.4	—	—	262.9
Amortization ²⁾	—	-1.8	-34.6	-13.4	-0.3	—	-50.1
Impairments³⁾	-106.7	—	—	-81.2	—	—	-187.9
Reclassifications	—	0.0	—	—	0.0	—	—
Classified as held for sale	315.0	11.6	41.5	0.9	16.8	—	385.8
Translation differences	-8.8	0.1	-2.4	0.3	—	—	-10.8
Accumulated amortization and impairments 31 Dec 2025	—	-3.7	-28.3	-63.8	-0.7	—	-96.5

Carrying value 1 Jan 2025	1 648.2	10.8	64.4	236.3	1.4	0.8	1 962.0
Carrying value 31 Dec 2025	1 309.4	0.5	23.4	192.2	0.0	0.2	1 525.8

¹⁾Includes technology and customer related intangible assets as well as trademark recognized at fair value from acquisitions. In accordance with the accounting policy, these assets are retired at the end of the period in which the amortization ends. In 2025, the amortization ended for the customer

related intangible assets recognized in connection with the EVRY acquisition in 2019. The acquisition cost of these assets totalled EUR 173.4 million.

²⁾ Includes amortization for discontinued operations up until the classification as held for sale on 31 March 2025. The amortization reported in the income statement includes only continuing operations. For more information, see Material accounting policy information.

³⁾ For more information on impairments, see note 6 as well as Impairment losses in note 5.


TIETO − ANNUAL REPORT 2025	125


EUR million	Goodwill	Software acquired separately	Intangible assets recognized from acquisitions ¹⁾	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 and retirements	—	-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 and retirements	—	9.7	1.4	68.0	1.3	—	80.5
Amortization ²⁾	—	-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.

²⁾ Includes amortization for discontinued operations. The amortization reported in the income statement includes only continuing operations. For more information, see Material accounting policy information.

Internally developed software and other development costs

The Group’s development costs amounted to approximately EUR 118.1 (106.4) million, representing 6.3% (5.7)

of the Group's revenue. Of these costs, EUR 50.4 (45.2 ) million were capitalized. In 2025, the focus was on

developing industry-specific software, especially solutions for Financial Services and Healthcare.


TIETO − ANNUAL REPORT 2025	126

Impairment testing of goodwill

The annual impairment testing was carried out in the fourth quarter of 2025 in line with Group accounting

policy. The Group is organized into four businesses which are Tieto Tech Consulting, Tieto Banktech, Tieto

Caretech, and Tieto Indtech. The four 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 2025	31 Dec 2024
Tieto Tech Consulting	576.5	688.5
Tieto Banktech	297.3	295.2
Tieto Caretech	253.0	250.2
Tieto Indtech	182.7	180.7
Tietoevry Tech Services	—	233.6
Total	1 309.4	1 648.2

Compared to 31 December 2024, the goodwill balance decreased due to the classification of Tietoevry Tech

Services (see note 6) and Bekk Consulting AS (see note 28) as held for sale, and exchange rate fluctuations of

EUR 10.8 million.

Recoverable amounts and assumptions used

The recoverable amounts of the CGUs of Tieto 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 the 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, 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. 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 10.7%.

Key assumptions used in discounting the cash flow projections by the CGUs


Key assumption %	Terminal growth rate		Pre-tax WACC
	2025	2024	2025	2024
Tieto Tech Consulting	1.5	1.5	10.7	10.9
Tieto Banktech	1.5	1.5	9.1	8.9
Tieto Caretech	1.5	1.5	8.6	8.6
Tieto Indtech	1.5	1.5	8.8	8.6
Tietoevry Tech Services	—	0.0	—	10.7

Results of impairment testing

The results of the impairment testing indicate adequate headroom for all CGUs in 2025, and no reasonable

change in the key assumptions would result in goodwill impairment in any of the CGUs.

The value-in-use calculation for each CGU is most sensitive to changes in WACC and EBITDA margin

assumptions.

16. Property, plant and equipment

Tieto'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 plans 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.


TIETO − ANNUAL REPORT 2025	127

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 2025	1.2	3.4	272.6	61.6	7.9	346.8
Additions	—	—	3.3	1.6	4.7	9.7
Disposals and retirements	—	—	-5.2	-1.1	0.2	-6.2
Reclassifications	—	—	2.0	1.6	-3.6	—
Classified as held for sale	—	—	-228.2	-39.7	-9.1	-277.0
Translation differences	—	—	2.3	0.1	0.0	2.4
Acquisition cost 31 Dec 2025	1.2	3.4	46.8	24.1	0.2	75.7

Accumulated depreciation and impairments 1 Jan 2025	—	-1.9	-216.8	-45.9	—	-264.6
Disposals and retirements	—	—	5.4	1.1	—	6.4
Depreciation ¹⁾	—	-0.1	-12.4	-4.0	—	-16.5
Reclassifications	—	—	1.2	-1.2	—	—
Classified as held for sale	—	—	186.1	31.8	—	217.9
Translation differences	—	—	-1.2	-0.1	—	-1.3
Accumulated depreciation and impairments 31 Dec 2025	—	-2.0	-37.6	-18.4	—	-58.0

Carrying value 1 Jan 2025	1.2	1.5	55.9	15.7	7.9	82.2
Carrying value 31 Dec 2025	1.2	1.4	9.2	5.7	0.2	17.7

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 and retirements	—	—	-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 and retirements	—	—	100.2	7.1	—	107.3
Depreciation ¹⁾	—	-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

¹⁾ Includes depreciation for discontinued operations up until the classification as held for sale on 31 March 2025. The depreciation reported in the income statement includes only continuing operations. For more information, see Material accounting policy information.


TIETO − ANNUAL REPORT 2025	128

17. Leases

Tieto 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. The Group also leases equipment for data

centres to support continuous service delivery to its customers, the majority of which related to Tietoevry

Tech Services.


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 6.9%.
The Group determines the lease term as the non-cancellable period of the lease, together with the periods covered by an option to extend the lease, if it is reasonably certain to be exercised, and periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Group has some lease contracts for which the lease term is cancellable with only a short notification period (“evergreen leases”). Management uses judgement to evaluate the lease term for leases with extension or termination options, and for leases with a short notification period. Management estimates the lease term based on overall strategy and business development plans as well as contract specific facts and circumstances.
At 31 December 2025, the weighted average residual lease term for lease contracts is 2.9 years (residual terms vary between 0.1–7.7 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 as well as variable lease payments that are not included in the lease liability are also presented in the 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. 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.
The Group has sublease agreements for certain office premises originally leased under head lease contracts. The Group accounts for subleases by classifying them with reference to the right-of-use asset arising from the head lease. Subleases are classified as finance leases if substantially all the risks and rewards associated with the right-of-use asset have been transferred to the sub-lessee. If not, they are classified as operating subleases. For finance subleases, the right-of-use asset is derecognized and a net investment in the sublease is recognized. The lease payments are disclosed as amortization of the net investment in the lease and interest income. For operating subleases, the right-of-use asset remains on the balance sheet and lease income is recognized on a straight-line basis.

Leases impact on income statement


EUR million	31 Dec 2025	31 Dec 2024
Depreciation expenses of right-of-use assets	-35.2	-35.9
Impairment losses	-2.8	—
Other operating income and expenses
Income from subleasing right-of-use assets	3.0	0.7
Net gain on lease termination	0.4	0.6
Variable lease payments	-3.4	-4.0
Short-term leases and low value leases	-1.8	-3.1
Financial income and expenses
Finance income on the net investment in the sublease	0.1	—
Interest expense on lease liabilities	-5.9	-6.0
Impact on income statement, net	-45.5	-47.6

Leases impact on statement of cash flows


EUR million	31 Dec 2025	31 Dec 2024
Income received from operating subleases (operating activities)	1.4	0.7
Interest received from finance subleases (operating activities)	0.1	0.1
Principal received from finance subleases (investing activities)	1.0	0.8
Interest paid (operating activities)	-9.4	-11.6
Principal paid (financing activities)	-48.5	-56.6


TIETO − ANNUAL REPORT 2025	129

Leases impact on the statement of financial position

Right-of-use assets (Tieto as a lessee)


EUR million	Buildings	Machinery and equipment	Total
1 Jan 2025	156.2	19.6	175.8
Additions ¹⁾	23.8	6.9	30.7
Terminations	-8.9	-1.3	-10.2
Depreciation ²⁾	-33.7	-7.0	-40.7
Impairment³⁾	-2.8	—	-2.8
Classified as held for sale	-83.8	-8.7	-92.5
Translation differences	3.0	0.3	3.3
31 Dec 2025	53.9	9.7	63.6

1 Jan 2024	177.0	18.9	195.9
Additions ¹⁾	62.4	12.6	75.0
Terminations	-29.9	-2.5	-32.4
Depreciation ²⁾	-48.7	-9.3	-58.0
Impairment³⁾	-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

¹⁾ Additions represent increases in right-of-use assets due to new lease contracts, as well as remeasurements and lease modifications.

²⁾ Includes depreciation for discontinued operations up until the classification as held for sale on 31 March 2025. The depreciation reported in

the income statement includes only continuing operations. For more information, see Material accounting policy information.

³⁾ For more information, see note 5.

Lease liabilities


EUR million	31 Dec 2025	31 Dec 2024
Current	32.4	50.5
Non-current	43.0	142.6
Total	75.4	193.0

The movement in lease liabilities during the reporting period is presented in note 22.

The maturity structure of contractual undiscounted lease payments is presented in note 21.

Lease receivables

Following the divestment of Tietoevry Tech Services, the Group no longer holds contracts as a lessor, except in

a few cases where the Group acts as an intermediate lessor in sublease arrangements of office premises.

Net investment in leases


EUR million	31 Dec 2025	31 Dec 2024
Current	1.4	1.4
Non-current	2.1	—
Total	3.6	1.4

Maturity analysis - contractual undiscounted cash flows for finance leases


EUR million	31 Dec 2025	31 Dec 2024
Within one year	1.5	1.4
One to two years	1.2	—
Two to three years	1.1	—
Total undiscounted lease receivable	3.9	1.4
Unearned finance income	-0.3	0.0
Net investment in leases	3.6	1.4

18. Trade and other receivables

Trade receivables represent amounts that Tieto 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). Tieto 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, Tieto uses the ECL rate set for “not yet due” invoices in the allowance matrix.


TIETO − ANNUAL REPORT 2025	130


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 24.

Average ECL rates¹⁾


%	31 Dec 2025	31 Dec 2024
Not yet due	0.01%	0.01%
Overdue 1–7 days	0.01%	0.01%
Overdue 8–30 days	1.70%	1.74%
Overdue 31–60 days	3.41%	2.82%
Overdue 61–90 days	5.92%	4.90%
Overdue over 90 days	60.00%	60.00%

¹⁾ As described in the accounting policy, the ECL rates are based on certain credit characteristics and therefore the rate used varies within the

ageing class depending on the country and customer industry group.

Trade and other receivables


EUR million	31 Dec 2025	31 Dec 2024
Non-current
Prepaid expenses and accrued income	4.2	19.4
Finance lease receivables	2.1	—
Other interest-bearing receivables ¹⁾	0.2	14.7
Other	4.3	5.7
Total	10.9	39.8

Current
Trade receivables at amortized cost	217.8	391.8
Prepaid expenses and accrued income
Contract assets	25.1	50.4
License fees	17.0	46.5
Other prepaid expenses and accrued income	9.3	34.4
Finance lease receivables	1.4	1.4
Other interest-bearing receivables	0.2	14.5
Other²⁾	18.2	11.8
Total	288.9	550.7

¹⁾ The presentation of Other non-current receivables has been amended to include other interest-bearing receivables, previously presented in

Other financial assets at amortized cost in the statement of financial position. The comparative information has been updated accordingly.

²⁾ Includes mainly post-closing adjustment receivable from the disposal of Tietoevry Tech Services (see note 6 ), value added tax receivables and

capitalized set-up costs to fulfil a contract.

Net contract assets


EUR million	2025	2024
Contract assets	25.1	50.4
Loss allowance	-0.0	-0.0
Net contract assets	25.1	50.4

Net contract assets are not yet due.

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	2025	2025	2025	2024	2024	2024
Not yet due	185.1	-0.0	185.0	342.0	-0.0	341.9
Overdue 1–7 days	21.6	-0.0	21.5	30.7	-0.0	30.7
Overdue 8–30 days	3.9	-0.1	3.8	7.5	-0.3	7.3
Overdue 31–60 days	3.4	-0.1	3.3	4.7	-0.2	4.5
Overdue 61–90 days	1.4	-0.1	1.3	4.3	-0.6	3.7
Overdue over 90 days	6.5	-3.7	2.9	7.3	-3.5	3.7
Total	221.9	-4.1	217.8	396.4	-4.7	391.8

There are no major concentrations of credit risk in the Group, see note 21. Impairment losses recognized on

trade receivables and contract assets are included in other operating expenses in the income statement.

Movements in loss allowances on trade receivables


EUR million	2025	2024
1 Jan	4.7	2.8
Translation differences	-0.0	-0.0
Changes in loss allowances recognized	2.8	2.0
Amounts written off as uncollectible	-0.2	-0.1
Classified as held for sale	-3.1	—
31 Dec	4.1	4.7


TIETO − ANNUAL REPORT 2025	131

19. Provisions

Provisions at Tieto 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 2025	19.4	1.0	2.9	23.3
Translation differences	0.5	0.0	0.0	0.5
Classified as held for sale	-9.4	-0.1	-1.0	-10.5
Increases in provisions	49.6	0.1	6.3	56.0
Use of provisions	-31.3	0.0	-0.6	-31.9
Reversals and changes in estimates	-3.2	-0.2	-3.7	-7.1
31 Dec 2025	25.7	0.7	3.9	30.3
of which
Non-current	0.4	0.0	2.4	2.8
Current	25.2	0.7	1.5	27.5
Total	25.7	0.7	3.9	30.3

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

In 2025, restructuring measures were taken across all businesses and Group functions. In 2024, restructuring

measures were taken mainly in Tieto Tech Consulting, Tieto Banktech and Tietoevry Tech Services.


TIETO − ANNUAL REPORT 2025	132

20. 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 Tieto 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 2025	31 Dec 2024
Non-current
Contract liabilities	0.2	2.4
Accruals	6.1	3.7
Total	6.3	6.1

Current
Trade payables	86.4	174.8
Contract liabilities	51.4	49.6
Accrued liabilities
Employee-related accruals	121.9	186.9
Interest	4.5	12.1
Other accrued expenses	27.5	44.1
Value added tax liabilities	25.4	49.2
Payroll tax liabilities	17.9	28.6
Total	335.0	545.4


TIETO − ANNUAL REPORT 2025	133

FINANCIAL RISK MANAGEMENT AND CAPITAL STRUCTURE

This section includes notes related to Tieto's financial risk and capital

structure management. The financial risks are monitored and managed via

Tieto's Group Treasury.

21. 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

Tieto 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 2025, 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. Group Treasury manages the currency risk centrally. The Group's target is to fully

hedge all identified currency risks. Deviation from the target is defined as an open position. Open positions up

to 15 % of the Group's gross currency position can be managed by Group Treasury. Open positions up to 25 %

require Treasury Committee approval and open positions larger than 25 % require Board approval. At the end

of 2025, 97 % (99 %) of the Group's currency positions were hedged.

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 11 335 and SEK 5 615 million

exposure forms the majority of the translation risk. The translation position was unhedged at the end of 2025.

See also note 27.

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 sensitivity ¹⁾	Foreign exchange hedge sensitivity ¹⁾	Net effect gain/ loss
SEK
31 Dec 2025	-157.6	24.9	—	-132.7	136.9	15.8	-13.7	2.1
31 Dec 2024	-122.1	19.8	—	-102.2	102.3	12.2	-10.2	2.0

NOK
31 Dec 2025	-36.5	15.2	—	-21.4	14.4	3.7	-1.4	2.2
31 Dec 2024	-16.9	15.3	—	-1.6	3.0	1.7	-0.3	1.4

PLN
31 Dec 2025	-2.0	-16.8	-1.0	-19.8	12.4	0.3	-1.2	-0.9
31 Dec 2024	1.4	-11.5	0.7	-9.4	9.5	-0.2	-1.0	-1.2

CZK
31 Dec 2025	-3.3	-18.3	-1.1	-22.6	21.8	0.4	-2.2	-1.7
31 Dec 2024	-14.0	-28.8	9.8	-33.0	43.2	0.4	-4.3	-3.9

INR
31 Dec 2025	—	-23.8	—	-23.8	23.8	—	-2.4	-2.4
31 Dec 2024	—	-27.2	—	-27.2	27.1	—	-2.7	-2.7

USD
31 Dec 2025	80.5	13.5	—	94.0	-91.6	-8.1	9.2	1.1
31 Dec 2024	2.4	0.2	-0.1	2.4	-2.6	-0.2	0.3	—

Other
31 Dec 2025	-10.2	—	-0.4	-10.7	10.9	1.1	-1.1	—
31 Dec 2024	-6.2	—	0.6	-5.6	3.0	0.6	-0.3	0.3

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.


TIETO − ANNUAL REPORT 2025	134

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 Tieto’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 2025, the ratio was at 9

months (10 months in 2024) 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 2025
Cash and cash equivalents²⁾	127.6	18.5	0.8	0.6	1.0
Other loans	—	630.3	—	3.1	-6.3
Other loan receivables	0.5	—	3.0	—	—
Leasing	-71.9	—	6.7	—	0.7
Interest rate derivatives³⁾	-140.0	140.0	3.2	2.1	1.4

31 Dec 2024
Bond⁴⁾	-299.8	—	2.0	—	—
Cash and cash equivalents²⁾	185.4	9.7	—	0.3	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

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 average floating rate is based on a weighted average rate in 2025. The comparative information has been updated accordingly.

³⁾ The interest rate derivatives are presented as nominal values.

⁴⁾ In 2024, the duration of underlying instruments was 0.5 years.

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 2029. It is linked to selected sustainability targets of Tieto 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 650 million.

Debt structure

The table below summarises the maturity profile of the Group’s financial liabilities based on the contractual

undiscounted payments.


31 Dec 2025	Amount drawn	Amount available	Maturity structure
EUR million	Amount drawn	Amount available	2026	2027	2028	2029	2030	2031–
Loans
Revolving credit facility	—	250.0	—	—	—	—	—	—
European Investment Bank	26.2	—	13.1	13.1	—	—	—	—
Bridge loan	300.0	—	—	300.0	—	—	—	—
OP Corporate Bank	174.0	—	—	—	174.0	—	—	—
Nordea and SEB	130.0	—	—	130.0	—	—	—	—
Other loans	0.9	—	0.9	0.1	—	—	—	—
	631.1	250.0	14.0	443.1	174.0	—	—	—

Interest payments	—	—	21.6	16.7	7.1	—	—	—

Trade payables, outflow	86.4	—	86.4	—	—	—	—	—

Lease liabilities	82.2	—	35.9	23.3	16.2	2.7	1.4	2.6

Derivative liabilities
Foreign exchange forward contracts	—	—	1.6	—	—	—	—	—
Interest rate swaps	—	—	1.6	1.6	1.2	—	—	—

Total	799.6	250.0	161.1	484.8	198.5	2.7	1.4	2.6


TIETO − ANNUAL REPORT 2025	135


31 Dec 2024	Amount drawn	Amount available	Maturity structure
EUR million	Amount drawn	Amount available	2025	2026	2027	2028	2029	2030–
Loans
Bond	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	—	—	—	—	—

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	1 304.6	250.0	609.3	198.7	326.2	223.1	11.6	46.9

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. As is customary, a breach of covenants,

unless waived, would entitle the banks to cancel the credit facilities and declare all loans outstanding due and

payable. Tieto Group is within limits for this covenant as at the reporting date and comparative period.


	31 Dec 2025	31 Dec 2024
Net debt¹⁾	555.5	871.8
12 months EBITDA²⁾	251.8	393.6
Net debt/EBITDA	2.2	2.2

¹⁾ Interest-bearing liabilities – interest-bearing receivables – cash and cash equivalents

²⁾ EBITDA = EBIT + Depreciation + Amortization + Impairment. Comparative information includes both continuing and discontinued operations to

align with net debt.

22. Interest-bearing loans and borrowings

The Group's interest-bearing liabilities consist of bonds, other loans and lease liabilities. More information on

debt structure and carrying interest rates is disclosed in note 21 .


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 current if it is payable within 12 months, otherwise it is classified as non-current.


EUR million	31 Dec 2025	31 Dec 2024
Non-current
Other loans	616.3	569.6
Lease liabilities	43.0	142.6
Total	659.3	712.1

Current
Bonds	—	299.8
Other loans	14.0	35.2
Lease liabilities	32.4	50.5
Total	46.4	385.4
Total Interest bearing loans and borrowings	705.6	1 097.5

Change in liabilities arising from financing activities


EUR million		Non-current interest- bearing loans	Current interest- bearing loans	Lease liabilities	Total
1 Jan 2025		569.6	334.9	193.0	1 097.5
Cash flows		64.3	-300.0	-41.6	-277.2
Non-cash changes	Foreign exchange gains and losses	0.7	0.7	2.5	3.8
	Reclassification	—	—	—	—
	Classified as held for sale	-17.6	-21.6	-97.7	-136.8
	New lease contracts	—	—	30.2	30.2
	De-recognized contracts	—	—	-11.0	-11.0
	Other	-0.7	-0.1	—	-0.8
31 Dec 2025		616.3	14.0	75.4	705.6

1 Jan 2024		539.5	411.9	211.7	1 163.2
Cash flows		28.2	-73.9	-56.6	-102.3
Non-cash changes	Foreign exchange gains and losses	0.0	—	-4.4	-4.4
	Reclassification	1.8	-1.8	—	—
	New lease contracts	0.2	0.9	78.7	79.7
	De-recognized contracts	—	—	-36.8	-36.8
	Other	-0.1	-2.3	0.5	-1.9
31 Dec 2024		569.6	334.9	193.0	1 097.5


TIETO − ANNUAL REPORT 2025	136

23. 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.


	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
2025
Financial assets
Fair value through profit or loss	0.8	—	16.9	—	-1.7	16.0
Amortized cost	4.1	—	-18.0	0.4	—	-13.6
Financial liabilities
Fair value through profit or loss	—	-0.3	—	—	—	-0.3
Amortized cost	—	-34.4	—	—	-1.7	-36.0
Net defined benefit obligation	—	-0.4	—	—	—	-0.4
Total	4.9	-35.0	-1.1	0.4	-3.4	-34.3

2024
Financial assets
Fair value through profit or loss	1.3	—	-12.0	—	-1.7	-12.5
Amortized cost	4.9	—	9.5	0.1	—	14.5
Financial liabilities
Fair value through profit or loss	—	-0.6	—	—	—	-0.6
Amortized cost	—	-42.7	—	—	-3.6	-46.3
Net defined benefit obligation	—	-0.3	—	—	—	-0.3
Total	6.2	-43.5	-2.5	0.1	-5.4	-45.1

In addition, foreign exchange gains and losses included in the operating profit were EUR -6.1 (0.9) million in

2025.

24. Financial assets and liabilities

Financial assets and liabilities of the Group consist of trade receivables, cash and cash equivalents, contingent

consideration, lease receivables and payables, trade payables, derivatives ( see note 25), bonds and other

interest-bearing liabilities (see note 22).


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 23.
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 23.
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 23, whereas gains or losses from derivatives, mainly currency forward contracts that relate to operating activities, are included in operating profit.
Contingent consideration related to disposals is classified as a financial asset at fair value through profit or loss.
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; • Level 3: unobservable inputs for the asset or liability.
The carrying amount of all financial assets and liabilities, carried at amortized cost is considered to provide a reasonable approximation of their fair value, due to the short maturity and liquid nature of these items, except for bonds which are traded on an active market.
The fair values of derivatives are determined based on prevailing marked quotes at the reporting date. The fair values of foreign exchange derivatives are calculated according to foreign exchange and interest rates on the closing date.


TIETO − ANNUAL REPORT 2025	137

Financial assets


EUR million	Note	31 Dec 2025	31 Dec 2024	Fair value hierarchy
Financial assets at fair value through profit or loss
Non-current
Contingent consideration	6	30.0	—	Level 3
Other financial assets at fair value through profit or loss		0.5	0.5	Level 3
Non-current derivative receivables	25	8.4	11.8	Level 2
Current
Trade receivables at fair value through profit or loss		11.7	11.1	Level 2
Current derivative receivables	25	3.8	2.7	Level 2
Financial assets at amortized cost
Non-current
Other loan receivables, interest-bearing	18	0.2	14.7	Level 2
Lease receivables, interest-bearing	17	2.1	—	Level 2
Current
Other loan receivables, interest-bearing	18	0.2	14.5	Level 2
Lease receivables, interest-bearing	17	1.4	1.4	Level 2
Trade receivables	18	217.8	391.8	Level 2
Accrued interest income	18	0.0	0.0	Level 2
Cash and cash equivalents	26	146.2	195.1	Level 2
Total		422.3	643.6

Financial liabilities


EUR million	Note	31 Dec 2025	31 Dec 2024	Fair value hierarchy
Financial liabilities at fair value through profit or loss
Non-current derivative liabilities	25	12.2	16.5	Level 2
Current derivative liabilities	25	1.6	7.1	Level 2
Financial liabilities measured at amortized cost
Non-current
Lease liability	17, 22	43.0	142.6	Level 2
Other loans	22	616.3	569.6	Level 2
Current
Trade payables	20	86.4	174.8	Level 2
Accrued interest	20	4.5	12.1	Level 2
Lease liability	17, 22	32.4	50.5	Level 2
Bonds¹⁾	22	—	299.8	Level 1
Other loans	22	14.0	35.2	Level 2
Total		810.3	1 308.1

¹⁾ In 2024, the carrying amount of the fixed rate bond was not adjusted to match the fair value of EUR 298.3 million which was determined based

on the prevailing market rate.

There has been no movement between the fair value hierarchy levels during 2025.


TIETO − ANNUAL REPORT 2025	138

25. Derivatives

Tieto 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 21 and on the accounting policies

applied in note 24. Derivatives are used for economic purposes only and not for speculative or trading

purposes.

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 2025	31 Dec 2024
Foreign exchange forward contracts	531.9	536.3
Interest rate swaps	280.0	280.0

Fair values of derivatives


EUR million	31 Dec 2025	31 Dec 2024
Gross positive fair values, foreign exchange forward contracts	3.8	2.7
Gross negative fair values, foreign exchange forward contracts	-1.6	-7.1
Gross positive fair values, interest rate swaps	8.4	11.8
Gross negative fair values, interest rate swaps	-12.2	-16.5
The net fair values at the reporting date	-1.7	-9.1

The fair values of foreign exchange derivatives are calculated according to foreign exchange and interest rates

on the closing date. All outstanding currency derivative contracts will expire within 12 months after the

reporting date.

The fair values of interest rate swaps are based on 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 2025		Financial Instruments	Cash collateral received	Net amount
EUR million		Financial Instruments	Cash collateral received	Net amount
Derivative financial assets
Foreign exchange forward contracts	3.8	-0.8	—	3.0
Interest rate swaps	8.4	-8.4	—	—
Derivative financial liabilities
Foreign exchange forward contracts	-1.6	0.8	—	-0.8
Interest rate swaps	-12.2	8.4	—	-3.8

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 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

26. 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 2025	31 Dec 2024
Cash in hand and at bank	127.6	185.4
Short-term deposits	18.5	9.7
Total	146.2	195.1

Cash and cash equivalents include restricted cash of EUR 19.7 (14.6) million held within bank accounts in

Ukraine.


TIETO − ANNUAL REPORT 2025	139

27. Share capital and reserves

Tieto 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.

Tieto’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 2024	118 391 092	76.6	39.4	1 203.5	1 319.5
Forfeiture of shares¹⁾	-10 560	—	—	—	—
Shares delivered from the share- based incentive plans ²⁾	214 379	—	—	—	—
Translation difference	—	—	-0.8	—	-0.8
31 Dec 2024	118 594 911	76.6	38.5	1 203.5	1 318.6
Purchase of own shares	-350 000	—	—	—	—
Shares delivered from the share- based incentive plans ³⁾	156 667	—	—	—	—
Translation difference	—	—	1.5	—	1.5
Return of capital	—	—	—	-158.8	-158.8
Disposal of business operations	—	—	-26.2	—	-26.2
31 Dec 2025	118 401 578	76.6	13.8	1 044.7	1 135.0

Own shares⁴⁾	238 572
Total number of shares on 31 Dec 2025 ⁴⁾	118 640 150

¹⁾ 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 Tieto's ownership on 23 July 2024.

²⁾ 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 Register on 14 May 2024.

³⁾ During 2025, the shares were granted from own shares without impact on share capital.

⁴⁾ On 31 Dec 2024, the number of shares in the company's possession totalled 45 239 and the total number of shares was 118 640 150.

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 in 2024 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 13.

• Remeasurements of the defined benefit plans arising from experience adjustments and changes in

actuarial assumptions. More information is disclosed in note 14.

• Treasury shares. In 2025, Tieto repurchased 350 000 own shares which were further delivered from the

share-based incentive plans.

• Cumulative translation differences arising from the translation of foreign Group companies’ assets and

liabilities into euro; and

• Other retained earnings and losses.

Cumulative translation differences

The cumulative translation differences were EUR -250.9 (-347.8) million. The translation differences in other

comprehensive income were EUR 17.8 (-80.8) million. In 2025, translation differences of EUR 91.6 million have

been reclassified from other comprehensive income to the consolidated income statement in connection with

the sale of Tietoevry Tech Services.

The majority of the translation differences arise on the NOK and SEK foreign currency translation exposures. In

2025, NOK weakened by 0.4% against the Euro whereas SEK strengthened by 5.6%, resulting in a positive net

effect on the Other comprehensive income. 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.

Distributable funds

On 31 Dec 2025, the distributable funds of the parent company totalled EUR 1 170.4 million of which retained

earnings were EUR 67.3 million and net profit for the financial year EUR 54.3 million. The Board of Directors

proposes to the Annual General Meeting in 2026 that a dividend of EUR 0.88 per share will be paid for 2025

(distribution to shareholders of EUR 1.50 per share was paid for 2024).


TIETO − ANNUAL REPORT 2025	140

OTHER INFORMATION

This section includes information about the Group structure, joint ventures,

related parties and commitments.

28. Acquisitions and divestments

In 2025, Tieto divested its Tietoevry Tech Services business. The divestment was classified as a discontinued

operation. For more information, see note 6 . The Group acquired an eDoc case management business in April

2025 and entered into an agreement to sell Bekk Consulting AS in December 2025.


ACCOUNTING POLICIES
Business combinations
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. 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.
Asset and liabilities classified as 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. For more information, see note 6.
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 fair values of the disposed operation and the portion of the cash-generating unit retained.

Acquisitions

In April 2025, Fujitsu's eDoc case management business in Denmark transferred to Tieto Indtech for a negative

purchase price of EUR 4.0 million. The purchase price was recognized as deferred income, the majority of

which relates to investments in on-going software development work.

In January 2026, the Group announced the acquisition of OpenSpring and GrupoOnetec in Spain. See Events

after the period.

Divestments

Sale of Bekk Consulting AS

As announced on 1 December 2025, Tieto entered into an agreement to sell Bekk Consulting AS ("Bekk") in

Norway to private equity firm Axcel. Bekk is part of Tieto Tech Consulting. The disposal does not represent a

separate major line of business or geographical area of operations and therefore, it is not classified as a

discontinued operation. Bekk's result is reported as part of continuing operations.

The assets and liabilities related to Bekk, including an allocation of goodwill of EUR 108.3 million, were

classified as held for sale from 30 November 2025 onwards. The purchase price for the divested operations is

approximately EUR 150 million. The sale was completed on 2 February 2026. The net result of the sale will

include the reclassification of cumulative foreign exchange losses from other comprehensive income.

Assets and liabilities classified as held for sale


EUR million	31 Dec 2025
Goodwill	108.3
Non-current assets	1.9
Trade and other receivables	8.0
Cash and cash equivalents	0.2
Total assets	118.4
Lease liabilities	0.8
Provisions	0.2
Trade and other payables	18.8
Total liabilities	19.8
Net assets held for sale	98.6


TIETO − ANNUAL REPORT 2025	141

29. Subsidiaries

All subsidiaries are included in the Group consolidation.

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
Tietoevry Create Brasil 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 Support Services Sp. z o.o.	Poland	100.0
Tietoevry AB	Sweden	100.0
Tietoevry Austria GmbH	Austria	100.0
Tietoevry Banking Finland Oy	Finland	100.0
Tietoevry Banking Latvia SIA	Latvia	100.0
Tietoevry Create Bulgaria EOOD	Bulgaria	100.0
Tietoevry Create Poland Sp. z o.o	Poland	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
Tietoevry Finland Support Services Oy	Finland	100.0
Tietoevry Fintech Estonia OÜ	Estonia	100.0
Tietoevry Fintech Norway AS	Norway	100.0
Tietoevry Fintech Spain S.L.U.	Spain	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
Dormant subsidiaries (1 in total)

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 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 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.¹⁾	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
MentorMate, LLC	The United States	100.0
MentorMate Paraguay S.R.L.	Paraguay	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 Create Brasil LTDA	Brazil	99.0
Tietoevry Create Ukraine LLC	Ukraine	100.0
Tietoevry FinTech DOO	Serbia	100.0
Tietoevry Fintech India Pvt. Ltd.¹⁾	India	100.0
Tietoevry India Pvt. Ltd.¹⁾	India	100.0
Tietoevry Sweden AB	Sweden	100.0
Tietoevry Sweden Support Services AB	Sweden	100.0
Dormant subsidiaries (6 in total)

¹⁾ In India, the official reporting period is 1 April – 31 March according to the Indian legislation.


TIETO − ANNUAL REPORT 2025	142

30. Interests in joint ventures

Tieto no longer holds ownership in any joint venture. At the start of 2024, Tieto had interests in two joint

ventures, Tieto Esy Oy in Finland and BuyPass AS in Norway.

In 2024, Tieto 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. Tieto Banktech'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. Further, Tieto Tech Consulting bought the remaining 20% share of the joint venture

Tieto Esy Oy, which resulted in an impairment loss of EUR 0.3 million.

Reconciliation of carrying value in 2024


EUR million	2024
Carrying value, 1 Jan	11.6
Translation differences	-0.5
Share of results	0.9
Dividends received	-1.0
Impairments	-0.3
Disposals and other decreases	-10.6
Carrying value, 31 Dec	—

31. Related party transactions

Related parties of Tieto 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 Team and

the President and CEO.


ACCOUNTING POLICIES
Sales to and purchases from related parties are made on normal market terms and conditions and at market prices. There are no commitments or contingencies on behalf of related parties.

The transactions with related parties are presented below. More information on joint ventures is disclosed in

note 30. Information on management remuneration is disclosed in note 12.

Transactions and balances with joint ventures in 2024


EUR million	31 Dec 2024
Sales	0.4
Other operating income	0.2
Purchases	0.3
Receivables	0.0
Liabilities including cash pool	0.0

Transactions with Tieto Esy Oy are included until 31 May 2024, and transactions with Buypass AS are included

until 16 October 2024. By year-end 2024, Tieto no longer held ownership in any joint venture.

32. Commitments and contingencies

The Group's commitments and contingencies mainly relate to performance guarantees and lease

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 2025	31 Dec 2024
Guarantees for own obligations	Performance guarantees	124.5	161.2
	Payment guarantees	0.9	1.4
Other Tieto obligations	Lease commitments, not yet commenced	4.6	8.8
	Other	0.3	0.4
Guarantees on behalf of third parties	Performance guarantees	—	22.7

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.

33. Events after the reporting period