Creating digital advantage for businesses and society Investor presentation Sensitivity: Internal Outline • Value proposition, strategy and market • Merger and integration status • Q3 in brief • Performance drivers and guidance 2020 • Why invest in TietoEVRY? • Appendix 2 Sensitivity: Internal Value proposition, strategy and market Digital advantage for businesses and societies Bringing Global capabilities to the Nordics in Digital Consulting and Cloud & Infrastructure Services Scaling the Nordic mindset globally in Industry Software, The market leader Financial Services and Product Development Services in Digital Services in Norway, Sweden and Finland Serving customers Investments in technology 24 000 in over and services more than professionals Estonia, Latvia, Lithuania countries million* per year globally 90 worldwide EUR 120 *incl. capital expenditure Ukraine India and operational costs Poland Turnover of More than Czech Republic China approximately 10 000 EUR customers 3 billion 4 Our value proposition & strategy We are the backbone of the Nordic society, transforming businesses with expertise, technology and data, to harness the biggest opportunities of our time Services focus Nordic International Digital Consulting • Drive competitiveness of Nordic enterprises and public sector Cloud & Infra • Accelerate digital consulting and cloud services to realize customers digital Industry-specific agenda software • Industry Software and Financial Services Financial Services leading international expansion Solutions • PDS expands its global customer base Product Development Services (PDS) across industries Global capabilities and ecosystems Note: Other businesses in the portfolio include a) local businesses in Austria, Latvia, Lithuania, Estonia, Russia and b) non-Nordic customers served from India and Ukraine, with own go-to-market Merger enables higher value creation Build advanced digital consulting capabilities and practices at scale Lead multi-cloud services for Nordic enterprises and public sector Competitiveness Expand competitive software portfolio internationally, especially financial services Scale and profitability Consolidate global capabilities, ecosystems and investments Attractive shareholder returns Build on deep customer knowledge and common value foundation of Openness, Trust and Diversity 7 Our five service lines (adopted as per Q2 2020) Bringing global capabilities to the Nordics Revenue 2019 Consulting , system integration, managed application International operations Product 4 % Digital services across customer experience management, Development Services Consulting Digital Consulting 25 % business applications, analytics, cloud advisory and cloud 5 % native development Financial Services Solution 15 % €2.951m Managed cloud, security and end-user services, including Cloud & Infra cloud migration advisory and transformation Industry Software 17 % Cloud and Infra Industry specific Software, SaaS solutions including related 34 % Industry Software professional services for Public sector, (Case management, Healthcare, Welfare, Education), Industrial (Oil & gas, Adj*. EBIT 2019 Manufacturing, Utilities) and Data platform services Product International operations Development 7.6% Services; 10.1% Digital Consulting; Software, SaaS, platform based BPO and related 11.9% Financial Services professional services for core processes and functions for Financial Financial Services industry - Core banking, Payments incl Services Solutions Solution; Cards, Credit and wealth management 13.6% €341.7m / 11.6% Product Cloud and Advanced software R&D services across Telecom, Infra; 11.2% Development Automotive, Consumer Electronics industries Industry Services Software; 14.6% *Adjusted for amortization of acquisition-related intangible assets, restructuring costs, capital gains/losses, goodwill impairment charges and other items affecting comparability 8 Covid-19 implications Future of work Industry analysts For TietoEVRY Negative profit continuously being estimate -3% to impact in Q3 appr. impact fully developed – -7% decline in IT -4% and Q4 mitigated through employee safety market due to expected to be at short term savings and productivity Covid-19 similar level stable 9 IT market outlook New digital services, business Covid-19 expected to have negative continuity and cost optimization impact on IT market in 2020 continue to be a driver for Industry analysts market growth investments estimates range from --3% to -7% 10 Resilient business mix across economic cycles • Primarily short-term contracts while relationships with customers are Digital consulting – long most impacted • Application services with long-term agreements represent approximately 40% of the consulting revenue Product development • Primarily short-term contracts, while relationships with customers are Business mix well services – impacted long. resilient with appr. 2% less than digital • Stability due to our role in key customers core development negative revenue impact consulting roadmaps in Q2 due to Covid-19 Infrastructure services • Primarily long-term commitments of 3-5 years – impacted slightly • Fluctuations in demand in some services in the short term, e.g. Estimated 2-5% negative more than industry increase in network capacity while some onsite installations full-year revenue impact software postponed due to Covid-19 in 2020 Industry software, incl. Financial Services • Primarily long-term contractual periods up to 5-7 years with customer Solutions – least relationships lasting much longer impacted Delivering critical services to society - sales to public, health, welfare and financial service sector > 55% 11 Merger and integration update 12 Integration progressing with high engagement Integration focus area Current status Integrated structure • Integrated businesses and functions globally and leadership • Establishing integrated structures for Financial Services as planned Common processes • Common system implementation (e.g. HR, CRM) progressing and systems • High change management effort to utilize common systems Integrated go-to-market • Progress with integrated value proposition to the market and service portfolio • Active customer engagement and deal closures Employee engagement • High engagement levels across the company continues and cultural integration • Code-of-conduct, culture code and diversity principles defined Synergy planning and • Progress on track to deliver upgraded EUR 100 million synergies realization • EUR 70-80 million run rate executed by 2020 Q2 status Q3 status 13 Merger efficiency realization on track to achieve EUR 100 million, with EUR 70-80 million executed by end of 2020 • Target merger efficiencies unchanged at EUR 100 EUR 100 million merger efficiencies achieved within three years million, with merger efficiency run-rate of EUR 70-80 Merger efficiency run-rate at end of year (EUR million) million executed by end of 2020 120 • Q3 result supported by EUR 11 million, full-year profit 5-10 100 contribution EUR 25-30 million 100 15-20 70-80 • Consultations for restructuring of 550 FTEs initiated in 80 September, with the aim of finalizing potential 60 termination agreements during Q4 40 • Total estimated one-time integration costs reduced to EUR 110-120 million (previously EUR 120-140 million) 20 • One-time integration costs for 2020 estimated to be 0 EUR 80-85 million, with EUR 75 million realized year-to- 2020 2021 2022 Total * date EUR 110-120 million of one-time integration cost expected in 2020-2022 *) Q3 includes provisions for restructuring consultations initiated in September 2020 14 Estimated impact by 2022 Efficiency area Examples of main efficiency levers Estimated efficiency • Consolidate managerial, sales and administrative roles Services and go-to- • Adopt proven global delivery model and common processes EUR 30-40 million market • Rationalize offering portfolio • Capture scale in combined investments • Consolidate managerial and administrative roles • Harmonize applications and processes Support functions EUR 20-30 million • Optimize use of shared service centers • Capture scale in combined investments • Improve commercial terms due to increased volumes External costs • Consolidate supplier base and phase out duplicate products and services EUR 20-30 million including facilities • Consolidate facilities in common locations + Infrastructure • Consolidation of infrastructure platforms and partnerships partnerships Further potential in addition to EUR 75 million • Combined growth opportunity especially in Digital Consulting, Cloud & Infra Revenue synergies and Financial Services Solutions 15 Financial performance Multi-year performance improvement CUSTOMER EXPERIENCE / NPS REVENUE GROWTH DIVIDEND/SHARE, EUR 1700 1,5 1600 0,20 1,3 0,20 1500 0,25 0,22 1,1 1400 1 600 1 614 1 543 1 460 1 493 1,20 1,25 1,27 1300 0,9 1,10 1,15 1200 0,7 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Net Sales, EUR million Base dividend EMPLOYEE ENGAGEMENT SCORE ADJUSTED* EBIT 250 NET CASH FLOW FROM OPERATIONS 190 48 200 * 180 170 150 160 188 100 150 182 174 168 151 140 161 133 151 152 50 97 130 120 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 *Adjusted for amortization of acquisition-related intangible assets, restructuring costs, capital gains/losses, goodwill impairment charges and other items affecting comparability Adjusted EBIT, EUR million Net cash flow from operations, EUR million 16 * IFRS 16 2019 impact 17 TietoEVRY Q319 Q320 -7% Revenue Business highlights Adj.