Inside Information: Strategic review of Tietoevry Banking concluded, Banking continues as a specialized business in the Group - value currently not maximized through a listing or sale

Tietoevry Corporation  INSIDE INFORMATION     25 April 2024   8:30 a.m. EEST

On 22 July 2022, Tietoevry announced a strategic review of its Banking business, including a process to study its potential separation into an independent company that would be listed on a stock exchange. On 15 February, 2024 a demerger plan concerning a partial demerger of Tietoevry Banking was approved by Tietoevry’s Board of Directors, while retaining the optionality to pursue other alternatives for Tietoevry Banking before completion of the demerger, if in the best interests of Tietoevry and its shareholders.

Tietoevry's Board of Directors has decided to further develop Tietoevry Banking as a specialized business within the Group and to discontinue the demerger process. Key considerations for the decision being:

• Tietoevry firmly believes in its chosen specialization strategy, running each business end-to-end and enabling the businesses to be among the best in the market. Tietoevry Banking has continued to advance well as a specialized business within the Group, with consistent performance improvement towards becoming a leading fintech software business.
• Prevailing capital market conditions are not deemed optimal for a sale or listing of a fintech software business. Tietoevry anticipates that it will be able to achieve higher value of Tietoevry Banking by continuing to improve its performance as a specialized business within the Group. The business is well prepared for strategic value creation opportunities that may arise in the future.

“The strategic review process for Tietoevry Banking, launched in 2022, has been extensive and carefully considered, with the aim to unlock the value potential of the business. As Tietoevry’s Board of Directors, we have evaluated all the alternatives and concluded that currently it is in the best interest of shareholders to have the business continue its development as a specialized business within the Group. The foundation of the business is solid and we strongly believe in the long-term value creation potential of Tietoevry Banking”, comments Tomas Franzén, Chairperson, Tietoevry Board of Directors.

“We continue to build the competitiveness and scale of our specialized businesses to drive success in the market and shareholder value. Tietoevry Banking has embraced this specialization mandate in the past two years and is performing well. Tietoevry Banking has become more advanced in its operational independence as part of the strategic review process and we look forward to developing it further. We strongly believe in Tietoevry Banking continuing on its path towards becoming a leading international fintech software business, delivering continuously greater value for shareholders”, comments Kimmo Alkio, CEO, Tietoevry.

The strategic review of Tietoevry Tech Services is progressing as planned and is independent of Tietoevry Banking strategic review conclusions.

For further information, please contact:

Tomi Hyryläinen, Chief Financial Officer, tel. +358 50 555 0363, tomi.hyrylainen (at) tietoevry.com

Tommi Järvenpää, Head of Investor Relations, tel. +358 40 576 0288, tommi.jarvenpaa (at) tietoevry.com

Tietoevry Corporation

DISTRIBUTION

NASDAQ Helsinki

NASDAQ Stockholm

Oslo Børs

Principal Media

Tietoevry creates purposeful technology that reinvents the world for good. We are a leading technology company with a strong Nordic heritage and global capabilities. Based on our core values of openness, trust and diversity, we work with our customers to develop digital futures where businesses, societies, and humanity thrive.

Our 24 000 experts globally specialize in cloud, data, and software, serving thousands of enterprise and public-sector customers in more than 90 countries. Tietoevry’s annual turnover is approximately EUR 3 billion and the company’s shares are listed on the NASDAQ exchange in Helsinki and Stockholm, as well as on Oslo Børs. www.tietoevry.com