TietoEVRY Oyj (TIETO.HE) Earnings Call Transcript & Summary

Good afternoon, and welcome to Tieto 2025 Capital Markets Day. It is great to see so many of you here in London and a warm welcome to all of you joining us online. Today is more than an event. Today marks a reset, a restart, a new era for our company. We are making a fundamental shift toward sharper execution, stronger discipline and a relentless focus on value creation. We are changing how we work, how we compete and how we win. This is not just a strategy update, it is a mindset shift. And to symbolize that shift, yesterday, we brought back the Tieto name, reconnecting with our heritage while signaling a bold forward-looking future. We also introduced new financial targets. And today, we will show you exactly how we plan to reach them. You will hear from our top leaders across the business. This is a unique opportunity for you to learn how we intend to deliver and why we are confident in our path forward. Throughout the day, we want your questions and your challenge. We will open the floor for Q&A after each presentation. And then we'll finish the day with a final Q&A with our CEO and CFO. We will take questions from the audience here as well as from those of you joining online, please submit the questions through the platform. We have an exciting afternoon ahead, and I hope you're ready. So let's get started. Please join me in welcoming our President and CEO, Endre Rangnes.

So thank you, Tommi, and a warm welcome to Tieto's 2025 Capital Markets Day, and thank you for joining us here in London and also on the web. Like Tommi touched upon, today is an important moment for Tieto. It's not just another event. Today is a moment to look forward with new focus and also with a new purpose. And I would like to start off also acknowledging that we, during the last decade or so, have not delivered the growth and shareholder returns that our shareholders should expect. I would also say that we are acknowledging that we need to be more transparent going forward, so we have learned from the past. Today is a new beginning for Tieto, a new beginning anchored in three main principles. One is customers focus, customers first in everything we do; secondly, operational excellence; and thirdly, sustainable shareholder returns. So this is really not about the new strategy. This is about a mindset shift. And I can tell you, we are changing gear to deliver future growth. So I will go through three main sections in my next 25 minutes or so. Tieto has a very strong foundation to capture the market opportunities and the market growth. We are today launching four new strategic priorities in terms of ensuring that we are accelerating the growth and execution going forward. And thirdly, we are committed to deliver more than 5% top line growth CAGR '27, '28 and also then more than 16% margin by end of 2028. Having now been in the position as the CEO since 6 months, I have spent a significant time with our different stakeholders, vendors, investors, employees and of course, clients. And I would say that the feedback is quite clear. We have not been sufficiently focused on our clients. We have been far too much product and tech-oriented, also partly pushing the products too hard. And thirdly, we have not been executing on the different, I would say, strategies that has been launched in the last decade. And the result of this is that we have delivered less than 1% organic growth CAGR during 12 years, while the market has been growing 5% to 7%. And that has also partly resulted in the buildup of a cost base that we couldn't afford. So today, we will spend the time on -- yes, we have identified the challenges. We will spend the time now on what are we going to do, how to ensure execution and to capture the future growth of this company. And also the business units we will go in detail to visualize what's happening now with the company. Having said this, I think it's also quite important to underline that Tieto has a very, very strong foundation. When we look at our client base, we have long-term relations with our clients. And we have a very solid client base. So it's a good starting point to really have better interaction and also a better and stronger partnerships with our clients going forward. Secondly, we have distinct capabilities as a company. We have invested a large amount into replatforming our software vertical products. We have renewed products now in more or less all the different product lines. I would say also that we have invested heavily into building AI competencies, both in terms of driving internal efficiency during the last couple of years. We will come back to examples on this. But also interacting with our clients related to AI. We have a very strong needs for offshore delivery structure, which could be utilized better in the future. And then we have also started to simplify the structure and the setup of Tieto when we sold Tech Services. The closing was done, as you know, in Q3 of 2025. And I think it's also the third point related to solid financial foundation. We have a pretty stable margin. We are a capital-light business. We have delivered solid cash flow historically. And I would also say we have a very high level of visibility in terms of repetitive business, but also having a very strong backlog, which we carry now into '26, '27 and '28. So a good starting point for a company like Tieto. When we also look then at the market share and how have we kind of developed the company during the last years, we have the leading position within banking. We have the leading position in the Nordics in health care. And we have also a leading position globally in pulp, paper and fiber software and associated services. And then we have also kind of a leading Nordic position within Nordic case management software. This is a good starting point. And within banking, we are delivering everything from core bank solutions to payment transactions to fraud monitoring to AML, so a full stack delivery from core bank to end user solutions. And the same goes within Lifecare. We have a very strong position with our new Lifecare portfolio, where we are delivering to hospitals, to home care and also social care, and we have already started to see signs of positive development also in terms of expanding internationally with the Lifecare products. So we are running mission-critical society-critical transaction, every millions of them every single responsibility that we have as a company. When I met with investors the last months, it's also quite clear that many investors now regard AI as a disruptive threat to the IT services industry. I regard it as a big opportunity for those capturing and being able to leverage on the AI opportunity going forward. If you look historically, going 30 to 40 years back, we have had many examples of disruptive technologies entering the market. What happened in terms of IT spending during this last 30 to 40 years? Did it go down? Absolutely not. The annual CAGR IT spending is growing and it's been growing like 30 to 40 years, driven by the digitalization of the society. And we saw clear examples of that, partly also having a kind of artificially high level of investment during the COVID period. So from my point of view, I regard AI as a big opportunity for us going forward. Then talking to clients, which I do more or less on a daily basis, it's not all about AI. It's really also about basic things. It's about cost optimization through also AI tooling. It's about process reengineering. It's about focusing on cybersecurity and not only for banking, this goes for more or less all businesses currently. And we have also seen a lot of companies investing now heavily into skills upgrade of their employees in terms of meeting the AI wave coming. Then how is now Tieto going to capture the market opportunities going forward. And we are launching today four main strategic priorities. One, customers first. Everything starts with our clients, everything starts in the market. Secondly, a simplified core to have a more agile organization and company going forward, selective international expansion with selected products -- software products into selective European markets. And then, of course, we need to ensure that we have a competitive cost base going forward so that we are also from a pricing point of view -- market pricing point of view, we are competitive going forward. So let's take this one by one and starting off then with customers first. And what you see on this page is actually mirroring or a reflection of the input I've got from our clients. When I was the Managing Director for Banking 9 months before taking on the assignment as the CEO of this company, we spent a lot of time implementing a new governance model with our clients, meaning a clear definition of demand, supply and a rigid follow-up in terms of KPIs, both operational, tactical and then strategic level with our clients. That was one of the basic reasons why we were able to renew a lot of banking contracts during second half of '25 and also -- sorry, second half of '24 and into also 2025. But it's not all about governance. It's a lot of practical elements that we are working on as we speak. It's about recruiting new sales resources. It's about rejuvenation of our key account management structure. It's about launching, which we will do in January, a new sales incentive structure to also incentivize high performance in sales. And it's also about involving our clients in product development. One example of that, which actually goes a couple of years back, is also together with SpareBank in South in Norway, which is now part of SpareBank in Norway, we developed a leading-edge mobile solution, which is now replicated into other banks as we speak. So I think we have good examples of also co-development, which we will put more effort into going forward. And we can see that this client centricity is actually now bearing fruits. So we saw during Q2 and Q3 new signings, Local Bank Alliance, 16 banks signing up for full-fledged delivery from core bank to end user solutions, 10 new banks, 6 existing clients of Tieto. We saw Gig in Austria, where we also have embedded AI into their help desk and to structure client request and to improve also client service. So clearly, we see that we are moving in the right direction. The second point is then related to simplified core. And we have seen the sales and closing of tech services as one step, and you will see more to come in the near and long term. We are not disclosing anything related to that today, but you will see it coming. This is about creating a more agile organization and a more focused organization going forward. You also saw yesterday that we launched the new brand, Tieto. And in that context, we also launched the new four names of the four entities, meaning Tech Consulting, Caretech, Banktech and Indtech. And the go-to-market strategy is very clear. We have the industry verticals covering the market and the clients with a distinct software and associated services, and then we will leverage Tech Consulting through those industry verticals going forward. And this is basically feedback that we have received from our clients that ask us to be a bit more coordinated in the interactions with the clients. And for those customers or prospects not requiring one-stop shopping, we will go directly with tech consulting directly to the market. I'm really lucky to have a new leadership team in place. And the four business unit leaders will go through the go-to-market strategy entity by entity, including also financial targets, which you will see later on today. The third point is related to ensuring that we are focusing on the growth going forward. So first of all, we are coming from a very strong home base in the Nordics, like we have been presenting already. The ambition is to grow with the market or more going forward in the Nordic market. However, we have already seen opportunities in the European market with some of our selected software products into selected European markets. Examples of that is that we signed in Q2 an agreement with Basel Hospital University in Switzerland. You saw in Q3, we signed a deal with Catalonia Health region, 8 million citizens and deal with NTT DATA as a systems integrator. And you will see more to come from Banktech, Indtech and Caretech going forward. We have an ambition to deliver a total contract value of EUR 500 million by end of 2028. And then you could say, okay, this is not a very ambitious target. But we need to keep in mind that it takes some time to penetrate new markets. We need to have a realistic approach on this and realistic expectations. That's why we are now shooting for the EUR 500 million TCV mark. Currently, we have approximately EUR 100 million from the software and associated services to that software outside the Nordics, approximately EUR 100 million. So we still regard this EUR 500 million as a relatively ambitious and realistic target. And part of the go-to-market strategy, you will also see evidence of that in the future that we are also emphasizing to really go with strategic partners going forward, and you will see also some of the business units coming back to that during their presentations later on. All of this in terms of growing going forward, capturing the international growth needs to be done with a competitive cost base. So when I went through the Q2 cost base when I took on the assignment as interim CEO, May 2025, also partly triggered by the sales of 1/3 of our business, namely Tech Services, I clearly saw that we had a far too high cost base. So that's why we announced the cost efficiency program in connection with the Q2 results, and we are tracking ahead of plan. You saw that evidence in connection with our Q3 results. You saw that on Thursday, we upgraded the guidance for 2025 outlook. And we will come back to in connection with the Q4 interim report in February, how are we now tracking into 2026. But as said, we have committed to deliver EUR 115 million run rate by end of '26, and we are ahead of that plan. We are approximately 1,300 colleagues less as we speak today compared to 1 year ago, mainly driven by takeout in sales, general administration, but also partly taken out from delivery capacity. And we are, of course, focusing on all nitty-gritty details related to expenses and costs. We are looking at premises. We are looking at driving initiatives on streamlining procurement and to take out synergies there as well. So a lot of practical operational initiatives ongoing. What will then be the effect of these four strategic priorities from a financial point of view? And we have already communicated to the market several times that 2026 is going to be a year of transition and execution. Why are we saying that? First of all, we have seen now lately both McKinsey and Deutsche Bank came out with new updates in terms of 2025 outlook for the sector. And also now looking at how the companies are taking down the outlook for 2026, we are experiencing a headwind currently in the general market spending. On top of that, when it comes to revenue, we, as a company, have a couple of unique headwinds, which are related to our legacy within Banktech and also Caretech. That has an effect in 2026 of approximately 3 percentage points negative growth. Big part of that will be out year-over-year comparison-wise when we are ending 2026 and even more important, when we look at how we are now growing our new services and new software offerings, we have an underlying growth already going out of 2025. So we are quite comfortable that we will deliver the top line growth CAGR '27, '28 in terms of more than 5% growth. That growth will fundamentally be driven by growing more in the Nordics. We will see the results coming from international expansion. And then also the shift that Pär will come back to after my presentation today, we have also a shift ongoing within Tech Consulting to really be more relevant in the market going forward. We have also communicated to the market that when we look at 2026, -- we will improve the margin. There will be a margin expansion happening basically based on the cost measures and cost initiatives that we have taken in 2025. On top of that, when we look at '27 and '28, we are comfortable about delivering more than 16% margin end of '28, driven by, first of all, cost efficiencies coming through, then Nordic international growth and then also further kind of efficiency measure, also partly driven by what we do internally in terms of streamlining AI. We saw also yesterday that we have launched a new brand. We have got a lot of positive feedback already today on the new brand. And the point with the new brand is really that this is underlying the shift -- this is supporting those four strategic initiatives. And keep in mind that Tieto really has a meaning. It means knowledge or information in Finnish. And it's, from my point of view, it's actually capturing also the heritage of the company. We have been in the Nordic market since 1968. So this is kind of also underlining the positive part of the legacy that we are carrying as a company. But it's more than a symbolic thing for me, this is also underlining the mindset shift that we're going through. And it's also supporting our image -- not image, but our ambition to also be the impact partner for our clients going forward. The most important asset we have is our 15,000 employees. And first of all, we have changed the leadership team. Out of 11 in group executive team, 9 are new to drive the focus and the shift going forward. We will invest more into leadership development, which we have not done in the last years. It's quite important also to focus the organization much more on a fact-based discussion and also with sense of urgency, which is one of my favorites because that is really what the clients require. Also in terms of accountability and responsibility and then also back to my initial remark on transparency, we need to have also to ensure that we have a more transparent organization going forward. Again, -- this is not going to be a quick fix. This is going to happen quarter-by-quarter going forward. This is about the cultural change that we, as a leadership team, have to drive. Then on top of that, we are actually investing in skills development. We have been through now around 14,000 employees with a basic education on AI. We have also invested heavily into product development, so tooling and kind of enabling our people with new tooling related to AI. We're coming back to that later on also by the business units. So we are investing into the future and into also enabling our people. And specifically about AI, when we look at AI -- we have structured that across the company now during the last 6 months. We have actually three main areas that we are focusing. One is related to sales and value propositions. We have already kind of Bidbots. We are using R&D to develop RFPs, et cetera. But where we have kind of clear evidence already in terms of productivity improvement is within our product development. So Ari will come back to this related to Lifecare product development, where we had AI embedded into product development in the last 3 years, where we have documented a 30% productivity improvement. Second example is that we are running now COBOL, the last remaining part of the new -- or the old core bank solution to the new modernized one. We are running our AI tooling for COBOL conversion to UNIX and .NET. We have invested in AI embedded into our fraud prevention systems in card monitoring, card transaction monitoring since 2 years, and we can continue with this example. We will also go through this with Indtech, where we have also now invested into a public portal where the clients can actually use AI tools to develop their own applications. So a lot of initiatives ongoing. And of course, we are also now looking at internal efficiency. We have HR Assist as an example, we are looking at now also to streamline all the paper documentation that we have from a compliance point of view, doing machine reading, applying AI on top and then we will drive this in a more efficient way going forward. Having said that, it's quite clear that AI usually starts with a kind of innovative project R&D. And then we discover and this goes internally and with our clients, we see that, yes, we are dependent on other technologies. We are dependent on data. We are dependent on infrastructure. We are dependent on the legacy. And usually, then we see the scale of the projects ramping up. So from my point of view, companies with a strong client base, a large client base with a lot of legacy are well positioned to leverage on the AI opportunities going forward. As you saw yesterday, we have also now launched a new capital allocation strategy or principles. And again, it's a very, very clear feedback from our investors. We conducted a quite extensive survey in June of 2025, clear feedback from our investors, more than 50% said you guys need to invest more into growing our company organically. So we have listened to the investors. And I think that we still have a very lucrative dividend policy. It's a solid policy with 60% to 80% of net profit as a dividend. And on top of that, I think it's quite important to underline what we have on the right side of this picture is that with excess capital, we will do share buybacks/extraordinary dividend going forward. And we're keeping then the leverage less than 2x net debt to EBITDA as a target also going forward. Looking at then the targets that -- or the KPIs that we have set out for 2028, more than 5% CAGR, 27%, 28% top line growth, more than 16% margin by end of 2028, 60% to 80% dividend and then also less than 2% leverage. The point of going through this now as a summary is that we are committed to deliver. We regard these targets as realistic and these targets are more or less set independent of what's happening market-wise. So let me summarize. First of all, we are coming from a situation where we have been lagging in terms of growth. We have identified the challenges. We have identified how to grow the company going forward. The growth will come from the Nordics and then also international selective expansion, driving towards the revenue targets that we have set out for '27 and '28 and also looking then at the margin by end of 2028. So having said this, I am really looking forward to our Capital Markets Day in 2028, where I can present the achievements and the results. Thank you very much. Q&A opening.

Thank you, Endre. We are now opening the floor for questions. [Operator Instructions] We have first question, I think, here on the second row...

It's Mark from Morgan Stanley. Can we just maybe start with the bridge to the 2027 and '28 guidance Obviously, there's an illustration here, but if you could be a bit more specific around how much of that 5% plus is coming from growth in the Nordics versus international expansion and then tech consulting, that would be great. And then also, I noted that on the slide, it said mainly organic. So what role will M&A play in the growth of the midterm? And then just finally, could you talk to us a little bit about what investments you've already made in international expansion, both on the go-to-market side and the product side? And what further investments do you plan to make in 2026? What confidence does that give you in achieving that EUR 500 million target?

So let's start with the last one first. I think that, first of all, we have invested now into generating more like industry -- European industry standard Lifecare platform, and that's why we clearly see the results now with a huge interest internationally. Then we have selected a kind of international go-to-market strategy with partners for Lifecare in order to not carry too much cost in terms of the international expansion. So we are quite confident that we will succeed with there's a huge demand for these types of products across Europe. In terms of Banktech, we are also looking now at international expansion in selected markets. We have pinpointed U.K., Ireland, and we have pinpointed also Spain. And this is, of course, based on a very thorough mapping of the European market and with our product portfolio, which products are applicable by each market. So for example, ATM, Spain has the highest per capita penetration of ATMs. That's one of the products that we are looking at. We're looking at card issuing, card monitoring, fraud monitoring, AML, et cetera, where we have leading edge products already up and running. So that's the kind of main focus. The investment will be fairly limited. In terms of M&A, we are not going to do any big M&A. That has been also a clear feedback from our investors. Don't do any big M&A because we have a disastrous track record in terms of doing M&A. So when I'm talking about M&A, I'm talking about small bolt-ons, which is more or less like from my point of view, a rounding and organic growth. So we are looking now -- when you look at the growth trajectory that we're looking now for '27, '28, it's -- I would call it purely organic growth. Then we are not disclosing which pockets of growth are coming, but you will see clearly after my presentation, you will see the breakdown business unit by business unit. But as you can see from the chart of financial performance, '27, '28, the majority is coming still from the Nordic growth, repositioning ourselves there, capturing the opportunities there. And also we get the effect, for example, in banking of legacy out of the books by end of Q3, not legacy fully out of the books, but the negative 2%, 3%, 4% effect that we have in banking will be out of the books in end of Q3 2026. And then, of course, also within Caretech, you will see also a huge difference between '26 and '27 in terms of the effect of legacy. So the majority coming from then the Nordics and then partly also coming from software expansion internationally. And then we also have the shift that is happening. Pär is coming back to that to illustrate what shift are we going through to be more relevant in terms of market demand. And this goes very closely back to -- we are coming from a situation, again, to be transparent, that we have had too much [ CV ] sales and time and material. The market is moving quickly in another direction, namely more like building services on industry standard software like Microsoft Dynamics, et cetera. So that's also part of the game plan, which Pär will come back to how we are going to work closer with a set of strategic partners to enable the expansion for tech consulting going forward. So you will clearly see at least get some more meat on the bone when you see the different business units coming with their kind of graphs. And then let's see at the end if you still have the same question.

I am Sami Sarkamies, Danske Bank markets. Also wondering about growth. Can you somehow try to explain that what explains this step change from historical 1% organic growth to above 5%. There's been the portfolio change from divestment of Tech Services, but it doesn't fully explain it. You still have the same people, the same products and the same businesses, except for Tech Services. And then maybe secondly, can you put those growth rates into some sort of context? 1% has probably been well below the market growth. But looking ahead, what kind of market growth are you expecting in '27, '28 time frame?

Yes. So first of all, I think this is, like I said, it's about a mindset shift. And why do I believe that we will succeed because we succeeded in banking to turn around that business. So we will -- we are doing more or less replicating what we did in banking now for the totality of Tieto. And we don't have the same people. It's not correct. We have a complete new leadership team in place. So like I said, we have 9 out of 11 in the leadership team are new. We have a team that is prepared to show leadership and to drive on a fact-based basis and to ensure that we are executing on what we have told the market. And I think the early evidence of this, and it takes time, like I said, to regain the trust of our investors, but we have seen clear evidence already looking at Q3, looking at what we announced on Thursday last week in terms of being ahead of plan on the cost saving program. And this is not coming by itself. It's a lot of operational doing to get there. So I'm 100% confident that we have the right leadership team in place. This is about leadership and walking the talk and structuring the business in a different way going forward, but also keeping people responsible and accountable. This is new in my books and also looking back at how we built up an artificially high cost base. Yes, it's okay. It's one of the reasons why we had to look at the cost was, of course, the sales of Tech Services, but it was far too high anyhow. So that monitoring the cost base versus the benchmark in the market, et cetera, that is kind of the fact-based driven business that you will see from Tieto going forward.

Let's take one question from the online audience as well. First, congrats to prudent ambitions and relevant new financial targets. How autonomous will the four divisions be? Slide 10 shows that Tech Consulting will supply the foundation, if needed, IT services to Caretech, Banktech and Indtech. How to secure that no suboptimization processes are built in?

Yes. So from my point of view, at least, it's a very clear new go-to-market strategy. So the industry verticals are responsible for the market penetration and their clients. And then they will hopefully benefit from having technical consulting to deliver generic services integrations, et cetera. Then we can deliver what the clients are asking us, deliver more of what we have, take responsibility and do this in a coordinated way. At least when we look at how we have prioritized now strategic accounts and strategic prospects, we believe that this is the right model going forward. And that I have seen this before, then we get results. Then we still have tech consulting to go directly if the client doesn't require one-stop shopping.

We have time for one more quick question. Go ahead.

This is Matti Riikonen, DNB Carnegie. You mentioned earlier in your presentation that you for 2026, expect a headwind of 3 percentage points internally from issues -- but when you guide flat or slightly declining top line in 2026, what is the positive element compensated that 3% negative then coming from?

That's a very relevant question because we clearly see that our new software offerings, so we have a lot of new products. It's not the old products and the same people. We have new product offerings, which will drive and we clearly see evidence of it already, will drive the underlying growth through 2026 already, meaning that we have the right traction into 2027. This goes for banking. It goes for Caretech and it goes for Indtech and it goes for Tech Consulting as well.

Thank you, Endre, and thank you for the questions. And as a reminder, we will have a chance to ask more questions from Endre then at the end of the day as well.

Absolutely. Thank you.

We will now continue the program and dive into the consulting business and see how Tech Consulting is changing to capture future opportunities. Welcome, Pär Johansson.

Good afternoon. Very happy to be here. Good to meet you all. I started this assignment in the middle of the summer. And to get a good understanding about our business, I spent a lot of time together with our most important customers, our employees and our strategic partners. It has been quite clear feedback and it is mainly related to three things. First, our customers choose us because of our local proximity in the way how we understand the customer. That's why the customer come to us otherwise they'd choose someone else. Secondly, we have a broad portfolio, which needs to be aligned with the recent market trends. And thirdly, we have been operating with a high cost structure. We have started activities connected to all these areas immediately here during last year and during the autumn. So just to take a couple of examples. We are operating now in November in a new both organization and operating model setup where we've been moving from a global operating model into more local operating model, creating country-based consultant units. And this is to get very close to our customer and get a much more close interaction between supply and demand. Secondly, we also completed here in October, the integration of our largest subsidiary, Infopulse. And then as Endre also mentioned, we are also running a lot of cost optimization program as such as well. So before moving into all the details here, I just want to go through a little bit on what it is that we're going to talk about today. We are driving change in three main areas: customer centricity, service mix and efficiency. There is a huge opportunity out there in the market related to AI, cloud and data. And we will and aiming to capture that. But before we are able to do that, we have to go through a refocus. During this period, we will deliver a growth of 3% or above 3% and a profitability above 12% -- before going into deep diving into the numbers, I just wanted to give you a little bit more understanding on what is Tech Consulting. So Tech Consulting is a consulting unit, and we operate in three different regions: Nordic, Central Europe and U.S. We are supporting five industry segments where several of these industry segments are directly connected to our software businesses. In the service portfolio, we are splitting that in two different areas. One of the areas is what you would call maybe classic IT consulting. So customer experience, AI, cloud data, et cetera. The other area is what we call engineering services and engineering services might need a little bit more explanation. So we are developing software for OEMs. This could be that we are developing a sound software for both and then both sell the full package to a car manufacturer or we are developing software for telecom equipment providers and then they sell it to an operator. So a very special kind of business compared to the classic IT business. We have a very solid base for further expansion in Tech Consulting. But as I already -- with 1,500 customers and 8,200 employees. But as I already indicated in the last slide, we have some challenges that we need to take care of, which has been there for a long time. Our customer portfolio is our largest asset, but it is also our largest challenge. It is too wide, so we can't really work with our clients in the way we really want. This is also leading to transactional engagement. And the issue with transactional engagement is that we need to resell this engagement time after time. So you need, of course, some transactional engagements to manage the high and lows in the market, but we have too much of them. We are also quite heavy into the engineering areas. And as I already explained a little bit on engineering, this is a very global market with global competition and heavy price pressure, especially where we stand right now in the market. Then Tech Consulting has been operating in a federated manner for a long time. So with many fully or wholly owned -- fully owned subsidiaries. And this creates a non-optical optimized cost structure to have it basically. It also drives service fragmentation. So all these things we have to deal with at the moment. So what is it -- and our financial performance is a testament to the situation and that we have to do something with this. What is it then that we do? We are focused on three main areas: customer centricity, which is mainly a focus on strategic customers. Service mix, that is a transition into the high-growth areas within the service mix. And thirdly, operational efficiency, which is mainly related to simplification. So I will go through a little more detail what it is that we actually do. We are focusing on 60 strategic customers. This is the customers which we will implement full governance on. They will also get a new -- and I think Endre mentioned it, a new governance model, which we are implementing at the moment. Our focus is also on the regulated industries. This is really our sweet spot, both because it's connected to our software businesses, but also because it drives the customer proximity. So if I just take one example from banking because that's an area I know the best maybe and in the lending area, it's not enough to be and understand lending generically on mortgages if you are in U.K. You have to understand, of course, both the process in U.K., the regulations in U.K. as well as the ecosystem in U.K. as these things varies between countries. So this is really areas where we can show our customer proximity and that we understand the environment the customer operates in. We are doing also changes as strengthening our key account management. And this is mainly related to people, process and tools. To drive our change in the service mix, we are also investing in hunters and increasing the amount of hunters in the unit. I really believe in the AI cloud data area, but I also very much believe in the enterprise application area. And the reason for this is that this is very much connected because what we see is that many AI projects are creating a lot of downstream revenues today. And usually, it starts with a smaller project in the AI space, then quite quickly, you are in a data project, you need the technology is usually cloud and then you also come down to the enterprise layer or into the core systems. So I just want to take an example from a customer we have in Europe. They are responsible for the expressways and motorways in the country. And we set out together with academia to -- and the customer to create an AI solution, which would help them to predict queue situation and both from an environmental point of view, but then, of course, from an efficiency point of view in general. And this starts as a fairly small project to start with. But quite quickly, it becomes quite complicated. First, you need to integrate thousands of cameras through the country to get the video footage from the traffic. Secondly, you need to manage regulations because you are not allowed to store video footage. It's not theirs. And which means that they have to -- in real time, it has to be translated into synthetic data. And then you can start to train your AI models on top of that. But then you also need to update the core systems because they are need to be able to act on the analysis and recommendations it gets. So all of a sudden, you're moving from a fairly simple situation and a smaller project into a very complicated project. And this is the real opportunity as we see today around all these AI cases that it brings a lot of things with you in the end. To focus in these areas and increase our footprint, we are driving a competence shift of 1,400 people through the unit. On the operational efficiency side, it is more about simplification. I already mentioned that we made a change into a new kind of structure where we focus more on the country local aspect with a very closeness between supply and demand that help us to make sure that we have exactly the amount of consultants that we need. Secondly, it is very much about the simplification. So we are continuing and we are continuing to do integrations of our subsidiaries. So in the end, what is it -- where are we going? What are we trying to become? So we are trying to become a leading Tech Consulting company or unit. With the customer in the middle, we are focusing on Nordic, Sweden, Norway, Finland, Central Europe, which is mainly a focus on DACH. We have, since many years, a very good and established operation in Austria, which have been growing very nicely, where we also have created a beachhead into Germany. Their task is to continue to drive and expand Germany. If we can find the growth we're looking for in Germany, we don't need to really go to many places in the coming years. And then, of course, we also have U.S. We are doing this together with our strategic partnerships. Microsoft, IBM, Databricks, Snowflake, super important in its journey. But then also our software businesses within Tieto, Banktech, Caretech, Indtech. Here is a huge potential for us to work much more closer. And the same thing as for the enterprise application as well as our core system we have in our software units. These are the software which is creating pretty much all the data. So here, we see a great opportunity to extend those offers with these other areas. And this connects, of course, also directly to the competence shift we are driving right now from the engineering areas over to these new high-growth areas. There is a bit of headwind in the market at the moment, but I am certain that we will see growth in this market for many years to come. And we are also aiming at the segment of the market, which grows twice as fast as the general market as such. We do that, as I mentioned, by taking and utilizing and taking care of the investments in AI Cloud and data and going for the downstream revenues. And as I said, we do this both with the strategic external partners as well with our software partners in the company. We are approaching this refocus in three different steps. During 2025, this year, it's about to build a foundation to work from. So -- and this is very much related to the change in our structures and the new operating model with a much higher customer centricity and a lighter overhead. Secondly, of course, it is about the integration of our subsidiaries. And then we also started a sales performance program to increase and make both our hunting sales as well as our key account management much better. Several of these activities will continue to move into 2026. But gradually during '26, we will expand more together with our strategic partners and accelerate our competence shift. In the later part of this period, we will see growth from the strategic customers, and we also will have improved the service mix as such. So how does this look like in numbers? As I mentioned earlier on, we are coming from a low growth situation, and I expect a small decline also during next year. But then we should be in a good phase and shape to start growing with our strategic customers, but also from the service mix change as such as this is more high-priced areas. During this refocus period, I expect a quite moderate profit expansion. To recap, AI cloud and data creates a huge opportunity and the downstream revenues it drives. But to capture that opportunity, we need to drive change through tech consulting. We are focusing our change into three areas: customer centricity, the business mix change and then a simplified cost structure or lower cost structure. We have already started the execution in all these areas. And I'm certain that when we are through this, we are in a good shape for further growth and also margin expansion. Thank you very much for listening to me. I see you later on in the break.

Thank you very much Pär, let's take couple of questions, we have a little bit of time here.

Sami Sarkamies, from Danske Bank Market. Looking at the financial targets, you seem to aim for quite modest growth below 5% market rate with margin level that is below the level you had in '22 and '23. Are you pulling to pull out from some business areas? Or what explains the cautious target setting? And can we assume that internal targets are much higher than what you are presenting to us?

As I tried to explain, if you look at the last 12-month performance, we're coming from a pretty bad growth situation. And it will take a bit of time to change this and making sure that we get the shift into the cloud and data area. So this is more an effect of the actual change that we need to drive rather than the external factors as such, then, of course, I get a higher target from Endre than what I present to you. That's, of course, correct.

Jaakko Tyrvainen from SEB. Regarding the continuously improving productivity, thanks to AI, how do you see the overall demand for consulting hours to develop in the markets overall, meaning that will the kind of increasing demand for outputs and outcomes be able to more than offset the improving productivity and reducing hours in that sense?

In the manner Endre answered this question or talked about this earlier, we see this more as a big opportunity for us, and we have not really seen that kind of impact yet. But if we think about create -- sorry, Tech Consultant consulting as a consulting unit where we're selling sort of our experience to customers. We are also, of course, utilizing these experiences and tools to deliver to the customer. But I don't see any -- at the moment, we don't see any such risk and it's more about productivity that you can increase the productivity and get more done. It's not like it becomes less because if we look into the legacy situation of our customers, it's huge. So there's so much work out there. So I'm not so nervous about that. Then I just want to answer as well that to hedge this a little bit, we're also doing this competence shift from traditional engineering areas, which is more about just development into the cloud and data area. That's our way to hedge this and also jump on to more higher growth train.

Let's take one question from the online audience next. What can you do to avoid giving away the productivity gains from AI to the customers in a business heavily based on time and material billing?

I think that all development we do in this industry have always been about automating manual work. So this is not the new thing with AI. This is what the IT industry always done. It doesn't matter if it has been coding a manual process or if it's AI, which does it. So as usual, it's a matter for us to making sure that we have our way of working and our IPRs and doing the work better than competition, then there is a possibility to take out premium.

Thanks, Pär. It's time to move on now. So thank you for the answers, and thanks for the questions as well.

We will now move to our unique software offering and here how we plan to expand our Lifecare product across growing European markets. Please welcome the Head of Caretech, Ari Jarvela.

Good afternoon. Tieto Caretech is one of the technological leaders in health care digitalization. We belong among the largest European health care software providers with our 1,600 dedicated professionals and 1,000 customers. We are ready to introduce our Lifecare software to a wider audience and capture opportunities in European health reforms. Our success in the Nordic reforms has secured our leadership position. This brings us the opportunity to continuously introduce our latest software to this extensive customer base and increase the wallet share. Building on this Nordic success, we are expanding the European markets. This strategic move aims to replicate our achievements, broadening our impact and bringing our Lifecare to wider markets. Tieto Caretech remains dedicated to delivering robust financial results. Our targets above 7% growth and 28% profitability reflects our commitment to sustained growth and high operational efficiency. In this presentation, I am going to open you up our plans. Reforms, digitalization and data utilization are driving the market growth in our industry. Aging population, together with the continuous demand of higher quality of care at controlled cost is putting a lot of pressure to care systems. At the same time, the digitalization level in our industry has been lacking behind of many other industries like retail or banking. When we are talking about reforms, typically, there are two kinds. One is aimed to integrate so-called full care value chain from social care to primary care to secondary care. The target is to get the visibility to this value chain and especially its resource utilization, avoid overlapping services and improve the citizen experience. The second type of reform is aimed to move towards more preventive and cost-effective ways of doing care like virtual care or home care. Regulation is evolving all the time, especially within EU. As an example, European health data space regulation, demand for openness and sharing of data. To a large extent, Nordic countries have this in place, but many other countries like Germany or the Netherlands do not. Better data utilization can improve the quality of care, both in treatments as well as in research. Entering to the wider European markets opens us an addressable market of EUR 3.7 billion compared to EUR 650 million currently in the Nordic only. Health care market is in demand of open modular and interoperable software. And as a technological leader, we are ready to capture that opportunity. We at Tieto Caretech believe that the time for monolithic so-called all-inclusive systems is just over. They are too complex, too costly. There's no speed and no innovation. We have been undergoing a significant transformation, moving from a country-specific software approach to a platform-based modular and interoperable, scalable Lifecare portfolio. Today, this Lifecare portfolio consists of a comprehensive set of software covering social care, primary care and secondary care settings. We claim our technological leadership since we have the only electronic health record software based on open standards and modular architecture in wide-scale production use. Furthermore, we have the only data platform certified under EU's medical device regulation as a basis of our advanced data and AI solutions. This brings the compliancy and reliability to our customers' health care data management. When looking at our key differentiators and what we promise to our customers, they include interoperability. Because of the open standards, open data models, open API interfaces, open user interface framework, we ensure seamless data flow without locking. This gives our customers full visibility to their viable health care data. We promise flexibility. Because of our modular approach, our customers can build their preferred tailored solution combination, avoiding monolithic solutions and vendor locking. This boosts our customers' ecosystem collaboration and innovation. We promise less complexity. We offer our customers a stepwise implementation approach, avoiding complex costly multiyear transformation programs before getting any tangible benefits. For the Nordic markets, naturally, we offer our full Nordic suite covering social care and health care settings. Our data offering is available in all of our go-to-market countries and include our Lifecare data platform and insights applications, as an example, resource optimization. For the European markets, specifically, we offer our modular clinical core applications like patient journaling and diagnosis management. This is the clinical component of our Nordic full suite. Tieto Caretech is the pioneer and innovator of open and modular software that promotes interoperability. And this approach has made us the winner in the Nordic health reforms. Nordics has been seen and is seen as a frontrunner in health care digitalization, and Tieto is playing the key role in building this. Even though we have approximately 1/3 market share in the Nordic countries, we still have a good amount of growth opportunities. In Finland, we have now secured 16 out of 21 well-being services counties and Helsinki University Hospital as our customers. This gives us the opportunity to continuously introduce the latest software, as an example, in the area of AI to this extensive customer base and increase the wallet share. In Sweden and Norway, our approach is similar. In both of these countries, we have 50% market share in municipal social care segment. To this specific segment, we are broadening our offerings by combining our social care and primary care software together to a wider solution. In addition, we have a good growth opportunities in regional health care settings, especially with our data and AI solutions. While valuing Nordic countries as our home, we are also entering to a wider European markets. When looking at the markets and customers, we have a clear criteria. One, we are looking at customers who has high need for electronic health record modernization. Only in DACH countries, there are more than 1,000 hospitals having outdated system technologies. We are focusing on countries where national focus is on integrated care because Tieto is the company behind the Nordic interoperability, we can bring this expertise to these customers. And we are working with the customers who are interested in open standards. Our Lifecare is based on open standards and modular architecture, and we can bring this experience to our customers. To summarize the cornerstones of our go-to-market strategy, they include focusing on markets where national reforms require interoperability. Out of our vast portfolio, we are offering the modular clinical core, the clinical component of our Nordic full suite, and we are working through partners. We work with the partners, system integrator company who has existing extensive health care customer base. They are keen on working with the innovative software vendor, and they have strong local consulting capabilities. With partners, we get faster time to market without being forced to ramp up extensive own sales force. Partners are mostly responsible of sales consulting and implementation tasks, whereas Tieta Caretech focus on software and software support. I'm extremely proud of our recently announced strategic partnership with NTT DATA to build Catalonia's open health platform. Just last week, we signed a partnership agreement of software reselling and implementation with Austrian-based health care consulting and system integration company, extension. They have 2,000 hospitals as their customers in the DACH regions. To be able to capture these opportunities, we have also shifted our investments towards growth initiatives. As an example, partner network, international product support and clinical core applications. Currently, the investment levels represent 17% of our revenue, and we are planning to maintain that proportion going forward. However, the capitalization is expected to reduce from the current 7% levels down to 3% to 5% levels of the revenue due to the fact that the big part of our extensive modernization program starts to be over, and now we are focusing on enhancing our Lifecare with the new functionalities. One key area is AI, where we have divided our investments into stand-alone AI products, AI embedded to our core suites and any AI within our operations, especially in the area of product development. As an example, our Smart Nodes tool in automated patient record transcriptions saves up to 50% of care personal time in documentation. 80% of our R&D engineers have been using GenAI tools since 2023. And we have gained more than 30% productivity improvement with notable improvement in the code quality. The shift in these investments also supports the healthiness of our portfolio mix. By '28, 96% of the revenue is coming from the modern Lifecare portfolio. The key levers to achieve this are continue outpacing the market growth with our best of suite in the Nordics, expand to the European markets with clinical core and phasing out our declining noncore portfolio mainly by the end of next year. This portfolio mix helps us to better meet the customers' evolving needs and improves our competitive position in the markets. These growth levers and especially expansion to the European markets and phasing out the noncore portfolio accelerates our CAGR to above 7% level during '27 and '28. It's naturally that the political agendas and public sector procurement processes may impact the timing. We will keep our profitability to a very healthy above 28% level while steadily increasing the investments to our growth initiatives, decreasing the capitalization and managing the rising depreciation. These very same growth levers also supports our world-class performance. Software recurring revenue will reach 78% by '28, supported by growing Software-as-a-Service part and our partners' contribution to consulting and implementation tasks in Central Europe. Good to be noted that the greater subscription license proportion and lower Software-as-a-Service contribution to total revenue reflects the market trends and what we have seen in the latest reforms. We have been doing a portfolio simplification, transforming towards the modern Lifecare portfolio. And this development has been demonstrated with our wins in the Nordic markets. For us, the year of execution and transition means that we are gearing up the international sales to European markets. We are phasing out our declining end-of-life portfolio, while we are keeping above-market growth rate with our best of suite in the Nordics. The next step is to accelerate by continuously advancing our clinical core software with the new functionalities and expand to new customers through partners. So to summarize, we have the technological leadership by having the only electronic health record software based on open standards and modular architecture. We have proven our capabilities by our wins in the Nordic markets. We get access to wider EUR 3.7 billion market through partners in selected European countries. And with this, Tieta Caretech remains dedicated to delivering robust financial results. Thank you.

Thank you, Ari. We are now opening the floor again for questions, and then Matti is the first one there.

Matti Riikonen, DNB Carnegie. I was really puzzled to see your profitability guidance, which is actually below what you have achieved in the past. I mean, when you talk about growth in a software business, which should be scalable, then of course, operating leverage alone should imply that you are ending with higher margins. And also, if you talk about more SaaS kind of products sold to the European markets, then of course, the sales mix should be better, so also lifting the margin. And when you also talked about the modernization of your key product coming to an end, I would imagine that, that would mean that the profitability could then increase because the cost base is going to be lower. So is the pressure from these discontinued products really so big that it basically eats out everything that you achieve on the other side? Or do you expect that there would be perhaps more price competition, lower prices or that sales mix would be inferior compared to the history or more sales costs related to the new areas. So could you please explain why you think that your business actually is doing worse in the future when it should be doing the other way around?

Yes. Okay. Thank you. There are a few main explanation. You said it once. So of course, we are investing more to go to market. We are setting up the partner network, partner support organization. It's not only letting our partners go free, but of course, we are there to support our partners as well as the end customers to get to our platform. And this, of course, requires OpEx expenses during the next -- this time period. You are absolutely right that when we will get this international expansion truly to fly, our scalable software can be extremely profitable. So that is one example. Then what we have seen now in the Nordic reforms and especially those ones that we have won -- when we have won our existing customers to continue with us. The competition is hard in the markets and everybody wants to hit us as a market leader. It brings, to some extent, not hugely, but to some extent, cost pressure because of the lower prices. And then thirdly, we are managing, in my opinion, smartly the capitalization also in our product development versus what are we taking as an OpEx cost. And like I said, compared to the current level, we are reducing the capitalization, and that has some few percentage point impact to our profitability. Those are the main things.

I guess, we have time for one more question.

It's Aditya from Bank of America. On the chart ratio, the portfolio mix changing over time, you have the contributions from the noncore products at 4% even in 2028. So does that mean there's still some drag from that in '27, '28 as well? And coming to the underlying growth, which you said is still pretty strong. How does that look like in '26, '27, '28? So just the core business which you have, how is that growing?

Yes. Okay. Thank you. Yes, in any business, there will be in the product business, certain long tail, and we expect that roughly 4% being this kind of we call it legacy software that our customers still wants to run during this time period. That is the reason for that we have reported during this year on a quarterly basis that this end-of-life portfolio will be roughly -- that impact -- has had some 4% impact to our -- 4 percentage point impact to our growth. And that will continue most likely as is next year. We have also informed that we have had several cases -- won cases in the market court, and those has impacted 2 percentage points. We believe that we are extremely strong. We have a strong case for those cases. And hence, the underlying growth has been, first of all, and will be above this 4% plus then whatever we gain from these won cases.

Thank you, Ari. Excellent. Now it is time for a short break. Coffee and snacks will be served right outside the room, and then we will continue in 15 minutes at 3:45. See you in a bit. [Break]

Welcome back. I hope you all had an energizing break, and now we will continue with even more energizing presentations. We will next have two more software businesses presenting. And then after those, we will dive deeper into the numbers with our CFO. And then as a reminder, we will also have the final Q&A later with both CEO and CFO joining. Next, we will hear how Indtech is scaling its software products across new markets. Please welcome Johan Nygaard.

Ladies and gentlemen, good afternoon. I took on this role in late June. And in the past months, I've been looking into what Indtech is. I have been listening. I have been learning. But I've also taken those opportunities to take it with curiosity and maybe also some kind of critical review as well. During these months, I have seen that there is a lot of strengths in Indtech. We have a lot of expertise. We have been there for many years, decades. We have really good customers and clients and pretty large logos as well. And we do have a really good portfolio of product or software solutions. We see that there are some improvements that need to be identified, and we have identified some of them as well, and we have taken the action. Going now into the next phase of Indtech, we will build on our strengths. And we also see that we have some improvements that we could do. But we will also take up a clear growth path on how and where we should go forward. As I said, Indtech is maybe not only one company, but it's a portfolio of software businesses. And maybe during the time now in the past months looking into how we have been treating Indtech also, it's maybe so that we try to get every of these eight product businesses fit into one size, but they are totally different. They have the different markets. They also have different kinds of customers, and they are also regionally in different markets when it comes to countries and so on as well. And they also approach those customers and the market in different ways. But in all this portfolio, as I see it, it's quite strong, and it's also a strength that we have this diverse foundation in the total of the portfolio. So two things, as I said it, we have a strong position and especially in the Nordics, but with opportunities and some of the business also having clients internationally. At the same time, we have software and the technology that we're able to scale. So this brings us the opportunity also to go abroad the Nordic countries. And we are then looking into how we could now utilize some of those product businesses. I will come back to this later on, that will give us also the growth of more than 6% with also a profitability above 17% in 2028. If you look on the left side, you see those charts and the bars there. And as you see from those span, there is a huge span of the total of the portfolio. As I said, we do have eight product businesses, and they span really wide when it comes to the geographic concentration, but also the customer retention and also when it comes to the high retention we have with all of our customers. Nordics is our home market. And if you look at the market there, we are still very much to the Nordic side. But at the same time, we also see that we have opportunities with growing internationally. And we have some of the product businesses that already have customers internationally and also some of them expanding into new markets globally. There are different go-to-market models. So if I move to the right side, you see those eight different product businesses. And five of them, they have 87% of the total of the revenue in Indtech. If we look into multichannel and [ BICS ] the first one, we have really had a strong position there for many years, both in Norway and Sweden. We see some growth opportunities there as well into other Nordic countries. But at the same time, we see also the opportunities that the digitalization going on now in Europe with also more focus on tax and tariffs coming. And this is both a B2C and a B2B software business. Public 360, that's a case management and is really strong in the public sector in the Nordics. But we are also exploring new opportunities there in Europe. And we see that they have a good market share now in the Nordics. But with this new technology and the strong regulations that is taken care of by Public 360, we see that there's a lot of opportunities outside of the Nordic as well. TIPS or pulp and paper and fiber that was mentioned by Endre is a place where we see that we have some headwind. This is a global, more or less business for paper industry. That's where we also see that we will gain some new opportunities now by renewing some of the software that we have had there for the last years. But still, this is a good opportunity with more than 300 mills globally going forward also with TIPS. Edlevo is a strong one in -- especially in Sweden, having growth in Finland. And if you look to share, that's one of also our growth bets, especially because they are strong in Norway, but they have also been really strong when it comes to the maritime sector. So that's where we see that we should have the opportunity also to grow more with Eye-share. So to summarize this, we do have eight products, five of those are 87% of it. And at the same time, we do have three really good product businesses that we see could give us an opportunity going more abroad of the Nordic countries, and I will come back to this later on as well. So just to give you some examples. We are maybe not -- the portfolio is maybe not typically household names. But as I see it, we are really critical for many parts of the society. We are what is doing with the software and the platforms behind everything. So just to give you some examples, if you register a car in Norway, for example, or you do some interactions with the local administration, probably all of this data is going through some of our platforms. If you are a Nordic citizen and you should pay some of your invoices, I'm pretty sure that some of this is also taking care of our software in those Nordic countries. And just as one example also, we do have 2 billion transactions in that software business in a yearly. So I think also if you take another example, when you go every week as a Nordic citizen and do your weekly grocery shopping, all the infrastructure when it comes to those retailers, that's also handled by our software, where we have those large [indiscernible] and so on in the Nordics. So that's why I say that more or less, there is a lot of critical services in daily that runs through our systems. And I think that this is also one of the great things with Indtech is that we have everyday moments that is more or less covered by our technology and our software. If you look at the growth, this performance is quite significant spread in the portfolio. Going from a lower number up to a higher number as well. And you see where we are on the average, the mark there for the portfolio. And we also have a target there. And I think that if we look on the total contract value we have had in the last year now and the book-to-bill, we have seen a huge increase in the opportunities we have there. And if you look on the TIPS, as I mentioned, that have had some headwind as well, this is recovery ahead as we see it. So we mean that TIPS will give us another opportunities as well. Those that are going to bring us the opportunity to grow outside of the Nordic. That's Eye-share. It's Public 360 and it's a Multichannel & BIX. And we have done a lot of things now when it comes to profitability. We are aiming for SG&A costs lower than 10%. We have done something already now, as mentioned also by Endre. And we have done a lot of turnaround also with 2/3 of the software we have in the total of the portfolio. I think also it's going to be a clear split because some of the software units, they are really strong in the Nordics and they had opportunities also to grow in the Nordics. While we really need to bet on some of our software units as well on how we could be able to grow outside of the Nordics. We are well positioned in many of the markets. We do have a proven playbook on some of our software. And I bring up -- I shared again. It's an industry -- #1 industry solution, at least in Norway. But with the focus they have had and we have been following our customers, especially in the maritime sector for many years, and we've selected now to be the #1 when it comes to the maritime sector globally with Eye-share. Public 360, as I mentioned, that's only pan-Nordic solution. And the strength there is that we have a really good position going into Europe with high security. I think we have the highest security you could get from different military organizations and so on. So I think that, that's a big value of going into more regulated case management systems in Europe. And from everything we see in the daily now with the challenges in Europe, I think that this is going to be more and more important also. Multichannel & BIX as I said, there's billions of transactions. And I think we have been pretty far when it comes to digitalization in the Nordics compared to the rest of Europe. And this is something we have been delivering all the software solutions for large banks, credit card companies, municipalities, large retailers and so on. So we have the total business-to-consumer and the business-to-business communication there. So this is also something we see that we could utilize going into new markets, and we have been starting exploring new markets. But I see that the digitalization rate in Europe will be much faster than we have seen in the Nordics. It took maybe 20 years to become in more or less or 95% digitalized when it comes to e-invoices, or invoices in the Nordics. While, then I think it's going to take 5 to 6 years to reach the same thing in the rest of Europe. Because we see the technology, we see AI, and it's also by regulations coming from authorities, that's going to accelerate this utilization. And I think we will be spot on when it comes to our heritage coming from the Nordic being a part of this digitalization and grasp that opportunity going forward. We have modernized and this is the same also where you see the bars on the left side, it's also a span here. But with the marker, it's more to the right. We have renewed some of the portfolio already. We are continue doing this. AI will support us on this as well. But we do have a few legacy left as well. We do have a strong market positions. And when it comes to AI, I would like to focus on Public 360°as well. We are today covering 90% of the citizens in Norway, with a totally AI solution in Public 360°. So we have come pretty far. The other thing is that also mentioned by Endre, is that we now give the customers or clients opportunities to use AI portal as a framework where they could use the AI technology to make their own apps. And this is quite revolutionary also when it comes to using those opportunities for a case management system that is really important when it comes to security. This is something we implemented as well. Then with Eye-share, we have been working with AI for 2 to 3 years, maybe more as well. And today, we see that invoice approval has increased to above 80% by using this AI technology. And this is also coming back to what I said when it comes to digitalization. This is also a part of the digitalization. One thing is the automation of it, but it's also to be able to bring this AI and the technology. And the software and the understanding we have in those niches that these 8 product or software businesses have their focus. At the same time, we also see that the R&D productivity secure AI. I think that's one of the most important things, accelerating a lot. Then I think that AI also will help us boost the R&D and the productivity that we do. Maybe we want to have the same number of people in 2028. But those people will produce much more high-quality software compared to what we do today because of the use of AI. So this is one of the things that we have been working on for the last 2 years. And this is a rapid change in that technology happening every day. So I think that we do have strong products. We do have a strong customer base. We are still in very strong in the Nordics because that's our home market. But we also co-developed together with our customers coming from the Nordic heritage going into new opportunities also in new markets. And we have these 3 growth tracks. And 3 products, Public 360°, Eye-share, and Multichannel & BIX that would like to go out with in new markets. We are shifting our portfolio to higher recurring revenue. We are on a quite decent level today, but you see that we even now need to also change some of the professional services. And we have done a lot of this in Public 360°and Eye-share where we changed from professional services more into SaaS revenue. And this also gives us an opportunity with shifting the portfolio also more into the SaaS revenue, but also a bigger and addressable market. If you look on the bottom side there, there is a strong demand, as I said, for automation. There is increasing also from regulatory needs. It's coming more and more regulations from Europe. That's really good for us because we are already ready to meet those regulations. And that's especially when it comes to tax and also the tariffs. And I think that when you have this really significant niche product businesses, it's also barriers for others to entry into this one. So growth from our core geographies and our customers. I think that we see that maybe 20%, 25% of our expansion is going to be -- our growth is coming from new markets. We see that we should have a CAGR, as I mentioned, above 6%, and also then profitability of 17%. There are a lot of cost reductions already done. I think we need to keep on with this as well. It means that we need to utilize everything we could when it comes to be crisp and clear on the strategy also going forward for each of these 8 product businesses. So in 2025, we sharpened the profile. And if we look into now, what's the most important things now going forward. Simplify in 2025, reduce the SG&A that's what we have done. 2026 is about taking those growth products, expand outside of the Nordic. I think that Denmark, U.K. and Netherlands is really good opportunities for those 3. And then at the same time, take the opportunities when it comes to regulations also into '27, 2028. So to wrap it up, we are in a really strong Nordic position with 8 distinct proven products. We have the opportunity to grow from those 3 winners. They're already in a scalable and also global potential. We have modernized parts of the portfolio already. AI is important where it adds value. And AI capabilities also where they truly, so to say, bring value for our customers. So we know the markets, we know our customers. And I think we are ready to grow. Thank you.

Thank you very much, Johan. Once again, we are ready for your questions. And there, Matti was first one with the hand up.

Matti Riikonen, DNB Carnegie. When you say that you have 8 products bringing 87% of revenue and only 3 products with growth opportunity, it means that your entity is actually very complicated and very diversified. And if it was listed separately, many would consider that it's too wide, too complex. It would need to be restructured to have some kind of focus. And now it's part of Tieto, which makes it even bigger question. So what is stopping you from making some structural changes to the company so that you would basically skip focus and maybe divest the ones that are not core for you, then focus everything on the ones that bring you the growth, and then see what happens? So is it kind of lack of growth opportunity in those 3 or maybe too low valuation to sell the others, which are not performing? Or is it just that you don't have the resources to develop those remaining ones that would be interested. So I mean, there is a reason why you have had these businesses, I think, for the past 10 years or maybe more and nothing has happened. So I would like to hear your view that why are they still there? And why haven't you done anything?