Investors

From the CEO

“Vincit’s revenue increased by almost 50% from the comparison period, driven by the Bilot merger. Vincit’s
traditional strength, tailored software development, is, however, in a faster-than-expected market
turbulence due to a change in customer demand and strong price competition. This weakens our
expectations for revenue growth and profitability in the second half of the year, which led us to lower our
guidance in June. Simultaneously, the move upwards in our customers’ value chain is progressing according
to our strategy. We will continue to renew Vincit by developing new commercial expertise and updating our
brand during the fall season. With the Bilot merger, our strength in the SAP ecosystem has repositioned
Vincit and opened a new customer market for us. We are also investing in developing a strategic partnership
with Microsoft, especially linking SAP technologies to Azure cloud solutions and utilizing AI in software
development.

In the United States, our business was slightly in the red and the turn for the better requires us to succeed
in new sales in a wider range of industries. We have adapted the operative costs of Vincit USA to the new
situation and renewed the local management model in terms of sales and marketing. In Europe, our profitability was weakened by the one-off payment to the entire personnel allocated in the second quarter
based on the collective agreement in Finland, as well as high overhead costs. We have increased measures
to improve profitability and our focus on costs. During the review period, we merged the DevOps &
Platforms unit to the Talent & Delivery unit, which in the future is responsible for the service production of
the entire company. At the same time, we streamlined the Leadership Team, implemented personnel
reductions and lay-offs, and continued to reduce premise costs.

There are still uncertainties on the horizon, which are related to the macroeconomic outlook and reflected in companies' willingness to invest, especially when it comes to new digital services.
Although this year seems challenging at the moment, I am confident that Vincit is well positioned in the
changing IT industry landscape, as our own ongoing journey progresses."