F-secure Oyj · OMXHEX:FSECURE
F-secure Oyj — Investor Presentation (February 2024)
30 slides from F-secure Oyj's investor presentation, February 2024
Slide 1: F-Secure Corporation Investor Presentation
t: F-Secure. F-Secure Corporation Investor Presentation October-December 2023
Slide 2: Our purpose, vision and mission
Our purpose We exist to make every digital moment more secure, for everyone Our vision To become the #1 security experience company in the world Our mission Continuously deliver brilliantly simple, frictionless security experiences to our customers and partners fF F-secure. 2
Slide 3: F-Secure in brief (2022)
F-Secure in brief (2022) Revenue 111 MEUR (+4.5%) Adjusted EBITA 43.9 MEUR (39.6% margin) Gross margin 91.6% of revenue fF F-secure. Cash conversion 96.2% Employees* 511 Earnings per share 0.17 EUR *Q3/2023 Strategy based on three pillars: 01. Increase average revenue per user (ARPU) 02. Developing
Slide 4: F-Secure portfolio
F-Secure portfolio Securing every digital moment. Simplified. Safe browsing & Ga Qe Family rules Banking protection iv) Malware protection ae “—~ Identity protection Privacy protection QB Smart home security Protection on the go Y Cyber Help A Strong passwords ? fF F-secure.
Slide 5: Partner channel and direct channel by region
Partner channel Direct channel Nordic countries Rest of Europe North America Rest of World 5
Slide 6: Journey to becoming the security experience leader
Journey to becoming the security experience leader 2023 2024 2025 2026 Total Agility No.1 Security Experience Tier 1 Partner Excellence 6
Slide 7: Megatrends driving our vision
Megatrends driving our vision Vulnerable digital moments Complexity overload Rise of Generative AI 7
Slide 8: Consumer cyber security is a large, growing market
Consumer cyber security is a large, growing market Several market drivers accelerating growth Global cyber security market (EURbn)* 22-26£ CAGR > Increasing digitalization affects 6.8% . as consumer behavior 16 9.5% 7.9 > Consumers’ increasing 1 24 3.8% willingness to pay is increasing 2.0 > Cyberse
Slide 9: Integration of Lookout consumer business
Integration of Lookout consumer business Integration has been progressing mainly as planned Integration of the mobile consumer security business unit from Lookout Inc. * Transaction completed and integration process ongoing: Figures consolidated with F-Secure started from 1 June 2023. No attrition a
Slide 10: Why invest in F-Secure?
Global leader in the Communication Service Provider (CSP) channel Consumer cyber security Positioned for growth in is a large and growing North America – the largest market opportunity consumer security market Why invest in F-Secure? Scalable, highly profitable SaaS business Expanding market reach t
Slide 11: Strong cash flow creates shareholder value
Strong cash flow creates shareholder value Leverage Strengthen balance Net debt/Adjusted EBITDA ratio below 2.5x, excluding temporary sheet through focus impact from acquisitions on de-leveraging • Leverage in H1/2023 3.5x due to the acquisition of Lookout Life • Interest payments due to the debt ta
Slide 12: Outlook for 2023
Outlook for 2023 Updated September 8, 2023 fF F-secure. Growth F-Secure estimates that revenue for 2023 will be in the range of EUR 128- 132 million. Profitability The group's adjusted EBITA is expected to be in the range of EUR 41-45 million The adjusted EBITA margin is estimated to temporarily dec
Slide 13: Medium-term financial targets (updated April 26, 2023)
Medium-term financial targets (updated April 26, 2023) By 2026 Growth: Total revenue of more than EUR 200 million by 2026. Profitability: shinvestments adjusted EBITA not Target to consistently After initial grow investments, adjuste margin o outperform market growth Dividend Yield: & Around or abov
Slide 14: Towards medium-term financial targets 2026
Towards medium-term financial targets 2026 Key growth levers Evolving go-to-market Total conversion Best partner experience channels and offering Net debt / adjusted Total revenue of more After initial growth Dividend yield EBITDA ratio below Targets 2026 than investments, adjusted around or above 5
Slide 15: (: F-Secure
(: F-Secure
Slide 16: Appendix
Appendix Interim Report 1January—30 September 2023 Presentation material fF F-secure.
Slide 17: Interim Report 1 January–30 September 2023
Interim Report 1 January–30 September 2023
Slide 18: Q3: Acquisition integration and strategy execution
Q3: Acquisition integration and strategy execution Performance still burdened by low consumer confidence Revenue growth of 25.8%, organic growth 0.3% — Direct Business organic growth decline continued whereas Partner Business grew marginally Strategy execution continued: new Total sign-ups and launc
Slide 19: F-Secure initiates change negotiations
F-Secure initiates change negotiations Announced on 25 October 2023 + F-Secure andits subsidiaries initiate group-wide statutory change negotiations to restructure its global operating model and personnel to align with the strategic priorities and financial targets of the company. * Concerns the ent
Slide 20: Q3/2023: Cornerstones of our strategy
Q3/2023: Cornerstones of our strategy Increase average revenue per user (ARPU) Strategic focus: Accelerate the roll-out of F-Secure Total Progress ing3:; ° — Signedup 3new partners for F-Secure Total + 3existing partners signed up for F- Secure Total upgrade * In total 6 new Total launches were made
Slide 21: 2023 2024 2025 2026 • • • • • • • • • •
2023 2024 2025 2026 • • • • • • • • • • • → •
Slide 22: Financials
Financials
Slide 23: where activity and partners’ interest in F-
• • • Revenue increased in the Netherlands, where activity and partners’ interest in F- Secure solutions is good. • Revenue increased in the APAC area, positive development in Japan and Singapore. • Revenue decreased in Poland and Germany, due to weaker business performance during the quarter. • • W
Slide 24: Deferred revenue breakdown
28.5 23.4 22.8 20.9 21.2 19.8 6.4 6.0 24.5 6.1 3.6 3.8 6.7 3.4 22.1 22.5 22.0 6.0 5.8 5.8 16.4 17.3 17.4 16.9 16.8 5.7 Current Non-current F-Secure revenue Lookout revenue F-Secure revenue Lookout revenue * Deferred revenue breakdown is indicative, figures in brackets refer to Q2/2023
Slide 25: * Excluding Items Affecting Comparability (IAC) and depreciation and amortization.
• • • • * Excluding Items Affecting Comparability (IAC) and depreciation and amortization.
Slide 26: Transitional services agreements rolling with WithSecure and Lookout
Transitional services agreements rolling with WithSecure and Lookout Transitional services agreements (“TSA”) between F-Secure and WithSecure incurred in connection with the demerger from WithSecure + These TSA costs in cost of revenue are planned to terminate latest by the end of 2023. + Majority o
Slide 27: 45.0% 90.0% 40.0% 30.3 35.0% 80.0% 27.0 12.8 25.7 25.9 25.3 30.0% 25 12
20 45.0% 40 90.0% 18 40.0% 35 16 30.3 35.0% 30 80.0% 27.0 14 12.8 25.7 25.9 25.3 30.0% 25 12 11.4 70.0% 10.2 9.8 9.9 25.0% 20 10 60.0% 20.0% 8 15 15.0% 50.0% 6 10 10.0% 4 40.0% 5 2 5.0% 0 30.0% 0 0.0% • • • • • 27
Slide 28: Leverage target and net debt
39.6 % 325 5.0 32.4 % 26.5 % 3.5 3.6 4.0 275 Leverage target: 2.5x 3.0 9.3 % 11.7 % 225 191.3 187.7 2.0 175 1.0 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 -0.2 -0.6 -0.4 0.0 125 -1.0 75 -2.0 0.05 25 -3.0 0.04 0.04 0.04 0.04 0.04 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 0.03 -25 -4.0 -10.8 -19.3 -24.2 Net debt/Net cash Net
Slide 29: 5.7 4.4 21.1 12.5 36.4 36.8 29.4 29.9
5.7 4.4 21.1 12.5 36.4 36.8 29.4 29.9 29
Slide 30: F-Secure
(: F-Secure