F-secure Oyj · OMXHEX:FSECURE

F-secure Oyj — Investor Day (November 2018)

11 slides from F-secure Oyj's investor day presentation, November 2018

  1. Slide 1: Financials

    FINANCIALS Eriikka Söderström, CFO

  2. Slide 2: Share of corporate security has constantly increased

    SHARE OF CORPORATE SECURITY HAS CONSTANTLY INCREASED Corporate +18% CAGR 2015 - 2017 Consumer +1% CAGR 2015 -2017 Revenue, M€ Existing outlook for strategy 200 period: 181 •Revenue from Corporate 170 security is expected to grow 158 148 above 15% annually during 150 our strategy period 2018- 72 86 6

  3. Slide 3: Corporate: increasing share of new cyber security solutions

    CORPORATE: INCREASING SHARE OF NEW CYBER SECURITY SOLUTIONS OIT, M€ 100 93 82 80 New cyber security solutions 38% 69 +110% CAGR (2015-2017) 29% 18% 60 55 10% 40 71% Endpoint protection (EPP) 82% 62% 90% +8% CAGR (2015-2017) 20 0 2015 2016 2017 Last 12M1 1Last 12 months as of October 2017 – September

  4. Slide 4: Revenue grew fastest outside Nordic markets

    REVENUE GREW FASTEST OUTSIDE NORDIC MARKETS Revenue, M€ 60 50 50 North America 9% +22% CAGR 41 13% Rest of the world 40 9% +26% CAGR 13% 30 Rest of Europe 46% +34% CAGR 42% 20 10 Nordic 36% 32% +9% CAGR 0 Q3-2017 Q3-2018 4

  5. Slide 5: Gross margin aligned with peer companies

    GROSS MARGIN ALIGNED WITH PEER COMPANIES Cost of revenue restated to Increased share of consulting increase comparability with and MDR industry 96% • Gross margin figures (and opex by function) reported before 2017 are -11p.p. 85% non-comparable with current -5p.p. 80% reporting • After restatement

  6. Slide 6: Operating expense structure continue to reflect growth ambition

    OPERATING EXPENSE STRUCTURE CONTINUE TO REFLECT GROWTH AMBITION Operating expenses1, M€ Operating expenses1, % of revenue Administration Research & Development Sales & Marketing Administration Research & Development Sales & Marketing 200 Restatement of Gross Margin 80% Restatement of Gross Margin 70

  7. Slide 7: Significantly increased capabilities in corporate security

    SIGNIFICANTLY INCREASED CAPABILITIES IN Headcount CORPORATE SECURITY 1 800 1 636 MWR 1 500 F-Secure 407 1 200 900 600 1 229 1 026 1 104 926 300 0 2015 2016 2017 Q3-2018 7

  8. Slide 8: Investing in corporate security growth impacts profitability

    INVESTING IN CORPORATE SECURITY GROWTH IMPACTS PROFITABILITY M€ 30 Adjusted EBITDA Outlook for 2018 (updated M&A costs 18 October 2018): 25,9 PPA Amortization 24,5 25 Depreciation & Amortization •Adjusted EBITDA is expected 0,4 5,9 Reported EBIT to be in the range of 14– 4,9 18M€ 20 18,2 18,0 •M&A r

  9. Slide 9: Capital structure changed after acquisition

    CAPITAL STRUCTURE CHANGED AFTER ACQUISITION Use of cash Change in Assets Change in Equity & liabilities Investments in subsidiary shares 104 Non-current assets 222 Equity 222 Dividend payment Other current assets Interest bearing liabilities Net Investments Liquid assets Other liabilities 67 175 175

  10. Slide 10: Summary

    SUMMARY

  11. Slide 11: Growth in B2B cyber security provides scale for profitability

    GROWTH IN B2B CYBER SECURITY PROVIDES SCALE FOR PROFITABILITY • Advanced cyber security solutions fastest growing part of F-Secure offering • Managed Detection & Response (MDR) drives higher value Growth • Competitive product portfolio on market with EPP/EDR and cross-sell opportunities • Continued

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