Withsecure — Investor Day (November 2024)
57 slides from Withsecure's investor day presentation, Nov 22, 2024
Slide 1: European flagship Investor Day
European flagship INVESTOR DAY 22 NOVEMBER 2024 HELSINKI
Slide 2: Disclaimer
Disclaimer: This presentation contains forward-looking statements that with other factors, may have a material adverse effect on our reflect the current views of WithSecure Corporation results. Further, the economic downturn in our markets may (“WithSecure”). These forward-looking statements include
Slide 3: Welcome
Welcome Laura Viita VP, Controlling, Investor Relations and Sustainability
Slide 4: Agenda
Agenda Laura Viita 9:00 - 9:05 Welcome VP, Controlling, Investor Relations and Sustainability Antti Koskela 09:05 - 09:20 IMPACT – Becoming a European flagship of cyber security President and CEO Lasse Gerdt 09:20 - 10:00 WIN – Creating Value for Customers and Partners Chief Customer Officer 10:00 -
Slide 5: IMPACT: Becoming a European flagship of cybersecurity
IMPACT Becoming a European ; flagship of cybersecurity — Antti Koskela President and CEO ‘
Slide 6: Our core beliefs
Our core beliefs is broken. European alternative. capabilities,
Slide 7: Mid-market is losing digital confidence
Mid-market is losing digital confidence 60% 51% 50% 40% 37% 30% 29% 26% 20% 18% 15% 13% 10% 5% 0% 2022 2024 2022 2024 Losing cyber confidence and resilience Gaining cyber confidence and resilience Source: World Economic Forum – Global Cybersecurity Outlook 2024
Slide 8: Cybercriminals do not discriminate
Cybercriminals do not discriminate 70% of all cyber-attacks target small and medium-sized businesses averaging 4,05 M€ financial loss per breach1 1National Cyber Security Alliance 2024 IBM Cost of data breach 2024
Slide 9: Regulatory demands are growing
Regulatory demands are growing NIS2 - main changes from predecessor legislation1: • Sector scope expanded, bringing total number of companies affected from an estimated 14k to 114k • Minimum effective security level requirement raised; a proactive approach to risk management • Personal responsibilit
Slide 10: Our ideal customer
Our ideal customer Re s o u r c e s • No cyber security capability in-house Under-resourced & Under-served • Realize they need to act, either ! proactively or forced by regulation h ere ore is • Prefer to trust a local partner to deliver rc Ou the service 50 -20 0 0 employees Te c h n o lo gy u s a
Slide 11: The new mid-market playbook
The new mid-market playbook How our customers feel Outcomes they want The solutions we offer Overwhelmed Resilience Elements Cloud Underserved Trust and compliance Co-Security Services Under-resourced Efficiency Luminen GenAI
Slide 12: Our strategic choices
Our strategic choices WIN STAND OUT By delivering minimum By making Elements effective security and Cloud outcomes for mid-sized a unique platform of businesses and the partner capabilities (not just ecosystem they trust and products) connecting prefer. technologies, AI and human expertise. IMPACT R
Slide 13: WIN: Creating value for customers and partners
WIN ‘ Creating value for customers and partners Lasse Gerdt Chief Customer Officer
Slide 14: Customer Value
Customer Value European-originated cyber security for mid-market companies that are challenged by the evolving threat landscape and security resource scarcity. • No compromise security • No compromise security • Small to mid-sized solutions platform represents over 98% of • Extended security • Deliv
Slide 15: Partner strategy
Partner strategy Recruit Co-Sell > 200 seats • Managed Service Provider (MSP) End-customer Segment • IT Reseller • Global/Regional Value-Added Reseller (VAR) Nurture • Regional service provider • Integrator • Cloud Marketplace Longtail Automated Scale • Global distribution via Cloud < 200 seats • De
Slide 16: Co-Sell Partnerships
Co-Sell Partnerships Made for Managed Service Providers (MSPs), Service Integrators and Value-Added Resellers (VARs) to deliver effective cyber security as part of their service offering • Extend security offerings • Cover for complexity • Joint High Touch Go- with ease and skills To-Market • Integr
Slide 17: Platform-enabled Partner Offering
Platform-enabled Partner Offering Solution Tailoring Better match for customer need and segment Up- and Cross-sell extended opportunity Revenue increase per customer Co-Security Services Quick time-to-solution and extended capabilities Innovation Cloud-native Platform – Time to market
Slide 18: Digital Experience and Automation
Digital Experience and Automation Consolidating and automating the long-tail partner and customer experience • New strategic Distributor • Efficient bundling • Elements to AWS program (EMEA and • eCommerce foundation Marketplace Japan) • Partner Portal • Cloud marketplace • API support for • Automat
Slide 19: Partner Program 2025
2025 – Growth through Partnership focus Strategic High touch regional approach and global SMB GTM engine with local execution Partner Program Segmented marketing and sales focus with clear end customer value Joint target setting, management commitment and mutual sales operations Cross-sell to existi
Slide 20: Wilbert van Beek
Wilbert van Beek Managing Director • Netherlands-based • Wide adoption of Elements in bundle offerings of • 26 years of experience Protect, Prevent and Proactive • 180 employees (Ictivianen) • EDR + XDR (Mobile and identity protection, • Managed Service Provider for security, collaboration protectio
Slide 21: Coffee Break
COFFEE BREAK
Slide 22: STAND OUT: Elements, a unique platform of capabilities
STAND OUT Elements, a unique platform of capabilities Artturi Lehtid VP, Product & Portfolio Managemen
Slide 23: Best practices ≠ reality
Best practices ≠ reality. Multi-factor 35% of SMBs globally are using Identity Zero trust MFA1 authentication End Point Protection + XDR (eXtended Detection Only 41% of EU companies report Endpoint Endpoint Detection & using EDR/MDR or similar2 & Response) Response (EPP & EDR) Hybrid 45% of EU compa
Slide 24: Minimum effective security keeps evolving
Minimum effective security keeps evolving ➢ Driven by compliance (NIS2) and expanding digital attack surface Yesterday Today Tomorrow
Slide 25: XM XDR
XM XDR before attack is the minimum effective security that addresses ° during attack the mid-market cyber security needs before and during an attack.
Slide 26: Elements Software, Co-Security Services
Elements Software Co-Security Services
Slide 27: Platform
Platform The “Big 3” Enterprise security platforms Enterprise Mid-market Vulnerability & Exposure Management Extended Detection and Response Product
Slide 28: Elements XM helps decision-makers inform business risk choices
Elements XM helps your decision-makers make informed choices about your business risk.
Slide 29: Exposure management data and remediation
Data: Remediation: W/S Elements Automated Cloud data Attack path Threat intelligence and User guided Intelligence data Heuristic attack path awareness Context-aware prioritization simulation & on remediating actions Contextual validation data Elevated
Slide 30: IBM Cost of a Data Breach Report 2024
1. IBM Cost of a Data Breach Report 2024
Slide 31: Identity and access management
Microsoft 365 3rd party cloud services Cloud platforms Microsoft Identity and access management Entra ID for devices and cloud-based services
Slide 32: Meet Luminen
Hum(Al)n user experience is here. Meet Luminen™ secure
Slide 33: Recognition: a leading European vendor
recognition A leading European vendor ® WithSecure is once again WithSecure provides good We believe this recognition is due identified as one of the 15 service and is a cost-effective to our latest innovations in Identity recognized vendors in the Gartner choice for small and mid-sized Security, MD
Slide 34: WithSecure Elements
WithSecure™ Elements (22.%%°203/o%'" S39 Exposure Management ‘3g ot Resuones en Oo Co-Security Services <a Attack Paths O Endpoint Protection a J Elevate Ex si ® Posure Score ©) Endpoint Detection & Response (8) co-Monitoring om °c Remediation 5 5 © Managed Detection oct Q Identity Security <=> and
Slide 35: RUN as a world class SaaS company
RUN as a world class SaaS company Tom Jansson Chief Financial Officer
Slide 36: Rule of 30+ in the next 3 years
WITHSECURE MEDIUM-TERM FINANCIAL TARGET: Rule of 30+ in the next 3 years
Slide 37: Elements Company: transformation into cloud-based SaaS
Elements Company Our transformation into a cloud-based SaaS company Cloud Protection for Salesforce moves to -6.8 its own segment 82.5 81.8 80.2 80.5 78.4 Elements Cloud ARR 73.4 73.3 73.7 71.7 On-premise ARR 67.5 64.1 60.9 55.5 51.5 47.0 45.5 42.5 43.2 41.7 34.5 32.0 31.8 29.9 30.2 28.8 28.6 28.0 2
Slide 38: Elements Cloud ARR breakdown
Elements Cloud ARR breakdown 81.8 73.8 22.2 Gross margin*: 59% 22.5 Top 10 customers: EUR 7.8 million ✓ Re- Focusing Managed services on mid-market customers Number of customers: 270 ✓ Increasing number of co-security Net Revenue Retention*: 87% customers + 16.2% 59.6 51.3 Gross margin*: 87% ✓ Cross
Slide 39: Market size and growth 2024-27
Market size and growth 2024-27 +13.8% CAGR 35 36.9 bn in 2024 31.7 57.9 bn in 2027 30 CAGR of +16.2% 25 21.5 20 ✓ Europe + Japan ~30% +18.6% CAGR +20% CAGR ✓ Small/mediums ~68% 15 13.5 12.7 XDR 4.4 bn 10 8.1 7.4 XM 1.7 bn 5 MDR 1.5 bn Total 7.5 bn 0 XDR incl. Collab prot Exposure Mgmt MDR 2024 Sourc
Slide 40: Opportunity
Opportunity A solid base for accelerated growth 0-49 50-249 250+ Total # of companies1 36,028,240 275,190 58,321 WithSecure share, # ~95,000 ~8,800 ~3,300 WithSecure share, % 0.3% 3.2% 5.6% 1Database - Eurostat
Slide 41: Modules in use by customer
Modules in use by customer in our key customer segment of 200+ seats ✓ Accelerate growth through leveraging our existing customer base ✓ Win new customers in key segments 2 modules 3 modules 4 modules or more
Slide 42: Revenue per user by product
WithSecure Managed Detection and Response 12 x Elements Exposure Management 9x Elements Collaboration Protection 4x Elements Endpoint Detection and Response 3x Elements Endpoint Protection *Average annual revenue per user
Slide 43: Ambition in the next 3 years
in the next 3 years Q3 24 YTD Ambition in next 3 years Revenue 79.0 Double digit growth % Gross margin 79.6% 80 – 85% Sales & Marketing 36% 29 – 34% Research & Rule of 30+ 29% 23 – 27% Development General & Admin 11% 8 – 11% Adjusted EBITDA 3% Double digit EBITDA %
Slide 44: Medium-term target of WithSecure
Medium-term target of WithSecure Rule of 8* Rule of 30+ today by 2027 Improve profitability: Accelerate growth: Efficient SaaS business New customers models & automation Cross- and upsell Scaling S&M spend New Products Focused R&D Partner Development Lean G&A Customer Success *Q3/24 YTD
Slide 45: Protecting Salesforce
Protecting Salesforce Juhana Autio General Manager & VP, Cloud Protection for Salesforce
Slide 46: Cyber criminals constantly look for new attack vectors
Cyber criminals constantly look for new attack vectors Partner and Web forms Web chats Support emails community portals Commercial operations Customer service Community portals Marketing operations
Slide 47: Cloud security is a shared responsibility
Cloud security is a shared responsibility • Platform & infrastructure • Identity management & Multi- security factor authentication • Auditing and penetration • Access rights testing • Platform configurations • Physical security • Content including malware, • Host infrastructure ransomware and phish
Slide 48: Salesforce
Salesforce *IBM X-Force Threat Intelligence Index 2024
Slide 49: Real-life incident stories
Real-life incident stories Energy company (UK) Manufacturing enterprise (USA) • Malicious QR code: Bypassed Salesforce security via • Cyber attack initiation: phishing email through an a web-to-case submission. Email-to-Case. • Human error: User clicked a malicious link in • Phishing redirect: QR co
Slide 50: Category leader on AppExchange
★★★★★ ★★★★★ ★★★★★ ”The Ultimate Platform ” Great product and ”Simple, Secure and easy for Easy and Secure delivered on installation” Category leader on Online Experience” expectations” AppExchange
Slide 51: 150,000+ customers, USD 24Bn market
150,000+ • Global demand across industries, especially large enterprises Customers • Unique native Salesforce solution • Sales and marketing collaboration with Salesforce + • Easy and native installation on Salesforce AppExchange USD 24Bn • Independent business unit dedicated to Salesforce security
Slide 52: Building the future
Building the future • Real-time File scanning • Situational awareness through • Real-time URL scanning correlative event analysis • Broad and deep content scanning • Real-time security snapshots • Real-time actionable guidance • Complete view of user specific risks • User behavior monitoring • Sales
Slide 53: Our mission is to become the #1 Salesforce security solution
Our mission is to become the #1 security solution within the Salesforce ecosystem, complementing Salesforce's native and premium security offerings. Solid Go-To-Market and competitive Category leading product positioning High performing team Massive market and growth opportunity
Slide 54: Closing
Closing Antti Koskela President and CEO
Slide 55: Rule of 30+ company
Rule of 30+ company WIN STAND OUT By delivering minimum By making Elements effective security and Cloud outcomes for mid-sized a unique platform of businesses and the partner capabilities (not just ecosystem they trust and products) connecting prefer. technologies, AI and human expertise. IMPACT RUN
Slide 56: Q&A
W/TrF secure Q&A
Slide 57: Slide 57