Slide 1: Financial Statement Release 1 January–31 December 2023
Financial Statement Release 1 January–31 December 2023
Slide 2: Q4: Ending the year on a positive note
Q4: Ending the year ona positive note Market recovery in Direct business Revenue growth of 30.6%, organic growth 2.9% — Partner Business on a steady path, Direct Business supported by strong renewal performance. Strategy execution continued: 3 new Total sign-ups and nine agreements with existing par
Slide 3: Q4/2023: Focus on profitable strategy execution
Q4/2023: Focus on profitable strategy execution Strategic focus: Progress: fF F-secure. Increase average revenue per user (ARPU) Accelerate the roll-out of F-Secure Total In Q4, three new F-Secure Total partner signings and nine agreements with existing partners. Among others, two Nordic Communicati
Slide 4: Change negotiations
Change negotiations Announced on 25 October 2023, completed 12 December 2023. * Concluded group-wide statutory change negotiations to restructure the global operating model and personnel to align with the strategic priorities and financial targets of F-Secure. - Asaresult of the change negotiations
Slide 5: Progress of Total conversion
Progress of Total conversion Total conversion within Partner Business • • • • 5
Slide 6: 2024: Focus on Partner Business
2024: Focus on Partner Business TOP PRIORITIES STRATEGIC INITIATIVES Accelerate profitable growth to fund further growth Total conversion, boosted by fast FS–Lookout Life investments product convergence Trusted Companion CX, Scam protection in digital Deliver on #1 Security Experience vision moments
Slide 7: Financials
Financials
Slide 8: Revenue development by region and channel
• • • Revenue growth continued 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 and Hong Kong. • Revenue decreased in Poland following continued strong headwinds. Revenue decreas
Slide 9: Revenue and deferred revenue breakdown
30.1 25.6 28.5 23.4 22.8 20.9 21.2 5.8 6.6 6.8 6.4 6.7 3.8 6.0 3.6 24.5 6.1 22.5 22.0 6.0 1.1 1.2 5.8 19.8 5.7 0.4 17.3 17.4 16.9 16.8 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Current Non-current F-Secure revenue Lookout revenue F-Secure revenue Lookout revenue * Deferred revenue breakdown is indicative, figur
Slide 10: Excluding Items Affecting Comparability (IAC) and depreciation and amortization
• • • * Excluding Items Affecting Comparability (IAC) and depreciation and amortization.
Slide 11: Transitional services agreements rolling with WithSecure and Lookout
Transitional services agreements rolling with WithSecure and Lookout Transitional services agreements (‘TSA’) between F-Secure to-te2023 1012/2023 10-12/2028 and WithSecure incurred in connection with the demerger 40-12/23| 19° A 5 40-12/2022 | 7-12/2022 from WithSecure EURM ) | WithSecure Lookout t
Slide 12: 40.0% 90.0% 35.0% 31.8 30.0% 30.3 80.0% 12.8 30 27.0 11.7 25.9 25.3 12
45 20 40.0% 40 90.0% 18 35.0% 16 35 31.8 30.0% 30.3 80.0% 14 12.8 30 27.0 11.7 25.9 25.3 12 25.0% 70.0% 10.2 25 9.8 9.9 10 20.0% 20 60.0% 8 15.0% 15 50.0% 6 10 10.0% 4 40.0% 5.0% 5 2 0 30.0% 0 0.0% • • • • • 12
Slide 13: • 20.0 160.0% 18.0 16.0 110.0% • 14.0 13.2 12.0 60.0% 10.3 0.7 10.0
• 20.0 160.0% 18.0 16.0 110.0% • 14.0 13.2 12.0 60.0% 10.3 10.7 10.0 • 8.0 7.3 10.0% 6.0 6.0 4.0 3.6 -40.0% • 2.0 0.0 -90.0% 13
Slide 14: Proposed dividend of EUR 0.07 per share
Proposed dividend of EUR 0.07 per share Board of Directors’ proposal for the distribution of profit Dividend policy: payment of around or above 50% of net profit as dividend on an annual basis. * Distributable funds: EUR 15.9 million. * Dividend proposal: EUR 0.07 per share, to be paid in two instal
Slide 15: Leverage target: 2.5x
39.6 % 325 5.0 32.4 % 3.5 26.5 % 3.6 3.6 4.0 275 Leverage target: 2.5x 3.0 11.7 % 12.0 % 9.3 % 225 191.3 2.0 187.7 177.4 175 1.0 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 -0.4 -0.6 0.0 125 -1.0 75 -2.0 0.17 0.15 25 0.13 -3.0 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 0.09 -25 -4.0 0.07 0.07 -19.3 -24.2 Net debt/Net ca
Slide 16: 8.4 5.9 32.0 17.1 48.7 50.0 39.4 40.0
8.4 5.9 32.0 17.1 48.7 50.0 39.4 40.0 16
Slide 17: Outlook for 2024
Outlook for 2024 Growth F-Secure estimates that revenue for 2024 Profitability The group's adjusted EBITA is expected to be in the range of EUR 48-54 million. fF F-secure. will be in the range of EUR 142-152 million. ls Background for the outlook + F-Secure expects the consumer cyber security market
Slide 18: 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 After initial growth Dividend yield EBITDA ratio below Targets 2026 Revenue of more than investments, adjusted around or above 50% 2.5
Slide 19: Q&A
[\2 F-Secure. Q&A