Slide 1: F-Secure as an investment
F-Secure as an investment Timo Laaksonen, President & CEO Sari Somerkallio, CFO Investor Presentation August 2024
Slide 2: F-Secure in 2023
F-Secure in 2023 Revenue by channel, %* Revenue by geography, %* 2
Slide 3: 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 3
Slide 4: What are the problems we solve?
What are the problems we solve? Consumers Partners How do we drive adoption? Can we create strategic value? Complex Confined Impersonal Tactical service Low corporate impact Poor time to value 4
Slide 5: Our #1 security experience vision
Our #1 security experience vision Consumer Partner Trusted companion Security business as-a-service Holistic Contextual & Business Flexibility Protection Personalized Outcomes Empowered Engagement 5
Slide 6: Trusted companion
Internet Privacy Browsing & Privacy Protection Security Phishing Protection Protection Trusted Device companion Identity Monitoring Protection & Breach alerts Identity Protection Family Password Rules Vault Messaging Breach Scam Protection Report Protection Home Smart Home Shopping Protection Protec
Slide 7: Comprehensive portfolio across platforms, devices & networks
Comprehensive portfolio across platforms, devices & networks All-in-one security and privacy app Embedded security SDK and API based security and privacy protection F-Secure Total capabilities AT&T Active Armor Fintech Carrier apps with mobile app Superapp router management Device Security Scam Prot
Slide 8: Our target partner channels
Our target partner channels Go-to-market and value proposition focus Focus growth areas Additional growth areas Communication Fintech & Router & WiFi Channel Tier 1s Insurance Banks Service Providers Superapps providers Value Differentiation vs. Increasing revenue & proposition competitors with uniq
Slide 9: Monthly, per user based subscription business model
Monthly, per user based subscription business model Security Suite Embedded Security F-Secure Total – F-Secure security assets embedded in partner Offering All-in-one security and privacy app applications, routers and networks as SDKs and/or APIs Tier 1s Tier 2+ F-Secure services and Low Medium to L
Slide 10: Expanding market reach
Expanding market reach 1 Billion+ Partner Business Addressable Consumers by 2026 Communication Service Providers Tier 1 Tier 2 + New Verticals Fintech and Banking and Insurtech Insurance Direct Business eCom AppStores 10
Slide 11: 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 Growth through Total and 2x Customer base with service Double-digit revenue growth Leader among Tier 1 partners replacing stand-alone products that talks to people
Slide 12: 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)* 22-26E CAGR ➢ Increasing digitalization affects 10.3 6.8% consumer behavior 1.6 9.5% 7.9 ➢ Consumers’ increasing willingness 1.1 2.4 3.8% to pay is increasing 2.0 ➢ Cyb
Slide 13: 5.1 3.5 22.9 10.9 24.1 24.2 19.9 20.8
5.1 3.5 22.9 10.9 24.1 24.2 19.9 20.8 13
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 After initial growth Dividend yield EBITDA ratio below Financial targets 2026 Revenue of more than investments, adjusted around or abo
Slide 15: Delivering sustainable security experiences
Delivering sustainable security experiences Our ESG Commitments 2024 sustainability priorities 1 Legislative compliance 2 Transparency and value to stakeholders 3 Talent development, retention and acquisition 4 DEI and Fellow wellbeing 15
Slide 16: Focus areas in 2024
Focus areas in 2024 A leading security experience Accelerate profitable Deliver on #1 Security Stronger focus on Partner Optimize Direct Business growth to fund further Experience vision on Business and Tier 1 revenue and profit growth investments product and service offering partnerships as a new f
Slide 17: Financial calendar
iF F-Secure. Financial calendar Interim Report January-September: Thursday 24 October 2024 Save the date - Investor Day: Wednesday 20 November 2024
Slide 18: ¢: F-Secure
¢: F-Secure
Slide 19: Appendix H1/2024: Half-Year Financial Report
Appendix H1/2024: Half-Year Financial Report 1 January–30 June 2024
Slide 20: Q2/2024: Taking strides in product, service and technology development
Q2/2024: Taking strides in product, service and technology development Revenue growth 19.6%, driven by Lookout Life acquisition - organic growth remained modest 1.9% Partner Channel performance mixed; subscriber numbers and average revenue per user (ARPU) increased, but challenges continued with som
Slide 21: Q2/2024: Partner Business focus continued
Q2/2024: Partner Business focus continued Strategic focus: Progress: fF F-secure. Increase average revenue per user (ARPU) Accelerate the roll-out of F-Secure Total New Total release, a major milestone in terms of design, feature improvements and launch of entirely new features Healthy growth in Tot
Slide 22: Acquisition of Lookout consumer business
Acquisition of Lookout consumer business Integration completed and technology independence achieved One year since the acquisition of Lookout Life, Lookout consumer security business: + Integration completed at the end of 2023 and technology independence from Lookout fully achieved at the end of May
Slide 23: Trusted companion
Internet Privacy Browsing & Privacy Protection Security Phishing Protection Protection Trusted Device companion Identity Monitoring Protection & Breach alerts Identity Protection Family Password Rules Vault Messaging Breach Scam Protection Report Protection Home Smart Home Shopping Protection Protec
Slide 24: Scam Protection – highlight of Total release in June
Scam Protection – highlight of Total release in June NEW! Shopping Protection Mobile Desktop Shopping Protection works in the browser showing trust rating of online stores while browsing. Available on all platforms, now also in native mobile browsers. NEW! Banking Protection Mobile Desktop Banking P
Slide 25: New protection capabilities driving engagement
New protection capabilities driving engagement Privacy Advisor for Android Shopping Protection for Native Mobile Browsers ® zalando & ® zalando Rg =| etsituotteita Ftsi tuotteita Your device is protected fF F-secure Safe Browsing Extension Close % e@ This shopping website is Your digital world is se
Slide 26: Financials
[\2 F-Secure. Financials Sari Somerkallio, CFO F-Secure changed the calculation method for gross margin in its income statement as of 1 January 2024. Comparative figures for 2023 are also revised.
Slide 27: Revenue up by 19.6%, organic growth 1.9%
Revenue up by 19.6%, organic growth 1.9% Currency neutral organic growth 2.3% Revenue by geography EURM « — Partner Channel: Revenue increased by 19.8% to EUR 29.4 million (EUR 24.5 million). Organic revenue Currency Change % neutral% growth 2.4%. . Subscriber numbers and average revenue per user (A
Slide 28: Current Non-current
27.9 25.6 25.9 23.4 22.8 Current Non-current
Slide 29: Different payment models in channels
Different payment models in channels Key dynamics of revenue recognition Share of annual revenue 20-30% a b RS fF F-secure. Payment Channel Deferred revenue (recognized over contract period) Pre-payment Direct Business & Retail” Ys @ Direct Business ~1 year Retail typically 1-3 years Compensation fo
Slide 30: Operating expenses in Q2/2024
Operating expenses in Q2/2024 OPEX* development in Q2 EURM C0.4%_) OPEX, i % of revenue 18.2 18.1 10% (9%) 16% (20%) 24% (30%) Q2 2023 Q2 2024 ™ Sales and marketing ™ Research and development ® Administration fF F-Secure. * Excluding Items Affecting Comparability (IAC) and depreciation and amortizat
Slide 31: Continued transitional services agreements with Lookout
Continued transitional services agreements with Lookout Transitional services agreements (‘TSA’) between F-Secure and WithSecure terminated at the end of 2023. TSAs entered between F-Secure and Lookout consumer security business started in June 2023. TSAs in R&D and cost of revenue are planned to la
Slide 32: 45.0 40.0% 40.0 90.0% 35.0% 35.0 30.0% 80.0% 30.0 12 25.0% 70.0% 25.0 10
45.0 20 40.0% 40.0 90.0% 18 35.0% 16 35.0 30.0% 80.0% 14 30.0 12 25.0% 70.0% 25.0 10 20.0% 20.0 60.0% 8 15.0% 15.0 50.0% 6 10.0 10.0% 4 40.0% 5.0% 5.0 2 0.0 30.0% 0 0.0% • • • 32
Slide 33: 5.1 3.5 22.9 10.9 24.1 24.2 19.9 20.8
5.1 3.5 22.9 10.9 24.1 24.2 19.9 20.8 33
Slide 34: 150.0% • 20.0 100.0% 15.0 • 50.0% 10.0 0.0% • 5.0 -50.0% • .0
150.0% • 20.0 100.0% 15.0 • 50.0% 10.0 0.0% • 5.0 -50.0% • 0.0 -100.0% 34
Slide 35: 325.0 3.8 3.6 275.0 3.4 3.2 225.0 3.0 2.8 175.0 2.6 2.4 125.0 2.2
325.0 3.8 3.6 275.0 3.4 3.2 225.0 3.0 2.8 175.0 2.6 2.4 125.0 2.2 2.0 75.0 1.8 1.6 25.0 1.4 1.2 -25.0 1.0 35
Slide 36: Outlook for 2024 (unchanged)
Outlook for 2024 (unchanged) 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. lh Background for the outlook + F-Secure expects the consumer cyber sec
Slide 37: Q&A
[\2 F-Secure. Q&A
Slide 38: ¢: F-Secure
¢: F-Secure