Slide 1: Scam Protection takes off
Scam Protection takes off Interim Report 1 January–30 September 2024 Timo Laaksonen CEO Sari Somerkallio CFO
Slide 2: Q3/2024: Scam Protection takes off
Q3/2024: Scam Protection takes off Revenue growth 3.5%, growth supported by good performance in the Direct Business while Partner Business continued to develop at a similar pace as in the previous quarter. Strong profitability in the third quarter, benefiting from the typically lower cost levels ass
Slide 3: Q3/2024: Partner Business focus continued
Q3/2024: Partner Business focus continued Increase average revenue Developing current offering Expand into new channels per user (ARPU) and new products and partners Strategic focus: Accelerate the roll-out Compelling portfolio expanding market Replicate our proven business model of F-Secure Total c
Slide 4: F-Secure strategy journey
F-Secure strategy journey To become the #1 security experience company in the world 2025+ 2024 2023 CSP Leadership Be the undisputed leader among world’s leading Communications 2022 Service Providers Tier 1 ramp-up Total Embedded Security portfolio Total New Tier 1 partnerships Year of Total Lookout
Slide 5: Transforming to a customer centric business model
Transforming to a customer centric business model Strategic Partners Major Partners Commercial Partners Direct Business SEGMENT BUSINESS World’s largest Service Providers Leading regional Service Providers Large volume of popular Service (SP’s) Providers Increase Total adoption among partners’ user
Slide 6: Scam Protection module
Shopping Protection Mobile Desktop Scam Protection module Shopping Protection works in the browser showing trust rating of online stores while browsing. Available on all platforms, now also in native mobile browsers. Banking Protection Mobile Desktop Banking Protection works in the browser showing t
Slide 7: SMS Scam Protection
SMS Scam Protection Supported on both iOS and Android Press release Oct 23, 2024 7
Slide 8: Recent changes in the F-Secure leadership team
Recent changes in the F-Secure leadership team Bruno Rodriguez Nina Lehto Kaisa Tikka-Mustonen Chief Revenue Officer Senior Vice President, Services Chief People Officer 8
Slide 9: Financials
Financials Sari Somerkallio, CFO
Slide 10: Revenue up by 3.5%, organic growth 1.9%
Revenue up by 3.5%, organic growth 1.9% Currency neutral organic growth 3.6% Revenue by geography • Partner Channel: Revenue increased by 3.0% to EUR 29.3 million EURm (EUR 28.5 million). Organic revenue growth 2.3%. Currency neutral +3.5% Change % % • Subscriber numbers and average revenue per user
Slide 11: Q3 2024: Group revenue up by 3.5%
Q3 2024: Group revenue up by 3.5% Growth supported by Direct Business while Partner Business on a similar pace as in the previous quarter Partner channel revenue Direct channel revenue Deferred revenue* EURm EURm EURm -2.5% +3.0% 27.9 30.1 29.4 29.4 29.3 25.6 25.9 28.5 25.2 22.8 7.4 6.6 5.8 6.4 6.5
Slide 12: Operating expenses in Q3/2024
Operating expenses in Q3/2024 OPEX* development in Q3 EURm • Operating expenses decreased – the -10.7% OPEX, lower cost structure typical for the third % of revenue quarter was reflected in the operating 18.6 expenses. 16.6 • Sales and marketing expenses 3.3 9% (9%) decreased following lower marketi
Slide 13: Gross margin and adjusted EBITA development
Gross margin and adjusted EBITA development Q3 profitability strong, benefiting from the typically lower cost levels associated with this period Gross margin Adjusted EBITA and adjusted EBITA margin EURm EURm 45.0 20 45.0% 40.3% 89.4% 89.4% 40.0 85.7% 85.9% 86.4% 90.0% 18 40.0% 36.4% 36.1% 34.9% 33.
Slide 14: January−September 2024: Revenue +16.9%, organic growth +2.4%
January−September 2024: Revenue +16.9%, organic growth +2.4% Revenue by geography Revenue by channel Adjusted EBITA EURm EURm EURm +16.9% +16.9% 109.2 109.2 +23.1% 93.5 93.5 7.7 +36.1% 40.5 21.0 37.1% 32.9 5.7 +14.2% 35.2% 34.1 +59.2%* 18.4 21.4 14.6 12.8 -1.0%* 36.4 36.1 88.2 +17.5% 13.2 75.1 9.9 +
Slide 15: Year-to-date cash conversion stronger than previous year
Year-to-date cash conversion stronger than previous year Operating cash flow and cash conversion (QTD) 141.2% 150.0% 20.0 124.5% • Third quarter cash conversion rate was 108.1% 16.8 40.5% (66.1%), mirroring the strong 100.0% 82.5% 78.8% 63.3% cash conversion in the second quarter 66.1% 15.0 of 2024.
Slide 16: Deleveraging continues
Deleveraging continues Net Debt / Net cash and Leverage1) Equity ratio, % 14.4% 12.0% 12.6% 11.7% 325 3.6 3.8 10.0% 3.5 3.5 3.6 275 3.2 3.4 3.1 3.2 Leverage target: 2.5x 3.0 225 187.7 179.6 2.8 177.4 175 166.6 165.4 2.6 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 2.4 125 2.2 2.0 1.8 Earnings per share, EUR1) 75 1
Slide 17: Outlook for 2024 (specified on October 24, 2024)
Outlook for 2024 (specified on October 24, 2024) Background for the outlook (specified) Growth • F-Secure expects the consumer cyber security market to grow mid-single digit CAGR between F-Secure estimates that revenue for 2024 will be 2024-2026*. The growth may be moderated due to uncertainties we
Slide 18: Financial calendar
Financial calendar F-Secure Investor Day 2024: Wednesday 20 November 2024 at 12:00 EET F-Secure headquarters in Helsinki, Finland Welcome!
Slide 19: Q&A
[\2 F-Secure. Q&A