Slide 1: Interim Report 1 January–30 September 2023
Interim Report 1 January–30 September 2023
Slide 2: Q3: Acquisition integration and strategy execution
Q3: Acquisition integration and strategy execution Performance still burdened by low consumer confidence Revenue growth of 25.8%, organic growth 0.3% — Direct Business organic growth decline continued whereas Partner Business grew marginally Strategy execution continued: new Total sign-ups and launc
Slide 3: F-Secure initiates change negotiations
F-Secure initiates change negotiations Announced on 25 October 2023 + F-Secure andits subsidiaries initiate group-wide statutory change negotiations to restructure its global operating model and personnel to align with the strategic priorities and financial targets of the company. * Concerns the ent
Slide 4: Q3/2023: Cornerstones of our strategy
Q3/2023: Cornerstones of our strategy Increase average revenue per user (ARPU) Strategic focus: Accelerate the roll-out of F-Secure Total Progress ing3:; ° — Signedup 3new partners for F-Secure Total + 3existing partners signed up for F- Secure Total upgrade * In total 6 new Total launches were made
Slide 5: Integration of Lookout consumer business
Integration of Lookout consumer business Integration has been progressing mainly as planned Integration of the mobile consumer security business unit from Lookout Inc. * Transaction completed and integration process ongoing: Figures consolidated with F-Secure started from 1 June 2023. No attrition a
Slide 6: 2023 2024 2025 2026
2023 2024 2025 2026 • • • • • • • • • • • → •
Slide 7: Financials
Financials
Slide 8: Revenue by region
• • • Revenue increased 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. • Revenue decreased in Poland and Germany, due to weaker business performance during the quarter. • • W
Slide 9: Revenue and deferred revenue
28.5 23.4 22.8 20.9 21.2 19.8 6.4 6.0 24.5 6.1 3.6 3.8 6.7 3.4 22.1 22.5 22.0 6.0 5.8 5.8 16.4 17.3 17.4 16.9 16.8 5.7 Current Non-current F-Secure revenue Lookout revenue F-Secure revenue Lookout revenue * Deferred revenue breakdown is indicative, figures in brackets refer to Q2/2023
Slide 10: Profitability excluding items affecting comparability
• • • • * 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 and WithSecure incurred in connection with the demerger from WithSecure + These TSA costs in cost of revenue are planned to terminate latest by the end of 2023. + Majority o
Slide 12: Cash flow and margins
20 45.0% 40 90.0% 18 40.0% 35 16 30.3 35.0% 30 80.0% 27.0 14 12.8 25.7 25.9 25.3 30.0% 25 12 11.4 70.0% 10.2 9.8 9.9 25.0% 20 10 60.0% 20.0% 8 15 15.0% 50.0% 6 10 10.0% 4 40.0% 5 2 5.0% 0 30.0% 0 0.0% • • • • • 12
Slide 13: Leverage target: 2.5x
39.6 % 325 5.0 32.4 % 26.5 % 3.5 3.6 4.0 275 Leverage target: 2.5x 3.0 9.3 % 11.7 % 225 191.3 187.7 2.0 175 1.0 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 -0.2 -0.6 -0.4 0.0 125 -1.0 75 -2.0 0.05 25 -3.0 0.04 0.04 0.04 0.04 0.04 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 0.03 -25 -4.0 -10.8 -19.3 -24.2 Net debt/Net cash Net
Slide 14: 5.7 4.4 21.1 12.5 36.4 36.8 29.4 29.9
5.7 4.4 21.1 12.5 36.4 36.8 29.4 29.9 14
Slide 15: Outlook for 2023
Outlook for 2023 Updated September 8, 2023 fF F-secure. Growth F-Secure estimates that revenue for 2023 will be in the range of EUR 128- 132 million. Profitability The group's adjusted EBITA is expected to be in the range of EUR 41-45 million The adjusted EBITA margin is estimated to temporarily dec
Slide 16: Q&A
[\2 F-Secure. Q&A