F-secure Oyj · OMXHEX:FSECURE
F-secure Oyj — Investor Presentation (September 2023)
24 slides from F-secure Oyj's investor presentation, Sep 1, 2023
Slide 1: F-Secure Investor Presentation July-September 2023
t: F-Secure. F-Secure Corporation Investor Presentation July-September 2023
Slide 2: 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 1-Sep-23 Restricted 2
Slide 3: F-Secure portfolio
F-Secure portfolio Securing every digital moment. Simplified. Safe browsing & Ga Qe Family rules Banking protection iv) Malware protection ae “—~ Identity protection Privacy protection QB Smart home security Protection on the go Y Cyber Help A Strong passwords ? fF F-secure. 1Sep-23 Restricted
Slide 4: Revenue by channel and region
21% Partner channel Direct channel 79% 5% 15% 36% Nordic countries Rest of Europe North America Rest of World 44% 4
Slide 5: Use cases for premium security — peace of mind
Use cases for premium security — peace of mind Hi, Anna-Maria Why premium security solution vs.free All the protection you need in one package security Gg Covers all personal devices within all Internet security Everything is okay platforms Protection against viruses and No TASKS ransomware, safe on
Slide 6: Towards our strategic targets
Towards our strategic targets 2022 Independence Establish F-Secure as an agile and empowered organization Demerger completed June 30, 2022 Ramp-up of own business operations and building up capabilities as an independent company fF F-secure. 2023 Total Growth through Total and replacing stand-alone
Slide 7: H1 2023
H12023
Slide 8: Q2: Completed acquisition and strategy execution
Q2: Completed acquisition and strategy execution The business continues to operate amid adverse conditions Revenue growth of 11.1%, organic growth 2.2% — challenging market reflected in revenue, especially in oureCommerce business Acquisition of Lookout consumer security business - a significant ste
Slide 9: Q2/2023: Cornerstones of our strategy developing well
Q2/2023: Cornerstones of our strategy developing well Strategic focus: Progress in Q2: fF F-secure. Increase average revenue per user (ARPU) Accelerate the roll-out of F-Secure Total Signed up 3 new partners for F-Secure Total 5 existing partners signed up for F- Secure Total upgrade 12 new Total la
Slide 10: Focus areas supporting growth
Focus areas supporting growth Brilliantly simple security experiences Expanding market reach 1 All-in-one security suite 4 New verticals "Covers all key digital moments * Banking, insurance, fintech and payments, and retail Network security 2. Protects households and people 5 Geographical expansion
Slide 11: Acquisition of Lookout consumer business
Acquisition of Lookout consumer business Significant step in expanding F-Secure business in the US Acquisition of the mobile consumer security business unit from Lookout Inc.: * Enterprise value USD 223 million (approx. EUR 202 million), financed with debt + Increased presence in the US cybersecurit
Slide 12: Short-term performance drivers impacting our business
Short-term performance drivers impacting our business Growth drivers Other drivers fF F-secure. Newand existing partners deploying Total - revenue growth slightly lower than expected due to some delayed launches - and cross-sell opportunities to Lookout Life partners Solid pipeline of major opportun
Slide 13: Financials
Financials
Slide 14: Q2: Revenue up by 11.1%, organic growth 2.2%
Q2: Revenue up by 11.1%, organic growth 2.2% Currency neutral organic growth 2.6% Revenue by geography EURm = Currency | +11.1% | Change % pack 30.5 growth % ete +h2.1% Q2 2022 Q2 2023 @ Nordic countries fF F-secure. @ Rest of Europe @ North America Rest of world « — Figures of the acquired business
Slide 15: Deferred revenue: F-Secure and Lookout
24.5 23.4 20.6 20.9 21.2 22.5 19.8 22.1 22.0 6.4 21.7 3.3 3.6 3.8 3.4 6.0 5.8 5.8 17.3 16.4 17.3 17.4 16.9 5.7 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 Q1/2023
Slide 16: * Excluding Items Affecting Comparability (IAC) and depreciation and amortization.
• • • * Excluding Items Affecting Comparability (IAC) and depreciation and amortization.
Slide 17: Transitional services agreements support independency
Transitional services agreements support independency * Transitional services agreements (“TSA”) between F- 46/2023 4-6/2023 4-6/2023 Secure and WithSecure incurred in connection with EURm 4612023 withsecure Lookout total T-12/2022 the demerger from WithSecure fetal TSA TSA TSA pe + These TSA costs
Slide 18: 45.0% 90.0% 40.0% 35.0% 27.0 80.0% 24.9 .7 25.9 25.3 14 30.0% 25 12
40 20 45.0% 90.0% 18 40.0% 35 16 35.0% 30 27.0 80.0% 24.9 25.7 25.9 25.3 14 30.0% 25 12 11.4 70.0% 10.1 10.2 9.8 9.9 25.0% 20 10 60.0% 20.0% 15 8 15.0% 50.0% 6 10 4 10.0% 5 40.0% 2 5.0% 0 30.0% 0 0.0% • • • • • 18
Slide 19: Purchase price allocation (PPA)
Purchase price allocation (PPA) PPA amortizations of EUR 0.7 million related to the acquisition Provisional fair values of acquired identifiable assets at the date of acquisition: EUR million Years Fairvalue Amortization Technology-related intangibles 15 83.0 Customer-related intangibles (Partner bu
Slide 20: Balance sheet overview
Balance sheet overview Assets at 30.6.2023 Equity and liabilities at 30.6.2023 Ui 270.4 Unie 270.4 + Equity ratio was 9.3% (18.8%) as a result of the Lookout consumer business acquisition * Netdebt was EUR 191.3 million (net cash of EUR 1.8 million) 127.5 acs . Intangible assets mEquity + New facili
Slide 21: 3.5 2.7 8.1 10.9 24.5 24.1 19.5 19.9
3.5 2.7 8.1 10.9 24.5 24.1 19.5 19.9 21
Slide 22: Outlook 2023 (updated June 1, 2023)
Outlook 2023 (updated June 1, 2023) Growth: In 2023, F-Secure expects revenue to exceed EUR 134 million. Profitability: The group's adjusted EBITA is expected to exceed EUR 45 million. The adjusted EBITA margin is estimated to temporarily decrease in 2023 due to acquisition related additional OPEX i
Slide 23: Medium-term financial targets (updated April 26, 2023)
Medium-term financial targets (updated April 26, 2023) By 2026 Growth: Total revenue of more than EUR 200 million by 2026 Profitability (unchanged): After initial growth investments, adjusted EBITA margin of above 42% Dividend Yield (unchanged): Around or above 50% of net profit on an annual basis.
Slide 24: F-Secure
(: F-Secure