BUSINESS IN STRATEGIC GROWTH AREAS PERFORMED WELL

CORPORATE SECURITY UP BY 48%

F-Secure Q4 / 2018

Key takeaways from Q4

Key figures

Business updates

Outlook

Financials

AGENDA

2

▪ In corporate security, progress was made with our strategic growth businesses

▪ Very strong progress with MDR solutions with a large amount of deals closed in several countries

▪ Integration of MWR InfoSecurity proceeding well, consulting business is performing well

▪ Successful launch of the new EDR solution with first deals signed in eight countries, well-received by partners and customers alike

▪ Consumer security continued stable progress, as expected

▪ Adjusted EBITDA at the higher end of our expectations

3

KEY TAKEAWAYS FROM Q4

KEY FIGURESEUR m 10–12/2018 10–12/2017 Change 1–12/2018 1–12/2017 Change

Revenue 53.7 44.4 21 % 190.7 169.8 12 %

of which corporate security 29.8 20.1 48 % 95.9 72.2 33 %

of which consumer security 24.0 24.3 -1 % 94.9 97.5 -3 %

Adjusted EBITDA1) 4.9 5.4 -11 % 17.4 18.2 -4 %

% of revenue 9.0 % 12.2 % 9.1 % 10.7 %

M & A expenses -0.3 -3.6 -0.4

EBITDA 4.5 5.4 -16 % 13.8 17.8 -22 %

Depreciation & amortization -2.0 -1.6 -6.8 -5.9

PPA amortization -1.2 -0.1 -2.5 -0.4

EBIT 1.4 3.7 -62 % 4.5 11.5 -61 %

Earnings per share (EUR) 0.00 0.02 -112 % 0.01 0.07 -92 %

Deferred revenue 72.9 65.7 11 %

Cash and financial assets at fair value

through P&L27.9 90.2 -69 %

Personnel, end of period 1,666 1,104 51 %

1)Adjustments are material items outside normal course of business associated with acquisitions,

integration, gains or losses from sales of businesses, and other items affecting comparability.4

CORPORATE SECURITY DRIVING GROWTH

5

0

5

10

15

20

25

30

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

9%

M€

2%

14%

Growth-%

Q117

58%

5%

22%

2%

10%

Q217

11%

Q417Q317 Q318

16%

-3%

6%5%

16%

-1%-2%

Q118

8%

-5%

0%

Q218

-2%

Q418

23%

48%

12%

6%

Revenue from corporate security

Revenue from consumer security

Corporate growth (YoY)

Consumer growth (YoY)

Total growth (YoY)

* MWR InfoSecurity acquired on 2 July 2018

▪ Corporate security revenue is our largest business (55% in Q4/2018), and grew by 48% in Q4/2018

▪ The majority of our corporate security order intake comes from new products and solutions addressing growth markets

▪ The market for detection and response solutions is growing the fastest

ADJUSTED EBITDA AT THE HIGHER END OF EXPECTATIONS

Adjustments are material items outside normal course of business associated with acquisitions, integration, gains or losses from sales of businesses and other items affecting comparability.

6

M€ % of revenue

1,52,1

4,23,7

2,3

0,5 0,4

1,4

1,3

1,4

1,6

1,6

1,5

1,5 1,8

2,0

0,1

1,1

1,20,4

0,6

2,7

7

14

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

0

1

2

3

4

5

6

7

8

9

10

0,3

0,1

4,9

0,1

Q418

9

Q417Q117

9

0,1

Q317

0,1

Q118

12

0,1

6

Q218

12

Q318

9

2,9

4,0

5,8

5,4

3,8

2,7

6,0

Q217

Adjusted EBITDA

Depreciation & Amortization

M&A costs

PPA Amortization

Reported EBIT

Adjusted EBITDA, % of revenue

▪ F-Secure continues to focus on growth, and is investing in product development as well as sales and marketing, and cyber security consulting expansion

▪ We have managed our operating expenses well

CORPORATE SECURITY REVENUE GREW BY +48% IN Q4

▪ MDR order intake in strong growth, increased significantly from the previous quarter

▪ A large number of deals in several countries, in several industry verticals, including finance and defense

▪ Customer satisfaction and renewal rates very high

▪ Endpoint security at previous year’s level▪ Renewals at a high level, new customer acquisition

slightly improved, but was lower than during previous year

▪ Customers are supplementing their EPP solutions with new EDR functionalities

▪ F-Secure’s new EDR solution launched in November, first sales in eight countries, well-received by partners and customers alike▪ Unique “Elevate to F-Secure” feature appreciated

CORPORATE SECURITY PRODUCTS

7

F-SecurePartner

1. DETECTEDANOMALY

A potential targeted attack was detected but it cannot

be confirmed by the F-Secure Partner

2. ELEVATED TO F-SECURE

The Partner choose “Elevate to F Secure” to

request F-Secure’s assistance

F-Secure’s experts respond 24/7 to the Elevate to F-Secure requests by analyzing the threat and providing

actionable advice on attack containment and remediation

3. RESOLVED WITH EXPERT’S GUIDANCE

Actionable response guidance from cyber

security experts helps to respond fast

F-Secure EDR’s unique “Elevate to F-Secure” functionality

TESTIMONIALS OF OUR COMPETITIVENESS

8

An accounting company supplemented their existing

EPP subscription with our MDR solution.

A large financial institution who had been our consulting customer in

the past, added our MDR solution.

A very demanding defense contractor expanded their

protection with sophisticated detection and response

capabilities (MDR)

WINNING MDR DEALS THROUGH CONSULTING

EXPANDING CROSS-SELL OPPORTUNITIES

WINNING MOST DEMANDING CUSTOMERS

INDUSTRY-LEADING RESEARCH AND THREAT VISIBILITY

AUTONOMOUS SELF-LEARNING BIG DATA PLATFORM

BROAD CONTEXT DETECTION ®F-Secure Labs Forensics

Incident responseThreat Hunting

Targeted Attack Simulation

Endpoint data is essential

Big Data and AI platform Actionable insights and

continuous response

Corrective actions

9

CORPORATE SECURITY REVENUE GREW BY +48% IN Q4

▪ Order intake in strong growth driven by the increased contribution from MWR InfoSecurity

▪ Continued strong demand in the market, and successful recruitment, F-Secure particularly strong in the finance industry serving several of the largest banks in the world

▪ Consultancy business in the UK bounced back to an all-time high level, the impact of integration activities started to wear off

▪ In the US, Singapore and South Africa consultancy business in good growth

▪ In the Nordics, order intake lower than during the previous year, tough comparison period including large deal

CYBER SECURITY CONSULTING

10

CAPABILITY

250+Technical consultants

CLIENTS

250+Clients

Our global presence in cyber security consulting is a real strength when serving international customers

ADDRESSING SEVERAL GROWTH MARKETS

11

PREDICT PREVENT DETECT & RESPOND

Cyber security consulting

Vulnerabilitymanagement

Anti-phishingbehavioral

management

Endpointprotection

Endpoint detection and response

Managed Detection & Response

Managed ThreatHunting

Radar PhishdProtection Service

for BusinessRapid Detection

& Response (EDR)Countercept (MDR)*

2016 2018 2018 2016 2018

* Including RDS

CONSUMER SECURITY REVENUE AT THE PREVIOUS YEAR’S LEVEL IN Q4

▪ Order intake at previous year’s level

▪ Signed first F-Secure SENSE SDK deals, and negotiations on-going with several operators and leading router manufacturers

▪ Signed new or extended operator contracts in Europe, United States and Latin America

▪ Continued to successfully work with partners globally to increase product activation rates

OPERATOR CHANNEL

12

In 2018 we continued to win new accounts

CONSUMER SECURITY REVENUE AT THE PREVIOUS YEAR’S LEVEL IN Q4

▪ Order intake at previous year’s level

▪ Renewals at a good level

▪ Continued focus on selling broad consumer portfolio to increase average revenue per customer (ARPU)

DIRECT SALES

13

AARPU* uplift with F-Secure TOTAL

AARPU = Annualized Average Revenue per User

OUTLOOK FOR 2019

▪ Revenue from corporate security is expected to

grow by over 30% compared to 2018

▪ Revenue from consumer security is expected to

stay approximately at the same level as in 2018

▪ Adjusted EBITDA is expected to be above EUR 15

million excluding the impact of IFRS 16

14

OUTLOOK FOR 2018-2021 UNCHANGED

▪ The demand for corporate cyber security products and services is expected to grow strongly. F-Secure aims to grow faster than the market, with revenue from corporate security expected to grow above 15% annually during our strategy period 2018-2021.

▪ Driven by the anticipated revenue growth and scalable business model, the company’s profitability is expected to improve significantly in the long-term. The board and the management continuously seek to balance growth investments and profitability to optimize long-term value creation for the shareholders.

15

16

WE ARE ON RIGHT TRACK

FINANCIALSQ4 2018

All income statement figures refer to continuing operations, and figures in brackets refer to the corresponding period in the previous year, unless otherwise stated.

17

REVENUE

October-December

▪ Revenue increased by 21% y-o-y

▪ Total quarterly revenue 53.7m (Q417: 44.4m)

18

15

0

10

5

50

20

25

30

35

40

45

55

Q118Q117 Q217

53.7

Q317 Q218Q417 Q318 Q4/18

40.943.143.3

41.243.4

44.4

50.5

+21%

Revenue

EURm

REVENUE SPLIT October-December

▪ Revenue from corporate security increased by 48% totalling EUR 29.8 million (20.1m)

▪ Revenue from consumer security was at the previous year’s level at EUR 24.0 million (24.3m)

▪ Corporate security represented 55% (45%) and consumer security 45% (55%) of total revenue

19

0

5

10

25

15

20

30

Q117 Q318Q118

29.8

24.724.2

Q417 Q218Q217 Q317

16.6

18.6

16.9

24.3

20.1

24.3

26.7

19.4

23.423.8

20.0

23.8

Q4/18

24.0

+48%

Corporate Total Consumer Total

EURm

PROFITABILITY

October-December

▪ Adjusted EBITDA 4.9m, 9.0% of revenue (5.4m, 12.2%), excluding EUR 0.3 million of costs related to the acquisition of MWR InfoSecurity

▪ Earnings per share (EPS) EUR 0.00 (EUR 0.02)

20

EURm

1,52,1

4,23,7

2,3

0,5 0,4

1,4

1,3

1,4

1,6

1,6

1,5

1,5 1,8

2,0

0,1

1,1

1,20,4

0,6

2,7 0,3

7

14

9 9

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

2,0

3,0

6,0

7,0

4,0

8,0

10,0

0,0

5,0

9,0

1,0

12

0,1

0,1

5,4

0,1

Q218 Q418Q318Q317

3.8

0,1

Q217

9

Q117

0,1

6,0

2,9

12

Q417 Q118

6

5.8

4,0

2,7

4,9

Adjusted EBITDA

Reported EBIT

M&A costs

PPA Amortization

Depreciation & Amortization

Adjusted EBITDA, % of revenue

OPERATING EXPENSESEURm

October-December

▪ Operating expenses 40.4m (33.6m), +20% y-o-y, due to the acquisition of MWR InfoSecurity

▪ Expenses for the period include EUR 1.5 million of acquisition and integration related costs

21

0

2

4

6

8

10

12

14

16

18

20

22

24

26

28

30

32

34

36

38

40

42

8.5

19.4

Q317

3.3

40,4

8.4

21.9

9.7

Q417

34.4

9.6

8.2

21.0

35.9 3.8

Q118

3.4

23.9

33.63.1

23.6

Q318 Q418

1.5

34.4

31.2

8.2

3.2

3.83.8

22.0

8.6

Q117

3.9

Q218

8.7

23.3

Q217

26.1

3.3

35.5

38.7

+20%

Sales & MarketingAcquisition related

Administration

Research & Development

DEFERRED REVENUE

31 December 2018

▪ Deferred revenue increased by 11% y-o-y to EUR 72.9m (EUR 65.7m), driven by the increased contribution from the acquired MWR InfoSecurity, and increasing order intake from corporate security products and services with long-term contracts

22

60

0

40

10

75

20

70

30

50

Q218

50.5

18.6

48.3

Q417

20.013.8

Q117

41.7

18.7

Q217

41.9

18.7

Q317

17.412.4

Q118

46.7

Q318

54.8

Q418

47.4

17.6

55.3

+11%

Deferred revenue, current Deferred revenue, non-current

EURm

October-December

▪ Revenue increased in all regions

▪ In Rest of Europe, North America and in Other regions increases were driven by the increased contribution from MWR InfoSecurity

REGIONAL REVENUE

23

0

5

10

15

20

25

4.4

18.4

24.1

17.4

Nordic

18.0

6.8

Rest of Europe

4.8

North America

4.2

Other Regions

+3%

+31%

+9%

+62%

Q4/17 Q4/18

EURm

BALANCE SHEET CHANGE DUE TO THE ACQUISITION

October-December

▪ The main driver behind the change in cash position was the acquisition of MWR InfoSecurity

▪ Cash flow from operating activities before financial items and taxes was 10.5m (13.1m).

▪ Cash flow decreased due to decline in EBIT and a change in net working capital. Acquisition and integration related costs impacted cash flow negatively in third quarter.

▪ Cash flow from operations was EUR 8.3 million (11.4m).

▪ Gearing ratio was 13.9% (127.8% negative)

▪ F-Secure’s financial position remained solid. Short term investments were sold in June 2018 as F-Secure prepared to finance the acquisition of MWR InfoSecurity in the beginning of third quarter.

94,3

24

32,326,1 27,3

36,3 34,6

64,0

54,6 53,8

53,9 53,9

100

60

0

70

50

10

20

30

40

80

90

Q117

79,8

Q317

27,8

Q217 Q218Q417 Q118 Q418Q318

96,3

80,7 81,1

90,2 88,5

21,5

EURm

Short term investments

Cash and bank

* MWR InfoSecurityacquired on 2 July 2018

NUMBER OF PERSONNELOctober-December

▪ At the end of the quarter, F-Secure had 1,666 employees (1,104)

▪ In Q3/18, the increase in personnel from the acquisition of MWR InfoSecurity was 391

25

1 055 1 091 1 060

1 201

1 636 1 666

400

800

0

200

600

1 000

1 200

1 400

1 600

1 800

Q117 Q417 Q118 Q318Q217 Q317 Q218

1 104 1 145

Q418

+51%

Headcount