SECOND QUARTER REVENUES INCREASE BY 11% FROM

PREVIOUS YEAR

Interim Report Q2/2016Samu Konttinen, CEO

2

New CEO

Highlights from Q2

Market update

Business update

Outlook

Financials

AGENDA

SAMU KONTTINEN STARTS AS THE NEW CEO

3

The F-Secure Board of Directors has appointed Samu Konttinenas new President and CEO, effective 1 August 2016

Joined F-Secure in 2005 Member of the Leadership Team since 2009 Previous positions held:

o Executive Vice President Corporate Security Businesso Executive Vice President of F-Secure’s Consumer Businesso Executive Vice President of Sales and Marketing

o Board membership:o Ixonos, member of the board since 2011o Mobile Ecosystem Forum, member of the board since 2015

The previous CEO Christian Fredrikson resigned in June to pursue another leadership opportunity outside the Company

April-June (Q2)

Total revenues increased by 11% to EUR 39.3 million;

corporate security increased by 26% to EUR 15.4 million

consumer security increased by 3% to EUR 23.9 million

EBIT (IFRS) was EUR 4.6 million, 12% of revenues (4.0 m; 11%); reflects investments in sales growth and product development

Cash flow from operations was EUR 6.6 million (4.3 m)

Deferred revenues in robust growth (+14%) due to increased new sales

.

4

FINANCIAL HIGHLIGHTSAll figures for continuing operations, except cash flow

January-June (H1)

Total revenues increased by 8% to EUR 77.1 million;

corporate security increased by 26% to EUR 30.0 million

consumer security decreased by 1% to EUR 47.1 million

EBIT (IFRS) was EUR 7.8 million, 10% of revenues (9.0 m; 13%); reflects investments in sales growth and product development

Cash flow from operations was EUR 5.5 million (8.9 m);

KEY FIGURES

Revenues and EBITEur million Eur million

Deferred revenues

5

35,537,2

38,937,8

39,3

4,06,0

5,03,2

4,6

0

5

10

15

20

25

30

35

40

45

Q215 Q315 Q415 Q116 Q216

Revenues EBIT (IFRS)

13,911,1 12,1 11,6 12,3

30,932,5

36,0 38,2 38,8

0

10

20

30

40

50

60

Q215 Q315 Q415 Q116 Q216

Deferred revenue, non-current Deferred revenue, current

KEY FIGURESCostsEur million Eur million

6

94,3

Liquid assets*

22,0 20,922,6 23,5 24,4

6,26,5

6,87,4 6,6

2,8 3,2

4,33,0 3,3

0

5

10

15

20

25

30

35

40

Q215 Q315 Q415 Q116 Q216

Sales & Marketing Reseach & Development Administration

76,3 80,5

94,3 93,0

80,9

35,218,7

0

20

40

60

80

100

120

Q215 Q315 Q415 Q116 Q216

Cash position Dividend/ Other

*Liquid assets include cash and cash equivalents and short term investments in interest rate funds classified as Available-for-sale assets

CORPORATE SECURITY THE LARGEST MARKET AND GROWING

0

20

40

60

80

100

120

2014 2015 2016 2017 2018 2019 2020

IT security services and consulting IT security products Consumer Security

Source: Gartner, May 2016

USD billion

7

10% annually

6% annually

3% annually

Forecast Information Security 2014-2020

10

26

33

27 26

0 03

-5

3

-10

-5

0

5

10

15

20

25

30

35

F-Secure CORPORATE security F-Secure CONSUMER security

8

Q2/15 Q3/15 Q4/15 Q1/16 Q2/16

WE ARE GROWING FASTER THAN THE MARKET

% growth y-o-y

Corporate security market growth 3-16%

Consumer security software market growth 1-3%

Source: Gartner May 2016

F-Secure vs. Market

nSense acquired in June 2015

INVESTMENTS IN GROWTH PRODUCING FIRST RESULTS

9

RESEARCH & DEVELOPMENT

SALES & MARKETING

PROFITABLE GROWTHBY UTILIZING F-SECURE’S SCALABLE BUSINESS MODEL

Short-term: Increased investments Long-term: Increased revenues & profitability

10

PREDICT PREVENT

DETECTRESPOND

END-POINT & NETWORK SECURITY SUITES Device & server security Mobile security Virtual Security Central management As a service or On-premise

VULNERABILITY & PATCH MGMT Vulnerability scanning Vulnerability management Automatic patch management

ATTACK SURFACE ASSESSMENT Threat level assessment Attack surface mapping

SERVICES Professional services Consulting & coaching For all areas of the security strategy

RAPID DETECTION SERVICE (NEW!)Incident detection & response service platform 24/7 Security monitoring & alerting Incident response

WE ARE EXPANDING OUR PRODUCT & SERVICE OFFERING

SCALABILITY THROUGH STRONG GO-TO-MARKET CHANNELS

100 000 COMPANIESCUSTOMERS:

GO-TO-MARKET:

OFFERING: CORPORATE SECURITY CONSUMER SECURITY

3500+ IT RESELLERS & SERVICE PARTNERS 200+ OPERATOR PARTNERS

ONLINE AND TRADITIONAL RETAILERS

TENS OF MILLIONS OF CONSUMERS

DIRECT SALES

TECHNOLOGY: BEST-IN-CLASS CYBER SECURITY TECHNOLOGY PLATFORM

12

CORPORATE SECURITY IN STRONG ABOVE-MARKET GROWTH

Q2 HIGHLIGHTS

End point protection sales showed strong growth, significantly outpacing the market Especially strong growth in Germany, France and Japan. Good progress in North America and several countries in Europe

Cyber security services in very strong double-digit growth Continued strong demand across different verticals Managed services sales steadily increasing

Sales teams strengthened, new products into the reseller channel 50 new channel sales people to be recruited in 2016 F-Secure Radar introduced to the reseller channel in April

Rapid Detection Service (RDS) launched in May First customer contracts signed Continue to look for new service partners

”First Rapid Detection Service contracts were quickly signed following the launch signaling strong demand in the market.”

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FIRST RAPID DETECTION SERVICE DEALS SIGNED SOON AFTER LAUNCH

SENSORS IN THE NETWORK AND END-POINTS

ANOMALY

ALERT

RAPID DETECTION CENTER

THREAT INTELLIGENCE

BEHAVIOURAL ANALYSIS

BIGDATA

14

10,9 11 11,6 12,213,7

14,6 14,615,4

23,6 23,524,4

23,3 23,624,3

23,223,9

0

5

10

15

20

25

30

Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216

Corporate Total Consumer Total

CORPORATE SECURITY’S SHARE OF TOTAL REVENUES INCREASED TO 39%

15

CONSUMER SECURITY SALES IMPROVED COMPARED TO Q1 IN ALL REGIONS

Q2 HIGHLIGHTS

Operator revenues remained at previous year’s levels Sales improved in all regions, especially in North America

The roll-out of the F-Secure SAFE continued Elisa/Appelsin (Finland), XS4ALL (Netherlands) and Voo (Belgium) New partnerships with NetCologne (Germany), Vinaphone (Vietnam)

Continued healthy growth in direct-to-consumer sales Sales growing faster than the overall market Online sales and sales through Nordic retail partnerships made

particularly good progress Freedome sales increasing steadily

Preparations for F-Secure Sense continued as planned First deliveries expected by the end of the year

“The growth of our direct-to-consumer business was significantly supported by steadily increasing revenues from

Freedome.”

OUTLOOK FOR 2016 IS UNCHANGED

F-Secure anticipates its overall security revenues to grow in 2016 compared to the year before (2015: EUR 148 million).

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EBIT for continuing operations is estimated to be EUR 17-21 million (2015: EUR 20 million).

FINANCIALSQ2 / 2016

This interim report is unaudited and prepared in accordance with IAS 34 standard Interim Financial Reporting and with accounting principles stated in the annual report 2015.

As of the first quarter of 2015, the personal cloud business is reported as discontinued operations. Consequently, comparison figures related to the statement of comprehensive income have been restated. All figures in the following tables are EUR million unless otherwise stated.

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REVENUES

19

EURm

Q2 Revenues increased by 11% y-o-y

Total quarterly revenues 39.3m (Q215: 35.5m)

Organic revenues grew by 7% year-on-year

35,537,2

38,937,8

39,3

4,06,0 5,0

3,24,6

0

5

10

15

20

25

30

35

40

45

Q215 Q315 Q415 Q116 Q216

Revenues EBIT (IFRS)

REVENUE SPLIT

20

Revenues from corporate security increased by 26% totaling EUR 15.4 million (12.2m)

Corporate security represented 39 % (Q215: 34%) of F-Secure’s total revenues

Revenues from consumer security increased by 3% and were EUR 23.9 million (23.3m)

Consumer security represented 61% (Q215: 66%) of F-Secure’s total revenues

EURm

10,9 11 11,6 12,213,7

14,6 14,615,4

23,6 23,524,4

23,3 23,624,3

23,223,9

0

5

10

15

20

25

30

Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216

Corporate Total Consumer Total

PROFITABILITY

21

Q2 Operating Profit

EBIT (IFRS) 4.6m, 12% of revenues (Q215: 4.0m, 11%)

Earnings per share for continuing operations EUR 0.03 (EUR 0.02)

Earnings per share EUR 0.03 (EUR 0.02)

EURm

4,0

6,0

5,0

3,2

4,6

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

0

1

2

3

4

5

6

7

Q215 Q315 Q415 Q116 Q216

EBIT (IFRS) EBIT (IFRS) %

COSTSQ2 costs

Costs 34.3m (Q215: 31.0m), +11% y-o-y

The increase largely reflects costs incurred by corporate security as a result of successful recruiting as well as expenses relating to product development and marketing

In the comparison period, costs relating to cyber security services were only included for the month of June following the acquisition of nSense

Depreciations from past capitalized expenses decreased to 1.3m (Q215: 1.4m)

Capitalized R&D expenses were 0.4m (Q215: 0.5m)

EURm

22

22,0 20,9 22,6 23,5 24,4

6,2 6,56,8

7,4 6,62,8 3,2

4,3 3,0 3,3

0

5

10

15

20

25

30

35

40

Q215 Q315 Q415 Q116 Q216

Sales & Marketing Reseach & Development Administration

DEFERRED REVENUESQ2 Deferred revenues increased by 14% to 51.1m (44.8m)

EURm

23

6,5 7,311,0 11,3 13,9 11,1 12,1 11,6 12,3

33,4 31,032,0 33,5 30,9

32,536,0 38,2 38,8

0

10

20

30

40

50

60

Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216

Deferred revenue, non-current Deferred revenue, current

SOLID CASH POSITION

Q2 Cash flow from operations 6.6m* (Q215: 4.3m)

Cash flow impacted partly by the release of the EUR 4.5 million escrow account relating to the sale of the personal cloud storage business to Synchronoss and the residual tax payment of EUR 6.1 million resulting from the positive net impact of said divestment and the nSenseacquisition in 2015

Market value of liquid assets on 30 June 80.9m (31 Dec 2015: 94.3m)

EURm

* Including discontinued business

24

94,3

76,3 80,594,3 93,0

80,9

35,218,7

0

20

40

60

80

100

120

Q215 Q315 Q415 Q116 Q216

Cash position Dividend/ Other

NUMBER OF PERSONNEL F-Secure stated as its target to recruit over a hundred new employees in 2016 to

support the Company growth

Number of personnel 982 (Q116: 950; Q415: 926) at the end of the quarter

25

493 490 500 510 535

273 279 279 303 308

135 144 147 137139

0

100

200

300

400

500

600

700

800

900

1000

Q215 Q315 Q415 Q116 Q216

Sales & Marketing Reseach & Development Administration

25

REGIONAL REVENUEEUR million

26

11,6

15,7

3,3

4,9

14,1

16,3

3,7

5,3

0

2

4

6

8

10

12

14

16

18

Nordic Rest of Europe North America Rest

Q215 Q216

26