Annual Report
2023
Every digital moment secured.
Financials
F-Secure 
Corporate Governance
Sustainability Statement
A PDF optimized for printing
is available for download at
www.f-secure.com/en/investors
Contents
The F-Secure Annual Report 2023 is composed of
four sections describing the year 2023, Sustainability,
Financial performance and Governance.
This Annual Report is not an xHTML document compliant with the ESEF (European Single Electronic Format)
regulation. The Financial Statements and Board of Directors’ report 2023 in accordance with ESEF regulations
are available electronically as an xHTML document at www.f-secure.com/en/investors.
F-Secure 
This is F-Secure ....................................... 
The year in numbers ................................ 
President and CEO’s review ........................ 
Our year ............................................... 
Strategy ................................................ 
F-Secure as an investment ......................... 
Sustainability Statement
Towards sustainable security experiences ..... 
General information ................................. 
Environmental information ........................ 
Social information ................................... 
ESG Governance information ..................... 
Financials
Board of Directors’ Report ......................... 
Key figures ............................................. 
Shares and shareholders ........................... 
Calculation of key ratios ............................ 
Consolidated financial statements .............. 
Statement of comprehensive of income ........ 
Statement of financial position .................... 
Statement of cash flows ............................ 
Statement of changes in equity ................... 
Notes to the financial statements ................. 
Auditor’s Report ...................................... 
Information for shareholders ...................... 
Corporate Governance
Corporate Governance Statement ............... 
Board of Directors .................................... 
Leadership team ..................................... 
Remuneration Report ............................... 
F-Secure Corporation financial statements ... 
02
F-Secure 2023
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
This is F-Secure
At F-Secure, we impact the digital
lives of tens of millions of people.
Consumers today encounter digital moments at home, on the
move, on multiple devices and through numerous applications.
Cyber security is a growing concern for people around the
world as the number and complexity of cyber threats continue
to increase. F-Secure’s mission is to deliver brilliantly simple,
frictionless security experiences to protect peoples’ digital
moments.
F-Secure’s offering includes a comprehensive range of cyber
security products and services related to endpoint security,
privacy protection, password management and digital identity
protection, and router security that protects consumers’ entire
connected home. Via our award-winning consumer products
and approximately 200 service provider partners, we protect
around 30 million people around the world.
Headquartered in Helsinki, Finland, F-Secure operates
globally in multiple locations and has approximately 30 million
subscribers in all channels. F-Secure revenue in 2023 was EUR
130.4 million and employed around 520 people. F-Secure shares
are listed on the official list of Nasdaq Helsinki.
03
F-Secure 2023
F-Secure 
Annual Report 2023
Financials
Corporate Governance
Sustainability Statement
This is F-Secure
The year in numbers
President and CEO’s review
Our year
Strategy
F-Secure as an investment
The year 2023 in numbers
The year in numbers
Revenue by geography, %
Revenue by channel, %
Revenue
130.4
MEUR
(+17.4%)
Subscribers
~30
million across
channels
Number of
Service Provider
Patners
~200
Adjusted EBITA
44.6
MEUR
(34.2% margin)
Sales from
over 100
countries
Fellows
~520
Earnings per share
0.13
EUR
Dividend per share
0.07
EUR
*
47
nationalities
* The Board’s proposal to the
Annual General Meeting
Patner
81%
Channel
Direct
Channel
19%
Rest of
the world
6%
38% Rest of Europe
31%
Nordic countries
Noth
America
25%
Lookout consumer business is included for June to December (7 months) in 2023.
04
F-Secure 2023
F-Secure 
Annual Report 2023
Financials
Corporate Governance
Sustainability Statement
This is F-Secure
The year in numbers
President and CEO’s review
Our year
Strategy
F-Secure as an investment
Timo Laaksonen
President and CEO’s review
T
he year 2023 was the second consecutive year
of big changes for F-Secure. In 2022, we made
a major overhaul of our application offering
by combining everything into one application:
F-Secure Total. Our connected home security service,
F-Secure Sense, reached a new level of simplicity in
terms of ease and speed of integration and deployment.
Under the hood, the year was about developing and
taking full control of our core technology platforms and
business infrastructure after the demerger in 2022.
We also devoted significant effort to upgrading our
customers and partners to the latest generation of our
services. Both of these fundamental programs were
successful.
We have taken strides forward in technology, product,
brand, consumer experience as well as partners and
customers served. In April, we announced the acquisi
-
tion of Lookout consumer security business, which
w
as an important step in expanding our business in
the US, serving Tier 1 service provider partners and
strengthening our position in the global CSP segment
with a focus on the mobile business. The integration
is progressing well, and our teams and fellows are
currently working towards the upcoming launch of our
combined product offering in 2024.
The new generation of F-Secure Total, which enables
users to protect themselves from cyber threats with
one simple solution, was launched in Direct Business
in mid-February. The new Total offers comprehensive
protection for all devices, including PCs, Macs,
smartphones and tablets, and it includes all the
relevant security, privacy and identity protection
05
F-Secure 2023
F-Secure 
Annual Report 2023
Financials
Corporate Governance
Sustainability Statement
This is F-Secure
The year in numbers
President and CEO’s review
Our year
Strategy
F-Secure as an investment
features in a single application. As mentioned above,
the next evolution of F-Secure Total – combining the
best of F-Secure and Lookout - will be launched during
2024.
In late 2022, we established a product business cell
called Embedded Security, and we have now signed
up the first partners for these new solutions. F Secure
Embedded Security – software development kits,
application programming interfaces and browser
plug-ins - protect customers’ digital moments typically
by embedding cybersecurity capabilities into apps,
devices and services that consumers already have and
know how to use, without the need to install a separate
security application. Embedded Security solutions can
also be used to create entirely new, custom security
applications to meet the requirements of service
providers looking to create a unique security experi
-
ence of their own.
In t
he third quarter of 2023, we reduced investments
in paid customer acquisition in Direct Business as
these did not generate the expected returns. In the
fourth quarter, we took other steps to boost sales, such
as price adjustments, the launch of free tools, and
content-driven activities across non-paid channels.
With new sales continuing on a slight downward trend,
we expect to do the same in 2024; very limited paid
acquisition while boosting organic demand creation.
Partner Business continued on a steady path. Our
recent focus in Partner Business has been strongly
on profitable growth, focusing on converting existing
partners and their customers from separate F-Secure
applications to Total. During the year, 34 existing
F-Secure’s operations
rely heavily on our
vision to become the
number one security
experience company
in the world.”
partners signed up for F-Secure Total upgrade and 38
Total launches were made.. Furthermore, we upgraded
our partners’ services to run on our latest technology
platforms, operating systems and application versions,
thus minimizing the need to support multiple service
generations. In the fourth quarter, we implemented an
agile product development process that will drive faster
value creation, such as novel scam protection features
and customer experience enhancements. Finally, we
strengthened our capabilities across the board to
win and serve Tier 1 partners - investments that are
expected to bear fruit in 2024.
F-Secure’s operations rely heavily on our vision to
become the number one security experience company
in the world. The most crucial factor in achieving this
goal is our ability to attract and retain a highly capable
and inspired team of people. I want to express my
warmest thanks to all F-Secure fellows for their commit
-
ment and excellent work - both those who have left the
compan
y and those who will carry the torch forward.
As we enter 2024, we are now well positioned to deliver
increased value to our customers and partners, accel
-
erate our business growth and deliver a solid financial
per
formance.
Timo Laaksonen, CEO & President of F-Secure
06
F-Secure 2023
F-Secure 
Annual Report 2023
Financials
Corporate Governance
Sustainability Statement
This is F-Secure
The year in numbers
President and CEO’s review
Our year
Strategy
F-Secure as an investment
Our year 2023
Our year
Joined forces with
Allianz Partners
In March we joined forces with Allianz
Partners to develop a comprehensive
cyber security suite, combining cyber
security prevention, protection and
insurance, delivered through Allianz,
F Secure and our partners. Through
the partnership, Allianz Partners and
F-Secure are offering a comprehensive
package of cyber security and cyber
care insurance. The new offering is an
extension of the FSecure Total solution,
which protects against the growing
number of cyber threats now targeting
financial data.
Stronger together with
Lookout Life
The acquisition of Lookout consumer security
business in June was a significant step in
expanding our business in the US and in
strengthening our position in the global CSP
segment. With a complementary mobile
optimized software product portfolio, the
acquisition nearly tripled our size in the fast-
growing US consumer cyber security software
market. With the acquisition we welcomed the ~70 new fellows to F-Secure. Since
the acquisition, our fellows have been working intensively to combine the best of
F-Secure and Lookout Life into a strong, differentiated product portfolio and to refresh
our business strategy to become a leading company in our industry.
F-Secure SPECIES
Our annual global partner conference
SPECIES was held in Amsterdam,
Netherlands in June. In the event, a
record number of our partners from
20 countries gathered to gain more
understanding on what to expect from
Generative AI from both service develop
-
ment and threat perspectives. The
e
vent brought together approximately
94 guests from 42 Service Providers,
representing around EUR 60 million and
the promoter score for 2023 year’s event
was record high 100%.
Solid performance in
challenging market
environment
The uncertainties caused by high infla-
tion and low consumer confidence as
w
ell as partners’ tightened cost control
impacted F-Secure’s performance
in 2023. At the same time, F-Secure
has gone through a major journey of
transformation. F-Secure has been
vigilant in making necessary changes
to the business to keep the company in
good financial health. F-Secure quickly
adapted to the changes in market,
adjusting its organization and cost
structure and succeeded in delivering a
34.2% (39.6%) adjusted EBITA margin in
the uncertain business environment.
Touch ’n Go eWallet –
seamless protection
for personal data
In October we announced, together
with TNG Digital, Malaysia’s mobility
leader, the co-creation of an embedded
security solution to protect Touch ’n
Go eWallet and the data privacy of its
growing user base. This embedded
solution is designed to protect the
personal data of Touch ‘n go eWallet
users. It continuously monitors the web
for customers’ personal data. If found,
the customer is alerted to data being
found online. The partnership adds a
new standard for protecting identities
with a simple, frictionless embedded
security solution.
Establishing sustainability
foundations
F-Secure has been renewing its
sustainability strategy, policies and
guidelines. In 2023, we continued to
invest into ESG-related expertise and
initiatives, and increased transparency
across our operations. We continued our
double-materiality assessment started
in 2022 and have involved key stake
-
holders, namely consumers, Service
P
rovider partners, our employees, and
Leadership Team into the process. In
addition, we our first submissions to
rating agencies such as Ecovadis and
Carbon Disclosure Project (CDP). Read
more about our sustainability work in our
Sustainability Statement.
07
F-Secure 2023
F-Secure 
Annual Report 2023
Financials
Corporate Governance
Sustainability Statement
This is F-Secure
The year in numbers
President and CEO’s review
Our year
Strategy
F-Secure as an investment
Strategic priorities
Increase average
revenue per user
(ARPU)
Replacing stand-alone products and
accelerating the F-Secure Total roll-out.
Developing current
offering and new
products
Expand market coverage and the
accessible market by developing new
product groups.
Expand into
new channels
Reaching out to a wide range of service
providers and expanding potential
customer base.
Strategy
A clear and well-defined strategy
aiming to become the security
experience leader in the world.
Our vison
F-Secure to become the #1 security
experience company in the world
Bringing sense of security ubiquitously to digital moments of
tens of millions of people.
Operating priorities
Accelerate profitable
growth to fund Tier1
investments
Total Convergence and Channel
Conversion.
Deliver on #1 Security
experience vision
Expanding market reach through
NewVertical and Tier 1 partnerships.
Transform company to
Partner Business focus
Best partner experience and focus on
Tier 1 Partnerships.
Optimize Direct Business
revenue and profit
Direct Business increased focus on
retention and upsell.
08
F-Secure 2023
F-Secure 
Annual Report 2023
Financials
Corporate Governance
Sustainability Statement
This is F-Secure
The year in numbers
President and CEO’s review
Our year
Strategy
F-Secure as an investment
F-Secure is a global leader in simplifying cyber security.
F-Secure is listed at the stock exchange in Helsinki and we
have around 30,000 shareholders.
F-Secure’s strong financial position and liquidity support our
capital allocation principles and allow us to invest more capital
to growing the company while simultaneously offering solid
dividends to our shareholders.
F-Secure as an investment
Medium-term financial targets by 2026
2023
Growth 130.4
MEUR
Total revenue of more than EUR 200 million by 2026
Profitability
After initial growth investments,adjusted EBITA margin of above 42%
34.2%
Dividend Yield
Around or above 50% of net profit on an annual basis.
54.7%
Leverage
Net debt/adjusted EBITDA ratio below 2.5x, excluding
temporary impact from acquisitions
3.6x
1.
Consumer cyber security is a large and growing
market opportunity
2.
Expanding market reach through New Vertical and
Tier 1 partnerships
3.
Global leader in the Communication Service
Provider (CSP) channel
4.
Scalable, highly profitable SaaS business model
outperforming rule of 40 and delivering steady
dividend growth
5.
Positioned for growth in North America – the largest
consumer security market
09
F-Secure 2023
F-Secure 
Annual Report 2023
Financials
Corporate Governance
Sustainability Statement
This is F-Secure
The year in numbers
President and CEO’s review
Our year
Strategy
F-Secure as an investment
A PDF optimized for printing
is available for download at
www.f-secure.com/en/investors
Sustainability
Statement
10
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Towards sustainable security experiences
Our responsibility as a cyber security service provider
is to ensure that that we protect consumers in all
those digital moments in which consumers feel most
vulnerable. Moments in which scams and fraud are
commonplace such as messaging, browsing, shopping,
banking and payments, social media, and more. Our strategy is to secure
these digital moments through a simple, elegant, and non-intrusive consumer
experience: combining holistic security in the most critical digital moments with
an experience that makes it extremely easy for users to stay safe and feel secure.
Service Provider partners continue to provide us reach and wider adoption,
which is important as it’s been estimated that more than $1 trillion was stolen
from 25% of the world’s population last year. With the acquisition of Lookout Life
in 2023, we gained a number of new Tier 1 partners, some of the most prominent
Service Providers in the world. Through these partnerships hundreds of millions
of consumers now have the opportunity to be protected by F-Secure and enjoy
the benefits.
Similar to 2022, we have continued to develop F-Secure into the best
environment for people to develop and apply their skills, competencies and
experience for a great purpose – making every digital moment more secure,
for everyone. We’ve also dedicated considerable time and effort to ensuring
the smooth integration of people, competences, market knowledge and
technologies of Lookout Life into the core of F-Secure strategy, processes and
mode of operation. Today, our employees represent nearly 50 nationalities, and
we intend to continue building a team of people from diverse backgrounds,
ensuring that everyone can join our community and be who they are.”
Timo Laaksonen, President and CEO
Since the launch of our ESG initiatives in 2022, we’ve
identified that our most material contribution to society
and economic progress is to secure people’s digital
moments, and to fight against cybercriminals and identity
theft. With the number of scams and cyberthreats on
the rise this year, we have stepped up our efforts to protect people through our
holistic product portfolio while providing free tools and education. To further
support this mission, we made a significant investment by acquiring US-based
Lookout Life, which complements our product portfolio, and strengthens our
skills and competences in a mobile-centric world. Through these actions we’re
empowering consumers to navigate the digital landscape securely, while helping
to raise awareness and knowledge of the threats.
In 2023, we continued to invest in ESG-related expertise and initiatives, and
increased transparency across our operations. In an industry characterized by
competition for the best talent and relatively male-dominance, we embarked
on a journey to reshape our talent acquisition processes and practices, actively
striving to hire and attract a more diverse workforce, including participation in the
Women in Tech and Pride initiatives. Diversity, Equity and Inclusion remain core
values at F-Secure and we’re pleased to see zero incidents of discrimination in
2023. We also recognize that our industry is demanding for our employees, and
we remain committed to the health and wellbeing of our employees.
We value the opinions of our employees. That’s why, starting from the first year
of the company, we introduced a program where one of the Board members is
chosen from among the employees – or as we call them, Fellows. This has helped
the Board of Directors to better understand how our decisions impact our teams,
resulting in better decision-making.
Furthermore, we completed our first carbon emission analysis, which
demonstrates that as a software company, our ecological footprint is relatively
small. Nevertheless, we respect the planet and are in the process of defining
science-based greenhouse gas emission reduction target aligned with the
Science Based Targets initiative (SBTi).”
Pertti Ervi, Chair of the Board of Directors
11
Sustainability Statement
F-Secure 
Sustainability Statement
Annual Report 2023
Financials
Corporate Governance
General information
Environmental information
ESG Governance information
Social information
Cyber security
Own workforce
End-customers
Establishing F-Secure
sustainability foundations
Following the demerger from WithSecure in June 2022,
F-Secure has been renewing its sustainability strategy,
policies and guidelines. In 2023, we continued our
double-materiality assessment started in 2022 and
have involved key stakeholders, namely consumers,
Service Provider partners, our employees, and
Leadership Team into the process.
The assessment confirmed that the most material
areas for F-Secure and its stakeholders are protecting
people and society, our employees, cyber security, and
general compliance. The sustainability strategy work
culminated in the launch of our ESG Commitments as
highlighted below. Additionally, recent EU legislative
initiatives such as the Corporate Sustainability
Reporting Directive (CSRD) and European Sustainability
Reporting Standards (ESRS) have been evaluated and
are already influencing the structure of F-Secure’s 2023
sustainability report and the reported KPIs.
Protecting digital moments
Fellow experience
Responsible business
General information
12
Sustainability Statement
F-Secure 
Sustainability Statement
Annual Report 2023
Financials
Corporate Governance
General information
Environmental information
ESG Governance information
Social information
Cyber security
Own workforce
End-customers
Protecting digital moments
Today, almost everything we do as consumers is digital:
we shop, exercise, work, socialize, relax and unwind,
all while being connected. Our insights show that
consumers now spend an average of eight hours a day
online, which is a third of their lives. This is more time
than most people spend sleeping.
Although digital moments are crucial in our lives, two-
thirds of consumers find cyber security too complex,
and over half are unsure if their devices are protected.
We’re also seeing an increase in various types of online
scams, and a staggering 1.02 trillion US dollars was
lost to scams between August 2022 and August 2023
1)
.
Therefore, it’s no surprise that 64% of consumers think
cyber risks are going to increase in 2024.
2)
This reinforces our belief that F-Secure’s mission to
make every digital moment more secure for everyone
and deliver brilliantly simple security experiences
will be in higher demand than ever before. To fulfil
our mission, we will maintain our commitment to
providing thorough and holistic protection against
scams in digital moments. Additionally, we will strive to
educate consumers and raise awareness of the threat
landscape.
Together with our Service Provider partners across the
globe, we’re protecting consumers and increasing their
confidence and trust in digital services, and thereby
in society as a whole. This represents our tangible
contribution to social and economic progress.
1)
Global Anti-Scam Alliance survey 2023
2)
F-Secure Living Secure survey 2023
Responsible business
Trust placed in F-Secure is earned only when actions
match the words. Since the founding of F-Secure we’ve
emphasized strong business ethics covering both how
we work with consumers and Service Provider partners,
as well as in how we handle their data. F-Secure Cyber
Security Policies include processes to identify, mitigate
and prepare for a potential business disruption, and
our Code of Conduct sets a clear framework guiding
our daily decision-making. At F-Secure, each employee
plays a critical role in earning, building, and maintaining
the trust placed in us.
When it comes to the environment, F-Secure is a
low carbon emission, cloud-based consumer cyber
security software company. While our greenhouse
emissions are low, we respect the environment and
are committed to doing the right thing for the planet as
described in the section related to environment.
In 2023, F-Secure made its first submissions to rating
agencies such as Ecovadis and Carbon Disclosure
Project (CDP). In 2024, we will continue to increase
visibility to F-Secure ESG policies, guidelines, and
key performance indicators (KPIs) both directly and
through external rating agencies.
We’ve also established F-Secure ESG Council to
oversee ESG strategy creation and execution across
the company as well as reporting progress to the Audit
Committee. See sections on Security and privacy in
our daily operations, ESG governance information and
Corporate Governance for more details.
Fellow experience
Our employees or “Fellows” are the key to our success.
Focus on talent development and wellbeing continued
after the demerger and acquisition of Lookout Life at
all levels of the organization. Our activities centered
around both retaining our current Fellows and creating
a positive employer brand image to attract new talent.
We also believe that true long-term success is built on
diverse backgrounds, knowledge and perspectives.
Therefore, we continue to ensure that F-Secure is a
company that offers interesting and inclusive career
paths to everyone. To further drive Diversity, Equity,
and Inclusion (DEI) related activities within F-Secure a
dedicated DEI Committee has been established.
Additionally, the wellbeing of our Fellows is critical for
the success of F-Secure. We will continue to develop
and implement an active wellbeing strategy, measuring
progress while also considering the recent acquisition
of Lookout Life. Similar to our Diversity, Equity, and
Inclusion (DEI) efforts, we have established an F-Secure
Health & Wellbeing Committee.
13
Sustainability Statement
F-Secure 
Sustainability Statement
Annual Report 2023
Financials
Corporate Governance
General information
Environmental information
ESG Governance information
Social information
Cyber security
Own workforce
End-customers
Environmental information
While we are a low
carbon emission,
cloud-based cyber security
software company, we’re
committed to managing our environmental
footprint and delivering sustainable growth.”
Antero Norkio, Senior Vice President
Sustainable security experiences
At F-Secure, we are committed to environmental
responsibility in all aspects of our operations. At our
core, we’re a low carbon emission, cloud-based cyber
security software-as-a-service company with a small
environmental impact.
We conducted our first emissions inventory calculation
based on the Greenhouse Gas Protocol (GHG) for
financial year 2022 in April and have now conducted
the same calculation for financial year 2023. The results
are a testament to our small environmental footprint,
with our annual emissions for financial year 2023 being
the equivalent of 315 Finnish families’ emissions
1)
As we want to be at the forefront of increasing climate
transparency, we will continue to report on our Scope
1–3
2)
emissions on an annual basis at a minimum.
2023 was marked by the acquisition of Lookout Life,
and as a result, our 2023 emissions aren’t directly
comparable to 2022. Lookout Life’s operations closely
resemble ours in terms of low environmental impact
and being a cloud-based software company, and
the emissions increase of the consolidated entity is
F-Secure carbon emissions 2023
8,525 tCO = ~ 315 ×
Average sized
Finnish family’s
emissions
1)
F-Secure management estimate based on average Finnish
person and household emissions as of 2023
2)
GHG protocol defines Scope 1 as direct emissions from owned
or controlled sources, Scope 2 as indirect emissions from the
generation of purchased energy consumed by the company and
Scope 3 all other indirect emissions that occur in a company’s
value chain (upstream or downstream).
in line with its share of revenue within F-Secure. To
make future comparisons more viable, we’ve included
pro-forma emissions of Lookout Life for the whole year
2023, even though it was integrated into our operations
starting from June 1, 2023.
14
Sustainability Statement
F-Secure 
Sustainability Statement
Annual Report 2023
Financials
Corporate Governance
General information
Environmental information
ESG Governance information
Social information
Cyber security
Own workforce
End-customers
20232022 20232022
Total emissions by scope (tCO) Emissions intensity
(tCO/m€ revenue)
Scope 3 emissions breakdown (%)
84% Purchased goods
and services
Business travel 14%
Other 2%
2023 laid the foundation for future
environmental commitments
In 2023, as part of our sustainability strategy process,
we’ve discussed with and gathered feedback from our
partners regarding their expectations in environmental
stewardship.
Based on these discussions and our sustainability
strategy, we’ve started planning to align with the
Science Based Targets initiative (SBTi) and driving
towards the +1.5C climate change target during 2024.
We have already decided upon and/or implemented
several initiatives to reduce our emissions, such as
changing our car benefit to allow only electric and
hybrid vehicles, implementing a green travel policy,
and ensuring proper recycling of all office and e-waste.
We’re excited to continue on this path and look forward
to working together with all of our partners and stake
-
holders to further lower our already low environmental
impact
.
Based on our double materiality analysis, we concluded
that Climate was a material topic while Water and
Marine Resources, Biodiversity and Ecosystems,
Resource use and Circular Economy, and Pollution
were not considered material for our operations in
accordance with the EFRAG standards.
1)
Pro-forma emissions for 2023. Not comparable to 2022 due to
Lookout Life acquisition and aligning our emissions model with
SBTi criteria and recommendations.
1)1)
2023 2022
● Scope 1 35 26
● Scope 2 187 178
● Scope 3 8,303 4,064
4,268
38
8,525
58
15
Sustainability Statement
F-Secure 
Sustainability Statement
Annual Report 2023
Financials
Corporate Governance
General information
Environmental information
ESG Governance information
Social information
Cyber security
Own workforce
End-customers
Social information
Our commitment to
sustainability is not just
about protecting digital
moments; it’s about nurturing
the wellbeing and potential of our greatest asset –
our people. Together, we are building a sustainable
future for people and society, and also fostering
a workplace culture that thrives on purpose,
diversity, openness and shared responsibility.”
Kitta Virtavuo, Chief People Officer
Fellow experience
Moreover, it is important for us that all our employees
have equal access to opportunities and receive the
same treatment. We firmly believe that a diverse
workforce is a key driver for success, which we actively
take into account in a relatively male-dominance
industry. F-Secure is a genuinely diverse company with
employees representing 47 different nationalities. By the
end of 2023, the representation of males and females
among personnel was 70% and 30% respectively.
Among the leadership team, the representation was
75% and 25% respectively, and among the Board of
Directors, it was 67% and 33% respectively. We are
also pleased to report zero discrimination incidents at
F-Secure during 2023. To further our DEI agenda, we will
include a third gender option in our internal systems for
employee information. This will also be reflected in our
annual sustainability statement starting in 2024.
F-Secure promotes inclusion and diversity also by
electing one of our employees as a full Board member
with related rights and responsibilities for one year. In
most companies, a personnel representative is not a
full member of the Board, but a specialist with a right to
participate and speak, sometimes with limited scope,
and without a right to vote. At F-Secure, we wanted an
employee to be a full Board member to demonstrate
the importance of our Fellows, which is how we refer to
our employees. This practice has been much appreci
-
ated and valued by the employees and the Board.
47
nationalities
F-Secure Social Information statement is aligned with our ESG Commitments
and divided into three categories:
•
Own workforce under “Fellow experience”
•
End-customers under “Protecting digital moments”
•
Cyber security under “Security and privacy in our daily operations”
Gender distribution
Board of Directors EmployeesLeadership Team
67% Male 70% Male75% Male
Female 33% Female 30%Female 25%
Inclusive and diverse workforce
At F-Secure, our people are our greatest asset, and
hiring the right individuals is one of our competitive
advantages. We strive to create an inclusive work
environment where everyone can be themselves,
thrive and grow as professionals. We have a strong
DEI ((Diversity, Equity, and Inclusion) agenda and we
have established an internal DEI Committee to act as
a frontline to implement DEI into our daily processes
and operations. Our DEI agenda included among other
things updating our recruitment process to further
attract a more diverse workforce. In addition, F-Secure
was supporting the annual Helsinki Pride 2023 as a
partner. This sponsorship not only raised awareness
internally but also solidified DEI as a core topic for us. In
2024, we will further develop metrics to measure the
effectiveness of our DEI programs and initiatives.
16
Sustainability Statement
F-Secure 
Sustainability Statement
Annual Report 2023
Financials
Corporate Governance
General information
Environmental information
ESG Governance information
Social information
Cyber security
Own workforce
End-customers
However, as an employee of F-Secure, the chose
Fellow is expected not to participate in issues on, e.g.,
leadership appointment (or dismissal), remuneration or
other terms of employment or service, industrial action
etc. that the Board of Directors may handle from time to
time.
“F-Secure has been recognized in the Nordic Business
Diversity Index and ranked third among the Nasdaq
Helsinki Mid-Cap sized companies
1)
. In addition,
we create a more resilient workforce by having an
inclusive culture that supports psychological safety
and wellbeing. For example, we acknowledge we
operate in a highly demanding industry and have an
agreement with Auntie, a low-threshold mental health
service that provides mental health support completely
anonymously to our employees.
We believe that a great company culture makes for
a stronger company. In mid-2023 we launched our
culture design process called Culture Journey. The aim
of our Culture Journey is to define what kind of company
culture supports the strategy of F-Secure and establish
the cornerstones that crystallize the desired culture
of the company, also together with the Fellows joining
through the Lookout Life acquisition. As part of the
1)
Diversity of the Boards of Directors and Executive Management
teams of 631 companies analyzed by Impaktly.
Discrimination incidents and fines
2023 status
Total number of incidents of
discrimination reported and resulting in
financial sanctions during the year 0
Status of incident reviews No incidents
Total amount of fines and damages
for violations of equal opportunity for
employees 0 €
Culture Journey, we’ve been involving all levels of staff to
conduct data-driven understanding of the key drivers
of culture in the organization, known as culture due
diligence. The next step is to finalize the desired culture
definition at the beginning of 2024.
An additional focus area was to enhance the develop
-
ment and learning opportunities for our employees. In
2
023, we have launched several programs, including
Leadership Academy, DEI trainings and implemented
a new Learning Management System. These programs
have increased awareness and knowledge sharing
around topics such as DEI, internal policies and
processes, leadership, and communication skills.
Strengthening collaboration
In 2023 F-Secure was again ranked high in Universum’s
ranking of Finland’s most attractive employers. This
year F-Secure was #5 among IT students and #14 in
the Professional’s category. To strengthen collaboration
with students we participate in initiatives such as Cyber
Citizen by Aalto University and course-related project
cooperation. We also facilitate student trainee and
mentoring opportunities through our collaboration with
Aalto international talent program.
To support a more diverse workforce we have spon
-
sored Women in Tech and co-hosted events. We aim to
br
oaden our agenda by starting a collaboration with the
UN Women program. We have also increased diversity
in our own Leadership Team through the launch of the
Extended Leadership Team involving Fellows across
functions that also creates new types of career paths
and opportunities.
17
Sustainability Statement
F-Secure 
Sustainability Statement
Annual Report 2023
Financials
Corporate Governance
General information
Environmental information
ESG Governance information
Social information
Cyber security
Own workforce
End-customers
H

H

Q

Q

Q

38 38
45
53
2
Encourage open discussion
and adapting with change
We encourage and facilitate open dialog within
F-Secure and monitor the employee Net Promoter
Score (eNPS) twice per year through a Fellow survey,
which is conducted to measure F-Secure’s culture
and the engagement of our Fellows. The results were
reviewed by the Leadership team and discussed within
respective functions as well as in company-wide town
halls. Company level improvements have been agreed
by the Leadership team as well as at the team level,
where we have facilitated each team to contribute
with their own improvement initiatives and plans. A
summary of the survey and key action points were
presented to the Board of Directors.
2023 was a year of change that affected everyone
at F-Secure due to the acquisition of Lookout Life in
Q2 and the change negotiations that concerned the
entire workforce in Q4. With the Lookout life acquisition
F-Secure grew by 68 employees, and the focus was on
integrating the new employees into F-Secure processes,
including HR processes such as annual goal setting
and performance reviews.
Employee Net Promoter
Score
The Q4/23 change negotiations were initiated as part
of measures to restructure F-Secure’s global operating
model and personnel to align with our strategic
priorities and financial targets. We recognize that this
has been a difficult time for our employees. We have
communicated as actively and openly as possible and
have offered support to employees who are leaving. As
a result of the change negotiations and other measures,
56 employments in F-Secure were terminated, of which
39 in Finland. In addition, 10 roles of which 8 in Finland,
ceased e.g. through resignations. In the spirit of trans
-
parency and open communication with our Fellows, we
proceeded with our Fellow survey during the change
negotiations. The impact can be seen in the eNPS
results, which declined from 53 at end of April to 2 at the
end of 2023 due to understandable uncertainty about
the future.
1)
In 2024 we are committed to restoring the
eNPS to its former level.
As part of our preparation for the CSRD legislation we
conducted a double materiality assessment which
identified “Own workforce” as one of the key areas for
our business. The assessment also concluded that
“Workers in value chain” and “Affected communities” are
not considered material to F-Secure.
1)
NPS can range between –100 to 100, and above 0 is acceptable,
>20 is favorable and above 50 is excellent
2)
H2/2023 not directly comparable
as measured during the change
negotiation process
2)
18
Sustainability Statement
F-Secure 
Sustainability Statement
Annual Report 2023
Financials
Corporate Governance
General information
Environmental information
ESG Governance information
Social information
Cyber security
Own workforce
End-customers
11%
24%
42%
23%
Strongly
agree
Somewhat
agree
Somewhat
disagree
Strongly
disagree
Social information
Protecting digital moments
Complexity remains one of the worst enemies of cyber
security and a recent survey conducted by F-Secure
showed that 66% of consumers find cyber security
complex.
1)
This is why F-Secure has embarked on a
mission to deliver brilliantly simple security experiences
and realize its vision to become the #1 security
experience company.
We execute on our vision and aim to become the
consumer’s trusted companion through several means:
1 Holistic protection across consumers’ digital
moments that provides a sense of security
2 Contextual and personalized experience that makes
security visible during relevant digital moments and
relevant to consumer needs
3 Helping consumers be aware and empowered to stay
safe online, and providing advice and support when
consumers need it
Scams are becoming
more commonplace
and difficult to
recognize, and we
continue to see consumers
struggling to protect themselves and their
digital moments. We’re extremely pleased with
the progress made 2023 to provide engaging
and easy-to-use holistic scam protection to
become consumers’ trusted companion online.”
TL Viswanathan,
Chief Product Business Officer
Contrary to the
popular belief,
cybercriminals do not
have to be technological
masterminds. Today, cyber
threats are both more personal and prevalent as
tools for conducting cyber crime are available
to anyone. At F-Secure, we dig deep into these
threats to understand threat actor capabilities,
tools and technologies, to develop holistic
countermeasures against them.”
Laura Kankaala, Threat Intelligence Lead
A need for simpler cyber security
We asked the people whether they agreed with
the statement “I find cyber security too complex”
All-in-one security and privacy app
A significant milestone in the realization of our vision
was the release of F-Secure Total in Q1/2023, which
includes all the security, privacy and identity protection
features in one single app across operating systems.
We constantly monitor the success of our journey using
the Net Promoter Score (NPS) and were pleased to see
that the NPS for Total was 49 in 2023, an improvement
from 42 in 2021 and 46 in 2022.
We expect the NPS to continue to increase in 2024
as we launch new versions of Total that enhance the
customer experience and introduce new protection
capabilities particularly against scams, also leveraging
1)
F-Secure Living Secure survey 2023
expertise and product assets obtained from the Lookout
Life acquisition.
Simplification and wider adoption
via Embedded Security
We continued to focus our efforts on simplifying the
customer experience and driving consumer adoption
of security and privacy solutions. The rollout of the
Embedded Security portfolio capabilities that integrate
with the home WiFi router similarly progressed together
with our Communication Service Provider (CSP)
and router manufacturer partners (F-Secure Sense).
19
Sustainability Statement
F-Secure 
Sustainability Statement
Annual Report 2023
Financials
Corporate Governance
General information
Environmental information
ESG Governance information
Social information
Cyber security
Own workforce
End-customers
3%
5%
8%
8%
11%
12%
Banking scam
Identity theft scam
Social media scam
Credit card scam
Call scams
SMS scams
Our partners value our offering, day-to-day support and
the business outcomes we deliver. We’re pleased that
our Partner Business Net Promoter Score remained
on an excellent level being 56. In addition, we signed 15
completely new Service Provider contracts in 2023 to
increase consumer security product adoption across
geographies. Following the Lookout Life acquisition,
F-Secure is also better positioned to serve the needs
of large Tier 1 Service Providers, for example, AT&T,
T-Mobile/Sprint and DoCoMo.
Research and innovation to
protect against scams
Various types of scams (as shown in figure below
2)
)
have now become a trillion-dollar business, already
affecting more than 1 out of 4 people worldwide.
These frauds can resemble traditional tech support
scams where criminals pose as bank or government
officials who insist that victims transfer large sums of
money to various accounts for “safe” keeping. Or fake
text messages received especially during the holiday
season from a delivery company asking for more
information that could lead to identity theft.
Also, if consumers are going to lose money to a scam,
chances are that the scam will start on social media.
One big reason is that these platforms are filled with
advertisements for fake products with fake discounts.
Our data shows that 44% of all social media fraud loss
reports come from people who tried to buy something
being advertised on social media. The most common
shopping scams ended with the purchased goods
never arriving or arriving replaced with junk.
Additionally, generative AI tools are helping scammers
create more convincing narratives and fake advertise
-
ments. Cybercriminals are also likely to create more
f
ake shopping websites and combine them with
malvertising to trick victims into handing over their
credit card details. With the help of generative AI to
instantly aid the construction of entire ecommerce
experiences and crafting professional marketing
messages, these fraud sites will become even more
difficult for consumers to detect and avoid.
To combat these threats, we have added Trusted
Shopping capability to F-Secure Total that lets
consumers know the trustworthiness of online stores
and check if the store is safe to buy from. We have also
made the same available as a new free tool (Online
Shopping Checker) among our other free tools. To
further protect consumers from scams, phishing and
other threats, and as part of our evolution as an inde
-
pendent company after the demerger, we have been
w
orking on improving our architecture and systems,
and developing our own Protection APIs dedicated to
consumer-focused use cases.
Sense automatically protects all family members and
connected devices without the need for any activity
on the consumer’s part creating a frictionless, secure
broadband customer experience.
During the year F-Secure expanded its Embedded
Security offering and launched a range of SDK and
cloud API-based protection capabilities, also leveraging
the assets obtained through the Lookout Life acquisi
-
tion.
1)
These capabilities make it possible to easily reach
Service Provider’s existing end-customers as there
is no need to install a separate security app. Rather,
the Service Provider embeds the SDKs provided by
F-Secure in their existing application or leverages
similar capabilities provided via F-Secure cloud. For
example, in October 2023, TNG Digital embedded
F-Secure SDK capabilities into the Touch ’n Go eWallet
app, making security accessible to over 21 million of its
existing customers.
Protecting consumers with our
Service Provider ecosystem
Service Providers like CSPs play a major role in
protecting consumers from online threats. Many of our
partners see security as an integral part of their offering
and brand promise, and are committed to helping
consumers feel safe, secure and confident online.
To help our partners deliver security to their
end-customers, we have spent more than a decade
building scalable expert and cloud-based services
that culminate in our Security Business Platform.
Through this platform, our products and services can be
delivered to consumers as an integrated offering that
partners can easily sell and deliver.
1)
Software Development Kit (SDK), Application Programming
Interface (API)
2)
F-Secure global consumer market survey, Jun 2023, N=4,400 and
Global Anti-Scam Association survey 2023
Types of scams faced by consumers
20
Sustainability Statement
F-Secure 
Sustainability Statement
Annual Report 2023
Financials
Corporate Governance
General information
Environmental information
ESG Governance information
Social information
Cyber security
Own workforce
End-customers
m
S
c
Our deployed products are undergoing a transition
from the previous generation of APIs that focused on
end-point protection, primarily Windows malware. Last
year we reported that our customers used our previous
generation APIs approximately 900 million times every
day. On a fully comparable basis, that number is now
approximately 750 million, as we transition to our new
APIs and can also optimize the number of queries.
Using our new APIs, our scam protection technology is
now being used approximately 20 million times per day,
a number that we expect to grow significantly in 2024
as we transition to new APIs.
In addition, now that we have completed the
Transitional Services Agreements (TSAs) with
WithSecure, we are redirecting our cyber security
research efforts to create additional capabilities that
protect consumers against various types of scams.
This research and protection strategy that continues to
guide us also over the long term includes four key parts:
1. Mapping the scam landscape.
Cybercriminals are constantly
inventing new scams. The
starting point of our entire
research process is building
capabilities to holistically
understand and respond to these
threats.
2. Defense in depth. When
responding to threats, we
combine multiple technologies
into comprehensive and
holistic protection including but
not limited to malware analysis,
URL categorization and
reputation, privacy VPN, data
breach monitoring services,
router security, and more.
3. Personalized threat profile. As part of defending
consumers, we also see a lot of data on how
consumers behave, while respecting their right to
privacy. This includes for example what threats we
defend them from, where, when, and how. This rich
data stream will allow us to build a personalized
threat profile.
4. Contextual holistic protection. By combining
all of these, we can begin to build contextual and
holistic protection. When we understand the
consumer’s personalized threat profile, we can
provide personalized defense. In addition to the
technological defense in depth it is also about our
ability to advise consumers effectively offering
personalized advice, which might be very different
for a 20-year-old versus a 70-year-old person, and
vary from country to country and more.
21
Sustainability Statement
F-Secure 
Sustainability Statement
Annual Report 2023
Financials
Corporate Governance
General information
Environmental information
ESG Governance information
Social information
Cyber security
Own workforce
End-customers

49
46
42
20232022
56
57
Continued awareness creation
regarding cyber threats
Increasing consumer awareness on cyber threats and
providing tips, best practices and actionable informa-
tion about the evolving threat landscape remained high
on F
-Secure agenda.
Through various campaigns and our content
creation strategy, we have been able to reach 10
million consumers across the globe. This includes
the publication of “F-Alert”, a monthly newsletter that
informs consumers about what’s happening in cyber
security. Even more importantly, it tells consumers why
threats are happening and offers advice from F-Secure
experts to help secure consumer’s digital moments.
Additionally, more than 40 articles, eBooks and white
papers have been published on topics such as AI, how
AI scams work, what is spoofing, how to avoid fake
websites and more.
Note that the above does not include awareness
creation activities and consumers reached through our
Service Provider partners, which can be estimated to
be significant.
~800
million protection
events daily
Reached
10
million consumers
increasing cyber
crime awareness
F-Secure Total NPS F-Secure Partner
Business NPS
22
Sustainability Statement
F-Secure 
Sustainability Statement
Annual Report 2023
Financials
Corporate Governance
General information
Environmental information
ESG Governance information
Social information
Cyber security
Own workforce
End-customers
Social information
Security and privacy in our daily operations
It is impossible to
build sustainability
without trust. We are
committed to protecting
this trust by developing and operating our
products securely.”
Johannes Kossila,
Chief Information Security Officer
Our approach to cyber security
F-Secure’s approach to cyber security focuses on
managing of information security, privacy, and software
security across our products and the supporting
operational processes. Our Cyber Security Policy and
the related procedures define the applicable security
practices in accordance with F-Secure’s strategy.
The Cyber Security Policy is reviewed annually and
approved by our CEO.
To ensure the fulfilment of our cyber security objectives,
F-Secure Chief Information Security Officer together
with the Security Office leads the governance and
implementation of the cyber security practices
across all business functions. Security metrics and
progress of security initiatives are regularly reported
to the F-Secure Leadership Team. In addition, the
Security Steering group consisting of the CEO, General
Counsel, CTO, CFO, and Corporate Development
directs strategic security work and reviews security
performance on quarterly basis.
Our cyber security initiatives reflect the current threat
landscape. We identify and mitigate relevant cyber
security risks to prevent and prepare for potential
business disruptions. Proactive security incident and
business continuity management processes supported
by regular drills are critical to maintaining the resilience
of our products and business services.
F-Secure products are developed and operated in
accordance with our comprehensive secure software
development lifecycle. Our ambition is to develop
secure software and identify potential security
threats early in the development process. An efficient
vulnerability management process supported by our
bug bounty program is the foundation for maintaining
the security of our products after they are released to
production.
Skilled and security-aware employees are the key to our
cyber security governance. We provide our employees
with the support, tools, and instructions to perform
their work securely and promote security awareness in
their personal lives and with their families. We are also
active in various security communities and forums to
promote general security awareness and the develop
-
ment of industry practices. For example, F-Secure is a
long-standing member of The E
uropean Cyber Security
Organization (ECSO).
F-Secure is in the business of trust. Through our
products we are present in our customers’ digital
moments and have developed a unique understanding
of the consequences of personal data breaches to
individual lives. Data breaches often have financial
consequences and at worst they can have a significant
impact on the mental and physical wellbeing of the
victim. Therefore, when we offer our products to our
customers, we ask them to put their trust in us to
secure their digital moments. F-Secure is committed
to maintaining this trust by building cyber security
and privacy into our products and operations, and by
complying with the related applicable legislation in the
countries where we operate.
23
Sustainability Statement
F-Secure 
Sustainability Statement
Annual Report 2023
Financials
Corporate Governance
General information
Environmental information
ESG Governance information
Social information
Cyber security
Own workforce
End-customers
We continuously assess the effectiveness of our cyber
security governance and adhere to industry standards
to ensure high-quality security practices. Our cyber
security management processes are compliant
with the ISO27001 standard for information security
management systems and we conduct regular internal
audits to confirm that our products and business
processes follow the appropriate cyber security
practices.
After the demerger from WithSecure in 2022, F-Secure
has been renewing its cyber security strategy, policies
and guidelines and establishing new cyber security
capabilities. During 2023, we conducted a complete
review of our cyber security policies and updated them
to reflect the new F-Secure organization and ways
of working. We also started a compliance project to
achieve ISO27001 certification for our cyber security
management system covering the entire organization.
In accordance with our updated security policies, we
renewed our annual cyber security awareness training
and rolled it out to all employees. In addition, 84% of our
employees are participating in our continuous phishing
simulation training. With these security trainings, we
saw clear improvements in our security culture during
the year.
In 2023, we launched our Security Operations Center
for centralized coordination and response to security
incidents. Throughout the year, we faced only two major
security incidents which were both responded to and
mitigated in a timely manner. No customer data was
affected by these or other security incidents.
Finally, we continued to improve the coverage of
our automated vulnerability management tools
on our products and supporting infrastructure. We
improved our patching cadence and continued to
work with independent security researchers to identify
vulnerabilities and bugs in our products which were
not identified by our tools. In 2023, we paid total of 7,200
euros through our bug bounty program to 14 reported
cases, of which three were classified as high severity
and the rest as low severity.
Ensuring privacy while handling
our customers’ personal data
F-Secure continuously assesses the impact of privacy
regulations on our operations and identifies the key
regulatory requirements arising from them. We will
continue to maintain an up-to-date understanding
of regulatory developments and changes in our
business and to update our internal privacy policies
and processes accordingly. F-Secure conducts
regular privacy impact assessments for all significant
personal data processing activities. The outcomes of
privacy impact assessments are considered in the
data processing implementation, thereby ensuring
implementation of the principle of Privacy by Design.
In 2023, F-Secure participated in a General Data
Protection Regulation (GDPR) compliance assessment
by an external assessor. According to the assessment,
the overall level of data protection compliance at
F-Secure is high. In particular, our strong privacy culture,
established processes and documentation, and the
practices related to our products received positive
feedback. The identified growth areas related to a lack
of overview of privacy processes after the demerger in
2022, and steps have been taken to revive and clarify
legacy processes. In addition, a new onboarding course
on the F-Secure Learning Academy introducing privacy
topics was introduced and additional live training
events were organized. Finally, the privacy team is in
close contact with the business and provides support,
such as advising on new features.
Key cyber security and privacy
initiatives for 2024
We will continue to expand the monitoring scope of our
Security Operations Center and focus on introducing
new tools to further support our secure software
development lifecycle for products. In addition, we
will conduct a review of our company-wide business
continuity plans to better address system components
acquired through the Lookout Life acquisition. Finally,
our ambition is to complete our security compliance
project and achieve ISO27001 certification during 2024.
F-Secure’s privacy program will focus on three main
areas in 2024. Firstly, the product privacy policies will
be updated to make them more specific, transparent,
and accessible. Secondly, the goal is to update the
applicable privacy impact assessments to facilitate
integration of the new products following the acquisi
-
tion of Lookout Life to ensure a high standard of privacy
and to suppor
t the ISO27001 project. Finally, the goal is
for F-Secure Inc to obtain the Data Privacy Framework
Certificate to facilitate EU-US transfers of personal data.
24
Sustainability Statement
F-Secure 
Sustainability Statement
Annual Report 2023
Financials
Corporate Governance
General information
Environmental information
ESG Governance information
Social information
Cyber security
Own workforce
End-customers
F-Secure has established its ESG Council to facilitate
the creation and execution of ESG strategy with
stakeholders across the company. Furthermore, various
ESG Committees have been established to own their
respective areas, including employees from different
functions such as Commercial, Marketing, CFO Office,
Technology and People & Culture. At F-Secure, ESG
strategy is not considered a separate strategy, but
aligned with F-Secure’s corporate strategy and direc
-
tion, led by the CEO and the Leadership Team.
F
-Secure’s Audit Committee including the Chair of the
Board reviews F-Secure’s sustainability strategy and
its implementation at least twice a year, and the Board
of Directors at least once a year. At least one person
in the Audit Committee has previous expertise in
international companies and financial ESG reporting in
addition to auditors attending the meeting. During 2023,
plans have also been defined to ensure that the Audit
Committee and the Board of Directors will have access
to sustainability competence and training by 2024.
Further focus areas in 2023, following the Lookout
Life acquisition, included Code of Conduct and cyber
security related training across F-Secure. Furthermore,
F-Secure recycling and travel policies have been
updated.
As a general note and, looking ahead to 2024, the plan is
to re-evaluate the ESG governance model in light of the
EU legislation (CSRD/ESRS).
ESG Governance information
F-Secure
Board of Directors
Approve company strategy and target setting inc. sustainability related topics
F-Secure
Audit Committee
Review sustainability strategy
Review sustainability related policies including but not limited to ESG reporting, Corporate
Governance, CyberSecurity, and Risk Management
F-Secure
Leadership Team
Responsible for establishing company strategy and direction, inc. ESG strategy
Risk Management review in minimum twice a year
F-Secure
ESGCouncil
Purpose
• Identify and assess ESG opportunities and risks
• Develop and implement strategies and plans to address above
• Propose targets and goals, and develop policies & procedures
• Drives ESG compliance, and provides views on certifications and standards
Participants: CFO, CPO, General Counsel, SVP Corporate Development, Group ESG lead,
membersfrom Marketing, Technology and ESG Committees (on-demand basis)
ESG Committees ESG Function
ESG is part
of Corporate
Development
function leading
ESG Council and
facilitating ESG
strategy execution
and reporting. With
Legal team ensures
ESG activities
meet regulative
requirements.
General Counsel
Align ESG
governance with the
overall corporate
governance and
Code of Conduct
and other relevant
policies.
DEI Health &
Wellbeing (H&W)
Environment
Reviews and sets
ambition on DEI
related plans.
Evaluates and
provides feedback
on progress.
Reviews and sets
ambition on H&W
related plans.
Evaluates and
provides feedback on
progress.
ESG Council is
responsible for
driving environmental
initiatives and
achieving
sustainability targets.
25
Sustainability Statement
F-Secure 
Sustainability Statement
Annual Report 2023
Financials
Corporate Governance
General information
Environmental information
ESG Governance information
Social information
Cyber security
Own workforce
End-customers
Risk management
Sustainability related risks and opportunities are
managed as part of F-Secure’s risk management
process as described in the Corporate Governance
section.
In short, the primary goal of F-Secure’s risk manage
-
ment principles is to enable the organization to identify
and manage risks more effectively. The risk manage-
ment process monitors the potential negative impact
and lik
elihood of various situations arising from the
company’s operations, its markets, its customers or its
partners.
F-Secure encourages continuous risk assessment by
the company’s personnel. The relevant operational
risks identified through the risk management process
are regularly reviewed by each function, including
the twice a year review with the President and CEO
and the Leadership Team, and the Audit Committee.
Company’s statutory auditor reviews risks part of each
interim release (quarterly). These risks and opportuni
-
ties include topics such as
– Attracting, developing, and retaining talent
– Privacy and security related to, e.g., how we use and
protect consumer or partner data
– Cyber security threats related to end-customers,
partners, and our operations
– Business continuity risks to our operations including
suppliers, some of which may be related to civil
unrest, public health, adverse effect to climate
change and similar
– Non-compliance with regulations and violation of our
ethical standards like the Code of Conduct
Risk management is an integrated part of F-Secure
governance and management, and the risk manage-
ment process is aligned with the ISO-31000:2018
guide
lines. The Audit Committee regularly evaluates
the effectiveness of the risk management system.
26
Sustainability Statement
F-Secure 
Sustainability Statement
Annual Report 2023
Financials
Corporate Governance
General information
Environmental information
ESG Governance information
Social information
Cyber security
Own workforce
End-customers
A PDF optimized for printing
is available for download at
www.f-secure.com/en/investors
Financials
27
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Board of Directors’ Report 2023
Board of Directors’ Report 2022
F-Secure Corporation in 2023
F-Secure Corporation is a globally operating
cybersecurity company. F-Secure designs and offers
award-winning security and privacy products and
services that help tens of millions of consumers to
protect themselves against online threats. The offering
includes a comprehensive range of security and
privacy products and services related to endpoint
security, privacy protection, password management
and digital identity protection, and router security that
protects consumers’ entire connected home.
F-Secure is the global leader in providing consumer
security and privacy services through communication
service providers. Additionally F-Secure operates
with various other channels, including banking and
insurance, and sells products directly to consumers
with its ecommerce. The company was reborn
through the demerger of the consumer business
from WithSecure Corporation in June 2022. In 2023,
F-Secure strengthened its footprint in the US and in
the communication service provider channel by the
acquisition of Lookout consumer security business,
US-based consumer focused mobile security business
arm of Lookout Inc.
F-Secure main product and service portfolios are:
Security Suite: F-Secure Total deployed as an all-in-one
application that provides complete security, privacy
and identity protection on consumers’ personal devices
or any subsets of its protection modules. This includes
Mobile Security products obtained when acquiring
Lookout Life.
Embedded Security: Comprehensive portfolio of
security and privacy Software Development Kits
(SDKs) and cloud Application Programming Interfaces
(APIs) embedded in partner app or service, including
F-Secure Sense providing router security. This includes
embedded security capabilities obtained when
acquiring Lookout Life.
Services: F-Secure security business platform based
scalable expert and cloud-based services supporting
both Security Suite and Embedded Security such as
delivery and integration, customer care, and partner
success services to support its Partner Business.
F-Secure operates globally in over 100 countries
and has approximately 30 million subscribers in all
channels. F-Secure products are sold to consumers
through approximately 200 communication service
providers, retailers, banks, insurance companies and
directly through online stores after the Lookout Life
acquisition. F-Secure shares are listed on the official list
of Nasdaq Helsinki.
Presentation of financial information
F-Secure Corporation has formed a separate legal
group as of June 30, 2022. The financial information
presented in this report is based on actual figures as
an independent group after the consummation of
the partial demerger and carve-out figures prior to
the consummation of the partial demerger. Figures
in brackets refer to the corresponding period in the
previous year, unless otherwise stated.
Financial performance
Revenue
F-Secure revenue increased in January–December by
17.4% to EUR 130.4 million (EUR 111.0 million). Revenue
growth was attributable to the acquisition of Lookout
Life consumer business. Organic revenue growth
was 1.7% and currency neutral organic growth was
2.5%. Deferred revenue increased by 22.3% thanks
to both channels as well as Lookout Life acquisition.
The demand for our strategic growth products,
F-Secure Total, Sense and ID Protection was rather
good throughout the period, but the weaker consumer
sentiment resulted in a decline in global device
spending, which had an adverse effect on the Direct
Channel throughout the year.
Partner Channel
Revenue from the partner channel increased by 19.4%
to EUR 105.1 million (EUR 88.1 million). Organic revenue
growth in the partner channel was 2.6%. Revenue
increased in the Asia-Pacific (APAC) area, especially
in Japan, Singapore and Hong Kong. Also, Netherlands
developed favorably. Revenue decreased especially in
Poland, due to strong headwinds throughout the year.
Revenue decreased slightly due to weaker business
performance also in Germany and in the UK. The
roll-out of the latest version of F-Secure Total progressed
throughout the period, with all in all 34 existing partners
having signed up for F-Secure Total upgrade during
the year. Partner channel retail sales performed well.
However, growth was delayed due to postponed
launches and delayed deliveries following partners’
tight resourcing and budget control.
Direct Channel
Revenue from the direct channel increased by 9.9% to
EUR 25.2 million (EUR 23.0 million). Organically revenue
declined in the direct channel by 1.7%. The renewal
performance continued on a good level throughout the
period. The global decline in device sales is particularly
evident in the direct channel performance. Lower
consumer sentiment and weaker market demand
resulted in slower growth throughout the year, and the
market’s uncertainty is reflected especially in new
sales. Market recovery was visible towards the end of
the year, with favorable renewal development during
the fourth quarter of the year.
28
Board of Directors’ Report
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Board of Directors’ Report
Key figures
Shares and shareholders
Calculation of key ratios
Consolidated financial statements
Gross margin
Gross margin was 114.3 million (EUR 101.7 million)
and 87.7% of revenue (91.6%). The gross margin was
impacted by fair valuation adjustments of deferred
revenue made in purchase price allocation and
increased costs in hosting. Some double cost due to
finalization of TSA and some product mix changes
have an effect on hosting costs. Also, Lookout Life
business has a lower gross margin level than F-Secure
traditionally.
In connection with the demerger from WithSecure
in May 2022, F-Secure and WithSecure entered
into transitional services agreements (“TSA”) to
support the continuous operations of F-Secure. In
January–December 2023, the TSA costs were EUR 3.2
million in cost of revenue. These TSAs in cost of revenue
terminated at the end of 2023.
The transitional services agreements (“TSA”) entered
between F-Secure and Lookout consumer security
business amounted to EUR 3.9 million in cost of revenue
in June–December 2023. These TSAs in cost of revenue
are planned to last several years.
Operating expenses
Operating expenses excluding depreciation and
amortization and items affecting comparability
(IAC) were EUR 69.6 million (EUR 58.3 million) in
January–December 2023. Sales and marketing costs
were EUR 33.6 million (EUR 29.3 million). Research and
development (R&D) costs were EUR 23.2 million (EUR
15.1 million) and administration costs were EUR 12.8
million (EUR 13.9 million). Figures for comparison period
are not fully comparable as the classification and
allocation method used in carve-out vary from actuals,
see more in Note 1.3 Carve out principles. R&D expenses
grew as planned due to increased investments in
product development and people.
In connection with the demerger from WithSecure,
F-Secure and WithSecure entered into transitional
services agreements (“TSA”) to support the continuous
operations of F-Secure. TSA costs incurred in
January–December 2023 were EUR 2.5 million in R&D
and EUR 1.2 million in administration. Majority of the
administration TSAs terminated at the end of 2022, and
the rest of administration and all of R&D terminated at
the end of 2023.
The transitional services agreements (“TSA”) entered
between F-Secure and Lookout consumer security
business amounted to EUR 0.5 million in R&D and EUR
0.4 million in administration in June–December 2023.
Majority of the administration TSAs terminated during
2023 and the rest of administration and all of R&D are
planned to terminate during 2024.
Items affecting comparability (IAC) increased and
totaled EUR 8.0 million (EUR 3.8 million), as a result of
the acquisition of Lookout consumer security business
(described in Alternative performance measures on
page 39) and restructuring and change negotiation
related costs during the fourth quarter. The comparison
period included EUR 3.8 million of items affecting
comparability attributable to costs incurred due to the
listing in the first half of 2022.
Depreciation and amortization excluding purchase
price allocation amortization (PPA) totaled EUR 3.5
million (EUR 2.0 million). The increase is related to
amortization of technology as well as subleasing
agreements F-Secure entered in for its office premises
in connection with the demerger in May 2022. PPA
amortizations related to the Lookout consumer security
business acquisition totaled EUR 4.7 million.
1)
Net debt/Adjusted EBITDA for the last 12 months includes Lookout
consumer business unit EBITDA on an illustrative basis as if the
acquisition had been made on the first day of the period in question.
Profitability
Adjusted EBITA in January–December was EUR 44.6
million and 34.2% of revenue (EUR 43.9 million, 39.6%).
Items affecting comparability (IAC) were EUR 8.0 million
(EUR 3.8 million). Of this, approximately EUR 1.8 million
relates to the restructuring and change negotiation
expenses recognized in the fourth quarter and the
rest is related to the acquisition of Lookout consumer
security business. EBIT was EUR 29.5 million and
22.6% of revenue (EUR 38.8 million, 34.9%). Strategic
investments in growth and technology and Lookout
consumer security business integration had a negative
impact on profitability. The figures for the comparison
period do not fully reflect F-Secure’s profitability as a
standalone entity.
Cash flow, financial position and financing
In January–December 2023, cash flow from operating
activities before financial items and taxes amounted to
EUR 37.6 million (EUR 44.4 million). Challenges related
to receivables experienced earlier this year have
been recovered. Cash flow from operations was EUR
30.1 million (EUR 36.4 million). Cash conversion rate
was 81.2% (96.2%), following the increase in capital
expenditure. Cash at the end of 2023 amounted to EUR
15.9 million.
At the end of December 2023, F-Secure net debt
amounted to EUR 177.4 million (net cash of EUR 19.3
million) and net debt to adjusted EBITDA ratio
1)
was
3.6, being above of the medium-term target of below
2.5x, due to acquisition impact. Equity ratio was 12.0%
(39.6%) as a result of the Lookout consumer business
acquisition. The acquisition was financed with debt
29
Board of Directors’ Report
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Board of Directors’ Report
Key figures
Shares and shareholders
Calculation of key ratios
Consolidated financial statements
for which a new facilities agreement was entered into
with Danske Bank A/S and OP Corporate Bank plc.
The new financing package consists of two facilities,
(i) a EUR 202 million amortizing term loan to finance
the acquisition, and (ii) a EUR 20 million revolving loan
facility to be used for general corporate purposes of
the combined group. Both facilities hold a maturity of 3
years with two 1-year extension options. The revolving
credit facility is undrawn at reporting date. The
previous undrawn revolving credit facility, procured in
conjunction with the demerger from WithSecure, was
cancelled concurrently with closing of the transaction.
The Group’s loan agreement includes a quarterly
measured financial covenant based on the ratio
between net debt and adjusted EBITDA. The group has
met these covenant terms and conditions during the
reporting period and on the reporting date. In the fourth
quarter, the term loan was repaid by EUR 10.0 million.
Total assets were EUR 275.3 million (EUR 62.7 million) at
the end of 2023.
As at 31 December 2023, current lease liabilities were
EUR 1.0 million (EUR 1.0 million) and non-current lease
liabilities were EUR 0.3 million (EUR 0.9 million). The
lease liabilities relate to leases for office premises and
cars.
Prior to completion of the demerger, WithSecure’s
consumer business conducted by its foreign
subsidiaries was separated from the rest of the
business into separate companies through business
acquisitions or similar transactions in each relevant
country. In these transactions WithSecure or its
subsidiary was the buying entity if the transferring
business was a corporate security business, and
F-Secure or its subsidiary was the buying entity if
the transferring business was a consumer security
business. The transaction prices varied between
approximately EUR 70 thousand and EUR 3.0 million.
The payback time for the resulting payables and
receivables is primarily three years from the effective
date of each local transaction, and prepayment is
allowed. The interest rate for the unpaid transaction
price varies by country. F-Secure payables to
WithSecure totaled EUR 5.3 million and the receivables
from WithSecure totaled EUR 3.7 million.
In January–December 2023, capital expenditure was
EUR 215.7 million (EUR 4.6 million) following the Lookout
consumer security business acquisition. Capital
expenditure excluding the acquisition impact was EUR
7.9 million (EUR 4.6 million), and was mainly related to
technology and IT.
Revenue by sales channel
EUR million 1–12/2023 1–12/2022 Change %
Revenue from external customers
Partner channel 105.1 88.1 19.4%
Direct channel (E-commerce) 25.2 23.0 9.9%
Total 130.4 111.0 17.4%
Revenue by geography
EUR million 1–12/2023 1–12/2022 Change %
Comparable
change %
Revenue from external customers
Nordic countries 40.0 39.4 1.4% 1.5%
Rest of Europe 50.0 48.7 2.8% 2.8%
North America 32.0 1 7.1 87.3% 91.4%
Rest of the world 8.4 5.9 42.9% 53.6%
Total 130.4 111.0 17.4% 18.3%
Acquisitions and financial
arrangements
On 26 April 2023, F-Secure announced the acquisition
of Lookout consumer security business, US-based
consumer focused mobile security business arm of
Lookout Inc. The acquired mobile consumer security
business unit consists of shares of Lookout LLC in the
US and Saferpass s.r.o. in Slovakia as well as certain
IP and related know-how transferred to Finland.
The acquisition was completed on 1 June 2023. The
enterprise value of the acquisition was USD 223 million
(approx. EUR 202 million) on a cash and debt-free basis.
The acquired business was consolidated as part of
F-Secure from 1 June 2023 onwards. In the transaction
65 employees were transferred to F-Secure.
The acquisition strengthens F-Secure’s position as the
global leader in providing consumer cyber security.
30
Board of Directors’ Report
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Board of Directors’ Report
Key figures
Shares and shareholders
Calculation of key ratios
Consolidated financial statements
With the acquisition, F-Secure has significantly
increased scale, strengthened footprint in the US and
in the communication service provider channel as well
as complementary mobile optimized software product
portfolio reaching tens of millions of subscribers
worldwide. For more information on the acquisition, see
note 12 Acquisitions.
The acquisition was financed with debt for which a new
facilities agreement was entered into with Danske Bank
A/S and OP Corporate Bank plc. The new financing
package consists of two facilities, (i) a EUR 202 million
amortizing term loan to finance the acquisition, and (ii)
a EUR 20 million revolving loan facility to be used for
general corporate purposes of the combined group.
Both facilities hold a maturity of 3 years with two
1-year extension options. The revolving credit facility
is undrawn at reporting date. The previous undrawn
revolving credit facility, procured in conjunction
with the demerger from WithSecure, was cancelled
concurrently with closing of the transaction. The
Group’s loan agreement includes a quarterly measured
financial covenant based on the ratio between net debt
and adjusted EBITDA. The group has met covenant
terms and conditions during the reporting period and
on the reporting date. In the fourth quarter, F-Secure
repaid EUR 10.0 million of the term loan.
Group structure and changes
Following changes have occurred in the F-Secure
Group during 2023:
Lookout LLC was acquired in connection with the
acquisition of Lookout Life on 1 June 2023. Lookout LLC
was merged with F-Secure Inc on 15 June 2023.
F-Secure s.r.o. (previously SaferPass s.r.o.) was acquired
in connection with the acquisition of Lookout Life on
1 June 2023.
Significant events during
the financial year
On 26 April 2023, F-Secure announced the acquisition
of Lookout consumer security business, US-based
consumer focused mobile security business arm
of Lookout Inc. The acquisition was completed on
1 June 2023. Read more about the acquisition under
“Acquisitions and financial arrangements”.
With the acquisition, F-Secure updated its medium-
term financial target and introduced one new target
regarding leverage.
On 8 September 2023, F-Secure issued a negative
profit warning. F-Secure lowered its outlook for the
year 2023 revenue and adjusted EBITA due to weaker
than expected business performance during the third
quarter.
On 12 December 2023, F-Secure completed the
change negotiations that were started in October. The
change negotiations were initiated as part of measures
to restructure F-Secure global operating model
and personnel to align with the strategic priorities
and financial targets of the company. As a result of
the change negotiations and other measures, 56
employments in F-Secure were terminated, of which 39
in Finland.
Research and development
F-Secure Corporation research and development
expenditure amounted to EUR 25.6 (16.4) million in
2023, representing 19.6% (14.8%) of revenue and 29.9%
(25.7%) of all expenditures. Capitalized investments in
technology were EUR 7.6 (4.6) million.
In 2023, F-Secure Technology invested heavily in
product development; in research supporting our
product strategy; in generating value from the Lookout
Life acquisition, and in finalizing the demerger from
WithSecure.
2023 started strongly with the February release of
an updated version of our flagship all-in-one Total
product, launched for the first time simultaneously
to both Partner and Direct channels, and enabling us
to accelerate the process of decommissioning our
legacy standalone products. Through the rest of the
year, development on the Total product continued to
deliver new security features, like our industry-first iOS
Safari plugin for browsing protection. With both the
Total and Sense products, 2023 saw major progress in
our partner-facing capabilities, delivering increased
flexibility in configuration and deployment capabilities.
The rise of generative AI in 2023 spurred our F-Secure
Labs research unit to invest in new AI concepts for
consumer protection, and to focus our research agenda
around the increasingly important and consumer-
relevant problem of scam protection. The results of this
investment in AI are already becoming visible through
tools like the free F-Secure Text Message Checker.
We also delivered our new Research and Protection
Platform (RPP) to production. Developed from
scratch in 2023, the RPP is at the core of our unique
consumer-focused threat analysis and scam detection
capabilities, and is central to enabling us to productize
our threat research.
The acquisition of Lookout Life was a major fillip. Our
Technology organization grew to approximately 250
fellows globally, adding sites in Slovakia and India,
alongside our existing sites in Finland and Malaysia.
The new fellows brought a wealth of competence
and experience in Identity Protection products, and
in Mobile Development technology, and the new sites
give us access to a much broader and richer pool of
talent. The acquired product and technology assets
31
Board of Directors’ Report
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Board of Directors’ Report
Key figures
Shares and shareholders
Calculation of key ratios
Consolidated financial statements
were complementary to the existing Total product,
and immediately post-acquisition we embarked on
a roadmap to converge towards a single product
combining the full capabilities of both technology
stacks, which we expect to achieve in 2024.
Finally, at the end of 2023, F-Secure finalized the
technology-related demerger activities from
WithSecure, building systems and competencies to
operate our core technology platforms autonomously,
and taking end-to-end responsibility for our products
and services. This program of work was completed
successfully within the original timescales of the TSA
agreement. As part of if, we also launched and drove a
program across the whole of our client base to upgrade
all partners and customers to the latest version of our
technology platform, which will deliver more value to
customers and reduce our operational overhead. This
goal was largely achieved by the end of 2023 and we
expect to fully complete it in 2024.
Personnel, management and
auditors of the company
Personnel
At the end of December 2023, F-Secure had 524 (376)
employees. The increase in number of employees
resulted from the acquisition of the Lookout consumer
security business in the second quarter of 2023. In
addition, investments made in the technology team
contributed to the increase of the total number of
personnel. The average number of personnel in 2023
was 484 (368
1)
). Wages and salaries were EUR 33.3
(20.8) million in 2023.
During the fourth quarter of 2023, F-Secure conducted
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. The change negotiations concerned
the entire F-Secure personnel globally, and as a result
of the change negotiations and other measures, 56
employments in F-Secure were to be terminated, of
which 39 in Finland. Out of these, 40 employees were
still on payroll at the end of 2023.
1)
The average number of employees for the comparison period
consists of average employees after the demerger in June 2022.
Leadership team
On 1 June 2023, the following changes to F-Secure
executive leadership team were announced: TL
Viswanathan was appointed Chief Product Business
Officer and Firas Azmeh was appointed Chief
Commercial Officer and a member of F-Secure
Leadership Team. Following these changes, Steven
Offerein, Vice President, Portfolio Management, Dmitri
Vellikok, Vice President, Network Security Business
Team, Michal Iwan, Vice President, Security Suite
Business Team, Paul Palmer, Senior Vice President
for Partner Business, Perttu Tynkkynen, Senior Vice
President for Direct Business and Mikko Kestilä,
Vice President, Operations, became part of the new
Extended Leadership Team.
At the end of December 2023, the composition of the
Leadership Team was the following:
Timo Laaksonen President & Chief Executive Officer
Firas Azmeh Chief Commercial Officer
Richard Larcombe Chief Marketing Officer
Antero Norkio Senior Vice President, Corporate
Development
Sari Somerkallio Chief Financial Officer
Kitta Virtavuo Chief People Officer
TL Viswanathan Chief Product Business Officer
Toby White Chief Technology Officer
After the reporting period, on January 1, 2024 Mikko
Kestilä started as Senior Vice President, Services and
a member of the F-Secure Leadership Team. On the
same date Firas Azmeh started as Chief Revenue
Officer while continuing as a member of the Leadership
Team.
The Board of Directors
Members of the Board of Directors of F-Secure are
Pertti Ervi, Thomas Jul, Madeleine Lassoued, Risto
Siilasmaa, Petra Teräsaho and Sami Salonen. Sami
Salonen belongs to the personnel of the F-Secure
Corporation. One member of the Board of Directors is
elected from among F-Secure personnel. An election
is arranged annually for F-Secure personnel and each
permanent employee is eligible to stand as a candidate.
The representatives of the Board of Directors interview
three persons who have obtained the highest number
of votes in the elections and choose a candidate from
amongst them to be proposed for election as a member
of the Board by the Annual General Meeting. The term
of office of members of the Board of Directors ends at
the close of the annual general meeting of shareholders
following their election.
Auditor
The auditor of F-Secure Corporation is the Authorized
Public Accountant PricewaterhouseCoopers Oy with
Samuli Perälä, APA, as the auditor with the principal
responsibility.
Share-based incentive plans
F-Secure has share-based incentive programs for
the key personnel of the company. The share-based
long-term incentive plans include a Performance
32
Board of Directors’ Report
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Board of Directors’ Report
Key figures
Shares and shareholders
Calculation of key ratios
Consolidated financial statements
Share Plan as the main plan and Restricted Share
Plan as a complementary share-based incentive
plan for individually selected key employees in
specific situations. The purpose of the share-based
long-term incentive plans is to align shareholders’ and
management’s interests, motivate and incentivize key
individuals to focus on F-Secure’s long-term success
and targets and to commit key resources in the
company.
In addition, F-Secure has an Employee Share
Savings Plan (ESSP). The ESSP consists of annually
commencing plan periods, each one comprising a
12-month savings period and a holding period following
the savings period. The ESSP is offered to all F-Secure
employees. The employees have an opportunity to save
a proportion of their salaries and invest those savings
in F-Secure shares. The savings are used for acquiring
F-Secure shares quarterly after the publication of
the respective interim reports. As a reward for the
commitment, F-Secure grants the participating
employees a gross award of one matching share for
every two shares acquired with their savings. Continuity
of employment and holding of acquired shares for the
duration of the holding period are the prerequisites for
receiving the award.
More information on the programs is provided in
the note 19. Share-based payments of the Financial
Statements, as well as the Remuneration Report 2023.
Shares and shareholders
Shares and share capital
At the end of year 2023, the registered share capital of
F-Secure was 80,000 and the company had 174,673,165
fully paid shares. F-Secure has one share class and the
company’s shares are included in a book-entry system.
F-Secure has made two directed share issues in
March 2023 to the plan participants of the Company’s
Performance Share Plan and Restricted Share plan. On
2 March 2023, a total of 91,471 new shares were issued
to the plan participants of the Company’s Performance
Share Plan and Restricted Share Plan. On 4 March
2023, a total of 54,750 new shares were issued to the
second payment instalments’ participants of the
Company’s Performance Share Plan. The shares issued
account for the rewards earned from the performance
period 2020–2022 and retention period 2021–2022.
Information on the authorizations held by the Board
of Directors in 2023 to issue shares and special rights
entitling to shares, to transfer shares and repurchase
own shares, is available in the section on the Annual
General Meeting 2023.
Trading of shares
The closing price of the share at the end of December
2023 was EUR 2.04. In January–December, the highest
price paid was EUR 3.44 and the lowest EUR 1.64. In
January–December, the share’s volume weighted
average price was EUR 2.35. The share trading volume
in January–December was EUR 92 million and 39
million shares. On 31 December 2023, the company’s
market capitalization was EUR 355 million.
Shareholders
The number of registered shareholders at the end
of December 2023 was 33,785, including nominee
registers. The proportion of nominee-registered
and direct foreign shareholders was 12.35% of the
company’s shares at the end of the year. The list of the
shareholders of F-Secure Corporation is based on the
information given by the Euroclear Finland Ltd.
Treasury shares
During or at the end of the financial year, F-Secure did
not hold any treasury shares.
Short-term risks and uncertainties
Risks related to the integration of
Lookout consumer business
F-Secure’s business organizations are dependent to a
certain extent on certain functions provided by Lookout
under transitional services agreements (TSA), and
Lookout’s inability to provide these functions would
have a material adverse effect on F-Secure’s business
operations.
F-Secure together with Lookout consumer security
business may not be able to successfully carve-out
Lookout consumer security assets as planned, which
increases TSA related costs. F-Secure may not be
successful in migrating existing Lookout consumer
security customers and partners to its technology
platforms, which may increase operational costs or
expose F-Secure to claims related to Service Level
Agreements (“support penalties”).
Risks related to F-Secure’s
operating environment
Intensifying competition in the consumer security
market could lead to a general decline of the price level
and affect F-Secure’s ability to maintain or increase its
market share, and the intensifying competition could
thus have an adverse effect on F-Secure’s revenue,
profitability and market share.
F-Secure may not be able to keep up with rapid
changes in customer demand, distribution channels,
technologies and the evolution of malware and cyber
security threats, which could have an adverse effect
33
Board of Directors’ Report
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Board of Directors’ Report
Key figures
Shares and shareholders
Calculation of key ratios
Consolidated financial statements
on F-Secure’s reputation, competitiveness, results of
operations and financial position.
Inflation has increased the risk of negative
development of the cost structure. Inflation may have
a negative impact due to lower consumer sentiment
mostly indirectly due to decreasing sales of devices
for which F-Secure products are typically purchased,
but directly as well due to lower new service sales and
services renewals.
Uncertainty on F-Secure’s key markets, financial
markets and general economic situation could
have an adverse effect on F-Secure’s business and
growth opportunities and reduce the demand for the
products and services offered by F-Secure. Geopolitical
instability, such as the war in Ukraine has increased
the uncertainty in the world and the risk of unexpected
disruptions of the world economy. The war in Ukraine
has caused some exceptional consequences to
the cyber security landscape, such as highly visible
governmental activities, as well as organized civilian
response to the war efforts.
Risks related to F-Secure’s business
operations and strategy
The loss of key persons and skilled employees, the
possible delay of new hires or the increase in personnel
expenses could weaken F-Secure’s profitability and the
standard of its services or solutions, hinder operations
and prevent F-Secure from successfully developing and
growing its business.
Actual, possible or perceived defects, disruptions
or vulnerabilities in F-Secure products or services,
including risks from cyber security attacks and errors or
abuses by F-Secure employees and business partners,
could harm F-Secure or its customers reputation,
decrease sales, hinder operations, tie up personnel
resources and give rise to claims for damages and
increase other costs.
Integration of F-Secure and Lookout consumer security
product portfolios over time may prove to be more
costly than estimated or take longer than planned.
These may increase F-Secure costs or negatively
impact planned future product releases, their scope,
availability and/or competitiveness and thereby
revenue growth.
If F-Secure’s agreement with a significant business
partner or Channel Partner ends or is terminated, or
if F-Secure is unable to continue cooperating with a
business partner or Channel Partner under acceptable
terms, or if there is a failure by a Channel Partner to fulfil
its duties, this could significantly decrease F-Secure
revenue, increase its costs, hinder its operative business
and weaken its ability to offer services or solutions to its
customers.
F-Secure provides consumer cyber security solutions to
some of the largest Service Providers in the world (“Tier
1 Channel Partners”) and aims to win new Tier 1 Channel
Partner contracts. Tier 1 Channel Partners may require
solutions that F-Secure is unable to create, deliver and
maintain with sufficient profitability over time. These
contracts may also expose F-Secure to claims related
to Service Level Agreements (support penalties) or
other similar contractual liabilities. F-Secure may have
to invest up-front to create and deliver said solutions,
which in turn may have a negative impact on F-Secure
product roadmaps, Company revenue and profitability.
F-Secure is in the process of transforming the Company
and its operating model with its growth strategy.
Changes in the Company strategic priorities, structure
and processes may take time to become effective.
Additionally, these changes may at least initially have
a negative impact on Company product roadmap and
its operations. New strategy and implemented changes
may also lead to higher attrition rate. These combined
can have a negative impact on Company financial
outlook.
Risks related to the technology used
by F-Secure, intellectual property
rights and other regulations
Any malfunctions in technologies, IT systems or
network connections used by F-Secure or any
security breaches could engender disruptions to
F-Secure’s service offering. F-Secure may not succeed
in registering, protecting, managing, maintaining
and enforcing its intellectual property rights, and
F-Secure may be targeted by intellectual property
right infringement claims which can cause significant
costs. Leakage of personal data collected by F-Secure
may have a material adverse effect on F-Secure’s
business and reputation and result in claims for
damages as well as fines and orders imposed by the
authorities. F-Secure continues to have a commercial
relationship with WithSecure related to certain
protection capabilities after the demerger and having
completed the TSAs. WithSecure inability to provide
these protection capabilities could have a material
adverse effect on F-Secure’s business operations and
its customers.
Risks related to F-Secure’s financial
position and financing
The number of operations and sites outside the
Eurozone in different currencies exposes F-Secure
to a risk related to currency fluctuations. Changes in
the exchange rates between currencies could have
an adverse effect on F-Secure’s revenue, results and
financial position. F-Secure is exposed to transaction
risks caused by purchasing and selling products and
goods in currencies that are not F-Secure’s home
34
Board of Directors’ Report
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Board of Directors’ Report
Key figures
Shares and shareholders
Calculation of key ratios
Consolidated financial statements
currencies especially USD after Lookout consumer
security business acquisition, investment risks in
units abroad and translation risks that arise when
investments in subsidiaries in different currencies are
converted into F-Secure’s operational currency, i.e., the
euro. Furthermore, F-Secure financed the acquisition of
Lookout’s consumer security business with bank debt
subject to leverage covenants. Failure to comply with
the covenants would lead to early expiry of the debt.
Changes in interest rates have an impact on interest
costs.
Annual General Meeting 2023
The Annual General Meeting of F-Secure Corporation
held on 23 March 2023 adopted the annual accounts
and the consolidated annual accounts for the financial
year ended 31 December 2022, discharged the
members of the Company’s Board of Directors and
the CEO from liability, and approved all proposals
made to the Annual General Meeting by the Board of
Directors. The Annual General Meeting also approved
the 2022 remuneration report for governing bodies. The
resolution was of an advisory nature according to the
Finnish Companies Act.
Resolution on the use of the profit shown on the
balance sheet and the payment of dividend
The Annual General Meeting resolved that a dividend
of EUR 0.07 per share will be paid for the financial year
30 June 2022 – 31 December 2022. The amount of
the dividend is based on the Company’s shorter than
normal financial year 30 June 2022 – 31 December
2022. The dividend was paid to shareholders who were
registered in the Company’s shareholders’ register,
maintained by Euroclear Finland Oy, on the record date
for dividend payment on 27 March 2023. The dividend
was paid on 4 April 2023.
Composition and remuneration
of the Board of Directors
The Annual General Meeting resolved that the number
of the members of the Board of Directors shall be six
(6). The current board members Pertti Ervi, Thomas
Jul, Madeleine Lassoued, Risto Siilasmaa and Petra
Teräsaho were re-elected to the Board of Directors.
Sami Salonen, who belongs to the personnel of the
corporation, was elected as a new member of the
Board of Directors.
It was resolved that the remuneration of the
members of the Board shall remain unchanged. The
remuneration is as follows: EUR 80,000 annually for the
Chair of the Board of Directors, EUR 48,000 annually
for the Committee Chairs, EUR 38,000 annually for the
members of the Board of Directors and EUR 12,667 for
members employed by F-Secure. Furthermore, the
travel expenses and other costs of the members of the
Board of Directors directly related to board work are
paid in accordance with the Company’s policy in force
from time to time and that each member of the Board
of Directors of F-Secure is paid a predetermined travel
fee in addition to travel expenses for meetings held
outside their country of residence as follows: A separate
meeting fee of EUR 1,000 is paid to the Board members
travelling from another country to an on-site meeting
within the European continent. If inter-continental travel
is required, the fee is EUR 2,000. No separate meeting
fee will be paid to members of the Board of Directors
employed by the Company.
Election and remuneration of the Auditor
The Annual General Meeting re-elected the audit
firm PricewaterhouseCoopers Oy as Auditor of the
Company. Mr Janne Rajalahti, APA, was nominated
as the Company’s Responsible Auditor
1)
. The Auditor
will be remunerated in accordance with the invoice
approved by the Company.
Authorising the Board of Directors to decide on
the repurchase of the Company’s own shares
The Annual General Meeting authorised the Board of
Directors to resolve on the repurchase of a maximum of
10,000,000 of the Company’s own shares in one or more
instalments with funds belonging to the Company’s
unrestricted equity. The authorisation entitles the
Board of Directors to decide on the repurchase also
in deviation from the proportional holdings of the
shareholders (directed repurchase). The authorisation
comprises the repurchase of shares either in the public
trading or otherwise in the market on the trading
price determined for the shares in public trading on
the date of purchase, or with a purchase offer to the
shareholders in which case the repurchase price must
be the same for all shareholders. The authorisation
includes the right of the Board of Directors to decide
on all other terms related to the repurchase of the
Company’s own shares.
The authorisation will remain valid until the conclusion
of the next Annual General Meeting, in any case until
no later than 30 June 2024. The authorisation cancels
the Company’s prior authorisations concerning the
repurchase of the Company’s own shares.
Authorising the Board of Directors to
decide on the issuance of shares and
special rights entitling to shares
The Annual General Meeting authorised the Board
of Directors to decide on issuance, in one or more
1)
As announced on 21 April 2023, PricewaterhouseCoopers Oy
has appointed APA Samuli Perälä as the responsible auditor of
F-Secure Corporation. The change concerns the financial year
2023.
35
Board of Directors’ Report
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Board of Directors’ Report
Key figures
Shares and shareholders
Calculation of key ratios
Consolidated financial statements
instalments, of new shares or shares possibly held by
the Company through share issue and/or issuance of
option rights or other special rights entitling to shares,
referred to in Chapter 10, Section 1 of the Finnish
Companies Act, so that by virtue of the authorisation
altogether 15,000,000 shares may be issued and/or
conveyed at the maximum.
The authorisation be used for the financing or execution
of potential acquisitions or other arrangements or
investments relating to the Company’s business, for the
implementation of the Company’s incentive scheme
or for other purposes subject to the Board of Directors’
decision.
The authorisation entitles the Board of Directors
to decide on all terms and conditions of the share
issue and the issuance of special rights referred to in
Chapter 10, Section 1 of the Finnish Companies Act. The
authorisation thus includes the right to issue shares
also in a proportion other than that of the shareholders’
current shareholdings in the Company under the
conditions provided in law, the right to issue shares
against payment or without charge as well as the right
to decide on a share issue without payment to the
Company itself, subject to the provisions of the Finnish
Companies Act on the maximum amount of treasury
shares.
The authorisation will remain valid until the conclusion
of the following Annual General Meeting, however, at
the latest until 30 June 2024. The authorisation cancels
the Company’s prior authorisations concerning the
issuance of shares and special rights entitling to shares.
Amendment of the Articles of Association
The Annual General Meeting resolved that § 10 of the
Company’s Articles of Association was amended to
enable holding a general meeting entirely without a
physical meeting venue as a so-called remote meeting.
In its amended form, said provision of the Articles of
Association will read as follows:
“Article 10 Place of a General Meeting
In addition to the company’s domicile, a general
meeting may be held in Espoo or Vantaa.
The Board of Directors may resolve on organising the
General Meeting without a meeting venue whereby
the shareholders exercise their decision-making
power in full in real time during the meeting using
telecommunication connection and technical means.”
In other respects, no amendments were made to the
Articles of Association.
Organisational meeting of
the Board of Directors
In its organisational meeting the Board of Directors
of F-Secure re-elected Pertti Ervi as Chairman of the
Board of Directors. From among its members, the Board
elected Pertti Ervi, Petra Teräsaho and Risto Siilasmaa
as members of the Audit Committee.
Outlook for 2024
Growth: F-Secure estimates that revenue for 2024 will
be in the range of EUR 142–152 million.
Profitability: The group’s adjusted EBITA is expected to
be in the range of EUR 48–54 million.
Background for the outlook:
– F-Secure expects the consumer cyber security
market to grow mid-single digit CAGR between
2024–2026
1)
. The growth may be moderated due to
uncertainties we see around consumer sentiment
in certain markets resulting also Service Providers,
especially Communication Service Providers being
cautious in their investment priorities.
– Biggest organic growth driver is Total and Total
conversion within the partner channel; within Direct
Business focus will be on retention, and marketing
investments for paid customer acquisition will be
lower than previously.
– F-Secure continues investing (both OPEX and
CAPEX) in Embedded Security capabilities including
Tier 1 capabilities and - relationships, which are
expected to boost growth in medium term.
– Lookout consumer BU is now included for the full
year, compared to June to December (7 months) in
2023.
– Lookout consumer BU post-acquisition related
deferred revenue is fair valued according to
IFRS reporting and will be lower compared to
revenue recognised by Lookout consumer BU for
those advance payments. The negative revenue
impact included in the outlook is estimated to be
approximately EUR 1.5 million in 2024, and negative
EBITA-level impact in the outlook approximately EUR
0.5 million, respectively.
1)
Industry analyst views such as Gartner and IDC, and F-Secure
management estimates
36
Board of Directors’ Report
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Board of Directors’ Report
Key figures
Shares and shareholders
Calculation of key ratios
Consolidated financial statements
Financial targets
Medium term financial targets of F-Secure by 2026 are:
– Growth: Total revenue of more than EUR 200 million
by 2026
– Profitability: After initial growth investments,
adjusted EBITA margin of above 42%
– Dividend Yield: Around or above 50% of net profit on
an annual basis
– Leverage: Net debt/adjusted EBITDA ratio below 2.5x,
excluding temporary impact from acquisitions
F-Secure Corporation follows the Rule of 40 metric
as internal performance measurement and guiding
principle, according to which the combined revenue
growth rate and profitability margin should be equal to
or greater than 40%.
Annual General Meeting 2024
The Annual General Meeting of F-Secure Corporation
is planned to be held on 13 March 2024. The Board of
Directors will convene the meeting.
Board of Directors’ proposal
for the distribution of profit
According to the company’s dividend policy F-Secure
aims to pay around or above 50% of net profit as
dividend on an annual basis. On 31 December 2023
distributable funds of F-Secure Corporation were
EUR 15.9 million. The Board of Directors proposes to
the Annual General Meeting that a dividend of EUR
0.07 per share be paid. The dividend shall be paid
in two instalments. Earnings per share (EPS) for the
period January–December 2023 was EUR 0.13, and
the proposed dividend is 54.7% of the group January–
December earnings.
No material changes have occurred in the company’s
financial position since the end of the financial year.
Significant events after
the review period
On 9 February 2024, F-Secure announced that Kitta
Virtavuo, Chief People Officer and a member of
F-Secure Leadership Team, has decided to leave
F-Secure to pursue other career opportunities outside
the company. Virtavuo will continue in her current
role until April 2024, ensuring smooth handover of her
duties.
Helsinki, 15 February 2024
F-Secure Corporation
Board of Directors
The Corporate Governance Statement and Remuneration Report
have been issued separately and are presented in a section of this
F-Secure Corporation Annual Report 2023 publication. The reports
are also available on the Group’s website www.investors.f-secure.
com/en/investors/reports_and_presentations.
37
Board of Directors’ Report
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Board of Directors’ Report
Key figures
Shares and shareholders
Calculation of key ratios
Consolidated financial statements
EUR million 2023 2022*
Carve-out
2021
Carve-out
2020
Carve-out
2019
Revenue 130.4 111.0 106.3 100.1 94.8
Revenue growth % 17.4% 4.5% 6.1% 5.5%
Adjusted EBITDA 45.7 44.5 4 7.4 46.7 40.1
% of revenue 35.0% 40.1% 44.6% 46.7% 42.3%
EBITA 36.6 40.2 44.8 46.5 39.1
% of revenue 28.1% 36.2% 42.2% 46.5% 41.2%
Adjusted EBITA 44.6 43.9 47.2 46.5 39.9
% of revenue 34.2% 39.6% 44.4% 46.5% 42.0%
EBIT 29.5 38.8 43.5 44.7 37.7
% of revenue 22.6% 34.9% 40.9% 44.6% 39.0%
Adjusted EBIT 42.1 42.5 45.9 44.7 3 7.7
% of revenue 32.3% 38.3% 43.2% 44.6% 39.8%
Profit before taxes 27.7 38.6 43.6 43.7 36.8
% of revenue 21.2% 34.7% 41.0% 43.6% 38.8%
Result for the period 22.4 30.2 34.4 34.2 28.6
% of revenue 17.2% 27.2% 32.4% 34.2% 30.2%
R&D costs 25.6 16.4 16.9 15.3 14.6
% of revenue 19.6% 14.8% 15.9% 15.2% 15.4%
Investments 7.9
1)
4.6 1.7 1.7 3.1
% of revenue 6.1% 4.2% 1.6% 1.7% 3.3%
Operating cash flow 30.1 36.4 36.1 34.5 32.0
Net debt (+)/Net cash (–) 177.4 –19.3 0.2 0.2 0.3
Equity ratio % 12.0% 39.6% 24.5% 24.5% 5.9%
Cash conversion 81.2% 96.2% 95.6% 89.8% 89.0%
Wages and salaries 33.3 20.8 16.1 14.3 16.2
Personnel on average
2)
484 368 245 233 223
Personnel on Dec 31 524 376 248 243 227
* The key figures are presented combining actuals and carve-out basis for 1–12/2022 and on an actuals
basis for financial position as at 31 December 2022. For periods 2019–2021 financial information is on
carve-out basis. Refer to note 1 Basis of preparation, accounting principles and carve-out principles.
1)
Excluding acquisition
2)
Average number of personnel for 2022 represents the average employees after demerger. For carve-
out periods the average number of personnel consists of direct personnel working in the Consumer
Security Business.
Key figures
Key ratios
2023 2022
Earnings / share (EUR) 0.13 0.17
Earnings / share diluted 0.13 0.17
Shareholders’ equity per share, EUR 0.19 0.14
Dividend per share * 0.07 0.07
Dividend per earnings (%) 54.7% 41.2%
Effective dividends (%) 3.4% 2.5%
P/E ratio 27.7 16.4
Share price, lowest (EUR) 1.64 2.29
Share price, highest (EUR) 3.44 3.26
Share price, average (EUR) 2.35 2.68
Share price Dec 31 2.04 2.83
Market capitalization (MEUR) 355.5 494.0
Trading volume (millions) 39.0 15.8
Adjusted number of shares
average during the period 174,647,528 174,526,944
average during the period, diluted 174,526,944 174,526,944
Dec 31 174,673,165 174,526,944
Dec 31, diluted 174,526,944 174,526,944
* Board proposal for 2023. For 2022 dividend distribution was based on July–December 2022 net profit
and 78% from July–December earnings.
38
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Board of Directors’ Report
Key figures
Shares and shareholders
Calculation of key ratios
Consolidated financial statements
Reconciliation between adjusted EBITDA, EBITDA,
adjusted EBITA, EBITA, adjusted EBIT and EBIT
EUR 1,000 2023 2022*
Adjusted EBITDA 45,651 44,510
Adjustments to EBITDA
Costs related to acquisition –6,150
Costs related to restructuring –1,805
Costs related to listing –3,764
EBITDA 37,696 40,746
Depreciation and amortization –8,199 –1,976
EBIT 29,497 38,770
Adjusted EBITA 44,575 43,921
Adjustments to EBITA
Costs related to acquisition –6,150
Costs related to restructuring –1,805
Costs related to listing –3,764
EBITA 36,620 40,157
Amortization –2,465 –1,387
PPA amortization –4,658
EBIT 29,497 38,770
Adjusted EBIT 42,110 42,534
Adjustments to EBIT
Costs related to acquisition –6,150
Costs related to restructuring –1,805
Costs related to listing –3,764
PPA amortization –4,658
EBIT 29,497 38,770
*
Presented as a combination of carve-out financial information for 1 January – 30 June 2022 and
consolidated financial information for 1 July – 31 December 2022. Refer to note 1 Basis of preparation,
accounting principles and carve-out principles.
39
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Board of Directors’ Report
Key figures
Shares and shareholders
Calculation of key ratios
Consolidated financial statements
Shares and share ownership distribution, 31 Dec 2023
Shares
Number of
shareholders
% of
shareholders Total shares % of shares
1–100 10,736 31.78% 474,905 0.27%
101–1,000 17,823 52.75% 6,754,996 3.87%
1,001–50,000 5,138 15.21% 19,522,119 11.18%
50,001–100,000 31 0.09% 2,103,480 1.20%
100,001– 57 0.17% 145,817,665 83.48%
Total 33,785 100.00% 174,673,165 100.00%
Shareholders by category, 31 Dec 2023 Total shares % of shares
Private individuals 86,335,021 49.43%
Pension & Insurance companies 26,231,457 15.02%
Fund companies 19,374,857 11.09%
Companies 12,104,913 6.93%
Foundations 1,722,476 0.99%
Nominee registered 21,577,228 12.35%
Others 7,327,213 4.19%
Total 174,673,165 100.00%
Largest shareholders and administrative register
Owner Shares % of shares % of votes
Risto Siilasmaa 60,027,957 34.37% 34.37%
Nordea Nordic Small Cap Fund 11,557,976 6.62% 6.62%
Keskinäinen Eläkevakuutusyhtiö Ilmarinen 6,273,663 3.59% 3.59%
Mandatum Henkivakuutusosakeyhtiö 4,320,119 2.47% 2.47%
Keskinäinen Työeläkevakuutusyhtiö Varma 3,970,660 2.27% 2.27%
Keskinäinen Työeläkevakuutusyhtiö Elo 3,953,000 2.26% 2.26%
Valtion Eläkerahasto 3,900,000 2.23% 2.23%
Danske Invest Finnish Equity Fund 3,121,295 1.79% 1.79%
Nordea Finnish Stars Fund 2,702,453 1.55% 1.55%
Op Fin Small Cap 2,418,120 1.38% 1.38%
Administrative register Shares % of shares % of votes
Skandinaviska Enskilda Banken 15,460,024 8.85% 8.85%
Citibank Europe Plc 5,096,747 2.92% 2.92%
Other registers 1,009,980 0.58% 0.58%
Other shareholders 153,106,414 87.65% 87.65%
Total 174,673,165 100.00% 100.00%
Own shares F-Secure Corporation
Total 174,673,165 100.00%
Ownership of management
Board of Directors Shares % of shares
Risto Siilasmaa 60,027,957 34.37%
Pertti Ervi 104,669 0.06%
Petra Teräsaho 13,380 0.01%
Thomas Jul 10,592 0.01%
Madeleine Lassoued 10,592 0.01%
Sami Salonen 5,696 0.00%
Total 60,172,886 34.45%
Leadership team Shares % of shares
Antero Norkio 65,675 0.04%
Timo Laaksonen 30,517 0.02%
Sari Somerkallio 10,803 0.01%
Richard Larcombe 8,472 0.00%
Kitta Virtavuo 2,538 0.00%
TL Viswanathan 27,880 0.02%
Toby White 3,394 0.00%
Firas Azmeh
Total 149,279 0.09%
Shares and shareholders
40
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Board of Directors’ Report
Key figures
Shares and shareholders
Calculation of key ratios
Consolidated financial statements
Calculation of key ratios
Key figure Definition
EBITDA EBIT + Depreciation, amortisation and impairment
EBITA EBIT + Amortisation and impairment
EBIT Result before taxes and net financial items
Adjusted EBITDA EBITDA before items affecting comparability
Adjusted EBITA EBITA before items affecting comparability
Adjusted EBIT EBIT before items affecting comparability
Items affecting comparability
Items affecting comparability are associated with
restructuring, acquisition and cost related to listing
Operating expenses
Sales and marketing, research and development, and
administration expenses
Capital expenditure
Corresponds to the Statement of Cash Flow line item
Investments in intangible and tangible assets
Operating cash flow
Corresponds to the Statement of Cash Flow line item
Cash flow from operations
Net debt (+) / Net cash (–)
Interest-bearing liabilities – Interest-bearing receivables
– Cash and cash equivalents
Key figure Definition
Equity ratio, %
Total equity
× 100
Total assets
Cash conversion, %
(Adjusted EBITDA – Capital expenditure –/+ Change in
net working capital)
× 100
Adjusted EBITDA
Earnings per share, EUR
Profit attributable to equity holders of the company
Weighted average number of outstanding shares
Earnings per share, excluding
PPA, EUR
(Profit attributable to equity holders of the company +
PPA amortization adjusted by tax impact)
Weighted average number of outstanding shares
Shareholders’ equity
per share, EUR
Equity attributable to equity holders of the company
Number of outstanding shares at the end of period
P/E ratio
Closing price of the share (at period end)
Earnings per share (annualized)
Gearing, %
(Interest-bearing liabilities – cash and bank)
× 100
Total equity
41
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Board of Directors’ Report
Key figures
Shares and shareholders
Calculation of key ratios
Consolidated financial statements
Statement of comprehensive of income
EUR 1,000 Note 2023 2022*
REVENUE (3) 130,371 111,017
Cost of revenue (7) –16,025 –9,342
GROSS MARGIN 114,346 101,675
Other operating income (4) 830 1,076
Sales and marketing (5, 6, 7) –34,698 –29,857
Research and development (5, 6, 7) –25,583 –16,434
Administration (5, 6, 7) –25,398 –17,690
EBIT 29,497 38,770
Financial income (9) 6,995 1,476
Financial expenses (9) –8,815 –1,691
PROFIT (LOSS) BEFORE TAXES 27,677 38,556
Income tax (10) –5,316 –8,403
RESULT FOR THE FINANCIAL YEAR 22,360 30,153
Other comprehensive income
Exchange difference on translation of foreign operations –1,990 79
COMPREHENSIVE INCOME FOR THE YEAR 20,370 30,233
Result of the financial year is attributable to:
Equity holders of the parent 22,360 30,153
Comprehensive income for the year is attributable to:
Equity holders of the parent 20,370 30,233
Earnings per share
– basic and diluted (11) 0.13 0.17
* Presented as a combination of carve-out financial information for 1 January – 30 June 2022 and consolidated financial information for
1 July – 31 December 2022. Comparison period is presented on a carve-out basis. Refer to note 1 Basis of preparation, accounting principles
and carve-out principles.
Earnings per share is based on the average number of shares.
Consolidated
financial
statements
42
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
Statement of financial position
EUR 1,000 Note 2023 2022
ASSETS
NON-CURRENT ASSETS
Tangible assets (14) 360 154
Right-of-use assets (5, 14) 1,257 1,834
Intangible assets (14) 125,179 9,064
Goodwill (13, 14) 88,361
Deferred tax assets (22) 883 93
Interest-bearing receivables (16, 21) 3,658 3,693
Total non-current assets 219,698 14,838
CURRENT ASSETS
Inventories (15) 35 41
Accrued income (17) 1,953 1,651
Trade and other receivables (16, 17, 21) 35,604 23,040
Income tax receivables (17) 2,108 143
Cash and cash equivalents (16, 21) 15,867 22,953
Total current assets 55,568 47,828
TOTAL ASSETS 275,266 62,667
EUR 1,000 Note 2023 2022
EQUITY AND LIABILITIES
SHAREHOLDER’S EQUITY (18)
Share capital 80 80
Translation differences –2,070 –79
Reserve for invested unrestricted
equity 9,590 9,590
Retained earnings 25,485 15,213
Equity attributable to equity holders
of the parent 33,086 24,804
NON-CURRENT LIABILITIES
Interest bearing liabilities, non-current (5, 20, 21) 165,963 6,381
Deferred tax liabilities (22) 2,064 528
Other non-current liabilities (23) 5,888 3,702
Total non-current liabilities 173,915 10,612
CURRENT LIABILITIES
Interest bearing liabilities, current (5, 20, 21) 30,965 957
Trade and other payables (21, 23) 14,182 7,818
Provisions (23) 1,739
Income tax liabilities (23) 1,592 1,152
Other current liabilities (23) 19,788 17,324
Total current liabilities 68,265 27,251
TOTAL EQUITY AND LIABILITIES 275,266 62,667
43
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
Statement of cash flows
EUR 1,000 2023 2022*
Cash flow from operations
Result for the financial year 22,360 30,153
Adjustments
Depreciation and amortization 8,199 1,976
Other adjustments 598 676
Financial income and expenses 1,759 214
Income taxes 5,316 8,403
Cash flow from operations before change in
working capital 38,232 41,423
Change in net working capital
Current receivables, increase (–), decrease (+) –8,092 3,238
Inventories, increase (–), decrease (+) 6 10
Non-interest bearing debt, increase (+),
decrease (–) 7,425 –288
Cash flow from operations before financial items
and taxes 37,572 44,383
Interest expenses paid –7,178 –63
Interest income received 739 180
Other financial income and expenses 4,476 –1,156
Income taxes paid –5,499 –6,963
Cash flow from operations 30,109 36,381
EUR 1,000 2023 2022*
Cash flow from investments
Investments in intangible and tangible assets –7,920 –4,635
Proceeds from sale of intangible and tangible
assets 0 1
Other investments –4
Acquisition of subsidiaries, net of cash acquired –207,764
Cash flow from investments –215,684 –4,638
Cash flow from financing activities
Increase in interest bearing liabilities 202,000 5,663
Increase in long term receivables –3,789
Repayments of lease liabilities –1,070 –612
Repayments of interest-bearing liabilities –10,000
Dividends paid –12,227
Equity financing with WithSecure, net –10,068
Cash flow from financing activities 178,703 –8,806
Change in cash –6,872 22,937
Cash and bank at the beginning of the period 22,953
Effects of exchange rate changes –214 16
Cash and bank at period end 15,867 22,953
* Presented as a combination of carve-out financial information for 1 January – 30 June 2022 and
consolidated financial information for 1 July – 31 December 2022. Comparison period is presented on a
carve-out basis. Refer to note 1 Basis of preparation, accounting principles and carve-out principles.
44
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
Statement of changes in equity
Attributable to the owners of F-Secure
EUR 1,000 Note
Invested equity
and retained
earnings Share capital
Unrestricted
equity reserve
Retained
earnings
Translation
difference Total
Carve-out invested equity 31 December 2021 9,546 9,546
Result of the period 14,521 14,521
Translation difference –151 –151
Total comprehensive income for the period 14,370 14,370
Cost of share-based payments (19) –208 –208
Equity transactions with WithSecure –14,796 –14,796
Carve-out invested equity 30 June 2022 8,912 8,912
Demerger 30 June 2022 –8,912 80 9,590 –759
Result of the financial year 15,632 –79 15,553
Total comprehensive income for the year 15,632 –79 15,553
Cost of share-based payments (19) 339 339
Equity 31 December 2022 80 9,590 15,213 –79 24,804
Result of the financial year 22,360 –1,990 20,370
Total comprehensive income for the year 22,360 –1,990 20,370
Cost of share-based payments (19) 139 139
Dividend –12,227 –12,227
Equity 31 December 2023 80 9,590 25,485 –2,070 33,086
Refer to note 1 Basis of preparation, accounting principles and carve-out principles, for details of the financial information for comparison period prepared on an actual basis (financial position as at 31
December 2022), combining actuals and carve-out figures for income statement 2022.
45
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
1. Basis of preparation, accounting
principles and carve-out principles
1.1 Basis of preparation
Background
F-Secure is a Finnish and globally operating
cybersecurity company. The parent company of
the Group is F-Secure Corporation incorporated in
Finland and domiciled in Helsinki, Finland. Company’s
registered address is Tammasaarenkatu 7, 00180
Helsinki. F-Secure operates globally with presence in
multiple locations, and its headquarters is located in
Helsinki.
F-Secure Corporation formed a separate legal group
(“F-Secure”, the “Group”) as of 30 June 2022 when all
assets and liabilities of the Consumer Security Business
were transferred from WithSecure Corporation
(“WithSecure”) to a company incorporated in
connection with the partial demerger (“Demerger”) and
named F-Secure Corporation (“F-Secure”). The trading
in F-Secure’s shares on Nasdaq Helsinki began 1 July
2022.
A copy of consolidated financial statements can be
downloaded on www.f-secure.com or can be received
from the parent company’s registered address. These
financial statements were authorized for issue by the
Board of Directors on 15 February 2024.
F-Secure business
F-Secure designs and offers security and privacy
products and services that help millions of consumers
to protect themselves against online threats. F-Secure’s
offering includes a comprehensive range of security
and privacy products and services related to endpoint
security, privacy protection, password management
and digital identity protection, and router security that
protects consumers’ entire connected home. The
majority of F-Secure’s sales come from selling products
and services through its extensive and global Channel
Partner network, including approximately 200 Channel
Partners. Channel Partners include, for example,
communication service providers, retailers, banks, and
insurance companies. In addition to selling products
through Channel Partners, F-Secure makes standalone
and all-in-one security offerings available to consumers
through various e-commerce channels such as mobile
application stores and its own online store.
Basis of preparation for the
consolidated financial statements
The consolidated financial statements for the year
ended 31 December 2023 have been prepared for
the purpose of presenting the financial position,
results of operations and cash flows of F-Secure on
a consolidated basis. The comparative figures have
been prepared on a consolidated and carve-out basis.
Until 30 June 2022 the financial statements have been
presented on a carve-out basis, as explained in the note
1.3 Carve-out Principles and following the formation of
the legal group on 1 July 2022, the financial statements
have been prepared on a consolidated basis, as
explained in the note 1.1 Basis of preparation, section
Background. Thus, the statement of comprehensive
income and statement of cash flows for the year ended
31 December 2022 are presented as a combination of
carve-out financial information for the period 1 January
– 30 June 2022 and consolidated financial information
for the period 1 July – 31 December 2022. Management
believes that such presentation of financial information
results in a faithful representation of the financial
performance and cash flows for F-Secure providing
investors with relevant information on a full financial
year basis. The balance sheet figures as at 31
December 2023 and 2022 are reported consolidated
figures.
The consolidated financial statements of F-Secure
Corporation of 2023 have been prepared in accordance
with IFRS Accounting Standards, applying the IAS and
IFRS standards as well as SIC and IFRIC interpretations
that were in force and had been approved by the EU by
31 December 2023. In addition, Finland’s accounting
and limited liability company legislation and official
regulations have also been considered in the
preparation of the consolidated financial statements.
F-Secure publishes also its financial statements in
XHTML format in accordance with the European Single
Electronic Format (ESEF) reporting requirements. In
line with the ESEF requirements, the primary financial
statements have been labelled with XBRL tags. Notes
to financial statements have been labelled with XBRL
block tags. The ESEF reporting has not been subject to
audit.
The consolidated financial statements have been
prepared on a going concern basis and management
has not recognized any material uncertainties related
to continuity of operations.
The financial information is presented in thousands of
euros unless otherwise stated. All figures have been
rounded which may cause the sum of individual figures
to deviate from the sum of the presented line-item
totals.
1.2 Accounting principles
(as from 1 July 2022)
Accounting principles applied in F-Secure’s financial
statements. A separate section on carve-out principles
follows the accounting principles section.
Notes to the financial statements
46
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
Management judgment on significant
accounting principles and use of estimates
The preparation of consolidated financial statements
requires the use of estimates and assumptions as well
as the use of judgment when applying accounting
principles. These affect the contents of the financial
statements, and it is possible that actual results may
differ from estimates.
Estimates made in connection with the preparation
of financial statements are based on management’s
best knowledge at the reporting date. Estimates build
upon past experience as well as assumptions of the
future development of the economic environment of
the Group. Revisions in estimates and assumptions
are recognized in the period they occur and in future
periods if the revision affects both current and future
periods.
The following areas require significant judgement and
estimation:
– Business combinations: Net assets acquired through
business combinations are measured at fair value.
The measurement of fair value is based on valuation
methods which are subject to management judg
-
ment (See Note 12. Acquisitions).
– Impairment testing: Recoverable amount of goodwill
from acquisitions is based on present value of
estimated future cash flows which are subject to
management judgment. In addition to goodwill the
intangible assets that are not yet ready for use are
tested annually for impairment. The recoverable
amount of these assets is based on estimated future
cash flows from sales and/or use of the asset.
– Deferred tax assets from tax losses: The Group hasn’t
got any recognized deferred tax assets from tax
losses.
– Expected credit losses: The allowance for expected
credit losses in F-Secure’s statement of financial
position is EUR 547 thousand as at 31 December
2023 (See Note 16. Financial assets).
– Share-based payments: The Group’s share-based
incentives programs are mainly tied to market-based
conditions. Management uses external valuations
in determining the fair value of the shares granted
under these incentive programs. The method for the
valuation is Monte Carlo Simulation.
– Provisions: The amount of provision is the best
estimate of the cost required to settle the obligation
at the reporting date. Provisions are reviewed on a
regular basis and adjusted when necessary.
Consolidation principles
The consolidated financial statements incorporate
the financial statements of F-Secure Corporation
and entities controlled by F-Secure Corporation.
Consolidation is done using the acquisition method and
begins when control over the subsidiary is obtained.
The consolidation stops when the control ceases. The
Group does not have any associated companies nor is
there any non-controlling interest in the Group.
All intra-group transactions and balances, including
unrealized profits arising from intra-group transactions,
have been eliminated on consolidation. Where
necessary, accounting policies of the subsidiaries have
been adjusted to ensure consistency with the policies
adopted by the Group.
Transactions in foreign currency
The financial statements are presented in euros,
which is the functional and presentation currency of
F-Secure’s parent company. At each reporting date
for the purpose of presenting financial statements,
the income statements of foreign Group companies
are translated at the average exchange rates for the
reporting period and the balance sheets are translated
using the European Central Bank’s exchange rates
prevailing on the reporting date. Foreign currency
transactions are translated using the exchange rates
prevailing at the dates of the transactions. Exchange
rate gains and losses are recognized in financial items
in the statement of comprehensive income.
Revenue recognition
F-Secure provides a comprehensive range of endpoint
protection, privacy and password management
solutions, and security for all consumers’ connected
devices at home. Revenue derives from the sale of
security products through service provider and direct
consumer channels. The majority of revenue comes
from the sale of endpoint protection products through
the service provider partner channel, and F-Secure also
sells consumer products through various retail partners,
as well as F-Secure’s own web shop. The main products
and service portfolios are:
– Security Suite: F-Secure Total deployed as an all-
in-one application that provides complete security,
privacy and identity protection on consumers’
personal devices or any subsets of its protection
modules. This includes Mobile Security products
obtained when acquiring Lookout Life.
– Embedded Security: Comprehensive portfolio
of security and privacy Software Development
Kits (SDKs) and cloud Application Programming
Interfaces (APIs) embedded in partner app or
service, including F-Secure Sense providing router
security. This includes embedded security capabili
-
ties obtained when acquiring Lookout Life.
– Services: F-Secure security business platform based
scalable expert and cloud-based services supporting
both Security Suite and Embedded Security such as
47
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
delivery and integration, customer care, and partner
success services to support its Partner Business.
Products are treated as Security-as-a-Service as
they do not include a license of intellectual property.
Customers are provided with access to continuously
updated software. According to company’s assessment
sales transactions in principle have only a single
performance obligation which is recognized over time
on a straight-line basis for the contract period. The
typical length of a contract period is 12, 24, or 36 months.
Generally, the term between invoicing and when
payment is due is not significant. Advance payment
is customary for customer contracts via the direct
consumer channel whereas the partner channel is
mainly invoiced on a monthly basis.
Pensions
All of F-Secure’s pension arrangements are defined
contribution plans. Contributions to defined
contribution plans are recognized in the statement
of comprehensive income in the period to which the
contributions relate.
Leases
Leases are recorded in the balance sheet as right-of-use
asset with a corresponding lease liability. Right-of-use
assets and lease liabilities are initially measured at the
present value of the remaining lease payments. An
incremental borrowing rate is applied in discounting the
remaining payments. F-Secure’s incremental borrowing
rate varies between 1.45% and 6.9% depending on the
company’s credit rating, geographical location of the
leased asset and lease period, and the lower rate of
1.45% applies to the majority of the right-of-use assets.
F-Secure’s right-of-use assets are comprised of leased
offices and cars.
Changes in estimates are accounted for at each
reporting date. In measuring the present value of the
liabilities arising from leases, any service-related fees
are excluded from the lease payment. F-Secure’s lease
contracts do not contain residual value guarantees or
purchase options. The estimated duration for on-going
contracts varies between 1 to 2 years and the total
liability from on-going contracts is EUR 1,263 thousand
(EUR 1,840 thousand) (see Note 5. Leases and Note 20.
Financial liabilities).
Income taxes
The income tax expense in statement of
comprehensive income represents the sum of current
taxes and deferred taxes. Current taxes are calculated
on the taxable income for all Group companies in
accordance with the local tax rules. Deferred taxes,
resulting from temporary differences between the
financial statement and the income tax basis of assets
and liabilities, use the enacted tax rates in effect in the
years in which the differences are expected to reverse.
Deferred tax assets are recognized to the extent that it
is probable that future taxable profit will be available.
Deferred tax liabilities are recognized for all temporary
differences.
Deferred tax assets and liabilities are offset when there
is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to the
same taxation authority and the Group intends to settle
the assets and liabilities on a net basis.
Business combinations
Acquisition method is used for accounting the
acquisition of businesses. The consideration
transferred in a business combination is measured
at fair value, which is calculated as the sum of the
acquisition date fair values of assets transferred by
the Group and liabilities incurred by the Group to the
former owners of the acquiree. Costs related to the
acquisition are recognized in profit and loss statement.
The identifiable assets acquired and the liabilities
assumed are recognized at fair value at the acquisition
date except for deferred tax assets or liabilities which
are measured in accordance with IAS 12 Income taxes.
Goodwill is measured as the excess of the transferred
consideration over the net amount of the acquired
identifiable assets and assumed liabilities.
Goodwill
Goodwill is initially recognized and measured in
business combinations as set out above. Goodwill is
not amortized but is instead tested for impairment at
least annually and whenever there is an indication
that it may be impaired. For the purpose of impairment
testing goodwill has been allocated to cash generating
units expected to benefit from the synergies of the
combination. If the recoverable amount of the cash
generating unit is less than the carrying amount of the
unit, the impairment loss is allocated first to reduce the
carrying amount of any goodwill allocated to the unit
and then to the other assets of the unit. If an impairment
loss for goodwill is recognized it will not be reversed
in the subsequent periods. Goodwill is recorded at
historical cost less accumulated impairment losses.
Intangible assets
Research and development expenditure
Research expenditure is recognized as an expense at
the time it is incurred. Development expenditure on
new products or product versions with significant new
features are recognized as intangible assets when
F-Secure has the technical feasibility to complete
the asset, has the ability and intention to use or
sell the asset; can demonstrate that the asset will
48
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
generate future economic benefits; has resources
available to complete the asset; and has the ability to
measure reliably the expenditure during development.
Development assets relate to developing new products
and services or developing essential improvements
for products and services. Amortization is recorded
once the asset is ready on a straight-line basis over
the estimated useful life, which is 3–5 years for these
assets.
Intangible assets acquired in business combinations
Intangible assets acquired in business combinations
and recognized separately from goodwill are initially
recognized at fair value on the acquisition date.
Subsequent to initial recognition these assets are
reported at initial value less accumulated amortization
and accumulated impairment losses. Intangible assets
acquired in business combinations include technology
and customer relationships, which all have a finite
useful life. The estimated useful lives for intangible
assets acquired in business combinations are:
Technology 15 years
Customer relationships 5–15 years
Other intangible assets
Other intangible assets include intangible rights and
software licenses, all with a finite useful life. Other
intangible assets include also partially or completely
internally developed intangible assets which e.g. relate
to platforms. Other intangible assets are recorded at
historical cost less accumulated amortization and
possible impairment. Amortization is recorded on a
straight-line basis over the estimated useful life, which
is 3–5 years for these assets.
Tangible assets
Tangible assets are recorded at historical cost less
accumulated depreciation and possible impairment.
Depreciation is recorded on a straight-line basis over
the estimated useful life of an asset. The estimated
useful lives of tangible assets are as follows:
Machinery and equipment 2–8 years
Other tangible assets 2 years
Impairment of assets
At each reporting date, or more frequently if needed,
F-Secure assesses whether there is any indication
that an asset may be impaired. Where an indicator of
impairment exists, F-Secure makes a formal estimate
of the recoverable amount. The recoverable amount
of goodwill and intangible assets that are not ready for
use are estimated annually regardless of whether any
indication of impairment exists. The intangible assets
that are not ready for use are software projects which
cannot be assessed on its own because they don’t
have independent cash flow. If it is stated at the end of
reporting period that the projects are finalized and will
be taken in use, there is no need for impairment testing.
Intangible assets that are not ready for use are tested as
part of that cash generating unit where they belong to.
Where the carrying amount of an asset exceeds its
recoverable amount, the asset is considered impaired
and the carrying amount is reduced to its recoverable
amount. The recoverable amount is the fair value of an
asset less costs of disposal or value in use, whichever is
higher. An impairment loss is recorded in the statement
of comprehensive income.
A previously recognized impairment loss is reversed
only if there has been a change in the estimates used
to determine the asset’s recoverable amount since the
last impairment loss was recognized. The maximum
reversal of an impairment loss amounts to no more
than the carrying amount of the asset if no impairment
loss had been recognized, net of depreciation.
Inventories
Inventories are measured at the lower of cost and
net realizable value. Cost is determined by the first-in
first-out method. Net realizable value is the estimated
selling price that is obtainable, less estimated costs of
completion and the estimated costs necessary to make
the sale.
Financial instruments
Financial instruments are originally measured at fair
value. Subsequentially, financial assets are classified
into the following categories: at amortized cost or
fair value through profit and loss. The classification is
made at the time of acquisition and is based on the
cash flow characteristics and the business model of
managing the financial asset. Financial liabilities are
subsequentially classified and recognized at amortized
cost or at fair value through profit and loss.
Financial instruments measured at fair value through
profit and loss include derivative instruments to
which hedge accounting is not applied. Realized and
unrealized gains or losses arising from changes in fair
values are recognized in the profit and loss in the period
in which they incur.
According to F-Secure’s treasury policy, company may
enter derivative contracts to hedge against exchange
rates and interest rates fluctuations. Company has no
outstanding derivative contracts on the reporting date
31.12.2023.
Financial instruments are classified as current financial
instruments unless the maturity exceed 12 months from
the end of the reporting period.
49
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
Financial assets
Financial assets are originally measured at fair value.
Trade receivables are originally measured with
transaction price and later with amortized cost reduced
by an expected credit loss for trade receivables. Trade
receivables and other receivables are written off from
the balance sheet as the rights to associated cash
flows end or become transferred to the counterparty.
An expected credit loss is recognized for trade
receivables according to IFRS 9, Financial Instruments.
The amount of expected credit loss is updated at
each reporting date to reflect changes in credit risk
since initial recognition of the respective financial
instrument. The expected credit loss is estimated
using a provision matrix where trade receivables are
grouped based on historical credit loss experience and
characteristics that depict the credit risk of receivables
(e.g. geographical area and days past due).
Cash and cash equivalents in the balance sheet
comprise cash at bank, deposits held at bank, and
other highly liquid short-term investment with original
maturity less than 3 months.
Financial liabilities
F-Secure classifies bank loans, trade payables, lease
liabilities and other interest-bearing liabilities as
financial liabilities. Bank loans are initially recognized at
the fair value of consideration plus directly attributable
transaction costs. After initial recognition, bank loans
are measured at amortized cost using the effective
interest method. Other financial liabilities are measured
at amortized cost.
Provisions
Provisions are recognized when F-Secure has a present
obligation (legal or constructive) as a result of a past
event, the outflow of resources is probable, and a
reliable estimate of the amount of the obligation can be
made. The amount recognized is a best estimate of the
consideration required to settle the obligation at each
reporting date. Risks and uncertainties are taken into
account when making the estimate.
Management has recognized a provision of EUR
1,539 thousand related to restructuring and EUR 200
thousand related to certain provisional costs and
expenses incurred as at 31 December 2023.
Share-based payment transactions
F-Secure provides incentives to employees in the form
of equity-settled share-based instruments. F-Secure’s
share-based incentive programs are targeted to
F-Secure’s key personnel. The programs are equity-
settled. Equity-settled program is valued at fair value at
grant date, and the expense is recognized evenly in the
statement of comprehensive income over the vesting
period with the counter-entry in retained earnings. In
programs with market based conditions, the fair value
is determined by utilizing commonly used valuation
techniques. If a person leaves the company before
vesting, the reward is forfeited. F-Secure updates its
estimate of the ultimate number of shares at each
reporting date. These changes in the estimate are
recorded in the statement of comprehensive income.
Presentation of expenses
Classification of expenses by function has been made
by presenting direct expenses in their respective
functions.
Operating result
IAS 1, Presentation of Financial Statements, does not
define the concept of Earnings before interest and
taxes (EBIT). F-Secure has defined it as follows: EBIT is
the net amount, which consists of revenue and other
operating income less cost of revenue, personnel costs,
depreciation and amortization, possible impairment
losses, and other operating expenses.
New standards and interpretations
not yet effective
Effective 1 January 2024:
Amendments to IAS 1, Classification of Liabilities
as Current or Non-current, amendments clarify the
classification of a liability as current or non-current
in a situation where an entity has a right to defer its
settlement for at least twelve months. In accordance
with the amended guidance, a liability that is due within
12 months after the reporting date should be presented
as non-current if the entity has a right to extend it for at
least 12 months after the reporting date. In this case,
the liability is classified as non-current on reporting
date even regardless of the probability or intention of
the management to settle it within the next 12 months.
Similarly, a liability is classified as non-current even if
the right to extend it for at least 12 months is conditional
and the entity is not expected to meet these conditions
provided that the covenant assessment is taking place
only after the end of the reporting period.
New or amended standards or interpretations are
not expected to have an impact on the financial
statements.
1.3 Carve-out principles
Basis of preparation for the carve-out
financial information (until 30 June 2022)
F-Secure operated as part of WithSecure until the
completion of the partial demerger on 30 June 2022.
The consolidated financial statements have been
prepared on a carve-out basis until 30 June 2022 as
F-Secure did not operate and report as a separate legal
50
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
consolidated group throughout the historical periods
presented.
The carve-out financial information of F-Secure until
30 June 2022 has been prepared on a carve-out
basis from WithSecure’s consolidated financial
statements using the historical book values for
income and expenses, assets and liabilities and cash
flows attributable WithSecure’s Consumer Security
Business transferred to the F-Secure through the partial
demerger. WithSecure’s Consumer Security Business
has historically operated worldwide in legal entities
that comprise both Consumer Security Business and
Corporate Security Business, including the parent
company WithSecure Corporation. Therefore assets,
liabilities, income, revenue and expenses and cash
flows which are either directly attributable to, have
been allocated to or will transfer to F-Secure have been
included in the carve-out financial information.
The carve-out financial information has been prepared
in accordance with International Financial Reporting
Standards (IFRS) as adopted by the EU by 31 December
2022, and in consideration of the specified carve-out
principles described in “Carve-out principles applied
in the F-Secure carve-out financial information” for
determining which assets and liabilities, income and
expense as well as cash flows are allocated to F-Secure
for the purpose of presenting the carve-out financial
information.
IFRS does not provide direct guidance for the
preparation of carve-out financial information, and
accordingly in preparing the F-Secure’s carve-out
financial information, certain accounting conventions
commonly used for the preparation of historical
carve-out financial information have been applied as
described below.
F-Secure’s carve-out financial information does not
necessarily illustrate the results of operations, financial
position and cash flows that F-Secure would have
generated had it been an independent group. Further,
the objective of the carve-out financial information is
neither to illustrate or be indicative of F-Secure’s future
performance, financial position or cash flows.
Carve-out principles applied in the F-Secure
carve-out financial information
The following summarizes the carve-out principles
applied in preparing F-Secure’s carve-out financial
information.
The carve-out financial information reflects the revenue
and expenses attributable to F-Secure. Revenue
and operating expenses of F-Secure that have been
specifically identified as pertaining to F-Secure have
been attributed directly without separate allocation and
apportionment.
Balance sheet items have been generally attributed
based on their actual use during the periods presented,
that is, if assets and liabilities are primarily used by
and relate to F-Secure, they have been attributed to
the carve-out statement of financial position. If the
asset or liability is not legally transferring to F-Secure
in connection with the Demerger, the corresponding
cost of using the asset/liability has been included in
the carve-out statement of comprehensive income as
described in more detail below.
The carve-out financial information also includes
the separate allocation of income, expense, assets,
liabilities and cash flows which are based on
management judgement, assumptions and estimates
as described below. The most significant estimates,
judgements and assumptions relate to the allocation
of the costs of certain centrally provided shared
services, leasing arrangements, shared tangible and
intangible assets, cash management and financing,
determination on current and deferred income taxes
and invested equity.
Management considers that the allocations described
below have been made on a reasonable basis, but they
are not necessarily indicative of the income and costs
that would have been incurred if F-Secure had been
a standalone entity preparing consolidated financial
statements for the periods presented.
The structure of the carve-out financial information
Prior to Demerger, F-Secure did not represent
a separate group of legal entities but combines
operations that are dedicated to F-Secure Business
but that have historically operated as part of the
WithSecure entities. The following represents an
overview of the WithSecure legal entities that
comprised the portion of the results of operations and
financial position dedicated to the F-Secure Business
and thus form the basis for the carve-out financial
information:
– WithSecure Corporation (former F-Secure
Corporation), Finland
– F-Secure Inc, United States
– WithSecure GmbH (former F-Secure GmbH),
Germany
– F-Secure (UK) Ltd, United Kingdom
– WithSecure KK (former F-Secure KK), Japan
– WithSecure AB (former F-Secure AB), Sweden
– WithSecure Srl (former F-Secure Srl), Italy
– WithSecure Sp. z.o.o. (former F-Secure Sp z.o.o.),
Poland
– WithSecure B.V. (former F-Secure B.V.), the
Netherlands
51
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
– F-Secure Iberia SL, Spain,
– WithSecure (M) Sdn Bhd (former F-Secure
Corporation (M) Sdn Bhd), Malaysia
– WithSecure SARL (former F-Secure SARL), France
– F-Secure Pvt Ltd, India
– WithSecure A/S (former F-Secure Danmark A/S),
Denmark
– F-Secure do Brasil tecnol. Da informãcao Ltda, Brazil
– WithSecure Norge AS (former F-Secure Norge AS),
Norway
F-Secure’s structure in the carve-out financial
information does not represent the legal structure after
the Demerger.
Inter-company transactions and
transactions with related parties
Intercompany transactions, including assets and
liabilities between the F-Secure Business within
WithSecure legal entities have been eliminated
from F-Secure’s carve-out financial information.
Intercompany transactions and balance sheet items
between the Consumer Security Business and the
Corporate Security Business, previously considered as
intercompany transactions in WithSecure reporting,
have been reported as transactions with related parties
in the carve-out financial information. Related party
receivables from the remaining WithSecure operations
are presented separately in the statement of financial
position in the carve-out financial information.
Income statement transactions are presented within
the related statement of comprehensive income line
item. F-Secure sells consumer products to WithSecure
and the amounts in the carve-out financial information
were as follows during the periods presented: EUR
50 thousand in the period of 1 January – 30 June
2022. F-Secure purchases corporate products from
WithSecure and the amounts were as follows during
the periods presented: EUR 171 thousand in the period of
1 January – 30 June 2022.
Centrally provided shared services
WithSecure has historically provided shared support
services to Consumer Security and Corporate
Security Businesses. WithSecure support functions
include Security Research & Technologies (“SRT”)
and Information & Business Services (“IBS”). SRT is a
common R&D unit supporting the whole WithSecure.
IBS contains a 24/7 customer support and IT services.
WithSecure also has the following common shared
functions: People, Operations & Culture, Finance,
Legal, Strategy, Marketing and Management (“Other
Functions”). SRT, IBS and Other Functions are defined
together as “Group Functions”.
Historically, WithSecure shared Group Function costs
have been allocated to businesses using pre-defined
allocation methods. The allocation methods used have
been defined to reflect the nature of the underlying
function and the utilization of the services of the
functions. In the carve-out financial information,
the WithSecure shared Group Function costs have
been allocated to F-Secure based on utilization of the
services such as certain server hosting costs that have
been allocated based on the usage of the service or
cloud servers and customer care related costs that
have been allocated based on the support provided to
F-Secure or using pre-defined allocation keys such as
revenue or number of employees.
Management considers these allocations to be a
reasonable reflection of the utilization of services
provided. These allocated expenses have been affected
by the arrangements that existed in WithSecure and
are not necessarily representative of the position that
may prevail in the future for F-Secure.
Centrally provided shared services costs allocated to
the carve-out financial information has been split to
different profit and loss statement categories as follows:
52
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
EUR 1,000 1–6/2022
Cost of revenue –1,978
Other operating income 371
Sales and marketing –2,991
Research and development –3,595
Administration –7,052
Total –15,246
Shared assets and leasing arrangements
with remaining WithSecure operations
Historically, Consumer Security Business and
Corporate Security Business have operated in shared
leased premises and offices in all locations, including
the following main premises: Helsinki and Oulu in
Finland, Poznan, Poland, and Kuala Lumpur, Malaysia.
In the carve-out financial information, no office lease
agreements have been allocated to F-Secure as
F-Secure is not a legal owner of the lease agreements
and those lease agreements have not transferred to
F-Secure in connection with the Demerger. Instead, an
expense related to the usage of the premises has been
included in the carve-out financial information. The
expenses allocated to F-Secure for usage of the leased
shared assets during the periods presented were EUR
727 thousand in first half of 2022 prior to Demerger.
Lease expenses related to machinery and cars, that are
shared with the remaining WithSecure operations, have
been allocated to the carve-out financial information to
reflect usage of these assets. These lease agreements
will not transfer to F-Secure in connection with the
Demerger. The lease expense allocations in the
carve-out financial information related to usage by
F-Secure during the periods presented were EUR 7
thousand in the first half of 2022 prior to Demerger.
All the above lease expenses were presented as part
of operating costs and no right-of-use assets or lease
liabilities have been allocated to the carve-out financial
information. Lease agreements directly attributable to
F-Secure that are transferring to F-Secure in connection
with the Demerger have been presented as lease
agreements of F-Secure (see notes 5, 14 and 20 for more
information).
Certain computers and other IT equipment have
been shared between Consumer Security Business
and Corporate Security Business. These IT related
assets will not transfer to F-Secure in connection
with the Demerger. An expense was allocated to the
carve-out financial information to reflect the usage
of these assets. The allocated expenses included in
the carve-out financial information during the periods
presented were EUR 65 thousand in first half of 2022
prior to Demerger.
Certain intangible assets, mainly computer software,
have also been shared between Consumer Security
Business and Corporate Security Business. In the
carve-out financial information, these intangible assets
have not been allocated to F-Secure as they will remain
with WithSecure after the Demerger. Instead, an
expense was recognized to reflect the benefit F-Secure
has received from these assets during the periods
presented in the carve-out financial information. The
expense related to utilization of the intangible assets by
F-Secure included in the carve-out financial information
during the periods presented were EUR 81 thousand in
first half of 2022 prior to Demerger.
The assets and leasing arrangements presented in the
carve-out financial information may differ significantly
from the requirements of the standalone F-Secure.
F-Secure has entered into new leasing agreements
related to premises, other equipment and machinery
for its standalone business operations when the
Demerger was consummated.
Share-based payment transactions
Historically, F-Secure key personnel have participated
in WithSecure’s share-based incentive programs.
For carve-out purposes, the expenses related to
F-Secure personnel are included in the carve-out
financial information. The portion related to the Group
function participants in the share-based incentive
programs has also been allocated to the carve-out
financial information as described in the section
Centrally provided shared services. The historical cost
allocations may not be indicative of the future expenses
that will arise through incentive schemes that will be
established for F-Secure key personnel in the future.
Income tax
Historically, the F-Secure Business has been included
within the same WithSecure legal entities as the
WithSecure operations. No tax filings have been
made separately for the F-Secure business. The tax
expenses in F-Secure’s carve-out financial information
are determined based on the separate tax return
method as if the F-Secure business represented
separate taxpayers in the jurisdiction of their primary
operations. The current tax expense in the carve-out
financial information is the amount of tax payable or
refundable based on hypothetical current year profits
of the F-Secure Business and have been presented as
current tax expense and as a shareholder transaction
through invested equity in the carve-out financial
information. Deferred tax has been recorded in
F-Secure’s temporary differences and the recoverability
of deferred tax assets has been assessed as if the
two businesses were separate taxpayers. Tax losses
have been included to the extent they directly relate
to the F-Secure business. The line-item Income tax
paid in the cash flow statements in the carve-out
information represents the estimated tax to be paid
by each F-Secure business in different jurisdictions.
53
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
The tax expenses recorded in the carve-out financial
information might not represent the tax expenses that
may arise in the future for the F-Secure business.
Management considers the separate tax return
approach to be reasonable, but not necessarily
indicative of the tax income or expenses that would
have been incurred if the entities and operations were
indeed separate taxable entities.
Cash management and financing
Historically, WithSecure has managed the financing
of the F-Secure Business and utilized a centralized
approach to cash management. In addition to the cash
and cash equivalents balances held directly at legal
WithSecure group companies, WithSecure pools cash
balances, cash deposits and funding directly with the
centralized WithSecure Treasury function and therefore
there are no balances directly attributable to F-Secure.
As a result, cash and cash equivalents, cash pool
receivables and payables, and related interest expense
and income are excluded from the carve-out financial
information. Corporate level debt or related interest
expenses were not allocated to F-Secure, as they were
not deemed to be attributable to the F-Secure Business.
In the Demerger, a relative share of the cash related to
advance payments received by WithSecure for the sale
of F-Secure’s products via its direct sales channel, was
paid to F-Secure based on the actual deferred revenue
balance as at the effective date of the Demerger.
The receivable from the parent company has been
recognized in the carve-out statement of financial
position to reflect the share attributable to F-Secure
during the periods presented. Change in this receivable
has been recognized against invested equity.
Transfers of cash between WithSecure and F-Secure
are included within the Equity financing with
WithSecure, net in the Statement of Cash Flows and
Equity transactions with WithSecure in the Statement
of Changes in Equity.
The financing presented in the carve-out financial
information may differ significantly from the future
financing requirements of F-Secure on a standalone
basis.
Invested equity
Total invested equity attributable to shareholders
of F-Secure represents WithSecure’s interest in the
recorded net assets of F-Secure. Historically, F-Secure
has not formed a separate legal group or presented
any stand-alone consolidated financial statements,
nor does it consist of separate identifiable entities
within WithSecure and accordingly, it is not feasible to
present share capital or any analysis on equity reserves.
The net assets of F-Secure, presented as capital
invested in F-Secure, and reported as Invested equity
in the statement of financial position, are comprised
of retained earnings, invested equity and cumulative
translation differences.
Changes in net assets allocated to F-Secure are
presented separately in the statement of changes in
equity as Equity transactions with WithSecure and
in the statement of cash flows through the line item
Equity financing with WithSecure, net reflecting the
internal equity financing between WithSecure and
F-Secure during the financial periods presented prior
to the Demerger. The amounts are affected by the net
assets allocated to the F-Secure business consisting
of allocation of income and expense and assets and
liabilities from the remaining WithSecure operations.
Translation differences arising from translating the
results for the financial period and invested equity
are recognized in a separate cumulative translation
difference account within total invested equity and
the changes are presented in other comprehensive
income.
The capital structure attributed to F-Secure in
connection with the preparation of the carve-out
financial information is presented as total invested
equity attributable to the shareholders of WithSecure,
and as such, is not indicative of the capital structure
that F-Secure would have required had it been a
standalone entity during the periods presented prior to
the Demerger.
Transactions in foreign currency
In carve-out financial information, translated balance
sheet and income statement items are allocated to
F-Secure or to the remaining WithSecure operations. As
part of the allocations, a translation difference related
to these allocated items is recognized in invested
equity and its change is recorded in the statement of
comprehensive income.
54
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
2. Segment information
Consumer Security Business consists of designing and providing a comprehensive
range of cybersecurity products and services related to data security, privacy
protection as well as privacy protection and digital identity protection of consumers’
terminal devices, networks and devices connected to a network, sold, in each case,
either directly or indirectly, to consumers. F-Secure’s operations and profitability is
reported as a single operating segment which is consistent with the internal reporting
and the way that operative decisions and assessment of performance have been
made by F-Secure’s leadership team.
Geographical information
Geographical information about revenue is presented in note 3.
EUR 1,000 2023 2022
Long-term assets
Nordic countries 161,129 10,695
Europe excl. Nordics
1,939 1,809
North America 55,799 2,174
Rest of world 832 160
Total 219,698 14,838
Assets and liabilities from contracts with customers
Satisfied performance obligations from contracts with customers that have not yet
been invoiced on the reporting date are presented in the balance sheet as Accrued
income. The balances relate to products delivered to customers and recognised as
revenue but not invoiced. Liabilities from contracts with customers are presented in
the balance sheet as Deferred revenue and included in Total non-current liabilities
or Total current liabilities depending on the duration of the liability. Prior year
current deferred revenue is recognised as revenue in the current period. Remaining
performance obligations from contracts with customers represent contracted
revenue that has not yet been recognised. These balances are presented as Deferred
revenue and relate to obligations to provide software subscription services in
contracts with a duration of multiple years.
EUR 1,000 2023 2022
Accrued income 1,953 1,651
Deferred revenue, non-current 5,837 3,621
Deferred revenue, current 19,788 17,324
Increases in deferred revenue resulting from billing were EUR 22,005 thousand for
the year ended (EUR 17,833 thousand). Decreases in deferred revenue resulting from
satisfying performance obligations were EUR 17,324 thousand for the year (EUR 16,660
thousand).
4. Other operating income
EUR 1,000 2023 2022
Government grants 330 506
Transition services 426 291
Gains from sale of business 189
Other 74 90
Total 830 1,076
The government grants are received for certain research and development projects
and are recognised as income over those periods in which the corresponding
expenses arise.
None of the amounts included in Other are individually significant.
3. Revenue
Principles of revenue recognition are stated in Note 1.2 Accounting principles, section
Revenue recognition.
Disaggregation of revenue
EUR 1,000 2023 2022
Sales channels
Revenue from external customers
Partner channel 105,122 88,052
Direct channel (E-commerce) 25,249 22,965
Total 130,371 111,017
Geographical information
Revenue from external customers
Europe excl. Nordics 50,014 48,653
Nordic countries 39,989 39,426
North America 31,999 17,082
Rest of world 8,370 5,856
Total 130,371 111,017
No single customer represents 10% or more of revenue.
55
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
5. Leases
The principles of lease accounting are stated in Note 1.2 Accounting principles,
section Leases.
EUR 1,000 2023 2022
Depreciation
Right of use assets
Buildings 936 438
Cars 103 131
Total 1,039 569
Interest expense on lease liabilities 29 20
Short-term leases booked as rent expense 163 34
Right of use assets and liabilities
Right of use assets
Buildings 1,060 1,674
Cars 197 160
Total 1,257 1,834
Lease liabilities
Buildings 1,076 1,679
Cars 187 161
Total 1,263 1,840
Repayments of lease liabilities 1,070 612
Right of use assets related changes are stated in disclosure 14. Non-current assets.
Inter
est payments related to lease liabilities are stated in disclosure 9. Financial
income and expenses.
Maturity of lease liabilities is stated in disclosure 20. Financial liabilities.
6. Depreciation and amortization
EUR 1,000 2023 2022
Depreciation and amortization of non-current
assets
Other intangible assets 4,829
Capitalized development 2,201 1,350
Intangible assets 7,030 1,350
Right of use assets 1,039 569
Other tangible assets 130 57
Tangible assets 1,169 626
Total depreciation and amortization 8,199 1,976
Depreciation and amortization by function
Sales and marketing 1,115 601
Research and development 2,339 1,357
Administration 4,745 18
Total depreciation and amortization 8,199 1,976
56
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
8. Audit fees
EUR 1,000 2023 2022
Group auditor
Audit fees, PricewaterhouseCoopers –205 –103
Audit related fees, PricewaterhouseCoopers
Tax consulting, PricewaterhouseCoopers
Other consulting, PricewaterhouseCoopers –1,233
Total –1,438 –103
Audit fees for 2022 consist of fees for the period after demerger.
EUR 1,000 2023 2022
Other auditors
Audit fees –26 –15
Total –26 –15
7. Personnel expenses
For comparison period, personnel costs presented in the table below combines
actual and carve-out figures for 2022. Actual costs for Jul–Dec 2022 includes costs
for personnel employed by F-Secure and carve-out costs include costs for direct
personnel working for Consumer Security Business.
EUR 1,000 2023 2022
Personnel expenses
Wages and salaries 33,295 20,785
Pension expenses – defined contribution plan 4,742 3,204
Share-based payments 619 735
Other social expenses 2,639 1,604
Total 41,296 26,328
For comparison period, share-based payments include actual cost for Jul–Dec
2022 and a portion of share-based payment costs of WithSecure which have
been allocated based on Group function allocation for other periods. See further in
disclosure Note 19 Share-based payment transactions.
Employee benefits of the management are stated in disclosure 24. Related party
transactions.
2023 2022
Average number of personnel 484 368
Personnel by function December 31
Delivery 75 68
Sales and marketing 122 91
Research and development 277 190
Administration 50 27
Total 524 376
9. Financial income and expenses
EUR 1,000 2023 2022
Financial income
Exchange gains 6,167 1,289
Interest income from receivables 739 180
Other financial income 89 7
Total 6,995 1,476
Financial expenses
Exchange losses –1,201 –1,440
Interest expenses –7,240 –63
Other financial expenses –345 –168
Interest expense from lease liabilities –29 –20
Total –8,815 –1,691
57
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
10. Income tax
This note presents F-Secure’s income tax expenses included in the financial
statements. The accounting principles of income taxes are stated in Note 1.2 and 1.3,
section Income tax.
EUR 1,000 2023 2022
Current income tax for the year 4,469 7,97 9
Change in deferred tax 847 424
Total 5,316 8,403
A reconciliation of income tax expense in the income statement and income tax
calculated at the parent company’s country of residence income tax rate (20%):
Profit before taxes 27, 67 7 38,556
Income tax at Finnish tax rate of 20% –5,527 –7,711
Effect of overseas tax rates –218 –184
Non-deductible expenses/tax-exempt revenue 283 22
Effect of deferred tax not recognized –12
Utilized tax losses –242
Adjustments for prior period tax 283 –20
Other –126 –268
Total –5,316 –8,403
Utilized and recognized tax losses in financial year 2022 included in the financial
statements ar
e related to F-Secure’s operations in the United States.
11. Earnings per share
Basic earnings per share amounts are calculated by dividing net profit for the year
attributable to ordinary equity holders of the parent by the weighted average number
of ordinary shares outstanding during the year. Diluted earnings per share amounts
are calculated by dividing the net profit attributable to ordinary shareholders by the
weighted average number of ordinary shares outstanding during the year adjusted
for the effects of dilutive options.
EUR 1,000 2023 2022
Net profit attributable to equity holders from 22,360 30,153
Weighted average number of ordinary shares
(1,000) 174,673 174,527
Basic and diluted earnings per share (EUR/share) 0.13 0.17
Earnings per share is based on the average number of shares. During the period,
F-Secure hasn’t had Treasury shares.
58
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
12. Acquisitions
On 1 June 2023 F-Secure completed the acquisition of mobile consumer security
business unit from Lookout Inc. The acquired mobile consumer security business
unit consists of shares of Lookout LLC in the US and Saferpass s.r.o. in Slovakia as
well as certain IP and related know-how transferred to Finland. In the transaction 65
employees were transferred to F-Secure.
The acquisition strengthens F-Secure’s position as a leading consumer security
company. F-Secure has significantly increased scale, strengthened footprint in the
US and in the communication service provider channel as well as a complementary
mobile optimized software product portfolio reaching tens of millions of subscribers
worldwide.
Purchase consideration
The purchase consideration comprises of cash payment of EUR 207.9 million which
was financed with external debt. The initial consideration EUR 206.9 million was paid
in USD in June. EUR 0.9 million was settled during Q4/2023 and final purchase price
adjustment EUR 0.1 million was agreed during Q4/2023 and settled after year end.
Adjustments relate to net working capital. Company hedged the purchase price
between signing and closing which resulted in profit of EUR 5.5 million booked in
financial income. The company did not apply hedge accounting for the arrangement.
EUR 1,000
Cash flow from the acquisition
Consideration paid in cash –207,900
Cash and cash equivalents of the acquired business 9
Total cash flow from the acquisition –207,891
Recognized amounts of identifiable assets required and liabilities assumed
Lookout’s net assets were identified and recognized at fair value as of the acquisition
date on 1 June 2023. The following table summarizes the fair values of assets acquired
and liabilities assumed. The accounting of acquisition is still provisional pending the
finalization of the valuation of the assets acquired and liabilities assumed and conse
-
quently the tax review is still provisional. The provisional amounts recognized may
be adjusted wit
hin 12 months after the date of acquisition, to reflect new information
obtained about the facts and circumstances that existed at the date of acquisition.
Provisional fair values of the assets and liabilities
recognized as a result of the acquisition
EUR 1,000
Tangible assets 1
Technology-related intangibles 83,013
Customer-related intangibles (Partner business) 31,717
Customer-related intangibles (Direct business) 1,829
Deferred tax assets 647
Trade and other receivables 5,583
Cash and cash equivalents 9
Total assets 122,800
Other non-current liabilities 473
Trade and other liabilities 2,979
Deferred tax liabilities 546
Total liabilities 3,998
Total net assets 118,802
Goodwill 89,099
The identified intangible assets relate to technology and customer relationships. Fair
values for the intangible assets have been determined using appropriate valuation
methods including multi-period excess earnings method (MEEM) for customer
relationships and Relief from royalty method (RfR) for technology. The amortization
period for these varies from 5 years to 15 years. Goodwill reflects the value of buyer
specific synergies, geographic presence, assembled workforce, future technology
and customers. The total amount of goodwill that is expected to be deductible for tax
purposes under Finnish and US GAAP is EUR 83.5 million.
Aquisition related costs of EUR 6.2 million are expensed and included in administra
-
tion expenses in consolidated income statement and in operating cash flow in the
conso
lidated statement of cash flows.
Impact on F-Secure’s comprehensive income statement
The acquired business contributed revenues of EUR 17.4 million and net profit of EUR
–0.1 million to F-Secure for the period from 1 June to 31 December 2023 including
amortization of the fair valued assets acquired for the period EUR –4.7 million and fair
valuation of deferred revenue EUR –3.2 million.
59
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
Had the acquisition occurred on 1 January 2023, management estimates that
combined illustrative revenue would have been EUR 142.7 million for Jan–Dec 2023
and combined illustrative net profit would have been EUR 18.4 million including
amortization of fair valued assets EUR –8.0 million, interest expenses for the loan EUR
–10.8 million and fair valuation of deferred revenue EUR –4.1 million.
Financial information of Lookout consumer business unit for the 5-month period
ended May 30, 2023 has been carved out and combined from Lookout Inc’s manage
-
ment reporting, accounting records and other sources of financial information.
L
ookout consumer business carve-out financial data for the above period includes
cost allocations, management assumptions, judgements and estimates as Lookout
consumer business unit has not formed a legal sub-group within Lookout and it
has not prepared consolidated group financial information prior to the transaction.
Pro forma adjustments are attributable to accounting policy alignments between
F-Secure’s accounting policies and US GAAP accounting principles applied by
Lookout and impact of the fair value adjustments.
13. Goodwill
F-Secure’s has a single operating segment as the group is followed as a whole. For
impairment testing goodwill is allocated to cash-generating units (CGUs). F-Secure
has only one CGU which consists of F-Secure’s total business. The carrying amount of
goodwill EUR 88,361 thousand is allocated to this CGU.
Goodwill is tested for impairment annually, or more frequently if there are indications
that goodwill might be impaired. The recoverable amount for each CGU is determined
based on a value in use calculation which uses cash flows for the period determined
for the CGU. Cash flows are based on financial budgets and forecasts approved by
the Board of Directors. Forecast period of six years is used. Discount rate is 9.71%
before taxes.
Cash flows beyond forecast period have been extrapolated using steady 2% per
annum growth rate. Markets where CGUs operate are expected to grow faster than
the terminal growth rate in impairment testing. Market is expected to grow mid single
digit annually by 2026 (based on F-Secure management estimate and industry
analyst reports).
Sensitivity analysis
F-Secure has prepared a sensitivity analysis of the impairment tests to change the
key assumptions which are revenue, profitability, and discount rate. Any reasonable
possible changes in the key assumptions in impairment tests would not cause the
aggregate carrying amounts exceeding the recoverable amounts.
60
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
14. Non-current assets
INTANGIBLE ASSETS TANGIBLE ASSETS
EUR 1,000
Other
intangible Goodwill
Capitalized
development
Advance
payments &
incomplete
development Total
Machinery &
equipment
Right of
use assets Other tangible Total
Acquisition cost Dec 31, 2021 350 16,207 1,335 17,893 193 837 1,031
Translation difference –1 –10 –10
Additions 4,506 4,506 95 2,258 91 2,443
Transfers 588 3,265 –3,853 0 –2 272 269
Disposals –350 –11,635 –11,985 –162 –726 –888
Acquisition cost Dec 31, 2022 588 7,8 37 1,988 10,413 124 2,631 91 2,845
Translation difference –1,062 –738 –1,799 3 –1 2
Acquisitions and divestments 116,446 89,099 103 205,648
Additions 7,6 25 7,6 25 319 493 18 829
Transfers 1,544 1,917 –3,461 0
Disposals –675 –675 –1 –102 –103
Acquisition cost Dec 31, 2023 117,517 88,361 9,182 6,152 221,212 444 3,020 108 3,573
Acc. depreciation Dec 31, 2021 –350 –11,635 –11,985 –165 –587 –752
Translation difference 9 9
Transfers 2 –272 –269
Depreciation for the period –1,350 –1,350 –31 –569 –19 –619
Depreciation of disposals 350 11,635 11,985 154 622 775
Acc. depreciation Dec 31, 2022 0 –1,350 –1,350 –41 –797 –19 –857
Translation difference 33 33 –3 1 –2
Depreciation for the period –4,829 –2,201 –7,030 –77 –1,036 –52 –1,165
Depreciation of disposals 675 675 69 69
Acc. depreciation Dec 31, 2023 –4,796 –2,876 –7,67 2 –121 –1,763 –71 –1,955
Book value as at Dec 31, 2022 588 6,487 1,988 9,064 83 1,834 71 1,988
Book value as at Dec 31, 2023 112,722 88,361 6,305 6,152 213,540 323 1,257 37 1,617
The book values of the right of use assets presented in the above table relate to buildings EUR 1.1 million (1.7m) and cars EUR 0.2 million (0.2m).
Capitalised de
velopment expenses relate to new products and development of new product versions with significant new features (refer to the section on Research and
development expenditure included within Intangible assets in Note 1.2 Accounting principles). In addition to capitalized development, Advance payments & incomplete
development includes self-developed assets EUR 6.2 million (EUR 2.0 million).
61
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
15. Inventories
The accounting principles of inventories are stated in Note 1.2 Accounting principles,
section Inventories.
EUR 1,000 2023 2022
Inventories 35 41
The inventory balances included in the financial statements consist of the packaging
used for license key cards.
17. Other receivables
EUR 1,000 2023 2022
Current receivables
Other receivables 647 1,586
Prepaid expenses 6,400 3,211
Accrued income 1,953 1,651
Accrued tax 2,108 143
Total 11,108 6,591
Material items included in prepaid expenses
Prepaid royalty 879 846
Grant receivables 382 52
Other prepaid expenses 5,139 2,313
Total 6,400 3,211
Other prepaid expenses include e.g. annual software licenses.
16. Financial assets
This note presents F-Secure’s financial assets included in the financial statements.
The accounting principles of financial assets are stated in Note 1.2 Accounting
principles, section Financial instruments.
EUR 1,000 2023 2022
Cash at bank and in hand 15,867 22,953
Interest-bearing receivables 3,658 3,693
Trade receivables 28,558 18,243
Total 48,083 44,890
Trade receivables
Aging of trade receivables
Not fallen due 22,947 15,068
1–90 days past due 5,871 3,139
Over 90 days past due 286 430
Less allowances for expected credit losses –547 –394
Total 28,558 18,243
Movements in loss allowances on trade receivables
Book value as at Jan 1 394 606
Change for the year 183 –104
Receivables written off during the year –31 –107
Book value as at Dec 31 547 394
62
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
18. Shareholders’ Equity
Issued and fully paid
Number of shares Share capital
Unrestricted
equity reserve
Demerger 30 June
2022 174,526,944 80 9,590
31 December 2022 174,526,944 80 9,590
Share issue 146,221
31 December 2023 174,673,165 80 9,590
The share capital amounting to 80,000 euro was formed in the demerger on 30 June
2022. The number of shares was 174,673,165 (no own shares) at the end of 2023.
Company has made two directed share issues in March 2023 to the plan participants
of the Company’s Performance Share Plan and Restricted Share plan. The shares
issued account for the rewards earned from the performance period 2020–2022 and
retention period 2021–2022.
A share has no nominal value. Accountable par value is EUR 0.01.
Translation differences
The translation difference is used to record exchange difference arising from the
translation of the financial statements of foreign subsidiaries.
Unrestricted equity reserve
Unrestricted equity reserve was formed in connection with demerger on 30 June
2022. Unrestricted equity reserce includes other equity-related investments and that
part of the share subscription price which is not recognized in share capital according
to a specific decision.
Dividends proposed and paid
Proposed for approval at AGM for financial year 2023 is that dividend of 0.07 euro per
share will be paid.
Final dividend for financial year 2022 was 0.07 per share, paid during 2023
(12,227,121.55 euro in total).
Treasury shares
At the end of 2023 company doesn’t hold any treasury shares.
19. Share-based payment transactions
F-Secure has had several share-based incentive programs during the period. The
purpose of the plans is to align the interests of the shareholders and the plan partici-
pants in order to increase the value of F-Secure share and retain and motivate key
management b
y offering them a competitive incentive plan.
Prior to demerger, F-Secure personnel have participated in the incentive plans in
WithSecure and the ongoing incentive programs from WithSecure continue. All
long-term incentive plan allocations made originally in the shares of WithSecure were
adjusted through a modification to be the allocation of F-Secure Corporation after
the demerger. The effect of the plans and related expenses attributable to F-Secure
for each financial year are presented below. Additionally during the carve-out period,
the total costs include a portion of share-based payments related to Group Functions
which have been allocated to F-Secure as part of the centrally provided shared
services as described in Note 1.3, Carve-out principles. Accounting principles for share-
based payments are stated in Note 1.2 Accounting principles, section Share-based
payment transactions.
Share-based incentive programs
The share-based incentive programs offer the participants a possibility to receive
shares of F-Secure Corporation as an incentive reward if the Company’s financial
targets set for the earning period have been achieved. No reward can be given to
any participating employee, whose employment has terminated before the end of
the lock-up period. The plan structure is following: a Performance Share Plan for the
Company’s senior management, a Restricted Share Plan for individually selected key
employees and an Employee Share Savings Plan for all employees.
Share-based incentive program 2020–2022 (originally from WithSecure)
WithSecure established originally in February 2020 a share-based incentive program
2020–2022. The program’s duration is five years and it comprises three earning
periods, 2020–2022 with the grant date in April 2020, 2021–2023 with the grant
date in April 2021, and 2022–2024 with the grant date in March 2022. Each earning
period lasts for three years. The program ends on December 31, 2024. The value of
WithSecure share at grant date for the program were EUR 2.18 for the 2020–2022
earning period, EUR 3.42 for the 2021–2023 earning period, and EUR 5.12 for the earning
period 2022–2024. After demerger, there were adjustments made to earning periods
2021–2023 and 2022–2024 using the reference prices of the two new companies.
Criteria measurement for 2020–2022 was decided to execute as if the two companies
would still form the old entity. After demerger allocations made originally in the shares
of WithSecure were adjusted through modifications. There was no fair value increase
resulting from the modifications. The rewards will be equity-settled.
The vesting of the rewards for all periods was conditional to the participant remaining
63
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
in the service of F-Secure. In addition, the 2020–2022 period has a performance
condition based on F-Secure’s and WithSecure’s relative total shareholder return of
WithSecure’s and F-Secure’s share and the periods 2021–2023 and 2022–2024 have
a performance condition based on absolute total shareholder return of F-Secure’s
share. The Board approves the metrics, targets and participants on annual basis for
each earning period.
In accordance with the terms of the program, no retentions are expected at the date
of this financial statement. The expense arising from the Share-based incentive
program 2020–2022 was EUR 287 thousand in 2023, EUR 269 thousand in 2022 after
the demerger and EUR 333 thousand during carve-out period in 2022.
Share-based incentive program 2023–2025
F-Secure established a share-based program 2023–2025. The program’s duration
is three years with the grant date in April 2023. The value of F-Secure share at grant
date for the program was EUR 3.39. The program ends in March 2026 with a possible
reward payment, paid during spring 2026. The payment of the reward is conditional
on the achievement of the performance targets. The maximum total of shares to be
given is 800,000 shares. The potential reward will be paid either in shares, in cash or in
a combination of these.
The vesting of the rewards is conditional to the participant remaining in the service
of F-Secure. The incentive plan has a performance condition based on F-Secure’s
absolute total shareholder returnand revenue growth and profitability.
In accordance with the terms of the program, no retentions are expected at the date
of this financial statement. The expense arising from the Share-based incentive
program 2023–2025 was EUR 262 thousand in 2023.
Restricted share plan 2021–2022 (originally from WithSecure)
WithSecure established a restricted share plan in February 2020. The restricted share
plan complements the incentive programs. Only 2021–2022 program was applicable
for F-Secure. The values of the WithSecure share at grant date for this program was
EUR 4.04 and the maximum total of shares to be given is 40,000 shares. The rewards
were settled in March 2023.
Restricted share plan 2023–2025
F-Secure established a restricted share plan in March 2023. The program’s duration is
three years and potential reward will be paid during spring 2026. Company can grant
fixed share rewards during retention period. The restricted share plan complements
the incentive programs for separately selected key persons in special situations. The
values of the F-Secure share at grant date for this program was EUR 2.98 and EUR 2.05
and the maximum total of shares to be given is 80,000 shares. The potential reward
will be paid either in shares, in cash or in a combination of these.
The vesting of the rewards for all periods is conditional on the participant remaining in
the service of F-Secure. The Board approved the metrics, targets and participants on
an annual basis for each earning period. In accordance with the terms of the program,
no retentions are expected at the date of this financial statement. The expense arising
from the restricted share plan was EUR 27 thousand in 2023.
The participating employee of a share-based incentive program shall be entitled
to the shareholder rights of the reward shares (e.g., dividend) from the moment the
shares have been entered into the participating employee’s book-entry account.
The costs of equity-settled transactions are measured by reference to the fair value
of shares at the date on which they are granted. Fair value for performance based
programs is based on the share price on the grant date. Fair value for market based
programs is based on externally accepted valuation methods. The costs of cash-
settled transactions are measured by reference to the market price of the share
on the balance sheet date. F-Secure updates the estimate of the number of equity
instruments that will ultimately vest at each reporting date.
Employee share savings plan
During 2022, F-Secure launched a employee share savings plan which was available
for all employees. The plan consists of annually commencing plan periods, each
one comprising of a 12-month savings period and a holding period following the
savings period. The first plan period commenced on 1 October 2022 and ends on
30 September 2025. The second plan period commenced on 1 October and ends
on 30 September 2026. Every employee was eligible to save a proportion of their
salaries and invest those savings in F-Secure shares. The savings will be used for
acquiring F-Secure shares quarterly after the publication of the respective interim
reports. F-Secure grants the participating employees a gross reward of one matching
share for every two shares acquired with their savings. For the first plan period the
maximum number of of matching shares is approximately 200 000 shares and for the
second plan period 250 000 shares.
The vesting of the rewards is conditional on the participant remaining in the service
of F-Secure and on an initial investment. The Board approves the metrics, targets, and
participants on an annual basis for each earning period. The expense arising from the
employee shares savings plan was EUR 44 thousand in 2023 and EUR 16 thousand in
2022.
Impacts of share-based payment transactions on financial statements
EUR 1,000 2023 2022
Booked as expense during the period 619 344
Booked in retained earnings during the period 139 344
Balance sheet liability at the end of the period 87 16
64
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
20. Financial liabilities
F-Secure’s financial liabilities consist of interest-bearing liabilities and trade payables.
Interest-bearing liabilities include bank loans, structuring loans towards WithSecure
as well as lease liabilities from building and cars (see Note 1.2 Accounting principles,
section Leases and Note 5. Leases).
Interest-bearing liabilities
EUR 1,000 2023 2022
Bank loans 190,357
Lease liabilities 1,263 1,840
Other interest-bearing liabilities 5,307 5,498
Total 196,928 7,338
Prior to completion of the demerger, WithSecure’s consumer business conducted
by its foreign subsidiaries was separated from the rest of the business into separate
companies through business acquisitions or similar transactions in each relevant
country. The transaction prices vary between approximately EUR 70 thousand and
EUR 3.0 million. The payback time for the resulting payables and receivables is
primarily three years from the effective date of each local transaction, and prepay
-
ment is allowed. The interest rate for the unpaid transaction price varies by country.
F
-Secure’s payables totaled EUR 5.3 million, presented in the table above as Other
interest-bearing liabilities.
F-Secure acquired the mobile consumer security unit from Lookout Inc. in 2023. The
acquisition was financed by external debt and resulted to a significant increase in
interest-bearing liabilities. New loan agreement including two facilities for EUR 202
million amortizing term loan and EUR 20 million revolving credit facility was signed
with Danske Bank A/S and OP Corporate Bank Plc. Maturity of both facilities is 3 years
with two 1-year extension options. During the accounting period, the term loan was
repaid by EUR 10.0 million. The revolving credit facility is undrawn at the reporting date.
The Group’s loan agreement includes a financial covenant, measured on quarterly
basis. The covenant relates to the ratio between net debt and adjusted EBITDA, as
defined under the terms of the loan agreement. Group has met covenant terms and
conditions during the reporting period and on the reporting date.
F-Secure has no outstanding derivative contracts on 31 December 2023.
Contractual maturities of interest-bearing liabilities
EUR 1,000 2023 2022
Amount due for settlement within 12 months 30,965 957
Amount due for settlement after 12 months 165,963 6,381
Total 196,928 7,338
Bank loan carry variable interest rates. The weighted average interest rates paid
during the year were as follows:
EUR 1,000 2023 2022
Bank loans 5.6%
Contractual maturities of financial liabilities
2023
EUR 1,000 Less than 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years over 5 years
Total contractual
cash flows Carrying amount
Bank loans 30,000 30,000 132,000 192,000 190,357
Lease liabilities 991 115 74 39 35 14 1,269 1,263
Other interest-bearing
liabilities 5,307 5,307 5,307
Trade payables 3,911 3,911 3,911
Total 34,902 35,423 132,074 39 35 14 202,488 200,839
2022
EUR 1,000 Less than 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years over 5 years
Total contractual
cash flows Carrying amount
Lease liabilities 982 845 41 6 1,873 1,840
Other interest-bearing
liabilities 5,498 5,498 5,498
Trade payables 1,398 1,398 1,398
Total 2,380 845 5,539 6 8,770 8,737
65
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
21. Financial risk management
Classes and categories of financial assets and liabilities and their fair values
Fair value hierarchy levels 1 to 3 are based on the degree to which the fair value is
observable:
Level 1: Fair values of financial instruments are based on quoted prices in active
markets for identical assets and liabilities
Level 2: Financial instruments are not subject to trading in active and liquid markets.
The fair values of financial instruments can be determined based on quoted market
prices and deduced valuation.
Level 3: Measurement of financial instruments is not based on verifiable market
information, and information on other circumstances affecting the value of the
instruments is not available or verifiable.
The fair value hierarchy levels are not applied in the financial statement given the
nature of financial assets and liabilities. F-Secure’s financial assets and liabilities are
presented in the following tables.
Carrying value
2023
EUR 1,000
Financial
assets
Financial
liabilities
Note Amortized cost Amortized cost Total
Cash and bank 16 15,867 15,867
Interest-bearing receivables 16 3,658 3,658
Trade receivables 16 28,558 28,558
Trade payables 20 3,911 3,911
Lease liabilities 20 1,263 1,263
Bank loans 20 190,357 190,357
Other interest-bearing liabilities 20 5,307 5,307
Carrying value
2022
EUR 1,000
Financial
assets
Financial
liabilities
Note Amortized cost Amortized cost Total
Cash and bank 16 22,953 22,953
Interest-bearing receivables 16 3,693 3,693
Trade receivables 16 18,243 18,243
Trade payables 20 1,398 1,398
Lease liabilities 20 1,840 1,840
Other interest-bearing liabilities 20 5,498 5,498
General
The responsibility for F-Secure’s risk management lies with the CEO, management
and ultimately with the Board of Directors. The goal of risk management is to identify
risks that may hinder the company from achieving its business objectives. F-Secure
is exposed to various financial risks in its business operations. Main financial risks are
credit risk, liquidity risk, foreign currency exchange risk and interest rate risk. After
demerger, F-Secure has established its own treasury function and developed its own
financial risk management policies in order to maintain an effective risk manage
-
ment function.
Cr
edit risk
F-Secure trades only with recognized, creditworthy third parties. Trade receivables are
monitored and collected on an ongoing basis. The maximum exposure to credit risk at
the reporting date is the carrying value of trade receivables. Trade receivables do not
include any major concentrations of credit risk by customer. The top three customers
account for 16.1%, 7.1% and 6.6% in 2023 (8.7%, 8.2% and 8.1% in 2022) of trade receiv
-
ables. See Note 16 Financial assets.
Liquidity risk
Liquidity risk arises if t
he Group’s existing liquidity reserves, net cash flows and avail
-
able additional financing are not sufficient to cover commitments falling due within
ne
xt 12 months. Group manages its liquidity risk by centralizing the management of
cash and liquid assets and thereby optimizing the use of liquid funds for operational
and refinancing needs. In addition, F-Secure has a revolving credit facility (RCF) of
EUR 20 million which is undrawn on 31 December 2023. Group Treasury is responsible
for monitoring cash balances and cash forecasts to keep liquidity risk at manageable
level. The Group has not identified any significant concentrations of liquidity risks in
sources of available financing.
Foreign currency risk
The Group operates globally and is exposed to a currency risk arising from exchange
rate fluctuations against its reporting currency euro. Transaction risk is related to
foreign currency transactions in sales and expenses. Translation risk arises from the
Group’s net investments outside euro zone.
Transaction risk
Transaction risk arises from future commercial transactions and recognized assets
and liabilities denominated in a currency that is not the functional currency of the
relevant group entity. The majority of sales is invoiced in Euro. The other main curren
-
cies for invoicing are US dollar (USD), the Swedish krona (SEK), the pound sterling
(
GBP) and the Japanese yen (JPY). The currency risk arising from sales invoicing
is reduced by operational expenses arising in the same currencies as the sales
invoicing. The transaction risk is managed centrally such that the F-Secure operations
66
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
mainly have transactions in their legal entities’ functional currency and intercompany
transactions are carried out in the group entities functional currencies. The main
foreign currency risk arises from USD denominated sales invoicing, purchases and
intercompany transactions at the F-Secure parent entity level, creating volatility in the
financial income and expenses.
2023 2022
Sales in different currencies % %
EUR 64 73
USD 25 15
JPY 4 3
SEK 3 4
GBP 2 4
Other currencies 2 1
Total
100
100
The carrying Euro (thousand) amounts of the Group’s financial assets and liabilities at
the reporting date are as follows:
Financial assets
EUR 1,000 2023 % 2022 %
EUR 26,417 55 31,183 69
USD 13,074 27 7,834 17
GBP 4,108 9 2,904 6
JPY 1,782 4 816 2
Other currencies 2,701 6 2,152 5
Total 48,082 100 44,890 100
Financial liabilities
EUR 1,000 2023 % 2022 %
EUR 197,917 99 5,648 65
JPY 1,372 1 1,511 17
MYR 889 0 933 11
USD 205 0 56 1
Other currencies 455 0 589 6
Total 200,839 100 8,737 100
Financial liabilities in the above table also include lease liabilities.
The table below demonstrates how sensitive F-Secure’s profit before taxes is to foreign
exchange rate fluctuations when all other variables are held constant. The open
exposure against USD arising from F-Secure trade receivables and trade payables
have an impact on F-Secure’s profit before taxes. The sensitivity calculation is based
on a change of 10% in the Euro exchange rate against the functional currencies
F-Secure operates in. There were no other material exposures.
EUR million 2023 2022
USD –1.0/+1.2 –0.7/+0.8
Translation risk
Translation risk arises from the F-Secure’s net investments in foreign currencies.
Translation differences arise from translating balances into euro using exchange
rates prevailing on the reporting date. Most significant translation risks arise from
goodwill (EUR 22.4 million) and intangible assets (EUR 31.1 million) generated in
acquisition of mobile consumer security business unit from Lookout Inc. Main currency
is USD. According to current policy, F-Secure does not hedge investments made in its
subsidiaries.
Change in foreign exchange translation differences amounted EUR 2.0 million at the
end of 2023 (EUR 0.1 million).
Interest rate risk
F-Secure is exposed to interest rate arising from interest-bearing liabilities which relate
to bank loans and structuring loans against WithSecure. The interest rate of bank loan
of EUR 202 million is tied to variable reference interest rate. The interest rate related
to WithSecure structuring loans varies by country. F-Secure is regularly evaluating
the need for hedging interest rate risk. In the financial year 2023, the company did not
hedge against interest rate risk. Apart from bank loans there were no other material
exposures. The table below demonstrates the sensitivity of Group’s profit before taxes
to 1% change in interest rate when all other vairables are held constant.
EUR million 2023 2022
Interest-bearing liabilities, bank loans –1.2/+1.2
Capital management
F-Secure’s shareholders’ equity is managed as capital. The objective of F-Secure’s
capital management is to maintain an efficient capital structure that ensures the
functioning of business operations and promotes shareholder value. F-Secure’s capital
structure is reviewed regularly as a part of financial performance monitoring. The
capital structure can be adjusted among other things by distribution of dividends,
share repurchase or capital repayment. The dividend policy of F-Secure Corporation
is to aim to pay around or above 50 per cent of its net profit as dividend on an annual
basis. Subject to circumstances, the F-Secure can deviate from this policy.
67
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
22. Deferred tax
EUR 1,000 2023 2022
Deferred tax assets relate to following:
Intangible assets and property, plant and
equipment 1,311
Provisions and other liabilities 656 13
Other temporary differences 574 114
Total 2,541 127
Offset against deferred tax liabilities –1,658 –34
Net deferred tax assets 883 93
Change in deferred tax assets:
Recognized in profit or loss 1,766 –223
Acquisitions and disposals 647
Total, increase (+), decrease (–) 2,413 –223
Deferred tax liabilities relate to the following:
Intangible assets and property, plant and
equipment 2,808
Provisions and other liabilities 600 563
Other temporary differences 314
Total 3,722 563
Offset against deferred tax assets –1,658 –34
Net deferred tax liabilities 2,064 529
Change in deferred tax liabilities:
Recognized in profit or loss 2,613 –86
Acquisitions and disposals 546
Total, increase (+), decrease (–) 3,159 –86
Intangible assets and property, plant and equipment at 31 December 2023 includes
deferred tax liabilities of EUR 0.5 million (0.0 million) related to fair value adjustments
of the acquired net assets in the mobile consumer security business of Lookout Inc.
23. Other liabilities
EUR 1,000 2023 2022
Non-current liabilities
Deferred revenue 5,837 3,621
Other non-current liabilities 51 81
Total 5,888 3,702
Current liabilities
Deferred revenue 19,788 17,324
Trade payables 3,911 1,398
Provisions 1,739
Other liabilities 1,818 1,156
Accrued expenses 8,453 5,263
Income tax liabilities 1,592 1,152
Total 37,301 26,294
Material amounts shown under accrued expenses
Accrued personnel expenses 6,183 4,952
Other accrued expenses 2,270 312
Total 8,453 5,263
Other liabilities under Current liabilities consist mainly of personnel and VAT related
accruals.
Provisions
EUR 1,000 2023 2022
Book value as at 1.1.
Increases during the year 1,739
Used during the year
Book value as at 31.12. 1,739
Management has recognized a provision of EUR 1539 thousand related to
restructuring and EUR 200 thousand related to other provisional costs and expenses.
68
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
24. Related party disclosures
The Group’s related parties include Parent company and subsidiaries as well as
members of the Board, CEO and other members of the Leadership Team, their family
members and organizations in which these individuals have direct or indirect control
or significant influence.
For carve-out period the related party included WithSecure’s CEO and other
members of the Leadership Team and the members of the Board of Directors
of WithSecure, as F-Secure didn’t have a separate management team prior to
demerger. Related party transactions and balances with the remaining WithSecure
entities are presented in the section Inter-company transactions and transactions
with related parties in Note 1.3 Carve-out principles. After the partial demerger it has
been concluded that F-Secure’s related party doesn’t consist of WithSecure anymore.
For comparison period, the table below presents the portion of the employee benefits
of the key employees belonging to F-Secure’s management after demerger 30 June
2022.
Compensation of key management personnel of the Group
EUR 1,000 2023 2022
Wages and other short-term employee benefits 2,133 1,187
Pensions 422 299
Share-based payments 574
Total 3,129 1,486
Wages and other short-term employee benefits
EUR 1,000 2023 2022
CEO and President 422 180
Leadership Team 1,711 1,007
Members of the Boards of Directors 270 255
Total 2,403 1,442
Board of Directors and CEO and President
EUR 1,000 Wages Fees
Share-
based
payment
Timo Laaksonen, CEO and President 422 79
Pertti Ervi, Chair of the Board 85
Risto Siilasmaa 38
Thomas Jul 43
Madeleine Lassoued 43
Petra Teräsaho 48
Sami Salonen 13
Total 422 270 79
The CEO’s retirement age and the determination of his pension conform to the
standard rules specified by Finland’s Employee Pension Act (TYEL). The pension cost
of the CEO during the financial period was 82 thousand euro (period after demerger
on 30 June 2022 45 thousand euro). The period of notice for the CEO is six (6) months
both ways and CEO is entitled to severance payment equivalent of six (6) months’
salary.
69
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
25. Subsidiaries
Name
Country of
incorporation Group (%)
Parent F-Secure Corporation, Helsinki Finland
F-Secure Data Oy, Helsinki Finland 100
F-Secure Data Oy, Norwegian branch Norway 100
F-Secure Data Oy, Danish branch Denmark 100
F-Secure Inc., Palo Alto United States 100
F-Secure (UK) Ltd, Buckinghamshire United Kingdom 100
F-Secure KK, Tokyo Japan 100
F-Secure GmbH, Munich Germany 100
F-Secure SAS, Paris France 100
F-Secure AB, Stockholm Sweden 100
F-Secure Srl, Milan Italy 100
F-Secure Poland SP z.o.o., Poznan Poland 100
F-Secure Sdn Bhd, Kuala Lumpur Malaysia 100
F-Secure Pvt Ltd, Mumbai India 100
F-Secure B.V., Hilversum The Netherlands 100
F-Secure Iberia SL, Madrid Spain 100
F-Secure do Brasil Tecnol. da Informãcao Ltda, Saõ Paulo Brazil 100
F-Secure s.r.o., Bratislava Slovakia 100
26. Subsequent events
On 9 February 2024, F-Secure announced that Kitta Virtavuo, Chief People Officer
and a member of F
-Secure Leadership Team, has decided to leave F-Secure to pursue
other career opportunities outside the company. Virtavuo will continue in her current
role until April 2024, ensuring smooth handover of her duties.
70
Financial statements F-Secure consolidated
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Corporate Governance
Consolidated
financial statements
Statement of
comprehensive of income
Statement of f
inancial position
Statement of cash flows
Statement of changes in equity
F-Secure Corporation
financial statements
N
otes to the financial statements
EUR 1,000 Note FAS 2023
FAS 30 June –
31 December 2022
REVENUE (1) 112,878 53,391
Cost of revenue (4) –13,474 –4,181
GROSS MARGIN 99,403 49,210
Other operating income (2) 2,849 1,090
Sales and marketing (3, 4) –32,493 –14,759
Research and development (3, 4) –21,379 –7,87 3
Administration (3, 4) –24,225 –13,670
EBIT 24,155 13,998
Financial income and expenses (6) –2,488 2,022
PROFIT (LOSS) BEFORE APPROPRIATIONS AND TAXES 21,667 16,020
Appropriations (7) –7,566
Income taxes (8) –2,535 –2,735
RESULT FOR THE FINANCIAL YEAR 11,566 13,285
Income statementF-Secure
Corporation
financial
statements
71
Financial statements F-Secure Corporation
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Consolidated
financial statements
Corporate Governance
F-Secure Corporation
financial statements
EUR 1,000 Note FAS 2023
FAS 2022
ASSETS
NON-CURRENT ASSETS
Intangible assets (9) 155,877 9,064
Tangible assets (9) 69 61
Investments in group companies (10) 66,821 53
Total non-current assets 222,767 9,178
CURRENT ASSETS
Inventories (11) 35 41
Trade and other receivables (12) 32,655 24,219
Cash and bank accounts (13) 12,935 18,673
Total current assets 45,625 42,933
TOTAL ASSETS 268,391 52,110
EUR 1,000 Note FAS 2023
FAS 2022
SHAREHOLDERS’ EQUITY AND LIABILITIES
SHAREHOLDERS’ EQUITY (14, 15)
Share capital 80 80
Reserve for invested unrestricted equity 9,590 9,590
Retained earnings 1,058
Profit for the financial year 11,566 13,285
Total shareholders’ equity 22,294 22,956
APPROPRIATIONS
Depreciation difference 7,566
LIABILITIES
Long-term liabilities (17) 169,071 4,740
Short-term liabilities (17) 69,459 24,414
Total liabilities 238,531 29,155
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 268,391 52,110
Balance sheet
72
Financial statements F-Secure Corporation
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Consolidated
financial statements
Corporate Governance
F-Secure Corporation
financial statements
Cash flow statement
EUR 1,000 FAS 2023
FAS 30 June –
31December 2022
Cash flow from operations
Result for the financial year 11,566 13,285
Adjustments
Depreciation and amortization 9,089 684
Other adjustments 7,599 1,594
Financial income and expenses 2,488 –2,022
Income taxes 2,535 2,735
Cash flow from operations before change in
working capital 33,277 16,276
Change in net working capital
Current receivables, increase (–), decrease (+) –5,207 –26,154
Inventories, increase (–), decrease (+) 6 –41
Non-interest bearing debt, increase (+),
decrease (–) 15,381 29,008
Cash flow from operations before financial items
and taxes 43,456 19,088
Interest expenses paid –8,675 –1
Interest income received 378 36
Other financial income and expenses 4,555 –251
Income taxes paid –3,610 –2,636
Cash flow from operations 36,106 16,237
EUR 1,000 FAS 2023
FAS 30 June –
31December 2022
Cash flow from investments
Investments in intangible and tangible assets –155,910 –9,808
Acquisition of subsidiaries –66,768 –53
Dividends received 1,108 2,565
Cash flow from investments –221,570 –7,296
Cash flow from financing activities
Increase in share capital 9,670
Increase in interest-bearing liabilities 202,000
Decrease in interest-bearing liabilities –10,000
Dividends paid –12,227
Cash flow from financing activities 179,773 9,670
Change in cash –5,691 18,611
Effect of exchange rate changes on cash –47 62
Cash and bank at the beginning of the period 18,673
Cash and bank at period end 12,935 18,673
73
Financial statements F-Secure Corporation
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Consolidated
financial statements
Corporate Governance
F-Secure Corporation
financial statements
Basic information
F-Secure is a cybersecurity company who designs
and offers security and privacy products and services
to consumers to protect themselves against online
threats.
F-Secure Corporation is the parent company of
F-Secure Group, incorporated in Finland and domiciled
in Helsinki. F-Secure Corporation was established
through partial demerger on 30 June 2022 and therefore
the accounting period for comparative period is 30 June
– 31 Dec 2022. In the demerger F-Secure Corporation
received assets and liabilities from WithSecure
Corporation on 30 June 2022. Assets and liabilities
were transferred with book values, and the transferred
net equity was 9,670 thousand euro. Demerger plan,
dated 17 February 2022, defines further which assets
and liabilities were transferred. Company’s registered
address is Tammasaarenkatu 7, 00180 Helsinki. Copy of
consolidated financial statements can be downloaded
from www.f-secure.com or can be received from the
Company’s registered address.
Accounting principles
The financial statement of F-Secure Corporation has
been prepared in accordance with Finnish Accounting
Standards (FAS).
Foreign currency translation
Foreign currency transactions are translated using
the exchange rates prevailing at the dates of the
transactions. On the reporting date, assets and liabilities
denominated in foreign currencies are translated using
the European Central Bank’s exchange rates prevailing
at that date. Exchange rate gains and losses are
recognized in financial items in the income statement.
Revenue recognition
F-Secure provides a comprehensive range of endpoint
protection, privacy and password management
solutions, and security for all consumers’ connected
devices at home. Revenue derives from the sale of
security products through service provider and direct
consumer channels. The majority of revenue comes
from the sale of endpoint protection products through
the service provider partner channel, and F-Secure also
sells consumer products through various retail partners,
as well as F-Secure’s own web shop. The main products
and service portfolios are:
– Security Suite: F-Secure Total deployed as an all-
in-one application that provides complete security,
privacy and identity protection on consumers’
personal devices or any subsets of its protection
modules. This includes Mobile Security products
obtained when acquiring Lookout Life.
– Embedded Security: Comprehensive portfolio
of security and privacy Software Development
Kits (SDKs) and cloud Application Programming
Interfaces (APIs) embedded in partner app or
service, including F-Secure Sense providing
router security. This includes embedded security
capabilities obtained when acquiring Lookout Life.
– Services: F-Secure security business platform based
scalable expert and cloud-based services supporting
both Security Suite and Embedded Security such as
delivery and integration, customer care, and partner
success services to support its Partner Business.
Products are treated as Security-as-a-Service as
they do not include a license of intellectual property.
Customers are provided with access to continuously
updated software. According to company’s assessment
sales transactions in principle have only a single
performance obligation which is recognized over time
on a straight-line basis for the contract period. The
typical length of a contract period is 12, 24, or 36 months.
Generally, the term between invoicing and when
payment is due is not significant. Advance payment
is customary for customer contracts via the direct
consumer channel whereas the partner channel is
mainly invoiced on a monthly basis.
Pensions
F-Secure’s pension arrangements are defined
contribution plans in accordance with local statutory
requirements. Contributions to defined contribution
plans are recognized in income statement in the
period to which the contributions relate. The Company
recognizes the disability commitment of TyEL pension
plan when disability appears.
Leases
Leases where the lessor retains substantially all
the risks and benefits of ownership of the asset
are classified as operating leases. Operating lease
payments are recognized as an expense in the income
statement on a straight-line basis over the lease term.
The Company has only operating leases.
Income taxes
Current income taxes are calculated in accordance
with the local tax and accounting rules.
Tangible and intangible assets
Intangible assets include intangible rights and software
licenses. Tangible and intangible assets are recorded
at historical cost less accumulated depreciation,
amortization, and possible impairment. Depreciation
and amortization is recorded on a straight-line basis
over the estimated useful life of an asset. The estimated
useful lives of tangible and intangible assets are as
follows:
Notes to the parent company Financial Statements
74
Financial statements F-Secure Corporation
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Consolidated
financial statements
Corporate Governance
F-Secure Corporation
financial statements
Machinery and equipment 2–3 years
Capitalized development costs 3–5 years
Intangible rights 3–5 years
Intangible assets 3–15 years
Goodwill 10 years
Ordinary repairs and maintenance costs are charged
to the income statement during the financial period in
which they are incurred. The cost of major renovations
is included in the assets’ carrying amount when it is
probable that the Company will derive future economic
benefits in excess of the originally assessed standard
or performance of the existing asset. Any gain or loss
arising on derecognition of the asset (calculated as the
difference between the net disposal proceeds and the
carrying amount of the asset) is included in the income
statement in the year the asset is derecognized.
Subsidiary shares
Subsidiary shares in the balance sheet are measured
at historical cost less impairment losses. The carrying
amounts of the subsidiary shares are assessed
annually as part of the Group’s impairment testing.
An impairment loss is recognised, if the carrying
amount of the subsidiary shares and the amount of
net loan receivables from the subsidiary exceed the
recoverable amount of the corresponding assets and
the impairment is considered permanent.
Research and development expenditure
Research expenditure is recognized as an expense at
the time it is incurred. Development expenditures relate
to new products or development of significant new
features including new product versions.
Inventories
Inventories are measured at the lower of cost and
net realizable value. Cost is determined by first-in
first-out method. Net realizable value is the estimated
selling price that is obtainable, less estimated costs of
completion and the estimated costs necessary to make
the sale.
Financial assets and liabilities
Cash and cash equivalents in the balance sheet
comprise cash at bank, deposits held at banks, and
other highly liquid short-term investment with original
maturity less than 3 months.
F-Secure classifies bank loans, trade payables and
other payables as other financial liabilities which are
measured at amortized cost. Financial liabilities are
classified as current unless F-Secure has unconditional
right to postpone their repayment by at least 12 months
from the end date of the reporting period.
Presentation of expenses
Classification of the functionally presented expenses
has been made by presenting direct expenses in their
respective functions.
75
Financial statements F-Secure Corporation
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Consolidated
financial statements
Corporate Governance
F-Secure Corporation
financial statements
1. Revenue
EUR 1,000 FAS 2023
FAS 30 June –
31December 2022
Geographical information
Nordic countries 39,734 19,832
Europe excl. Nordics 48,403 24,184
North America 19,070 6,914
Rest of the world 5,671 2,462
Total 112,878 53,391
2. Other operating income
EUR 1,000 FAS 2023
FAS 30 June –
31December 2022
Government grants 330 181
Transition services 426 291
Intercompany 2,036 618
Other 57
Total 2,849 1,090
Government grants are recognized as income over those periods in which the
corr
esponding expenses arise.
3. Depreciation and amortization
EUR 1,000 FAS 2023
FAS 30 June –
31December 2022
Depreciation and amortization of non-
currentassets
Other intangible assets –3,417 –4
Goodwill –3,546
Capitalized development –2,098 –675
Intangible assets –9,062 –679
Machinery and equipment –27 –5
Tangible assets –27 –5
Total depreciation and amortization –9,089 –684
Depreciation and amortization by function
Sales and marketing –44 –6
Research and development –2,221 –678
Administration –6,824
Total depreciation and amortization –9,089 –684
Amortization of goodwill and most of amortization of other intangible assets relate
to acquisition of mobile consumer security business from Lookout Inc. See group
disclosure 12. Acquisitions.
76
Financial statements F-Secure Corporation
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Consolidated
financial statements
Corporate Governance
F-Secure Corporation
financial statements
4. Personnel expenses
EUR 1,000 FAS 2023
FAS 30 June –
31December 2022
Personnel expenses
Wages and salaries –18,128 –6,814
Pension expenses –3,829 –1,425
Other social expenses –754 –254
Total –22,711 –8,493
Compensation of key management personnel
Wages and other short-term employee benefits –2,341 –897
Wages and other short-term employee benefits
CEO and President –500 –180
Members of the Board of Directors –270 –255
Wages and other short-term employee benefits of the Board of Directors and CEO
and President: see group disclosure 24. Related party disclosures.
The CEO’s retirement age and the determination of his pension conform to the
standard rules specified by Finland’s Employee Pension Act (TYEL). The pension cost
of the CEO during the financial period was 82 thousand euro (after demerger on 30
June 2022 45 thousand euro). The period of notice for the CEO is six (6) months both
ways and CEO is entitled to severance payment equivalent of six (6) months’ salary.
FAS 2023
FAS 30 June –
31December 2022
Average number of personnel 291 243
Personnel by function 31 Dec
Delivery 37 36
Sales and marketing 44 34
Research and development 185 153
Administration 33 21
Total 299 244
5. Audit fees
EUR 1,000 FAS 2023
FAS 30 June –
31December 2022
Audit fees, PricewaterhouseCoopers –187 –95
Audit related feed, PricewaterhouseCoopers
Tax consulting, PricewaterhouseCoopers
Other consulting, PricewaterhouseCoopers –1,233
Total –1,420 –95
6. Financial income and expenses
EUR 1,000 FAS 2023
FAS 30 June –
31December 2022
Interest income 378 36
Interest expense –8,675 –1
Other financial income 86 5
Dividends 1,108 2,565
Exchange gains and losses 4,929 –430
Other financial expenses –315 –153
Total –2,488 2,022
7. Appropriations
EUR 1,000 FAS 2023
FAS 30 June –
31December 2022
Depreciation difference –7,566
Total –7,566
8. Income taxes
EUR 1,000 FAS 2023
FAS 30 June –
31December 2022
Income tax for the year –2,535 –2,735
Total –2,535 –2,735
Result before appropriations and tax 21,667 16,020
77
Financial statements F-Secure Corporation
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Consolidated
financial statements
Corporate Governance
F-Secure Corporation
financial statements
9. Non-current assets
INTANGIBLE ASSETS TANGIBLE ASSETS
Other
intangible Goodwill
Capitalized
development
Incomplete
development
Advance
payments Total
Machinery &
equipment Other tangible Total
Acquisition cost Jun 30, 2022 3,898 2,346 134 6,378 9 9
Additions 588 2,359 413 3,361 28 33 60
Transfers 3,265 –3,265
Acquisition cost Dec 31, 2022 588 7,162 1,441 548 9,739 37 33 69
Additions 87,438 60,791 1,917 5,708 155,853 39 18 57
Transfers 1,544 1,917 –3,357 –103
Acquisition cost Dec 31, 2023 89,570 60,791 9,079 6,152 165,592 76 50 126
Acc. depreciation Jun 30, 2022
Depreciation for the period –675 –675 –5 –4 –9
Acc. depreciation Dec 31, 2022 –675 –675 –5 –4 –9
Depreciation for the period –3,395 –3,546 –2,098 –9,040 –27 –22 –49
Acc. depreciation Dec 30, 2023 –3,395 –3,546 –2,773 –9,715 –32 –26 –58
Book value as at Dec 31, 2022 588 6,487 1,441 548 9,064 32 29 61
Book value as at Dec 31, 2023 86,175 57,244 6,305 6,152 155,877 45 24 69
Goodwill and most of other intangible assets additions relate to acquisition of mobile consumer security business from Lookout Inc. See group disclosure 12. Acquisitions.
78
Financial statements F-Secure Corporation
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Consolidated
financial statements
Corporate Governance
F-Secure Corporation
financial statements
10. Investments in group companies
EUR 1,000
Shares in
group companies Total
Book value as at Jan 1 53 53
Additions 66,771 66,771
Decreases –3 –3
Book value as at Dec 31 66,821 66,821
Name
Country of
incorporation
Share of
ownership (%)
Parent F-Secure Corporation, Helsinki Finland
F-Secure Data Oy, Helsinki Finland 100
F-Secure Inc., Palo Alto United States 100
F-Secure (UK) Ltd, Buckinghamshire United Kingdom 100
F-Secure GmbH, Munich Germany 100
F-Secure Pvt Ltd, Mumbai India 100
F-Secure Iberia SL, Barcelona Spain 100
F-Secure s.r.o, Bratislava Slovakia 100
11. Inventories
EUR 1,000 FAS 2023 FAS 2022
Other inventories 35 41
12. Receivables
EUR 1,000 FAS 2023 FAS 2022
Current receivables
Trade receivables 18,001 14,255
Income tax receivable 1,174
Other receivables 325 1,066
Prepaid expenses and accrued income 6,885 4,133
Total 26,386 19,454
Receivables from group companies
Trade receivables 5,063 3,798
Other receivables 1,206 967
Total 6,269 4,765
Current receivables total 32,655 24,219
Material items included in prepaid expenses and
accrued income
Prepaid royalty 879 846
Grant receivables 382 52
Other prepaid expenses 4,564 1,738
Accrued income 1,060 1,497
Total 6,885 4,133
13. Cash and short-term deposits
EUR 1,000 FAS 2023 FAS 2022
Cash at bank and in hand 12,935 18,673
79
Financial statements F-Secure Corporation
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Consolidated
financial statements
Corporate Governance
F-Secure Corporation
financial statements
14. Statement of changes in shareholders’ equity
Parent Company FAS
EUR 1,000 Share capital
Unrestricted
equity
reserve
Retained
earnings Total equity
Equity 30 June 2022 80 9,590 9,670
Result of the financial year 13,285 13,285
Equity 31 December 2022 80 9,590 13,285 22,956
Result of the financial year 11,566 11,566
Dividends –12,227 –12,227
Equity 31 December 2023 80 9,590 12,624 22,294
15. Shareholders’ equity
Issued and fully paid
Number of
shares Share capital
Unrestricted
equity reserve
1 January 2023 174,526,944 80 9,590
Share issue 146,221
31 December 2023 174,673,165 80 9,590
The share capital amounted to 80,000 euro was formed in the demerger on 30 June
2022. The number of shares was 174,673,165 (no own shares) at the end of 2023.
Company has made two directed share issues in March 2023 to the plan participants
of the Company’s Performance Share Plan and Restricted Share plan. The shared
issued account for the rewards earned from the performance period 2020–2022 and
retention period 2021–2022.
A share has no nominal value. Accountable par value is EUR 0.01.
Distributable shareholders’ equity on December 31, 2023
EUR 1,000
Unrestricted equity reserve 9,590
Retained earnings 1,058
Result of the financial year 11,566
Less capitalized development expense –6,305
Distributable shareholders’ equity on 31 December 2023 15,909
16. Share-based payment transactions
See group disclosure 19. Share-based payment transactions.
80
Financial statements F-Secure Corporation
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Consolidated
financial statements
Corporate Governance
F-Secure Corporation
financial statements
17. Liabilities
EUR 1,000 FAS 2023 FAS 2022
Non-current liabilities
Deferred revenues 5,715 3,541
Bank loans 162,000
Total 167,715 3,541
Liabilities to the group companies
Cashpool 1,356 1,199
Total 1,356 1,199
Total non-current liabilities 169,071 4,740
Current liabilities
Deferred revenues 15,544 16,856
Trade payables 3,863 1,563
Bank loans 30,000
Provision 200
Other liabilities 654 408
Accrued expenses 8,062 4,971
Total 58,324 23,797
Liabilities to the group companies
Trade payables 1,118 54
Other liabilities 10,017 563
Total 11,136 617
Total current liabilities 69,459 24,414
Material amounts shown under accruals and
deferred income
Accrued personnel expenses 4,278 3,677
Restructuring 1,108
Accrued expenses 2,675 1,194
Income taxes 99
Total 8,062 4,971
18. Financial risk management objectives and policies
See Group disclosure 21. Financial risk management.
19. Operating lease commitments
The Group has commercial leases on office space and on motor vehicles. Leases
have an average life of two to three years with renewal terms included in the
contracts.
Future minimum rentals payable under non-cancellable operating leases as at
31 December are as follows:
As lessee
EUR 1,000 FAS 2023 FAS 2022
Within one year 922 808
After one year but not more than five years 85 807
Total 1,007 1,615
81
Financial statements F-Secure Corporation
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Consolidated
financial statements
Corporate Governance
F-Secure Corporation
financial statements
Signatures of the Board of Directors
Helsinki, 15 February 2024
Pertti Ervi Risto Siilasmaa Madeleine Lassoued
Chair
Thomas Jul Petra Teräsaho Sami Salonen
Timo Laaksonen
CEO and President
Auditors’ note
Our auditors’ report has been issued today.
Helsinki, 16 February 2024
PricewaterhouseCoopers Oy
Authorized Public Accountants
Samuli Perälä
Authorized Public Accountant
82
Financial statements F-Secure Corporation
Financials
F-Secure 
Sustainability Statement
Annual Report 2023
Consolidated
financial statements
Corporate Governance
F-Secure Corporation
financial statements
To the Annual General Meeting of F-Secure Corporation
Report on the Audit of the Financial Statements
Opinion
In our opinion
– the consolidated financial statements give a true and fair view of the group’s
financial position, financial performance and cash flows in accordance with IFRS
Accounting Standards as adopted by the EU
– the financial statements give a true and fair view of the parent company’s financial
performance and financial position in accordance with the laws and regulations
governing the preparation of financial statements in Finland and comply with
statutory requirements.
Our opinion is consistent with the additional report to the Audit Committee.
What we have audited
We have audited the financial statements of F-Secure Corporation (business identity
code 3269349-7) for the year ended 31 December 2023. The financial statements
comprise:
– Statement of Comprehensive Income, Statement of Financial Position, Statement
of Cash Flows, Statement of changes in Shareholders’ equity and notes, which
include material accounting policy information and other explanatory information
– the parent company’s balance sheet, income statement, cash flow statement and
notes.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our
responsibilities under good auditing practice are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Independence
We are independent of the parent company and of the group companies in
accordance with the ethical requirements that are applicable in Finland and are
relevant to our audit, and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
To the best of our knowledge and belief, the non-audit services that we have provided
to the parent company and group companies are in accordance with the applicable
law and regulations in Finland and we have not provided non-audit services that are
prohibited under Article 5(1) of Regulation (EU) No 537/2014. The non-audit services
that we have provided are disclosed in note 8 to the Financial Statements.
Our Audit Approach
Overview
– Overall group materiality: € 1,300,000
– We have audited the parent company and one subsidiary
– Accounting for business combinations
– Capitalization of R&D costs
Auditor’s Report
(Translation of the Finnish Original)
Materiality
Group
scoping
Key audit
matters
83
Auditor’s report
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
As part of designing our audit, we determined materiality and assessed the risks of
material misstatement in the financial statements. In particular, we considered where
management made subjective judgements; for example, in respect of significant
accounting estimates that involved making assumptions and considering future
events that are inherently uncertain.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is
designed to obtain reasonable assurance whether the financial statements are free
from material misstatement. Misstatements may arise due to fraud or error. They are
considered material if individually or in aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of the financial
statements.
Based on our professional judgement, we determined certain quantitative
thresholds for materiality, including the overall group materiality for the consolidated
financial statements as set out in the table below. These, together with qualitative
considerations, helped us to determine the scope of our audit and the nature, timing
and extent of our audit procedures and to evaluate the effect of misstatements on the
financial statements as a whole.
Overall group materiality € 1,300,000
How we determined it Group materiality has been determined based on profit
before taxes
Rationale for the materiality
benchmark applied
We chose profit before tax as the benchmark because,
in our view, it is relevant benchmark to describe the
volume and profitability of the Group’s operations.
How we tailored our group audit scope
We tailored the scope of our audit, taking into account the structure of the F-Secure
group, the accounting processes and controls, and the industry in which the group
operates.
We have audited the parent company and one subsidiary as part of our audit of the
consolidated financial statements. We have obtained sufficient and appropriate
evidence regarding the financial information of the Group as a whole to provide a
basis for our opinion on the consolidated financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These
matters were addressed in the context of our audit of the financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.
As in all of our audits, we also addressed the risk of management override of internal
controls, including among other matters consideration of whether there was
evidence of bias that represented a risk of material misstatement due to fraud.
84
Auditor’s report
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Key audit matter in the audit of the group How our audit addressed the key audit matter
Accounting for business combinations
Refer to accounting principles and note 12 for the consolidated financial
statements.
F-Secure acquired the mobile consumer security business unit of Lookout Inc
during 2023. The acquisition is accounted for as a business combination. The
purchase consideration comprises of cash payment of 207.9 million euro.
Acquired business’s net assets 118.8 million euro were identified and recognized
at fair value as of the acquisition date. The identified intangible assets relate to
technology and customer relationships. Fair values for the intangible assets have
been determined using appropriate valuation methods. The acquisition resulted in
goodwill amounting to 89.1 million euro.
Accounting for business combinations is a key audit matter in the audit due to the
high level of management judgement involved and due to the significant impacts
to consolidated financial statements.
We assessed the management’s process relating to accounting for business
combinations and valuating the acquired net assets.
Our procedures for business combination and net asset valuation included the
following procedures, among others:
– we tested the cash payment purchase consideration
– we assessed the methodology adopted by management for calculating the fair
value of technology and customer relationships
– we tested the mathematical accuracy of valuation models used
– we evaluated the appropriateness of the key assumptions in the valuation
models
– we tested the input data and related forecasts used in the valuation models
We utilised auditors experts in testing the valuation of aquired net assets.
We evaluated the appropriateness of the notes relating to accounting for business
combinations.
Capitalization of R&D costs
Refer to accounting principles and note 14 for the consolidated financial
statements.
The value of capitalized R&D costs amounted to 6.3 million euro at the balance
sheet date.
Development expenditure on new products or product versions with significant
new features are recognized as intangible assets when F-Secure has the technical
feasibility to complete the asset, has the ability and intention to use or sell the
asset; can demonstrate that the asset will generate future economic benefits; has
resources available to complete the asset; and has the ability to measure reliably
the expenditure during development.
Due to materiality and judgment associated with capitalization of R&D costs, we
have considered capitalization of R&D as key audit matter in the audit of the Group.
Our procedures included the following procedures, among others:
– We assessed appropriateness of the company’s R&D capitalization policy.
– We evaluated the design of controls over R&D capitalization.
– We assessed whether capitalization criteria for R&D projects are met.
– We tested a sample of costs capitalized during the year.
– We evaluated the relevant assumptions used in the impairment testing of
intangible assets, focusing on the reasonableness of the forecasted economic
information.
We have no key audit matters to report with respect to our audit of the parent company financial statements.
There are no significant risks of material misstatement referred to in Article 10(2c) of Regulation (EU) No 537/2014 with respect to the consolidated financial statements or the
parent company financial statements.
85
Auditor’s report
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Responsibilities of the Board of Directors and the
Managing Director for the Financial Statements
The Board of Directors and the Managing Director are responsible for the preparation
of consolidated financial statements that give a true and fair view in accordance
with IFRS Accounting Standards as adopted by the EU, and of financial statements
that give a true and fair view in accordance with the laws and regulations governing
the preparation of financial statements in Finland and comply with statutory
requirements. The Board of Directors and the Managing Director are also responsible
for such internal control as they determine is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the financial statements, the Board of Directors and the Managing
Director are responsible for assessing the parent company’s and the group’s ability
to continue as a going concern, disclosing, as applicable, matters relating to going
concern and using the going concern basis of accounting. The financial statements
are prepared using the going concern basis of accounting unless there is an intention
to liquidate the parent company or the group or to cease operations, or there is no
realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with good auditing practice will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with good auditing practice, we exercise
professional judgment and maintain professional skepticism throughout the audit.
We also:
– Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collu
-
sion, forgery, intentional omissions, misrepresentations, or the override of internal
cont
rol.
– Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the parent company’s or the
group’s internal control.
– Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
– Conclude on the appropriateness of the Board of Directors’ and the Managing
Director’s use of the going concern basis of accounting and based on the audit
evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the parent company’s or the group’s
ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause
the parent company or the group to cease to continue as a going concern.
– Evaluate the overall presentation, structure and content of the financial state
-
ments, including the disclosures, and whether the financial statements represent
t
he underlying transactions and events so that the financial statements give a true
and fair view.
– Obtain sufficient appropriate audit evidence regarding the financial information
of the entities or business activities within the group to express an opinion on the
consolidated financial statements. We are responsible for the direction, supervision
and performance of the group audit. We remain solely responsible for our audit
opinion.
We communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we have
complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the financial statements
of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
86
Auditor’s report
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Other Reporting Requirements
Appointment
We were first appointed as auditors by the annual general meeting on 31 May 2022.
Other Information
The Board of Directors and the Managing Director are responsible for the other
information. The other information comprises the report of the Board of Directors
and the information included in the Annual Report, but does not include the financial
statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in
the audit, or otherwise appears to be materially misstated. With respect to the report
of the Board of Directors, our responsibility also includes considering whether the
report of the Board of Directors has been prepared in accordance with the applicable
laws and regulations.
In our opinion
– the information in the report of the Board of Directors is consistent with the informa
-
tion in the financial statements
– the report of the Board of Directors has been prepared in accordance with the
applicable laws and regulations.
If, based on the work we have performed, we conclude that there is a material
misstatement of the other information, we are required to report that fact. We have
nothing to report in this regard.
Helsinki 16 February 2024
PricewaterhouseCoopers Oy
Authorised Public Accountants
S
amuli Perälä
Authorised Public Accountant (APA)
87
Auditor’s report
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Contact information
Information for shareholders
Financial calendar
During the year 2024, F-Secure Corporation will publish financial information as
follows:
•
Interim Report for January–March 2024 on Friday 26 April 2024
•
Half-year Financial Report for January–June 2024 on Thursday 18 July 2024
•
Interim Report for January–September 2024 on Thursday 24 October 2024
Annual General Meeting 2024
The Annual General Meeting of F-Secure Corporation is planned to be held on
13March 2024.
Sari Somerkallio
Chief Financial Officer
investor.relations@f-secure.com
+358 40 356 9251
88
F-Secure 
Annual Report 2023
Financials
Corporate Governance
Sustainability Statement
This is F-Secure
The year in numbers
President and CEO’s review
Our year
Strategy
F-Secure as an investment
A PDF optimized for printing
is available for download at
www.f-secure.com/en/investors
Corporate
Governance
89
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
General Meeting of Shareholders
Under the Finnish Companies Act, shareholders
exercise their decision-making power at the General
Meeting.
The General Meeting is normally held once a year as
an Annual General Meeting (AGM). The AGM decides
on matters stipulated by the Articles of Association and
the Finnish Companies Act, including:
– adoption of the Financial Statements
– distribution of profit for the year
– discharging the members of the Board of Directors
and the President and CEO from liability
– selection of members of the Board
– the decision on the remuneration of the Board
members
– approval of the Remuneration Policy and the
Remuneration Report
– election of the auditor and the decision on the
auditor’s remuneration, and
– other proposals submitted to General Meeting
Each share carries one vote in the General Meeting.
A shareholder may propose items to be included on
the agenda provided they are within the authority of
the General Meeting, and the Board of Directors has
received the request in advance in accordance with the
set schedule. The invitation to the AGM is published as
a stock exchange release and is made available on the
company’s website.
2023:
In 2023, the Annual General Meeting of the company
was held on 23 March 2023 at the company’s head-
quarters in Helsinki, Finland.
Auditors
ExternaI control Internal control
General meeting of shareholders
CEO
Leadership team
Board of Directors
Audit Committee
Internal controls and
processes
Risk management
Corporate Governance at
F-Secure
F-Secure corporate governance practices are based
on applicable Finnish laws, the rules of Helsinki Stock
Exchange (Nasdaq Helsinki Oy) and the regulations and
guidelines of Finnish Financial Supervisory Authority as
well as with the company’s Articles of Association. This
corporate governance statement (later simply referred
to as ’statement’) has been prepared in accordance
with the Finnish Corporate Governance Code 2020
(publicly available at http://cgfinland.fi/en/) issued by the
Securities Market Association of Finland.
Up-to-date information about F-Secure corporate
governance is available on the company’s investor
website at https://investors.f-secure.com/en. This state
-
ment is issued separately from the Board of Directors’
r
eport, and is also available on the investor website, as
well as is included in the 2023 Annual Report.
Governing bodies
The highest decision-making body in F-Secure is
the General Meeting of Shareholders which elects
the members of the Board of Directors. The Board
of Directors is responsible for the administration of
F-Secure Corporation and appropriate organization
of its operations. The Board of Directors appoints the
CEO. The CEO, assisted by the Leadership Team, is
responsible for managing the company’s business and
implementing its strategic and operational targets.
F-Secure Corporate Governance Statement 2023
Corporate Governance Statement
90
Corporate Governance
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Remuneration Report
Corporate Governance Statement
Board of Directors
Leadership team
Board of Directors
The Board of Directors is responsible for the admin-
istration of F-Secure Corporation and appropriate
or
ganization of its operations. The Board’s operations,
responsibilities and duties are based on the Finnish
Companies Act and other applicable legislation and
are supplemented by the Board Charter. These cover
the following main areas:
– approving the strategy of F-Secure, overseeing its
operations and annual budgets
– appointing and dismissing the President and CEO
– approving any major investments, acquisitions,
changes in corporate structure or other matters that
are significant or far-reaching
– ensuring that the supervision of the company’s
accounting and financial management is duly
organized
– ensuring that internal control and risk management
systems are in place
– approving personnel policies and rewards systems
– preparing matters to be handled at the General
Meeting
The Board of Directors meets as frequently as neces
-
sary and according to the Board Charter at least five
times during its term. The Boar
d of Directors has
quorum when more than half of the members are
present. An annual self-assessment is carried out by the
Board to evaluate its operations. The Board of Directors
primarily strives at unanimous decisions. If a decision
cannot be made unanimously, the decision will be
made by voting and with single majority. If the votes are
even, the Chair’s vote is decisive.
In accordance with F-Secure’s Articles of Association,
the Board of Directors comprises three to seven
members, who are elected at the Annual General
Members of the Board of Directors and the Audit Committee
Members
Independence of the
company
Independence of
major shareholders
Board of Directors
(meeting attendance)
Audit Committee
(meeting attendance)
Pertti Ervi Yes Yes Chair (20/20) Member (8/8)
Petra Teräsaho Yes Yes Member (19/20) Chair (8/8)
Calvin Gan No
2)
Yes Member (5/7)
Thomas Jul Yes Yes Member (19/20)
Madeleine Lassoued Yes Yes Member (20/20)
Sami Salonen No
2)
Yes Member (12/13)
Risto Siilasmaa Yes No
1)
Member (20/20) Member (8/8)
1)
Risto Siilasmaa is the founder of F-Secure and on 31 December 2023 owned 34.37% of F-Secure shares.
2)
Sami Salonen was elected from among F-Secure personnel, according to the process described above in 2023. In addition, Calvin Gan
who had been appointed to the Board in 2022 served on the Board until the end of 2023 Annual General Meeting.
Meeting for a period of office that extends to the end of
subsequent AGM. The Board of Directors represents all
shareholders.
Diversity is an essential part of F-Secure success.
According to Diversity Principles established by
the Board of Directors, an optimal mix of diverse
backgrounds, expertise and experience strengthens
the Board’s performance and promotes creation of
long-term shareholder value. The Diversity Principles
of the Board of Directors aim to strive towards appro
-
priately balanced gender distribution. At the Annual
Gener
al Meeting in 2023 six members representing
three different nationalities were elected to the Board.
The age structure of the Board members is 33–66 years
and two Board members are female and four are male,
and thus the underrepresented gender comprises
33.3% of all members of the Board. The Board members
have international experience in different roles in global
companies operating in different businesses and
geographical market areas. More information on the
educational and professional background of the Board
members is available on pages 95–97.
To create openness, one member of the Board of
Directors is proposed to be elected from among
F-Secure personnel. An election is arranged annually
for F-Secure personnel and each permanent F-Secure
employee is eligible to stand as a candidate. The
representatives of the Board of Directors interview
three persons who have obtained the highest number
of votes in the elections and choose a candidate from
amongst them to be proposed for election as a member
of the Board by the Annual General Meeting. Sami
Salonen was appointed to the Board of Directors from
among the employees in 2023. As an employee of the
company, the Board member elected from among
F-Secure personnel does not participate in any matters
that relate to, for example, leadership appointment (or
dismissal), remuneration or other terms of employment
or service, or industrial action, as the Board may handle
from time to time. Board member who is appointed
to the Board from among the employees serves on
91
Corporate Governance
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Remuneration Report
Corporate Governance Statement
Board of Directors
Leadership team
the Board for a period of one year, until the end of next
year’s Annual General Meeting.
The majority of Board members are independent from
the company and from its major shareholders. For a
detailed description of the members of the Board of
Directors and their shareholdings see the end of this
statement.
2023:
In 2023, the Board of Directors held 20 meetings, 4 of
which were held without convening. Audit Committee
convened 8 times.
Audit Committee
To enhance the efficiency of its work, the Board of
Directors has established an Audit Committee. The
Audit Committee functions as a preparatory body, and
the matters it addresses are brought to be decided
on by the Board of Directors. The Board of Directors
appoints from among itself the members and the Chair
of the Audit Committee. The Audit Committee must
have at least three members. The Board of Directors
confirms the main duties and operating principles of
the Audit Committee.
The Audit Committee monitors and evaluates risk
management, internal controls, IT strategy and prac
-
tices, financial reporting as well as auditing. The Audit
Committee also pr
epares a proposal for the election
of an auditor to the Board of Directors and regularly
considers the need for a separate internal audit func
-
tion. Members of the Audit Committee must have broad
b
usiness knowledge, as well as sufficient expertise
and experience with respect to the committee’s area
of responsibility and the mandatory tasks relating to
auditing.
The majority of members of the Audit Committee
shall be independent of the company and at least
one member shall be independent of the company’s
significant shareholders. The Audit Committee invites
experts to its meetings when necessary for the issues to
be discussed. External auditors are permanent invitees
to the meetings of the Audit Committee. Materials of
the Audit Committee meetings are made available for
all members of the Board of Directors.
The Audit Committee convenes at least four (4) times
a year as notified by the Chair of the Committee.
Members of the Audit Committee are listed in the table
above.
President and CEO
The Board of Directors appoints and may dismiss the
President and CEO and decides upon the President and
CEO’s remuneration and other benefits in accordance
with the Remuneration Policy. The CEO is responsible
for the day-to-day management of the company. The
CEO’s main duties include:
– managing the business according to the instructions
issued by the Board of Directors
– presenting the matters to be handled in the Board of
Directors’ meetings
– implementing the decisions made by the Board of
Directors
– other duties determined in the Finnish Companies
Act
2023:
Timo Laaksonen has been F-Secure President and
CEO since 30 June 2022.
The biographical details of the President and CEO
including the President and CEO’s shareholdings are
specified at the end of this statement. The remunera
-
tion of the President and CEO is specified in F-Secure
Remuneration Policy and Report.
Leadership Team
The Leadership Team supports the President and CEO
in the daily operative management of the company.
2023:
Current information on the F-Secure Leadership
Team can be found on our website: https://investors.f-
secure.com/en/investors/corporate_governance/
leadership_team.
For descriptions of all members of the Leadership
Team during 2023 and their roles, respective
membership periods and shareholdings, see the end
of this statement.
92
Corporate Governance
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Remuneration Report
Corporate Governance Statement
Board of Directors
Leadership team
Internal control and
riskmanagement
Risk management
Risk management and internal control processes at
F-Secure seek to ensure that risks related to the busi-
ness operations of the company are properly identified,
e
valuated, monitored, mitigated and reported in compli-
ance with the applicable regulations.
F
-Secure Board of Directors defines the principles
of risk management and internal controls which are
followed within the company. The Audit Committee
assists the Board in the supervision of F-Secure risk
management process. The President and CEO is
accountable for ensuring that the risk management
principles are implemented and applied constantly and
consistently across the organization, supported by the
Corporate Development function.
The primary goal of F-Secure risk management prin
-
ciples is to empower the organization to identify and
manage risk
s more effectively. The potential negative
impact and probability of different situations arising
from business operations of the company, its markets,
its customers, or its partners are monitored as part of
the risk management process.
F-Secure promotes continuous risk evaluation by the
company’s personnel. The relevant operational risks
identified through the risk management process
are regularly reviewed by each function, including
the twice a year review with the President and CEO
and the Leadership Team, and the Audit Committee.
Company’s statutory auditor reviews risks part of
each interim release (quarterly). Risk Management
is an integrated part of F-Secure’s governance and
management, and the risk management process is
aligned with the ISO-31000:2018 guidelines. The Audit
Committee regularly evaluates the effectiveness of the
risk management system.
Internal control
The purpose of Internal Control is to ensure that opera-
tions are effective and aligned with the strategy, and
t
hat financial reporting and management information
is reliable and in compliance with applicable regula-
tions and operating principles.
Internal cont
rol consists of all the guidelines, policies,
processes, practices and relevant information about
organizational structure that help ensure that the
business conduct is in compliance with all applicable
regulations. The purpose of internal control is also
to ensure that accounting and financial information
provides a true and accurate reflection of the activities
and financial situation of the company.
The company constantly monitors its key financial
processes linked to sales, revenue, costs and profit
-
ability as well as incoming and outgoing payment
t
ransactions. If any inconsistencies appear, the issues
are handled without delay. The company’s finance
department is responsible for the consistency and
reliability of internal control methods. The finance team,
led by the CFO, works in close cooperation with busi
-
nesses, providing relevant data for business planning
p
urposes and sales estimates. The team also regularly
assesses and monitors the reliability of estimates and
revenue recognition.
Internal audit
Audit Committee considers the need for and
appropriateness of a separate Internal Audit function
on a regular basis. To date, the Audit Committee has
concluded that, due to the size, organizational structure
and largely centrally controlled financial management
of the company, a separate Internal Audit function is not
necessary.
In the absence of an Internal Audit function, attention
is paid to periodical review of the written guidelines
and policies concerning accounting, reporting,
documentation, authorization, risk management,
internal control and other relevant matters across the
company. Related controls are also tested from time to
time. The guidelines and policies are coordinated by the
company’s finance team with active involvement by
the legal team.
The absence of a separate Internal Audit function is
considered when defining the scope of the company’s
external audit. Where necessary, the Internal Audit
services will be purchased from an external service
provider.
To facilitate transparency and exchange of information
on Internal Audit related matters, the financial manage
-
ment team has frequent meetings with the auditors.
The auditors also par
ticipate in the meetings of the
Audit Committee as permanent invitees.
The company has taken into use a Whistleblowing
Channel for employees and other stakeholders to
report any possibly corrupt, illegal, or other undesirable
conduct.
Related party transactions
The Audit Committee defines the principles for moni-
toring and assessing F-Secure related party transac-
tions. The definition of the related parties is based on
IA
S 24 standard. F-Secure collects information about its
related parties on regular basis. The Board of Directors
decides on related party transactions that are not
conducted in the ordinary course of business of the
company or are not implemented under arm’s-length
terms. Related party transactions are disclosed as part
93
Corporate Governance
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Remuneration Report
Corporate Governance Statement
Board of Directors
Leadership team
of financial statements according to the applicable
legislation.
Insider management
F-Secure complies with the applicable legislation,
including EU Market Abuse Regulation (MAR), the
regulations of the Finnish Financial Supervisory
Authority as well as Nasdaq Helsinki’s Guidelines for
Insiders. F-Secure has established its own insider policy
to complement the regulation and guidelines above.
F-Secure maintains a list of all persons who have
regular access to company’s financial data. Due to
the sensitive nature of financial information, persons
having access to financial information before publica
-
tion of an interim financial report or a year-end report
shall be subject to a t
hirty (30) day trading restriction
prior to publication of such report.
In addition, F-Secure maintains a project-specific
insider list of any projects and events which, if realized,
would be likely to have a significant effect on the value
of F-Secure share or other financial instruments, and
which have been subject to delaying of disclosure in
accordance with MAR.
F-Secure has decided not to include any persons as
permanent insiders. All persons with inside information
regarding a project will be included in the project
specific insider list.
Persons discharging managerial responsibilities
comprise the Board of Directors, the President and CEO
and other members of the Leadership Team. These
persons have a duty to notify F-Secure and the Finnish
Financial Supervisory Authority of every transaction in
their own account relating to Financial Instruments of
F-Secure within three business days (after a cumulative
threshold of EUR 5,000 per annum). The company
publishes these notifications as stock exchange
releases, as specified by MAR. All releases published on
managers’ transactions are available on the company’s
website.
Auditors
The auditor is elected by the Annual General Meeting
for a term of service ending at the close of the next
Annual General Meeting. The auditor is responsible for
auditing the consolidated and parent company finan
-
cial statements and accounting. The auditor reports to
t
he Board of Directors or the Audit Committee at least
once a year.
2023:
The Annual General Meeting held 23 March 2023
re-elected the audit firm PricewaterhouseCoopers
Oy as the company’s auditor with Authorized
Public Accountant (APA) Janne Rajalahti, as the
Company’s Responsible Auditor. On 21 April 2023,
PricewaterhouseCoopers Oy appointed APA Samuli
Perälä as the responsible auditor of F-Secure
Corporation.
F-Secure paid the auditor EUR 205 (103) thousand for
the auditing services and a total of EUR 1,233 thou
-
sand for other advisory services unrelated to auditing.
The ot
her advisory services mainly concerned
financial consultation pertaining to the acquisition of
Lookout Life consumer business.
94
Corporate Governance
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Remuneration Report
Corporate Governance Statement
Board of Directors
Leadership team
Key positions of trust
Efecte Corporation, Chair of the Board of Directors of 2011 (a member of the Board of
Directors since 2008)
QPR Software Corporation, Chair of the Board of Directors since 2021
Pointsharp Holding AB, member of the Board of Directors since 2021
WithSecure, member of the Board of Directors between 2003 and 2023, Chair of the
Board (2004–2006) and Chair of the Audit Committee (2008–2022)
Mintly Oy, founding member and Chair of the Board of Directors between 2017 and
2022
Teleste Corporation, member of the Board of Directors between 2009 and 2020
(Chair:2017–2020)
Comptel Corporation, Chair of the Board of Directors between 2011 and 2017
Stonesoft Corporation, Chair of the Board of Directors between 2004 and 2007
Previously Chair/Board member of several listed and growth companies, including
several Audit Committee chair positions
Primary working experience
Computer 2000 AG, Co-CEO and member of the Executive Board between 1995 and
2000
Computer 2000 Finland Corporation, Co-founder and CEO between 1983 and 1995
Education
Mr. Ervi holds a Bachelor of Science degree in electronics and several management
studies
Holdings: number of shares 104,669, holding 0.06%
Board of Directors 31 December 2023
Pertti Ervi, born 1957
Chair of the Board since 2022
Member of the Board’s Audit Committee since 2022
Finnish citizen
Main occupation: Independent management consultant
and a professional board member
Key positions of trust
Paulig Group, member of the Board of Directors since 2020, and Chair of Audit
Committee
Primary working experience
Enfo Group, CFO between May and November 2022
Stora Enso, Senior Vice President, Group Controller between 2016 and April 2022
Outotec Group, Vice President Group Controller between 2014 and 2015
Nokia Corporation, Head of Finance in Global Marketing between 2012 and 2014, CFO
of Nokia Mobile Phones operations in India between 2007 and 2012, Finance Director,
Strategic Marketing between 2004 and 2007 and Head of Developer Business
Marketing between 2003 and 2004
Nokia Networks, Head of Business Planning of Mobile Applications unit between 2000
and 2001, Head of Value-Based Marketing between 1999 and 2001 and Accounting
Manager, Network Systems between 1996 and 1998
Nokia Group Accounting, Financial Analyst between 1993 and 1996
United Paper Mills France SA, Paris France, Controller between 1991 and 1993
Education
Ms. Teräsaho holds a Master of Science in Accounting and Finance
Holdings: number of shares 13,380, holding 0.01%
Petra Teräsaho, born 1966
Board member since 2022
Chair of the Board’s Audit Committee since 2022
Finnish citizen
Main occupation: CFO at Valmet Automotive
1)
1)
From 1 January 2024, main occupation is board professional.
95
Corporate Governance
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Remuneration Report
Corporate Governance Statement
Board of Directors
Leadership team
Primary working experience
MATTA Holding, Co-founder and CEO between 2019 and 2021
Nets Group, CEO and Country Director in Denmark between 2017 and 2019
Ericsson, President and CEO of PT Ericsson Indonesia between 2014 and 2017, Head of
the Customer Unit in Central Europe between 2012 and 2014 and President of Ericsson
Austria GmbH between 2012 and 2013
Nokia Siemens Networks, Head of West Europe between 2011 and 2012, Head of the
Global Customer Business Team Deutsche Telekom between 2009 and 2011, CEO of
the Danish Branch between 2007 and 2010 and Head of Nordics between 2006 and
2009
Nokia, various position including Country Manager, General Manager and Business
Development Director between 1998 and 2007
Systematic Software Engineering, various positions between 1993 and 1998
Education
Mr. Jul holds a Master of Science degree in Software Engineering
Holdings: number of shares 10,592, holding 0.01%
Thomas Jul, born 1967
Board member since 2022
Danish citizen
Main occupation: CEO of Inpay
Madeleine Lassoued, born 1990
Board member since 2022
Swedish citizen
Main occupation: Head of Marketing at
Volvo On Demand
K
ey positions of trust
NEWS Group AB, member of the Board of Directors since 2021 and 2022
Lakeside Software, US, member of the Growth Advisory Board since 2023
Primary working experience
Coupleness, Investor and Marketing & Growth Advisor since 2021
Plansmaid, Co-founder
Bisnode, Head of Digital Marketing (2017–2019) and as a Digital Marketing Team
Leader (2016–2017)
BannerFlow, various positions
Education
Ms. Lassoued holds a Master of Business Administration degree in International
Economics and a Bachelor of Business Administration degree in International
Marketing
Holdings: number of shares 10,592, holding 0.01%
96
Corporate Governance
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Remuneration Report
Corporate Governance Statement
Board of Directors
Leadership team
Primary working experience
Wärtsilä, General Manager & Chief Product Owner between 2020 and 2022
Wärtsilä, General Manager Data Bridge Architecture between 2019 and 2020
Eniram, Infra Team Technical Product Owner between 2017 and 2019
Eniram, Algorithm Team Lead & Developer between 2013 and 2017
Education
Mr. Salonen holds a Master of Science degree in Control Engineering and Signal
Processing
Holdings: number of shares 5,696, holding 0.00%
Sami Salonen, born 1986
Board member since 2023
Finnish citizen
Main occupation: F-Secure, Director R&D
1)
Risto Siilasmaa, born 1966
Board member since 2022
Member of the Board’s Audit Committee since 2022
Finnish citizen
Key positions of trust
WithSecure (prior to demerger F-Secure), Chair of the Board of Directors since 2006
(member of the Board of Directors since 1988)
Quanscient Oy, member of the Board of Directors since 2022
CybExer Technologies, member of the Board of Directors since 2022
Upright Oy, Chair of the Board of Directors since 2022
Pixieray Oy, member of the Board of Directors since 2021
Komatsu International Advisory Board, member since 2020
Futurice Corporation, member of the Board of Directors since 2018
First Fellow Partners, Founding Partner and the Chair of the Board of Directors since 2016
Ministry of Finance’s Technology Advisory Board, chair since 2020
International Advisory Board of IESE, member since 2019
Global Tech Panel, an initiative of the EU High Representative for Foreign Affairs and
Security Policy, member since 2018
Nokia Corporation, Chair of the Board of Directors 2012–2020, member of the Board of
Directors 2008–2012, interim CEO 2013–2014
Elisa Corporation, Chair of the Board of Directors 2008–2012
The Federation of Finnish Technology Industries, Chair of the Board 2016–2018, Vice-Chair
of the Board 2007–2010 and 2013–2015 (member of the Board 2007–2019)
Confederation of Finnish Industries EK, Vice Chair of the Board 2017–2018 (member of the
Board 2007–2010 and 2013–2016)
The Finnish Ministry of Defence, Chairman of the working group: The Future of the Finnish
general conscription system 2009–2010
Primary working experience
F-Secure and WithSecure, Founder and CEO of WithSecure 1988–2006
First Fellow Partners, Founding Partner and the Chair of the Board of Directors since 2016
Nokia Corporation, interim CEO 2013–2014
Education
Mr. Siilasmaa holds a Master of Science degree in engineering
Holdings: number of shares 60,027,957, holding 34.37%
1)
From 1 January 2024, main occupation is Vice President, Product Engineering at F-Secure.
97
Corporate Governance
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Remuneration Report
Corporate Governance Statement
Board of Directors
Leadership team
Leadership team 31 December 2023
Primary working experience
WithSecure (prior to demerger F-Secure), Executive Vice President of Consumer
Security, and various other positions between 2012 and 2022
Tecnotree Corporation, Chief Commercial Officer between 2010 and 2012
Xtract, CEO between 2008 and 2010
First Hop, CEO between 2001 and 2008
Sonera SmartTrust, Executive Vice President between 1998 and 2001
Teamware Group Ltd, Vice President between 1993 and 1998
ICL Travel Systems, Marketing Manager between 1992 and 1993
Key positions of trust
Broadband Forum Executive Advisory Board member since 2023
Finnish American Chamber of Commerce in New York, member of the Board of
between 2018 and 2019
Broadband Multimedia Marketing Association (USA), a member of the Board of
Directors between 2018 and 2019
Kvalion Ltd, member of the Board of Directors between 2008 and 2011
Education
Mr. Laaksonen holds a Master of Science degree in Economics (International
Marketing and International Trade Law)
Holdings: number of shares 30,517, holding 0.02%
Timo Laaksonen, born 1961
President and Chief Executive Officer since2022
Finnish citizen
Firas Azmeh, born 1969
Chief Commercial Officer since 2023
1)
US citizen, Canadian citizen and Syrian citizen
Primary working experience
Lookout Life, President, between 2021 and 2023
Lookout, SVP, Worldwide Carrier Channels, between 2017 and 2021
Lookout, VP, Business Development, between 2011 and 2017
MiNO Wireless, Vice President, Business Development, between 2009 and 2011
Handango, Head of Business Development Partnerships, between 2005 and 2009
Education
Mr. Azmeh holds a Bachelor’s Degree in Economics, and a MBA in international
Business
Holdings: number of shares 0, holding 0.00%
1)
On 13 December 2023 Firas Azmeh was appointed Chief Revenue Officer effective 1 January 2024.
98
Corporate Governance
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Remuneration Report
Corporate Governance Statement
Board of Directors
Leadership team
Antero Norkio, born 1972
Senior Vice President, Corporate Development
since2022
Finnish citizen
Primary working experience
WithSecure (prior to demerger F-Secure), Vice President Product Management
(Consumer Business), and various other positions between 2011 and 2022
Airwide Solutions, Head of Global Channel Partners and Director of Product
Management between 2002 and 2011 (including the acquisition of First Hop 2007)
Taika Technologies Oy, Vice President of Product Management 2001 and 2002
Sonera SmartTrust, Director of Product Management between 1997 and 2001
Education
Mr. Norkio holds a Master of Science degree in Industrial Engineering and
Management (Strategy and International Business)
Holdings: number of shares 65,675, holding 0.04%
Richard Larcombe, born 1974
Chief Marketing Officer since 2022
British citizen
Primary working experience
WithSecure (prior to demerger F-Secure), Vice President of Global Marketing between
2019 and 2021
ismybillfair.com, co-founder and Chief Marketing Officer between 2017 and 2019
Tesco Bank, Brand and Marketing Director between 2015 and 2017
Virgin Media, Chief Marketing Officer and Director of Advertising and Sponsorship
between 2010 and 2015
The Times, Sunday Times and Times Online, Head of Marketing between 2004 and
2010
AMV BBDO, Account Director between 1998 and 2004
Grey, Account Director between 1996 and 1998
Education
Mr. Larcombe holds a degree in Psychology (BA Hons)
Holdings: number of shares 8,472, holding 0.00%
99
Corporate Governance
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Remuneration Report
Corporate Governance Statement
Board of Directors
Leadership team
Kitta Virtavuo, born 1972
Chief People & Culture Officer since 2022
1)
Finnish citizen
Primary working experience
Fiskars Group, Vice President of HR, Sales between 2020 and 2022
Fiskars Group, Vice President of HR, Living Business between 2017 and 2020
Fiskars Group, HR Director of Business Region Europe between 2016 and 2017
Nokia Corporation and Nokia Siemens Networks, various international HR leadership
positions between 1999 and 2016
Education
Ms. Virtavuo holds a Bachelor of Business Administration degree in Business
Management and Marketing
Holdings: number of shares 2,538, holding 0.00%
Sari Somerkallio, born 1972
Chief Financial Officer since 2022
Finnish citizen
Primary working experience
WithSecure (prior to demerger F-Secure), Head of Finance in Consumer Security from
February to June 2022
Fiskars Group, Vice President of Business Finance between 2020 and 2021
Fiskars Group, Senior Vice President of Finance & Business Development between
2019 and 2020
Fiskars Group, several Manager and VP positions between 2011 and 2019
Fiskars Group, Manager of Development Projects between 2009 and 2011
Wärtsilä Corporation, Project Manager and Process Manager between 2002 and 2008
Wärtsilä Corporation, Investor Relations Manager between 1999 and 2002
Merita Stockbrokers, Analyst between 1997 and 1999
Interbank, Analyst between 1996 and 1997
Education
Ms. Somerkallio holds a Master of Science degree in Mathematics and a Master of
Science degree in economics (Finance)
Holdings: number of shares 10,803, holding 0.01%
1)
On 9 February 2024, F-Secure announced that Kitta Virtavuo has decided to leave F-Secure to
pursue other career opportunities outside the company. Virtavuo will continue in her current role
until April 2024, ensuring smooth handover of her duties.
100
Corporate Governance
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Remuneration Report
Corporate Governance Statement
Board of Directors
Leadership team
TL Viswanathan, born 1979
Chief Product Business Officer since 2023
Indian citizen
Primary working experience
F-Secure, Vice President, Embedded security, 2022
Nokia Corporation, Head of Digital Operations Portfolio, between 2018 and 2022
Comptel, Director & Vice President Global Alliances, between 2014 and 2018
Oracle, Senior Account Manager APAC, between 2013 and 2014
Nokia Siemens Networks, various leadership and business development roles for
Applications, Systems integration business between 2006 and 2013
Siemens Communications, Solution Consultant between 2000 and 2006
Education
Mr. Viswanathan holds a Master’s degree in Business Administration (International
Business)
Holdings: number of shares 3,394, holding 0.00%
Toby White, born 1977
Chief Technology Officer since 2022
British and Finnish citizen
Primary working experience
WithSecure (prior to demerger F-Secure), Vice President for Research & Development
in Consumer Security 2020–2022
Wärtsilä, Vice President of Digital Engineering between 2017 and 2020
GlobalData Plc, Group CTO between 2014 and 2017
Timetric, Founder and CTO between 2008 and 2014
Cambridge University, Researcher between 2002 and 2008
Education
Dr. White holds a Master of Chemistry degree in Chemistry and a Doctor of Philosophy
degree in Theoretical Chemistry
Holdings: number of shares 27,880, holding 0.02%
In December 2023, the following leadership team changes
that came into effect on January 1, 2024 were announced:
On December 13, 2023 Firas Azmeh was appointed Chief Revenue Officer.
On December 13, 2023 Mikko Kestilä was appointed Senior Vice President, Services
and member of the Leadership Team.
Up-to-date information on the Leadership Team members is available on the
Company’s website in section “Leadership Team” (https://investors.f-secure.com/en/)
101
Corporate Governance
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Remuneration Report
Corporate Governance Statement
Board of Directors
Leadership team
A PDF optimized for printing
is available for download at
www.f-secure.com/en/investors
Remuneration
102
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Remuneration Report
Introduction
This Remuneration Report 2023 has been prepared in
accordance with the Finnish Corporate Governance
Code 2020 (publicly available at http://cgfinland.fi/en/)
and contains comprehensive information on remunera
-
tion of the Board of Directors and the President and
CEO
. All remuneration information in this report is from
1 January 2023 until 31 December 2023, except that the
Board of Directors remuneration is based on their term
of office that began in 2023 and will expire at the end
of the 2024 Annual General Meeting (as explained in
further detail in the F-Secure Corporate Governance
Statement 2023).
F-Secure Remuneration Policy was presented to the
Extraordinary General Meeting of WithSecure on 31
May 2022 that decided on the partial demerger of
WithSecure into F-Secure. The Extraordinary General
Meeting resolved, conditional upon the completion of
the Demerger, to support the proposed remuneration
policy for governing bodies of F-Secure. The Demerger
was registered with the Trade Register maintained
by the Finnish Patent and Registration Office on the
effective date on 30 June 2022. Upon registration the
Demerger was completed, and the Remuneration
Policy became applicable in F-Secure.
F-Secure Remuneration Policy describes the remunera
-
tion for the Board of Directors and the President and
CEO and the considerations of determining the policy
and operation of the policy. Remuneration Policy of
F-Secure complies with the recommendations of
the Finnish Corporate Governance Code for listed
companies, Shareholders’ Rights Directive legislation
and any other regulations and guidelines concerning
remuneration in listed companies. The Remuneration
Policy is available at F-Secure website.
According to F-Secure Remuneration Policy, the
remuneration for F-Secure management is designed
to advance the business objectives and long-term
profitability of the company. F-Secure remuneration
in general is based on rewarding for performance
and competencies. Remuneration is designed to be
competitive compared to relevant reference markets,
to increase commitment and work engagement and
to be consistent across the organization. Incentive
schemes are developed to support company’s strategy
by aligning the interests of the shareholders and the
key employees for strong performance and short and
long-term value creation of the company. The remu
-
neration of employees across the company is reviewed
r
egularly with the intention that all employees are paid
appropriately in the context of market and considering
their individual performance and competencies.
These principles have been considered in the compa
-
ny’s remuneration in the financial year 2023. In 2023,
t
he remuneration of the Board of Directors and the
President and CEO complied with the Remuneration
Policy, and there were no deviations.
The President and CEO’s remuneration follows
the same principles as the remuneration of all
other employees, and this is evident in the perfor
-
mance criteria set for the variable remuneration.
Appr
oximately half of the President and CEO’s
remuneration package is based on performance. The
existing short- and long-term incentive plans are based
on the company’s financial performance, employee
engagement and shareholder value development
to ensure a strong link between the company’s
performance and CEO remuneration. The President
and CEO is recommended to hold at least 50% of
the shares received as rewards from the long-term
incentive programs and to accumulate the shares from
the incentive programs until the value of the shares
received from the share programs equals the annual
gross base salary of the President and CEO. There are
no other restrictions set for the shares received from the
share-based incentive programs.
Remuneration in 2023
In February 2023 the Board of Directors of F-Secure
Corporation decided on the establishment of new
share-based long-term incentive plans targeted to the
management and selected key employees of F-Secure.
The share-based long-term incentive plans include a
Performance Share Plan (“PSP”) as the main plan and
Restricted Share Plan (“RSP”) as a complementary
share-based incentive plan for individually selected
key employees in specific situations. New plan periods
2023–2025 for PSP and RSP commenced at the begin
-
ning of 2023 and include a three-year performance
period f
ollowed by a possible reward payment.
The ongoing LTI programs prior to demerger from
WithSecure continue. All LTI allocations (PSP and RSP)
made originally in the shares of WithSecure were
adjusted to be the allocations of F-Secure Corporation.
Adjustments to PSP 2021–2023 and PSP 2022–2024
were made using the reference prices of the two new
companies. Criteria measurement in PSP 2020–2022
was decided to execute as if the two companies would
still form the old entity.
The total remuneration paid to the President and CEO
in 2023 was EUR 500,342 of which EUR 200,102 was in
the form of variable pay. Short Term Incentive payment
made to the President and CEO in February 2023 was
based on F-Secure H2 2022 revenue growth with 40%
weight and H2 adjusted EBITDA with 40% weight and
employee Net Promoter Score with 20% weight of total.
The Performance Share Plan 2020–2022 payment in
March 2023 was measured by the combined Total
Shareholder Return (TSR) of F-Secure and WithSecure
103
Remuneration Report
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Remuneration Report
Corporate Governance Statement
Board of Directors
Leadership team

42%
47%
45%
35%
40.1
46.7
47.4
45.7
40%
44.5

5.5%
6.1%
17.4%
4.5%
94.8
100.1
106.3
130.4
111.0
against two separate technology indexes, HACK and
OMX Technology. During the performance period, the
combined TSR of F-Secure and WithSecure accounted
for 44.1% compared to the TSR of 17.4% of HACK and the
TSR of 62.8% for OMX Technology resulting in a payout
rate of 50% out of the maximum. The President and
CEO also received in June 2023 a customary transac
-
tion bonus related to the Lookout Life acquisition.
A
t the end of 2023, the President and CEO held 30,517
shares of F-Secure.
Remuneration of the Executives 2023
F-Secure executive compensation in 2023 is described
in the table below.
Average annual remuneration (EUR) 2023 2022
1)
President and CEO
2)
500,342 179,880
Chair of the Board 80,000 80,000
Other Board Members
3)
40,500 40,500
Average employee
4)
73,241 27,686
1)
Remuneration paid for 30 June 2022–31 December 2022.
2)
Remuneration paid during the financial year, including the base
salary as well as short- and long-term incentives and transaction
bonus.
3)
The average remuneration paid to the Board Members,
excluding the employee Board member.
4)
The total wages and salaries paid in 2023 / average full-time
equivalent headcount during the same period in all countries.
The amount excludes end of employment related severances.
Revenue development
2019–2023
1)
Adjusted EBITDA development
2019–2023
1)
● Revenue, MEUR
● Revenue development, %
● Adjusted EBITDA, MEUR
● Adjusted EBITDA, % of revenue
1)
The financial information of F-Secure that is illustrated above has been derived from the
audited carve-out financial statements as at and for the years ended 31 December 2021,
2020 and 2019. Financial information presented for 2022 is on an actual basis for the period
Jul–Dec/2022 and on carve-out basis for the period Jan–Jun/2022. Financial information
presented for 2023 is on an actual basis.
104
Remuneration Report
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Remuneration Report
Corporate Governance Statement
Board of Directors
Leadership team
F-Secure’s General Meeting, held on 23 March 2023
decided that the remuneration for the Board of
Directors of F-Secure shall be paid as follows: EUR
80,000 for the Chairman of the Board of Directors, EUR
48,000 for the Chairman of each Committee, EUR
38,000 for other members of the Board of Directors,
and EUR 12,667 for a member of the Board of Directors
employed by F-Secure.
F-Secure’s General Meeting decided that approxi
-
mately 40 per cent the Board of Directors’ remuneration
is paid as shar
es in F-Secure to be repurchased from
the market. F-Secure Corporation will repurchase the
shares or transfer shares held by F-Secure Corporation
as treasury shares for the account of and on behalf of
the members of the Board of Directors of F-Secure.
For the Members of the Board of Directors, changes
in the holdings of the company shares and rewards
paid in shares are reported according to the Market
Abuse Regulation. Related stock exchange releases are
available on the company’s website.
The travel expenses and other costs of the members
of the Board of Directors of F-Secure directly related
to board work are paid in accordance with F-Secure
compensation policy in force from time to time.
Each member of the Board of Directors of F-Secure is
paid a predetermined travel fee in addition to travel
expenses for meetings held outside their country of
residence. A separate meeting fee of EUR 1,000 is paid
to the Board members travelling from another country
to an on-site meeting within the European continent. If
inter-continental travel is required, the fee is EUR 2,000.
The travel expenses and other costs directly related
to the Board work of the members of the Board of
Directors are paid in accordance with the company’s
compensation policy in force at any given time.
Remuneration of the Board of Directors
The Board of Directors Remuneration in 2023
Member
Annual fee paid in
cash, EUR
Annual fee paid in
shares, EUR
Annual fee paid in
shares, pcs
Meeting fees paid,
EUR Total, EUR
Pertti Ervi 48,002 31,998 10,848 5,000 85,000
Madeleine Lassoued 22,800 15,200 5,153 5,000 43,000
Thomas Jul 22,800 15,200 5,153 5,000 43,000
Risto Siilasmaa 22,800 15,200 5,153 38,000
Petra Teräsaho 28,800 19,200 6,509 48,000
Sami Salonen
1)
7,602 5,065 1,717 12,667
Calvin Gan
2)
0 0 0 0
Total 152,804 101,863 34,533 15,000 269,667
1)
Board member selected among personnel from 23 March 2023 onwards.
2)
Board member selected among personnel until 22 March 2023. No payments were made in 2023.
105
Remuneration Report
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Remuneration Report
Corporate Governance Statement
Board of Directors
Leadership team
The remuneration of the President and CEO is decided
by the Board of Directors. The main components of the
President and CEO’s total remuneration are base salary
and short- and long-term incentives. In addition, he may
participate in the voluntary Employee Share Savings
Plan (ESSP) as approved by the Board of Directors. The
aim of the ESSP is to encourage employees to acquire
and own F-Secure shares, and it is intended to align the
interests of the shareholders and the employees as well
as to increase employees’ long-term commitment to
the company.
Salaries and financial benefits paid in and accrued
based on 2023 are described below:
Remuneration of the President and CEO
Short-term incentive (STI) payout for the President
and CEO is 50% of annual base salary if targets are met,
maximum payout being equal to the annual base salary.
F-Secure Short Term Incentive plan objectives were
set for the period of 1 January–31 December 2023. The
STI Plan of 2023 for the President and CEO was based
on F-Secure 2023 combined revenue and adjusted
EBITA growth with 80% weight and employee Net
Promoter Score with 20% weight of total. The overall
performance for these two criteria was evaluated and
resulted in no reward payment.
In 2023, the President and CEO, Timo Laaksonen
received a STI payment in February based on objec
-
tives related to F-Secure Short Term Incentive plan
o
bjectives of July–December 2022. The objectives of the
plan were H2 2022 revenue growth with 40% weight,
H2 2022 adjusted EBITDA growth with 40% weight and
employee Net Promoter Score growth with 20% weight.
The weighted performance for these three criteria for
H2 2022 was 114%. The reward was in total EUR 85,500.
STI Plan 2023
STI Target
(% of base
salary) Performance Criteria Weight Performance
Total
Weighted
Performance Payment
STI 2023
(January–December)
50%
Revenue and adjusted EBITA
Growth
80% 0%
0% Q1 /2024
Employee Engagement
(eNPS)
20% 0%
STI Plan H2 2022
STI Target
(% of base
salary) Performance Criteria Weight Performance
Total
Weighted
Performance Payment
STI 2022
(July–December)
50%
Revenue growth, H2 2022 40% 75%
114%
February
2023
Adjusted EBITDA, H2 2022 40% 109%
Employee Engagement (eNPS) 20% 200%
EUR
Payments in
2023
Accrued
based on 2023
Base salary, including
fringe benefits 300,240 –
Pension / Other financial
benefits
Transaction bonus
1)
36,000 5,055
Short-term incentive (STI)
Earning period H2/2022 85,500
Earning period 2023 –
Long-term incentive (LTI)
EUR/shares
2)
– paid in cash, EUR 42,618 –
– paid in shares, EUR / pcs 35,984/ 10,977 –
Total 500,342 5,055
1)
Discretionary cash bonus for closing of Lookout Life acquisition
2)
Performance Share Plan (PSP) 2020–2022 payment
106
Remuneration Report
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Remuneration Report
Corporate Governance Statement
Board of Directors
Leadership team
A Long-term incentive (LTI) payment was made to the
President and CEO in March 2023. The LTI payment
was based on WithSecure 2020–2022 Performance
Share Plan. The payment was made 54% cash and 46%
in shares. In 2023 the President and CEO was granted
47,000 shares within the Performance Share Plan (PSP)
2023–2025 according to the guidelines defined in the
company’s Remuneration Policy. This grant represents
the target level reward, the maximum reward being two
times the target allocation. Final reward is determined
based on the extent to which the targets have been
reached during the performance period. The President
and CEO was granted a one-time allocation of 12,373
shares within the Restricted Share Plan (RSP) 2023–
2025. The reward is conditional to continuous service
with the company at the time of payment in 2026.
In June 2023, the Board of Directors approved a
customary transaction bonus to some key individuals
for the closing of the Lookout Life acquisition. The
President and CEO received a bonus of EUR 36,000.
Target remuneration
President and CEO Pay mix 2023
50% Base salary
LTI 25%
STI 25%
The key terms of service of
the President and CEO
The contract of the President and CEO is an indefinite
contract with a six-month period of notice both ways. If
the Company terminates the contract for reasons other
than a breach of the contract, the President and CEO
shall be entitled to receive severance pay equivalent
to six (6) months’ salary in addition to the salary for the
notice period.
The Company has obtained a life insurance for the
President and CEO with an amount equaling the annual
gross salary of the President and CEO.
The President and CEO does not have a supplementary
pension plan, and the determination of his pension
conforms to the standard rules specified by Finland’s
Employee Pension Act (TYEL). The President and CEO’s
retirement age is also determined by the statutory
pension system and is 65 years under the applicable
Finnish legislation.
The President and CEO – Current LTI Plans
Share Plan
LTI Target
(pcs of shares) Performance Criteria Weight Performance Payment
PSP 2021–2023
43,160
Absolute Total Shareholder Return
100% – H1 / 2024
PSP 2022–2024
41,562
Absolute Total Shareholder Return
100%
– / Plan ongoing H1 / 2025
PSP 2023–2025
47,000
Absolute Total Shareholder Return
70%
– / Plan ongoing H1 / 2026
Profitable growth (average revenue
growth 2023–2025 (%) and adjusted
EBITA 2025 (%))
30%
RSP 2023–2025
12,373
Fixed share reward amount and a
retention period of three years
– – / Plan ongoing H1 / 2026
107
Remuneration Report
Financials
F-Secure 
Corporate Governance
Sustainability Statement
Annual Report 2023
Remuneration Report
Corporate Governance Statement
Board of Directors
Leadership team
F-Secure Corporation
Tammasaarenkatu 7
00180 Helsinki
Tel. +358 9 2520 0100
helsinki@f-secure.com
www.f-secure.com
Financials
F-Secure 
Corporate Governance
Sustainability Statement
9845006BFDJF0375E4662023-01-012023-12-319845006BFDJF0375E4662022-01-012022-12-319845006BFDJF0375E4662023-12-319845006BFDJF0375E4662022-12-319845006BFDJF0375E4662021-12-31FSE:InvestedEquityMember9845006BFDJF0375E4662022-01-012022-06-30FSE:InvestedEquityMember9845006BFDJF0375E4662022-06-30FSE:InvestedEquityMember9845006BFDJF0375E4662022-01-012022-06-30ifrs-full:IssuedCapitalMember9845006BFDJF0375E4662022-01-012022-06-30FSE:ReserveForInvestedUnrestrictedEquityMember9845006BFDJF0375E4662022-01-012022-06-30ifrs-full:RetainedEarningsMember9845006BFDJF0375E4662021-12-319845006BFDJF0375E4662022-01-012022-06-309845006BFDJF0375E4662022-06-309845006BFDJF0375E4662022-12-31ifrs-full:IssuedCapitalMember9845006BFDJF0375E4662022-12-31FSE:ReserveForInvestedUnrestrictedEquityMember9845006BFDJF0375E4662022-07-012022-12-31ifrs-full:RetainedEarningsMember9845006BFDJF0375E4662022-12-31ifrs-full:RetainedEarningsMember9845006BFDJF0375E4662022-07-012022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember9845006BFDJF0375E4662022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember9845006BFDJF0375E4662022-07-012022-12-319845006BFDJF0375E4662023-12-31ifrs-full:IssuedCapitalMember9845006BFDJF0375E4662023-12-31FSE:ReserveForInvestedUnrestrictedEquityMember9845006BFDJF0375E4662023-01-012023-12-31ifrs-full:RetainedEarningsMember9845006BFDJF0375E4662023-12-31ifrs-full:RetainedEarningsMember9845006BFDJF0375E4662023-01-012023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember9845006BFDJF0375E4662023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMemberiso4217:EURiso4217:EURxbrli:shares