F-Secure Corporation interim report, 24.07.2014 09.00 (EEST)

SOLID PROFITABLITY AND CASHFLOW

Highlights in Q2


  -- Total revenues were 38.6 million (38.4m) showing growth of 1%
  -- EBIT was 5 million representing 13% of revenues  (4m,11% of revenues)
  -- Earnings per share was EUR 0.02 (EUR 0.02 )
  -- Cash flow from operations was 6.0 million positive (5.7 m positive); change
     in cash 3.3 million positive excluding paid dividend of 9.3 million (4.6 m
     positive excluding dividends of 9.3 m)
  -- The Company's cloud strategy is progressing as planned in the transforming
     security industry



Outlook for 2014 - management's estimation for the year remains unchanged

  -- Revenue is estimated to grow from 2013 with a stronger second half
  -- Profitability is estimated to be around 15% of revenues excluding one-off
     costs

Key figures               2014  2013  2014  2013   2013
-------------------------------------------------------
(Eur Million)              4-6   4-6   1-6   1-6   1-12
-------------------------------------------------------
Revenues                  38.6  38.4  77.8  76.8  155.1
-------------------------------------------------------
Operating profit*          5.0   4.0  10.1  10.0   27.1
-------------------------------------------------------
% of revenues*             13    11    13    13    17  
-------------------------------------------------------
Profit before taxes*       5.2   3.8  10.5   9.8   26.3
-------------------------------------------------------
Earnings per share (Eur)  0.02  0.02  0.03  0.04   0.11
-------------------------------------------------------
At the end of period:                 39.9  37.8   38.7
Deferred revenues                                      
-------------------------------------------------------
                                                       
-------------------------------------------------------
ROI%                       30    27    22    33    41  
-------------------------------------------------------
Equity ratio, %                        73    74    74  
-------------------------------------------------------
Debt-to-equity ratio, %                -68   -54   -66 
-------------------------------------------------------
Personnel                  951   954   951   954   939 
-------------------------------------------------------


(This report is unaudited. Unless otherwise stated the comparisons refer to the
corresponding period a year ago. The currency is euro. *1-6/14 excludes 2.9 m
of one-off costs booked in Q1) 


President and CEO Christian Fredrikson:

Our financial performance in Q2 was solid. Traditional PC-centric security
sales continued to decline along with the consumer PC market, but were
compensated by the focus businesses based on our cloud strategy, resulting in
slight revenue growth. The Company's profitability and cash flow remained at a
healthy level, giving us a solid basis to continue with our cloud strategy
execution. We are on track with the given guidance for the year. 

One year after Snowden's revelations, security and privacy threats continue to
be a concern for all of us. In the meantime, the threat landscape continues to
become more sophisticated. In April, the Heartbleed vulnerability was referred
to as the greatest Internet vulnerability of all time. In June, GameOver Zeus
grabbed headlines, and is believed to be responsible for the theft of millions
of dollars from businesses and consumers globally. I am proud that we have been
at the forefront of protecting customers throughout. Meanwhile, the disruption
of the security market continues, with mobility and cloud-based security
becoming the new focal points. In the new cloud-centric world, the need for
security is even more pronounced. 

I am pleased that F-Secure has been able to address the market transformation.
Our product portfolio fulfills the market's demand for traditional PC-based
security as well as new cloud-based security, privacy and cloud storage
products. Freedome, our next-generation security product fully powered by the
cloud, is gaining traction and subscribers. We continued winning new operator
partnerships with younited, our personal cloud service. Our corporate security
service, Protection Service for Business, is steadily gaining new customers. I
have strong confidence in our cloud strategy. 


F-Secure Financials January - June 2014

Total revenues grew by 1% to 77.8 million (76.8 m). Revenues through the
operator channel grew by 1% from the previous year to 47.4 million (46.9m),
representing 61% (61%) of F-Secure's total revenues. Revenues through the other
channels increased by 2% totaling 30.4 million (29.9 m). These channels
represented 39% of F-Secure's total revenues (39%). Deferred revenues were at
the end of the quarter 39.9 million (37.8 m). 

EBIT was 7.2 million or 10.1 million excluding one-offs of 2.9 million related
to overall restructuring costs in Q1 (10 m), representing 9% or 13% (13%) of
revenues. Earnings per share were EUR 0.03 (EUR 0.04). Cash flow from
operations was 12.1 million positive (13.1 m positive). The change of net cash
was 1.2 million negative including paid dividend of 9.3 million (1.3 m positive
including paid dividend of 9.3 m). 

Total fixed costs were 68.1 million or 65.2 million excluding one-offs of 2.9
million related to the Bordeaux re-organization and efficiency gains (64.9m),
an increase of 5% or 1% from the previous year. These are related to
investments in R&D and in Sales and Marketing activities to focus businesses
and geographical expansions. Depreciations (R&D activations, software,
hardware) increased to 4.6 million (4.4m). The capitalized development expenses
were 1.1 million (0.3 m). 

The H1 geographical breakdown of revenues is as follows: Finland and
Scandinavia 31% (29%), Rest of Europe 47% (47%), North America 10% (11%) and
Rest of the World 12% (13%). 

F-Secure business in Q2

In Q2, the Company's personal cloud business, younited, continued to run
smoothly. The Company signed five new operator contracts, among them Globe
(Philippines), Finecom (Switzerland) and Netia (Poland). In total, the Company
has approximately 25 operator partnerships with younited. In the direct
channel, younited has now been targeted to Finnish, Swedish and German markets.
Based on Net Promoter Score (NPS) studies, user satisfaction is at a high
level. This feedback will be used for further development before actively
entering new markets. In May, the Company released a younited service for SMB
customers as well. 

Security sales based on our cloud strategy are steadily growing. The Company's
focus businesses in security consist of SAFE (our multi-device offering for
consumers), Protection Service for Business (our SMB offering), and Freedome,
our next-generation security product fully powered by the cloud. These
businesses are growing and compensating for declining sales in traditional PC
security. The Company has launched new security services with several
operators; for example Frontier (USA), Darty (France) and Base (KPN Belgium).
Freedome has been well received by consumers and is producing strong subscriber
growth. 

The Company continued to gain traction and build awareness in Q2 with new
partnerships and marketing initiatives. Companies such as Facebook and Samsung
chose F-Secure as a trusted technology partner. At re:publica, one of the
biggest European summits for digital natives, the Company launched a corporate
responsibility initiative to fight for digital freedom and privacy. In May, the
Company hosted its eighth annual SPECIES conference for operators to enforce
the ecosystem. 

The Company's overall Q2 operator revenues took a hit due to the phasing out of
the legacy content cloud business with some operators, as well as declining
traditional PC-centric sales. Revenues declined by 2% to 23.3 million ( 23.8m).
This was compensated by growing corporate sales to SMBs and direct to consumer
sales. Revenues grew by 5% to 15.3 million (14.7m). 

The Company is investing in R&D in addition to Sales and Marketing activities
related to the focus businesses. These businesses consist of security/privacy
products like SAFE, Protection Service for Businesses, and Freedome, and of
younited, our personal cloud product. 

Geographically, the Company continues its expansion in Latin America with
Telefonica and American Moviles.  Our other investment area is our SMB focus in
Germany, France and the USA. The Company is also investigating new geographical
entries in the APAC area. 


Product Announcements in Q2


Freedome, which provides privacy and security by stopping online tracking,
anonymizing web browsing, encrypting Internet connections and protecting from
malware, has extended its geographical coverage with exit nodes in Sweden,
Canada, Italy, Holland and Spain. The app is also available in the local
language in these markets. (The product was previously available in these
markets in English.) Freedome is available in Europe, US, South America, Russia
and Turkey. Billed as a next-generation security and privacy app, Freedome is
attracting more users and media than any of our previous products.
http://freedome.f-secure.com/ 

In May, F-Secure launched younited for Business, which is based on the
previously launched younited by F-Secure for consumers. Younited for Business
is primarily aimed at small and medium businesses. The service is managed
through the same portal as F-Secure's Protection Service for Business, making
it easy for existing business customers to take the service in to use. In its
first phase, younited for Business is available in Europe through our partners
and resellers, with three choices of storage space: 5 GB, 100 GB or 500 GB.
http://www.younited.com/en_global/business/ 

A new feature, launched for both younited by F-Secure (for consumers) and
younited for Business is the group space, where employees and partners can in a
safe way share and collaborate on documents and other media files. 

In April 2014, Younited by F-Secure announced a brand new way for people to
collectively share photos and videos of life's events, big and small, public
and private, in real time, all in one place. Hundreds of millions of photos are
shared online per day, and the best method of grouping them has been the
hashtag - until now. Younited Events, a part of the younited product portfolio,
is a new, free app that lets people share moments from live events - weddings,
birthdays, festivals, concerts, conferences, seminars or just the cottage trip
with friends - all in one place from all users at the same event in real-time.
Younited Events has raised the interest of well-known event organizers and
media companies who are planning partnerships with  F-Secure.
https://app.younited.com/events 

A new version of F-Secure Online Scanner was made available that helps users
get rid of viruses and spyware that may cause problems on their PCs, even if
they already have security software installed on their computer. Its benefits
became evident immediately during the Gameover Zeus botnet scare when large
number of users flocked to Online Scanner to scan their devices.
http://www.f-secure.com/online-scanner 

Online Scanner was also made available to users of the world's largest social
network in a recent partnership with Facebook. When Facebook identifies an
account that is behaving suspiciously, it will redirect the user to the cleanup
process. Everything is done via the user's browser and inside Facebook, making
remediation of an infected device simple for the user. 

F-Secure Search launched in Q1/2014 and was visited by millions of users. In
Q2, it was expanded with new search capabilities. The solution now includes
support for predictive search (suggesting search keywords to use) and thereby
makes finding information in a secure manner a breeze for the consumer. The
first operator partners have deployed the service for their customers, and it
is available as part of F-Secure SAFE as well as directly at
https://search.f-secure.com/. 


Risks and uncertainties

F-Secure's risks and uncertainties are related to, among other things, the
competitiveness of F-Secure's product portfolio, competitive dynamics in the
industry, market fluctuations, pricing models (e.g. free services, cost of
content cloud services), FX changes, impact of changes in technology, timely
and successful commercialization of complex technologies and new products and
solutions, the ability to protect intellectual property (IPR) in F-Secure's
solutions as well as the use of third party technologies on reasonable
commercial terms, subcontracting relationships, regional development in new
growth markets, sustainability of partner relationships, compromising stored
personal data, service quality related penalties, and risk exposure from
increasing contractual liability requirements and forming of the new business
areas. 

Events after period-end

No material changes regarding the Company's business or financial position have
materialized after the end of the quarter. 


Annual General Meeting 2014

The annual general meeting (AGM) was held on April 3, 2014. The Meeting
confirmed the financial statements for the financial year 2013. The members of
the Board and the President and CEO were granted a discharge from liability.
The AGM approved all proposals made by the Board. The new board consists of
Risto Siilasmaa (chairman of the Board and executive committee, EC), Anu
Nissinen (member, EC), Juho Malmberg (member, EC), Pertti Ervi (chairman of
audit committee, AC), Jussi Arovaara (member, AC), Matti Heikkonen (member, AC)
and Peter Vesterbacka (member, AC). The decisions of the AGM can be found in
stock exchange release on April 3, 2014 and in the Company's web pages. 


Personnel and Organization

F-Secure's personnel totaled 951 at the end of the quarter (954).

Currently, the Leadership Team consists of the following persons: Christian
Fredrikson (President and CEO), Janne Juvonen (Customer and Market Operations),
Samu Konttinen (Consumer Security Business), Timo Laaksonen (Content Cloud
Business), Johanna Orjatsalo (Human Resources & Facilities), Pirkka Palomäki
(Chief Strategy Officer), Jari Still (R&D Operations), Pekka Usva (Corporate
Security Business) and Taneli Virtanen (Chief Financial Officer). 


Financing and Capital Structure

Cash flow from operations for H1 was 12.1 million positive (13.1m positive).
The change of net cash was 1.2 million negative including paid dividend of 9.3
million in April (1.3m positive including paid dividend). Net financial income
was 0.4 million positive (0.1m negative). 

The market value of the liquid assets of F-Secure at the end of the quarter was
47.3 million (34m). Changes in exchange rates, especially USD, JPY, SEK and
BRL, decreased slightly sales and costs. 

The Company's capital expenditure for H1 was 3.7 million (2.1m). The
capitalized development expenses were 1.1 million (0.3m). 

F-Secure's financial position remained solid. F-Secure's equity ratio at the
end of the quarter was 73% (74%) and gearing ratio was 68% negative (54%
negative). 


Taxation

As informed in the Q4 stock exchange release on February 5  2014, Finnish tax
authorities have changed their interpretation of the right to deduct paid
withholding tax in some countries. Thus, the Company has been obligated to pay
previously approved withholding tax from 2012. This applied also to the
financial year 2013. In addition, the reduction of corporate tax rate in
Finland increased booked tax in 2013 while reducing calculative tax
receivables. As a consequence, the Company booked extra tax of 3.7 million of
which 2.9 million were withholding taxes (double taxation). The Company began
the process of being refunded taxes in those countries. To date, the Company
has managed to get back approximately 0.5 million of those withholding taxes. 

Shares, Shareholders' Equity, Own Shares and Option Programs

The total number of Company shares is currently 158,798,739. The Company's
registered shareholders' equity is EUR 1,551,311.18. Currently, the Company
holds 3,027,098 own shares. 

Corporate Governance

F-Secure complies with the Corporate Governance recommendations for publicly
listed companies published by the Securities Market Association, a body
established by the Confederation of Finnish Industries EK, the Central Chamber
of Commerce and NASDAQ OMX Helsinki Ltd., as explained on F-Secure's web pages.
F-Secure published its corporate governance statement for 2013 in the Annual
Report and on the Company website. 

Market Overview, long term objectives and strategy 2014-16

The software business is in transition. The Software-as-a-Service business
model and cloud-based delivery are rapidly disrupting the traditional way of
doing business. The Company strategy has communicated its renewed strategy in
the February, Q4 interim stock exchange release. The Company is focusing on
cloud-based initiatives to serve and protect the post-PC era multi-device
environment. During the strategy period 2014-2016, the Company aims to grow the
overall subscriber base by tens of millions of users and seeks accelerating
revenue growth. As the Company invests in growth, the relative profitability
remains at its current level and longer-term profitability continues to be
driven by revenue growth and scalable operations. 

Further details of the market overview and the strategy can be found in the Q4
interim release (February 5, 2014) and on the Company's web pages. 
http://www.f-secure.com/en/web/corporation_global/company/vision-and-strategy


Outlook for 2014

Investments in 2014 focus on acquiring a significant subscriber base and
bringing new cloud-based products successfully to the market. The revenue
growth is expected to come from the Company's focus businesses, consisting of
converged PC and mobile security (SAFE), Protection Service for Business,
personal cloud (younited) and security from the cloud (Freedome). Traditional
PC security sales are expected to be in decline. Geographically, Latin America
is expected to continue as a growth driver. New fully cloud-based products are
expected to contribute to growth towards the year's end. Personal cloud sales
in the form of F-Secure's younited product are expected to develop favorably
through operators, consumers, and small and medium business users. 

Growth is expected especially from annual subscriptions of security and content
cloud products. As a consequence, estimated sales growth is higher than revenue
growth in 2014 while deferred revenues increase due to periodising of
subscription sales. 

The company expects overall one-off costs in 2014 to be less than 3 million
related to efficiency improvements and reorganization in F-Secure SDC (France).
The Company has accrued and paid 2.9 million that has been recognized in the Q1
financials. 

The management's estimation for the year is unchanged; the annual revenue is
estimated to grow from 2013 with a stronger second half. The annual
profitability is estimated to be around 15% of revenues excluding above
mentioned one-off costs. 

The revenue estimate is based on the sales pipeline at the time of publishing,
existing subscriptions and support contracts as well as current exchange rates.
The Company continues to prioritize growth over short-term profitability and
plans to invest the majority of the improved earnings in growth opportunities
in its core business. 

News conference today at 11 am

A news conference for analysts and press is arranged today, July 24, at 11 am
Finnish time at F-Secure's Headquarters, address: Tammasaarenkatu 7,
Ruoholahti, Helsinki. At the news conference, President & CEO Christian
Fredrikson will present the Q2 financial results. 

An online meeting for international investors and analysts will be held (in
English) on the same day at 2.00 p.m. (EST). To participate in the online
meeting, click on the link below: 

https://meet.F-Secure.com/gia.forsman-harkonen/FVRZPNPS


To participate in the online meeting through phone, please dial in to
+358975110100. Conference ID is 4747916. 

The webinar will be organized through Lync to enable a better experience with
video and presentation also for the international investors and analysts. If
you have not used Lync before, need to download and install it, or need more
advice on how to use it, please visit 

http://r.office.microsoft.com/r/rlidOC10?clid=1033&p1=4&p2=1041&pc=oc&ver=4&subv
er=0&bld=7185&bldver=0 

It is possible to participate through the Lync web application, but please note
that this will not have sound and it is necessary to also call in to the
meeting via phone. 

 The Q2 financial results presentation material, including a video where
Christian Fredrikson will present the Q2 results, will be available on our
Investors web pages at www.f-secure.com under About F-Secure, Investors before
the call begins. 


Financial calendar for 2014

F-Secure Corporation will publish its interim reports during 2014 as follows.

Interim Report for Q32014 - October 23, 2014


F-Secure Corporation

Additional information

F-Secure Corporation
Christian Fredrikson, President and CEO
tel. +358 9 2520 0700

Taneli Virtanen, CFO
tel. +358 9 2520 5655


This interim report is prepared in accordance with IAS 34 standard Interim
Financial Reporting and with accounting principles stated in the annual report
2013 and with the IFRS 12 -standard effective as of 1 January 2014. 



Key figures (unaudited):                                       
---------------------------------------------------------------
(EUR million)                                                  
---------------------------------------------------------------
INCOME STATEMENT          2014  2013  2014  2013  Change   2013
---------------------------------------------------------------
                           4-6   4-6   1-6   1-6     %     1-12
---------------------------------------------------------------
Revenues                  38.6  38.4  77.8  76.8     1    155.1
---------------------------------------------------------------
Cost of revenues           1.8   1.8   3.8   3.5     9     7.0 
---------------------------------------------------------------
Gross margin              36.8  36.6  73.9  73.3     1    148.1
---------------------------------------------------------------
Other operating income     0.6   0.7   1.4   1.5    -5     2.7 
---------------------------------------------------------------
Sales and marketing       20.8  19.8  42.9  38.2    12     73.6
---------------------------------------------------------------
Research and development   9.8  11.1  21.4  21.8    -2     41.7
---------------------------------------------------------------
Administration             1.8   2.4   3.8   4.9   -22     8.4 
---------------------------------------------------------------
Operating result           5.0   4.0   7.2  10.0   -28     27.1
---------------------------------------------------------------
Financial net              0.2  -0.2   0.4  -0.1           -0.7
---------------------------------------------------------------
Result before taxes        5.2   3.8   7.6   9.8           26.3
---------------------------------------------------------------
Income taxes              -1.7  -1.4  -2.4  -3.3           -9.9
---------------------------------------------------------------
Result for the period      3.5   2.4   5.2   6.5           16.5
---------------------------------------------------------------



Other comprehensive income:                                                     
--------------------------------------------------------------------------------
Exchange diff. on translating                        0.0   0.1   0.0   0.1  -0.1
foreign operations                                                              
--------------------------------------------------------------------------------
Available-for-sale fin. assets                       0.2  -0.2   0.5  -0.2   0.1
--------------------------------------------------------------------------------
Income tax rel. to components of other               0.0   0.1  -0.1   0.0   0.0
 comprehensive income                                                           
--------------------------------------------------------------------------------
Total compr. income (owners)                         3.7   2.3   5.5   6.5  16.5
--------------------------------------------------------------------------------
Earnings per share EUR                              0.02  0.02  0.03  0.04  0.11
--------------------------------------------------------------------------------
EPS diluted. EUR                                    0.02  0.02  0.03  0.04  0.11
--------------------------------------------------------------------------------





BALANCE SHEET                        30/6/2014  30/6/2013  31/12/2013
ASSETS                                                               
---------------------------------------------------------------------
Intangible assets                       15.5       19.2       16.8   
---------------------------------------------------------------------
Tangible assets                         8.9        9.1        8.3    
---------------------------------------------------------------------
Goodwill                                19.4       19.4       19.4   
---------------------------------------------------------------------
Other financial assets                  3.8        4.5        4.4    
---------------------------------------------------------------------
Non-current assets total                47.5       52.2       49.0   
---------------------------------------------------------------------
Inventories                             0.2        0.2        0.3    
---------------------------------------------------------------------
Other receivables                       40.6       35.9       39.5   
---------------------------------------------------------------------
Available-for-sale financial assets     32.9       20.3       25.7   
---------------------------------------------------------------------
Cash and bank accounts                  14.5       13.8       22.2   
---------------------------------------------------------------------
Current asset total                     88.2       70.3       87.7   
---------------------------------------------------------------------
Total                                  135.7      122.5       136.6  
---------------------------------------------------------------------



SHAREHOLDERS' EQUITY           30/6/2014  30/6/2013  31/12/2013
AND LIABILITIES                                                
---------------------------------------------------------------
Equity                            69.4       62.6       72.8   
---------------------------------------------------------------
Other non-current                 0.5        0.4        0.4    
---------------------------------------------------------------
Provisions 1)                     1.9        1.0        0.0    
---------------------------------------------------------------
Deferred revenues                 6.5        8.7        9.2    
---------------------------------------------------------------
Non-current liabilities total     8.9        9.1        9.5    
---------------------------------------------------------------
Other current                     24.0       21.7       24.8   
---------------------------------------------------------------
Deferred revenues                 33.4       29.1       29.6   
---------------------------------------------------------------
Current liabilities total         57.4       50.8       54.3   
---------------------------------------------------------------
Total                            135.7      122.5       136.6  
---------------------------------------------------------------





CASH FLOW STATEMENT                             30/6/2014  30/6/2013  31/12/2013
--------------------------------------------------------------------------------
Cash flow from operations                          12.1       13.1       28.5   
--------------------------------------------------------------------------------
Cash flow from investments                         -4.0       -2.5       -4.0   
--------------------------------------------------------------------------------
Cash flow from financing                           -9.3       -9.3       -9.3   
Activities 2)                                                                   
--------------------------------------------------------------------------------
Change in cash                                     -1.2       1.3        15.2   
--------------------------------------------------------------------------------
Cash and bank at 1 Jan                             48.0       32.9       32.4   
--------------------------------------------------------------------------------
Change in net fair value of Available-for-sale     0.5        -0.2       0.1    
--------------------------------------------------------------------------------
Cash and bank at end of period                     47.3       34.0       47.7   
--------------------------------------------------------------------------------





Statement of changes in shareholders' equity



            Share   Share    Unrestr.  Treasur  Retaine   Assets   Tranl.  Total
           ca-pit   prem.    equity       y        d      avail.    diff        
             al     fund     reserve    shares  earning   f.sale                
                                                   s                            
--------------------------------------------------------------------------------
Equity      1.6      0.2       5.1      -7.8     73.5       0.3     -0.1    72.8
 on:                                                                            
31.12.201                                                                       
3                                                                               
--------------------------------------------------------------------------------
Total                                             5.2       0.4             5.5 
comprehen                                                                       
sive                                                                            
income                                                                          
for the                                                                         
 year                                                                           
--------------------------------------------------------------------------------
Dividend                                         -9.3                       -9.3
--------------------------------------------------------------------------------
Cost of                                  0.7     -0.3                       0.4 
share                                                                           
 based                                                                          
 payments                                                                       
--------------------------------------------------------------------------------
Equity on   1.6      0.2       5.1      -7.0     69.0       0.7     -0.1    69.4
30.6.2014                                                                       
--------------------------------------------------------------------------------



NOTES

 1)The one-offs due to restructuring of the French subsidiary are approximately
1.9 million euros. 



 2)Cash flow from financing

Dividend for year 2013 0.06 euro per share totaling 9,345,749.70 euro was paid
on 15th April 2014.In 2013 paid dividend totaled 9,322,974.24 euro. 



Key ratios                        2014   2013   2013
----------------------------------------------------
                                  6 m    6 m    12 m
----------------------------------------------------
Operating result % of revenues    9.3    13.0   17.5
----------------------------------------------------
ROI %                             22.0   33.4   40.9
----------------------------------------------------
ROE %                             14.6   21.2   24.9
----------------------------------------------------
Equity ratio, %                   72.5   73.9   74.3
----------------------------------------------------
Debt-to-equity ratio %           -68.1  -54.3  -65.6
----------------------------------------------------
Earnings per share, EUR           0.03   0.04   0.11
----------------------------------------------------
Earnings per share diluted, EUR   0.03   0.04   0.11
----------------------------------------------------
Shareholders' equity              0.44   0.39   0.46
per share, EUR                                      
----------------------------------------------------
P/E ratio                         38.5   25.4   17.6
----------------------------------------------------
Capitalized expenditures. MEUR    3.7    2.1    3.7 
----------------------------------------------------
Contingent liabilities. MEUR      11.4   14.2   12.2
----------------------------------------------------
Personnel average                 941    944    949 
----------------------------------------------------
Personnel end of period           951    954    939 
----------------------------------------------------





Segment information



The Group has only one segment; data security.



Quarterly development   1/13  2/13  3/13  4/13  1/14  2/14
----------------------------------------------------------
Revenues                38.4  38.4  38.3  40.0  39.1  38.6
----------------------------------------------------------
Cost of revenues         1.7   1.8   1.5   2.1   2.0   1.8
----------------------------------------------------------
Gross margin            36.7  36.6  36.8  37.9  37.2  36.8
----------------------------------------------------------
Other operating income   0.8   0.7   0.3   0.9   0.8   0.6
----------------------------------------------------------
Sales and marketing     18.4  19.8  17.8  17.6  22.1  20.8
----------------------------------------------------------
Research and            10.7  11.1   9.5  10.4  11.5   9.8
development                                               
----------------------------------------------------------
Administration           2.5   2.4   1.5   2.1   2.0   1.8
----------------------------------------------------------
Operating result         5.9   4.0   8.4   8.8   2.3   5.0
----------------------------------------------------------
Financial net            0.1  -0.2  -0.6  -0.1   0.1   0.2
----------------------------------------------------------
Result before taxes      6.0   3.8   7.8   8.7   2.4   5.2
----------------------------------------------------------



Geographical information



Revenue            4-6/2014  4-6/2013  1-6/2014  1-6/2013
---------------------------------------------------------
Nordic countries     11.8      11.0      24.3      22.3  
---------------------------------------------------------
Rest of Europe       18.1      18.0      36.3      35.8  
---------------------------------------------------------
North America         4.0       4.4       7.9       8.7  
---------------------------------------------------------
Rest of the world     4.7       5.0       9.3      10.0  
---------------------------------------------------------
Total                38.6      38.4      77.8      76.8  
---------------------------------------------------------



Fair values

The carrying amounts of the Group's financial instruments are equivalent to
fair values. 



Assets measured at fair value                   Total  Level 1  Level 2  Level 3
--------------------------------------------------------------------------------
Available-for-sale financial assets 30.6.2014    32.9   32.8               0.1  
--------------------------------------------------------------------------------
Available-for-sale financial assets 30.6.2013    20.3   20.2               0.1  
--------------------------------------------------------------------------------
Available-for-sale financial assets 31.12.2013   25.7   25.6               0.1  
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Attachments:F-Secure_Q2_2014_EN.pdf