Reported as:

range of endpoint protection, privacy and password management

solutions, and security for all the connected devices at home, both

separately and as a bundled premium offering (F-SecureTOTAL).

protection products through the operator channel, but the

company also sells consumer products through various retail

partners, as well as the company’s own web shop.

– Easy to use antivirus and internet

– A software-based solution integrated

– Combines personal information

these exceptional of times. Without their extraordinary contribu-

tion, this would not have been possible.

F-Secure has applied new IFRS16 standard from January 1, 2019 onwards with modified approach and comparatives are not restated. IFRS 15 and IFRS 9 standards have been applied from January 1, 2018 onwards

and 2017 financials are restated retrospectively.

The parent company of the Group is F-Secure Corporation

incorporated in Finland and domiciled in Helsinki. Company’s

registered address is Tammasaarenkatu 7, 00180 Helsinki. A copy

of consolidated financial statements can be downloaded on

These financial statements were authorized for issue by the

The consolidated financial statements of F-Secure Corporation

of 2021 have been prepared in accordance with International

Financial Reporting Standards (IFRS), applying the IAS and IFRS

standards as well as SIC and IFRIC interpretations that were in force

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

The consolidated financial statements are presented in euros,

which is F-Secure Corporation’s functional currency. At each

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

During 2021 there were no changes in the Group’s accounting

principles.

than in 2020 as the Group has managed to adopt new ways of

working and delivering services.

any indications of goodwill impairment. During the financial year

such indications have not been identified, and thus only annual

2020 the management assessed the Group’s capability to utilize

the taxable losses generated in these locations according to IAS

the Group has been able to utilize these losses against the profits

the RCF. The cash position has remained solid during 2021, and the

use of estimates and assumptions as well as the use of judgment

when applying accounting principles. These affect the contents of

subject to management judgment.

estimation about future profits and the recoverability of these

in Group’s balance sheet is EUR 2.1 million. Managements has

used judgment in defining potential impacts of the COVID-19

pandemic on expected credit losses and provision has been

adjusted accordingly.

The method for the valuation is Monte Carlo Simulation.

divested in December 2021 includes a deferred consideration

which is measured at discounted fair value on each reporting

date. Management judgment is used to forecast the future

and responding to advanced attacks (F-Secure Elements

and vulnerability management (F-Secure Elements Vulnerability

Management and phishd). Consumer security business revenue

comes through operator and direct consumer channels, and

the main products include F-Secure SAFE, F-Secure FREEDOME,

F-Secure SENSE, F-Secure KEY and F-Secure ID PROTECTION.

are sold to corporate customers by granting the customer access

to use the intellectual property during the license period or as

Security-as-a-Service. F-Secure delivers the product and provides

continuous automated updates against new threats. The software

and the accompanied services are highly interdependent and

Consumer customer products and vulnerability management

a-Service as they do not include a license of intellectual property.

Revenue is accounted for as a single performance obligation and

recognized over time on a straight-line basis for the contract

period.

based on the delivery of the work. For F-Secure managed

property and the service is provided by F-Secure continuously

balance sheet as

balance sheet as right-of-use asset with corresponding lease

liability. Right-of-use assets and lease liabilities are initially valued

borrowing rate is applied in discounting the remaining payments.

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%):

during the year adjusted for the effects of dilutive options.

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. For Consulting forecast period of five years is used and

for MDR the forecast period covers following six years during which the business is expected to achieve

steady state. Discount rate for Consulting is 9.8% before taxes and for MDR 13.6% before taxes.

which are revenue, profitability, and discount rate. Any reasonably possible changes in the key

assumptions in impairment tests would not cause the aggregate carrying amounts exceeding the

recoverable amounts.

Due to the COVID-19 pandemic, potential impairment of goodwill is continuously being monitored by

the management. During 2021 management did not identify indications of impairment which would have

resulted in additional testing for either of the CGUs. The risk of impairment in goodwill due to pandemic

Sensitivity to key assumptions in the impairment testings have increased slightly compared to 2020.

Management continues to monitor indications of impairment through frequent forecasting processes.

At the end of 2021 book value of right of use assets consists of buildings EUR 8.1 million (8.6m) and cars EUR 1.1 million (1.2m).

for performance based programs is based on the F-Secure Corporation share price on the grant date.

Fair value for market based programs is based on externally accepted valuation methods. The costs of

that will ultimately vest at each reporting date.

Bank loan of EUR 37,000 thousand was withdrawn on July 2, 2018. Annual repayments according to

the financing agreement are EUR 6,000 thousand. Financing agreement includes a Revolving Credit

Facility (RCF) for EUR 23,000 thousand. At previous reporting date Group had EUR 5,000 thousand

withdrawn from the RCF. During 2021 the RCF was fully repaid and was undrawn at the end of the

financial year.

Lease liabilities consists mainly of buildings (EUR 8.3 million). Cars are totalling to EUR 1.1 million and the maturity for them is mainly less

than 2 years.

Fair value hierarchy levels 1 to 3 are based on the degree to which the fair value is observable:

mainly related to credit risks, currency risk and interest rate risk.

use of liquid funds for operational and refinancing needs. Group Treasury is responsible for monitoring

cash balances and cash forecasts to keep liquidity risk at manageable level. The Group has not

Cash and bank balance was at solid level throughout 2021, and at the end of the reporting period

the Group held EUR 52.9 million in it’s bank accounts (EUR 51.4 million euro in 2020). Repayments of

the term loan according to the original financing agreement were EUR 6.0 million during 2021. The

management continues to assess potential impacts of the COVID-19 pandemic but it is no longer

considered to be a significant risk for Group’s liquidity. In case of unforeseeable short term liquidity

requirements, the Group has a Revolving Credit Facility (RCF) of EUR 23 million which was undrawn at

the end of the financial year.

currencies as the sales invoicing. In order to minimize the impact of the fluctuation of the exchange

rates, the Group uses forward currency contracts to eliminate the currency exposure of the estimated

cash flow of these currencies. At the end of the reporting period the Group did not have any open

follows:

rate fluctuations when all other variables are held constant. The open exposure against USD, GBP and

before taxes. The sensitivity calculation is based on a change of 10% in the Euro exchange rate against

the functional currencies the Group operates in.

in goodwill are GBP and ZAR. Translation differences also arise from translating Group companies’

balance sheets into euros using exchange rates prevailing on the reporting date. Internal loans are

granted mainly in subsidiaries’ home currencies. According to current policy F-Secure Corporation

does not hedge investments made in its subsidiaries.

when all other variables are held constant. The sensitivity calculation is based on a change of 10% in

the Euro exchange rate against the main functional currencies exposing the Group to translation risk.

held constant.

term related to equity ratio of the Group. The objective of the Group’s capital management is to

maintain an efficient capital structure that ensures the functioning of business operations, promotes

shareholder value and meets with the requirements set in financing agreement. The Group’s capital

structure is reviewed regularly as a part of financial performance monitoring.