INVESTORUPDATE · Manager is the first step •UseSSH’s unique differentiators to establish leading ... Access YourDigital Core Digital coreis whereorganizations’ mostvaluableinformation,

INVESTOR UPDATESSH COMMUNICATIONS SECURITY

Kaisa Olkkonen, CEO

21.12.2017

SSH Background and Business1

Marketing Update3

Questions and Answers 4

CONTENTS

22 December 2017 SSH Communications Security 2

SSH Strategic Direction renewed2

SSH BACKGROUND AND BUSINESS

WHAT IS SSH ABOUT


3000+ demanding customers worldwide

Industry-leading products

100+ patents

Inventor of the SSH protocol – the backbone of Internet security1

20+ years of engineering excellence

2

3

4

5

SSH STRATEGIC DIRECTION RENEWED

OUR GROWTH EQUATION (JUNE 2017)

22 December 2017 CONFIDENTIAL | SSH Communications Security 6

ELIMINATING THE SYSTEMIC

PROBLEMS

INTRODUCINGDISRUPTIVE NEW TECHNOLOGIES

EXPLOITING THE CLOUD

OPPORTUNITY

ACTIVELY MONETIZING

IPRS• Reshape and widen

offering for a more strategic vendor position

• Reposition SSH into relevant segment(s)

• Expand into more customer segments

• Rapidly introduce new technologies and products to exploit the cloud opportunity

• PrivX On-Demand Access Manager is the first step

• Use SSH’s unique differentiators to establish leading position in Cloud Access Management

• Continue IPR creation and filings

• Actively pursue licensing

• Be prepared to protect our rights in courts if necessary

GROWTH: EXPANDING OUR REACH WITH PRIVX (JUNE 2017)

Existing Base

Wider offering with PrivX

New customer segments with

PrivX

Upsell

More strategic offering

Cross-Sell

MARKET EXPANSIONWider offering for better competitive position when competing for new Fortune 1000 class customersPrivX™ creates a wider offering for existing customers and segmentsPrivX™ enables both new customer segments and new business models (SaaS) for accelerating growth


Source: Vmoksha Technologies (2017)

THE CLOUD CHANGES EVERYTHING


“More than $1 trillion in IT spending will be directly or indirectly affected by the shift to cloud during the next five years, said Gartner, Inc. This will make cloud computing one of the most disruptive forces of IT spending since the early days of the digital age.”

-- Gartner

"Cloud-first strategies are the foundation for staying relevant in a fast-paced world”

-- Ed Anderson, Gartner

SECURITY IS SLOWING DOWN THE CLOUD TRANSFORMATION


Top challenges holding back cloud projects

28%

30%

34%

38%

38%

73%

Loss of control over IT services

Concern about regulatorycompliance

Concern about the security of data

Knowledge and experience of bothIT and business managers

Concern over business continuityor disaster recovery

Concern over compromisedaccounts or insider threats

Source: Cloud Security Alliance: “Cloud Adoption Practices & Priorities Survey Report” Focus areas of SSH

THE MARKET IS GROWING


The Economist (May 28,2016)

MARKET GROWTH CONTINUES

Zion Research: Cyber Security Market Trends and Forecast 2015-2021 (August 2016)

INSIDERS ARE THE KEY THREAT AWARENESS IS INCREASING

PwC GSISS 2015: Number of detected security incidents (millions) with sources

3,4

9,4

22,724,9

28,9

42,8

2009 2010 2011 2012 2013 2014

Top 3 sources of security incidents

24%

30%

35% Current employeesFormer employees

Hackers

Projected CAGR of 9.5% between 2016 and 2021

CLOUD SECURITY GROWS EVEN FASTER


9.5% 26%vs.

The cloud security market grows significantly faster than the overall information security market

Sources: Zion Research 2016; MarketsandMarkets 2017

OVERALL INFORMATION SECURITY MARKET CLOUD SECURITY MARKET

OUR MISSION

Access Your Digital Core

Digital core is where organizations’ most valuable information, business applications, and core services exist and operate. Frictionless and secured

access to the digital core is a new competitive advantage as every organizationis either morphing into or born "digital" in the global data economy.

We help all businesses access their digital core securely and frictionlessly.

27 October 2017 CONFIDENTIAL | SSH Communications Security 6

KEY ACTIONS 2017


Internal• Personnel Engagement through the strategy renewal work with the whole SSH team.• Renewal of the target setting and incentive process to improve everybody´s

understanding of the key targets of the company and their role in reaching those targets. • Regular pulse surveys to measure the commitment and understanding.• Development of the finance tools to give us more detailed visibility to cost structures and

financial situation.• Competence analysis and recruitments based on that to build our capabilities in the new

digital business model.• Continuous building of the leadership team with internal and external recruitments and

work on the ways of working and behaviors of the leadership team.• Strong cost consciousness and reducing the losses substantially from 2016.

Journey on the performance culture change started

KEY ACTIONS 2017


Product portfolio• Universal Key Manager as the best SSH key management tool for SSH users, offering

different levels of deployment possibilities.• Crypto Auditor repackaged as a product for key defined use cases: third party access as

the key use case in the ecosystem world.• Tectia client/server as our bread and butter.• Firewall product reached the certification process stage.• PrivX On Demand Access manager as the lead product for cloud transformation.

• PrivX 1.0 launch in June and customer engagements started.• PrivX® organized as a separate Business Program to ensure focus and agility• New version of PrivX® On-Demand Access Manager in Q1/18.• Development of a SaaS version of PrivX® On-Demand Access Manager as the

next step.

From point solutions to a broader offering

KEY ACTIONS 2017


Sales• Acknowledging the volatility of the SSH turnover quarter on quarter.

• Balance between license and subscription deals to increase predictability.

• Renewing the sales teams over the year, recruitments in Germany and UK. Refocus of roles in the US.

• Understanding customer needs and behavior: Shortening sales cycles through repackaging of products.

• Adding automation and analysis to recurring business process – maximizing revenue.

• Building our capability to address the new segment for PrivX.

• Start of online sales during H1/18.

• Building the sales development team, inside sales team starting in the US, global roles starting the work in Finland.

• Theme focused campaigns continue, utilizing e.g. GDPR, ecosystem development…

• First customer satisfaction survey conducted with our customer support interfaces.

Growing customer focus, facilitating faster sales cycles

KEY ACTIONS


Marketing• Ari Vänttinen as the Chief Marketing Officer and Simo Karkkulainen as the

Chief Digital Officer.• A completely new way of addressing marketing in SSH: turning SSH

Communications Security to SSH.COM.

Turning the substantial website traffic to sales

IPR DEVELOPMENT


• As announced on December 6, 2017, SSH has entered into a patent cross-license agreement with a global technology company including a one-timelicense fee payment of 2.1 M EUR paid to SSH• The agreement does not have any direct impact on our ongoing patemnt litigation with

Sony in Germany and the UK and the court cases proceed normally

• The agreement reflects the strength of our IPR portfolio and validates our patentlicensing program• We will continue the litigation and further intensify the many active licensing negotiations

with several leading global technology companies

Announcement of new direction; Launch of PrivX; decreasing loss

Start of new PrivX Business Program; operating cash flow positive quarter

Ecommerce and new sales

model start

New marketing leader-ship and renewed mar-keting focus; first patent licensing win

PrivX™ 2.0 launch; major digital presence and marketing upgrade

Q2/17 Q3/17 Q4/17 Q1/18 Q2/18

EXECUTING THE STRATEGY

Q&A

SIZING UP THE COMPETITION

Company NotesCyberark Acquired SSH ex-partner Conjur

ScaleFT Similar approach, cloud only

aqua Well-funded, container focus

Venafi Strong in key & certificate mgmt

Cloud-Only

Also-Rans Legacy-First

Cloud-First


SSH: the smart and credible player

THE IMPACT OF GDPR


GDPR is happening fast and non-compliance can get VERY expensive

Multiple SSH product help cope with GDPR: we help reach compliance and report promptly

INVESTORUPDATE · Manager is the first step •UseSSH’s unique differentiators to establish leading ... Access YourDigital Core Digital coreis whereorganizations’ mostvaluableinformation,

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