F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q1 2010 Earnings Presentation
22 slides from F-Secure Oyj's earnings presentation, Apr 28, 2010
Slide 1: F-Secure Corporation - Interim report Q1 2010
F-Secure Corporation - Interim report Q1 2010 (Unaudited) April 28, 2010 Kimmo Alkio, President and CEO Protecting the irreplaceable | f-secure.com
Slide 2: Highlights of Q1 2010
Highlights of Q1 2010 2 April 28, 2010 © F-Secure Corporation
Slide 3: Highlights of Q1 2010
Highlights of Q1 2010 • Revenues EUR 31.4m • Healthy growth in the number of subscribers - good base for future operator • Revenue growth +3%, YoY business • Operator revenue +10%, YoY • Solid growth and profitability; revenue growth low single digit as guided in • Traditional license revenue -4% Yo
Slide 4: Solid profitability in Q1 2010, financial performance as anticipated
Solid profitability in Q1 2010, financial performance as anticipated 4 April 28, 2010 © F-Secure Corporation
Slide 5: Q1 Revenue growth
Q1 Revenue growth • Revenue growth continued 35 • Total quarterly revenues 31.4m; growth of 3% (Q109: 30.6m) 30 • Operator revenues (incl. Storage and 25 Digital Content business) 15.6m, growth of +10% (14.2m) 20 • Other channels 15.8m, 15 decline of 4% (16.5m) 10 • Profitability • EBIT 5.5m, 18% of
Slide 6: Q1 Costs
Q1 Costs 30 • Cost level 24.1m; +8% YoY • Operating costs of Storage and Digital 25 Content business unit 20 • Capitalization of research and development costs; impact on 15 Q1 ~-0.7m 10 • Investments made into future growth 5 • Focus on operator professional services and new value added 0 services
Slide 7: Q1 Operating profit
Q1 Operating profit • Operating profit at a good level as 8 anticipated 7 • Q1 EBIT 5.5m (Q109: 6.1m); 18% of revenues 6 5 • Equity ratio continued strong 4 • Mar. 31, 2010 58 % / (67%) 1) • Dec. 31, 2009 70% 3 • Sep. 30, 2009 70% 2 • June 30, 2009 71% 1 • Mar. 31, 2009 58% / (71%)1) 1) If dividend
Slide 8: Development of EBIT margin
Development of EBIT margin • Prioritising growth over short 30 % term profitability • While seeking to improve the 25 % profitability sustainably towards EBIT of 25% over time 20 % • Longer term profitability level continues to be driven 15 % extensively by revenue growth and through systematic cost
Slide 9: Number of personnel
Number of personnel • At the end of Q1: 836 (Q409: 826; Q109: 728) • During Q4 slight personnel 900 increase in sales and marketing 800 700 600 500 400 300 200 100 0 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Sales and Marketing Research and Development Administration 9 April 28, 20
Slide 10: Q1 Cash position
Q1 Cash position Capital repayment Dividend pay-out • Cash flow from the operation for Q1 100 was 6.9 m positive (Q109: 4.9m) 90 Steek acquisition • Total cash flow 2m positive ( 3.1m ) 80 70 60 • Cash position remained at a good level 50 • Market value of liquid assets on 40 Mar.31, 2010: 35.9m 30
Slide 11: Q1 Deferred Revenues
Q1 Deferred Revenues 40 • Deferred revenues increased to 37.2m 35 • Healthy renewal sales in the quarter 30 • Deferred revenues accrued in the 25 balance sheet • Mar.31, 2010 37.2m 20 • Dec. 31, 2009 35.6m • Sep. 30, 2009 33.7m 15 • Dec. 31, 2008 37.2m 10 Deferred Revenues 11 April 28, 2010
Slide 12: 2009 Regional Revenue Split
2009 Regional Revenue Split 1-3/2010 1-12/2009 10 % 10 % 9% 9% 35 % 38 % 46 % 44 % Nordic Countries Rest of Europe North America Rest of World 12 April 28, 2010
Slide 13: Operator business: new partnerships
Operator business: new partnerships
Slide 14: Operator business as a growth driver
Operator business as a growth driver • Q110 revenues: 15.6m (14.2m) 18000 • Growth of 10% YoY, excluding one time contractual changes appr. 16% 16000 • Healthy growth in # of subscribers, competitive business 14000 model 12000 • Storage services: delayed project deliveries, low revenues 10000 • Stor
Slide 15: Over 200 operator partners globally – serving 70+m
Over 200 operator partners globally – serving 70+m audience
Slide 16: We enable millions of people to safely enjoy their connected lives
We enable millions of people to safely enjoy the exciting opportunities of their connected lives
Slide 17: Outlook
Outlook 17 April 28, 2010 © F-Secure Corporation
Slide 18: Long term objectives
Long term objectives • Continue to exceed average market growth • Scalability through strong operator-network • Geographic expansion Growth • Continue to increase Security as a Service penetration Software as a • Extend the customer base with Storage as a Service Service • New consumer centric user
Slide 19: Top line view 2010
Top line view 2010 “Good subscriber growth” • 3% total revenue growth; 31.4m Actual Actual • 10% Operator growth; 15.6m Q1 2010 • Operator contractual changes (intermediate impact) Q1 2010 • Strong Operator security subscriber growth • Delayed storage project deliveries “Temporary slowdown” • Low to
Slide 20: Q2 Outlook
Q2 Outlook • During the second half of 2010 the Group seeks to exceed average market growth • For 2010 the antivirus security market growth is anticipated to be around 5% (source: Gartner 2010). • To seek to improve the profitability sustainably towards EBIT level of 25% over time • Longer term prof
Slide 21: Thank you!
Thank you! • Forward-looking statements: Certain statements in this presentation are forward-looking, and the actual outcome could be materially different. Such forward-looking statements are based on F-Secure’s present plans, estimates, assumptions, projections and expectations and are subject to r
Slide 22: Protecting the irreplaceable
Protecting the irreplaceable F-Secure.