F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q2 2008 Earnings Presentation
21 slides from F-Secure Oyj's earnings presentation, Jul 29, 2008
Slide 1: F-Secure Corporation Interim report 2Q 2008
F-Secure Corporation Interim report 2Q 2008 July 29th, 2008 Kimmo Alkio, President and CEO
Slide 2: Q2 Highlights
Q2 Highlights • Solid revenue growth of 16% to 27.2m • Good profitability of 4.7m, 17% of revenues • Portfolio expansion: on-line back service for ISPs • Vodafone: Global Frame Agreement won for Mobile security Interim Report 2Q08 – July 29th , 2008 Page 2
Slide 3: Q2 Revenues
Q2 Revenues • Solid overall growth of 16% to 27.2m 30 • Strong ISP growth to 11.6m 25 • +6% quarter over quarter • +35% from 2Q07 (YoY) 20 • Traditional channel sales improved 15 • +5% growth from 2Q07 10 5 0 Revenues Interim Report 2Q08 – July 29th , 2008 Page 3
Slide 4: Q2 Costs
Q2 Costs 25 • Q2 Costs ~20.7m 20 • Continuously investing into future growth 15 • Costs include • Capitalization of Development costs 10 marginal • Granted stock options ~0.2m 5 • Gross margin 91% (92%) 0 S&M R&D G&A write-off Interim Report 2Q08 – July 29th , 2008 Page 4
Slide 5: Q2 Operating Result
Q2 Operating Result 7 • EBIT 4.7m • 17% of revenues 6 • +27% EBIT growth from 2Q07 5 4 • Equity ratio strong • Jun 30, 2008 82% 3 • Mar 31, 2008 71%* 2 • Dec 31, 2007 82% 1 0 -1 -2 * If dividends were paid in March Without impairment loss of Network Control equity ratio 81% - was paid in April Inter
Slide 6: Development of EBIT margin
Development of EBIT margin • Continue to prioritise growth over short 30 % term profitability 25 % • Average EBIT has improved gradually 20 % • The 2-4 year goal is to reach 25% EBIT level 15 % 10 % 5% 0% Graph shows EBIT without the non-recurring impairment loss of Network Control in 4Q06 EBIT% Ave
Slide 7: Q2 Cash position
Q2 Cash position Dividend pay-out 100 • Cash flow: 95 90 • Excluding dividend 3.8m • After dividend -7.1m 85 80 • Liquid assets 83.3m (78.1m) 75 • Market value on Jun 30th, 2008 70 65 60 55 50 Dividend Cash position Interim Report 2Q08 – July 29th , 2008 Page 7
Slide 8: Q2 Deferred Revenues
Q2 Deferred Revenues 35 • Deferred revenues accrued in balance sheet 30 • Jun 30, 2008 33.9m • Mar 31, 2008 33.7m 25 • Dec 31, 2007 31.9m • Sep 30, 2007 29.1m 20 • Development following an annual pattern 15 10 Deferred Revenues Interim Report 2Q08 – July 29th , 2008 Page 8
Slide 9: Regional Revenue Split
Regional Revenue Split 1H2008 1H2007 9% 9% 9% 9% 39 % 39 % 43 % 43 % Nordic Countries RoE North America RoW Interim Report 2Q08 – July 29th , 2008 Page 9
Slide 10: ISP Business – continued strong growth
ISP Business – continued strong growth 14000 • 11.6m of revenues 12000 • 43% of total Q2 revenues 10000 • Strong growth • +6% from 1Q08, +35% from 2Q07 8000 • Growth accelerating activities continued kEUR 6000 4000 2000 0 Interim Report 2Q08 – July 29th , 2008 Page 10
Slide 11: Growing number of ISP partners
Growing number of ISP partners 200 • 173 partners in 39 countries 180 • 4 new partners in Q2 160 • Strong competitiveness in signing new 140 partners continues 120 100 • Q2 significant partner announcements 80 • KabelBW, Germany 60 • Tele2, Germany 40 20 0 Cumulative Interim Report 2Q08 – July 29th
Slide 12: F-Secure Partners' market share of residential broadband
F-Secure Partners’ market share of residential broadband Partners’ market share of residential 40 % Europe broadband at end of 2007 35 % • 37% (34%) in Europe • 10% (10%) in NA 30 % • 9% (n/a) in Asia 25 % (estimates by Dataxis & F-Secure) 20 % 15 % NA ASIA Broadband subscribers/population 10 % • Eu
Slide 13: F-Secure Service Provider partners in the Americas
F-Secure Service Provider partners in the Americas Interim Report 2Q08 – July 29th , 2008 Page 13
Slide 14: F-Secure Service Provider partners in EMEA part 1
F-Secure Service Provider partners in EMEA part1 Interim Report 2Q08 – July 29th , 2008 Page 14
Slide 15: F-Secure Service Provider partners in EMEA part 2
F-Secure Service Provider partners in EMEA part 2 Interim Report 2Q08 – July 29th , 2008 Page 15
Slide 16: F-Secure Service Provider partners in APAC
F-Secure Service Provider partners in APAC Interim Report 2Q08 – July 29th , 2008 Page 16
Slide 17: Product announcements in Q2
Product announcements in Q2 • F-Secure Mobile Security for Windows Mobile (Apr 08) • Portfolio expansion beyond traditional security launched to ISPs • Online Backup Interim Report 2Q08 – July 29th , 2008 Page 17
Slide 18: Q2 Mobile Security Business
Q2 Mobile Security Business • Device manufacturers • Continued strong growth in trial usage • Available for a majority of the currently shipping or upcoming Nokia • Slow steady growth in revenues S60 3rd edition devices • Ca 3% of total revenues (Q2) • Partnership with Sony Ericsson and Toshiba Info
Slide 19: Number of Personnel at the end of the quarter
Number of Personnel 668 at the end of the quarter 800 700 600 500 400 300 200 100 0 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 S&M R&D G&A Interim Report 2Q08 – July 29th , 2008 Page 19
Slide 20: Future Outlook
Future Outlook • Strategy in a nutshell • Q3 2008 outlook (1) Continue to drive growth • Revenues 27.5-29.5m (2) Capitalize on industry leadership in Security • Costs below 20m as a Service (3) Develop leadership in mobile security • FY 2008 outlook • Investing in growth • Expected revenues 110-120m
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