F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q1 2015 Earnings Presentation
27 slides from F-Secure Oyj's earnings presentation, Apr 23, 2015
Slide 1: We Focus on Security – Interim Report Q1/2015
WE FOCUS ON SECURITY F-SECURE CORPORATION INTERIM REPORT Q1 / 2015 April 23, 2015 CEO Christian Fredrikson
Slide 2: Contents
CONTENTS • Q1 highlights • Our strategy • Key products • Q1’15 financials
Slide 3: Business Highlights
BUSINESS HIGHLIGHTS Focus on security: Personal cloud storage business sold to Synchronoss Technologies Overall security revenue grew by 6 % y-o-y totaling 35.9 million Operator security sales grew by 3 % y-o-y totaling 19.6 million, with sales of the multi-device offering SAFE offsetting decl
Slide 4: Key Figures
KEY FIGURES Eur million Eur million 4
Slide 5: Key Figures
KEY FIGURES Eur million Costs Eur million 35 50 45 30 40 25 35 30 20 25 20 15 15 10 10 5 5 0 0 Q114 Q214 Q314 Q414 Q115 Q114 Q214 Q314 Q414 Q115 Deferred revenues Sales &jaMarketing Myynti markkinointi Research && Tuotekehitys Tutkimus Development Administration Hallinto Restructuring Uudelleenjärje
Slide 6: Personal cloud storage business sold to Synchronoss Technologies
Personal cloud storage business sold to Synchronoss Technologies Price: USD 60 million Net profit from disposal in 2015 is EUR 18.6 million* The companies have established a partnership to sell services to operators * Calculated as the difference between sales price and sold assets, including
Slide 7: New Deals and Launches
NEW DEALS AND LAUNCHES First operator deal with Freedome, our security and privacy app Several operator deals with SAFE: Viettel (Vietnam), Kabel Deutschland / Vodafone (Germany), NextGenTel (Norway), AMIS (Slovenia), GVT (Brazil) and CTBC (Brazil) Launch of Booster, a tune-up tool for PC and
Slide 8: Market Review
MARKET REVIEW Threat landscape is Internet of things and getting more complex new connected devices create new threats Revelations on governmental surveillance continue New opportunities Targeted attacks threaten companies and 2015-2017 private individuals
Slide 9: We Focus on Security
WE FOCUS ON SECURITY NEW INITIATIVE Corporate cyber threats Corporate and consumer security Internet of Things NEW INITIATIVE
Slide 10: Protection Ability %
BEST PROTECTION 90 PROTECTION ABILITY % 0 0 90 NUMBER OF TEST
Slide 11: Our Core Business
OUR CORE BUSINESS CONSUMERS BUSINESS ---------------------- F-SECURE PROTECTION PROTECT SAFE SERVICE FOR ALL DEVICES BUSINESS ENSURE F-SECURE F-SECURE FREEDOME FREEDOME PRIVACY F-SECURE KEY
Slide 12: F-Secure SAFE
F-SECURE SAFE PROTECT YOUR LIFE ON EVERY DEVICE ANTI-VIRUS PARENTAL APPLICATION PRIVACY CONTROL BROWSING PROTECTION
Slide 13: Freedome
FREEDOME PRIVACY ENSURED ON EVERY DEVICE TELEPORT LOCATION BECOME WI-FI UNTRACKABLE ENCRYPTION ANONYMOUS SURFING
Slide 14: Freedome Marketing & Comms Activities
FREEDOME MARKETING & COMMS ACTIVITIES • Freedome for Mac launch in May: beta program ongoing, Republica event with keynote and stunt, online activation • Privacy Hub and Privacy Checker for engaging content marketing • PR & Social media, Youtuber collaboration • Co-op marketing to maximise exposure
Slide 15: Protection Service for Business
PROTECTION SERVICE FOR BUSINESS AUTOMATIC SOFTWARE UPDATER SECURE SECURE DATA WI-FI SHARING & EASY COLLABORATION CENTRALIZED MANAGEMENT
Slide 16: Outlook for 2015
OUTLOOK FOR 2015 The management’s estimation for the year is unchanged: Overall security revenues are anticipated to grow slightly in 2015 (2014: EUR 137.4 million) Operating profit is estimated to be around 15% of revenues (excluding the profit from the sale of the personal cloud storage busine
Slide 17: Financials Q1 2015
FINANCIALS Q1 2015
Slide 18: Personal cloud storage business reported as discontinued operations
As of the first quarter of 2015, the personal cloud storage business is reported as discontinued operations. Consequently, comparison figures related to the statement of income have been restated to represent continuing security operations only. Unless otherwise stated the comparisons refer to the c
Slide 19: Revenues
REVENUES EURm Q1 Revenues increased by 6% Total quarterly revenues 35.9m (Q114: 34.0 m); positively impacted by FX rates Operator revenues increased by 3% to 19.6m; (Q114: 18.9 m) Other channels grew by 9% to 16.4m (Q114:15.1 m) 19
Slide 20: Profitability
PROFITABILITY EURm EURm Q1 Operating Profit EBIT 5.0, 14% (Q114*: 4.4m, 13%) Earnings per share for continuing operations EUR 0.04 (EUR 0.02) Earnings per share EUR 0.11 (EUR 0.01) * Excluding non-recurring items of 0.4m 20
Slide 21: Costs
EURm COSTS Q1 costs increased by 8% Costs 30.7m (Q114 * : 28.3m) Cost increase driven by Sales & Marketing activities; i.e. SAFE business, SMB focus in Germany, France and USA, and Freedome Depreciations from past capitalized expenses were 2.1m (Q114: 2.3m) Capitalized R&D expenses were 0.5m (
Slide 22: Deferred Revenues
DEFERRED REVENUES EURm Q1 Deferred revenues grew to 44.9m (39.9m) Strong sales performance in Corporate and Direct Business 22
Slide 23: Solid Cash Position
SOLID CASH POSITION EURm Solid Cash flow in Q1 Cash flow from operations 4.6* m (Q114: 6.1m) Change in cash 47.3* m positive (Q114: 4.9m positive) primarily due to sale of personal cloud storage business Market value of liquid assets 110.2* m (Q114 : 53.0m) * Including discontinued business 23
Slide 24: Number of Personnel
NUMBER OF PERSONNEL Number of personnel 841 (Q1/14: 941)* at the end of the quarter 50 F-Secure employees became employees of Synchronoss Technologies as of 25 February 2015 * Including discontinued business 24
Slide 25: Regional Revenue
REGIONAL REVENUE 1-3/2015 1-3/2014 Rest Rest North 12% 14% America 7% North Nordic Nordic America 32% 36% 9% ° Rest of Europe Rest of Europe 45% ° 45% = F-Secure. &
Slide 26: 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 ris
Slide 27: Switch On Freedom
SWITCH ON FREEDOM f-secure.com/digitalfreedom