F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q1 2012 Earnings Presentation
26 slides from F-Secure Oyj's earnings presentation, Apr 27, 2012
Slide 1: F-Secure Corporation Interim report Q1 2012
F-Secure Corporation Interim report Q1 2012 (Unaudited) President & CEO Christian Fredrikson April 27, 2012 Protecting the irreplaceable | f-secure.com
Slide 2: Contents
Contents 1. Highlights in Q1 2. Financial performance in Q1 3. Operator business in Q1 4. Products and services 5. Market review 6. Financial targets & Outlook Protecting 2 the 27, April v irreplaceable 2012 | f-secure.com
Slide 3: 1. Highlights in Q1
1. Highlights in Q1 Protecting the irreplaceable | f-secure.com
Slide 4: Highlights in Q1
Highlights in Q1 • Solid revenue growth continued • Total revenues grew by 12% reaching level of 38.4m (Q111: 34.1m) • Good Internet security sales • Revenues by the Operator channel grew by 21 % reaching EUR 22.6 million • Growth was driven by healthy Internet security and content cloud subscriber
Slide 5: 2. Financial performance in Q1
2. Financial performance in Q1
Slide 6: Q1 Revenues – growth continued
Q1 Revenues – growth continued EURm • Revenue growth solid 45 compared to Q111, driven by the 40 operator channel 35 • Total quarterly revenues 38.4m; growth of 12% (Q111: 34.1m) 30 25 • Operator revenues 22.6m; growth of 21% (Q111: 18.7m) 20 • Other channels 15.8m; 15 growth of 2% (Q111:15.4m) 10 5
Slide 7: Q1 Profitability at satisfactory level
Q1 Profitability at satisfactory level • Profitability at satisfactory level; 30% investments in content cloud business continue 25 % • EBIT 5.4 m, 14% of revenues; 20% (Q111: 5.5m, 16%) • EPS EUR 0.02 (EUR 0.02) 15% 1 0% 5% 0% EBIT% Ave (4 qrts) 7 April 27, 2012
Slide 8: Q1 Costs – modest increase in run rate
Q1 Costs – modest increase in run rate • Total costs increased to 31.4m, +16%; EURm (Q111: 27.2m) 35 30 • Focus on new content cloud services, and market expansion (Latin America) 25 • Run rate costs from Q4 grew modestly 20 • Cost level grew by increased depreciations 15 and decreased capitalizatio
Slide 9: Q1 Deferred Revenues
Q1 Deferred Revenues • Deferred revenues were at 38.5m EURm 45 (37.5m) 40 • Healthy renewal license sales in the 35 channel business 30 25 • Deferred revenues accrued in the 20 balance sheet 15 • Dec.31,2011 38.3m 10 • Mar. 31,2011 37.5m 5 0 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 9 Ap
Slide 10: Q1 Cash position solid
Q1 Cash position solid EURm • Cash flow from operations 7.7m Steek acquisition (Q111: 7.1m) 120 Capital repayment • Market value of liquid assets on 100 • Mar.31, 2012 31.2m 80 • Dec.31, 2011 28.1m 60 • Mar.31,2011 37.1m 40 • Cash position has developed according to the longer term 20 efficient capi
Slide 11: Q1 Number of personnel
Q1 Number of personnel • At the end of Q1: 975 1200 (Q111: 851) 1000 • During Q1 new recruitments especially in the sales and 800 marketing, project delivery 600 and R&D. 400 200 0 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Sales and Marketing Research and Development Administration 11 April 27, 2
Slide 12: Q1 Regional Revenue Split
Q1 Regional Revenue Split 1-3/2012 1-3/2011 Rest of World; Rest of 14% Nordic World; North 12% America; countries; Nordic 31 % North 10 % America; countries; 10 % 33 % Rest of Rest of Europe; Europe; 45 % 45 % 12 April 27, 2012
Slide 13: 3. Operator business in Q1
3. Operator business in Q1 Protecting the irreplaceable | f-secure.com
Slide 14: Q1 Operator business – growth driver
Q1 Operator business – growth driver EURm • Q1 revenues of 22.6m (18.7m), 24 growth of 21% YoY; 22 decline of 7% QoQ 20 • Robust double digit security 18 revenue growth continued 16 • Content cloud subscriber revenues continued growth 14 • Project revenues significantly 12 lower than in Q42011 resul
Slide 15: More than 200 operator partners globally
More than 200 operator partners globally and over 250 m broadband subscribers 15 April 27, 2012
Slide 16: 4. Products and Services
4. Products and Services Protecting the irreplaceable | f-secure.com
Slide 17: F-Secure Content Cloud through operators
F-Secure Content Cloud through operators F-Secure Content Anywhere launched Request for trusted and local services With different device: • Windows PC & Mac • iPad/Android tablet • Android • iPhone 17 April 27, 2012
Slide 18: Awarded F-Secure Internet Security
Awarded F-Secure Internet Security • F-Secure Client Security received ’Best Protection 2011’ award by AV-Test in January, 2012 • F-Secure got excellent results in AV-Test’s Malware Protection for Android in March, 2012 18 April 27, 2012
Slide 19: 5. Market review
5. Market review
Slide 20: Market review
Market review • Internet growth continues globally • Role of internet security significant for business over the Internet Internet • New business opportunities • Smartphones and tablets growing in number • New devices connected to the Internet are coming to the markets New devices • Need for new ser
Slide 21: 6. Financial targets & Outlook
6. Financial targets & Outlook
Slide 22: Financial targets
Financial targets 2012-2014 • Double digit revenue growth • The Company will continue its investments in content cloud business but also in security services • Profitability is expected to develop towards the 25% level at the end of strategy period 22 April 27, 2012
Slide 23: Outlook for 2012 (1/2)
Outlook for 2012 (1/2) • Operator channel business is expected to continue solid growth driven by good Internet security and content cloud projects with subscriber based revenues. • As overall uncertainty in the global economy and financial markets is expected to continue, this may have impact on Op
Slide 24: Outlook for 2012
Outlook for 2012 • The guidance has been revised • The management estimates for 2012: • Annual revenue growth to be between 5% and 10% • Profitability around 15% of revenues • Follows the traditional seasonality except lower Q4 • The Company has changed its vacation accrual accounting due to operati
Slide 25: 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 26: Protecting the irreplaceable
Protecting the irreplaceable F-Secure.