F-secure Oyj · OMXHEX:FSECURE
F-secure Oyj — Q4 2020 Earnings Presentation
21 slides from F-secure Oyj's earnings presentation, February 2021
Slide 1: A Solid End to an Unusual Year
A SOLID END TO AN UNUSUAL YEAR Q4/2020 Highlights Juhani Hintikka, President & CEO
Slide 2: Key Takeaways from 2020
KEY TAKEAWAYS FROM 2020 The past year was characterized by the COVID-19 pandemic, which disrupted the lives and operations of both people and organizations alike • First priority was to ensure the health and safety of our employees • Ensuring full business continuity to our customers • During the pa
Slide 3: F-Secure's 2020 in Brief
F-SECURE’S 2020 IN BRIEF (1-12/2020, EUR million) Revenue split & growth by business Revenue split & growth by geography Adjusted EBITDA Cyber Security Consulting -8% Nordics -2% Q4 Corporate Products +2% Europe (excl. Nordics) +3% Q1-Q3 +EUR12.5 m Consumer Security +6% North America +18% 35.7 Other
Slide 4: Key Takeaways from Q4/2020
KEY TAKEAWAYS FROM Q4/2020 A solid end to an unusual year • Strong orders in corporate security products visible in deferred revenue • Revenue from both Managed Detection and Response (MDR) and endpoint security grew • Customers committing to multi-year deals • Cyber security consulting revenue decr
Slide 5: Corporate Security Products Revenue Grew
CORPORATE SECURITY PRODUCTS REVENUE GREW (Q1-Q4/2020, EUR million) Revenue comparison Revenue from Endpoint Protection (EPP) solutions increased Q4 • Strong new sales especially in cloud-based products +2% YTD Q1-Q3 • Increase in orders clearly outpaced revenue growth 74.3 72.5 • Rise in contract du
Slide 6: Deferred Revenue Growth Driven by Multi-Year Deals
DEFERRED REVENUE GROWTH DRIVEN BY MULTI-YEAR DEALS FROM CORPORATE SECURITY PRODUCTS (Q3/2019 – Q4/2020, EUR million) Deferred Revenue1 Deferred Revenue growth Non-current Non-current Current Current +10% 81.0 35% 73.9 73.7 72.3 72.0 70.2 23.8 17.6 19.2 17.6 19.1 20.3 15% 10% 56.4 54.4 57.2 4% 5% 52.
Slide 7: Clients Choose F-Secure Countercept for People, Technology and Process
CLIENTS CHOOSE F-SECURE COUNTERCEPT FOR THE COMBINATION OF PEOPLE, TECHNOLOGY AND PROCESS Rationale for choosing F-Secure Countercept F-Secure Countercept deployment Customer problem and previous ways to mitigate • Detection and response capabilities need to be enhanced • No budget, time or IT staff
Slide 8: Growth in Business Security from Cloud-Native Products
GROWTH IN BUSINESS SECURITY FROM CLOUD-NATIVE PRODUCTS F-Secure Endpoint Protection for businesses • The increasing demand for the Solutions sold by F-Secure Business Security holistic endpoint security suite continues with especially EDR (Endpoint Detection and Response) orders growing • The adjace
Slide 9: Cyber Security Consulting Revenue Decreased
CYBER SECURITY CONSULTING REVENUE DECREASED (Q1-Q4/2020, EUR million) Revenue comparison Revenue from cyber security consulting decreased by 8% Q4 • Best quarter since the COVID-19 outbreak despite some of the -8% FY Q1-Q3 lockdown measures tightening in numerous locations 50.0 • Several Incident Re
Slide 10: Incident Response Team and Countercept Eliminating Advanced Persistent Threats
INCIDENT RESPONSE TEAM AND F-SECURE COUNTERCEPT ELIMINATING ADVANCED PERSISTENT THREATS Incident story by F-Secure consulting Team discovered 2 APTs Team was able to detect and and multiple old remove the public ransom notes Infections (2015) and find remaining persistent methods. 2 4 Contain APTs a
Slide 11: Consumer Security Revenue Grew by 11%
CONSUMER SECURITY REVENUE GREW BY 11%1 (Q1-Q4/2020, EUR million) Revenue comparison Revenue from the operator channel grew Q4 • Growth stems from the sales of our core endpoint protection +6% FY Q1-Q3 solution 100.1 • Since the COVID-19 outbreak an increase in product activation 94.9 94.8 and usage
Slide 12: Consumer Security Set for Growth Also in the Future
CONSUMER SECURITY SET FOR GROWTH ALSO IN THE FUTURE Consumer security revenue (EUR million) +6% • COVID-19 impact mainly delaying 0% some new launches or slowing 100 operator decision making while 95 95 underlying F-Secure SAFE usage grew Q4 +10%1 during the year Q3 26 24 23 • Four new F-Secure ID P
Slide 13: Growth and Normalizing Activity Levels Resulted in Adjusted EBITDA of 13%
GROWTH AND NORMALIZING ACTIVITY LEVELS RESULTED IN ADJUSTED EBITDA OF 13% Q4/2020 Financial review Eriikka Söderström, CFO
Slide 14: Adjusted EBITDA of 13% in Q4
GROWTH AND NORMALIZING ACTIVITY LEVELS RESULTED IN ADJUSTED EBITDA OF 13% IN Q4 (Financial Highlights Q1-Q4/2020) EUR million 10-12/2020 10-12/2019 Change % 1-12/2020 1-12/2019 Change % Revenue 57.9 56.1 3% 220.2 217.3 1% Consumer security1 25.9 23.4 11 % 100.1 94.8 6% Corporate security products 18
Slide 15: Deferred Revenue Growth Driven by Multi-Year Deals
DEFERRED REVENUE GROWTH DRIVEN BY MULTI-YEAR DEALS FROM CORPORATE SECURITY PRODUCTS (Q3/2019 – Q4/2020, EUR million) Deferred Revenue1 Deferred Revenue growth Non-current Non-current Current Current +10% 81.0 35% 73.9 73.7 72.3 72.0 70.2 23.8 17.6 19.2 17.6 19.1 20.3 15% 10% 56.4 54.4 57.2 4% 5% 52.
Slide 16: Adjusted EBITDA Development
ADJUSTED EBITDA DEVELOPMENT – ACTIVITY LEVELS NORMALIZING TOWARDS PRE-PANDEMIC LEVELS (Q1/2019 – Q4/2020, EUR million) Adjusted EBITDA Business activity levels started to normalize to pre-COVID-19 levels, Adjusted EBITDA margin (%) resulting especially in increased R&D costs and consequently an adju
Slide 17: Strong Operative Cash Flow Increased Cash Balance
STRONG OPERATIVE CASH FLOW THROUGHOUT 2020 HAS INCREASED CASH BALANCE (Q1/2019 – Q4/2020, EUR million) Cash flow from operating activities before financial items and taxes Cash and financial assets at fair value through P&L EUR10.7 m EUR25.9 m 19.4 Currently F-Secure has net cash 51.4 position of 11
Slide 18: Board Proposes a Dividend of 0.04 EUR per Share
AFTER INCREASED PROFITABILITY, BOARD PROPOSES A DIVIDEND OF 0.04EUR PER SHARE (2011-2021, EUR) Earnings per Share Dividend payments Dividend 0.16 Extra Dividend 0.14 0.12 0.12 0.11 0.11 0.10 0.10 0.10 0.09 0.06 0.06 0.08 0.07 0.06 0.06 0.06 0.06 0.04 0.04 0.06 0.06 0.06 0.02 0.01 2011 2012 2013 2014
Slide 19: Outlook 2021
OUTLOOK 2021 EUR million 2019 2020 Change % 2021 Outlook Corporate security products, 72.5 74.3 2 % Expected to grow at a high single-digit rate. revenue Cyber security consulting, Expected to grow but uncertainty remains due to the COVID- 50.0 45.8 -8 % revenue 19 pandemic. Consumer security, reven
Slide 20: F-Secure. & e
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Slide 21: F-Secure
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