Ssh Communications Security Oyj · OMXHEX:SSH1V

Ssh Communications Security Oyj — FY2003 Earnings Presentation

18 slides from Ssh Communications Security Oyj's earnings presentation, 2004

  1. Slide 1: Financial Statements Bulletin 2003

    SSH COMMUNICATIONS SECURITY CORP FINANCIAL STATEMENTS BULLETIN 2003 WELCOME! COPYRIGHT © 2004 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 1

  2. Slide 2: Business Review 2003

    Business Review 2003 Johanna Lamminen CFO SSH Communications Security Corp COPYRIGHT © 2004 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 2

  3. Slide 3: Highlights 2003 (1/2)

    Highlights 2003 (1/2) ƒ SSH’s operating results turned positive and were EUR 5.3 million (EUR -14.1 million), i.e. 38.2 % (-83.7 %) of net sales ƒ The OEM business divestment to SafeNet, Inc. for approx. EUR 12 million increased the results for 2003 by approx. EUR 10.5 million ƒ Reported net sales f

  4. Slide 4: Highlights 2003 (2/2)

    Highlights 2003 (2/2) ƒ Fixed expenses decreased as planned by about EUR 9.8 million, or by 36 % ƒ Gross margin for the fourth quarter rose to nearly 100 % as the royalties paid to F- Secure Oy were permanently terminated ƒ R&D and sales organizations restructured ƒ New VP, R&D and Technical Service

  5. Slide 5: Market Development During 2003

    Market Development During 2003 ƒ Customers continued to pursue a cautious investment policy, dividing their orders for several quarters and postponing their investment decisions ƒ Under the budget pressures, customer started to realize the opportunities provided by the centrally managed SSH Tectia s

  6. Slide 6: Sales During 2003

    Sales During 2003 ƒ Of the net sales 66.4 % consisted of Enterprise Security Products (incl. SSH Tectia solution) and 33.6 % of OEM Products ƒ 18 customer agreements (5 during 4Q03) that were worth more than EUR 100,000 each were concluded ƒ Sales of ten largest customers accounted for 29.5 % of rev

  7. Slide 7: Business Outlook 2004

    Business Outlook 2004 ƒ Some positive signs about market recovery. However, future development still uncertain ƒ Strengthening of sales organization continues in key markets ƒ New SSH Tectia Manager and SSH Tectia Connector products in key roles in ensuring a successful SSH Tectia sales ƒ SSH is rea

  8. Slide 8: Financials 2003

    FINANCIALS 2003 Johanna Lamminen CFO SSH Communications Security Corp COPYRIGHT © 2004 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 8

  9. Slide 9: Financial Highlights 2003

    Financial Highlights 2003 ƒ Operating results significantly positive, EUR 5.3 million (EUR -14.1 in 2002) ƒ Net sales EUR 13.9 million (EUR 16.8 million in 2002) ƒ Fixed costs decreased by about EUR 9.8 million compared to the year 2002 ƒ During 4Q03 SSH’s Cross Margin increased to almost 100%, due

  10. Slide 10: Key Financials 2003

    Key Financials 2003 EUR 1000 2003 % of sales 2002 % of sales Revenues 13 851 16 801 Gross Margin 11 345 81.9 % 12 215 72.7 % Research and Development 5 178 37.4 % 8 232 49.0 % Sales and Marketing 9 582 69.2 % 14 686 87.4 % Administration 2 616 18.9 % 4 260 25.4 % Other Operating Income 11 327 897 EB

  11. Slide 11: Quarterly Financials 4Q02–4Q03

    Quarterly Financials 4Q02–4Q03 EUR 1000 4Q03 3Q03 2Q03 1Q03 4Q02 2002 Revenues 2 853 3 347 4 085 3 566 4 411 16 801 Gross Margin 2823 2 827 2 835 2 860 3 289 12 215 Research and Development 1 179 1 144 1 218 1 639 1 655 8 232 Sales and Marketing 2 704 2 033 2 330 2 515 3 218 14 686 Administration 43

  12. Slide 12: Development of Costs Structure

    Development of Costs Structure Sales & Marketing EUR million Research & Development Administration 10 9 8 7 6 5 4 3 2 1 0 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 COPYRIGHT © 2004 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 12

  13. Slide 13: Net Sales by Market in 2003

    Net Sales by Market in 2003 Asia Pacific Asia Pacific Americas 15.5% Americas 12.9% 47.3% 44.2% Europe Europe and and Rest of Rest of World World 37.2% 44.9% 2003 EUR 13.9 million 2002 EUR 16.8 million COPYRIGHT © 2004 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 13

  14. Slide 14: Net Sales by Product in 2003

    Net Sales by Product in 2003 OEM Enterprise OEM Enterprise Products Security Products Security 33.6% Products 38.3% Products 66.4% 61.7% 2003(*) EUR 13.9 million 2002 EUR 16.8 million (*) Due to changes in the product portfolio, the figures for 2002 are not completely comparable with those for 2003

  15. Slide 15: Development of Number of Personnel, Revenue and EBIT

    Development of Number of Personnel, Revenue and EBIT # of personnel EUR million Personnel Revenue EBIT 10 200 8 6 150 4 2 100 0 -2 -4 50 -6 -8 0 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 COPYRIGHT © 2004 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 15

  16. Slide 16: Financial Targets 2004

    Financial Targets 2004 ƒ SSH estimates that its net sales will be between EUR 14 million and EUR 16 million ƒ SSH estimates to show an operating profit for the fiscal year 2004 COPYRIGHT © 2004 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 16

  17. Slide 17: Further Information

    Further Information: Arto Vainio, CEO +358 20 500 7400 Johanna Lamminen, CFO +358 20 500 7419 Kare Laukkanen, Director, IR +358 20 500 7433 THANK YOU! COPYRIGHT © 2004 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 17

  18. Slide 18: Net Sales and EBIT by Quarter

    Net Sales and EBIT by Quarter EUR million Net Sales Net Sales Trendline EBIT 10 8 6 4 2 0 -2 -4 -6 -8 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 COPYRIGHT © 2004 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 18

SSH Communications Security — FY2003 Earnings Presentation on 6ix