F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q2 2010 Earnings Presentation
19 slides from F-Secure Oyj's earnings presentation, Jul 29, 2010
Slide 1: F-Secure Corporation - Interim report Q2 2010
F-Secure Corporation - Interim report Q2 2010 (Unaudited) July 29, 2010 Kimmo Alkio, President and CEO Protecting the irreplaceable | f-secure.com
Slide 2: Highlights of Q2 2010
Highlights of Q2 2010 • Solid Q2 and exceeded earlier expectations • Operator channel: • Upper end of both revenues and costs • Strong Q2 revenues • Profitability as anticipated • Record level in subscriber acquisition • Storage services related investments high supporting overall Operator business
Slide 3: Financial Performance in Q2
Financial Performance in Q2 3 April 28, 2010 © F-Secure Corporation
Slide 4: Q2 Revenue growth
Q2 Revenue growth • Revenue growth y-o-y continued 35 • Total quarterly revenues 32.3m; growth of 2% (Q209: 31.7m) 30 • Operator revenues (incl. Storage and 25 Digital Content business) 16.4m, growth of +11% (14.8m) 20 • Other channels 15.9m, 15 decline of 6% (m) 10 • Profitability • EBIT 4.9m, 15%
Slide 5: Q2 Costs
Q2 Costs 30 • Cost level 25.8m; +15% YoY • Cost increase mainly from Storage 25 and Digital Content business unit • Non-permanent in nature 20 • Part of Transformation program 15 • Capitalization of development costs; impact on Q2 ~-0.8m 10 5 • Investments in new value added services portfolio conti
Slide 6: Q2 Operating profit
Q2 Operating profit • Solid profitability as anticipated 8 • Q2 EBIT 4.9m (Q209: 7.2m); 15% of 7 revenues 6 • Equity ratio: 5 • Jun. 30, 2010 67 % 4 • Mar. 31, 2010 58 % / (67%) 1) 3 • Dec. 31, 2009 70% • Sep. 30, 2009 70% 2 • June 30, 2009 71% 1 • Mar. 31, 2009 58% / (71%)1) 1) If dividend was paid
Slide 7: Development of EBIT margin
Development of EBIT margin • Prioritising growth over short 30 % term profitability, currently investing in Storage business 25 % • Seeking to improve profitability longer term towards 25% EBIT 20 % level 15 % The graph shows the EBIT excluding the non- recurring impairment loss of Network Control i
Slide 8: Number of personnel
Number of personnel • At the end of Q2: 847(Q209: 752; Q110: 836) • During Q2 slight personnel 900 increase; mainly in storage business,support and sales 800 700 600 500 400 300 200 100 0 Q207Q307Q407Q108Q208Q308Q408Q109Q209Q309Q409Q110Q210 Sales and Marketing Research and Development Administration
Slide 9: Q2 Cash position
Q2 Cash position Capital repayment Dividend pay-out/ • Cash flow from the operations for Q2 100 Share buy backs was 5.6 m positive (Q209: 6.3m) 90 Steek acquisition • Total cash flow 7.1m negative ( 5.8m 80 negative) including the paid dividend of 70 9.3m and share buy backs of 0.4m in Q2 60 • Cash
Slide 10: Q2 Deferred Revenues
Q2 Deferred Revenues 40 • Deferred revenues remained at 37.2m 35 • Healthy renewal sales in the quarter 30 25 • Deferred revenues accrued in the balance sheet 20 • Jun. 30, 2010 37.2m • Mar. 31, 2010 37.2m 15 • Dec. 31, 2009 35.6m • Sep. 30, 2009 33.7m 10 • Dec. 31, 2008 37.2m Deferred Revenues 10
Slide 11: 2010 Regional Revenue Split
2010 Regional Revenue Split 1-6/2010 1-6/2009 9% 12 % 11 33 % 10 % % 35 % 46 % 45 % Nordic Countries Rest of Europe North America Rest of World 11
Slide 12: Operator business: Strong quarter
Operator business: Strong quarter
Slide 13: Operator business performed well
Operator business performed well • Q210 record revenues of 16.4m (14.8m) 18000 • Growth of 11% YoY*; 5% QoQ 16000 • Healthy growth in # of security subscribers continued; increase in take up rates 14000 • Storage service revenues as in previous 12000 quarters • Storage related opportunities exist; p
Slide 14: Over 200 operator partners globally – serving 70+m
Over 200 operator partners globally – serving 70+m audience
Slide 15: Outlook
Outlook 15 © F-Secure Corporation
Slide 16: Long term objectives
Long term objectives • Continue to exceed average market growth • Scalability through strong operator-network • Geographic expansion Growth • Continue to increase Security as a Service penetration Software as a • Extend the customer base with Storage as a Service Service • New consumer centric user
Slide 17: Q3 Outlook
Q3 Outlook • During the second half of 2010 the Group seeks to exceed average market growth • For 2010 the antivirus security market growth is anticipated to be around 5% (source: Gartner 2010) • Seeking to improve profitability longer term towards 25% EBIT level • Total revenue growing with acceler
Slide 18: 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- lookingstatements are based on F-Secure’s present plans, estimates, assumptions, projections and expectations and are subject to ris
Slide 19: Protecting the irreplaceable
Protecting the irreplaceable F-Secure.