F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q3 2014 Earnings Presentation
21 slides from F-Secure Oyj's earnings presentation, Oct 23, 2014
Slide 1: Switch On Freedom - Interim Report Q3
SWITCH ON FREEDOM F-SECURE CORPORATION INTERIM REPORT Q3 October 23, 2014 CEO Christian Fredrikson
Slide 2: Content
CONTENT • Q3 Highlights • Key products • Q3’14 financials
Slide 3: Highlights Q3
HIGHLIGHTS Q3 Solid profitability and cash flow, flat revenues • Revenues declined by 1% to 37.9 million (Q313: 38.3m) • EBIT 6.9 million, 18 % of revenues (Q313: 8.4 m, 22 %) • Cash flow from operations 5.3 million positive (Q313: 6 m positive) ; change of cash 4.3 million positive ( Q313: 5.3 m po
Slide 4: Core Businesses
CORE BUSINESSES CONSUMERS BUSINESS -------------------------------- F-SECURE PROTECTION MULTIDEVICE SAFE SERVICE FOR PROTECTION BUSINESS IDENTITY F-SECURE MANAGEMENT KEY PERSONAL CLOUD PRIVACY F-SECURE F-SECURE FREEDOME FREEDOME
Slide 5: F-Secure SAFE
F-SECURE SAFE PROTECT YOUR LIFE ON EVERY DEVICE
Slide 6: In a Complex World, Simplicity Matters
IN A COMPLEX WORLD, SIMPLICITY MATTERS. ONE BUTTON FOR ALL. © F-Secure Confidential 6
Slide 7: Freedome features
INVISIBLE Surf anonymously. Protected, private. WI-FI SECURITY Connect securely. Encrypted and invisible. UNTRACKABLE Stop advertisers from tracking you. SAFE BROWSING Block malware, tracking cookies, and phishing sites. TELEPORT LOCATION Change your virtual location to the other side of the world .
Slide 8: Positioning Freedome & SAFE
POSITIONING FREEDOME & SAFE F-SECURE SAFE F-SECURE FREEDOME Internet security Online privacy Customers will choose Freedome because it extends protection to online privacy. • SAFE provides Internet security for all the • Freedome prevents spying and Operators should offer family devices and provides
Slide 9: Protection Service for Business
PROTECTION SERVICE FOR BUSINESS UNIQUE POSITION Multi-Device Security UNIQUE Patch Management POSITION Store, Sync, Share Management & MDM Privacy & Trust DEVELOPMENT Strong on-going evolution towards the next-generation cloud security solution.
Slide 10: Younited
YOUNITED YOUNITED IN THE OPERATOR CHANNEL & CONSUMERS Master, share, unshared, access all your stuff anywhere with any device. Usability improvements in Q4: Usage also on TV screen through Chromecast, content streams, more subtle background maintenance, iOS8 & Jolla support
Slide 11: Financials Q3 2014
FINANCIALS Q3 2014
Slide 12: Revenues
REVENUES EURm Q3 Revenues declined by 1% 45 • Total quarterly revenues 37.9m 40 (Q313: 38.3 m) 35 • Operator revenues declined by 30 6% to 22.1m; (Q313: 23.6 m) due 25 to the phasing out of legacy content cloud business, 20 traditional PC centric sales and 15 delays with younited deliveries; partial
Slide 13: Profitability
PROFITABILITY 30% Q3 profitability • EBIT 6.9m , 18% (Q313: 8.4 m, 22%) 25% • Earnings per share EUR 0.04 20% (EUR 0.03) 15% 10% 5% 0% Q3'06 Q3'04 Q1'05 Q3'05 Q1'06 Q1'07 Q3'07 Q1'08 Q3'08 Q2'09 Q4'09 Q2'10 Q4'10 Q2'11 Q4'11 Q2'12 Q4'12 Q2'13 Q4'13 Q2'14 EBIT% Ave (4 qrts) 13
Slide 14: Costs
COSTS EURm Q3 costs increased by 3% 45 40 Costs 29.7m (Q313: 28.7m) 35 * * • R&D and Sales & Marketing activities; i.e. 30 SAFE business, SMB focus in Germany, 25 France and USA, younited and Freedome 20 15 • Cost level was impacted by increased 10 depreciations from past capitalized 5 expenses; 2.3
Slide 15: Deferred Revenues
DEFERRED REVENUES EURm 45 Q3 Deferred revenues 38.3m (36.2m) 40 35 Deferred revenues accrued in the 30 balance sheet 25 20 15 10 5 0 15
Slide 16: Cash Position
CASH POSITION EURm Solid Cash flow in Q3 60 • Cash position remains solid 50 • From operations 5.3m (Q313: 6m); 40 • Change in cash 4.3 m positive (Q313: 5.3m positive) 30 • Dividend of 9.3m paid in April 20 Market value of liquid assets 51.6m 10 (Q313: 39.3m) 0 • Dec 31, 2013 47.8m Cash position Di
Slide 17: Number of Personnel
NUMBER OF PERSONNEL 1200 At the end of Quarter: 933 (Q3/13: 973) 1000 800 600 400 200 0 Q112 Q212 Q312 Q412 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Administration Research and Development Sales and Marketing 17
Slide 18: Regional Revenue
REGIONAL REVENUE 1-9/2014 1-9/2013 Rest Rest of 13 % world 13 % North Nordic North Nordic America 31 % America 30 % 10 % 12 % Rest of Europe Rest of 46% Europe 45% 18
Slide 19: Outlook for 2014
OUTLOOK FOR 2014 • The management’s estimation for the year is revised: • The annual revenue is estimated to remain at a level of 2013. • The annual profitability estimation is unchanged at around 15 % of revenues excluding one-off costs. • The original management’s estimation for the year was: • Th
Slide 20: 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 21: Join the Movement
JOIN THE MOVEMENT f-secure.com/digitalfreedom