F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q4 2008 Earnings Presentation
24 slides from F-Secure Oyj's earnings presentation, Jan 29, 2009
Slide 1: F-Secure Corporation Interim report Q4 2008
F-Secure Corporation Interim report Q4 2008 (Unaudited) January 29, 2009 Kimmo Alkio, President and CEO The Board proposals to the AGM will be announced on Feb. 12
Slide 2: Q4 Highlights
Q4 Highlights Q4: Strong year-end performance 35.0 • Good revenue growth of 18% to an all- 30.0 time high quarterly revenues of 30.6m (Q407: 26.0m) 25.0 • Service Provider growth accelerated to 20.0 13.5m; +10% QoQ • Strong profitability; all-time high quarterly 15.0 EBIT of 7.2m, 24% of revenues (Q
Slide 3: 2008 Highlights
2008 Highlights 2008: Profitable growth continued 120 • Good revenue growth of 17% to 113m (96.8m) 100 • Service Provider –good growth of 35% to 80 48.4m • Good profitability; EBIT of 24.3m, 22% of 60 revenues (19.5m) • EPS EUR 0.13 (EUR 0.10) 40 • Strong cash flow of 23.5m positive (20.7m) 20 excl.
Slide 4: Q4 Revenues
Q4 Revenues • Solid revenue growth continued 35 • All-time high quarterly revenues of 30.6m, growth of 18% 30 • Annual revenues of 113m, growth of 17% 25 • Strong ISP revenue growth 20 • Q4: 13.5m; +10% QoQ, +33% YoY 15 • 2008: 48.4m +35% YoY 10 • Solid traditional channels 5 • Q4: 17.1m; +8% YoY 0
Slide 5: Q4 Costs
Q4 Costs 25 • Costs - Investment into future growth continued • Q4: ~21.5m; +13% 20 • 2008: ~81m; +15% • Focus on ISP professional services 15 and new service innovation 10 • Capitalization of Development costs; impact on Q4 ~-0.2m; 2008 ~-0.5m • Gross margin 90% (92%) 5 0 S&M R&D G&A Interim Report
Slide 6: Q4 Operating profit
Q4 Operating profit 8 • Record profitability • Q4 EBIT 7.2m* (5.5m); 24% of revenues; 7 growth of 32% from Q407 • 2008 EBIT 24.3m* (19.5m); 22% of 6 revenue; growth of 25% from 2007 5 * Incl. the gain from the sale of network control technology ~0.8m 4 3 • Equity ratio • Dec 31, 2008 70%1) 2 • Sep 3
Slide 7: Development of EBIT margin
Development of EBIT margin • Continue to prioritise growth over short 30% term profitability • Average EBIT has gradually improved 25% • During the next three years, the Group seeks the EBIT level to be around 25%. 20% 15% 10% 5% 0% Graph shows EBIT excluding the non-recurring impairment loss of Net
Slide 8: Q4 Cash position
Q4 Cash position Dividend pay-out Capital repayment 100 • Cash flow for Q4 improved to 90 8.3m*(Q407: 5.2m) 80 • Cash flow for 2008: 23.5m* 70 positive (20.7m) 60 • Excluding the capital repayment of 35.7m in 50 paid November and dividends of 10.9m paid in April / and dividends of 3.1m paid in March
Slide 9: Q4 Deferred Revenues
Q4 Deferred Revenues 40 • Strong sales increased deferred revenues in Q4 by 3.5m 35 • Deferred revenues accrued in balance sheet 30 • Dec 31, 2008 37.2m • Sep 30, 2008 33.7m 25 • Dec 31, 2007 31.9m 20 15 10 Deferred Revenues Interim Report Q408 - January 29 , 2009 Page 9
Slide 10: Efficient Capital Management
Efficient Capital Management • Objective • The objective of the Group’s capital management is to aim at an efficient capital structure that ensures the functioning of business operations and promotes the increase of shareholder value • Actions during 2008 • Dividend of 10.9m (EUR 0.07 per share) was
Slide 11: Regional Revenue Split unchanged
Regional Revenue Split unchanged 1-12/2008 1-12/2007 9% 9% 9% 9% 39% 39% 43% 43% Nordic Countries RoE North America RoW Interim Report Q408 - January 29 , 2009 Page 11
Slide 12: ISP Business – strong growth
ISP Business – strong growth 16000 • Q4 revenues: 13.5m (10.1m) • Growth accelerated ; +10% QoQ; 14000 +33% YoY • 44% of total Q4 revenues 12000 10000 • 2008 revenues 48.4m (35.9m) 8000 kEUR • Growth of 35% YoY • 43% of the total revenues 6000 4000 2000 0 Interim Report Q408 - January 29 , 2009 Page
Slide 13: Growing number of ISP partners
Growing number of ISP partners 200 • 183 partners in 43 countries 180 • Q4 partner announcements 160 • Vodafone (New Zealand) 140 120 • 5 new online backup partners in NA, 100 Europe and APAC 80 • A total of 7 partners in 6 countries 60 40 20 0 Cumulative Interim Report Q408 - January 29 , 2009 Page
Slide 14: F-Secure Partners' market share of residential broadband
F-Secure Partners’ market share of residential broadband 45% Europe 40% Partners’ market share of residential 35% broadband at the end of 2008 30% • 39% (37%) in Europe 25% • 10% (10%) in NA 20% • 13% (9%) in Asia excluding China ASIA 15% NA (numbers are estimates by 10% Dataxis and F-Secure) 5% 0%
Slide 15: F-Secure Service Provider partners in the Americas
F-Secure Service Provider partners in the Americas Interim Report Q408 - January 29 , 2009 Page 15
Slide 16: F-Secure Service Provider partners in EMEA part 1
F-Secure Service Provider partners in EMEA part1 Interim Report Q408 - January 29 , 2009 Page 16
Slide 17: F-Secure Service Provider partners in EMEA part 2
F-Secure Service Provider partners in EMEA part 2 Interim Report Q408 - January 29 , 2009 Page 17
Slide 18: F-Secure Service Provider partners in APAC
F-Secure Service Provider partners in APAC Interim Report Q408 - January 29 , 2009 Page 18
Slide 19: Q4 Mobile Security Business
Q4 Mobile Security Business • Device manufacturers • Steady growth in trial users and in • Available for a majority of the currently revenues shipping or upcoming Nokia S60 3rd edition • Ca 3% of total revenues (2% in 2007) devices • Partnership with Sony Ericsson and Toshiba Information Systems • O
Slide 20: Q4 Product announcements
Q4 Product announcements • F-Secure Client Security 8 • Highly effective mass production for corporate workstations and laptops • Uses F-Secure DeepGuard™ 2.0 technology, which recognizes both safe and malicious software instantaneously using a real-time protection network • Mobile Security 5 • Incl
Slide 21: Number of Personnel
Number of Personnel • At the end of Q4: 718 • During Q4 net increase of 8 fellows 800 • Focus in 2008: global S&M and R&D 700 personnel 600 500 400 300 200 100 0 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 S&M R&D G&A Interim Report Q408 - January 29 , 2009 Page 21
Slide 22: Long-term objectives
Long-term objectives • Market remains attractive • Healthy demand for Internet Security and other related services • Longer tem market growth expected to be around 10% annually (CAGR 2007-2012), however in 2009 around 8% (source: IDC) • The Group’s first priority is to drive strong growth • Exceed t
Slide 23: Short term outlook
Short term outlook • Uncertainty in global economy is expected to continue • During the year 2009 the Group seeks to continue to exceed the average market growth • Q1 2009 outlook 1) • Revenues 29.5-31.5m • Costs around 22.5 m 1) Based on the sales pipeline at the time of publishing, existing subscr
Slide 24: BE SURE.