F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q2 2012 Earnings Presentation
25 slides from F-Secure Oyj's earnings presentation, Jul 25, 2012
Slide 1: F-Secure Corporation Interim report Q2 2012
F-Secure Corporation Interim report Q2 2012 (Unaudited) President & CEO Christian Fredrikson July 25, 2012 Protecting the irreplaceable | f-secure.com
Slide 2: Contents
Contents 1. Highlights in Q2 2. Financial performance in Q2 3. Operator business in Q2 4. Products and services 5. Market review 6. Financial targets & Outlook
Slide 3: Highlights in Q2
Highlights in Q2 • Solid revenue growth continued • Total revenues grew by 12% reaching level of 39.6m (Q211: 35.3m) • Good Internet security sales • Revenues from the Operator channel grew by 20 % reaching 24.4 million • Internet security sales performed very well in several European countries and
Slide 4: 2. Financial performance in Q2
2. Financial performance in Q2 Protecting the irreplaceable | f-secure.com
Slide 5: Q2 Revenues
Q2 Revenues EURm • Revenue growth continued 45 driven by the operator 40 channel 35 • Total quarterly revenues 39.6m; growth of 12% (Q211: 35.3m) 30 25 • Operator revenues 24.4m; growth of 20% (Q211: 20.3m) 20 • Other channels 15.2m; 15 growth of 1% (Q211:15m) 10 5 0 Revenues EBIT 5 July 25, 2012
Slide 6: Q2 Profitability
Q2 Profitability 30 % • Profitability at satisfactory level • EBIT 5.8 m, 15% of revenues; 25 % (Q211: 4.6m, 13%); growth of 26% 20 % • Earnings per share EUR 0.03 (EUR 0.02) 15 % 10 % 5% 0% EBIT% Ave (4 qrts) 6 July 25, 2012
Slide 7: Q2 Costs – modest increase in run rate
Q2 Costs – modest increase in run rate • Total costs increased to 32.2m, +11%; EURm (Q211: 29.1m) 35 30 • Focus on geographic expansion in Latin America and especially in respect to 25 Content Cloud business 20 • Run rate costs grew modestly from Q1 15 • Cost level was impacted by increased 10 depre
Slide 8: Q2 Deferred Revenues
Q2 Deferred Revenues EURm • Deferred revenues were at 38.0m 45 (36.8m) 40 • Healthy renewal license sales in the 35 channel business 30 25 • Deferred revenues accrued in the 20 balance sheet 15 • Mar. 31,2012 38.5m 10 • Dec. 31,2011 38.3m 5 • Jun. 30, 2011 36.8m 0 8 July 25, 2012
Slide 9: Q2 Cash position solid
Q2 Cash position solid • Cash flow from operations 6.7m EURm Steek acquisition (Q211: 0.8m) 120 Capital repayment • Market value of liquid assets on 100 • Jun.30, 2012 25.3m 80 • Mar.31, 2012 31.2m 60 • Dec.31, 2011 28.1m • Jun. 30, 2011 23.5m 40 • Dividend of EUR 0.06 per share 20 was paid in April
Slide 10: Q2 Number of personnel
Q2 Number of personnel • At the end of June: 990 1200 (Q112: 975, Q211: 873) 1000 • Number of personnel increased 800 • New recruitments especially in 600 respect to Content Cloud business 400 200 0 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Sales and Marketing Research and Development Admini
Slide 11: Q2 Regional Revenue Split
Q2 Regional Revenue Split 1-6/2012 1-6/2011 Rest of World; Rest of 14% Nordic World; North 12% America; countries; Nordic 31 % North 10 % America; countries; 10 % 33 % Rest of Rest of Europe; Europe; 45 % 45 % 11 July 25, 2012
Slide 12: 3. Operator business in Q2
3. Operator business in Q2 Protecting the irreplaceable | f-secure.com
Slide 13: Q2 Operator business – solid growth
Q2 Operator business – solid growth • Q2 revenues of 24.4m (20.3m), EURm Revenues growth of 20% YoY and 8% QoQ 25 • Robust double digit security revenue growth continued 20 • Content Cloud subscriber revenues growth continued • Project revenues lower than in Q22011 15 • New operator partnerships • N
Slide 14: SPECIES
SPECIES • SPECIES - the worldwide ecosystem conference for F-Secure Operator Partners • Arranged in Milan on May 22-23, 2012 • Participants consisted of around 60 operator partners worldwide from 25 different countries • An executive worldwide conference for F-Secure’s Service Provider Partners: to
Slide 15: More than 200 operator partners globally
More than 200 operator partners globally and over 250 m broadband subscribers 15 July 25, 2012
Slide 16: 4. Products and Services
4. Products and Services Protecting the irreplaceable | f-secure.com
Slide 17: Launches in Q2
Launches in Q2 • An updated version of F-Secure Protection Service for Businesses, which now includes protection for smartphones and tablets. • Introduction of Email and Server Security solution for Businesses featuring e.g. Browsing Protection, Exploit Shield and F-Secure DeepGuard. 17 July 25, 201
Slide 18: 5. Market review
5. Market review Protecting the irreplaceable | f-secure.com
Slide 19: Market review
Market review • Internet growth continues globally • Role of internet security significant for business over the Internet Internet • New business opportunities • Smartphones and tablets growing in number • New devices connected to the Internet are coming to the markets New devices • Need for new ser
Slide 20: 6. Financial targets & Outlook
6. Financial targets & Outlook Protecting the irreplaceable | f-secure.com
Slide 21: Financial targets 2012-2014
Financial targets 2012-2014 • Double digit revenue growth • The Company will continue its investments in Content Cloud business but also in security services • Profitability is expected to develop towards the 25% level at the end of strategy period 21 July 25, 2012
Slide 22: Outlook for 2012 (1/2)
Outlook for 2012 (1/2) • The Operator channel is expected to continue its revenue growth, driven by solid Internet security sales and supported by subscriber based content cloud revenues. The project-based content cloud revenues in H2 will be substantially lower than in 2011. The traditional license
Slide 23: Outlook for 2012 (2/2)
Outlook for 2012 (2/2) • The management’s estimation for the year is unchanged • Annual revenue growth is estimated to be between 5% and 10% compared to 2011. • Annual profitability is estimated to remain around 15% of revenues. • The revenue growth is estimated to temporarily slow down in H2 and es
Slide 24: 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 25: Protecting the irreplaceable
Protecting the irreplaceable F-Secure.