F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q2 2013 Earnings Presentation
30 slides from F-Secure Oyj's earnings presentation, Jul 26, 2013
Slide 1: Interim Report Q2 2013, July 26
INTERIM REPORT Q2 2013, JULY 26 (UNAUDITED) Protecting the irreplaceable | f-secure.com
Slide 2: F-Secure celebrated its 25th anniversary in May
F-Secure celebrated its 25th anniversary in May
Slide 3: Contents
Contents 1. Highlights in Q2 2. Financial performance in Q2 3. Channels 4. Products and services 5. Market review 6. Financial targets & Outlook
Slide 4: Highlights in Q2
Mika Chief Technology Officer, Security HIGHLIGHTS IN Q2 4
Slide 5: Highlights in Q2
Highlights in Q2 • Revenues and Profitability declined, improved cash flow • Revenues was 38.4 million (Q22012:39.6m). • EBIT 4 million, 11% of revenues (Q212: 5.8m, 15%) • Cash flow from operations 5.7 m positive (6.7 m positive); change in cash 4.6m positive (3.4 m) when excluding dividend of 9.3m
Slide 6: Financial performance in Q2
Karmina Senior Analyst FINANCIAL PERFORMANCE IN Q2 2. Financial performance in Q2 Protecting the irreplaceable | f-secure.com
Slide 7: Q2 Revenues
Q2 Revenues EURm • Revenues decreased by 3% 45 • Total quarterly revenues 38.4m 40 (Q212: 39.6 m) 35 • Operator revenues 23.8m; 30 decrease of 3% (Q212: 24.4 m) 25 • Other channels 14.7m; 20 decrease of 3% (Q212:15.2 m) 15 10 5 0 Revenues EBIT 5
Slide 8: Profitability
Profitability 30% • Q2 profitability decreased • EBIT 4 m, 11% of revenues (Q212: 25% 5.8 m, 16%) • Earnings per share EUR 0.02 20% (EUR 0.03) 15% 10% 5% 0% Q3'04 Q1'07 Q1'05 Q3'05 Q1'06 Q3'06 Q3'07 Q1'08 Q3'08 Q2'09 Q4'09 Q2'10 Q4'10 Q2'11 Q4'11 Q2'12 Q4'12 Q2'13 EBIT% Ave (4 qrts) 6
Slide 9: Q2 Costs
Q2 Costs • Total costs 33.3 +3%; (Q212:32.2 m) EURm 45 • Cost level was impacted by increased depreciations from past capitalized 40 expenses; Q213: 2.3 m (Q212: 1.9m) 35 * 30 • Capitalized R&D expenses were 0 m 25 (Q212: 1.8m) 20 • Operative cost level flat, investments 15 decreased 10 5 0 Sales &
Slide 10: Q2 Deferred Revenues
Q2 Deferred Revenues EURm • Deferred revenues were at 45 37.8(38m) 40 • Solid license & renewal sales 35 continues in Corporate and Direct to 30 Consumer businesses 25 20 • Deferred revenues accrued in the 15 balance sheet 10 5 • Dec 31,2012 37.8 m 0 • June 30,2012 38m 8
Slide 11: Q2 Cash position remains solid
Q2 Cash position remains solid • Solid Cash flow EURm Steek acquisition 120 • from operations 5.7m (Q212: 6.7m); Capital repayment • Change in cash 4.6m positive (Q212: 100 3.4m positive) excluding paid dividend of 9.3m ( 9.3) in April 80 60 40 • Market value of liquid assets 34m (Q212: 25.3 m) 20 •
Slide 12: Q2 Number of personnel
Q2 Number of personnel • At the end of June: 954 1200 (Q212: 990) 1000 800 600 400 200 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q1'13 Q2'13 Sales and Marketing Research and Development Administration 10
Slide 13: Regional Revenue Split
Regional Revenue Split 1-6/2013 1-6/2012 Rest of World; 13% Nordic North countries; America; 29% 11% 14% 30% 10% 46% Rest of Europe; 46% 11
Slide 14: Channels
Vesa Senior Software Engineer 3. Channels CHANNELS Protecting the irreplaceable | f-secure.com
Slide 15: Channels to the markets
Channels to the markets Corporate Direct to Consumer Over 200 customers around business retail and Operators in over the world eStore globally 40 countries 15
Slide 16: Q2 Operator business
Q2 Operator business • Q2 revenues of 23.8 m (24.4 m) -3% EURm Revenues YoY 25 • New operator partnerships 20 • Telefonica Movistar launch in Argentina and Guatemala 15 • Four new Safe Avenue contracts, combining PC and Mobile security 10 • Two new content cloud contracts, two won and several in pip
Slide 17: More than 200 operator partners globally
More than 200 operator partners globally and over 250 m broadband subscribers 15
Slide 18: 7th Annual Operator Partner Meeting arranged by F-Secure
7th ANNUAL OPERATOR PARTNER MEETING ARRANGED BY F-SECURE - Held in Stockholm in May - Over 110 participants from over 60 partners and from 29 countries 18
Slide 19: Products and Services
Sarogini Quality Engineer 4. Products and Services 4. Products and Services PRODUCTS AND SERVICES Protecting the irreplaceable | f-secure.com
Slide 20: Across our entire portfolio
Across our entire portfolio Computer, Internet and Home Security Protecting millions of customers from known and emerging security threats Protection Service for Mobile Protection from mobile threats and loss of phone Online Backup service Securely store your customers irreplaceable content Content
Slide 21: F-Secure Safe Content Cloud
F-Secure Safe Content Cloud • significant player in the content cloud business • millions of users globally • several petabytes of data securely stored in our cloud Content Cloud • 5 data centers globally 21
Slide 22: F-Secure SAFE AVENUE: Converged PC and mobile security
F-Secure SAFE AVENUE Converged PC and mobile security F-SECURE SOLUTION: SAFE AVENUE • An innovative delivery solution for all security products that through ease of use encourages consumer adoption and management of security services • For operators, it is a turn-key, cloud based business platform
Slide 23: Market Review
Timo Malware Analyst 6. Financial targets & Outlook MARKET REVIEW 5. Market review Protecting the irreplaceable | f-secure.com
Slide 24: Market review
Market review • Internet growth continues globally • Role of internet security significant for business over the Internet • Internet Security market growing close to 10% pa Internet • People have become multi-screeners • Smartphones, tablets, computers or even TVs to get online • Many activities are
Slide 25: Financial Targets & Outlook
Klas Senior Manager, New Innovation FINANCIAL TARGETS & 6. Financial targets OUTLOOK & Outlook Protecting the irreplaceable | f-secure.com
Slide 26: Strategy and Financial targets 2012-2014
Strategy and Financial targets 2012-2014 • First priority is to drive profitable growth and market expansion • Targeting towards double digit revenue growth; supported by all three channels • The Company invests in Content Cloud business and in Internet security services • Profitability is expected
Slide 27: Outlook for 2013 (1/2)
Outlook for 2013 (1/2) • The long-term business opportunity with Internet Security and Content Cloud products for multiple devices and platforms is attractive. • The Company is looking for ways to increase its revenue growth and to improve its profit margin. • The Operator channel is expected to con
Slide 28: Outlook for 2013 (2/2)
Outlook for 2013 (2/2) • The management’s estimation for the year has been revised; • The annual revenue is estimated to be at a level of 2012. • The annual profitability is estimated to be over 15 % of revenues. • The previous guidance was; • The annual revenue growth is estimated to be over 5% com
Slide 29: 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 30: Protecting the irreplaceable
Protecting the irreplaceable F-Secure.