F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q4 2014 Earnings Presentation
24 slides from F-Secure Oyj's earnings presentation, Feb 4, 2015
Slide 1: Switch On Freedom - Interim Report Q4/2014
SWITCH ON FREEDOM F-SECURE CORPORATION INTERIM REPORT Q4 / 2014 February 4, 2015 CEO Christian Fredrikson
Slide 2: Content
CONTENT • Q4 Highlights • Key products • Revised strategy 2015-17 • Q4’14 financials
Slide 3: F-Secure focuses on Security
F-Secure focuses on Security Personal Cloud Business sold to Synchronoss • Sales price is USD 60 million • Impact on EBIT close to EUR 20 million • The companies will also establish a partnership to sell security services 15
Slide 4: Revised strategy for 2015-17
Revised strategy for 2015-17 The sharpened focus is on cloud security. F-Secure protects all connected devices and secures the privacy of people and corporations. F-Secure continues to invest in developing and bringing cloud-based privacy and security products to the market. The Company will i
Slide 5: Revised strategy for 2015-17
Revised strategy for 2015-17 The Company will focus on consumers and corporate customers by leveraging its current channels The growth is expected to come from the western hemisphere and some emerging markets like Latin America The Company’s target towards the end of the period 2015-2017 is to
Slide 6: Highlights
HIGHLIGHTS HIGHLIGHTS IN Q4 & FULL YEAR 2014 KEY FIGURES Solid profitability and cash flow, flat annual Key figures 2014 2013 2014 2013 revenues (Eur Million) Q4 Q4 1-12 1-12 Security sales grew driven by core cloud security products while traditional PC-centric Revenues 38.2 40.0 153.8 155.1 se
Slide 7: Threats keep evolving
THREATS KEEP EVOLVING Several security hacks and privacy threats in 2014 Malware getting increasingly complex, harder to detect and more adept at exploiting weaknesses Targeted cyberattacks are compromising individuals’ and companies’ privacy and safety Security markets in transition present
Slide 8: We are the No 1 choice for consumers and businesses who value privacy and security
WE ARE THE NO 1 CHOICE FOR CONSUMERS AND BUSINESSES WHO VALUE PRIVACY AND SECURITY
Slide 9: Our core business
OUR CORE BUSINESS CONSUMERS BUSINESS ---------------------- F-SECURE PROTECTION PROTECT SAFE SERVICE FOR ALL DEVICES BUSINESS ENSURE F-SECURE F-SECURE FREEDOME FREEDOME PRIVACY F-SECURE KEY
Slide 10: F-Secure SAFE
F-SECURE SAFE PROTECT YOUR LIFE ON EVERY DEVICE ANTI-VIRUS PARENTAL APPLICATION PRIVACY CONTROL BROWSING PROTECTION
Slide 11: Freedome
FREEDOME PRIVACY ENSURED ON EVERY DEVICE TELEPORT LOCATION BECOME WI-FI UNTRACKABLE ENCRYPTION ANONYMOUS SURFING
Slide 12: 2 million downloads
2 MILLION DOWNLOADS AND COUNTING… New in Q4: Freedome for PC Freedome for Business 12 © F-Secure Confidential
Slide 13: Protection Service for Business
PROTECTION SERVICE FOR BUSINESS AUTOMATIC SOFTWARE UPDATER SECURE SECURE DATA WI-FI SHARING & EASY COLLABORATION CENTRALIZED MANAGEMENT
Slide 14: Financials Q4 2014
FINANCIALS Q4 2014
Slide 15: Revenues
EURm REVENUES 45 40 35 Q4 Revenues declined by 4% 30 Total quarterly revenues 38.2m (Q413: 40 m) 25 Operator revenues declined by 9% to 20 22.4m; (Q413: 24.9 m) due to the phasing out of legacy content cloud 15 business, traditional PC centric sales; partially compensated by SAFE security 10 O
Slide 16: Profitability
PROFITABILITY 30% 25% Q4 profitability EBIT 6.1m*, 16% (Q413: 8.8 m, 22%) 20% Earnings per share EUR 0.03 (EUR 0.03) 15% * Excluding one-offs of 1.4m 10% 5% 0% Q3'04 Q1'05 Q3'05 Q1'06 Q3'06 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 Q4'14 EBIT% Ave
Slide 17: Costs
* one-off cost Q412 ~7m, Q114 ~2.9m, Q414 ~1.4m COSTS EURm 45 40 * 35 * Q4 costs increased by 3% * 30 Costs 31.2m* (Q413: 30.1m) Sales & Marketing activities; i.e. SAFE 25 business, SMB focus in Germany, France 20 and USA, and Freedome Depreciations from past capitalized 15 expenses were 2.3 m (
Slide 18: Deferred revenues
DEFERRED REVENUES EURm 50 Q4 Deferred revenues grew to 43m (38.7m) 45 40 Strong periodized sales in corporate 35 and DirectBusiness 30 25 20 15 10 5 0 18
Slide 19: Cash position solid
CASH POSITION SOLID EURm 70 Solid Cash flow in Q4 Cash position remains solid 60 From operations 11.6m (Q413: 7.8m); 50 Change in cash 9.5 m positive 40 (Q413: 8.5m positive) Dividend of 9.3m paid in April 30 20 Market value of liquid assets 61.3m (Q413: 47.8m) 10 0 Cash position Dividend/ O
Slide 20: Number of personnel
NUMBER OF PERSONNEL 921 (Q4/13: 939) people 1200 at the end of the quarter 1000 800 600 400 200 0 Q112 Q212 Q312 Q412 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Sales and Marketing Research and Development Administration 20
Slide 21: Regional revenue
REGIONAL REVENUE 1-12/2014 1-12/2013 Rest of Rest world 13 % 13 % North Nordic North Nordic America 31 % America 31 % 10 % 12 % Rest of Rest of Europe Europe 46% 45% 21
Slide 22: Outlook for 2015
OUTLOOK FOR 2015 New guidance: In 2014, security revenues were 137.4 million in total. In 2015, the management estimates security revenues to grow slightly. Additionally, approximately 6million euros in revenue is expected related to the transition services due to the sale of the content cloud b
Slide 23: 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 24: Join the movement
JOIN THE MOVEMENT f-secure.com/digitalfreedom