F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q3 2011 Earnings Presentation
27 slides from F-Secure Oyj's earnings presentation, Oct 26, 2011
Slide 1: F-Secure Corporation - Interim report Q3 2011
F-Secure Corporation - Interim report Q3 2011 (Unaudited) October 26, 2011 Kimmo Alkio, President & CEO Protecting the irreplaceable | f-secure.com
Slide 2: Q3 highlights
Q3 highlights • Good financial performance • Total revenues grew by 14% to a record level of 36.6 million (Q32010: 32.0m); EBIT 6.9 million, 19% of revenues • Operator channel continued strong performance and growth accelerated to 28% to 21.5 million; healthy security and storage related sales • Sec
Slide 3: Contents
Contents 1. Financial performance in Q3 2011 2. Operator business 3. Q3 key service & product launches 4. Market review 5. Long term objectives & Outlook for 2011 3
Slide 4: 1. Financial performance in Q3 2011
1. Financial performance in Q3 2011 4
Slide 5: Q3 Revenue and EBIT – strong performance
Q3 Revenue and EBIT – strong performance • Revenue growth accelerated driven EURm 40 by operator channel • Total quarterly revenues 36.6m; 35 growth of 14% (Q310: 32m) 30 • Operator revenues (incl. Storage and Digital Content business) 21.5m, growth 25 of 28% compared to Q310 and 6% from Q211 (Q310:
Slide 6: Q3 Costs – investments in operator channel and cloud storage continued
Q3 Costs – investments in operator channel and cloud storage continued EURm • Total costs increased to 28m +16%; 35 (Q310: 24.2m) 30 • Investments in accelerating the growth continued; main focus areas being operator 25 channel, cloud storage services, operating systems 20 • Cost increases targeted
Slide 7: Q3 Operating profit at healthy level
Q3 Operating profit at healthy level • Operating profit level at a good EURm EBIT level 8 7 • EBIT 6.9m , 19% of revenues (Q310: 5.9m, 18%) 6 5 • Equity ratio: 4 • Sep.30, 2011 70% 3 • June 30, 2011 68% 2 • Mar. 31, 2011 60%1) 1 • Dec. 30, 2010 69% 0 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 • Sep.
Slide 8: Development of EBIT margin
Development of EBIT margin • Prioritising growth over short 30 % term profitability, currently investing in storage business and 25 % market expansion 20 % • Seeking to improve profitability longer term towards 25% EBIT 15 % level 10 % 5% The graph shows the EBIT excluding the non-recurring impairme
Slide 9: Q3 Cash position – solid
Q3 Cash position – solid EURm • Cash flow from operations was 5.8m 120 Steek positive (Q310: 3.5m) Capital repayment acquisition 100 • Increased CAPEX • Cash position remained at a good level 80 • Market value of liquid assets on 60 • Sep.30, 2011 25.9m • June 30, 2011 23.5m 40 • Mar .31, 2011 37.1m
Slide 10: Q3 Deferred Revenues
Q3 Deferred Revenues EURm 40 • Deferred revenues were at 35m (35.1m) ; healthy renewal license sales in the 35 channel business • Japan, as one of the key countries for 30 corporate business, impacted by earthquake 25 20 • Deferred revenues accrued in the balance sheet 15 • June 30, 2011 36.8m • Mar
Slide 11: Q3 2011 Regional Revenue Split
Q3 2011 Regional Revenue Split 1-9/2011 1-12/2010 Rest of Rest of Nordic World World Ctries 12 % 33% North 12 % Nordic America 33 % North 9% America 10 % Rest of Rest of Europe Europe 45 % 46 % 11
Slide 12: Number of personnel
Number of personnel • At the end of Q3: 907 (Q211: 873;Q111: 851; 1000 Q410: 812) 900 800 • During Q3 new recruitments: 700 supporting growth businesses, mainly in the 600 sales, storage business and R&D 500 400 • Re-skilling on-going; operator 300 sales roles, storage related development, project 2
Slide 13: 2. Operator business: Strong global partner network
2. Operator business: Strong global partner network
Slide 14: Q3 Operator business continued strong performance
Q3 Operator business continued strong performance EURm • Q3 revenues of 21.5m (16.7m); growth 22 of +28% YoY ; +6% QoQ 20 • Healthy security subscriber growth continued; increase in the take up rates 18 • Storage related project revenues and subscriber sales progressing well 16 • Successful delivery
Slide 15: More than 200 operator partners globally
More than 200 operator partners globally and over 250 m broadband subscribers 15
Slide 16: 3. Products and Services
3. Products and Services 16
Slide 17: Call for trusted and local services
Call for trusted and local services PUBLIC CLOUD FREE + GLOBAL OPERATOR CLOUD TRUSTED + LOCAL + PREMIUM 17 October 26, 2011
Slide 18: Future Cloud Services F-SECURE SYNC
Future Cloud Services F-SECURE SYNC iPhone Android Windows PC iPad/ Web access smartphone & Mac Android through any tablet device 18 October 26, 2011
Slide 19: F-Secure Internet Security 2012 launched
F-Secure Internet Security 2012 launched • F-Secure Internet Security™ 2012 provides complete protection for computers and online life, delivered with a smooth user experience. F-Secure Internet Security 2012 combines industry-leading technologies for a sophisticated and multilayered defense against
Slide 20: 4. Market review
4. Market review Internet expansion, new devices and increasing use of social media strengthen the demand for value added services 20
Slide 21: Market trends – summary
Market trends – summary • Internet growth continues globally • Mobile internet driving growth • Role of internet security significant for Internet business over the Internet • Smartphones and tablets growing in number • New devices connected to the Internet are coming to the markets New devices • Ne
Slide 22: 5. Long-term objectives & future outlook
5. Long-term objectives & future outlook 22
Slide 23: Long-term objectives
Long-term objectives Growth • Continue to exceed average market growth • Geographic expansion • New large operator partnerships Software as a Service • Highly competitive internet security, combined with online backup services for higher value • Cloud Storage Services • Room for innovation – benefit
Slide 24: Outlook for 2011 in line with the previous guidance
Outlook for 2011 in line with the previous guidance • Annual revenue expected to be over 143m (growth of 10-12%) and EBIT expected to be 16-18% of revenues • Previous guidance: Annual revenue growth is expected to accelerate to around 10% and annual profitability to improve from 2010 level at a comp
Slide 25: Pirkka Palomäki nominated as acting CEO
Pirkka Palomäki nominated as acting CEO • F-Secure’s Chief Technology Officer Pirkka Palomäki appointed acting CEO of F-Secure Corporation as of November 1. As announced before F-Secure President and CEO Kimmo Alkio continues to lead F-Secure until October 31, 2011. • Search for the new CEO has been
Slide 26: 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 27: Protecting the irreplaceable
Protecting the irreplaceable F-Secure.