F-secure Oyj · OMXHEX:FSECURE
F-secure Oyj — Q2 2019 Earnings Presentation
16 slides from F-secure Oyj's earnings presentation, 2019
Slide 1: All businesses continued to grow – revenue up by 25% in Q2
ALLBUSINESSESCONTINUED TOGROW–REVENUEUPBY 25%INQ2 Q2/2019 Samu Konttinen, President & CEO 1
Slide 2: Key takeaways from Q2
KEY TAKEAWAYS FROM Q2 All businesses continued to grow – revenue up by 25 % in Q2 • Corporate security grew 50% from previous year • Endpoint protection continued to perform well, new sales improving and strong renewals • MDR with good revenue growth, several new deals in very demanding customer ver
Slide 3: Key financial highlights
KEY FINANCIAL HIGHLIGHTS EUR m 4-6/2019 4-6/2018 Change 1-6/2019 1-6/2018 Change 1–12/2018 Revenue 54.1 43.4 25 % 107.5 86.5 24 % 190.7 Consumer security 24.0 23.4 3% 48.0 47.1 2% 94.9 Corporate security 30.1 20.0 50 % 59.5 39.4 51 % 95.9 Products 18.0 15.1 19 % 35.8 29.9 20 % 63.8 Consulting 12.1 4
Slide 4: Corporate security products revenue grew 19% in Q2
CORPORATE SECURITY PRODUCTS REVENUE GREW 19% IN Q2 (H1/2019, EUR m) Revenue comparison1 Revenue from endpoint security increased from previous year Q2 +19% • New customer acquisition improved supported by large deal with +20% Q1 significant service provider 35.8 • EPP renewal rate remains high • EDR
Slide 5: Cyber security consulting revenue grew by EUR 7.2m YoY in Q2
CYBER SECURITY CONSULTING REVENUE GREW BY EUR 7.2M YOY IN Q2 (H1/2019, EUR m) Revenue comparison Cyber security consulting revenue continued grow well Q2 +146% • Our largest markets, UK and Nordics, performing well Q1 • Achieved growth arises from customer expansions and +148% successful new custome
Slide 6: Direction after MWR acquisition
DIRECTION AFTER MWR ACQUISITION Combination of MWR and F-Secure What did we acquire? What are we working on? technologies Cyber security consulting CAPABILITY Cyber RESEARCH Publications & • Expanding Incident Response practice Research Security • Further integrate the consulting units of F- 300+ Co
Slide 7: Consumer security - good performance in Q2
CONSUMER SECURITY - GOOD PERFORMANCE IN Q2 (H1/2019, EUR m) Revenue comparison Revenue from the operator channel continued to grow Q2 +3% • In North America a significant new operator deal was won. +2% Q1 Customer broadened offering into router security via F-Secure 48.0 SENSE and replaced competito
Slide 8: Announced F-Secure ID Protection
ANNOUNCED F-SECURE ID PROTECTION Comprehensive protection for consumers Market demand for ID protection SENSE KEY • Meet consumer concerns on data breaches PREVENT DETECT • Meet demand of first moving Preventing ID theft Detecting misuse operator customers SAFE with the help of of personal e.g. anti
Slide 9: Deferred revenue grew by 6%
DEFERRED REVENUE GREW BY 6% (EUR m) Deferred revenue, non-current (EUR m) • Deferred revenue grew by 6% from Deferred revenue, current (EUR m) Q2-2018 driven by the inclusion of +6% MWR InfoSecurity 72.9 71.4 71.0 • In corporate product business 67.2 69.1 66.7 shorter average contract duration 17.6
Slide 10: Positive EBIT impact EUR 3.1m from revision of acquisition valuation
POSITIVE EBIT IMPACT EUR 3.1M FROM REVISION OF ACQUISITION (H1/2019, EUR m) VALUATION Reporting levels Ordinary items Positive one-off effect Negative one-off effect • For the first 12 months period Revision of Impairment test was MWR has been performing well earn-out performed – result: goodwill as
Slide 11: Future outlook unchanged
FUTURE OUTLOOK UNCHANGED Outlook for 2019 Outlook for 2018-2021 • Revenue from corporate security is expected to • The demand for corporate cyber security products grow by over 30% compared to 2018 and services is expected to grow strongly. F-Secure • Revenue from consumer security is expected to ai
Slide 12: Appendix
APPENDIX 12
Slide 13: F-Secure's H1/2019 in brief
F-SECURE’S H1/2019 IN BRIEF (H1/2019, EUR m) Revenue split by business Revenue split by geography Adj. EBITDA (incl. IFRS 16) Cyber Security Consulting +148% Nordics +12% North America +22% Q2 Corporate Products +20% Rest of Europe +27% Other Regions +67% Q1 Consumer Security +2% 9.8 +24% +24% 107.5
Slide 14: Balance sheet after impairment
BALANCE SHEET AFTER IMPAIRMENT (EUR m) Change in Assets Change in Equity & Liabilities Goodwill Equity Other non-current assets Interest bearing liabilities Other current assets 228.4 Other liabilities 228.4 222.1 222.1 Liquid assets 66.9 69.8 175.1 85.2 175.1 90.4 10.1 22.7 70.6 37.2 46.5 52.1 59.3
Slide 15: Strong cash flow from operating activities in Q2/19
STRONG CASH FLOW FROM OPERATING ACTIVITIES IN Q2/19 (Cash flows from operating activities, EUR m) 9.6 • Cash flow from operating activities in Q2 improved significantly 8.3 • Changes in NWC and tax refunds had positive impacts on cash flow • IFRS 16 impact on operative cash flow was positive by EUR
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