F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q4 2012 Earnings Presentation
29 slides from F-Secure Oyj's earnings presentation, Feb 1, 2013
Slide 1: F-Secure Corporation Interim report Q4 2012
F-Secure Corporation Interim report Q4 2012 (Unaudited) President & CEO Christian Fredrikson February 1, 2013 Protecting the irreplaceable | f-secure.com
Slide 2: Contents
Contents 1. Highlights in Q4 and in 2012 2. Financial performance in Q4 3. Channels 4. Products and services 5. Market review 6. Financial targets & Outlook
Slide 3: Highlights in Q4
Highlights in Q4 • Healthy profitability and cash flow • Revenues grew by 0.4%, reaching 40.1million (Q42011: 40.0m). • EBIT 7.4 million, 19 % of revenues (Q411: 6.5 m, 16 %) – excl. one-time costs (BDX restructuring & write-offs) • Cash flow from operations 7.8 m positive (7.1 m positive) • Interne
Slide 4: Highlights in 2012
Highlights in 2012 • Solid growth and profitability: • Total revenues grew by 8%, reaching 157.2 million (2011:146m) • EBIT was 27.3 million, representing 17% of revenues (23.6,16%) excl. one-offs • Financials in line with guidance ( Rev growth 5-10% and profitability around 15%) • Healthy cash flow
Slide 5: 2. Financial performance in Q4
2. Financial performance in Q4 Protecting the irreplaceable | f-secure.com
Slide 6: Q4 Revenues
Q4 Revenues EURm • Revenue growth continued 45 driven by the operator 40 channel 35 • Total quarterly revenues 40.1 30 m; growth of 0.4 % (Q411: 40.0 m) 25 • Operator revenues 24.5 m; 20 growth of 1% (Q411: 24.3 m) 15 • Other channels 15.6 m; 10 growth of 0% (Q41:15.7 m) 5 0 Q110 Q210 Q310 Q410 Q111
Slide 7: Profitability gradually improving
Profitability gradually improving 30 % • Q4 profitability at good level • EBIT 7.4 m, 19% of revenues; excl. 25 % one-off (Q411: 6.5 m, 16%); growth of 14 % 20 % • Earnings per share EUR 0.00 (EUR 0.03) due to one-offs 15 % 10 % 5% 0% Q4´06 Q1'09 Q4'03 Q2'04 Q4'04 Q2'05 Q4'05 Q2'06 Q2'07 Q4'07 Q2'08
Slide 8: Q4 Costs flat (excl. one-offs)
Q4 Costs flat (excl. one-offs) • Total costs decreased to 31.2 m, -1% when EURm excluding BDX one-offs of 7 m; 45 (Q411:31.6 m) 40 35 * • Operative run rate grew modestly in 2012 30 • Cost level was impacted by increased 25 depreciations from past capitalized 20 expenses; Q412: 2.1 m (Q411: 1.7m) 15
Slide 9: Q4 Deferred Revenues stable
Q4 Deferred Revenues stable EURm • Deferred revenues were at 37.7m 45 (38.3m) 40 • Good license renewal sales continues 35 in Corporate and Direct to Consumer 30 businesses 25 20 • Deferred revenues accrued in the 15 balance sheet 10 5 • Oct. 25, 2012 36.3 m 0 • June 30,2012 38.0 m • Mar. 31,2012 38
Slide 10: Q4 Cash position remains solid
Q4 Cash position remains solid • Cash flow from operations 7.8 m EURm Steek acquisition (Q411: 7.1 m) 120 Capital repayment • Market value of liquid assets 100 33.1m (Q411: 28.1 m) 80 • Sept. 30, 2012 27m 60 • Jun. 30, 2012 25.3m • Mar.31, 2012 31.2m 40 • Dividend of EUR 0.06 per share 20 was paid i
Slide 11: Q4 Number of personnel
Q4 Number of personnel • At the end of December: 931 1200 (Q411: 942 ) 1000 • Number of personnel decreased in R&D due to 800 F-Secure France reductions of 41 people 600 • New productized Content 400 Cloud solution developed 200 • Restructuring of R&D operations and sites; 0 improving speed for Q110
Slide 12: Q4 Regional Revenue Split
Q4 Regional Revenue Split 1-12/2012 1-12/2011 Rest of World; Rest of 14% Nordic World; North 12% countries; America; North Nordic 30 % 10 % America; countries; 10 % 33 % Rest of Rest of Europe; Europe; 46 % 45 % 12 Feb 1, 2013
Slide 13: 3. Channels
3. Channels Protecting the irreplaceable | f-secure.com
Slide 14: 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 14 Feb 1, 2013
Slide 15: Q4 Operator business – growth
Q4 Operator business – growth • Q4 revenues of 24.5 m (24.3 m), EURm Revenues growth of 1% YoY and 4% QoQ 25 • Double digit Internet security subscriber growth continued 20 • Project revenues substantially lower than year ago 15 • New operator partnerships 10 • Movistar launch in Panama, Chile and M
Slide 16: More than 200 operator partners globally
More than 200 operator partners globally and over 250 m broadband subscribers 16 Feb 1, 2013
Slide 17: 4. Products and Services
4. Products and Services Protecting the irreplaceable | f-secure.com
Slide 18: 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 19: 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 19 Feb 1, 2013
Slide 20: Launches in Q4
Launches in Q4 • Banking Protection, a new feature of F-Secure’s Internet Security product • is designed to protect consumers’ online banking sessions from malicious attacks and protects online banking sessions against Trojans • Patch management, a business security feature; the debut of Software Up
Slide 21: Awards
Awards • In January 2013, F-Secure’s corporate business strategy was recognized as top-ranked by The Forrester Wave™, Endpoint Security report • In January 2013, F-Secure Internet Security 2013 won the award “BEST PROTECTION 2012 - Home User” by AV-Test Org 21 Feb 1, 2013
Slide 22: 5. Market review
5. Market review Protecting the irreplaceable | f-secure.com
Slide 23: Market review
Market review • Internet growth continues globally • Role of internet security significant for business over the Internet Internet • Internet Security market still growing • People have become multi-screeners • Smartphones, tablets, computers or even TVs to get online • Many activities are performed
Slide 24: 6. Financial targets & Outlook
6. Financial targets & Outlook Protecting the irreplaceable | f-secure.com
Slide 25: Strategy and Financial targets 2012-2014
Strategy and Financial targets 2012-2014 • First priority is to drive 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 to develop
Slide 26: 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 27: Outlook for 2013 (2/2)
Outlook for 2013 (2/2) • The management’s estimation for the year; the annual revenue growth is estimated to be over 5% compared to 2012. The annual profitability is estimated to be over 15 % of revenues. The estimates are based on the sales pipeline at the time of publishing, existing subscriptions
Slide 28: 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 29: Protecting the irreplaceable
Protecting the irreplaceable F-Secure.