F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q4 2013 Earnings Presentation
23 slides from F-Secure Oyj's earnings presentation, February 2014
Slide 1: F-Secure Corporation Interim Report Q4 2013
F-SECURE CORPORATION Interim Report Q4 2013 (unaudited) 1
Slide 2: Highlights in Q4
HIGHLIGHTS IN Q4 • Strong profitability and cash flow • Revenues flat at 40 million (Q412: 40.1m) • EBIT 8.8 million, 22 % of revenues (Q412: 7.4 m, 18 % – excl. 7 m one-off costs) • Cash flow from operations 9.3 million positive (Q412: 7.8 m positive) ; change of cash 8.5 million positive ( Q412: 6
Slide 3: Highlights in 2013
HIGHLIGHTS IN 2013 • Solid profitability and cash flow • Total revenues declined by 1% to 155.1 million (2012:157.2m) • EBIT was 27.1 million, representing 17% of revenues (2012: 27.3 m,17% excl. 7 m one-off costs • Financials in line with revised Q2 guidance : Rev growth at a level of 2012 and prof
Slide 4: New Launches
NEW F-Secure Freedome LAUNCHES F-Secure Key younited F-Secure by F-Secure SAFE Your secure, Assistant for any private cloud password needs Multi –device protection for a worry-free online life 4
Slide 5: Security software market is in change
Security software market is in change • Software-as-a-Service business model and cloud- based delivery are rapidly disrupting the traditional way of doing business • Cloud is a scalable way to cover security of the ever- growing variety of devices • New device sales will come from post-PC mobile dev
Slide 6: Trends
TRENDS Mobility and new devices rule in post PC- era Consumerization and BYOD change business IT Everything goes to cloud; both data and security 6
Slide 7: Strategy
STRATEGY “We'll keep your stuff private, Chancellor Merkel” F-Secure
Slide 8: Security from the Cloud: Security. Privacy. Simplicity.
SECURITY FROM THE CLOUD: Security.Privacy.Simplicity. Anytime. Anywhere. Any device. Any application. New - Secure connections - Anti-tracking - Thin clients Traditional - Browsing protection - Private data leakage prevention - Anti-malware F-Secure Cloud Security protects your business from Interne
Slide 9: Personal cloud adoption is driven by global trends
PERSONAL CLOUD ADOPTION IS DRIVEN BY GLOBAL TRENDS CONSUMER BUSINESS MULTI-DEVICE WORLD BYOD (Bring Your Own Device) SOCIAL NETWORKS/CLOUDS FROM INTERNAL IT TO CLOUD GROWTH OF STORED DATA CONSUMERIZATION OF IT STORE, SEARCH, STREAM, SHARE FROM EMAIL TO COLLABORATION
Slide 10: After Snowden's revelations of NSA's surveillance program
After Snowden’s revelations of NSA’s surveillance program people and companies are aware of need for security.
Slide 11: Secure and engaging personal cloud
Secure and engaging personal cloud Replaces old “glorified file managers”
Slide 12: F-Secure's Go to Market
F-SECURE’s GO TO MARKET Resellers channel: Direct sales: free 200 Operators in small & medium customers drive over 40 countries business drive brand and conversion provide a solid revenues to paid base 13
Slide 13: Outlook for 2014
Outlook for 2014 • The management’s estimation for the year: • The annual revenue is estimated to grow from 2013 with stronger second half. • The annual profitability is estimated to be around 15 % of revenues excluding one-off costs. • The company expects overall one-off costs to be less than 3 mil
Slide 14: 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 15: Financials
FINANCIALS 16 Feb 1, 2013
Slide 16: Revenues
Revenues EURm Q4 Revenues flat YoY 45 • Total quarterly revenues 40.0m 40 (Q412: 40.1 m) 35 • Operator revenues grew by 1% to 30 24.8m; (Q412: 24.5 m) 25 • Other channels declined by 3% to 20 15.2m (Q412:15.6 m) 15 10 5 0 Q112 Q113 Q111 Q211 Q311 Q411 Q212 Q312 Q412 Q213 Q313 Q413 Revenues EBIT 17
Slide 17: Profitability
Profitability 30% Q4 profitability at a record level • EBIT 8.8m, 22% of revenues 25% (Q412: 7.4 m, 19% excl. 7 m one-off) 20% • Earnings per share EUR 0.03 (EUR 0.00) 15% 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 Q4'14 EBIT
Slide 18: Costs
Costs EURm Q4 costs declined by 21% and 4% excl. one- offs 45 40 • Costs 30.1m (Q412: 31.2 m excl. 7 m one- 35 * off) 30 • Cost level was impacted by increased 25 depreciations from past capitalized 20 expenses; Q413: 2.3 m (Q412: 2.1m) 15 10 • Capitalized R&D expenses were 0 m 5 (Q412: 0.7m) 0 • Op
Slide 19: Deferred Revenues
Deferred Revenues EURm Q4 Deferred revenues 38.7m 45 (37.7m) 40 35 30 Deferred revenues accrued in the balance sheet 25 20 • Dec 31,2012 37.7 m 15 10 5 0 20
Slide 20: Cash position remains solid
Cash position remains solid Improved Cash flow in Q4 EURm 60 • from operations 9.3 m (Q412: 7.8m); • Change in cash 8.5 m positive (Q412: 50 6.1m positive) 40 30 Market value of liquid assets 47.8m 20 (Q412: 33.1m) 10 • Dec 31, 2012 33.1m 0 • Dividend of EUR 0.06 per share was paid in April, totally
Slide 21: Number of personnel
Number of personnel At the end of December: 939 1200 (Q412: 931) 1000 • Decreases in India S&M and Malaysia R&D since Q313 800 600 400 200 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q1'13 Q2'13 Q3'13 Q4'13 Administration 22
Slide 22: Regional Revenue
Regional Revenue 1-12/2013 1-12/2012 Rest Rest of 13 % world 14 % North Nordic North Nordic America 31 % America 31 % 11 % 10 % Rest of Rest of Europe Europe 45% 45 % 23
Slide 23: Protecting the irreplaceable
Protecting the irreplaceable F-Secure.