F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q4 2009 Earnings Presentation
26 slides from F-Secure Oyj's earnings presentation, Feb 3, 2010
Slide 1: F-Secure Corporation - Interim report Q4 2009
F-Secure Corporation - Interim report Q4 2009 (Unaudited) February 3, 2010 NOTE Signing of the closing and Board’s proposals to the Kimmo Alkio, President and CEO AGM will be informed on February 18, 2010 Protecting the irreplaceable | f-secure.com
Slide 2: Highlights of the past year
Highlights of the past year 2 February 3, 2010 © F-Secure Corporation
Slide 3: Highlights in 2009
Highlights in 2009 • Record revenues EUR 125.1m • Operator business growth strong and good base for future growth • Revenue growth +11%, YoY • Acquisition of Steek in July • Operator revenue +24%, YoY expanded the product portfolio of • Traditional license revenue +1% YoY Value Added Services • EBIT
Slide 4: Highlights in Q4 2009
Highlights in Q42009 • Record quarterly revenues of • New product launches progressed EUR 31.8m well • Revenue growth +4% y-o-y • F-Secure Internet Security 2010 • Operator revenue +18% y-o-y • Storage and Digital Content business (acquired Steek SA) integration • Traditional license revenue -7% pro
Slide 5: Strong growth continued in 2009 despite the challenging global economic environment
Strong growth continued in 2009 despite the challenging global economic environment 5 February 3, 2010 © F-Secure Corporation
Slide 6: 2009 Revenues and EBIT
2009 Revenues and EBIT 140,0 2009: Strong performance during the year 120,0 • Annual revenue growth of 11% 100,0 compared to 2008 (2008: 113.0m) • Operator business growth continued; 80,0 60.2m; +24% YoY • Solid profitability; EBIT of 24m, 19% of 60,0 revenues (2008: 24.3m incl gain of 0.8m) 40,0 •
Slide 7: Q4 Revenue growth
Q4 Revenue growth • Revenue growth continued 35 • Total quarterly revenues 31.8m; growth of 4% (Q408: 30.6m) 30 • Operator revenues (incl. Storage and 25 Digital Content business) 15.9m, growth of +18% (13.5m) 20 • Other channels 15.9m, 15 decline of 7% (17.1m) 10 • Profitability 5 • EBIT 4.1m, 13%
Slide 8: Q4 Costs
Q4 Costs 30 • Cost level 25.6m in line with guidance; +19% YoY 25 • Incl. Storage and Digital Content company running costs (Steek) and amortization of the acquisition and 20 integration activities • Additional, pre-planned Q4 marketing & 15 promotion activities • Capitalization of research and 10 d
Slide 9: Q4 Operating profit
Q4 Operating profit • Operating profit level as anticipated 8 • Q4 EBIT 4.1m (Q408: 7.2m); 7 13% of revenues • Cost level increased in Q4 as guided 6 in October; impact of additional costs from marketing ~3%-points in EBIT 5 4 • Equity ratio continued strong 3 • Dec. 31, 2009 70% 2 • Sep. 30, 2009 7
Slide 10: Development of EBIT margin
Development of EBIT margin • Prioritising growth over short 30 % term profitability • While seeking to improve the 25 % profitability sustainably towards EBIT of 25% over time 20 % • Longer term profitability level continues to be driven 15 % extensively by revenue growth and through systematic cost
Slide 11: Number of personnel
Number of personnel • At the end of Q4: 826 (Q408: 718; Q309: 818) • During Q4 slight personnel 900 increase in R&D and in sales and marketing 800 700 600 500 400 300 200 100 0 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Sales and Marketing Research and Development Administration 11 Febru
Slide 12: Q4 Cash position
Q4 Cash position Capital repayment Dividend pay-out • Cash flow for Q4 was 2.9 m positive 100 (Q408:-27.5m including capital 90 Steek acquisition repayment of 35.7m) 80 70 • Cash position remained good 60 • Market value of liquid assets on 50 Dec. 31, 2009: 33.7m 40 Sept 30, 2009. 31m 30 Dec. 31, 20
Slide 13: Q4 Deferred Revenues
Q4 Deferred Revenues 40 • Deferred revenues increased to 35.6m 35 • Slight increase from Q3 because of healthy renewal rates 30 • Deferred revenues accrued in the 25 balance sheet 20 • Dec. 31, 2009 35.6m • Sep. 30, 2009 33.7m 15 • Dec. 31, 2008 37.2m 10 Deferred Revenues 13 February 3, 2010
Slide 14: 2009 Regional Revenue Split
2009 Regional Revenue Split 1-12/2009 1-12/2008 10 % 9% 9% 9% 35 % 39 % 46 % 43 % Nordic Countries Rest of Europe North America Rest of World 14 February 3, 2010
Slide 15: Operator business: Software as a Service the growth driver
Operator business: Software as a Service the growth driver
Slide 16: Operator business growth
Operator business growth • Q4 revenues: 15.9m (13.5m) 18000 • Growth of 18% YoY 16000 • 50% of the total Q4 revenues • Includes all security and storage related 14000 revenues through operators 12000 • The Group’s primary target is to increase take-up rates with security and 10000 storage related se
Slide 17: Over 200 operator partners globally
Over 200 operator partners globally
Slide 18: We enable millions of people to safely enjoy their connected lives
We enable millions of people to safely enjoy the exciting opportunities of their connected lives
Slide 19: F-Secure Internet Security 2010 Success
F-Secure Internet Security 2010 Success • F-Secure’s 2010 security software has received the highest Advanced+ score across five tests conducted by AV-Comparatives.org • Tietokone-lehti, Finland, Jan 2010 (Editor’s Choice) •“F-Secure's new security suite is the best in performance.” •“New user inter
Slide 20: Recent product announcements
Recent product announcements • F-Secure Client Security 9 “F-Secure Client Security 9 provides enhanced malware detection by utilizing the latest in-the-cloud reputation services, fast behavior monitoring and rootkit scanning technologies. The updatable core security technology has been redesigned t
Slide 21: Outlook
Outlook 21 February 3, 2010 © F-Secure Corporation
Slide 22: Growth opportunity building on security
Growth opportunity building on security ON-LINE STORAGE Access, sharing, AND RELATED SERVICES social media integration CONTENT PROTECTION Solutions that keep content safe INTERNET Protecting from SECURITY Internet threats 22 February 3, 2010
Slide 23: Long-term objectives
Long-term objectives • Continue to exceed average market growth GROWTH! • Scalability through strong operator-network • Geographic expansion • Continue to increase Security as Service SOFTWARE penetration through PoS innovations • Extend customer base with Storage as a Service AS A SERVICE • New con
Slide 24: Outlook
Outlook • To continue to exceed the average market growth rates in revenues (i.e. around +5% in 2010, Gartner) • To seek to improve the profitability sustainably towards EBIT level of 25% over time • Longer term profitability level continues to be driven extensively by revenue growth and through sys
Slide 25: 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 26: Protecting the irreplaceable
Protecting the irreplaceable F-Secure.