F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q3 2013 Earnings Presentation
27 slides from F-Secure Oyj's earnings presentation, Oct 25, 2013
Slide 1: Interim Report Q3 2013
INTERIM REPORT Q3 2013 (unaudited) CEO Christian Fredrikson October 25, 2013
Slide 2: Contents
Contents 1. Highlights 2. Financial performance 3. Channels 4. Latest launches 5. Market review 6. Financial targets & Outlook
Slide 3: Highlights
4 HIGHLIGHTS = ™
Slide 4: Highlights in Q3
Highlights in Q3 • Revenues declined, solid profitability and improved cash flow • Revenues was 38.3 million (Q32012:39.1m). • EBIT 8.4 million, 22% of revenues (Q312: 8.6m, 22%) • Cash flow from operations 6 m positive (Q312: 3.5 m positive); change in cash 5.2m positive (Q312: 1.7 m positive) • In
Slide 5: Financial Performance
FINANCIAL | PERFORMANCE §
Slide 6: Revenues
Revenues EURm Q3 Revenues decreased by 2% 45 • Total quarterly revenues 38.3m 40 (Q312: 39.1 m) 35 • Operator revenues practically flat 30 at 23.6m; (Q312: 23.7 m) 25 • Other channels 14.7m; 20 decrease of 4% (Q312:15.4 m) 15 10 5 0 Revenues EBIT 5
Slide 7: Profitability
Profitability 30% Q3 profitability at a good level • EBIT 8.4m, 22% of revenues 25% (Q312: 8.6 m, 22%) • Earnings per share EUR 0.03 20% (EUR 0.04) 15% 10% 5% 0% EBIT% Ave (4 qrts) 6
Slide 8: Costs
Costs EURm Total costs Q3 28.7 m -2%; (Q312:29.4 m) 45 • Cost level was impacted by increased 40 depreciations from past capitalized 35 * expenses; Q313: 2.3 m (Q312: 1.9m) 30 • Capitalized R&D expenses were 0 m 25 (Q312: 0.6m) 20 15 • Operative costs and investments 10 decreased 5 0 Sales & Marketi
Slide 9: Deferred Revenues
Deferred Revenues EURm Q3 Deferred revenues 36.2m 45 (36.3m) 40 • Solid license & renewal sales 35 30 25 Deferred revenues accrued in the balance sheet 20 15 • Dec 31,2012 37.8 m 10 • Sept 30 ,2012 36.3m 5 0 8
Slide 10: Cash position remains solid
Cash position remains solid Improved Cash flow EURm Steek acquisition 120 • from operations 6 m (Q312: 3.5m); Capital repayment • Change in cash 5.2 m positive (Q312: 100 1.7m positive) 80 60 Market value of liquid assets 39.3m 40 (Q312: 27 m) 20 • Dec 31, 2012 33.1m 0 • Sept 30, 2012 27m Q4'07 Q1'0
Slide 11: Number of personnel
Number of personnel At the end of Sept: 973 1200 (Q312: 972) 1000 • Increasing Sales & Marketing resources 800 600 400 200 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q1'13 Q2'13 Q3'13 Sales and Marketing Research and Development Administration 10
Slide 12: Regional Revenue
Regional Revenue 1-9/2013 1-9/2012 Rest Rest 13 % 14 % Nordic Nordic 30 % 31 % North North America America 12 % 10 % Restof Rest of Europe Europe 45 % 45 % 12
Slide 13: Channels
— | = | CHANNELS <—_
Slide 14: Reseller partners around the world
Reseller partners around the world Corporate Direct to Consumer Over 200 customers around business retail, Operators in over the world appstores and eStore 40 countries globally 14
Slide 15: Operator business
Operator business Q3 revenues 23.6 m (23.7 m) EURm Revenues 25 New operator partnerships • Safe Avenue: Ono (Spain), Virgin Media 20 (UK), Toya (Poland) and Tiscali (Italy) • SMB offerings with Swisscom and 15 InterNL (NL) • Telefonica Movistar Costa Rica 10 • Two new content cloud contratcs 5 0 Q3´
Slide 16: Latest Launches
LATEST LAUNCHES
Slide 17: Internet Security – what's new
Internet Security 14 – what’s new • Privacy protection in Facebook (Safe Profile) • New and improved Banking Protection • Exploit Protection (DeepGuard 5) • Protection for encrypted web traffic (HTTPS) • Optimized performance for gaming (Game Mode) • Updated user interface 17
Slide 18: F-Secure Safe Avenue
F-Secure Safe Avenue Converged PC and mobile security
Slide 19: Younited pre-launch
Younited pre-launch Content cloud product for consumers and SMBs – www.younited.com
Slide 20: F-Secure Lokki
F-Secure Lokki • Personal location sharing and messaging app for your family and close friends, from a trusted European security software house • Available for the iPhone, Android phones and Windows Phones • Free application in the appstores, premium features to be launched in Q4/2013
Slide 21: Market Review
MARKET REVIEW 21
Slide 22: Market review
Market review • Internet growth continues globally • Role of internet security significant for business over the Internet • Internet Security market growing close to 10% pa Internet • People have become multi-screeners • Smartphones, tablets, computers or even TVs to get online • Many activities are
Slide 23: Financial Targets & Outlook
FINANCIAL TARGETS & OUTLOOK 23
Slide 24: Strategy and Financials 2012-2014
Strategy and Financials 2012-2014 • First priority is to drive profitable growth and market expansion • Targeting towards double digit revenue growth; supported by all three channels • Investments in multi-device products for online protection, privacy and cloud storage & sharing • Profitability was
Slide 25: Outlook for 2013
Outlook for 2013 The management’s estimation for the year is unchanged (as communicated in Q2); • The annual revenue is estimated to be at a level of 2012. • The annual profitability is estimated to be over 15 % of revenues. The previous guidance given at the beginning of the year was; • The annual
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.