F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q3 2010 Earnings Presentation
23 slides from F-Secure Oyj's earnings presentation, Oct 27, 2010
Slide 1: F-Secure Corporation - Interim report Q3 2010
F-Secure Corporation - Interim report Q3 2010 (Unaudited) October 27, 2010 Kimmo Alkio, President & CEO Protecting the irreplaceable | f-secure.com
Slide 2: Highlights of Q3 2010
Highlights of Q3 2010 • Solid overall and financial performance • Operator channel strong • Outcome within guidance • Security Sales accelerated from Q2 • Reorganizing of operations initiated in • Storage related service delivery delays October to drive faster growth slowed down total Operator reven
Slide 3: Financial performance in Q3
Financial performance in Q3 3 © F-Secure Corporation
Slide 4: Q3 Revenue growth
Q3 Revenue growth EURm • Revenue growth y-o-y continued 35 • Total quarterly revenues 32.0m; growth of 3% (Q309: 31.1m) 30 • Operator revenues (incl. Storage and 25 Digital Content business) 16.7m, growth of 9% (15.4m) 20 • Other channels 15.3m, decline of 3% (15.7m) 15 • Profitability solid 10 • EB
Slide 5: Q3 Costs
Q3 Costs EURm • Costs 24.3m; +10% YoY 30 • Normal seasonality impact lowered Q3 cost level 25 • Cost increased mainly in the Storage and Digital Content business unit 20 • Investments in the SDC business continue 15 • Capitalization of research & development costs; impact on Q3 10 ~-0.3m 5 • Investm
Slide 6: Q3 Operating profit
Q3 Operating profit EURm 8 • Solid profitability 7 • Q3 EBIT 5.9m (Q309: 6.6m, 21%); 18% of revenues 6 5 • Equity ratio: 4 • Sep. 30, 2010 71% • Jun. 30, 2010 67% 3 • Mar. 31, 2010 58% / (67%) 1) 2 • Dec. 31, 2009 70% 1 • Sep. 30, 2009 70% 1) If dividend was paid in March 0 6
Slide 7: Development of EBIT margin
Development of EBIT margin • Prioritising growth over short 30 % term profitability, currently investing in Storage business 25 % • Seeking to improve profitability longer term towards 25% EBIT 20 % level 15 % The graph shows the EBIT excluding the non- recurring impairment loss of Network Control i
Slide 8: Q3 Cash position
Q3 Cash position • Cash flow from operations for Q3 was Capital repayment 3.5m positive (Q309: 0.6m) 100 Dividend pay-out/ Share buy backs 90 • Total cash flow 0.5m negative including Steek acquisition share buy backs (Q309: 27.6m negative 80 incl acquisition) 70 • Cash position remained at a good l
Slide 9: Q3 Deferred Revenues
Q3 Deferred Revenues 40 • Deferred revenues were at 35.1m • Seasonal decrease from the previous 35 quarter 30 25 • Deferred revenues accrued in the balance sheet 20 • Sep.30, 2010 35.1m • Jun. 30, 2010 37.2m 15 • Mar. 31, 2010 37.2m • Dec. 31, 2009 35.6m 10 • Sep. 30, 2009 33.7m Deferred Revenues 9
Slide 10: 2010 Regional Revenue Split
2010 Regional Revenue Split 1-9/2010 1-9/2009 12 % 33 % 11 % 9% 35 % 9% 46 % 45 % Nordic Countries Rest of Europe North America Rest of World 10
Slide 11: Number of personnel
Number of personnel • At the end of Q3: 855 (Q309: 818; Q210: 847) • During Q3 slight personnel increase; 900 mainly in storage business, support and sales 800 700 • Reorganizing of operations 600 started on Oct.4, 2010 500 • The company seeks to streamline its organizational structure to 400 drive
Slide 12: Reorganization initiated to drive growth
Reorganization initiated to drive growth • F-Secure has started the reorganization of its operations • To drive faster growth, speed and innovation • To further emphasize and increase activities in the operator channel and to take advantage of the market opportunity for value added services • F-Secu
Slide 13: Operator business: strong revenue growth continued, new operator partnerships gained
Operator business: strong revenue growth continued, new operator partnerships gained
Slide 14: Q3 Operator business
Q3 Operator business • Q310 revenues of 16.7m (15.4m) 18000 • Growth of +9% YoY*; +2% QoQ • Operator security sales accelerated from Q2 16000 • Healthy growth in # of security subscribers continued; increase in take up rates 14000 • Storage service revenues in the previous quarter´s level, slowing d
Slide 15: Over 200 operator partners globally – serving 70+m audience
Over 200 operator partners globally – serving 70+m audience
Slide 16: New product launches
New product launches 16
Slide 17: F-Secure Internet Security 2011
New product launches: F-Secure Internet Security 2011™ • F-Secure Internet Security 2011 was launched in September • Designed by experts, Inspired by people • Exciting new packaging and messaging • “This is what you get” 17 October 27, 2010
Slide 18: Already ready for next generation mobile devices, like Samsung Galaxy Tab
Already ready for next generation mobile devices, like Samsung Galaxy Tab Mobile security services were made available for the tablet market on Android operating system in addition to Android smart phones Mobile Security/PSM 6 already works on Samsung Galaxy Tab 18 October 27, 2010
Slide 19: Outlook
Outlook 19 © F-Secure Corporation
Slide 20: Long term objectives
Long term objectives • Continue to exceed average market growth • Scalability through strong operator-network • Geographic expansion Growth • Continue to increase Security as a Service penetration Software as a • Extend the customer base with Storage as a Service Service • New consumer centric user
Slide 21: Q4 outlook
Q4 outlook • F-Secure has earlier stated to seek to exceed in 2H2010 the average antivirus market growth, which has been forecasted to grow around 5%. • In the mid and long term F-Secure seeks to exceed the market growth and to improve profitability towards 25% EBIT level • In Q4 total revenue growt
Slide 22: 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- lookingstatements are based on F-Secure’s present plans, estimates, assumptions, projections and expectations and are subject to ris
Slide 23: Protecting the irreplaceable
Protecting the irreplaceable F-Secure.