Ssh Communications Security Oyj · OMXHEX:SSH1V

Ssh Communications Security Oyj — H1 2006 Earnings Presentation

19 slides from Ssh Communications Security Oyj's earnings presentation, July 2006

  1. Slide 1: Financial Results January 1 – June 30, 2006

    SSH COMMUNICATIONS SECURITY CORP FINANCIAL RESULTS January 1 – June 30, 2006 WELCOME! COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 1

  2. Slide 2: Agenda

    Agenda y 2Q and 1H Business Review - Arto Vainio y Financial report 1-6/2006 - Mika Peuranen www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. 2

  3. Slide 3: 2nd Quarter Business Review

    2nd Quarter Business Review Arto Vainio CEO SSH Communications Security Corp COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 3

  4. Slide 4: 2Q 2006 highlights

    2Q 2006 highlights y Net Sales 2.3 MEUR y Growth Q2/2005 to Q2/2006 +89.6% y Americas revenue +71 % y Europe revenue +107% y Asia revenue +189% y EBIT –0.29 MEUR, Net profit –0.19 MEUR y 3 orders above 100 kEUR; largest single order 0.24 MEUR y 3 new frame agreements with major banks: one in the U.K

  5. Slide 5: 1H 2006 highlights – key numbers

    1H 2006 highlights – key numbers y Net Sales 4.4 MEUR y Growth 1H/2005 to 1H/2006 +54.4% y Americas revenue +53 % y Europe revenue +54% y Asia revenue +64% y EBIT –0.94 MEUR, Net profit –0.55 MEUR y 5 orders above 100 kEUR; largest single order 0.24 MEUR www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIO

  6. Slide 6: SSH Tectia business approach

    SSH Tectia business approach y SSH Tectia is a data security solution aimed at large corporations, financial institutions and government organisations y A system level product with versatile expansion potential in all existing and new accounts y Multi-year frame agreements, multi-year maintenance re

  7. Slide 7: Notes on typical SSH Tectia projects

    Notes on typical SSH Tectia projects y SSH Tectia projects form parts in larger IT infrastructure programs y Several projects have been triggered by SOX or PCI audits y New regulations and cost of operating data security convert customers to commercially supported platforms such as SSH Tectia y Eval

  8. Slide 8: 2006 ongoing activities

    2006 ongoing activities y Target customers in active evaluations and preparation of new projects in all markets y Good portfolio of mature, well-developed sales cases y New sales teams operational, additional hiring in the USA y New products and applications expand our available market y Original: s

  9. Slide 9: 2006 outlook positive

    2006 outlook positive y Sales prospect base significantly larger than year ago y Next Generation SSH Tectia products ready and selling SSH Tectia covers the widest range of enterprise OS platforms y y New applications of SSH Tectia expand our market y Demand drivers solid: new legislation and new, t

  10. Slide 10: Financials January 1 – June 30, 2006

    FINANCIALS January 1 – June 30, 2006 Mika Peuranen CFO SSH Communications Security Corp COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 10

  11. Slide 11: Revenue and EBIT by quarter

    Revenue and EBIT by quarter Revenue EBIT 5 4 3 2 1 0 -1 -2 -3 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. 11

  12. Slide 12: Financial Highlights 1-2Q06

    Financial Highlights 1-2Q06 y Net sales EUR 4.4 million (EUR 2.8 million in 2005) y Operating loss EUR –0.9 million (EUR –3.5 million in 2005) y During the first two quarters revenue increased 54 % compared to the previous year´s first two quarters y Fixed costs decreased by EUR 1.0 million compared

  13. Slide 13: Key Financials 1-2Q06

    Key Financials 1-2Q06 EUR 1000 1-2Q06 % of sales 1-2Q05 % of sales Revenues 4 357 2 822 Purchasing and Production Costs 29 0.7 % 35 1.2 % Gross Margin 4 328 99.3 % 2 786 98.8 % Research and Development 1 688 38.8 % 1 865 66.1 % Sales and Marketing 2 875 66.0 % 3 490 123.7 % Administration 849 19.5 %

  14. Slide 14: Quarterly Financials 1Q05–2Q06

    Quarterly Financials 1Q05–2Q06 EUR 1000 2Q06 1Q06 4Q05 3Q05 2Q05 1Q05 2005 Revenues 2 320 2 037 4 118 2 358 1 224 1 598 9 297 Gross Margin 2 306 2 022 4 090 2 335 1 201 1 585 9 211 Research and Development 825 863 810 748 880 985 3 424 Sales and Marketing 1 534 1 340 1 867 1381 1 580 1 910 6 738 Adm

  15. Slide 15: Net Sales by Market in 1-2Q06

    Net Sales by Market in 1-2Q06 Asia Pacific Asia Americas 11.2% Americas Pacific 59.5% 60.0% 10.6% Europe Europe and and Rest of Rest of World World 29.3% 29.4% 1-2Q06 EUR 4.4 million 1-2Q05 EUR 2.8 million www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. 15

  16. Slide 16: Development of Number of Personnel, Revenue and EBIT

    Development of Number of Personnel, Revenue and EBIT EUR million Personnel Revenue EBIT # of personnel 10 8 160 6 4 120 2 0 80 -2 -4 40 -6 -8 0 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. 16

  17. Slide 17: Development of Costs Structure

    Development of Costs Structure Sales & Marketing EUR million Research & Development Administration 5 4 3 2 1 0 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. 17

  18. Slide 18: Outlook for 2006

    Outlook for 2006 y Thanks to growth in tenders, new customers, and new products, SSH expects 2006 sales and results to be better than those of the previous year y Due to the large size of individual orders and uncertainty of timing, significant variance of revenue per quarter may occur www.ssh.com C

  19. Slide 19: Further Information

    Further Information: Arto Vainio, CEO +358 20 500 7400 Mika Peuranen, CFO +358 20 500 7419 http://www.ssh.com/investors/ THANK YOU! COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 19

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