F-Secure Oyj · OMXHEX:FSECURE

F-Secure Oyj — Q3 2015 Earnings Presentation

25 slides from F-Secure Oyj's earnings presentation, Oct 22, 2015

  1. Slide 1: Solid Quarter: Good Progress in Corporate Business

    SOLID QUARTER: GOOD PROGRESS IN CORPORATE BUSINESS F-SECURE CORPORATION INTERIM REPORT Q3 / 2015 October 22, 2015 Christian Fredrikson, CEO

  2. Slide 2: Contents

    CONTENTS • Highlights • Market review • Business updates • Outlook • Financials 2 © F-Secure Interim Results 22 October 2015

  3. Slide 3: Highlights in Q3

    HIGHLIGHTS IN Q3  Overall security revenue increased by 8 % y-o-y totaling EUR 37.2 million (34.5 m)  EBIT (non-IFRS) 7.3 million, 20% of revenues (EUR 7.4 m, 22%)  Operator revenues on the same level as last year, totaling EUR 18.7 million (18.7 m)  Corporate and direct-to-consumer sales increa

  4. Slide 4: Key Figures

    KEY FIGURES Revenues Deferred revenues Eur million Eur million EBIT (non-IFRS) calculated for continuing operations excluding costs associated with the deferred payment and earn-out of the nSense acquisition and non-recurring items 4 © F-Secure Interim Results 22 October 2015

  5. Slide 5: Key Figures

    KEY FIGURES Eur million Costs Eur million Net cash 1 2 3 1 Personal cloud storage business (younited) sold 2 Dividend of EUR 24.9 million paid in April 3 The EUR 11 million cash payment for nSense 5 © F-Secure Interim Results 22 October 2015

  6. Slide 6: Security Market Continues to Grow

    SECURITY MARKET CONTINUES TO GROW Consumer Security Software Corporate Security Software market is expected to grow market is expected to grow 4-5% annually faster, 6-7% annually $ million $ million 25 000 25 000 20 000 20 000 Source: Gartner 15 000 15 000 10 000 10 000 5 000 5 000 Corporate securit

  7. Slide 7: Enterprise Security Growing Fastest

    ENTERPRISE SECURITY GROWING FASTEST Global Enterprise Security market ...European market expected to grow expected to grow 8.5% annually slightly slower, but still healthy pace € bn € bn 90 88 25 8.5% 4 IAM1 23 IAM1 81 7.6% Infrastructure 21 1 75 4 Infrastructure 15 Protection2 20 1 75 3 Products 3

  8. Slide 8: Non-Operator Sales Driving Growth

    NON-OPERATOR SALES DRIVING GROWTH CONSUMER SECURITY CORPORATE SECURITY OPERATORS DIRECT SALES RESELLERS ENTERPRISES 200+ operators 4000+ resellers SHARE OF REVENUE 50% 50% IN Q3 GROWTH Flat Strong growth IN Q3 (-0,1%) (+17%) 8 © F-Secure Interim Results 22 October 2015

  9. Slide 9: Origin of Revenue Shifting

    ORIGIN OF REVENUE SHIFTING % of restated revenue Disposal of Acquisition of personal cloud cyber security 58% storage services business business 56% 56% 55% 54% 54% 54% 54% 52% 52% 50% 50% 50% 48% 48% 46% 46% 46% 46% 45% 44% 44% 42% 40% Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 Operato

  10. Slide 10: Corporate Highlights

    CORPORATE HIGHLIGHTS INVESTMENTS IN RESELLER GOOD GROWTH IN FOCUS CHANNEL PAY OFF COUNTRIES • Improvements in sales & marketing • France nearly tripled new customer in key regions acquisitions, Germany in good growth • Continued expansion of the reseller • Japan soon to become most significant partn

  11. Slide 11: Making Security Intuitive

    MAKING SECURITY INTUITIVE Three corners of innovation: Technology –User experience –Business models 11 © F-Secure Interim Results 22 October 2015

  12. Slide 12: Consumer Highlights

    CONSUMER HIGHLIGHTS SAFE FREEDOME • Roll-out with operators • New significant partnerships won in continues Q3, several negotiations on-going • New versions of F-Secure SAFE • Added support for Apple Watch and and Internet Security 2016 iOS9. launched for consumers in • Steadily increasing share of

  13. Slide 13: Freedome Wins New Partners

    FREEDOME WINS NEW PARTNERS JULY AUGUST SEPTEMBER One of the world’s Mad Croc, [Several negotiations Best Buy largest network (Canada) global energy ongoing] operators drink brand NEW FEATURE PRODUCT UPDATES • Tracker Mapper – visualisation of tracking • iPad optimized user experience attempts. Beta

  14. Slide 14: Product Development Continues to Meet Market Demand

    PRODUCT DEVELOPMENT CONTINUES TO MEET MARKET DEMAND SOLUTIONS UNDER CONSTRUCTION: SECURITY FOR SMART HOMES INCIDENT DETECTION AND RESPONSE FOR COMPANIES 14 14 © F-Secure Interim Results 22 October 2015

  15. Slide 15: Outlook

    OUTLOOK  The outlook for 2015 is:  Overall security revenue growth for continuing operations is anticipated to be at or above 5 % in 2015 (2014: EUR 137.4 million)  Operating profit (non-IFRS) for continuing operations is estimated to be around 15% of revenues. The guidance excludes the profit fr

  16. Slide 16: We Fight for Digital Freedom!

    WE FIGHT FOR DIGITAL FREEDOM! 16 © F-Secure Interim Results 22 October 2015

  17. Slide 17: Financials Q3 2015

    FINANCIALS Q3 2015

  18. Slide 18: Reporting basis notes: discontinued operations and nSense consolidation

    As of the beginning of 2015 the personal cloud storage business (younited), which was sold to Synchronoss Technologies in February, is reported as discontinued operations. Consequently, comparison figures related to the statement of income have been restated. Comparison figures in the text refer to

  19. Slide 19: Revenues

    REVENUES EURm Q3 Revenues increased by 8% y-o-y  Total quarterly revenues 37.2m (Q314: 34.5 m)  Operator revenues at last year level, 18.7m (Q314: 18.7 m)  Corporate and direct-to-consumer sales increased by 17% totaling 18.6 million (15.8 m)  including the acquired cyber security services (nSen

  20. Slide 20: Profitability

    PROFITABILITY EURm Q3 Operating Profit  EBIT (non-IFRS) 7.3m, 20% of revenues (Q314: 7.4m, 22%)  for continuing operations excluding costs associated with the deferred payment and earn-out of the nSense acquisition and non- recurring items  EBIT (IFRS) 6.0m, 16% (Q314: 7.4m, 22%)  Earnings per s

  21. Slide 21: Costs

    COSTS EURm Q3 costs Costs 30.6m (Q314: 25.6m), +19% y-o-y  The increase is mainly related to personnel related expenses, costs incurred by the acquired nSense business and investments in sales and marketing activities  Depreciations from past capitalized expenses decreased to 1.5m (Q314: 2.0m)  C

  22. Slide 22: Deferred Revenues

    DEFERRED REVENUES Q3 Deferred revenues increased to 43.5m (38.3m) EURm 22 © F-Secure Interim Results 22 October 2015

  23. Slide 23: Solid Cash Position

    SOLID CASH POSITION EURm  Solid operational cash flow in Q3 1  Cash flow from operations 5.7m* (Q314: 5.3m) 2  Market value of liquid assets on 3 30 September 80.5m (Q314 : 51.6m)  Notes on the graph 1. Personal cloud storage business (younited) sold 2. Dividend of EUR 24.9 million paid in April

  24. Slide 24: Number of Personnel

    NUMBER OF PERSONNEL  Number of personnel 913 (Q314: 933) at the end of the quarter 24 © F-Secure Interim Results 22 October 2015

  25. Slide 25: Regional Revenue

    REGIONAL REVENUE % of revenue 25 © F-Secure Interim Results 22 October 2015

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