F-secure Oyj · OMXHEX:FSECURE
F-secure Oyj — Q1 2020 Earnings Presentation
14 slides from F-secure Oyj's earnings presentation, Jun 26, 2020
Slide 1: Improved Profitability with EBITDA Margin of 13%
IMPROVED PROFITABILITY WITH EBITDAMARGIN OF 13% Q1/2020 Samu Konttinen, President & CEO 1
Slide 2: Key Takeaways from Q1-2020
KEY TAKEAWAYS FROM Q1-2020 Improved profitability with EBITDA margin of 13% • F-Secure has ensured full business continuity to the customers despite COVID-19 • Corporate security products revenue grew 4% • Managed Detection and Response (MDR) revenue grew strongly • Endpoint security continued sligh
Slide 3: COVID-19 Pandemic Considerations
COVID-19 PANDEMIC CONSIDERATIONS Employees ▪ Health and safety of our employees is a key priority ▪ All cybersecurity operations protecting our customers remained unaffected Business continuity ▪ Smooth transition to remote work ▪ Financial outlook for 2020 withdrawn due to market uncertainties Busi
Slide 4: Strong Liquidity & Financing Position to Overcome Market Turbulence
STRONG LIQUIDITY & FINANCING POSITION TO OVERCOME MARKET TURBULENCE (EUR million) Debt financing available Cash Flow from operating activities On 24 April F-Secure withdrew 54 Strong cash conversion in Q1/2020 due to 10M€ from the RCF to strengthen its improved profitability and collection performan
Slide 5: Need for Cybersecurity Is Constant
NEED FOR CYBERSECURITY IS CONSTANT Threat actors seeking new attacking angles Long term market drivers unchanged constantly Average time to Average cost of detect a breach Average time to an attack per day resolve an attack +100 18 659€ 46 DAYS DAYS Attack traffic Consumers grown by seeing themselve
Slide 6: F-Secure Countercept Case Study: The Unexpected Double Breach
F-SECURE COUNTERCEPT CASE STUDY: THE UNEXPECTED DOUBLE BREACH Day -514 Initial Nation State Actor A compromise Day -24 Initial breach by Global CyberCrime Group Day 1 Client engaged F-Secure Incident Response Day 2 F-Secure Countercept deployed to support investigation Day 4 Nation State Actor A ide
Slide 7: Improved Profitability
IMPROVED PROFITABILITY (Financial Highlights 1-3/2020) EUR million 1-3/2020 1-3/2019 Change % Revenue 54.8 53.4 3% Consumer security 24.4 24.0 1% Corporate security 30.4 29.4 4% Adjusted EBITDA1 7.2 5.0 44 % % of revenue 13 % 9% EBIT 3.6 0.6 477 % % of revenue 7% 1% Net Debt2 13.6 25.1 -46 % Cash fl
Slide 8: Corporate Security Products Revenue Grew 4%
CORPORATE SECURITY PRODUCTS REVENUE GREW 4% (1-3/2020, EUR million) Revenue comparison Revenue from endpoint security continued slight and steady growth • Good renewal performance with existing installations +4% • Positive quarter in new sales of Endpoint Protection Suite in most 18.0 18.4 18.3 18.6
Slide 9: Cyber Security Consulting Revenue Grew 3%
CYBER SECURITY CONSULTING REVENUE GREW 3% (1-3/2020, EUR million) Revenue comparison Cyber security consulting strong growth continued excluding a particularly large project in the Nordics • In the Nordics, a particularly large project came to its finalization +3% phase, which meant a reduction in s
Slide 10: Consumer Security – At the Previous Year's Level
CONSUMER SECURITY – AT THE PREVIOUS YEAR’S LEVEL (1-3/2020, EUR million) Revenue comparison Revenue from the operator channel remained at the previous year’s level • The resilient operator channel continued its stable performance +1% • Nifty (Japan) first of our operator partners to launch ID 24.0 2
Slide 11: F-Secure's Q1/2020 in Brief
F-SECURE’S Q1/2020 IN BRIEF (EUR million, 1-3/2020) Revenue split & growth by business Revenue split & growth by geography Adjusted EBITDA Cyber Security Consulting +3% Nordics -6% Corporate Products +4% Europe (excl. Nordics) +6% +44% Consumer Security +1% North America +26% 7.2 Other Regions +1% +
Slide 12: Appendix
APPENDIX 12
Slide 13: Adjusted EBITDA Development
ADJUSTED EBITDA DEVELOPMENT (Q1/2019 – Q1/2020, EUR million) Adjusted EBITDA 13% Adjusted EBITDA margin (%) 13% 12% 7.2 6.8 6.6 9% 9% 5.0 4.8 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Other operating income1 9.1 3.4 Impairment -6.0 -0.3 Restructuring -4.6 0.4 Depreciation & Amortization -4.4 -4.6 -4.3 -4.4 -4.1
Slide 14: F-Secure.
F-Secure. Ut