F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q1 2008 Earnings Presentation
21 slides from F-Secure Oyj's earnings presentation, Apr 23, 2008
Slide 1: F-Secure Corporation Interim report 1Q 2008
F-Secure Corporation Interim report 1Q 2008 April 23rd, 2008 Kimmo Alkio, President and CEO
Slide 2: Q1 Revenues
Q1 Revenues • Solid overall growth of 15% to 26.6m 30 • Strong ISP growth to 10.9m 25 • +8% quarter over quarter • +41% from 1Q07 (YoY) 20 • Mobile security advances 15 • New mobile operator and device manufacturer partnerships 10 • Traditional channel sales grew +2% to 15.7m 5 0 Revenues Interim Re
Slide 3: Q1 Costs
Q1 Costs 25 • Q1 Costs ~19.5m • Continuously investing into future 20 growth 15 • Costs include • Capitalization of Development costs marginal 10 • Granted stock options ~0.2m • Gross margin 92% (92%) 5 0 Q4´06 Q1´07 Q2'05 Q3'05 Q4'05 Q1'06 Q2'06 Q3'06 Q2'07 Q4'07 Q1'08 Q3'07 S&M R&D G&A write-off I
Slide 4: Q1 Operating Result
Q1 Operating Result 7 • EBIT 5.3m • 20% of revenues 6 • +31% EBIT growth from 1Q07 5 4 • Equity ratio strong • Mar 31, 2008 71%* 3 • Dec 31, 2007 82% 2 • Sep 30, 2007 81% 1 0 -1 -2 * If dividends were paid in March Without impairment loss of Network Control equity ratio 81% - was paid in April Inter
Slide 5: Development of EBIT margin
Development of EBIT margin • Continue to prioritise growth over short 30 % term profitability 25 % • Average EBIT has improved gradually 20 % • The 2-4 year goal is to reach 25% EBIT level 15 % 10 % 5% 0% Q3'03 Q3'04 Q1'05 Q3'05 Q1'06 Q3'06 Q1'07 Q3'07 Q1'08 01'04 Graph shows EBIT without the non-re
Slide 6: Q1 Cash flow
Q1 Cash flow Dividend pay-out 95 • Positive cash flow 6.1m 90 85 • Cash flow includes: 80 • SRV payment over 1m 75 • Prepaid corporate taxes 70 • Liquid assets 90.3m (72.4m) 65 • Market value on Mar 31st, 2008 60 55 50 Dividend Cash position Interim Report 1Q08 – April 23rd , 2008 Page 6
Slide 7: Q1 Deferred Revenues
Q1 Deferred Revenues 35 • Deferred revenues accrued in balance sheet 30 • Mar 31, 2008 33.7m • Dec 31, 2007 31.9m 25 • Sep 30, 2007 29.1m • Development following an annual pattern 20 15 10 Q4´06 Q2'05 Q3'05 Q4'05 Q1'06 Q2'06 Q3'06 Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Deferred Revenues Interim Report 1Q08 –
Slide 8: Regional Revenue Split
Regional Revenue Split 2008Q1 2007Q1 8% 9% 9% 8% 40 % 39 % 43 % 44 % Nordic Countries RoE North America RoW Interim Report 1Q08 – April 23rd , 2008 Page 8
Slide 9: ISP Business – continued strong growth
ISP Business – continued strong growth 12000 • 10.9m of revenues 10000 • +41% of total Q1 revenues • Strong growth 8000 • +8% from 4Q07, +41% from 1Q07 • Growth accelerating activities continued kEUR 6000 4000 2000 0 Q1/01 Q1/02 Q1/03 Q1/04 Q1'05 Q1'06 Q1'07 Q1'08 Interim Report 1Q08 – April 23rd ,
Slide 10: Growing number of ISP partners
Growing number of ISP partners 180 • 169 partners in 38 countries 160 • 6 new partners in Q1 140 • Strong competitiveness in signing new partners continues 120 100 • Q1 significant partner announcements 80 • Cabovisao, Portugal 60 • Comstar-Direct, Russia 40 • Ziggo, the Netherlands 20 0 Cumulative
Slide 11: F-Secure Partners' annual market share of residential broadband
F-Secure Partners’ annual market share of residential broadband 40 % Europe 35 % Partners’ market share of residential 30 % broadband 25 % • 37% (34%) in Europe • 10% (10%) in NA 20 % • 9% (n/a) in Asia 15 % NA ASIA (estimates by Dataxis & F- 10 % Secure) 5% 0% 2006 2007 2006 2007 2006 2007 F-Secure
Slide 12: F-Secure Service Provider partners in the Americas
F-Secure Service Provider partners in the Americas Interim Report 1Q08 – April 23rd , 2008 Page 12
Slide 13: F-Secure Service Provider partners in EMEA part 1
F-Secure Service Provider partners in EMEA part1 Interim Report 1Q08 – April 23rd , 2008 Page 13
Slide 14: F-Secure Service Provider partners in EMEA part 2
F-Secure Service Provider partners in EMEA part 2 Interim Report 1Q08 – April 23rd , 2008 Page 14
Slide 15: F-Secure Service Provider partners in APAC
F-Secure Service Provider partners in APAC Interim Report 1Q08 – April 23rd , 2008 Page 15
Slide 16: Q1 Mobile Security Business
Q1 Mobile Security Business • Device manufacturers • Continued strong growth in trial usage • Partnership announcement (Q1) with • Slow steady growth in revenues Sony Ericsson and Toshiba • Ca 3% of total revenues (Q1) Information Systems • Sony Ericsson integration project • Available for a majorit
Slide 17: Recent mobile partner in APAC
Recent mobile partner in APAC The biggest mobile operator in Hong Kong Symbian S60, UIQ and WinMobile phones Interim Report 1Q08 – April 23rd , 2008 Page 17
Slide 18: Key product announcements in Q1
Key product announcements in Q1 • F-Secure Health Check • Pre-release in Q4, official launch Q1 • F-Secure Mobile Security for Windows Mobile (Apr 08) Interim Report 1Q08 – April 23rd , 2008 Page 18
Slide 19: Number of Personnel at the end of quarter
Number of Personnel 602 at the end of quarter 700 600 500 400 300 200 100 0 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 S&M R&D G&A Interim Report 1Q08 – April 23rd , 2008 Page 19
Slide 20: Future Outlook
Future Outlook • Strategy in a nutshell • Q2 2008 outlook (1) Continue to drive growth • Revenues 26.5-28.5m (2) Capitalize on industry leadership in Security • Costs below 21m as a Service (3) Develop leadership in mobile security • FY 2008 outlook • Investing in growth • Expected revenues 110-120m
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