F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q2 2009 Earnings Presentation
28 slides from F-Secure Oyj's earnings presentation, Jul 28, 2009
Slide 1: F-Secure Corporation Interim report Q2 2009
F-Secure Corporation Interim report Q2 2009 (Unaudited) July 28, 2009 Kimmo Alkio, President and CEO
Slide 2: Contents
Contents • Highlights in Q2 2009 • Steek acquisition • Market review and outlook Interim Report Q22009 – July 28 , 2009 Page 2
Slide 3: Q2 Highlights
Q2 Highlights • Good growth continued 35 • Total revenues 31.7m; growth of 16% (Q208: 27.2m) 30 • Service Provider revenues 14.8m, growth of +27% (11.6m) 25 • Other channels 16.9m, growth of 8% (15.6m) 20 15 10 • Solid profitability, reaching 23% EBIT margin 5 • EBIT 7.2m, 23% of revenues (Q208: 4.7
Slide 4: Q2 Costs
Q2 Costs 25 • Cost level 22.4m; +9% YoY • Capitalization of research and development costs; impact on 20 Q2 ~-0.3m 15 • Investment into future growth continued • Focus on ISP professional services 10 and new service innovation 5 0 Sales & Marketing Reseach & Development Administration Interim Report
Slide 5: Q2 Operating profit
Q2 Operating profit 8 • Solid profitability • Q2 EBIT 7.2m (4.7m); 23% of revenues; 7 growth of 17% from Q208 6 5 • Equity ratio • June 30, 2009 71% 4 • Mar 31, 2009 58% / (71%)* 3 • Dec 31, 2008 71% • Sep 30, 2008 83% 2 *) If dividend was paid in March 1 0 Interim Report Q22009 – July 28 , 2009 Pag
Slide 6: Development of EBIT margin
Development of EBIT margin • Continue to prioritise growth over short term profitability 30 % • Average EBIT has gradually improved 25 % • During the next three years, the Group seeks the EBIT level to be around 25%. 20 % 15 % 10 % 5% 0% Graph shows the EBIT excluding the non-recurring impairment lo
Slide 7: Q2 Cash position
Q2 Cash position Dividend pay-out Capital repayment 100 • Cash flow from operations for Q2 90 was 5.1m positive when excluding a paid dividend of 10.9m (Q208: 80 3.8m pos.) 70 • Dividends of 10.9m paid in April 60 50 40 • Cash position strong 30 • Market value of liquid assets on June 30, 2009: 58.7
Slide 8: Q2 Deferred Revenues
Q2 Deferred Revenues 40 • Deferred revenues were 36.3m • Decrease in deferred revenues due to 35 shorter renewal sales 30 • Deferred revenues accrued in the balance sheet 25 • June 30, 2009 36.3m • Mar 31, 2009 37.8m 20 • Dec 31, 2008 37.2m • Sep 30, 2008 33.7m 15 10 Deferred Revenues Interim Report
Slide 9: Regional Revenue Split
Regional Revenue Split 1-6/2009 1-6/2008 10 % 9% 9% 9% 36 % 39 % 45 % 43 % Nordic Countries Rest of Europe North America Rest of World Interim Report Q22009 – July 28 , 2009 Page 9
Slide 10: Operator growth
Operator* growth 16000 • Q2 revenues: 14.8m (11.6m) • Growth of 27% YoY 14000 • 47% of total Q2 revenues 12000 • The Group’s primary target is to 10000 strengthen the co-operation with its 8000 kEUR existing ISP partners • Currently over 200 partners in more than 6000 40 countries 4000 • The acquisi
Slide 11: F-Secure's operator partners, some examples
F-Secure’s operator partners, some examples Interim Report Q22009 – July 28 , 2009 Page 11
Slide 12: Q2 Mobile Security Business
Q2 Mobile Security Business • Co-operation with device • Revenues developing steadily manufacturers continued • Ca 3% of total Q2 revenues • Smartphone security solution: F-Secure Mobile Security 5 also for Windows mobile from June onwards • Anti-theft feature including easy remote locking and wipin
Slide 13: Recent product announcements
Recent product announcements • F-Secure PSB 4.0 • Protection Service for Business (PSB) – a comprehensive Security as a Service solution specially designed for the needs of small and medium-sized companies. • PSB 4.0 provides a faster than ever response to emerging new threats, requires less user in
Slide 14: Number of personnel
Number of personnel • At the end of Q2: 752 (Q109: 728; Q208: 668) 800 • During Q2 personnel increase mainly 700 in Sales and Marketing 600 500 400 300 200 100 0 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Sales and Marketing Research and Development Administration Interim Report Q22009 – July 28 ,
Slide 15: Contents
Contents • Highlights in Q2 2009 • Steek acquisition • Market review and outlook Interim Report Q22009 – July 28 , 2009 Page 15
Slide 16: F-Secure acquired Steek SA
F-Secure acquired Steek SA Key facts of Steek SA • a leading European software provider for online storage and data management solutions to operators* • a key player in high growth online storage market • major operator partners: SFR (France), Virgin Media (UK), TDC (Denmark), Singtel (Singapore) an
Slide 17: Financial impact of the acquisition
Financial impact of the acquisition Purchase price • the cash and debt free purchase price is EUR 27.5m • in addition, F-Secure may pay an additional purchase price of a maximum of EUR 2.5m based on performance of the acquired business; to be paid in 2010 • paid in cash and financed with the company
Slide 18: Online Storage is a great opportunity for operators - US example
Online Storage is a great opportunity for operators - US example Forecast of Annual Revenue of BSP-Provisioned Online Storage Services In US alone Broadband Service Providers (BSP) will see US figures customer retention and $188 million in subscription revenue in 2012 from storage and backup service
Slide 19: Growth opportunity building on security
Growth opportunity building on security ON-LINE STORAGE Access, sharing, AND RELATED SERVICES social media integration CONTENT Solutions that keep PROTECTION content safe INTERNET Protecting from Internet threats SECURITY Interim Report Q22009 – July 28 , 2009 Page 19
Slide 20: Steek and Singtel
Steek and Singtel • Convergent Fixed and Mobile online storage • With PC/Mac and Mobile backup • Mobile and Computer both store user data files that need to be saved • Both need to be accessed at the same place • And saved by your convergent operator Interim Report Q22009 – July 28 , 2009 Page 20
Slide 21: Complimentary solutions and partnerships
Complimentary solutions and partnerships Security as a service On-line storage and • PC related services Access to • Mobile adjacent • On-line storage platform market for • On-line back-up as • On-line back-up faster growth partnership with Steek • Media access via PC and mobile Go-to-market • Shari
Slide 22: F-Secure - the leading Software as a Service partner for operators globally
F-Secure - the leading Software as a Service partner for operators globally The acquisition strengthens F-Secure’s position as the leading SaaS partner • a natural step in F-Secure’s strategy to broaden Value Added Service (VAS) offerings to consumers • acquired solutions and operating model is high
Slide 23: In summary, the new F-Secure
In summary, the new F-Secure Strongest SaaS solution portfolio for operators and directly Leading set of operator relationships across US, Europe and APAC Combined teams with industry-leading experience on consumer VAS with major operators Interim Report Q22009 – July 28 , 2009 Page 23
Slide 24: Contents
Contents • Highlights in Q2 2009 • Steek acquisition • Market review and outlook Interim Report Q22009 – July 28 , 2009 Page 24
Slide 25: Security is a good place to be
Security is a good place to be SIEM F-Secure present 4% Global security market Other Security Software is a $10b+ 15% Enterprise Antivirus industry 26% User Provisioning F-Secure is present in 9% the segments making Consumer Antivirus the majority of the 27% Web Access vendor revenue Management 7% U
Slide 26: Long-term objectives
Long-term objectives • Continue to exceed average market growth Growth! • Scalability through strong operator-network • Mobile partnerships and pre-installations • Expand Software as a Service business model Software as a Service • Maximise Security as a Service business • Expansion possibility also
Slide 27: Short-term outlook
Short-term outlook • During the year 2009 the Group seeks to continue to exceed the average market growth • Core businesses anticipated to continue to perform as in previous quarters. • Q3 2009 outlook including Steek financials 1) • Revenues 31-33m • Cost level not to exceed 23m* * Excluding amorti
Slide 28: BE SURE.