F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q3 2012 Earnings Presentation
29 slides from F-Secure Oyj's earnings presentation, Oct 25, 2012
Slide 1: F-Secure Corporation Interim report Q3 2012
F-Secure Corporation Interim report Q3 2012 (Unaudited) President & CEO Christian Fredrikson Oct 25, 2012 Protecting the irreplaceable | f-secure.com
Slide 2: Contents
Contents 1. Highlights in Q3 2. Financial performance in Q3 3. Operator business in Q3 4. Products and services 5. Market review 6. Financial targets & Outlook
Slide 3: Highlights in Q3
Highlights in Q3 • Solid revenue growth continued • Total revenues grew by 7% reaching level of 39.1 m (Q311: 36.6 m) • Good Internet security sales • Revenues from the Operator channel grew by 10 % reaching 23.7 million • PC and mobile Internet security sales performed well overall showing double d
Slide 4: 2. Financial performance in Q3
2. Financial performance in Q3 Protecting the irreplaceable | f-secure.com
Slide 5: Q3 Revenues
Q3 Revenues EURm • Revenue growth continued 45 driven by the operator 40 channel 35 • Total quarterly revenues 39.1m; 30 growth of 7 % (Q311: 36.6m) 25 • Operator revenues 23.7 m; growth of 10% (Q311: 21.5 m) 20 • Other channels 15.4 m; 15 growth of 2% (Q311: 15.2 m) 10 5 0 Revenues EBIT 5 Oct 25, 2
Slide 6: Q3 Profitability
Q3 Profitability 30 % • Profitability at good level • EBIT 8.6 m, 22% of revenues; 25 % (Q311: 6.9 m, 19 %); growth of 25% 20 % • Earnings per share EUR 0.04 (EUR 0.03) 15 % 10 % 5% 0% Q4´06 Q4'03 Q2'07 Q1'11 Q2'04 Q4'04 Q2'05 Q4'05 Q2'06 Q4'07 Q2'08 Q1'09 Q3'09 Q1'10 Q3'10 Q3'11 Q1'12 Q3'12 EBIT% A
Slide 7: Q3 Costs – modest increase in run rate
Q3 Costs – modest increase in run rate • Total costs increased to 29.4 m, +5%; EURm (Q311: 28 m) 35 30 • Cost level following the seasonality 25 • Focus on geographic expansion in Latin 20 America 15 • Run rate costs grew modestly from Q2 10 • Cost level was impacted by increased 5 depreciations fro
Slide 8: Q3 Deferred Revenues
Q3 Deferred Revenues EURm • Deferred revenues were at 36.3 m 45 (35m) 40 • Healthy renewal license sales in the 35 channel business 30 25 • Deferred revenues accrued in the 20 balance sheet 15 • June 30,2012 38.0 m 10 • Mar. 31,2012 38.5m 5 • Dec. 31,2011 38.3m 0 8 Oct 25, 2012
Slide 9: Q3 Cash position solid
Q3 Cash position solid • Cash flow from operations 3.5m EURm Steek acquisition (Q311: 5.8 m) 120 Capital repayment • Market value of liquid assets 27m 100 (Q311: 25.9 m) 80 • Jun.30, 2012 25.3m 60 • Mar.31, 2012 31.2m • Dec.31, 2011 28.1m 40 • Dividend of EUR 0.06 per share 20 was paid in April, tot
Slide 10: Q3 Number of personnel
Q3 Number of personnel • At the end of October: 972 1200 (Q212: 990, Q311: 907) 1000 • Number of personnel decreased in R&D due to 800 attrition 600 400 200 0 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Sales and Marketing Research and Development Administration 10 Oct 25, 2012
Slide 11: Q3 Regional Revenue Split
Q3 Regional Revenue Split 1-9/2012 1-9/2011 Rest of World; Rest of 14% Nordic World; North 12% America; countries; Nordic 31 % North 10 % America; countries; 10 % 33 % Rest of Rest of Europe; Europe; 45 % 45 % 11 Oct 25, 2012
Slide 12: 3. Operator business in Q3
3. Operator business in Q3 Protecting the irreplaceable | f-secure.com
Slide 13: Q3 Operator business – solid growth
Q3 Operator business – solid growth • Q3 revenues of 23.6 m (21.5 m), EURm Revenues growth of 10% YoY and -3% QoQ 25 • Double digit Internet security revenue growth continued 20 • Content Cloud subscriber revenues growth continued though at lower rate 15 • Project revenues did not contribute to the
Slide 14: AT&T store, sync & share service
att.com | Wireless Home | Business Center | About | Help | My Account | Feedback S Sign in with your AT&T Access ID. Don’t have an AT&T Access ID? Get yours now, it’s easy! AT&T Locker Forgot ATAT Access ID? / Forgot Password? [[] Keep me logged in for 2 weeks ~ A b store, sync & share Gili safe and
Slide 15: More than 200 operator partners globally
More than 200 operator partners globally and over 250 m broadband subscribers 14 Oct 25, 2012
Slide 16: 4. Products and Services
4. Products and Services Protecting the irreplaceable | f-secure.com
Slide 17: Launches in Q3
Launches in Q3 • Flagship PC product F-Secure Internet Security 2013 - We Will Protect You ! • gives consumers the best protection for their computers and online identity when browsing the web • F-Secure Mobile Security - We Will Protect You ! • features universal support for all Android devices inc
Slide 18: Content Anywhere ecosystem
Content Anywhere ecosystem Operator The foundation for extensions or 3rd a content-centric Party Services service ecosystem Content Cloud
Slide 19: Same user experience across devices
Same user experience across devices 19 November 8, 2012 © F-Secure Confidential
Slide 20: Mobile Product Demand Picking Up
Mobile Product Demand Picking Up • Increase in mobile device sales and wider use of mobile applications create demand for F-Secure mobile product portfolio • Our Safe Anywhere Mobile v8 for Android has a new user interface with built-in modularity enabling new business opportunities and also scale t
Slide 21: Our Approach To Device Convergence
Our Approach To Device Convergence • Majority of our 200+ Operator Partners are looking to expand their security offerings beyond PC devices • This provides a lucrative up sell opportunity for our mobile product range • We are taking this opportunity with a new integration approach for faster time t
Slide 22: 5. Market review
5. Market review Protecting the irreplaceable | f-secure.com
Slide 23: Market review
Market review • Internet growth continues globally • Role of internet security significant for business over the Internet Internet • New business opportunities • Smartphones and tablets growing in number • New devices connected to the Internet are coming to the markets New devices • Need for new ser
Slide 24: 6. Financial targets & Outlook
6. Financial targets & Outlook Protecting the irreplaceable | f-secure.com
Slide 25: Financial targets 2012-2014
Financial targets 2012-2014 • Double digit revenue growth • The Company will continue its investments in Content Cloud business but also in security services • Profitability is expected to develop towards the 25% level at the end of strategy period 25 July 25, 2012
Slide 26: Outlook for 2012 (1/2)
Outlook for 2012 (1/2) • The Operator channel is expected to continue its revenue growth, driven by Internet security sales and supported by subscriber based content cloud revenues. The project- based content cloud revenues in H2 will be substantially lower than in 2011. The traditional license busi
Slide 27: Outlook for 2012 (2/2)
Outlook for 2012 (2/2) • Estimated one-off costs in Q4 • As the new productized Content Cloud offering is to be finalized, the development of old Content Cloud product will be stopped. This will lead to redundancies of close to 50 people in F-Secure SDC (France) and to one-off costs estimated not to
Slide 28: Thank You!
Thank You! Forward-looking statements: Certain statements in this presentation are forward-looking, and the actual outcome could be materially different. Such forward-looking statements are based on F-Secure’s present plans, estimates, assumptions, projections and expectations and are subject to ris
Slide 29: Protecting the irreplaceable
Protecting the irreplaceable F-Secure.