F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q4 2010 Earnings Presentation
30 slides from F-Secure Oyj's earnings presentation, Feb 2, 2011
Slide 1: F-Secure Corporation - Interim report Q4 2010
F-Secure Corporation - Interim report Q4 2010 (Unaudited) February 2, 2011 Kimmo Alkio, President & CEO Protecting the irreplaceable | f-secure.com
Slide 2: Q4 highlights – strong finish for 2010!
Q4 highlights – strong finish for 2010! • Major achievements in winning new Operators; portfolio of Security and Storage services very competitive globally • Good revenue performance in the quarter; storage already contributing • North America business taking major steps forward; AT&T agreement (sto
Slide 3: 2010 summary
2010 summary • Traditional Security as a Service -business healthy with accelerating growth in 2H • Major investments put in place for storage services; scalability to meet global demand • Product of the Year for Internet Security 2011 • Service offering attractive with combined security and storage
Slide 4: Financial performance
i fi Financial Berfornaneee_ Ss
Slide 5: 2010 summary - financials
2010 summary - financials Solid performance 140 • Annual revenue growth of 4% to 130.1 120 million (2009: 125.1m) • Operator business with healthy growth; 100 revenues 67.1m; +12% YoY (2009: 60.2m) 80 • EBIT of 21.8m excl. restructuring 60 costs, 17% of revenues (2009: 24m, 19%) 40 • EBIT 19.8m; 15%
Slide 6: Q4 Revenue and EBIT
Q4 Revenue and EBIT • Revenue growth accelerated driven EURm by operator channel 40 • Total quarterly revenues 34.4m; growth of 8% (Q409: 31.8m) 35 • Operator revenues (incl. Storage and 30 Digital Content business) 18.4m, growth of 15% (15.9m) 25 • Other channels 16.0m, growth of 1% 20 (15.9m) • Pr
Slide 7: Q4 Costs
Q4 Costs EURm 35 • Costs 29.1m incl. restructuring costs of 2m 30 • Restructuring completed in Q4 25 • Investments in the storage and digital content business continued 20 • Capitalization of research & 15 development costs; during 2010 impact ~-2.3m (1.7m) 10 • Focus on storage services and portfol
Slide 8: Q4 Operating profit
Q4 Operating profit EURm • Operating profit level at a good level 8 • EBIT 3.6m including restructuring costs, 10 % of revenues; EBIT 5.6m excluding 7 restructuring costs, 16% of revenues (Q409: 4.1m, 13%). 6 • Equity ratio: 5 • Dec. 30, 2010 69% 4 • Sep. 30, 010 71% 3 • Dec. 31, 2009 70% 2 1 0 EBIT
Slide 9: Development of EBIT margin
Development of EBIT margin • Prioritising growth over short 30 % term profitability, currently investing in Storage business 25 % • Seeking to improve profitability 20 % longer term towards 25% EBIT level 15 % The graph shows the EBIT excluding the non-recurring 10 % impairment loss of Network Contr
Slide 10: Q4 Cash position
Q4 Cash position EURm • Q4 cash flow from operations 7.2m positive Capital repayment (Q409: 4.6m) 100 Dividend pay-out/ Share buy backs • Annual cash flow from operations 23.1m 90 Steek acquisition positive (2009: 16.4m); total change of 80 cash 1.5 m negative 70 • Share buy backs continued during Q
Slide 11: Q4 Deferred Revenues
Q4 Deferred Revenues EURm 40 • Deferred revenues were at 37.2m (35.6m) at year-end due to healthy 35 renewal license sales in channel business 30 • Deferred revenues accrued in the balance sheet 25 • Dec.31, 2010 37.2m 20 • Sep.30, 2010 35.1m • Dec. 31, 2009 35.6m 15 10 Deferred Revenues 11
Slide 12: 2010 Regional Revenue Split
2010 Regional Revenue Split 1-12/2010 1-12/2009 Rest of World Nordic North 12 % Countries 11 % America 33 % 9% 35 % 9% Rest of Europe 45 % 46 % 12
Slide 13: Number of personnel
Number of personnel • At the end of Q4: 812 (Q310: 855; Q409: 826) 900 • Reorganizing of operations started in October; was concluded in 800 November 700 • # of employees were reduced by 59 600 • New organizational structure in 500 force as of January 1 400 • During Q4 new recruitments; 300 mainly i
Slide 14: Operator business: Strong global partner network
Operator business: Strong global partner network
Slide 15: Q4 Operator business
Q4 Operator business EURm • Q410 revenues of 18.4m (15.9m) 20 • Growth of +15% YoY 1); +10% QoQ 18 • Healthy security subscriber growth continued; increase in take up rates 16 • AT&T project revenues as of Q4 14 • Increasing number of existing Operators launching combined Security and Storage 12 ser
Slide 16: Recent major wins
Recent major wins • Strengthening market position in North America with AT&T for storage services and with Frontier for security and storage services • Other major wins with Fastweb (Italy), Starhub (Singapore) and Celcom (Malaysia) • More than 200 partners in over 40 countries with an addressable m
Slide 17: Over 200 operator partners globally
Over 200 operator partners globally
Slide 18: Products and Services
Products and Services Products and services 18
Slide 19: Awards highlight
Awards highlight • F-Secure Internet Security 2011, won “Product of the Year” award issued by AV-Comparatives1) • F-Secure Internet Security and F- Secure Anti-Virus was awarded seven out of seven of the highest possible Advanced+ scores in its various tests carried out during this year for protecti
Slide 20: F-Secure Internet Security 2011
F-Secure Internet Security 2011 20
Slide 21: F-Secure Online Backup
F-Secure Online Backup F-Secure Online Backup provides an easy-to-use, fully automated and Internet based backup and restore solution with built-in security to ensure the confidentiality of your files. With the intuitive web portal you can access and share your pictures and other digital content eas
Slide 22: Already ready for next generation mobile devices, like Samsung Galaxy Tab
Already ready for next generation mobile devices, like Samsung Galaxy Tab Mobile Security/PSM 6 already works on Samsung Galaxy Tab 22
Slide 23: Outlook
Outlook 23 © F-Secure Corporation
Slide 24: Market overview
Market overview • The growth of Internet users grew by 200m close to 2b in one year • Global Internet penetration is still globally below 30%; in Asia it is slightly over 20%, in Europe close 60%, and in North America close to 80% (Source: Internet World Stats, U.S. Census Bureau, Jun. 2010) • The S
Slide 25: Operators drive Internet expansion. Long-term market opportunities are attractive for F-Secure.
Operators drive Internet expansion. Long-term market opportunities are attractive for F-Secure. 25
Slide 26: Key strategic objectives
Key strategic objectives • F-Secure’s first priority is to drive growth and market expansion with Software as a Service business model • Focus on increasing the penetration within the current operator base and selective geographical expansion • Penetration rates vary by operator; overall penetration
Slide 27: Long term objectives
Long term objectives • First priority to drive growth and market expansion • Increasing the penetration rates within existing Growth operator customer base • Geographic expansion • New value added services augmenting security • Accelerating the adoption of Security as a Service business model Softwa
Slide 28: Outlook for 2011
Outlook for 2011 • The market opportunity for 2011 looks attractive. • The growth is driven by Software as a Service business; security sales, storage related project deliveries and storage service sales. • The management estimates annual revenue growth to accelerate to around 10%. • Annual profitab
Slide 29: 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-lookings tatements are based on F-Secure’s present plans, estimates, assumptions, projections and expectations and are subject to ris
Slide 30: Protecting the irreplaceable
Protecting the irreplaceable F-Secure.