F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q1 2009 Earnings Presentation
22 slides from F-Secure Oyj's earnings presentation, Apr 23, 2009
Slide 1: F-Secure Corporation Interim report Q1 2009
F-Secure Corporation Interim report Q1 2009 (Unaudited) April 23, 2009 Kimmo Alkio, President and CEO
Slide 2: Contents
Contents • Highlights in Q1 2009 • Market review • Outlook Interim Report Q12009 – April 23 , 2009 Page 2
Slide 3: Q1 Highlights
Q1 Highlights • Solid growth 35 • Total revenues 30.6m; growth of 15% (Q108: 26.6m) 30 • Service Provider revenues 14.2m, growth of +30% 25 • Other channels 16.5m, growth of 5% 20 15 • Strong profitability & positive cash 10 flow • EBIT 6.1m, 20% of revenues 5 (Q108: 5.3m) • EPS EUR 0.03 (EUR 0.03)
Slide 4: Q1 Costs
Q1 Costs 25 • Cost level 22.3m; +14% YoY (according to guidance) • Capitalization of research and 20 development costs; impact on Q1 ~-0.2m 15 • Investment into future growth continued 10 • Focus on ISP professional services and new service innovation 5 0 Sales & Marketing Reseach & Development Admi
Slide 5: Q1 Operating profit
Q1 Operating profit 8 • Continued strong profitability • Q1 EBIT 6.1m (5.3m); 20% of revenues; 7 growth of 14% from Q108 6 5 • Equity ratio • Mar 31, 2009 58% / (71%)* 4 • Dec 31, 2008 70%2) 3 • Sep 30, 2008 83% 2 *) If dividend was paid in March 1 0 Interim Report Q12009 – April 23 , 2009 Page 5
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 loss of
Slide 7: Q1 Cash position
Q1 Cash position Dividend pay-out Capital repayment 100 • Cash flow from operations for Q1 90 was 3.1m (Q108: 6.1m) 80 • Impacted by temporary change in working capital 70 60 50 • Cash position strong 40 • Market value of liquid assets on 30 March 31, 2009: 64.3m (90.3m) 20 10 0 Dividend Cash positi
Slide 8: Q1 Deferred Revenues
Q1 Deferred Revenues 40 • Deferred revenues were 37.8m • Deferred revenues accrued in the 35 balance sheet • Mar 31, 2009 37.8m 30 • Dec 31, 2008 37.2m • Sep 30, 2008 33.7m 25 20 15 10 Deferred Revenues Interim Report Q12009 – April 23 , 2009 Page 8
Slide 9: Regional Revenue Split
Regional Revenue Split 1-3/2009 1-3/2008 10 % 11 % 9% 9% 34 % 39 % 43 % 45 % Finland & Scandinavia Rest of Europe North America Rest of World Interim Report Q12009 – April 23 , 2009 Page 9
Slide 10: Service Provider growth
Service Provider growth 16000 • Q1 revenues: 14.2m (10.9m) • Growth of 30% YoY 14000 • 46% of total Q1 revenues 12000 • The Group’s primary target is to 10000 strengthen the co-operation with its 8000 kEUR existing ISP partners 6000 • Currently over 190 partners in more than 4000 40 countries 2000 •
Slide 11: Species Event
Species Event •SPECIES is an • Global event for ISP partners • Focus on improvements of co-operation executive • In 2009 • 100 participants worldwide • 53 partners • 20 countries conference for . Interim Report Q12009 – April 23 , 2009 Page 11
Slide 12: F-Secure's service provider partners, examples
F-Secure’s service provider partners, examples Interim Report Q12009 – April 23 , 2009 Page 12
Slide 13: Q1 Mobile Security Business
Q1 Mobile Security Business • Co-operation with device • Operator partnerships, co-operation manufacturers continued further strengthened • Operator partnerships with Vodafone UK, • Smartphone security solution: KPN, TDC, Netia and CSL. F-Secure Mobile Security 5 • Co-operation with the operators T-
Slide 14: Recent product announcements
Recent product announcements • Mobile Security 5 • Includes anti-theft feature including easy remote locking and wiping of confidential data if the phone is lost or stolen • F-Secure PSB 4.0 • Protection Service for Business (PSB) – a comprehensive Security as a Service solution specially designed f
Slide 15: Number of personnel
Number of personnel • At the end of Q1: 728 (end of Q108: 602) 800 • During Q1 net increase of 10 fellows 700 from the end of Dec. 08 • Focus in global Sales & Marketing 600 and Research & Development personnel 500 400 300 200 100 0 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Sales and Marketing Re
Slide 16: Contents
Contents • Highlights in Q1 2009 • Market review • Outlook Interim Report Q12009 – April 23 , 2009 Page 16
Slide 17: 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 18: Security grows twice as fast as software in general
Security grows twice as fast as software in general Western European security software forecast, growth rates 2008-2012 16 % 14 % 12 % 10 % Security software 8% (CAGR 2007- 2012: 9.8%) 6% Software total (CAGR 2007- 2012: 5.0%) 4% 2% 0% 2008 2009 2010 2011 2012 Source: IDC, 2008 CAGR = Compound Annua
Slide 19: Contents
Contents • Highlights in Q12009 • Market review • Outlook Interim Report Q12009 – April 23 , 2009 Page 19
Slide 20: Long-term objectives
Long-term objectives • Continue to exceed average market growth Growth! • Scalability through the strong ISP-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 21: Short-term outlook
Short-term outlook • During the year 2009 the Group seeks to continue to exceed the average market growth • Q2 2009 outlook 1) • Revenues 30-32m • Cost level below 23m 1) The numbers are estimates that are based on the sales pipeline at the time of publishing, existing subscriptions and support cont
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