INTERIM REPORT Q2 2013, JULY 26 - F-Secure · 2020-03-24 · INTERIM REPORT Q2 2013, JULY 26...
Transcript of INTERIM REPORT Q2 2013, JULY 26 - F-Secure · 2020-03-24 · INTERIM REPORT Q2 2013, JULY 26...
Protecting the irreplaceable | f-secure.com
INTERIM REPORT
Q2 2013, JULY 26
(UNAUDITED)
F-Secure celebrated its 25th anniversary in May
1. Highlights in Q2
2. Financial performance in Q2
3. Channels
4. Products and services
5. Market review
6. Financial targets & Outlook
Contents
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MikaChief Technology Officer, Security
HIGHLIGHTS IN Q2
Highlights in Q2
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• Revenues and Profitability declined, improved cash flow• Revenues was 38.4 million (Q22012:39.6m).• EBIT 4 million, 11% of revenues (Q212: 5.8m, 15%)• Cash flow from operations 5.7 m positive (6.7 m positive); change in cash 4.6m
positive (3.4 m) when excluding dividend of 9.3m (9.3m) paid in April
• Internet Security• Safe Avenue, combining mobile and PC protection, gains traction• Four new Safe Avenue operator contracts in Q2
• Content Cloud progressing well• Two new content cloud contracts, two other won and several in final phase
• Other• Revised annual financial guidance released on July 22, 2013
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2. Financialperformance in Q2
FINANCIAL PERFORMANCE IN Q2
KarminaSenior Analyst
Q2 Revenues
• Revenues decreased by 3%
• Total quarterly revenues 38.4m (Q212: 39.6 m)
• Operator revenues 23.8m; decrease of 3% (Q212: 24.4 m)
• Other channels 14.7m;
decrease of 3% (Q212:15.2 m)
EURm
0
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Revenues EBIT
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Profitability
• Q2 profitability decreased
• EBIT 4 m, 11% of revenues (Q212: 5.8 m, 16%)
• Earnings per share EUR 0.02 (EUR 0.03)
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0%
5%
10%
15%
20%
25%
30%
Q3
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EBIT% Ave (4 qrts)
Q2 Costs
• Total costs 33.3 +3%; (Q212:32.2 m)
• Cost level was impacted by increased depreciations from past capitalized expenses; Q213: 2.3 m (Q212: 1.9m)
• Capitalized R&D expenses were 0 m (Q212: 1.8m)
• Operative cost level flat, investments decreased
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EURm
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Sales & Marketing Reseach & Development
Administration Restructuring
*
* Bordeaux one-off cost ~7m
• Deferred revenues were at 37.8(38m)
• Solid license & renewal salescontinues in Corporate and Direct to Consumer businesses
• Deferred revenues accrued in the balance sheet
• Dec 31,2012 37.8 m
• June 30,2012 38m
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Q2 Deferred Revenues
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Cash position Dividend/ Other
Capital repayment
• Solid Cash flow
• from operations 5.7m (Q212: 6.7m);
• Change in cash 4.6m positive (Q212: 3.4m positive) excluding paid dividend of 9.3m ( 9.3) in April
• Market value of liquid assets 34m (Q212: 25.3 m)
• Dec 31, 2012 33.1m
• June 30, 2012 25.3m
• Dividend of EUR 0.06 per share was paid in April, totally 9.3m
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Steek acquisition
EURm
Q2 Cash position remains solid
Q2 Number of personnel
• At the end of June: 954(Q212: 990)
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0
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Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q1'13 Q2'13
Sales and Marketing Research and Development Administration
30%
46%
10%14%
Nordic countries;
29%
Rest of Europe;
46%
North America;
11%
Rest of World;
13%
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Regional Revenue Split
1-6/20121-6/2013
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3. ChannelsCHANNELS
VesaSenior Software Engineer
Channels to the markets
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Corporate customers around the world
Direct to Consumer business retail and eStore globally
Over 200 Operators in over 40 countries
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Revenues
Q2 Operator business
• Q2 revenues of 23.8 m (24.4 m) -3% YoY
• New operator partnerships
• Telefonica Movistar launch in Argentina and Guatemala
• Four new Safe Avenue contracts, combining PC and Mobile security
• Two new content cloud contracts, two won and several in pipeline
14 Operator business includes internet service providers, mobile operators and cable operators
EURm
More than200 operator partners globallyand over 250 m broadband subscribers
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7th ANNUAL OPERATOR PARTNER MEETING ARRANGED BY F-SECURE
- Held in Stockholm in May- Over 110 participants from over 60 partners and from 29 countries
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4. Productsand Services
4. Productsand ServicesPRODUCTS AND
SERVICES
SaroginiQuality Engineer
Across our entire portfolio
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Protection Service for Mobile
Protection from mobile threats and loss of phone
Content Anywhere
Store, sync and share precious content on any device at anytime
Online Backup service
Securely store your customers irreplaceable content
Computer, Internet and Home Security
Protecting millions of customers from known and emerging security threats
• significant player in the content cloud business
• millions of users globally
• several petabytes of data securely stored in our cloud
• 5 data centers globally
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F-Secure Safe Content Cloud
Content Cloud
F-Secure SAFE AVENUE Converged PC and mobile security
F-SECURE SOLUTION: SAFE AVENUE
• An innovative delivery solution for all security products that through ease of use encourages consumer adoption and management of security services
• For operators, it is a turn-key, cloud based business platform that implements the needed business logic on their behalf
• As a single integration point, it caters for “coffee break integration” and hence short time to market launching multi-device security
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6. Financial targets & Outlook
5. Market review
MARKET REVIEW
TimoMalware Analyst
Market review
Internet
• Internet growth continues globally• Role of internet security significant for
business over the Internet• Internet Security market growing close to 10% pa
• People have become multi-screeners • Smartphones, tablets, computers or even TVs to get
online• Many activities are performed either sequentially or in
parallel on various devices which defines new requirements
• Demand for Content Cloud services• The need for Internet security and different kind
of safe Content Cloud services is increasing• Privacy is considered importantContent Cloud
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New devices
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6. Financial targets & Outlook
FINANCIAL TARGETS & OUTLOOK
KlasSenior Manager, New Innovation
Strategy and Financial targets 2012-2014• First priority is to drive
profitable growth and market expansion
• Targeting towards double digit revenue growth; supported by all three channels
• The Company invests in Content Cloud business and in Internet security services
• Profitability is expected to develop towards the 25% level at the end of strategy period
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Outlook for 2013 (1/2)
• The long-term business opportunity with Internet Security and Content Cloud products for multiple devices and platforms is attractive.
• The Company is looking for ways to increase its revenue growth and to improve its profit margin.
• The Operator channel is expected to continue to drive the revenue growth powered by Internet security sales and supported by a productized, highly-scalable Content Cloud service.
• The short-term revenue growth remains at lower level mainly due to decreased Content Cloud project revenues as the project sizes are smaller.
• The Company also expects good progress from the Corporate and Direct to Consumer channels
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Outlook for 2013 (2/2)
• The management’s estimation for the year has been revised; • The annual revenue is estimated to be at a level of 2012. • The annual profitability is estimated to be over 15 % of revenues.
• The previous guidance was; • The annual revenue growth is estimated to be over 5% compared to 2012. • The annual profitability is estimated to be over 15 % of revenues.
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The estimates are based on the sales pipeline at the time of publishing, existing subscriptions, support contracts and exchange rates previous experience
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 risks and uncertainties. In addition to the factors explicitly discussed, other could have a material effect on the actual outcome. Such factors include, but are not limited to, general economic and political conditions, fluctuations in exchange rates, interest rates, outcome of external research studies, technological issues, interruptions of business, products, actions of courts, regulators, government agencies, competitors, customers, suppliers, employees and all other parties.
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