F-secure Oyj · OMXHEX:FSECURE
F-secure Oyj — Investor Day (November 2017)
10 slides from F-secure Oyj's investor day presentation, November 2017
Slide 1: Financials: Continued Investments to Support Growth
Eriikka Söderström, CFO FINANCIALS CONTINUED INVESTMENTS TO SUPPORT GROWTH
Slide 2: Revenue and EBIT Development
REVENUE AND EBIT DEVELOPMENT B2B CAGR 2014-”2017” 15% (2017 based on rolling 4 quarter actuals) M€ Total CAGR % +6% -2% 180 168 +9% 160 157 155 154 158 146 149 16 19 16 2 140 130 13 125 4 2 63 120 113 47 52 45 46 47 100 50 49 47 80 60 66 86 94 92 92 96 96 40 74 78 24 24 24 20 27 2017 EBIT Guidance 2
Slide 3: Quarterly Revenue Growth
QUARTERLY REVENUE GROWTH nSense acquisition impact 35% 30% 25% 20% B2B Revenue 15% Group Deferred 10% Revenue 5% Group Revenue 0% Consumer -5% Revenue Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 3
Slide 4: Order Intake Development
ORDER INTAKE DEVELOPMENT B2B CAGR% +20% 50 40% 45 10% 35% 7% 8% 12% 40 11% 30% 6% 7% 6% 35 0% 2% 5% 25% 35% 32% 31% 35% 34% 30 33% 35% 34% 32% 20% 33% 30% 25 15% 20 10% Consumer Gr% 15 5% B2B Gr% 10 0% B2B NEW 5 -5% B2B EPP 67% 65% 65% 59% 59% 59% 62% 54% 58% 55% 58% 0 -10% Consumer Q1/15 Q2/15 Q3/1
Slide 5: Significant Share of Revenue Gets Recognized Later (Deferred Revenue)
SIGNIFICANT SHARE OF REVENUE GETS RECOGNIZED LATER DURING THE CONTRACT PERIOD (=DEFERRED REVENUE) Q317YTD Order Intake Operator Converts to revenue immediately Consumer ~60% Converts to revenue immediately Direct Mainly deferred Business B2B SW Mainly deferred B2B ~40% Recorded as deferred revenue a
Slide 6: Revenue Recognition – IFRS 15
REVENUE RECOGNITION – IFRS 15 New standard will be effective from 1 January 2018 Revenue from customer contracts shall mainly be recognized over time Change compared to • A part of the corporate business and consumer direct business contracts delays revenue current method: recognition compared to th
Slide 7: Increase in R&D and S&M Expenses to Enable B2B Growth
INCREASE IN R&D AND S&M EXPENSES TO ENABLE B2B GROWTH R&D EXPENSES % OF REVENUE S&M EXPENSES % OF REVENUE 60% 50 30% 100 27% 27% 58% 62% 55% 40 25% 60% 47% 80 16% 19% 30 17% 20% 60 40% 20 15% 40 10 10% 20% 20 0 5% 0 -2 -2 -3 -3 -10 0% 0 0% 2013 2014 2015 2016 2017 YTD 2013 2014 2015 2016 2017 YTD %
Slide 8: Strong Balance Sheet
STRONG BALANCE SHEET Cash and available-for-sale financial assets CASH FLOW FROM OPERATIONS 94 93 81 61 61 48 26 26 28 29 29 34 33 33 23 22 28 16 21 15 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD YTD Equity ratio (%) GEARING (%) 2017 2008 2
Slide 9: What Makes Our Business Attractive?
WHAT MAKES OUR BUSINESS ATTRACTIVE? • Demand for cyber security solutions continues to grow • World-leading experts in the company • Consulting adjacent to product business • Software business model with high product margins • Recurring revenues • Cash generating business • In investment mode now to
Slide 10: F-Secure
Us F-Secure.