Ssh Communications Security Oyj · OMXHEX:SSH1V

Ssh Communications Security Oyj — H1 2005 Earnings Presentation

14 slides from Ssh Communications Security Oyj's earnings presentation, August 2005

  1. Slide 1: SSH Communications Security Corp Financial Results January 1 – June 30, 2005

    SSH COMMUNICATIONS SECURITY CORP FINANCIAL RESULTS January 1 – June 30, 2005 WELCOME! COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 1

  2. Slide 2: Business Review

    Business Review January 1 – June 30, 2005 Johanna Lamminen CFO SSH Communications Security Corp COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 2

  3. Slide 3: Highlights 1-2Q05

    Highlights 1-2Q05 y Net sales EUR 2.8 million, down by 33 % (EUR 4.2 million in 2004) y Larger agreements and longer sales processes cause major fluctuations in SSH’s net sales form quarter to quarter y In January, the company launched the industry’s first Secure Shell product for the IBM mainframe

  4. Slide 4: Market and Sales Development During 1H05

    Market and Sales Development During 1H05 y SSH’s customers were very active in requesting for tenders and launching SSH Tectia™ solution evaluations, but actual decisions for large project deployments were slower than expected y Large enterprises especially in the US showing growing interest in adop

  5. Slide 5: Business Outlook 2005

    Business Outlook 2005 y Customers will remain cautious with their investment decisions, but the changing legislation is expected to have a favorable effect in the market y Sales process for a system-level product for major customers is a long one. While the prospect base has been developing favorabl

  6. Slide 6: Financials

    FINANCIALS January 1 – June 30, 2005 Johanna Lamminen CFO SSH Communications Security Corp COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 6

  7. Slide 7: Financial Highlights 1-2Q05

    Financial Highlights 1-2Q05 y Net sales EUR 2.8 million (EUR 4.2 million in 2004) y 2004 results not directly comparable due to the Certifier business y USD decreased by 5 % y The biggest change was in the U.S market compared to the previous year – decreased by 42 % y Operating results EUR –3.5 mill

  8. Slide 8: Key Financials 1-2Q05

    Key Financials 1-2Q05 EUR 1000 1-2Q05 % of sales 1-2Q04 % of sales Revenues 2 822 4 215 Purchasing and Production Costs 35 1.2% 76 1.8 % Gross Margin 2 786 98.8% 4 139 98.2 % Research and Development 1 865 66.1% 2 188 51.9 % Sales and Marketing 3 490 123.7% 4 425 105.0 % Administration 1 057 37.5% 1

  9. Slide 9: Quarterly Financials 1Q04–2Q05

    Quarterly Financials 1Q04–2Q05 EUR 1000 2Q05 1Q05 4Q04 3Q04 2Q04 1Q04 2004 Revenues 1 224 1 598 1 908 2 107 2 554 1 661 8 230 Gross Margin 1 201 1 585 1 856 2 085 2 509 1 630 8 081 Research and Development 880 985 873 761 1 146 1 043 3 823 Sales and Marketing 1 580 1 910 2 204 1 880 2 385 2 039 8 50

  10. Slide 10: Development of Costs Structure

    Development of Costs Structure Sales & Marketing EUR million Research & Development Administration 6 5 4 3 2 1 0 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. 10

  11. Slide 11: Net Sales by Market in 1-2Q05

    Net Sales by Market in 1-2Q05 Asia Pacific Asia Americas 10.6% Americas Pacific 60.0% 69.7% 5.9% Europe Europe and and Rest of Rest of World World 29.4% 24.3% 1-2Q05 EUR 2.8 million 1-2Q04 EUR 4.2 million www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. 11

  12. Slide 12: Development of Number of Personnel, Revenue and EBIT

    Development of Number of # of personnel Personnel, Revenue and EBIT EUR million Personnel Revenue EBIT 10 200 8 6 150 4 2 100 0 -2 -4 50 -6 -8 0 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. 12

  13. Slide 13: Financial Targets 2005

    Financial Targets 2005 y It is still possible to reach the revenue estimation given earlier (EUR 8-10 million), but there is uncertainty in it, because the value of a single contract in the pipeline may continue to account for as much as half of an entire quarter’s invoicing. y Therefore SSH has dec

  14. Slide 14: Further Information

    Further Information: Arto Vainio, CEO +358 20 500 7400 Johanna Lamminen, CFO +358 20 500 7419 http://www.ssh.com/investors/ THANK YOU! COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 14

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