WE ARE F-SECURE Company Presentation for investors September 2016
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Company Presentation for investors
September 2016
WE ARE F-SECURE
1
CYBER SECURITY
LIVES HERE
F-SECURE’S SHAREHOLDERS: FACTS:
0,2 % F-Secure was established in1988 and listed on the Helsinki Stock Exchange in 1999,
15,0 % we’re one of the most experienced players in the cyber security industry
0,3 %
The Company was founded by Risto Siilasmaa, current Chairman of the Board of
5,5 % Directors and the most significant single shareholder
We offer:
13,4 %
Security software and a wide range of cyber security services for businesses
65,3 %
Consumer security and privacy solutions
We operate in more than 100 countries
Households We have close to 1,000 employees in 25 countries
Financial & Insurance Institutions
Corporations
Non-profit organizations
2 General government
Other countries & international org.
SAMU KONTTINEN STARTS AS THE NEW CEO
The F-Secure Board of Directors has appointed Samu Konttinen
as new President and CEO, effective 1 August 2016
Joined F-Secure in 2005
Member of the Leadership Team since 2009
Previous positions held:
o Executive Vice President Corporate Security Business
o Executive Vice President of F-Secure’s Consumer Business
o Executive Vice President of Sales and Marketing
o Board membership:
o Ixonos, member of the board since 2011
o Mobile Ecosystem Forum, member of the board since 2015
The previous CEO Christian Fredrikson resigned in June to pursue another leadership
opportunity outside the Company
3
EVOLUTION OF CYBER THREATS AND CHANGES IN THE INFORMATION SECURITY MARKET
VULNERABILITIES INCREASE
Number of connected devices (billions of devices):
2015 2020 2030
Internet of
Things 13 33 ?
Mobile devices 2,6 6 ?
Traditional PCs 2 2 ?
Source: IDC research, Gartner
4
INCREASING COSTS FROM SECURITY INCIDENTS
Security budget growth in companies
+24% 2014-15
2,5
Million Euros
Average costs per security incident for
companies in 2015
Growth in the number of reported
+38% security incidents in 2014-15
Source: PwC, Global State of information security survey 2016
5
MALWARE IS A SIGNIFICANT
THREAT FOR CONSUMERS
7
CORPORATE SECURITY GROWING,
CONSUMER SECURITY REMAINS FLATTISH
USD billion Forecast Information Security 2014-2020
120
100
80 10% annually
60
40
6% annually
20
0 3% annually
2014 2015 2016 2017 2018 2019 2020
IT security services and consulting IT security products Consumer Security
8 Source: Gartner, May 2016
WE ARE GROWING FASTER THAN THE MARKET
F-Secure vs. Market
% growth y-o-y
nSense acquired in
35 June 2015 33
30 26 27 26
25
20
15 Corporate security
10
10 market growth 3-16%
5 3
3 Consumer security software
0 0 0 market growth 1-3%
-5 -5
-10
Q2/15 Q3/15 Q4/15 Q1/16 Q2/16
F-Secure CORPORATE security F-Secure CONSUMER security
Source: Gartner May 2016
9
F-SECURE’S
PROCUCT AND SERVICE
OFFERING
AND SALES CHANNELSENTERPRISES AND ADVANCED TECH COMPANIES
FACING ATTACKS ARE DRIVING THE SECURITY
TECHNOLOGY
Enterprises, Advanced
Tech companies
Mid-size
Business
Consumers
8CYBER SECURITY IS A PROCESS
VULNERABILITY
PREDICT MANAGEMENT
Security assessments Vulnerability scanning
Threat analysis and attack surface Vulnerability management
enumeration Automated patching
Products: Products:
B2B: Riddler B2B: F-Secure Radar
CONSULTING SERVICES ENPOINT PROTECTION
Technical assessments PREDICT PREVENT Endpoint and server security
GRC assessments Security for virtualized
Security investigations, forensics, RESPOND DETECT environments
reverse engineering Mobile security
Centralized management (cloud
and on premise)
ATTACK DETECTION AND Continuous service or as yearly
REMEDIATION license
• Detection of attacks through Products:
endpoint and server sensors B2B: Protection Service for
• Decoy sensors to detect movements Business / Business Suite
• As a service from the cloud B2C: F-Secure Safe,
• Products: Freedome
• B2B: Rapid Detection ServiceSCALABILITY THROUGH
STRONG GO-TO-MARKET CHANNELS
39 % of F-Secure total revenue* 61 % of F-Secure total revenue* * Q2 / 2016
TECHNOLOGY: BEST-IN-CLASS CYBER SECURITY TECHNOLOGY PLATFORM
OFFERING: CORPORATE SECURITY CONSUMER SECURITY
GO-TO-MARKET: 3500+ IT RESELLERS &
SERVICE PARTNERS 200+ OPERATOR PARTNERS
DIRECT SALES ONLINE AND TRADITIONAL
RETAILERS
CUSTOMERS: 100 000 COMPANIES TENS OF MILLIONS OF CONSUMERSCYBER SECURITY SERVICES
We provice both top-of-class cyber
security services and managed security AS DIRECT SALES
products
We have several hundred of large Nordic
enterprises and other corporates with
critical IT systems as our customers
Customers are served directly by F-Secure
We ensure our customers
understand their risks
minimize their attack surface
prevent incidents Services Products
Prediction, prevention, detection and Rapid Detection Service,
detect breaches and react to them response services F-Secure Radar
while minimizing damages
14RAPID DETECTION SERVICE
- FIRST DEALS SIGNED SOON AFTER LAUNCH
SENSORS IN THE
NETWORK AND
END-POINTS
ALERT THREAT
BIG INTELLIGENCE
DATA BEHAVIOURAL
RAPID ANALYSIS
DETECTION
CENTER
ANOMALY
15CORPORATE SECURITY SOLUTIONS THROUGH RESELLERS
We put our business customers in
control of their security with best- IT RESELLERS
in-class end-point protection and
managed security solutions
We have tens of thousands of
business customers around the world,
but our focus is in Europe and Japan
Products are sold through IT resellers
as a managed service or a licenced
product
We have a network of over 3500 Protection Service for Business
resellers A managed security product
Business Suite
16SECURITY AND PRIVACY PRODUCTS
FOR CONSUMER CUSTOMERS
We provide award-winning
security and privacy products for RETAIL
consumers OPERATORS PARTNERS
& WEBSHOP
We have tens of millions of customers
around the globe
Products are sold through operator
and retailer partners as well as in our
webstore F-Secure SAFE
Multi-device security
We have over 200 operator partners solution
reaching hundreds of millions of
consumers as well as a large number
of online and traditional retail
partners F-Secure FREEDOME
Protects your privacy,
prevents tracking
17WE KEEP INVESTING IN GROWTH AREAS
GROWTH EXPANSION OF THE INTERNET OF THINGS
MARKET
The amount of connected devices is expected to
quadruble to over 20 billion by the year 2020.
Source: Gartner
F-SECURE SENSE
COMING
F-SECURE Secures your smart home
SOLUTIONS with one device by creating
a secure network for all of
your connected devices.
To be sold to consumers
online and through
operators
18FINANCIAL KEY FIGURES AND OUTLOOKFOR 2016
FINANCIAL KEY FIGURES
In 2015 F-Secure’s total revenue was EUR 147.6 million and EBIT (IFRS) 20,0 milj. eur
Eur Million
Revenue and EBIT Eur Million Deferred revenue
45 60
38,9 39,3
40 37,2 37,8
35,5 50
35
30 40
25
38,2 38,8
30 30,9 36,0
20 32,5
15 20
10
6,0 10
5,0 4,6
5 4,0 3,2 13,9
11,1 12,1 11,6 12,3
0 0
Q215 Q315 Q415 Q116 Q216 Q215 Q315 Q415 Q116 Q216
Revenues EBIT (IFRS) Deferred revenue, non-current Deferred revenue, current
2
0FINANCIAL KEY FIGURES
Eur Million
40
Costs Eur Million
120
Liquid assets*
35
3,3 100
4,3 3,0
35,2
30 2,8 18,7
3,2
7,4 6,6
6,8 80
25 6,2
6,5
20 60
94,3
15 94,3 93,0
40 76,3 80,5 80,9
22,6 23,5 24,4
22,0 20,9
10
20
5
0 0
Q215 Q315 Q415 Q116 Q216 Q215 Q315 Q415 Q116 Q216
Sales & Marketing Reseach & Development Administration Cash position Dividend/ Other
*Liquid assets include cash and cash equivalents and short term
investments in interest rate funds classified as Available-for-sale assets
2
1CORPORATE SECURITY’S SHARE OF TOTAL
REVENUES INCREASED TO 39%
30
25 24,4 24,3 23,9
23,6 23,5 23,3 23,6 23,2
20
15,4
15
14,6 14,6
13,7
11,6 12,2
10,9 11
10
5
0
Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216
22 Corporate Total Consumer TotalOUTLOOK FOR 2016
REVENUE PROFITABILITY
F-Secure anticipates its overall EBIT for continuing
security revenues to grow in operations is estimated to be
2016 compared to the year EUR 17-21 million (2015:
before (2015: EUR 148 million) EUR 20 million)
Description
Revenue growth is expected to continue especially in the Company's cyber security services,
corporate security products (in particular Protection Service for Business) sold through the
reseller channel, and direct-to-consumer sales of F-Secure’s multi-device security offering SAFE
and the privacy product Freedome. Sales through the operator channel are expected to remain
largely flat.
Revenues from new products are difficult to estimate and may remain low. Their cost impact has
been taken into account in the Company’s profitability guidance.
The guided EBIT figure is not directly comparable to the EBIT(non-IFRS) guidance given in 2015
The Company prioritizes growth over short-term profitability
21BECOMING THE LEADING
EUROPEAN CYBER SECURITY COMPANY
“We aim to recruit We will maximize the commercial impact of our
over a hundred technical expertise and multiple sales channels
new employees
this year.”
In corporate security our focus is in selected
markets in Europe and Japan
In cyber security services our focus is in
Northern Europe and selected verticals
In consumer security we aim for
profitable growth
20
18WHY TO INVEST IN F-SECURE?
CORPORATE SECURITY • Strong growth is expected to continue especially in the corporate
MARKET IN STRONG security market in coming years. There are also new opportunities
GROWTH emerging in the consumer security market despite the general low
level of growth.
• Our awarded technological solutions combined with our best-in-
WE HAVE BEST-IN- class cyber security expertise allow us to develop top-of-class
CLASS TECHNOLOGY
AND KNOW-HOW products and services for both corporate and consumer
customers.
• Over the years we have acquired a network of over 200 operator
PROVEN SALES partners and over 3500 corporate IT resellers which ensures our
CHANNELS
effective go-to-market.
• We have shown strong cashflow and solid profitability throughout
SOLID FINANCIALS out our history. We have a positive outlook for the future.
STRONG BALANCE • Our solid financial footing allows to invest in R&D and also expand
SHEET through M&A
22CONTACT DETAILS
IR WEBSITE IR E-MAIL ADDRESS
www.f-secure.com/investors investor-relations@f-secure.com
Samu Konttinen Saila Miettinen-Lähde
CEO Chief Financial Officer (CFO)
Tapio Pesola
IR Manager
+358 44 3734693
tapio.Pesola@f-secure.comf-secure.com
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