Interim In terim re repo port rt 1Q 1Q 20 2008 April 23rd, - PowerPoint PPT Presentation

F-Se Secure cure Co Corp rpor oration ation Interim In terim re repo port rt 1Q 1Q 20 2008 April 23rd, 2008 Kimmo Alkio, President and CEO

Q1 Revenues • Solid overall growth of 15% to 26.6m 30 • Strong ISP growth to 10.9m 25 • +8% quarter over quarter • +41% from 1Q07 (YoY) 20 • Mobile security advances 15 • New mobile operator and device manufacturer partnerships 10 • Traditional channel sales grew +2% to 5 15.7m 0 Revenues Interim Report 1Q08 – April 23 rd , 2008 Page 2

Q1 Costs 25 • Q1 Costs ~19.5m • Continuously investing into future 20 growth 15 • Costs include • Capitalization of Development costs 10 marginal • Granted stock options ~0.2m 5 • Gross margin 92% (92%) 0 Q2'05 Q3'05 Q4'05 Q1'06 Q2'06 Q3'06 Q4´06 Q1´07 Q2'07 Q3'07 Q4'07 Q1'08 S&M R&D G&A write-off Interim Report 1Q08 – April 23 rd , 2008 Page 3

Q1 Operating Result 7 • EBIT 5.3m • 20% of revenues 6 • +31% EBIT growth from 1Q07 5 4 • Equity ratio strong • Mar 31, 2008 71%* 3 • Dec 31, 2007 82% 2 • Sep 30, 2007 81% 1 0 -1 -2 * If dividends were paid in March Without impairment loss of Network Control equity ratio 81% - was paid in April Interim Report 1Q08 – April 23 rd , 2008 Page 4

Development of EBIT margin • Continue to prioritise growth over short 30 % term profitability 25 % • Average EBIT has improved gradually 20 % • The 2-4 year goal is to reach 25% EBIT level 15 % 10 % 5 % 0 % Q3'03 01'04 Q3'04 Q1'05 Q3'05 Q1'06 Q3'06 Q1'07 Q3'07 Q1'08 Graph shows EBIT without the non-recurring impairment loss of Network Control in 4Q06 EBIT% Ave (4 qrts) Interim Report 1Q08 – April 23 rd , 2008 Page 5

Q1 Cash flow Dividend pay-out 95 • Positive cash flow 6.1m 90 85 • Cash flow includes: 80 • SRV payment over 1m 75 • Prepaid corporate taxes 70 • Liquid assets 90.3m (72.4m) 65 • Market value on Mar 31st, 2008 60 55 50 Dividend Cash position Interim Report 1Q08 – April 23 rd , 2008 Page 6

Q1 Deferred Revenues 35 • Deferred revenues accrued in balance sheet 30 • Mar 31, 2008 33.7m • Dec 31, 2007 31.9m 25 • Sep 30, 2007 29.1m • Development following an annual pattern 20 15 10 Q2'05 Q3'05 Q4'05 Q1'06 Q2'06 Q3'06 Q4 Q4´06 Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 06 Deferred Revenues Interim Report 1Q08 – April 23 rd , 2008 Page 7

Regional Revenue Split 2008Q1 2007Q1 8 % 9 % 8 %9 % 40 % 39 % 43 % 44 % Nordic Countries RoE North America RoW Interim Report 1Q08 – April 23 rd , 2008 Page 8

ISP Business – continued strong growth 12000 • 10.9m of revenues 10000 • +41% of total Q1 revenues • Strong growth 8000 • +8% from 4Q07, +41% from 1Q07 • Growth accelerating activities continued kEUR 6000 4000 2000 0 Q1/01 Q1/02 Q1/03 Q1/04 Q1'05 Q1'06 Q1'07 Q1'08 Interim Report 1Q08 – April 23 rd , 2008 Page 9

Growing number of ISP partners 180 • 169 partners in 38 countries 160 • 6 new partners in Q1 140 • Strong competitiveness in signing new 120 partners continues 100 80 • Q1 significant partner announcements 60 • Cabovisao, Portugal • Comstar-Direct, Russia 40 • Ziggo, the Netherlands 20 0 Cumulative Interim Report 1Q08 – April 23 rd , 2008 Page 10

F- Secure Partners’ annual market share of residential broadband Europe 40 % 35 % Partners ’ market share of residential broadband 30 % • 37% (34%) in Europe 25 % • 10% (10%) in NA 20 % • 9% (n/a) in Asia 15 % NA ASIA (estimates by Dataxis & F- 10 % Secure) 5 % 0 % 2006 2007 2006 2007 2006 2007 F-Secure Interim Report 1Q08 – April 23 rd , 2008 Page 11

F-Secure Service Provider partners in the Americas Interim Report 1Q08 – April 23 rd , 2008 Page 12

F-Secure Service Provider partners in EMEA part1 Interim Report 1Q08 – April 23 rd , 2008 Page 13

F-Secure Service Provider partners in EMEA part 2 Interim Report 1Q08 – April 23 rd , 2008 Page 14

F-Secure Service Provider partners in APAC Interim Report 1Q08 – April 23 rd , 2008 Page 15

Q1 Mobile Security Business • Continued strong growth in trial usage • Device manufacturers • Slow steady growth in revenues • Partnership announcement (Q1) with Sony Ericsson and Toshiba • Ca 3% of total revenues (Q1) Information Systems • Sony Ericsson integration project • Available for a majority of the revenues affecting Q1 currently shipping or upcoming Nokia • Operators key for awareness & S60 3rd edition devices availability • T-Mobile UK & Germany • Orange UK & Switzerland • Swisscom • TeliaSonera • Elisa • CSL (Hong Kong) Interim Report 1Q08 – April 23 rd , 2008 Page 16

Recent mobile partner in APAC  The biggest mobile operator in Hong Kong  Symbian S60, UIQ and WinMobile phones Interim Report 1Q08 – April 23 rd , 2008 Page 17

Key product announcements in Q1 • F-Secure Health Check • Pre-release in Q4, official launch Q1 • F-Secure Mobile Security for Windows Mobile (Apr 08) Interim Report 1Q08 – April 23 rd , 2008 Page 18

Number of Personnel 602 at the end of quarter 700 600 500 400 300 200 100 0 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 S&M R&D G&A Interim Report 1Q08 – April 23 rd , 2008 Page 19

Future Outlook • Strategy in a nutshell • Q2 2008 outlook (1) Continue to drive growth • Revenues 26.5-28.5m (2) Capitalize on industry leadership in Security • Costs below 21m as a Service (3) Develop leadership in mobile security • FY 2008 outlook • • Expected revenues 110-120m Investing in growth • • EBIT% for the full year 19-23% New sales & marketing activities for scalability in ISP& mobile • ISP growth c. 40% during 2008 • Pursue security related technologies and new services related to the online wellbeing • Mobile business • Revenues continue to grow gradually • Remaining a small part of total revenues in 2008 Based on the sales pipeline at the time of publishing, existing subscriptions and support contracts, previous experience Interim Report 1Q08 – April 23 rd , 2008 Page 20