2014-02-05 08:00:00 CET
2014-02-05 08:00:03 CET
REGULATED INFORMATION
F-Secure Oyj - Interim report (Q1 and Q3)
F-SECURE CORPORATION - INTERIM REPORT JANUARY 1 – DECEMBER 31, 2013
Year end Financials as anticipated, strong profitability and improved cashflow
F-Secure Corporation interim report February 5, 2014 at 09.00 (EET)
Highlights in Q4
-- Total revenues were 40.0 million (40.1m)
-- EBIT was 8.8 million representing 22% of revenues (7.4m excluding one-off
costs of 7m,18% of revenues)
-- Earnings per share was EUR 0.03 (EUR 0.00 )
-- Cash flow from operations was 9.3 million positive (7.8m positive); change
in cash 8.5 million positive (6.1m positive)
-- First new cloud-based products launched; personal cloud - younited,
security from the cloud -Freedome
-- The Company has started consultation procedures in F-Secure SDC (France) in
January 2014 to reorganize operations. This may impact up to 22 positions.
Highlights in 2013
-- Total revenues were 155.1 million (157.2 m)
-- EBIT was 27.1 million representing 17% of revenues (27.3m excluding
one-offs of 7 m, 17% of revenues)
-- Earnings per share was EUR 0.11 (EUR 0.09)
-- Cash flow from operations was 28.5 million positive (25.6m); change in cash
24.5 million positive excluding dividend of 9.3million (14.5 m positive
excluding dividend of 9.3m)
-- New innovative cloud-based security and personal cloud products launched,
tens of new operator wins with content cloud and Safe Avenue
-- Latin America entry continued well
Outlook for 2014 - management's estimation for the year is:
-- Revenue is estimated to grow from 2013 with stronger second half
-- Profitability is estimated to be around 15% of revenues excluding one-off
costs
(This report is unaudited. Unless otherwise stated the comparisons refer to the
corresponding period a year ago. The currency is euro. The Content Cloud
business is included in the operator channel figures. *Q412 & 2012 excludes 7 m
of one-offs of reorg costs)
Key figures 2013 2012 2013 2012
----------------------------------------------------
(Eur Million) 10-12 10-12 1-12 1-12
----------------------------------------------------
Revenues 40.0 40.1 155.1 157.2
----------------------------------------------------
Operating profit* 8.8 7.4 27.1 27.3
----------------------------------------------------
% of revenues* 22 19 17 17
----------------------------------------------------
Profit before taxes* 8.7 7.5 26.3 26.9
----------------------------------------------------
Earnings per share (Eur) 0.03 0.00 0.11 0.09
----------------------------------------------------
At the end of period: 38.7 37.7
Deferred revenues
----------------------------------------------------
Equity ratio, % 74 73
----------------------------------------------------
Debt-to-equity ratio, % -66 -51
----------------------------------------------------
Personnel 939 931
----------------------------------------------------
President and CEO Christian Fredrikson:
“The turmoil with security and privacy issues has changed the landscape. After
Snowden's revelations of NSA's surveillance program, people and corporations
have become much more security and privacy sensitive. As a Finnish company with
integrity and privacy in our DNA, this is an advantage to us. Everything is
going to the cloud, including data and security. Traditional security will be
replaced by cloud-based security that protects all Internet connected devices.
This will lead to redistribution of the security market.
Our Q4 financial performance was as anticipated. We successfully improved our
operations resulting in strong profitability and cash flow for the year. We
launched several new innovative products, received numerous awards and signed
new partnerships. We laid the groundwork for more new cloud-based products.
Our recently launched cloud based product younited, a personal cloud product
directly for consumers, gained interest within media and customers
internationally. Our first next generation security product, Freedome, protects
internet connections and user's privacy on mobile devices. Freedome marks
F-Secure's entrance into the new exciting, emerging security from the cloud
market.
We continue investing in cloud-based initiatives to take our new products to
the market. This will clearly increase our go to market investments in 2014.
Our planned growth is coming from direct consumer and especially from small and
medium size businesses, while the operator channel continues as a solid base.
We expect our revenue to grow from 2013 with stronger second half.”
F-Secure Business January - December 2013
Total revenues for 2013 decreased by 1% at 155.1 million (157.2m). Revenues
through the operator channel grew slightly higher from the previous year to
95.3 million (95.2m). Revenues through the other channels decreased by 3%
totaling 59.8 million (61.9m). The growth rate was negatively impacted by the
communicated contractual changes, slower sales of traditional PC security in
several countries and also changes in exchange rates.
EBIT was 27.1 million (20.3m and 27.3 excluding one-offs of 7 m), representing
17% (13% / 17%) of revenues. Earnings per share were EUR 0.11 (EUR 0.09). Cash
flow from operations was 28.5 million positive (25.6 m positive). The change of
net cash was 15.2 million positive (5.2 m positive) including paid dividend of
9.3 million (9.3m). Deferred revenues were 38.7 million at the end of year
(37.7m).
Total fixed costs were 123.7 million (131.2m and 124.2m excluding one-offs of 7
m), a decrease of 6% from the previous year. Depreciations (R&D activations,
software, hardware) increased to 9 million (7.9m). The capitalized development
expenses decreased to 0.3 million (4.9 m). The Company continued its sales and
marketing investments, especially in the geographical expansion in Latin
America. Total R&D costs decreased as a result of the closing of French R&D
unit at the end of 2012. Financials in line with revised Q2 guidance: revenue
growth at a level of 2012 and profitability around 15% of revenues.
The annual geographical breakdown of revenues was as follows: Finland and
Scandinavia 31% (31%), Rest of Europe 45% (45%), North America 11% (10%) and
Rest of the World 13% (14%).
Operator Channel in Q4
In Q4, the Company's content cloud business continued its good progress. Our
recently launched personal cloud offering with the younited brand is now also
gaining traction with operators. In 2013, the Company won over ten new
operators that will launch the service in 2014. In Q4, the service was launched
by Belgacom (Belgium), Tango (Luxemburg), Eastlink (Canada) and SFR (France).
The Company signed three new contracts. The subscriber growth of AT&T and BT
continued strongly during the quarter.
Traditional PC security sales continued to be slower in several countries. Our
new business concept converging mobile and PC security, Safe Avenue, continued
to grow very well, balancing the weaker sales of PC security. Several operators
launched the service like Virgin Media (UK), Ono (Spain), Toya (Poland) and
Tiscali (Italy). American Movil, the world's fifth largest operator group,
selected F-Secure as their multi-device security provider across Latin America,
while their biggest subsidiary, Telcel in Mexico, launched the multi-device
protection service in December. Comcast, the USA's largest cable operator, and
Telenor Group signed contracts to offer Security as a Service to small and
medium size businesses. Comcast has already launched the service.
In the last quarter of 2013, revenues through operator business partners
totaled 24.8 million (24.5m), representing 62% of F-Secure's total revenues
(61%). Revenues grew by 1% from the previous year and by 5% from the previous
quarter. The Q4 subscriber growth was strong, driven by Latin American
operators.
Annual revenues were 95.3 million (95.2m) and 62% (61%) of total revenues.
Corporate and Direct to Consumer Channels in Q4
Sales in traditional channels continued as anticipated. Traditional security
license sales in the corporate channel were weak but were compensated by strong
growth in Security as a Service (SaaS) for business. Direct to consumer sales
through retail and our eStore were practically flat. Our recently launched
personal cloud service, younited, did not yet have material impact on revenues.
Customer satisfaction in security services remained at a healthy level. This is
visible in increasing deferred revenues; at the end of the quarter 38.7 million
(37.7m).
During the quarter, revenues in corporate and direct to consumer channels
decreased by 3% to 15.2 million (15.6 m). These channels represented 38% of
F-Secure's total revenues (39%).
Annual revenues decreased by 3% to 59.8 million (61.9m) and 38% (39%) of total
revenues.
Product Announcements in Q4
F-Secure develops and sells security and content cloud products that support
personal computers, servers and an increasing set of major smartphone, tablet
and other mobile device operating systems. Security products include a wide
range of features, like anti-virus, anti-theft, browsing protection, parental
control and privacy protection for Facebook, and content cloud products include
features like online backup, synchronization and sharing.
During the quarter the key product announcements were as follows:
F-Secure pre-launched Freedome, a new cloud-based security and online privacy
product, in selected European countries and the US. Release of F-Secure
Freedome underscores that our digital lives and the services we use have
already moved to the cloud - so security must also move into the cloud, where
it is always up to date, powerful and effective. Freedome is the Company's
first fully cloud-based security product. (more information
http://freedome.f-secure.com/)
F-Secure Key was launched in November. F-Secure Key simplifies the complexity
that consumers face creating and managing their passwords, user names and other
credentials. F-Secure Key is available for all consumer devices. Data is stored
locally on the device, or when synced between devices, it's safe in our
private, Europe-based cloud.
F-Secure also launched App Permissions in November. App Permissions informs the
user about the apps installed on their mobile device and which of the user's
private information those apps have access to. The tool helps the user to gain
control over sharing their private data with third parties.
The Company marked a series of consumer security portfolio expansions. To
ensure that consumers remain protected regardless of which device they use,
F-Secure's multi-device security offering Safe Anywhere now supports Windows
Phone 8 devices in addition to all other key operating systems (Windows, Mac,
Android, iOS). Safe Anywhere also now incorporates Safe Search capabilities,
which protects the user from malicious links in search results.
In October, the Company pre-launched younited for consumers, gaining intense
interest among both users and the media with the new solution. With younited,
users always have access to their music, pictures, videos and other digital
content on their mobile phone, computer, or tablet. It syncs and backs up their
files to one safe place. Users can view, share and organize all their content
from any device, and enjoy an easy-to-use interface. Younited will be launched
later this year for SMB customers (more information http://www.younited.com/).
All the new and enhanced products have been well received by the audience, and
are powered by F-Secure's safe European cloud.
Risks and uncertainties
Uncertainty in the economic environment may impact the growth of broadband
connections, operators' willingness to invest in new services and may create
pricing pressure. These may have a negative impact on F-Secure's security and
content cloud sales.
F-Secure's risks and uncertainties are related to, among other things, the
competitiveness of F-Secure's product portfolio, competitive dynamics in the
industry, market fluctuations, pricing models (e.g. free services, cost of
content cloud services), impact of changes in technology, timely and successful
commercialization of complex technologies and new products and solutions, the
ability to protect intellectual property (IPR) in F-Secure's solutions as well
as the use of third party technologies on reasonable commercial terms,
subcontracting relationships, regional development in new growth markets,
sustainability of partner relationships, compromising stored personal data,
service quality related penalties, and risk exposure from increasing
contractual liability requirements and forming of the new business areas.
Events after period-end
In January 2014, the Company started consultation procedures at F-Secure SDC
(France). The legacy online-backup product will reach its end of life as
planned, and new next-generation content cloud products require less delivery
activity. This leads to reorganizing of operations in F-Secure SDC (France) and
may impact up to 22 positions.
Personnel and Organization
F-Secure's personnel totaled 939 at the end of year (931).
Currently, the Leadership Team consists of the following persons: Christian
Fredrikson (President and CEO), Samu Konttinen (Consumer Security Business and
interim Customer and Market Operations), Timo Laaksonen (Content Cloud
Business), Johanna Orjatsalo (Human Resources & Facilities), Pirkka Palomäki
(Chief Strategy Officer), Jari Still (R&D Operations), Pekka Usva (Corporate
Security Business) and Taneli Virtanen (Chief Financial Officer).
Financing and Capital Structure
Cash flow from operations for the year was 28.5 million positive (25.6m
positive). The change of net cash was 15.2 million positive (5.2 m positive)
including paid dividend of 9.3 million (9.3m) in April. Net financial income
was negative at 0.7 million (negative 0.3m).
The market value of the liquid assets of F-Secure at the end of the quarter was
47.7 million (33.1m). Changes in exchange rates, especially USD, JPY and BRL,
impacted negatively on sales and positively on costs.
The Company's capital expenditure for the year was 3.7 million (10.3m). The
capitalized development expenses were 0.3 m (4.9m).
F-Secure's financial position remained solid. F-Secure's equity ratio at the
end of the quarter was 74% (73%) and gearing ratio was 66% negative (51%
negative).
Taxation
Finnish tax authorities have changed their interpretation of the right to
deduct paid withholding tax in some countries. Thus, the Company has been
obligated to pay previously approved withholding tax from 2012. This applies
also to the financial year 2013. The Company clarifies the opportunities to
avoid double taxation. In addition, the reduction of corporate tax rate in
Finland increased booked tax in 2013 while reducing calculative tax
receivables. As a consequence, the Company booked extra tax of 3.7 million
resulting the tax rate of 37 % in 2013 (29 % in 2012).
Shares, Shareholders' Equity, Own Shares and Option Programs
The total number of Company shares is currently 158,798,739. The Company's
registered shareholders' equity is EUR 1,551,311.18. Currently, the Company
holds 3.036.244 own shares after granting 379.591 shares in January based on
LTI programs (see stock exchange release on January 16, 2014). The Company does
not have any warrant program.
Corporate Governance
F-Secure complies with the Corporate Governance recommendations for publicly
listed companies published by the Securities Market Association, a body
established by the Confederation of Finnish Industries EK, the Central Chamber
of Commerce and NASDAQ OMX Helsinki Ltd., as explained on F-Secure's web pages.
F-Secure published its corporate governance statement for 2012 in the Annual
Report and on the Company website in March 2013.
Market Overview
The software business continues to be in transition. The Software-as-a-Service
business model and cloud-based delivery are rapidly disrupting the traditional
way of doing business. The changes are also visible in the device markets.
While PCs continue to play an important role in the device landscape,
especially in business use, the majority of the growth in new device sales will
come from post-PC mobile devices; i.e. tablets, smartphones and other Internet
connected devices. The proliferation of cloud storage, private and personal
clouds to store and share data is now taking place. Gartner predicts that the
reign of the personal computer as the sole corporate access device is coming to
a close, and by 2014, the personal cloud will replace the personal computer at
the center of users' digital lives.
Worldwide PC shipments have decreased seven consecutive quarters (Q4 2013).
Consumers' shift from PCs to tablets for daily content consumption continued to
decrease the installed base of PCs both in mature as well as in emerging
markets. Tablet computers and smartphones are becoming the most dominant form
of devices on the market though the highest growth is passed, according to IDC
(December 2013).
The growing variety of connected devices and services create increasing
complexity for both business and individuals. The threat landscape is becoming
more sophisticated and threats to online security have grown and evolved
considerably. Online criminals are following users to social media and mobile
devices. And in addition to traditional malware, governmental surveillance and
espionage is a reality. After Snowden's revelations, people and corporations
have become much more security and privacy sensitive and the need for security
is even more pronounced.
Overall the security software market is about $20 billion in size and growing,
the consumer security software market is growing to be about a $6 billion
market by 2016 ($4.3 billion in 2012), and the mobile security software market
is growing almost at 40% per year over the next four years (Gartner, Jan 2013).
The market landscape for security software technology will change. Based on
several industry analyst estimates, the Software as a Service (SaaS) business
model is expected to continue to grow strongly and to gain more market share
over traditional license sales. By 2015, 10 percent of overall IT security
enterprise product capabilities will be delivered in the cloud, according to
Gartner (April 2013). The analyst firm expects the cloud-based security
services market to reach $4.2 billion by 2016. In today's world consumers and
companies are looking for products that are simple to use, user friendly,
engaging and also keep their data safe. The personal cloud business opportunity
is emerging. In 2011, Forrester already estimated that this market would reach
$12 billion by 2016, based on subscriber growth and new business models.
F-Secure is in a great position to capture the opportunity in the growing
security and personal cloud market, with its extensive security heritage
developed over the past 25 years. The Company's strong commitment to data
privacy also derives from its roots in Finland, where privacy is protected by
law.
Long-term Objectives and Strategy Summary for 2014 -16
F-Secure has revised its strategy. The Company is focusing on cloud-based
initiatives to serve and protect the post-PC era multi-device environment. The
new strategy is built on following three trends that are changing the security
market:
Mobility and new devices. The vast growth of post-PC devices is changing the
traditional way of using the Internet. In this new world protecting the
irreplaceable, in the form of digital memories, privacy, reputation and time,
is even more relevant than protecting just physical devices.
Cloudification. In the future, most of the data and services will be in the
cloud - or rather, many clouds. This means there will be an opportunity to
solve both the security and usability challenges that people and businesses
have using many clouds, as well as to deliver products and services, including
security, from the cloud.
Consumerization and BYOD. Software products and apps that consumers love and
adopt are finding their way to the corporate stage, and products made for
corporate use are expected to exhibit the same user-friendliness and simplicity
people have come to expect from consumer products. The needs and wants for both
hardware and software are, in many cases, the same regardless if the use is
personal or professional in nature.
Based on the Company's strong technology assets, foresight on the security
landscape and customer insights, F-Secure is continuing to create new
innovative products and business models. The Company will increasingly use the
cloud for powering existing PC and mobile security products and develop new
products that are fully cloud-based. The cloud is a scalable way to cover
security of the ever-growing variety of devices. In 2013, F-Secure launched a
new cloud-based security product, Freedome, as well as a personal cloud
product, younited that put users in control of their digital lives.
The Company will focus primarily on small and medium size businesses and
consumers by leveraging its current channels. F-Secure has a strong
relationship and solid track record of doing business with over 200 operator
partners that serve hundreds of millions consumers and businesses in over 40
countries. The Company has thousands of resellers providing services to
businesses. F-Secure has built direct to consumer -capability to drive
revenues, to get customer insight directly from consumers for co-creation
purposes and to build brand awareness globally.
The Company will increase its investments in sales and marketing activities to
enforce its brand and expand its geographical presence. The investments in
direct business, social media, viral marketing and sales, will strengthen the
brand and product awareness and support the expansion in small-and-medium sized
businesses segments. F-Secure will also broaden its partner network.
During the strategy period 2014-2016, the Company aims to grow the overall
subscriber base by tens of millions of users and seeks accelerating revenue
growth. The subscriber growth will contribute to both brand recognition and
revenues. The growth is expected to come from the western hemisphere and
emerging markets like Latin America and the APAC. As the Company invests in
growth, the relative profitability remains at its current level and longer-term
profitability continues to be driven by revenue growth and scalable operations.
Outlook for 2014
Investments during 2014 focus on acquiring a significant subscriber base and
bringing new cloud-based initiatives successfully to the market. Traditional PC
security sales through operator partners, resellers and web sales is expected
to improve slightly, driven by Safe Avenue, which combines PC and mobile
security. Geographically, Latin America is expected to continue as a growth
driver. New cloud-based products are expected to contribute to growth towards
the year's end. Content cloud sales in the form of F-Secure's younited product
are expected to develop favorably through operators, consumers, and small and
medium business users. Next generation security products, like the recently
launched Freedome for consumers, are soon to be launched for small and medium
business as well, and are expected to change the security market.
The growth is expected to come especially from annual subscriptions of security
and content cloud products. As a consequence, estimated sales growth is higher
than revenue growth in 2014 while deferred revenues increase due to periodising
of subscription sales.
The company expects overall one-off costs to be less than 3 million related to
efficiency improvements and reorganization in F-Secure SDC (France).
The management's estimation for the year is the following; the annual revenue
is estimated to grow from 2013 with stronger second half. The annual
profitability is estimated to be around 15% of revenues excluding above
mentioned one-off costs.
The revenue estimate is based on the sales pipeline at the time of publishing,
existing subscriptions and support contracts as well as current exchange rates.
The Company continues to prioritize growth over short-term profitability and
plans to invest the majority of the improved earnings in growth opportunities
in its core business.
Signing of the annual report and proposals to the Annual General Meeting
The Board of Directors will sign the annual report on February 13. The Company
will on that date publish the proposals to the AGM. The Company's dividend
policy is to pay approximately half of its profits as dividends. Subject to
circumstances, the company may deviate from this policy.
News conference today at 11 am
A news conference for analysts and press is arranged today, February 5th, at 11
am Finnish time at F-Secure's Headquarters, address: Tammasaarenkatu 7,
Ruoholahti, Helsinki. At the news conference, President & CEO Christian
Fredrikson will present the Q4 financial results.
An online meeting for international investors and analysts will be held (in
English) on the same day at 1.00 p.m. (EET). To participate in the online
meeting, click on the link below:
https://meet.F-Secure.com/gia.forsman-harkonen/8PTPSYB1
To participate in the online meeting through phone, please dial in to
+358975110100. Conference ID is 2012350.
The webinar will be organized through Lync to enable a better experience with
video and presentation also for the international investors and analysts. If
you have not used Lync before, need to download and install it, or need more
advice on how to use it, please visit
http://r.office.microsoft.com/r/rlidOC10?clid=1033&p1=4&p2=1041&pc=oc&ver=4&subv
er=0&bld=7185&bldver=0
It is possible to participate through the Lync web application, but please note
that this will not have sound and it is necessary to also call in to the
meeting via phone.
The Q4 financial results presentation material, including a video where
Christian Fredrikson will present Q4 results, will be available on our
Investors web pages at www.f-secure.com under About F-Secure, Investors before
the call begins.
Financial calendar for 2014
F-Secure Corporation will publish its interim reports during 2014 as follows.
Interim Report for Q12014 - April 24, 2014
Interim Report for Q22014 - July 24, 2014
Interim Report for Q32014 - October 23, 2014
The Board's proposals to the Annual General Meeting will be published on
February 13, 2014. The Annual Report for 2013 will be published on the
company's website latest during the week 11, 2014. The Annual General Meeting
is scheduled to be held on Thursday, April 3, 2014. The Board of Directors will
summon the meeting at the later date.
F-Secure Corporation
Additional information
F-Secure Corporation
Christian Fredrikson, President and CEO
tel. +358 9 2520 0700
Taneli Virtanen, CFO
tel. +358 9 2520 5655
This interim report is prepared in accordance with IAS 34 standard Interim
Financial Reporting and with accounting principles stated in the annual report
2012.
Key figures (unaudited):
------------------------------------------------------------
(EUR million)
------------------------------------------------------------
INCOME STATEMENT 2013 2012 2013 Change 2012
------------------------------------------------------------
10-12 10-12 1-12 % 1-12
------------------------------------------------------------
Revenues 40.0 40.1 155.1 -1 157.2
------------------------------------------------------------
Cost of revenues 2.1 1.8 7.0 -5 7.4
------------------------------------------------------------
Gross margin 37.9 38.3 148.1 -1 149.7
------------------------------------------------------------
Other operating income 0.9 0.3 2.7 54 1.8
------------------------------------------------------------
Sales and marketing 17.6 19.6 73.6 4 70.9
------------------------------------------------------------
Research and development 10.4 15.8 41.7 -15 49.3
------------------------------------------------------------
Administration 2.1 2.7 8.4 -23 11.0
------------------------------------------------------------
Operating result 8.8 0.4 27.1 34 20.3
------------------------------------------------------------
Financial net -0.1 0.1 -0.7 -0.3
------------------------------------------------------------
Result before taxes 8.7 0.5 26.3 19.9
------------------------------------------------------------
Income taxes -4.1 -0.8 -9.9 -5.8
------------------------------------------------------------
Result for the period 4.6 -0.3 16.5 14.1
------------------------------------------------------------
Other comprehensive income:
--------------------------------------------------------------------------------
Exchange diff. on translating -0.1 0.1 -0.1 0.2
foreign operations
--------------------------------------------------------------------------------
Available-for-sale fin. assets 0.2 -0.1 0.1 0.1
--------------------------------------------------------------------------------
Income tax rel. to components of other comprehensive 0.0 0.0 0.0 0.0
income
--------------------------------------------------------------------------------
Total compr. income (owners) 4.7 -0.3 16.5 14.3
--------------------------------------------------------------------------------
Earnings per share, EUR 0.03 0.0 0.11 0.09
--------------------------------------------------------------------------------
EPS diluted, EUR 0.03 0.0 0.11 0.09
--------------------------------------------------------------------------------
BALANCE SHEET 31/12/2013 31/12/2012
ASSETS
-----------------------------------------------------------
Intangible assets 16.8 20.8
-----------------------------------------------------------
Tangible assets 8.3 9.8
-----------------------------------------------------------
Goodwill 19.4 19.4
-----------------------------------------------------------
Other financial assets 4.4 5.4
-----------------------------------------------------------
Non-current assets total 49.0 55.4
-----------------------------------------------------------
Inventories 0.3 0.2
-----------------------------------------------------------
Other receivables 39.5 38.4
-----------------------------------------------------------
Available-for-sale financial assets 25.7 16.8
-----------------------------------------------------------
Cash and bank accounts 22.2 16.5
-----------------------------------------------------------
Current asset total 87.7 71.9
-----------------------------------------------------------
Total 136.6 127.3
-----------------------------------------------------------
SHAREHOLDERS' EQUITY 31/12/2013 31/12/2012
AND LIABILITIES
-----------------------------------------------------
Equity 72.8 65.1
-----------------------------------------------------
Other non-current 0.4 0.4
-----------------------------------------------------
Provisions 0.0 0.1
-----------------------------------------------------
Deferred revenues 9.2 8.5
-----------------------------------------------------
Non-current liabilities total 9.5 9.1
-----------------------------------------------------
Other current 24.8 23.9
-----------------------------------------------------
Deferred revenues 29.6 29.3
-----------------------------------------------------
Current liabilities total 54.3 53.2
-----------------------------------------------------
Total 136.6 127.3
-----------------------------------------------------
CASH FLOW STATEMENT 31/12/2013 31/12/2012
----------------------------------------------------------------------
Cash flow from operations 28.5 25.6
----------------------------------------------------------------------
Cash flow from investments -4.0 -11.1
----------------------------------------------------------------------
Cash flow from financing -9.3 -9.3
activities 1)
----------------------------------------------------------------------
Change in cash 15.2 5.2
----------------------------------------------------------------------
Cash and bank at 1 Jan 32.4 27.8
----------------------------------------------------------------------
Change in net fair value of Available-for-sale 0.1 0.1
----------------------------------------------------------------------
Cash and bank at end of period 47.7 33.1
----------------------------------------------------------------------
Statement of changes in shareholders' equity
Share Share Unrestr. Treasur Retaine Assets Tranl. Total
ca-pit prem. equity y d avail. diff
al fund reserve shares earning f.sale
s
--------------------------------------------------------------------------------
Equity 1.6 0.2 5.1 -8.4 66.5 0.2 65.1
on:
31.12.201
2
--------------------------------------------------------------------------------
Total 16.5 0.1 -0.1 16.5
comprehen
sive
income
for the
year
--------------------------------------------------------------------------------
Dividend -9.3 -9.3
--------------------------------------------------------------------------------
Cost of 0.6 -0.2 0.4
share
based
payments
--------------------------------------------------------------------------------
Equity on 1.6 0.2 5.1 -7.8 73.5 0.3 -0.1 72.8
31.12.201
3
--------------------------------------------------------------------------------
NOTES
1. Cash flow from financing
Dividend for year 2012 0.06 euro per share totaling 9.322.974.24 euro was paid
on 16th April 2013. In 2012 paid dividend totaled 9.303.980.94 euro.
Key ratios 2013 2012
---------------------------------------------
12 m 12 m
---------------------------------------------
Operating result % of revenues 17.5 12.9
---------------------------------------------
ROI % 40.9 34.9
---------------------------------------------
ROE % 24.9 22.6
---------------------------------------------
Equity ratio. % 74.3 72.7
---------------------------------------------
Debt-to-equity ratio % -65.6 -50.9
---------------------------------------------
Earnings per share, EUR 0.11 0.09
---------------------------------------------
Earnings per share diluted, EUR 0.11 0.09
---------------------------------------------
Shareholders' equity 0.46 0.41
per share, EUR
---------------------------------------------
P/E ratio 17.6 17.1
---------------------------------------------
Capitalized expenditures, MEUR 3.7 10.3
---------------------------------------------
Contingent liabilities, MEUR 12.2 15.6
---------------------------------------------
Personnel average 949 970
---------------------------------------------
Personnel end of period 939 931
---------------------------------------------
Segment information
The Group has only one segment; data security.
Quarterly development 1/12 2/12 3/12 4/12 1/13 2/13 3/13 4/13
----------------------------------------------------------------------
Revenues 38.4 39.6 39.1 40.1 38.4 38.4 38.3 40.0
----------------------------------------------------------------------
Cost of revenues 1.9 2.1 1.7 1.8 1.7 1.8 1.5 2.1
----------------------------------------------------------------------
Gross margin 36.5 37.5 37.4 38.3 36.7 36.6 36.8 37.9
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Other operating income 0.3 0.5 0.6 0.3 0.8 0.7 0.3 0.9
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Sales and marketing 16.9 17.9 16.4 19.6 18.4 19.8 17.8 17.6
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Research and 11.5 11.4 10.6 15.8 10.7 11.1 9.5 10.4
development
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Administration 3.0 2.9 2.3 2.7 2.5 2.4 1.5 2.1
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Operating result 5.4 5.8 8.6 0.4 5.9 4.0 8.4 8.8
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Financial net -0.2 -0.1 -0.1 0.1 0.1 -0.2 -0.6 -0.1
----------------------------------------------------------------------
Result before taxes 5.2 5.7 8.5 0.5 6.0 3.8 7.8 8.7
----------------------------------------------------------------------
Geographical information
Revenue 10-12/2013 10-12/2012 1-12/2013 1-12/2012
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Nordic countries 12.9 12.0 47.5 47.9
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Rest of Europe 17.8 18.4 70.0 71.2
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North America 4.4 4.2 17.8 15.9
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Rest of the world 4.9 5.5 19.8 22.2
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Total 40.0 40.1 155.1 157.2
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Fair values
The carrying amounts of the Group's financial instruments are equivalent to
fair values.
Assets measured at fair value Total Level 1 Level 2 Level 3
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Available-for-sale financial assets 31.12.2013 25.7 25.6 0.0 0.1
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Available-for-sale financial assets 31.12.2012 16.8 16.7 0.0 0.1
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