WithSecure publishes restated financial information for its continuing operations for 2021

WithSecure Corporation, Stock Exchange Release, 16 May 2022, at 8:00 EEST

WithSecure publishes restated financial information for its continuing operations for 2021

As announced in a stock exchange release on 17 February 2022, the Board of Directors of WithSecure Corporation (“WithSecure”) decided to pursue towards the separation of the Consumer Security business through a partial demerger (the “Demerger”), whereby WithSecure’s Consumer Security business would be transferred into a new independent company, to be named F-Secure Corporation (“F-Secure”), whereas the renamed WithSecure Corporation would carry on the Corporate Security business. The demerger is subject to an approval by an Extraordinary General Meeting of 31 May. The planned completion date of the demerger is 30 June 2022.

Reflecting the progress of the demerger plans, WithSecure presents consumer security business as Discontinued operations under IFRS 5 from first quarter of 2022.

WithSecure publishes restated quarterly financial information on its 2021 financials. These financials constitute comparative information for WithSecure Corporation when Consumer Security business ("F-Secure") is presented as discontinued operations. Financial information for discontinued operations does not reflect future F-Secure's profitability on a stand-alone basis.

Under IFRS 5, the result from discontinued operations is reported separately from continuing operations’ income and expenses in the consolidated income statement. Comparative periods are restated accordingly. The statement of financial position is not restated.

Discontinued operations include revenue and operating expenses directly related to Consumer Security business and discontinued for continuing business after the demerger. Certain costs related to supporting F-Secure during transition period and costs of premises which will be sub-leased to F-Secure are not included in Discontinued operations. To improve comparability between periods, Estimated comparable EBITDA has been added as alternative performance measure. Presentation of WithSecure and F-Secure in accordance with IFRS 5 does not reflect profitability of either continuing or discontinued business on a stand-alone basis prior to the demerger.

The restated financial information is unaudited.

Restated income statement, continuing operations (WithSecure)

  Restated
Income statement 1-3/2021 4-6/2021 7-9/2021 10-12/2021 1-12/2021
Revenue 31,5 31,9 32,1 34,5 130,0
Cost of revenue -10,1 -10,2 -10,1 -11,1 -41,5
Gross margin 21,4 21,7 22,0 23,4 88,5
Other operating income 0,4 0,4 0,3 1,3 2,5
Sales and marketing -17,4 -18,7 -17,6 -19,6 -73,3
Research and development -7,3 -7,7 -7,7 -9,3 -32,1
Administration -3,3 -4,3 -3,1 -5,0 -15,7
EBIT -6,3 -8,6 -6,1 -9,2 -30,1
Financial net 0,3 -0,4 -0,2 0,0 -0,3
Result before taxes -6,0 -9,0 -6,3 -9,2 -30,5
Income taxes 0,9 1,6 1,3 1,3 5,0
Result for the period -5,1 -7,5 -5,0 -7,9 -25,5
           
Other comprehensive income          
Exchange differences on translating foreign operations 4,4 -0,1 -1,0 0,6 3,9
Total comprehensive income (parent company owners) -0,7 -7,6 -6,0 -7,3 -21,6

Restated income statement, discontinued operations (F-Secure)

  Restated
Income statement 1-3/2021 4-6/2021 7-9/2021 10-12/2021 1-12/2021
Revenue 26,3 26,3 26,5 27,1 106,3
Cost of revenue -2,1 -2,1 -2,3 -2,6 -9,1
Gross margin 24,1 24,3 24,3 24,5 97,2
Other operating income 0,0 0,1 0,1 0,2 0,3
Sales and marketing -6,3 -6,7 -6,2 -6,8 -25,9
Research and development -3,7 -3,5 -3,3 -4,0 -14,5
Administration -1,8 -3,2 -1,6 -2,6 -9,3
EBIT 12,4 10,9 13,3 11,2 47,8
Financial net 0,0 0,1 0,0 0,0 0,1
Result before taxes 12,4 11,1 13,2 11,2 47,9
Income taxes -2,4 -2,2 -2,6 -2,5 -9,8
Result for the period 10,0 8,9 10,6 8,7 38,2
           
Other comprehensive income          
Exchange differences on translating foreign operations 0,0 0,0 -0,1 0,1 0,1
Total comprehensive income (parent company owners) 10,0 8,9 10,5 8,8 38,3

Restated cash flows, discontinued operations (F-Secure)

  Restated
Cash flow 1-3/2021 4-6/2021 7-9/2021 10-12/2021 1-12/2021
Net cash flow from operating activities 5,5 13,2 7,0 14,4 40,2
Net cash flow from investing activities -0,2 -0,5 -0,4 -0,6 -1,6
Net cash flow from financing activities 0,0 0,0 -0,1 0,0 -0,2

Restated disaggregation of revenue, continuing operations (WithSecure)

  Restated
By sales channels 1-3/2021 4-6/2021 7-9/2021 10-12/2021 1-12/2021
Corporate security          
Cloud-native solutions 11,8 12,7 13,5 14,7 52,7
On-premise solutions 7,7 7,5 7,4 7,4 30,0
Cyber security consulting 12,0 11,6 11,2 12,4 47,2
Total revenue 31,5 31,9 32,1 34,5 130,0
            
  Restated
By geographical area 1-3/2021 4-6/2021 7-9/2021 10-12/2021 1-12/2021
Nordic countries 10,2 10,2 8,9 11,0 40,3
Rest of Europe 13,4 13,8 13,7 14,2 55,1
North America 2,2 2,1 3,0 2,7 10,0
Rest of the world 5,6 5,7 6,7 6,6 24,6
Total revenue 31,5 31,9 32,1 34,5 130,0

Restated disaggregation of revenue, discontinued operations (F-Secure)

  Restated
By sales channels 1-3/2021 4-6/2021 7-9/2021 10-12/2021 1-12/2021
Consumer security          
Partner channel 20,8 20,8 21,0 21,6 84,2
Direct channel (E-commerce) 5,5 5,5 5,5 5,5 22,1
Total revenue 26,3 26,3 26,5 27,1 106,3
           
  Restated
By geographical area 1-3/2021 4-6/2021 7-9/2021 10-12/2021 1-12/2021
Nordic countries 9,1 9,1 9,3 9,4 36,9
Rest of Europe 12,6 12,4 12,3 12,5 49,6
North America 3,4 3,6 3,7 3,8 14,6
Rest of the world 1,2 1,2 1,3 1,4 5,2
Total revenue 26,3 26,3 26,5 27,1 106,3

Alternative performance measures

WithSecure has included certain non-IFRS based alternative performance measures (APM). Alternative performance measures are provided to reflect the underlying business performance, and to exclude certain non-operational or non-cash valuation items affecting comparability (IAC). The aim is to improve comparability, and alternative performance measures should not be regarded as substitutes for IFRS based measures. Alternative performance measures include EBITDA, adjusted EBITDA, estimated comparable EBITDA and adjusted EBIT. Depreciations, amortization and impairments are excluded from EBITDA. Also, the adjusted EBITDA and adjusted EBIT exclude IACs which are material items outside the normal course of business. These items are associated with acquisitions, integration costs, gains and losses from the sale of businesses and other items affecting comparability.

Presentation of WithSecure and F-Secure in accordance with IFRS 5 standard does not reflect profitability of either business on a stand-alone basis. Estimated comparable EBITDA is presented as APM for profitability to improve comparability between periods. Estimated comparable EBITDA excludes (for Discontinued operations: includes) activities related to research and development, and cost of facilities held by WithSecure.

  

Restated reconciliation of alternative performance measures, continuing operations (WithSecure)

  Restated
EBITDA 1-3/2021 4-6/2021 7-9/2021 10-12/2021 1-12/2021
Estimated comparable EBITDA -1,5 -4,0 -1,6 -4,1 -11,3
Adjustments to adjusted EBITDA          
Research and development -1,2 -1,1 -1,1 -0,9 -4,4
Facilities held by WithSecure -0,4 -0,4 -0,4 -0,4 -1,6
Adjusted EBITDA -3,2 -5,5 -3,1 -5,5 -17,2
Adjustments to EBITDA          
Divestments       0,5 0,5
Strategy          
EBITDA -3,2 -5,5 -3,1 -4,9 -16,7
Depreciation, amortization and impairment losses -3,1 -3,1 -3,0 -4,3 -13,4
EBIT -6,3 -8,6 -6,1 -9,2 -30,1
           
  Restated
EBIT 1-3/2021 4-6/2021 7-9/2021 10-12/2021 1-12/2021
Adjusted EBIT -5,5 -7,8 -5,4 -8,0 -26,8
Adjustments to EBIT          
PPA amortization -0,8 -0,7 -0,7 -0,7 -2,8
Impairment       -1,0 -1,0
Divestments       0,5 0,5
Strategy          
EBIT -6,3 -8,6 -6,1 -9,2 -30,1

Restated reconciliation of alternative performance measures, discontinued operations (F-Secure)

  Restated
EBITDA 1-3/2021 4-6/2021 7-9/2021 10-12/2021 1-12/2021
Estimated comparable EBITDA 11,2 12,2 12,6 11,9 47,8
Adjustments to adjusted EBITDA          
Research and development 1,2 1,1 1,1 0,9 4,4
Facilities held by WithSecure 0,4 0,4 0,4 0,4 1,6
Adjusted EBITDA 12,8 13,7 14,1 13,2 53,7
Adjustments to EBITDA          
Strategy   -2,3 -0,4 -1,5 -4,3
EBITDA 12,8 11,4 13,7 11,6 49,5
Depreciation, amortization and impairment losses -0,4 -0,4 -0,4 -0,4 -1,6
EBIT 12,4 10,9 13,3 11,2 47,8
             
  Restated
EBIT 1-3/2021 4-6/2021 7-9/2021 10-12/2021 1-12/2021
Adjusted EBIT 12,4 13,2 13,7 12,7 52,1
Adjustments to EBIT          
Strategy   -2,3 -0,4 -1,5 -4,3
EBIT 12,4 10,9 13,3 11,2 47,8

Restated key ratios and other key figures, continuing operations (WithSecure)

  Restated
Profitability 1-3/2021 4-6/2021 7-9/2021 10-12/2021 1-12/2021
Revenue 31,5 31,9 32,1 34,5 130,0
Cloud-native corporate security solutions 11,8 12,7 13,5 14,7 52,7
On-premise corporate security solutions 7,7 7,5 7,4 7,4 30,0
Cyber security consulting 12,0 11,6 11,2 12,4 47,2
Gross margin 21,4 21,7 22,0 23,4 88,5
Gross margin, % of revenue 68,0% 68,1% 68,5% 67,8% 68,1%
Operating expenses -28,0 -30,7 -28,4 -33,9 -121,0
Operating expenses for adjusted EBITDA -24,9 -27,6 -25,4 -29,6 -107,6
Adjustment to other income       0,5 0,5
Adjusted EBITDA -3,2 -5,5 -3,1 -5,5 -17,2
Adjusted EBITDA, % of revenue -10,1% -17,3% -9,6% -15,8% -13,3%
EBITDA -3,2 -5,5 -3,1 -4,9 -16,7
EBITDA, % of revenue -10,1% -17,3% -9,6% -14,2% -12,8%
Adjusted EBIT -5,5 -7,8 -5,4 -8,0 -26,8
Adjusted EBIT, % of revenue -17,6% -24,6% -16,8% -23,2% -20,6%
EBIT -6,3 -8,6 -6,1 -9,2 -30,1
EBIT, % of revenue -20,0% -26,9% -18,9% -26,6% -23,2%
Estimated combarable EBITDA -1,5 -4,0 -1,6 -4,1 -11,3
Estimated combarable EBITDA, % of revenue -4,9% -12,6% -5,0% -12,0% -8,7%

Restated key ratios and other key figures, discontinued operations (F-Secure)

  Restated
Profitability 1-3/2021 4-6/2021 7-9/2021 10-12/2021 1-12/2021
Revenue 26,3 26,3 26,5 27,1 106,3
Partner channel 20,8 20,8 21,0 21,6 84,2
Direct channel (e-commerce) 5,5 5,5 5,5 5,5 22,1
Adjusted EBITDA 12,8 13,7 14,1 13,2 53,7
% of revenue 48,7 % 51,9 % 53,0 % 48,6 % 50,6 %
EBIT 12,4 10,9 13,3 11,2 47,8
EBIT, % of revenue 47,3 % 41,6 % 50,0 % 41,3 % 45,0 %
Estimated combarable EBITDA 11,2 12,2 12,6 11,9 47,8
Estimated combarable EBITDA, % of revenue 42,6 % 46,2 % 47,5 % 43,7 % 45,0 %

Calculation of key figures

Equity ratio, % Total equity      
  Total assets – deferred revenue    
         
ROI, % Result before taxes + financial expenses (annualized)  
  Total assets - non-interest bearing liabilities (average)  
         
ROE, % Result for the period (annualized)    
  Total equity (average)      
         
Gearing, % Interest bearing liabilities - cash and bank and financial asset through profit and loss
  Total equity        
Earnings per share, EUR Profit attributable to equity holders of the company  
  Weighted average number of outstanding shares    
         
Shareholders' equity per share, EUR Equity attributable to equity holders of the company  
  Number of outstanding shares at the end of period    
         
Operating Expenses Sales and marketing, research and development, and administration costs  
         
EBITDA EBIT + Depreciation, amortization and impairment    
         
EBITA EBIT + Amortization and impairment    

Contact information:

Laura Viita, Investor Relations Director, WithSecure Corporation +358 50 487 1044 investor-relations@withsecure.com

Attachment

  • IFRS5 restatement ENG
F-secure Oyj (LSE:0EIE)
Gráfica de Acción Histórica
De Jul 2022 a Ago 2022 Haga Click aquí para más Gráficas F-secure Oyj.
F-secure Oyj (LSE:0EIE)
Gráfica de Acción Histórica
De Ago 2021 a Ago 2022 Haga Click aquí para más Gráficas F-secure Oyj.