SYMC_FAD_2008_Webcast_Final

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  • 1. 2008 Financial Analyst Meeting June 12, 2008
  • 2. Welcome Helyn Corcos, Vice President June 12, 2008
  • 3. Forward Looking Statements • This presentation contains statements regarding our financial and business results, which may be considered forward-looking within the meaning of the U.S. federal securities laws, including statements relating to projections of future revenue, earnings per share, deferred revenue and cash flow from operations, as well as projections of amortization of acquisition-related intangibles and stock- based compensation and restructuring charges. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied in this press release. Such risk factors include those related to: maintaining customer and partner relationships; the anticipated growth of certain market segments, particularly with regard to security and storage; the competitive environment in the software industry; changes to operating systems and product strategy by vendors of operating systems; fluctuations in currency exchange rates; the timing and market acceptance of new product releases and upgrades; the successful development of new products and integration of acquired businesses, and the degree to which these products and businesses gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release. Additional information concerning these and other risk factors is contained in the Risk Factors section of our Form 10-K for the year ended March 28, 2008. We assume no obligation to update any forward-looking information contained in this presentation. Financial Analyst Day 2008 3
  • 4. Use of Non-GAAP Financial Information • Our results of operations have undergone significant change due to a series of acquisitions, the impact of SFAS 123(R) and other corporate events. To help our readers understand our past financial performance and our future results, we supplement the financial results that we provide in accordance with generally accepted accounting principles, or GAAP, with non-GAAP financial measures. The method we use to produce non- GAAP results is not computed according to GAAP and may differ from the methods used by other companies. Our non-GAAP results are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Investors are encouraged to review the reconciliation of our non-GAAP financial measures to the comparable GAAP results, which is attached to our quarterly earnings release and which can be found, along with other financial information, on the investor relations page of our Web site at www.symantec.com/invest. Financial Analyst Day 2008 4
  • 5. Symantec Objectives John Thompson, Chairman and CEO June 12, 2008
  • 6. Long-Term Growth Opportunities Mark Bregman, Chief Technology Officer June 12, 2008
  • 7. CTO Objectives • Align technology investments with company strategy • Explore longer term technology/product opportunities (SRL) • Drive standards efforts within and outside company • Support M&A activities • Deliver core shared technologies to product teams Financial Analyst Day 2008 7
  • 8. IT has Changed the Nature of Work From To Work Lifestyle quot;Organization Manquot; Free agent Bureaucracy Ad hocracy 9-to-5 24/7 Office and terminal Everywhere and everything Mind-numbing routine Terror-inducing novelty quot;Think globally, act locallyquot; quot;Act glocallyquot; Hierarchical command and control Self-organizing and regulating systems Source: Gartner, September 2005 Financial Analyst Day 2008 8
  • 9. Personal Technology Use Drives the Enterprise Crossing over into IT • IM, Skype, mashups, video, social networks Devices in Use and Shipped • Multiple devices Cell phones 3.25B in Use 3B 3B 2.8B • User frustration over non-integration 2.6B 2B Mobile phones out-ship PC’s 5:1 • High-bandwidth connectivity 1B 1B PC’s in Use • Automatic updates of Internet applications 893M 900M 800M 80% of world’s Smartphones population lives out-ship laptops & within cellular 700M are ½ of PC TAM coverage Smartphones Use of Non-Company Equipment 600M 574M In Use on Company Networks 45% 500M 2008 Smartphones 400M 382M 40% Nokia’s Shipped 2005 Estimate 300M 270M 250M 35% 217M 160M 200M Users 145M 30% 120M Laptops 100M 100M Shipped 80M 90M 25% 70M 20% 2006 2007 2008 2009 15% Employees Contractors Source: Gartner, September 2005 Financial Analyst Day 2008 9
  • 10. Implications • Consumers are becoming the route to the enterprise – The IT agenda is increasingly controlled by the influx of consumer devices, behaviors and services • This isn’t really a new phenomenon – Windows owns the enterprise because it first owned the home, and advances in mobile phones have been forcing IT to evolve Financial Analyst Day 2008 10
  • 11. Storage in the Cloud, Consumerized • Personal and corporate data get mixed when you use devices for both • Creates privacy concerns, intellectual Symantec Online Storage property value, legal discovery issues Personal Corporate Data Data Repository Repository Home or Corp Desktop Norton 360 + VPN extra copy + encryption Internet + rules and logic to segregate data and control apps Financial Analyst Day 2008 11
  • 12. Corporate Managed Consumer Desktop Secure, Reliable, High Performance • Retail version installed on existing OS Jane Doe’s Desktop • Foundation is application virtualization Corporate Applications & Data Data Corporate Online Services Applications – Software Streaming OS Image – Security Monitoring – Software Updates – Terminal Access to Home Desktop Internet Access to Corporate applications from any Computer Financial Analyst Day 2008 12
  • 13. More To Identity Than Identity • People – Complex attributes – Identity Proofing – Strong Authentication • Systems – Fingerprints – State and Policy • Digital objects – Content Awareness – Key Management Financial Analyst Day 2008 13
  • 14. Summary • Consumerization is transforming enterprise IT • Symantec’s leadership in data protection, endpoint security and management, and trusted position with consumers positions us to win Symantec Secures and Manages the World’s Information Financial Analyst Day 2008 14
  • 15. Strategy Overview Greg Hughes, Chief Strategy Officer June 12, 2008
  • 16. Chief Strategy Officer Objectives Corporate Drive a portfolio-based strategy for Symantec Strategy Corporate Align M&A agenda to Symantec’s corporate strategy Development New Business Incubate new businesses and business models Incubator Financial Analyst Day 2008 16
  • 17. Symantec’s Strategy To Secure and Manage the World’s Information Financial Analyst Day 2008 17
  • 18. Market Opportunity To Secure and Manage the World’s Information • New malicious code threats • Storage demand growing 6x increased 468% in CY07 from 2007-2011 • Third party data breaches • Unstructured data increasing increased over 90% from from 25% to 63% 2005-2007 Sources: IDC, Symantec Internet Security Threat Report, Ponemon Institute Financial Analyst Day 2008 18
  • 19. Portfolio Approach to Managing Assets Emerging Businesses Make focused investments for long-term growth SaaS Virtualization Cloud-Based Services High Growth Businesses Accelerate by leveraging core/franchises for near-term growth Archiving Data Loss Prevention Consumer Compliance Services Disk-based B/U Messaging Security Core/Franchise Businesses Strengthen market position & improve margins to grow earnings Endpoint Security Consumer Backup Storage Management & Management Security Financial Analyst Day 2008 19
  • 20. Focusing Our Investments Criteria for Investment 1. Are we leveraging a franchise? 2. How big is the market opportunity? 3. What is our competitive position? 4. What is our current traction? Exit Re-align Invest • APM • Services Business • AppStream • Storage Management • Huawei joint venture • Data Center Automation • SwapDrive Financial Analyst Day 2008 20
  • 21. Symantec’s Five Engines of Growth Grow our core/franchise businesses at, or above, 1 market growth rate Scale high growth businesses to contribute to 2 top-line growth Grow faster than the market in the world’s fast- 3 growing economies Seed longer term growth by exploiting 4 emerging trends Use M&A to complement our portfolio growth 5 strategy Financial Analyst Day 2008 21
  • 22. Grow Core/Franchise Businesses at or Above the Market Growth Rate Symantec Core Business Market Size ($ in billions) 14.0 3.9 11.0 Total Storage 3.2 Management 3.5 2.7 Backup 3.7 2.8 Consumer Security 2.9 Endpoint Security 2.3 2007 2011 Sources: IDC, Gartner Financial Analyst Day 2008 22
  • 23. Scale High Growth Businesses Over the Next 2-3 Years Market CAGRs 2007-2011 Consumer 12% Services Messaging 17% Security Compliance 20% Archiving 37% Data Loss 93% Prevention Sources: IDC, Gartner, Financial Analyst Day 2008 23
  • 24. Grow Faster than the Market in the Fastest Growing Economies of the World Symantec is growing faster than the market in these economies Sources: IDC Financial Analyst Day 2008 24
  • 25. Seed Longer-Term Growth by Exploiting Emerging Trends to Reduce Customers’ TCO Enterprise SMB Consumer Source: IDC, Credit Suisse, McKinsey Financial Analyst Day 2008 25
  • 26. Use M&A to Complement Our Portfolio Growth Strategy Objective Examples Enter new adjacent markets Emerging AppStream where we see significant Businesses innovation that is relevant to our mission Increase functionality of High Growth emerging businesses to drive Vontu Businesses top-line revenue and strengthen leadership positions Consolidate franchises and Core/Franchise Altiris augment with tuck-ins to grow Businesses SwapDrive market share and profitability Financial Analyst Day 2008 26
  • 27. Leveraging the Portfolio Emerging Businesses SaaS Virtualization Cloud-Based Services High Growth Businesses Consumer Services Archiving Data Loss Prevention Disk-based B/U Messaging Security Compliance Core/Franchise Businesses Storage Endpoint Security Consumer Backup Management & Management Security Financial Analyst Day 2008 27
  • 28. Leveraging the Portfolio: Backup Emerging Businesses Cloud-Based SaaS Virtualization Services High Growth Businesses Consumer Services Archiving Data Loss Prevention Disk-based B/U Messaging Security Compliance Core/Franchise Businesses Storage Endpoint Security Consumer Backup Management & Management Security Financial Analyst Day 2008 28
  • 29. Leveraging the Portfolio: Endpoint Security & Management Emerging Businesses Cloud-Based SaaS Virtualization Services High Growth Businesses Consumer Services Archiving Data Loss Prevention Disk-based B/U Messaging Security Compliance Core/Franchise Businesses Storage Endpoint Security Consumer Backup Management Security & Management Financial Analyst Day 2008 29
  • 30. Summary • As the demand for storage proliferates and the threat landscape becomes more sophisticated, the need to secure and manage the world’s information is greater than ever • Symantec has adopted a portfolio approach to leverage its unique set of market-leading assets • Symantec’s five engines of growth will enable sustained 8-12% growth Financial Analyst Day 2008 30
  • 31. Q&A John Thompson, Mark Bregman and Greg Hughes Financial Analyst Day 2007 31
  • 32. Operational Priorities Enrique Salem, Chief Operating Officer June 12, 2008
  • 33. Accelerating High Growth Businesses Francis deSouza, Senior Vice President June 12, 2008
  • 34. Today’s Challenge: Transforming Security From Inhibitor to Enabler Security (Today) Risk Based Approach Security (Yesterday) Protect Information and • Lock down systems Interactions • Keep the bad things out • Protect only infrastructure Manage the Insider Threat • Disparate and disconnected Standardize and Automate Processes Financial Analyst Day 2008 34
  • 35. A New Operational Model for Enterprise Security Operationalized Managed Policy-Driven Information-Centric Infrastructure IT Governance, Information Risk Infrastructure Risk and Management Protection and Compliance Management Financial Analyst Day 2008 35
  • 36. Policy Driven: IT Governance, Risk and Compliance Fully Integrated Control Compliance Scalable Suite Broad Platform Support Financial Analyst Day 2008 36
  • 37. Information-Centric: Information Risk Management Keep Manage and Find Things Keep The Bad The Important Retain The Easily When Things Out Things In Information Needed External Threat Archiving / Data Loss Electronic Protection Backup Prevention Discovery Financial Analyst Day 2008 37
  • 38. Information-Centric: Information Risk Management Keep Manage and Find Things Keep The Bad The Important Retain The Easily When Things Out Things In Information Needed Symantec Enterprise External Threat Archiving / Data Loss Electronic Mail Enterprise Vault Vontu Protection Backup Prevention Discovery Security Vault 8300 Vontu Financial Analyst Day 2008 38
  • 39. Data Loss Prevention (DLP) Integration Endpoint Data Center NBU BE EV Gateway Identify and control confidential data on endpoints Common data Outbound content classification filters at the Endpoint encryption for engines messaging gateway removable storage or full-disk encryption Financial Analyst Day 2008 39
  • 40. Archiving and Backup Integration Endpoint Data Center NBU BE EV Gateway Leverage Symantec’s Data Protection Assets NetBackup and Backup Exec agents for Enterprise Vault and integration with PureDisk for storage cost reduction Archive option for Backup Exec Financial Analyst Day 2008 40
  • 41. Systems Management Integration Endpoint Data Center NBU BE EV Gateway Altiris as the common platform for unified agent management Common Workflow Financial Analyst Day 2008 41
  • 42. Summary: Why Symantec Will Win Market Share Differentiated High Growth Large Market Leadership Capability Financial Analyst Day 2008 42
  • 43. Q&A Enrique Salem and Francis deSouza Financial Analyst Day 2007 43
  • 44. Enterprise Panel June 12, 2008
  • 45. Storage and Availability Management Rob Soderbery, Senior Vice President June 12, 2008
  • 46. Storage and Availability Management Overview Storage High Optimization Availability Objectives • Product and technology leadership Reliable, automated Multi-vendor app failover with non- optimized storage • Aligned R&D disruptive testing solutions strategy Standardization • Balanced focus on results Veritas Storage Foundation Veritas Cluster Server Veritas CommandCentral Standard software stack across all server and storage platforms Financial Analyst Day 2008 46
  • 47. Growth Driver: Align with IT Initiatives Xen • Utilization • Physical & Virtual • Tiered Services • Best on VMware VIRTUALIZATION GREEN IT ITIL • Standardization • Standardization • Disaster Recovery • Storage Service IT SERVICE DATA CENTER Architecture Management MANAGEMENT CONSOLIDATION Financial Analyst Day 2008 47
  • 48. Growth Driver: x86 in the Data Center Server Unit Shipment Growth • Symantec’s x86 2007 - 2011 Projected CAGR business – Exceeding market growth – Widening performance gap – High growth on VMware • New opportunity driver: x86 Xen in the data center – Veritas Virtual Infrastructure 1.0 Source: IDC, September 2007 Financial Analyst Day 2008 48
  • 49. Growth Driver: SaaS / Cloud Storage • Cloud storage opportunity: Exponential Growth of Unstructured Data – Leverage file system know-how to deliver next generation cloud • Enterprise content storage • Consumer generated content – Symantec Secure Scalable • Rich media Storage Emergence of • New opportunity driver: SPN SaaS Providers – Initial deployment for the Symantec Protection Network • Massive storage demands • New app architectures • Expect cloud paradigm Financial Analyst Day 2008 49
  • 50. Virtualization on the Endpoint Ken Berryman, Vice President June 12, 2008
  • 51. Endpoint Virtualization Objectives Deliver any applications, anywhere – Meet the real demands of modern computing Focus on end user experience – Don’t force changes in behavior; drive steady improvement Manage what matters – Separate user information from systems to manage easily and protect completely Build the ecosystem – Partner strategically to drive distribution and overall solution value Symantec Analyst Day - 2008 51
  • 52. Improving the End User Experience Complete Support Wow! This looks Physical and Virtual exactly like my desktop. Physical App A Execution App B Local Virtual Execution App C On-Demand App D Remote App E Virtual • The end user doesn’t know where or how applications are running, but IT managers can optimize cost of delivery, protection, and management • Solution “hides” the complexity of virtualization, while allowing the end user to benefit from it when things go wrong (e.g., “flash recovery”) Symantec Analyst Day - 2008 52
  • 53. Manage What Matters on the Endpoint • Today, OS, apps, and user information are blurred together Apps – User settings in application files, (common) registry entries – Endpoint configurations rapidly drift apart because of user interaction Information & • Separating unique data/settings Personality brings multiple benefits (unique) – Experience can follow the user – Single OS image for everyone OS – Clean, up-to-date apps delivered (common) or on-demand to any destination Symantec Analyst Day - 2008 53
  • 54. Customer Examples of Endpoint Virtualization Financial institution lowers training costs more than 50% by running old and new versions of transaction apps together University reduces total deployment time of critical statistics application from 2 weeks to 2 hours County government eliminates need for on-site visits for app installation, saving $150 per incident Symantec Analyst Day - 2008 54
  • 55. Delivering Endpoint Virtualization Today Key Deliverables • Complete • Virtual layers to separate storage/virtualization solution user data/experience from for hosted desktops (Veritas applications and O/S Virtual Infrastructure) (SVS) • Embedded technology to • Streaming solutions to support new streaming deliver any app, anywhere models (Symantec + Intel) (AppStream) • Integrated agents and • Central management for management with endpoint physical and virtual endpoints (Altiris) protection and backup Financial Analyst Day 2008 55
  • 56. Endpoint Security and Management Brad Kingsbury, Senior Vice President June 12, 2008
  • 57. Endpoint Security and Management Objectives Sell more to current customers – Up-sell Network Access Control, Encryption, DLP, Backup, Systems Management, Endpoint Virtualization Get on more endpoints – Acquire new customers by creating a product designed for the SMB and a continued focus on enterprise displacements due to value and integration delivered Endpoint convergence – Converge endpoint security and endpoint management to differentiate our competitive position Financial Analyst Day 2008 57
  • 58. Bringing Endpoint Security and Management Together Secure Manage Prevent Design Alert Publish & Orchestrate Built on the Altiris Platform Request Allow/Deny Access Active Directory HP OpenView Microsoft SMS Remedy Helpdesk Connect Report Financial Analyst Day 2008 58
  • 59. Key Product Deliverables • Altiris 7.0 – Cornerstone of Symantec collaborative architecture • SEP 12.0 – Whitelisting, improved virtualization support, additional Altiris integration Financial Analyst Day 2008 59
  • 60. Data Protection Deepak Mohan, Senior Vice President June 12, 2008
  • 61. Data Protection Overview and Objectives Objectives Symantec Data Protection • Deliver next generation data protection Backup NetBackup • Leverage scale and Exec innovation Market Leader Gold Standard in in Enterprise Windows Data • Portfolio and technology Backup and Recovery Recovery integration • Align go-to-market Enterprise Vault activities #1 in Email Archiving and E-Discovery WE PROTECT HALF THE WORLD’S DATA Financial Analyst Day 2008 61
  • 62. Next Generation Data Protection Growth Drivers A D D D ESX Server Market Leading NBU PureDisk, OST & Award Winning VMware Enterprise Vault Integrated RealTime Protection Support with NBU with NBU & BE A D D D ESX Server virtual machines mailboxes emails files documents Fastest Recovery with Unique Patent Pending Symantec Protection BESR & NBU BMR Technology Network UNDISPUTED LEADERSHIP IN THE INDUSTRY Financial Analyst Day 2008 62
  • 63. Key Deliverables • Xen and Hyper-V support in Protection for Virtualized Environments Backup Exec and NetBackup • De-duplication, Block-level CDP and Integrated Deduplication Replication in NetBackup & CDP • Add Windows 2008 support in NetBackup Best-of-Breed Windows • Support granular recovery of Support SharePoint and Exchange in NetBackup Manageability & • Migration and co-existence tools Integration Financial Analyst Day 2008 63
  • 64. Integrated Manageability Across Backup and Archiving • Altiris 7.0 Notification Server • Symantec Protection Network • Enterprise Vault The World Leader in The World Leader Backup & Recovery in Archiving Backup Exec Enterprise Vault & NetBackup Common Reporting, Search & Index System Protection & Media Management Integrated Data & Policy Management Financial Analyst Day 2008 64
  • 65. Consumer Growth Opportunities Janice Chaffin, Group President June 12, 2008
  • 66. Starting From a Strong Market Position 66
  • 67. Serving Customers Better Through Our Premium Position Sustaining Technology Leadership Setting the Adding Agenda for Customer Value the Future Delivering the Best Customer Experience 67
  • 68. Serving Customers Better Through Our Premium Position Sustaining Technology Leadership Setting the Adding Agenda for Customer Value the Future Delivering the Best Customer Experience 68
  • 69. Our Performance Goals Zero-impact performance Install Run Download FAST FAST FAST Less than 1 minute Less than 10 seconds Less than 100 MB installation time impact to boot installed size 69
  • 70. Serving Customers Better Through Our Premium Position Sustaining Technology Leadership Setting the Adding Agenda for Customer Value the Future Delivering the Best Customer Experience 70
  • 71. Continually Adding More Value to Our Suites 71
  • 72. Online Backup Offers Substantial New Value SwapDrive Acquisition • Proven expertise in online backup • Scalable solution • New offerings planned – Cross-sell – Up-sell – Standalone services Presentation Identifier Goes Here 72
  • 73. Serving Customers Better Through Our Premium Position Sustaining Technology Leadership Setting the Adding Agenda for Customer Value the Future Delivering the Best Customer Experience 73
  • 74. Industry-Recognized Customer Support Customer Symantec Support wins 2008 Satisfaction STAR Award for Best Online Support From the Service and Support Professionals Association 08 2007 2005 2006 (May 2008) 74
  • 75. Norton Helps You With Your PC Pain “It’s just not working the way it should” “I can’t identify the problem “My PC takes too long to boot “Do I need to back up? How often? “I have pop-ups ALL the time!” 75
  • 76. Improving the PC Experience Norton Green PC Service Norton Green PC Service Configuring power Configuring power management to save management to save about $50 per year about $50 per year Norton PC Tune-Up Norton PC Tune-Up Improving the Improving the performance and performance and stability of user’s PC stability of user’s PC 76
  • 77. PC Tuneup Demo 77
  • 78. Serving Customers Better Through Our Premium Position Sustaining Technology Leadership Setting the Adding Agenda for Customer Value the Future Delivering the Best Customer Experience 78
  • 79. Signature-Based Approach to Security is Breaking Yesterday Today Tomorrow • Mass-produced • Individualized • Even more viruses threats individualized threats • Signature-based • Signature approach • Signature and detection insufficient reputation-based technologies 79
  • 80. A New Approach to Family Safety 80
  • 81. Family Safety Demo 81
  • 82. A Collaborative, Web-Based Approach to Family Safety • Multiple channel opportunities • Services spanning multiple platforms and device types • Launched online • In private pilot now 82
  • 83. Summary Sustaining Technology Leadership Performance Setting the Agenda for Adding the Future Customer Value Reputation- Online Backup based protection, Family Delivering the Best Safety Customer Experience New services 83
  • 84. Q&A Janice Chaffin and Rowan Trollope Financial Analyst Day 2007 84
  • 85. Financial Review James Beer, Chief Financial Officer June 12, 2008
  • 86. Key Financial Metrics • We measure our financial success by the combined results of four key metrics Earnings Per Revenue Growth Share Growth Deferred Operating Cash Revenue Growth Flow Growth Financial Analyst Day 2008 86
  • 87. Long-Term Financial Objectives • Grow revenue and deferred revenue at or better than market – 8-12% revenue growth including acquisitions • Expand operating margins through revenue growth and expense discipline – 100 basis points improvement per year • Grow EPS faster than revenue • Generate cash flow growth approximately in line with revenue and deferred revenue growth • Balance use of cash between driving growth and share repurchases – Use half of CFFO for buy backs – Capital structure optimization Financial Analyst Day 2008 87
  • 88. Grow Revenue • Re-allocate investment towards high- growth portfolio opportunities Non-GAAP Revenue ($ in billions) • Leverage existing strengths and up-sell $6.2 to new functionalities $5.9 9% CAGR $5.8 – 1,554 deals over $300K in FY08 compared with 1,392 in FY07 $5.3 $5.4 $5.0 • Alignment of functional teams $5.0 • Supplement growth with acquisitions, $4.6 alliances and partnerships $4.2 – Huawei • Lower-cost, lower-risk approach to strengthening $3.8 competitive position in Asia $3.4 • Proportionate share of earnings will be included in Other Income $3.0 • Longer-term option to become majority owner FY06 FY07 FY08 Financial Analyst Day 2008 88
  • 89. Grow Deferred Revenue • Align deferred revenue growth • Stable roll off of deferred revenue with revenue growth Deferred Revenue Roll Off Non-GAAP Deferred Revenue ($ in billions) $3.50 15% CAGR 3.09 $3.00 2.77 $2.50 2.32 $2.00 FY06 FY07 FY08 Financial Analyst Day 2008 89
  • 90. Expand Operating Margins • 4Q08 margins improved by more than 500 basis points compared to Non-GAAP Operating Margins 4Q07 30% • Spending discipline 27.8% 27.4% – Manage organic head count 27% growth 25.7% 25.2% – Rationalize real estate portfolio – Manage general operating 24% expenses 22.4% • Revenue growth also provides 21% upside opportunity to expand margins further • FY09 goal: improve operating 18% margins by 100 basis points 4Q07 1Q08 2Q08 3Q08 4Q08 Financial Analyst Day 2008 90
  • 91. Grow EPS • EPS growth drivers Non-GAAP EPS – Revenue growth $1.40 – Cost controls $1.27 13% CAGR – Share buy backs $1.20 • Focus on quarterly execution $1.01 $1.00 $1.00 $0.80 $0.60 FY06 FY07 FY08 Financial Analyst Day 2008 91
  • 92. Cash Generation • Cash flow from Cash Flow From Operations and Cap Ex operations up 9% ($ in billions) year-over-year $2.00 $1.82 $1.67 – Strong collections $1.60 – Cost controls FY07 FY08 • Cap Ex spending $1.20 down 35% year- over-year $0.80 • IRS tax case: $0.42 $0.40 $0.27 exposure of $545M compared $0.00 to original $867M CFFO Cap Ex Financial Analyst Day 2008 92
  • 93. Return Cash to Shareholders • In FY08, returned $1.5 billion to shareholders – 81 million shares repurchased at average price of $18.53 per share – Approximately 80% of CFFO used for share buy backs • Going forward, expect to use 50% of CFFO for share repurchases Diluted Common Shares Outstanding Cash Balance (shares in millions) US 1,100 1,026 30% 983 1,000 884 900 Intl 800 70% FY06 FY07 FY08 3/31/08 Financial Analyst Day 2008 93
  • 94. Reiterate June Quarter Guidance GAAP Non-GAAP Revenue $1.55 - $1.59B $1.555 - $1.595B Deferred Revenue $2.905 - $3.005B $2.91 - $3.01B EPS $0.17 - $0.19 $0.34 - $0.36 CFFO >$350M • June quarter has an extra week of financial impact – $65 million of revenue – $40 million expenses – $0.02 EPS Financial Analyst Day 2008 94
  • 95. Summary • Clear financial goals • Improving execution • Financial performance driven by: – Revenue growth – Ongoing expense discipline • Focus on shareholder value – Cash flow and earnings growth – Maintaining share buyback Financial Analyst Day 2008 95
  • 96. Q&A James Beer Financial Analyst Day 2007 96
  • 97. Closing Remarks John Thompson, Chairman and CEO June 12, 2008
  • 98. Thank You Copyright © 2008 Symantec Corporation. All rights reserved. Symantec and the Symantec Logo are trademarks or registered trademarks of Symantec Corporation or its affiliates in the U.S. and other countries. Other names may be trademarks of their respective owners. This document is provided for informational purposes only and is not intended as advertising. All warranties relating to the information in this document, either express or implied, are disclaimed to the maximum extent allowed by law. The information in this document is subject to change without notice. Symantec Analyst Day - 2008