2. Forward Looking Statements
This presentation contains statements regarding our strategic direction and our projected financial and business results, which may be
considered forward-looking within the meaning of the U.S. federal securities laws, including statements regarding our intention to separate the
company into two, independent publicly traded companies and the expected benefits to be realized as a result of the separation; the projected
market growth rates and margin expansion opportunities for the security business and the information management business; statements
regarding our competitive advantage in security and information management; statements with respect to the proposed timing of the
separation; and our reiteration of Symantecโs previously-issued quarterly guidance on revenue, operating margin and earnings per share. 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: risks related to the separation of the company into the security business and the information management business, general economic
conditions; maintaining customer and partner relationships; the anticipated growth of certain market segments, particularly with regard to
security and information management; 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 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 presentation. We assume no obligation, and
do not intend, to update these forward-looking statements as a result of future events or developments. Additional information concerning
these and other risks factors is contained in the Risk Factors sections of our Form 10-K for the year ended March 28, 2014.
Any information regarding pre-release of Symantec offerings, future updates or other planned modifications is subject to ongoing evaluation by
Symantec and therefore subject to change. This information is provided without warranty of any kind, express or implied. Customers who
purchase Symantec offerings should make their purchase decision based upon features that are currently available.
We assume no obligation to update any forwardโlooking information contained in this presentation.
2
3. Use of GAAP and Non-GAAP Financial Information
3
Our results of operations have undergone significant change due to a series of acquisitions, the impact of stock-based compensation,
impairment charges and other corporate events, including the impact on revenue of the ongoing investigation into Symantecโs compliance with
certain provisions of its 2007 GSA contract. 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 can be found, along with other financial information, on the investor relationsโ page of our website at www.symantec.com/invest.
4. 4
At Symantec, we protect your information wherever
itโs stored or accessed.
5. Protecting the worldโs information requires great people.
โข 21,000 Employees in 50 Countries
โข 4th Largest Software Company in The WORLD
5
6. 6
We do security and a whole lot more.
โข We have the best visibility into what attackers are doing because we operate the
largest civilian cyberintelligence threat network in the world.
โข We are pioneering new solutions in growing markets like mobile, cloud, appliances,
backup, data loss prevention, managed security services and authentication.
7. Investment Thesis
โข Operates in growing markets โ backup appliances, mobile, cloud, advanced threat
protection, data loss prevention, and managed security services โ where IT spend
continues to grow
โข Leverages the worldโs largest civilian cyberintelligence threat network to provide faster
and better protection
โ Broadest set of market-leading brands across security and backup in the industry
โ Global base of customers from consumers to large enterprises and governments
โข Opportunity to grow and increase profitability to create shareholder value
โข Strong cash flow generation and balance sheet to allocate towards growth initiatives
โข Continue to return significant cash to shareholders with approximately 50% of free cash
flow returned through dividends and buybacks.
7
8. 29.9%
27.2% 24.6%
28.7%
35%
30%
25%
20%
15%
10%
5%
0%
$550
$500
$450
$400
$350
$300
3Q14 4Q14 1Q15 2Q15
Non-GAAP
Operating Margin
Non-GAAP
Operating Income
($ in millions)
Non-GAAP Operating Income Non-GAAP Operating Margin
Progress Achieved in 2Q15
8
2Q15 2Q14
Revenue ($ millions) $1,617 $1,637
Deferred Revenue ($ millions) $3,417 $3,567
Non-GAAP Operating Margin1 28.7% 27.5%
Non-GAAP EPS1 48ยข 51ยข
โข Delivered operating margin and EPS that
exceeded guidance and in-line revenue
โข Backup appliances, enterprise endpoint
protection and DLP products generated
robust revenue growth
โข The number of $1 million and $300,000
deals were up 56% Y/Y and 24% Y/Y,
respectively
โข Implied billings grew 12% Y/Y on a
constant currency basis, but down 1% Y/Y
due primarily to the depreciation of the
Euro during the quarter
9. 43%
51%
50% 53%
54%
52%
50%
48%
46%
44%
42%
40%
$540
$520
$500
$480
$460
$440
$420
$400
3Q14 4Q14 1Q15 2Q15
Operating Margin
Revenue
($ in millions)
Consumer Security
Revenue Operating Margin
20%
15%
13%
17%
22%
20%
18%
16%
14%
12%
10%
$560
$540
$520
$500
$480
$460
$440
$420
$400
3Q14 4Q14 1Q15 2Q15
Operating Margin
Revenue
($ in millions)
Enterprise Security
Revenue Operating Margin
Security Quarterly Highlights
โข DLP grew 18% Y/Y driven by our June product
release
โข Streamlined nine Consumer Security products
into a single Norton Security offering and exited
unprofitable OEM contracts which drove
operating margins higher by 973 bps Y/Y
โข We are the only company that offers a
combination of MSS, incident response,
cybersecurity simulations, and adversary threat
intelligence services
โข Our incident response service nearly doubled the
number of engagements since August
9
1
1
1Non-GAAP financial measure. See www.symantec.com/invest for a reconciliation to the applicable GAAP financial measure
10. Security: How We Are Going to Win
Cybersecurity service
capabilities to span managed
security, incident response,
threat adversary intelligence
and simulation-based training
Our Competitive Advantage
Deliver a unified security
platform that integrates threat
information in a big data
platform for superior threat
analysis
Simplify and integrate diverse
capabilities such as Advanced
Threat Protection and Data
Loss Prevention into a best-in-class
security portfolio
We see more, analyze more, and therefore know more
about security threats than any other company in the world
10
11. 27%
18%
14%
20%
28%
26%
24%
22%
20%
18%
16%
14%
12%
10%
$700
$650
$600
$550
$500
$450
$400
3Q14 4Q14 1Q15 2Q15
Operating Margin
Revenue
($ in millions)
Information Management
Revenue Operating Margin
Information Management Quarterly Highlights
โข Information Management revenue increased
3% Y/Y to $621 million
โข Growth of our NetBackup appliances
accelerated from 35% Y/Y in 1Q15 to 45% Y/Y
in 2Q15
โข Our NetBackup 5330 appliance delivers twice
the performance and capacity of prior models
โข Information availability had double-digit billings
growth driven by robust renewal activity
โข Our On-premise archiving product generated
double-digit billings growth driven by the
summer launch of Enterprise Vault 11
11
1Non-GAAP financial measure. See www.symantec.com/invest for a reconciliation to the applicable GAAP financial measure
1
12. Information Management: How We Are Going to Win
12
Our Competitive Advantage
Innovate across our best-in-class portfolio to
provide resilient, reliable foundational
products for our customersโ information
We enable end-to-end visibility of our customersโ
information across its entire lifecycle
management strategy
Deliver capabilities however customers want
to buy (on premise software, integrated
appliances or cloud)
Deliver solutions that dramatically reduce the
TCO of storing, managing, and deriving
insights and business value from information
Help customers reduce the unmanaged
proliferation of redundant and unused data
Enable visibility, management, and control
across an organizationโs entire information
landscape through an intelligent information
fabric layer that integrates with our portfolio
and third-party ecosystems
13. Product Delivery for FY15
Information Management Security
2H15 1H15
โข Released appliances which doubled the capacity of prior models
โข Backup Exec 2014 is 100% faster than previous versions and
provides Windows Server 2012/R2 support
โข Enterprise Vault 11.0 delivers a new end user search interface
and mobile device access
โข Disaster Recovery Orchestrator automates and manages DR of
Windows based applications residing on either physical or
virtual machines to Microsoft Azure cloud
โข Released Norton Security, streamlining our Consumer portfolio
โข Launched MSS ATP service
โข DLP & mobile security integration in Mobile App Center
โข Launched Incident Response service providing customers with
immediate access to critical capabilities, knowledge and skill sets
during incident response scenarios
โข Extended DLP to multiple tiers, reducing its footprint and making it
more cost effective
13
โข Cyber security Simulation Platform will give customers the ability to
run simulations on demand using a SaaS model
โข Managed Adversary Threat Intelligence provides access to in-depth
analysis of adversaries as well as campaigns and incidents
โข Mobility: Suite 5.0 broadens our platform support and increases our
protection capabilities
โข Identity Access Manager is our next generation access control platform
that integrated Single Sign-On with strong authentication
โข Integrating ATP into Symantec Endpoint Protection
โข Releasing NetBackup 5330 which delivers twice the
performance and capacity of prior models
โข Released eDiscovery 8.0 with a redesigned user experience and
accelerating how fast customers can search and identify
relevant information
โข Releasing our SmartIO platform expansion with flexible storage
sharing for Storage Foundation
โข Extending Amazon Web Services capability to Disaster Recovery
Orchestrator
14. Two Independent Companies with Strong Financial Profiles
Revenue1: $6.7 billion
CS
31%
ES
31%
IM
38%
โข Revenue1: $4.2 billion
SECURITY
โข Operating Margin1,2: 30%
โข 1 billion+ systems
โข 42 million attack sensors
in 157 countries
โข 4 trillion+ threat indicators,
updated at the rate of 200,000
new threats per second
INFORMATION MANAGEMENT
โข Revenue1: $2.5 billion
โข Operating Margin1,2: 23%
โข 75% of Fortune 500
โข Global leader in backup
โข NetBackup appliance:
36% market share3
CS = Consumer Security
ES = Enterprise Security
IM = Information Management
1 FY2014 GAAP metrics
2 Excluding reconciling items
3 Source: IDC, 2013 14
15. Enhance strategic
flexibility
โข Realign efforts toward
distinct opportunities for
growth and margin expansion
โข Set capital allocation policy
as well as M&A and
partnership strategies that
align to specific needs
Strategic Rationale for Separation
Reduce operational
complexity
โข Streamlining processes
โข Simplifying each
organization
โข Making it easier for
customers to do
business with us
Focus
โข Unique growth
opportunities in each
โข Tailor R&D investments
and go-to-market
capabilities to unique
market dynamics
15
focus
16. Separation Operating Principles
16
โข Our philosophy is to manage each business separately, to minimize disruption to our
businesses, partners, customers, and employees, and to execute a well-managed
separation
โข Weโve established four operating principles:
โ Deploying dedicated work streams to manage the separation
โ Leaving our go-to-market capability largely intact for the remainder of this fiscal year
โ Creating a process to separate contracts that pertain to both our information management
and security products
๏ง We believe separating the contracts will not be problematic and intend to enter into
intercompany agreements to address the ELAs
โ To minimize costs, we are delaying the creation of a duplicative organizational structure until
later in the separation process
17. 2014 2015 2016
FY15 Q3 FY15 Q4 FY16 Q1 FY16 Q2 FY16 Q3
Announcement Operational
Separation
Public
Separation
17
Form 10
Filing
Separation Timeline
Credit Rating
Discussions
Dedicated Work Streams for Org Structure, Capital
Structure, and Carve-out Financials
18. Capital Allocation Strategy
18
โข Our long-term objective is to return approximately 50% of free cash flow to
shareholders through dividends and share repurchases
โ Substantial cash flow generation
โ About 35% of cash is held onshore
โข Remain committed to returning cash to shareholders in the form of dividends and
buybacks through the date of the separation
โข Strong balance sheet and financial flexibility
โ $2.1 billion in investment grade debt
โข Allocate resources to growth areas such as backup appliances, mobile, cloud,
advanced threat protection, data loss prevention, and managed security services
19. Making Progress and Building Momentum
19
โข We outlined five priorities: (1) managing our portfolio of businesses for growth and
margin; (2) shifting R&D investment to the fastest growth areas; (3) introducing eight
revenue and efficiency initiatives to stimulate growth and margin; (4) attracting talent
to our executive team; and (5) returning significant cash to shareholders
โข Our implied billings growth rate gives us confidence that we will achieve our revenue
and operating margin targets at our original FY15 guided exchange rate
โข Articulated defined strategies for our two major businesses and announced a
separation to better realize the distinct strategies required for each to be successful
โข Shifting R&D investment to the fastest growth areas for our future which include
backup appliances, mobile, ATP, MSS, and DLP
โข Added six key executives, enhancing the capability of the management team
20. 20
At Symantec, we protect your information wherever
itโs stored or accessed.
