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Defining the Future of Cybersecurity
November 2016
The New
FORWARD LOOKING STATEMENTS
This presentation contains statements which may be considered forward-looking within the meanin...
3
Enterprise SecurityConsumer Security
Digital Safety Platform
• Protecting your information, devices
and identity
• Prote...
Threat Landscape Is More Challenging Than Ever
4
Targeted Attacks
on the Rise
Data Is
The New Perimeter
Consumers Need
Rea...
182M
web attacks
blocked last year
Discovered
430 million
new unique pieces
of malware last year
12,000+
Cloud application...
6
Integrated Cyber Defense Platform
• Stay ahead of advanced threats
• Secure sensitive information and critical documents...
Cloud Generation Security
7
Protection from
Advanced Threats
Securing a Mobile
Workforce
Ensuring Safe
Cloud Usage
Cloud G...
8
Web
Blue Coat Proxy-based Secure Web Gateway (SWG)
Critical Network Control Point for Security and Compliance
• Appliance ...
Secure Web Gateway
ProxySG and Advanced Secure Gateway
Proxy
Proxy All Endpoints
• Terminate and decrypt traffic
• Emulate...
The Cloud Generation Security Challenge
A Shifting Expanse of Blind Spots
11
SSL
Mobile/BYOD/IoT Endpoints
Headquarters
Da...
Accelerating Cloud DLP with CASB
12
Apply Fine-Tuned Policies to Cloud
Leverage Workflow Integrations
Gain CASB Functional...
13
Machine
Learning
• Pre-execution
detection for
new and
evolving threats
Application
Protection
• Memory Exploit
Mitigat...
Overview of the Symantec Email Security Solution
Multi-Tenant, Cloud-Based Solution
Solution Overview
• Blocks targeted at...
Managed Cyber Defense
A Comprehensive Integrated Portfolio for Every Stage of the Attack Lifecycle
Track and Analyze Adver...
Symantec Website Security
16
Website Security Market
Symantec
Offerings
SSL
Certificates
Domain Validated Certificates
Org...
Symantec Website Security
17
Symantec is the Leader
WEBSITE SECURITY
Differentiation
90% of Fortune 500
companies are
secu...
Symantec Website Security: ENCRYPTION EVERYWHERE
18
WEBSITE SECURITY
Focus on our unique scale & operational viability, ou...
19
Consumer Security
Digital Safety Platform
Protecting your information, devices, identity and over 50 million consumers ...
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every
2 seconds
someon...
Transforming Symantec’s Consumer Business
21
Consumer Digital
Safety Platform Digital Safety Platform protecting your info...
Our Journey in Consumer Security
22
Virus Computer Takeovers
Protecting PC, files and online
activity from highly visible ...
Protects and Monitors Your Digital Life
Alerts You to Malicious Activity
Restores Your Identity When Compromised
23
• Iden...
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
• 1 in 4 Americans...
$5
$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($...
Transaction Overview
26
Transaction
Consideration $24/share or $2.3 billion in enterprise value
Approval Process &
Expecte...
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18...
28
Symantec is Transforming Digital Safety
Protects Your Digital Life - Alerts You to Suspicious Activity – Restores Your ...
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $1.70 to $1.80
FY16 1Q17 2Q17
Consumer Security
Revenu...
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $0.30 annu...
Capital Structure and Financing
31
$billion
Cash, cash equivalents,
and ST investments
(9/30)
$5.6
Term Loans & Notes 5.55...
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of pur...
Copyright © 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1, 2016 (...
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Symantec Investor Presentation November 2016

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Symantec Investor Presentation November 2016

  1. 1. Defining the Future of Cybersecurity November 2016 The New
  2. 2. FORWARD LOOKING STATEMENTS This presentation contains statements which may be considered forward-looking within the meaning of the U.S. federal securities laws, including statements regarding Symantec’s financial guidance, the acquisition of LifeLock and the time frame in which this will occur, Symantec’s financing of the acquisition, and the expected benefits to Symantec, LifeLock, and their respective customers, stockholders and investors from completing the acquisition, including without limitation expected revenue and subscriber growth, improvements to total addressable market and value proposition, earnings accretion and cost savings, statements regarding cost reduction, integration and synergy efforts, and the potential benefits to be derived therefrom. These statements are subject to known and unknown risk's, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from results expressed or implied in this presentation. Such risk factors include those related to: obtaining required regulatory clearances and LifeLock stockholder approval and the satisfaction of other closing conditions, the potential impact on the businesses of LifeLock and Symantec due to uncertainties regarding the acquisition; the retention of employees of LifeLock and the ability of Symantec to successfully integrate LifeLock and to achieve expected benefits; general economic conditions; fluctuations and volatility in Symantec’s stock price; the ability of Symantec to successfully execute strategic plans; maintaining customer and partner relationships; anticipated growth of certain market segments; fluctuations in tax rates and currency exchange rates; the timing and market acceptance of new product releases and upgrades; and 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 presentation. Symantec assumes no obligation, and do not intend, to update these forward-looking statements or reasons why results might differ as a result of future events or developments. Additional information concerning these and other risk factors is contained in the Risk Factors section of Symantec’s Form 10-K for the year ended April 1, 2016 and Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2016 and in the Risk Factors section of LifeLock's Form 10-K for the year ended December 31, 2015 and the Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2016. 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 forward‐looking information contained in this presentation. ADDITIONAL INFORMATION ABOUT THE PROPOSED TRANSACTION In connection with the proposed transaction, LifeLock will file a proxy statement with the SEC. The definitive proxy statement will be mailed to LifeLock stockholders and will contain important information about the proposed transaction and related matters. LIFELOCK STOCKHOLDERS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) CAREFULLY WHEN IT BECOMES AVAILABLE BEFORE MAKING ANY VOTING OR INVESTMENT DECISION WITH RESPECT TO THE PROPOSED TRANSACTION BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND THE PARTIES TO THE PROPOSED TRANSACTION. LifeLock stockholders are advised that they may obtain free copies of the proxy statement filed by LifeLock with the SEC (when this document becomes available) on the SEC’s website at http://www.sec.gov. In addition, free copies of the proxy statement may be obtained (when this document becomes available) from LifeLock's website at http://investor.LifeLock.com/ or from LifeLock by written request to Investor Relations, 60 East Rio Salado Parkway, Suite 400 Tempe, Arizona 85281. Additionally, LifeLock and Symantec will file other relevant materials in connection with the proposed acquisition of LifeLock by Symantec pursuant to the terms of an Agreement and Plan of Merger by and among, Symantec, L1116 Merger Sub, Inc., a wholly owned subsidiary of Symantec, and LifeLock Symantec, LifeLock and their respective directors, executive officers and other members of their management and employees, under SEC rules, may be deemed to be participants in the solicitation of proxies of LifeLock stockholders in connection with the proposed merger. Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of certain of Symantec’s executive officers and directors in the solicitation by reading Symantec’s most recent Annual Report on Form 10-K, which was filed with the SEC on May 20, 2016 and the proxy statement for Symantec’s 2016 annual meeting of stockholders, which was filed with the SEC on September 9, 2016. These documents are available free of charge at the SEC’s web site at www.sec.gov or by going to Symantec’s Investor Relations Website at http://investor.symantec.com. Information concerning the interests of LifeLock's participants in the solicitation, which may, in some cases, be different than those of LifeLock's stockholders generally, will be set forth in the proxy statement relating to the merger when it becomes available. Copyright © 2016 Symantec Corporation 2
  3. 3. 3 Enterprise SecurityConsumer Security Digital Safety Platform • Protecting your information, devices and identity • Protecting over 50 million consumers every day Integrated Cyber Defense Platform • Stay ahead of advanced threats • Secure sensitive information and critical documents – on premise or in the cloud • Promote customer confidence with superior encryption and code signing Protecting Consumers, Businesses and Governments
  4. 4. Threat Landscape Is More Challenging Than Ever 4 Targeted Attacks on the Rise Data Is The New Perimeter Consumers Need Reassurance They Are Safe Online Online customers don’t know if they can trust e-commerce websites Don’t have visibility into attacks on brand Never Have Enough Time or Resources Organizations don’t know how they are doing or where to focus – 96% of alerts never reviewed Hard to hire the right security talent Large enterprises have a 38% change of being targeted for spear phishing Average attack goes undetected for 170 days Just 31% of breaches are found by the victim organization – the rest are found by a third party, law enforcement, etc. With 65% of workloads in the cloud (Amazon Web Services, Salesforce, Box, Office 365), more of your data is at risk Data is increasingly accessed from outside the firewall
  5. 5. 182M web attacks blocked last year Discovered 430 million new unique pieces of malware last year 12,000+ Cloud applications discovered and protected Innovation for the Cloud Generation: Protecting Against Advanced Threats – Global Intelligence Network 175M Consumer and Enterprise endpoints protected 9global threat response centers with 3000 Researchers and Engineers 2 Billion emails scanned per day 1 Billion previously unseen web requests scanned daily Cloud Global Intelligence Sourced From: 100M social engineering scams blocked last year 1B malicious emails stopped last year 5
  6. 6. 6 Integrated Cyber Defense Platform • Stay ahead of advanced threats • Secure sensitive information and critical documents – on premise or in the cloud • Promote customer confidence with superior encryption and code signing Enterprise Security
  7. 7. Cloud Generation Security 7 Protection from Advanced Threats Securing a Mobile Workforce Ensuring Safe Cloud Usage Cloud Generation Security
  8. 8. 8
  9. 9. Web Blue Coat Proxy-based Secure Web Gateway (SWG) Critical Network Control Point for Security and Compliance • Appliance (ProxySG) • Virtual Appliance (vSWG) • Web Security Service (WSS) File Extraction & Orchestration Services (ATP, DLP) Powerful, Open Policy Platform - In Cloud, On Prem, Virtual, AWS Web Access Governance & Threat Protection + Blue Coat Intelligence Services (BCIS) or Blue Coat Web Filter (BCWF) subscriptions PROXY BCIS Web Security Service (WSS) PROXY 9
  10. 10. Secure Web Gateway ProxySG and Advanced Secure Gateway Proxy Proxy All Endpoints • Terminate and decrypt traffic • Emulate all device types • Extract content for inspection • Integrate authentication Control Web & Cloud Governance • Discover & control shadow IT risk • Block web-borne threats • Enforce access policy & audit usage of web & cloud W W W.W E B S I T E . C O M Prevent Threats & Orchestrate Content • Pre-filter sandbox with advanced content inspection • Send content to DLP, sandbox, analytics, etc.. • Open integration architecture to quickly add new services .JAR .EXE Enhance the User Experience & Performance • Video Acceleration and Split Tunneling • Asymmetric Caching of Content • Optimized Protocol Support 10
  11. 11. The Cloud Generation Security Challenge A Shifting Expanse of Blind Spots 11 SSL Mobile/BYOD/IoT Endpoints Headquarters Data Center Regional Office Traditional Security Stack Expanding Use of Encryption Creates Blind Spots Traditional Security Stack Has Lost Significant Visibility As Resources Go Direct-to-Net Cloud Applications Causing Organizations to Lose Control Over Their Resources Rapidly Growing Landscape of Unprotected Devices Users Cloud Applications And Services
  12. 12. Accelerating Cloud DLP with CASB 12 Apply Fine-Tuned Policies to Cloud Leverage Workflow Integrations Gain CASB Functionality • Shadow IT Analysis • Granular Visibility and Control • User Behavior Analytics Extend DLP to 60+ Cloud Apps Unmanaged devices Extended perimeter Symantec DLP Management Console Managed devices with DLP Endpoint Agent Direct to Net access Policies Incidents Corporate Datacenter Policies Incidents Policies Incidents Symantec Cloud DLP
  13. 13. 13 Machine Learning • Pre-execution detection for new and evolving threats Application Protection • Memory Exploit Mitigation Emulator • Anti-evasion technique to detect hidden malware Intelligent Threat Cloud • Real-time cloud lookup , ~70% reduction in definition size Performance Enhancements • Faster real-time virus detection Enabling Integrations • REST APIs • Enable Blue Coat integrations Enhanced Automation • Expanded LiveUpdate to deliver security updates for Windows clients Superior Protection High Performance Orchestrated Response Secure Vulnerable Apps Pre-Execution Detection Strong Anti-Evasion Easy Integrations Faster and Light Weight Automation 70% drop in daily updates Symantec Endpoint Protection 14 Introducing Symantec Endpoint Protection 14 Protection against advanced threats without compromising end-user or IT productivity
  14. 14. Overview of the Symantec Email Security Solution Multi-Tenant, Cloud-Based Solution Solution Overview • Blocks targeted attacks, spear phishing, viruses & malware, spam, and bulk mail • Controls sensitive data and helps meet compliance & privacy requirements • Detects new and stealthy targeted & advanced attacks • Provides deep visibility into targeted attacks and accelerates remediation Inbound/Outbound Third-party Advanced Threat Protection Anti-Spam Anti-Malware Data Protection Image ControlFirewallUsers On-premise Email Server Cloud Email Server Users 14
  15. 15. Managed Cyber Defense A Comprehensive Integrated Portfolio for Every Stage of the Attack Lifecycle Track and Analyze Adversary Groups and Key Trends and Events around the globe for Actionable Intelligence DeepSight Intelligence Detect and Proactively Hunt for Targeted Attacks, Advanced Threats and Campaigns Managed Security Services Respond Quickly and Effectively to Credible Security Threats and Incidents Incident Response Strengthen Cyber Readiness to Build Employee Resiliency and Prevent Sophisticated Attacks Cyber Skills Development World-Class Security Expertise > Reactive to Proactive > Integrated, End-to-End Security Before an Attack During an Attack After an Attack Preparing for an Attack 15
  16. 16. Symantec Website Security 16 Website Security Market Symantec Offerings SSL Certificates Domain Validated Certificates Organization Validated Certificates Extended Validated Certificates SSL Discovery and Certificate Lifecycle Automation Code signing OEM Offerings Web Application Firewall (WAF) Distributed denial of service (DDOS) WEBSITE SECURITY An SSL Certificate is: • A server-based product • Enables encryption of data in transit • And provides validation of the certificate holder’s identity Inspires: • Assurance of safety and security • Trust and confidence to transact Creating: • Site stickiness • Business uplift SSL 101
  17. 17. Symantec Website Security 17 Symantec is the Leader WEBSITE SECURITY Differentiation 90% of Fortune 500 companies are secured by Symantec SSL/TLS Symantec issues 7 out of every 10 code signing certificates globally 90% Norton™ Secured Seal is the most recognized trust mark on the Internet 80% of the 500 largest ecommerce sites in North America are secured by Symantec SSL/TLS 96% of the world’s 100 largest financial institutions are secured by Symantec SSL/TLS 80% 7/1096% Most Comprehensive Offerings and Solutions Orientation Fastest Performance in Industry with Scale World Class and Secure Service Availability Best Root Ubiquity Global Support
  18. 18. Symantec Website Security: ENCRYPTION EVERYWHERE 18 WEBSITE SECURITY Focus on our unique scale & operational viability, our breadth of offerings enabling unparalleled partner upsell opportunities, and customized marketing support to drive partner growth Shift the internet to encryption by default… move from today’s meager 3% encryption to 100% Shifting to upsell modelAccelerate market share expansion for SSL/TLS certificates Rapidly Expand Volume Drive Double Digit Growth Secure the World’s Traffic
  19. 19. 19 Consumer Security Digital Safety Platform Protecting your information, devices, identity and over 50 million consumers every day
  20. 20. Cybercrime is a Large and Growing Problem 20 689 million people globally were victims of cybercrime Every 2 seconds someone is a victim of identity theft Identity theft has been a top FTC complaint in the U.S. for the last 15 years, with complaints up 47% to a combined 27% of all consumer complaints to the FTC between ID Theft and Imposter Scams 39% of Americans experienced cybercrime in the past year Total Reported Identities Exposed new account fraud doubled in 2015 Source: Symantec ISTR, Javeline (2016), FTC (2015), ID Theft Center (2015) 429 Million
  21. 21. Transforming Symantec’s Consumer Business 21 Consumer Digital Safety Platform Digital Safety Platform protecting your information, devices and identity Expands Consumer Market Opportunity Combines the leading consumer security and identity protection providers Together we will serve over 50 million consumers Financially Attractive Combination Combined consumer business expected to grow in low to mid single digits Expected annual cost synergies of $30 million by the end of FY18, increasing to $80 million by the end of FY20 Optimal Use of Capital $2.3 billion in enterprise value with an expected close during Q4 FY2017 $1.3 billion share repurchase authorization in place
  22. 22. Our Journey in Consumer Security 22 Virus Computer Takeovers Protecting PC, files and online activity from highly visible threats Ransomware, Phishing Scams and Trojans Protecting online activity and information across devices including mobile Identity and fraud protection Protecting personal information and identity across the device, network, and cloud IoT and Connected Home Protecting homes and family Digital Safety Platform Protecting all Consumer Devices Microsoft, Android, Mac and iOS
  23. 23. Protects and Monitors Your Digital Life Alerts You to Malicious Activity Restores Your Identity When Compromised 23 • Identity Protection • Identity Threat Notification Digital Safety Platform The First Comprehensive Digital Safety Platform Protects Your Digital Life Alerts You to Suspicious Activity Restores Your Identity • Multi-Device Security • Microsoft, Mac, Android and iOS • Parental controls • Consumer IoT • Private VPN • Backup • Credit Reports • Service Guarantee Prevents, detects, and remediates malware across PCs, laptops, and mobile Secure multi-device VPN Protects consumer IoT devices Identity protection from fraudulent activity* Monitors identity in dark web Provides identity remediation services * LifeLock does not monitor all transactions at all businesses. No one can prevent all identity theft
  24. 24. LifeLock is the Leading Provider of Identity Protection 24 Compelling Market Opportunity Business Model • 1 in 4 Americans have been the victims of ID theft3 • 164 million records exposed by data breach in 2015 • Leading market share with 4x brand awareness of nearest competitor4 • 4.4+ million members out of an estimated 78 million member US TAM • $650MM LTM revenue representing 16% Y/Y Growth1 • Recurring revenue model with 85.5% retention rate1 • 4.4+ million members, 400+ enterprise customers, $12.25 ARPU per month1 • 64 NPS Score2 1 As of 9/30/2016 2 Premium offering; NPS® Benchmarks 2015 3 Based on sample of 4,402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock, Jan-Dec 2015 4 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock +1 trillion data elements Data repository Patented analytics ID NETWORK TM Did you open a new credit card? Yes No MEMBER MONITOR ALERT RESTORE 3rd PARTY DATA MEMBER DATA NETWORK EFFECT Near full visibility to every adult in the U.S
  25. 25. $5 $10 $11 $11 $12 FY17 FY18 FY19 FY20 FY21 $10B Digital Safety Addressable Market 25 Digital Safety Addressable Market ($B) 7% CAGR Source: Company estimates, Gartner, McKinsey Endpoint Security • Over 1 billion consumer desktops, notebooks, tablets, and smartphones • Leading provider of Mac protection Identity Protection • Alerts and remediates compromised identities Private VPN • Protects consumer data from being stolen on public WiFi • Allows consumer to anonymize behavior and keep location private Connected Home Security • Billions of consumer connected IoT devices Endpoint Security TAM
  26. 26. Transaction Overview 26 Transaction Consideration $24/share or $2.3 billion in enterprise value Approval Process & Expected Closing Expected close date during Q4 FY2017 Subject to customary closing conditions and regulatory approvals Expected Financial Impact Reaffirming FY17 financial guidance, FY18 $1.70-$1.80 non-GAAP EPS outlook Accretive to FY19 non-GAAP EPS Expected Financing Combination of cash on balance sheet and $750 million of new debt Share repurchase authorization increased to $1.3 billion
  27. 27. Consumer Security Expected Financial Profile 27 Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPSAdditional Upside Opportunities Cross-sell identity protection into large Norton US customer base Optimize retention of LifeLock customer base by adding cyber defense value International expansion of LifeLock offering Consumer Security Revenue Growth Revenue growth accelerating to low to mid single digits High recurring revenue Maintains Strong Margin Profile $30 million annual cost synergies by end of FY18, increasing to $80 million by end of FY20 Healthy operating margins of approximately 40% Meaningful leverage across operations and overhead
  28. 28. 28 Symantec is Transforming Digital Safety Protects Your Digital Life - Alerts You to Suspicious Activity – Restores Your Identity
  29. 29. Significantly Enhanced Financial Model 29 Expect Fiscal 2018 EPS of $1.70 to $1.80 FY16 1Q17 2Q17 Consumer Security Revenue $1,670 $403 $405 % Y/Y (CC) (9%) (8%) (5%) Operating Margin 55% 56% 55% Enterprise Security Non-GAAP Revenue $1,930 $481 $610 % Y/Y (CC) (2%) (1%) 24% Non-GAAP Operating Margin 5% 6% 12% Total Revenue $3,600 $884 $1,015 % Y/Y (CC) 5% (4%) 10% Non-GAAP Operating Margin 28.5% 28.6% 29.2% Note: Financials presented are Non-GAAP
  30. 30. Financial Policy 30 3 Expect to pay down debt over the medium term and maintain strong balance sheet 4 Maintain $0.30 annual dividend 1 Board authorization for share repurchase program increased to $1.3 billion; up to $500 million in additional repurchases before the end of FY17 2 Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
  31. 31. Capital Structure and Financing 31 $billion Cash, cash equivalents, and ST investments (9/30) $5.6 Term Loans & Notes 5.55 Convertible debt 1.75 Net debt $1.7 Amounts in $MM except % Coupon Maturity Principal Balance ($) Revolver L+150 5/2021 0 Term Loan A-1 L+150 5/2019 1,000 2017 Notes 2.75% 6/2017 600 2020 Notes 4.20% 9/2020 750 2021 Convertible Note (SLP) 2.50% 4/2021 500 2022 Notes 3.95% 6/2022 400 Term Loan A-2 L+150 8/2019 800 Term Loan A-3 L+150 8/2019 200 Term Loan A-5 L+175 8/2021 1,800 2021 Convertible Note (SLP/Bain) 2.00% 8/2021 1,250 Total 7,300 Debt Schedule
  32. 32. USE OF NON-GAAP FINANCIAL INFORMATION Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products, certain acquisition and integration costs, discontinued operations, stock-based compensation, restructuring, transition and separation matters, charges related to the amortization of intangible assets, and certain other income and expense items that management considers unrelated to the Company’s core operations. 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 including constant currency information. 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. Non-GAAP financial measures are supplemental, should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management team uses these non-GAAP financial measures in assessing Symantec’s operating results, as well as when planning, forecasting and analyzing future periods. No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure. The impact, which may be significant, of purchase accounting on revenue, non-cash compensation expense and other non-cash charges, are not yet known and subject to change, and the variability of these charges could have a significant, and unpredictable, impact on Symantec’s future GAAP financial results. Copyright © 2016 Symantec Corporation 32
  33. 33. Copyright © 2016 Symantec Corporation 33 GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1) Fiscal Year Ended April 1, 2016 (2) (Dollars in millions, unaudited) Non-GAAP pro forma net revenues GAAP Adj (3) Non-GAAP Symantec Enterprise Security net revenues $ 1,930 $ - $ 1,930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2,528 157 2,685 Consumer Security net revenues 1,670 - 1,670 Total pro forma combined net revenues $ 4,198 $ 157 $ 4,355 Enterprise Security as % of total pro forma combined net revenues 60% 2% 62% (1) For more information about the non-GAAP metrics in this presentation, please see the Appendix to the Press Release that can be found on the investor relations page of our website at: http://www.symantec.com/invest. (2) Blue Coat's fiscal year end is within 93 days of Symantec's fiscal year end, therefore Blue Coat's net revenues from its fiscal year ended April 30, 2016 is combined with Symantec net revenues from its fiscal year ended April 1, 2016. (3) Adjustment for impact of purchase accounting on net revenues.

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