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  1. 1. Symantec To Acquire MessageLabs October 8, 2008
  2. 2. Forward Looking Statements • This presentation contains forward-looking statements regarding the financial and business results of Symantec and MessageLabs, including statements of expectations regarding consummation of the acquisition, projected growth for computing devices, benefits to Symantec from combining the MessageLabs and Symantec businesses and cost savings opportunities for the combined company. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause each company’s actual results, levels of activity, performance or achievements to differ materially from results expressed in or implied by this presentation, including, among others: whether the companies can successfully develop new products and the degree to which these gain market acceptance; the sustainability of recent growth rates, particularly in consumer products; the anticipation of the growth of certain market segments; the positioning of the companies’ products in those segments; the competitive environment in the software industry; general market conditions; acquisition-related risks, particularly risks relating to integrating the two companies; fluctuations in currency exchange rates; and changes to operating systems and product strategy by vendors of operating systems. • Additional information concerning these and other risk factors is contained in the Risk Factors sections of Symantec’s Form 10-K for the year ended March 28, 2008 filed with the Securities and Exchange Commission. • We assume no obligation to update any forward-looking information contained in this presentation. 2
  3. 3. Announcement Summary • Symantec is acquiring MessageLabs, the global leader in online services for messaging and web security What • Headquartered in Gloucester, UK, with over 550 employees • Combined with MessageLabs, Symantec will be the only company to offer customers the flexibility to manage their Why business using online services, onsite software, or hybrid solutions • MessageLabs will combine with Symantec Protection Network Resulting to create a new Software-as-a-Service group lead by Adrian Organizational Chamberlain, MessageLabs CEO reporting to Enrique Salem, Structure Symantec’s COO • Leading messaging and web security SaaS offerings • 14 worldwide data centers and significant expertise in SaaS sales, operations, and support What MessageLabs Brings to • Over 19,000 clients ranging from small business to the Fortune Symantec 500 located in more than 86 countries • Secures more than 3 billion email connections 3
  4. 4. Strategic Rationale • Expand market leadership in message and web security. Combined we will have more than two times the market share of our nearest competitor • Geographic expansion through up-sell and cross-sell opportunities • Leverage SMB and large enterprise distribution channels to increase penetration of SaaS offerings • Together, we’re the only company with the broadest range of software, appliance and SaaS hybrid messaging security offerings • Complementary capabilities will provide the opportunity for new SaaS offerings in archiving, DLP, compliance, storage and managed endpoints 4
  5. 5. Expanding Opportunity in Software-as-a-Service Worldwide Software On-Demand Market Size and Growth CAGR = 24% Source: IDC 5
  6. 6. Messaging Security is Moving to SaaS Worldwide Messaging Security Market Size and Growth $Ms $4,956 CAGR CAGR = 15% $4,451 $3,973 32% $3,461 $2,940 $2,433 20% $1,978 4% Source: IDC 6
  7. 7. Symantec and MessageLabs are the Market Leaders Worldwide Messaging Security Worldwide Hosted Service Market Share by Vendor, 2007 Market Share by Vendor, 2007 Acquiring the market Together, 2 times the leader in Hosted nearest competitor Messaging Security Source: IDC 7
  8. 8. MessageLabs Globally Distributed Infrastructure with Full Redundancy North America APAC EMEA Client Services Development Global Technical Support Hong Kong Gloucester Gloucester London Toronto New York New York Sydney 8
  9. 9. Industry Leading Service Level Agreements Web Email Anti-Virus Protection  100% protection against Anti-Virus Protection  100% protection from known known viruses and unknown email viruses •Credit is offered if a client infected by a virus •Credit is offered if a client infected by a virus Latency  Average scanning time of 100% of web Virus False Positives  0.0001% FP capture rate content is within 100 milliseconds •Credit is offered if latency exceeds 100 milliseconds •Credit is offered if we do not meet this commitment Service Availability  100% uptime Spam Capture Rate  99% capture rate (95% for •Credit is offered if availability falls below 100% •Client may terminate if availability falls below 95% emails containing Asian characters) •Credit is offered if we do not meet this commitment Archiving Search Performance Guarantee  All customer Spam False Positives  0.0003% FP capture rate search requests will be returned within 180 seconds •Credit is offered if we do not meet this commitment or less Service Availability Guarantee  99.9% uptime for Latency  Average roundtrip time of 100% of email archiving network delivered in less than 60 seconds •Client may terminate if availability falls below 90% •Credit is offered if latency exceeds 1 minute Appliance Replacement Guarantee  If appliance fails during the warranty period, Macaw will repair or Delivery  100% delivery guarantee replace the appliance within 3 business days at no •Client may terminate if we do not meet this cost Technical support / Fault Response  critical - 95% Support Service Availability  100% uptime calls within 2hrs; major - 85% calls within 4hrs; •Credit is offered if availability falls below 100% minor - 75% calls within 8hrs •Client may terminate if availability falls below 95% •Credit is offered if we do not meet this commitment 9
  10. 10. MessageLabs Provides Comprehensive SaaS Coverage for Messaging Security Skeptic Protect Control Secure Recover Boundary Anti-Virus Content Control Archiving Email Encryption Anti-Spam Image Control Policy Based Continuity Encryption Anti-Virus URL Filtering Web Anti-Spyware Anti-Virus Enterprise IM IM Anti-Spam Comprehensive SaaS Solutions for SMB and the Fortune 500 10
  11. 11. Unique Predictive Technology • Continuous development since late 1990s • Robust and scalable, currently handling 2 billion emails per week • Beyond virus and spam – Malware, trojans, worms, phishing, and other threats • Intercepted over 2.5 billion viruses and 150 million phishing emails since 2000 11
  12. 12. “Protect” and “Control” Service Offerings: Mail Filtering Service Overview Control: Content (incl DLP) Protect: AV and AS Control: Image Inbound email 1 Traffic Management 2 SMTP Heuristics User Validation (some clients) 3 Approved and Block lists 4 DUL, RBL, RSS 5 Commercial AV .6 Commercial AS . 7 8 Skeptic . Clean inbox 18.4% 12
  13. 13. Symantec Protection Network: Online Backup Offering Customer Online Backup Premise • Always-on protection • Web-based application • Accessible from anywhere • Private Key Encryption • Redundant Data Centers Internet • Version history • Reporting • Alerting Symantec Data Centers 13
  14. 14. Symantec Protection Network: Online Storage for Backup Exec Customer Online Storage for Backup Exec Premise Online Storage • Secure storage of data for disaster recovery or long term storage • Addresses tape management challenges • Managed from the Backup Internet Exec console Symantec Data Centers 14
  15. 15. NEW: Symantec Online Remote Access (beta) Home, Hotel, Internet Café Online Remote Access Office Online Storage • Secure remote access to computers from anywhere on the Internet, without a VPN • Work in specific files or applications remotely • Transfer files in either direction, remotely print directly to local printers Internet • No pre-installed software required on the controlling computer Symantec Data Centers 15
  16. 16. Expansion Opportunities Provide market-leading technologies to customers as online services DLP Online Services Archiving Expansion Compliance Opportunities Storage Managed Endpoints Registration Perimeter Security and Profile Endpoint Management Endpoint Security Email Provisioning MessageLabs Web Instant Message Symantec Online Remote Access SPN Billing Symantec Online Storage Symantec Online Backup Support Common user interface 16
  17. 17. Go-To-Market Synergies • Extends leadership in SMB and Large Enterprise – Capitalize on cross-selling and up-selling existing SaaS offerings – Broaden global channel reach • Expands geographic market coverage – North America – Emerging markets – Government segment • Broadens offerings to provide full breadth of choice – Software, appliance or SaaS – Hybrid solutions – Bundled offerings 17
  18. 18. Deal Structure • Purchase price of approximately $695 million, subject to foreign currency adjustments, paid in £310 million and $154 million from international cash • Transaction expected to be $0.02 dilutive to FY09 non- Financial GAAP earnings per share. GAAP EPS will be more diluted Terms due to purchase accounting • The transaction is expected to close by the end of the calendar year 2008 • European regulatory approvals Conditions • MessageLabs generated revenue of approximately $145 million during fiscal year 2008, which ended on Financial Details July 31, 2008 18
  19. 19. Symantec and MessageLabs: A Winning Combination Symantec Brings: MessageLabs Brings: • Market leadership in key software • Market leadership in the high markets such as DLP, archiving, growth message and web storage, compliance, and security areas managed endpoints • Global infrastructure with 14 data centers and SaaS expertise • Global presence to expand geographically through up-sell • A platform to protect, control, and cross-sell opportunities encrypt and archive email, web and instant messaging • Financial resources to accelerate innovative hybrid offerings 19
  20. 20. 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.