1. finance
2. accounting and auditing

Investor Presentation
May 2015
Investor Presentation
May 2015
Forward Looking Statements This presentation contains statements regarding 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 financial guidance and targets (as a
combined company and by business segment); our proposed separation into two publicly traded companies; the projected market
growth rates and margin expansion opportunities for the security business and the information management business; statements
regarding our competitive advantages in security and information management; statements with respect to the proposed timing of
the separation; and statements with respect to proposed capital allocation strategies for both Symantec and Veritas. 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 presentation. 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 industries in which
we operate; 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 and our Form 10‐Q for the
quarter ended January 2, 2015.
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.
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Investor Presentation
May 2015
Use of GAAP and Non‐GAAP Financial Information
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. 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 relations’ page of our website
at www.symantec.com/invest.
Reconciliations for our financial results and guidance can be found on Symantec’s investor relations website.
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At Symantec, we protect your information wherever it’s stored or accessed.
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Investor Presentation
May 2015
Protecting the world’s information requires great people.
• More than 19,000 Employees in more than 50 Countries
• 4th Largest Software Company in the WORLD
• Largest IT Security Company in the WORLD
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We do security and a whole lot more.
•
•
We have the best visibility into what attackers are doing because we operate the largest civilian cyberintelligence threat network in the world.
We are pioneering new solutions in growing markets like mobile, cloud, appliances, backup, data loss prevention, managed security services and authentication.
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Investor Presentation
May 2015
Investment Thesis
• Operates in growing markets – backup appliances, mobile, cloud, advanced threat protection, information protection, and cyber security services – where IT spend continues to grow
• Leverages the world’s largest civilian cyberintelligence threat network to provide faster and better protection – Broadest set of market‐leading brands across security and backup in the industry
– Global base of customers from consumers to large enterprises and governments
• Opportunity to grow and increase profitability to create shareholder value
• Strong cash flow generation and balance sheet to allocate towards growth initiatives
• Continue to return significant cash to shareholders with approximately 50% of free cash flow returned through dividends and buybacks
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4Q15 Results
• Expanded Norton operating margin to 55%, increasing 610 bps Y/Y and 285 bps Q/Q in CC
• DLP and enterprise endpoint protection grew 33% and 6% Y/Y in CC, respectively
• IM revenue growth accelerated from 5% to 6% Y/Y in CC from 3Q to 4Q with NetBackup software and appliances growing double‐digits Y/Y in CC
1 Non‐GAAP
% Y/Y Growth (CC)
Non‐GAAP Revenue ($ millions) 1
$1,548
1%
Deferred Revenue ($ millions)
$3,664
1%
Non‐GAAP Operating Margin1
25.6%
30 bps
43¢
NA
Non‐GAAP EPS1
$6.8
Non‐GAAP Revenue ($ in billions)
• Implied billings growth of 2% Y/Y in CC, marking our 4th consecutive quarter of growth
4Q15
$6.7
0%
$6.6
‐3%
$6.5
$6.4
FY14
Non‐GAAP Revenue
FY15
% Y/Y Growth (CC)
financial measure. See www.symantec.com/invest for a reconciliation to the applicable GAAP financial measure
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Investor Presentation
May 2015
FY15 Highlights
Achieved our Profitability Targets
Returning to Growth
Implied Billings1 & Def. Rev Growth (in CC)
Implied Billings Growth
4%
Operating Margin1
27%
Executed on Operational Initiatives
Growth and efficiency initiatives delivered 27%
Deferred Revenue Growth
1%
25%
‐8%
1 Non-GAAP
$150M+
30%
in incremental operating profit, and we are tracking at a run‐rate of ~$250M target in 3Q15
‐6%
FY14
Hit
FY15
FY13
FY14
into FY16
FY15
financial measure. See www.symantec.com/invest for a reconciliation to the applicable GAAP financial measure
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FY15‐17: Path to Accelerating Growth and Improving Profitability
FY15 FOCUS
FY16 ACCELERATE
FY17 UNLOCK VALUE
Targets
Rev. Growth:
Op. Margin:
Guidance
Rev. Growth:
Op. Margin:
EPS Growth:
Rev. Growth:
Op. Margin:
EPS Growth:
0% 27.3%
~1% • Achieved profitability targets
• Right‐sized cost structure
• Returned cash to shareholders
•
•
•
•
0 – 2% 29% – 30% 7 – 13% Build on FY15 growth momentum
Continue to improve margin
Execute on separation
Deliver on product roadmap
1. FY15 revenue and EPS growth adjusted for FX. Includes extra week in the June 2014 quarter.
2. Op. margin and EPS are non‐GAAP financial measures. See www.symantec.com/invest for a reconciliation to the applicable GAAP financial measure.
2% – 6% 30% – 32% Security
Rev. Growth:
Op. Margin:
1% – 4% 30% – 33% Rev. Growth:
Op. Margin:
5% – 8% 29% – 30% 3. Op. margin expansion at constant currency.
4. FY16 revenue and EPS growth adjusted for FX and extra week in the June 2014 quarter.
5. FY16 and FY17 revenue and op. margin, and FY16 EPS assume FX rate of €/$ 1.13.
6. FY16 and FY17 revenue and op. margin pro forma for combined Symantec Security and Veritas.
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Investor Presentation
May 2015
Symantec Security Strategy Leverages Unique Assets
Best‐in‐Class
Security Products
•
Consumer
•
Enterprise
–
Unified Security Analytics Platform Norton Security
–
Symantec Threat Protection –
Symantec Information Protection
•
Security Big Data Analytics
•
Unparalleled scope of telemetry (Symantec and 3rd Party)
•
Unrivalled visibility into real‐time global threats •
Powers Symantec and 3rd party security analytics applications
Cyber Security Services •
•
Full‐suite of services
–
Monitoring services
–
Incident response services
–
Threat intelligence services
Supported by 500+ world‐class cyber security experts and
9 global threat centers
Our Competitive Advantage: Global Scale & Real‐Time Visibility
We see more, analyze more, and therefore protect
from more cyber threats than any other company in the world
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Symantec Enterprise Security | RAPID RELEASE CYCLES
18 MONTH ROADMAP
ATP
(Network)
ATP
(Email, Endpoint)
Cloud Endpoint
Management
Email Security
with DLP
Endpoint
Forensics
Endpoint
Remediation
DLP/
Office365
DLP/
Box.Net
DLP/
SFDC & WDAY
DLP
As a Service
Biometric
Authentication
Cloud
Security Broker
User Behavioral Analytics
Identity
As a Service
IR Retainer
Service
Simulation
Service
ATP Monitoring
Service
MSS Self‐Service Admin Portal
IR Readiness Assessment
SymGauge
App (TasteTest)
Targeted Attack Detection App
Incident Investigation App
Moneyball
App
Analytics Platform Internal Preview
Analytics Platform Customer Preview
Analytics Platform
Gen. Availability
Analytics Platform
3rd Party SDK
THREAT
PROTECTION
INFORMATION
PROTECTION
CYBER
SECURITY
SERVICES
UNIFIED
SECURITY ANALYTICS
New Product
Enhanced Product
Cloud Workload Protection
Datacenter Security
As a Service
Cloud based
Key Management
IR Managed Service
MSS Log Mgmt
As a Service
Preview Releases
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Investor Presentation
May 2015
Veritas | PRODUCT STRATEGY
Expand best‐in‐class Foundational portfolio Deliver next‐generation Availability solutions Enable next‐generation
Insight solutions •
Expand across backup, storage management, business continuity, archiving and eDiscovery.
•
Focused on managing and moving mission‐critical data in a hybrid cloud world. •
Provide visibility, action, and automated control across an organization’s information landscape.
•
Deliver capabilities via software, integrated appliances or cloud.
•
Deliver through a coordinated orchestration architecture.
•
Deliver through an intelligent information fabric that integrates our portfolio and third‐party ecosystems.
Our Competitive Advantage: Heterogeneity & Scale
Make every byte of data actionable by ensuring availability and revealing insights
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VERITAS | PRODUCT ROADMAP
Business Continuity &
Storage Management
FY17
 Software Defined Storage flexibility
Q
1
FY16
 Seamless availability across clouds
eDiscovery, Archive,
& File Classification
Next Generation Insight
 Insights from more locations
 Insights from NetBackup catalog
Enterprise Vault 12
Retention Manager
eDiscovery 9
Q
3
Q
1
 Cloud First designs
 Simplicity at scale
Next Generation Availability
NetBackup 7.8
Q
4
Q
2
Backup & Recovery,
Integrated Appliances
InfoScale 7.0
NetBackup 52XX (200TB)
Veritas Velocity 1.0
NetBackup 5330 Appliance
(460TB)
HP Helion & Symantec Continuity 1.0
Veritas Resiliency Platform 1.0
NetBackup 7.7/2.7
Information Map 1.0
Data Insight 5.0
Veritas Risk Advisor 7.0
BE 15
Disaster Recovery Advisor 6.4
Storage Foundation HA 6.2
NetBackup Self Service
eDiscovery 8.1
NetBackup 5330 Appliance
(229TB)
Enterprise Vault 11.0.1
Availability
Insight
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Investor Presentation
May 2015
Separation Timeline
FY2016
FY16 Q1
FY16 Q2
FY16 Q3
FY16 Q4
Sales force separated
Form 10 Filing
Credit Rating Discussions
Operational Separation
(October 3, 2015)
Legal Separation
(January 2, 2016)
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Capital Allocation Strategy
Pre‐Separation
Continue to return the same level of cash dividends and buybacks as in FY15 until legal separation Post‐Separation
Security
Attractive dividend yield and share repurchase program
More details on capital structure and allocation to come post filing the Form 10
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Investor Presentation
May 2015
Unlocking Value through Focus and Growth
Focus drove our expanded operating margin & investments for growth in FY15
Global scale & real‐time visibility
drives enterprise security growth & mitigates Norton decline
Leverage our scale & unique assets to drive differentiated offerings in FY16‐17
Differentiated approach
of Availability & Insight
drives growth 17
At Symantec, we protect your information wherever it’s stored or accessed.
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Investor Presentation
May 2015
Contact Investor Relations
Helyn Corcos
Vice President
(650) 527‐5523
[email protected]
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