Symantec investor presentation february 2016 final

TRANSFORMATIONThe Next 18 Months

2Copyright © 2016 Symantec Corporation

USE OF GAAP AND NON-GAAP FINANCIAL INFORMATION

Our results of operations have undergone significant change due to the impact of litigation accruals, 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. 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 the Company’s operating results, as well as when planning, forecasting and analyzing 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 website at: www.symantec.com/invest.

http://www.symantec.com/invest


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 the sale of our information management business to The Carlyle Group and the expected benefits to be realized as a result of the sale; statements with respect to the use of proceeds from the sale, including statements regarding the capital allocation program; statements regarding the growth prospects of our security business; and statements with respect to our continuation of our current dividend. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from results expressed or implied in this press release. Such risk factors include those related to: general economic conditions; fluctuations and volatility in Symantec’s stock price; the ability of Symantec to successfully execute strategic plans, including acquisitions or strategic transactions; maintaining customer and partner relationships; 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 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. 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 section of our Form 10-K for the year ended April 3, 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.‐


WHAT CUSTOMERS ARE FACED WITH TODAY

Not Ready For Tomorrow’s Threats

Advanced attacks are lost in a mass of less important alerts

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.

Data is Mobile and Moving to the Cloud

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

Need to Reassure Online Customers

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


Operating one of the world’s largest cyber intelligence networks, we see more threats, and protect more customers from the next generation of attacks.

We help companies, governments and individuals secure their most important data wherever it lives.

THE GLOBAL LEADER IN CYBERSECURITY


1

New on-line acquisition grew 8% y/y

Ahead of plan

56% operating margin

Norton Shopping Guarantee offering increases customer confidence

+3% revenue growth

3

Launched ATP: Endpoint, Email, and Network

1% revenue growth for the 3rd consecutive quarter

2

Q3 HIGHLIGHTS


SYMANTEC AT A GLANCEFY15

Non-GAAP Revenue

FY16 Q3

Revenue

FY16 Q3 Non-GAAP Operating

Margin

Consumer Security $1,917 414 56%

% Y/Y (CC) (5%) (6%)Enterprise Security $2,069 495 5%

% Y/Y (CC) (1%) 1%Total Revenue $3,986 909 28%% Y/Y (CC) (3%) (2%)

Enterprise Security (FY16 YTD)

Threat Protection Information ProtectionWebsite Security Cyber Security Services


Q3 FY16 FINANCIAL SUMMARYRevenue was above midpoint of guidance rangeOperating margin and EPS exceeded guidance Excluding TSAs, operating margin would have been 200 basis points higher

Q3 FY16 operating margin and EPS exceeded guidance

Non-GAAP in $M Guidance Actuals Yr/Yr (FX Neutral)

Total Revenue $890 - $920 $909 (2%)

Operating Margin 25.5% - 27.5% 27.9% N/A

EPS (¢/share) 22¢ - 25¢ 26¢ N/A


FOCUSED ON FOUR PRIORITIES

Improving our Cost Structure

3

Realizing our Unified Security Strategy

1

Efficiently Allocate Capital

4

Building our Enterprise Security Sales Pipeline/GTM

2


REALIZING OUR UNIFIED SECURITY STRATEGY

Users

Data

Apps

Cloud

Devices

Network

Data Center

CYBER SECURITY SERVICESMonitoring Incident Response Simulation Adversary Threat Intelligence

THREAT PROTECTIONEndpoints Data Center Gateway

INFORMATION PROTECTIONData Access

Threat Prevention, Detection, Forensics & Resolution Device, Email, Server, Virtual & Cloud Workloads Available On-premise and in the Cloud

Identity and Data Loss Protection Cloud-based Key Management Cloud Security Broker

UNIFIED SECURITY ANALYTICS PLATFORMTelemetry Threat Analytics Global Intelligence Protection Engines Incident Management

Big data security analytics; available to customers in self-service mode


SYMANTEC NEXT GEN ENDPOINT PROTECTION (SEP)The most robust platform of next generation engines that combine to deliver proactive protection from advanced attacks

Vantage Intrusion

Prevention

SAPEMachine Learning

InsightSONAR

Behavioral Detection

Exploit Protection SymClass MutantX

NETWORK FILE ATTRIBUTES RELATIONSHIP BEHAVIORS HARDENING AUTOMATION CLUSTERING

Blocks attacks by scanning network application layer traffic in real time

Static Attribute Protection Engine (SAPE) blocks malware using advanced signature-less technology

Uses the wisdom of the crowd and artificial intelligence to block 99% of advanced attacks

Advanced machine learning watches programs and immediately blocks abnormal behaviors

Blocks all zero day exploits

Safely processes over 1M indicators of compromise (IOCs)/ day

Identifies key attributes, clusters malware into families


SYMANTEC ADVANCED THREAT PROTECTIONUncover, Prioritize, and remediate today’s most advanced persistent threats

Uncover advanced threats across endpoints, networks, and email gateways, all from a single console

Combines global telemetry with local customer context to uncover attacks that would otherwise evade detectionSearch for any attack artifact across your infrastructure, with the single click of a button

Prioritize what matters mostAggregates intelligence across control points to identify and prioritize systems that remain compromised and require immediate attentionPowered by new Cynic cloud-based sandboxing service that finds and prioritizes the most stealthy and persistent threats

Remediate fastProvides all data a customer needs to know about an attack, in one placeClick once to remediate across endpoints, networks, and email

Leverage existing Symantec investmentsLeverages Symantec Endpoint Security and Email Security.cloud investments, requires no new endpoint agentsMonitor Symantec ATP with Symantec Managed Security Services

ADVANCED THREAT PROTECTION

Global Intelligence Exported Data

Detect Prioritize Investigate Remediate

Advanced Threat Protection

EndpointSecurity

NetworkSecurity

Email Security

3rd party


Data Loss Prevention

Encryption

Identity Access Manager

Validation and ID Protection (VIP)

INFORMATION PROTECTIONOur Information Protection portfolio keeps data protected while keeping employees productive

Track and secure confidential dataDiscover, monitor, and protect confidential information wherever it’s stored and however it’s used—on mobile devices, within data centers, or in the cloud

Encrypt your data in case it falls into the wrong handsFull-disk and removable media encryption for endpoints, email encryption secures sensitive communications, and file share encryption protects files on shared network drives and in the cloud

Give access only to users who need itSingle Sign-on (SSO) with strong authentication, access control, and user management, to control who accesses internal and 3rd-party cloud-based applications

Strong authentication made easyTwo-factor and risk-based tokenless authentication prevents unauthorized access to sensitive networks and applications


CYBERSECURITY SERVICESRely on our 1,000+ Cyber Warriors, around the clock, around the world

Actionable insightsReceive proactive notifications of evolving attack vectors and techniquesDeepSight Intelligence keeps customers informed of vulnerabilities and threats to their organization

Extend customers security program with our experts24/7 monitoring of customers’ entire security infrastructureMonitors every major security product on the market

Respond with speed and precisionReadiness Services help assess, test, and refine response programIncident Response Services provides remote and on-site investigation to help contain attacks, understand their full scope, and ensure that all components have been eradicated

Prepare for what’s nextStrengthen employee cyber-readiness through security education and simulation exercisesIdentify key risks employees are facing and build a comprehensive program to assess and improve security awareness

Incident Response

Managed Security Services

Simulation Services

Threat Intelligence Services

Leader in Gartner Magic Quadrant for Managed Security Services


Protect online business—alwaysEnsure that traffic to and from websites cannot be compromised by attackers

Secure websites, data, and applications 24/7Assure up-to-the-minute visibility into any potential security weaknesses in your website

Deliver trust with every downloadProtect the integrity of software, ensure that customers only run untampered versions of software

Increase sales with the Norton Shopping GuaranteeDrive more online sales with increased customer confidence

WEBSITE SECURITYProtect online business - always

SSL/TLS Certificates

Website Security

Code Signing

Norton Shopping Guarantee


CAPITAL ALLOCATION

On February 4th, increased capital return program to $5.5 billion – returning all the after-tax cash proceeds from the Veritas transaction to shareholders– Declared a $4/share special dividend equaling $2.7 billion and

payable to shareholders on March 22, 2016, to record holders as of the close of business on March 8, 2016

– $2.3 billion in share repurchases by March 2017– $500 million ASR completed in January 2016

Quarterly dividend of 7.5¢/share with a commitment to increasing this dividend as free cash flow grows over timeAnnounced that Silver Lake Partners will make a $500 million strategic investment in Symantec through a convertible senior note


Q&A


CONTACT INVESTOR RELATIONSJonathan Doros(650) [email protected]

Nate Pollack(650) [email protected]

Business

Symantec investor presentation february 2016 final