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Symantec Investor Presentation March 2016

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Symantec Refocused

2 Copyright © 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






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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 use of proceeds from the sale of Veritas, including statements regarding the capital allocation program, including the ASR and special dividend; statements regarding the strategic investment of Silver Lake Partners; 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.


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


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THREAT LANDSCAPE MORE CHALLENGING THAN EVER

Enterprises Are 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 The New Perimeter

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

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


Q3 HIGHLIGHTS

New on-line acquisition grew 8% y/y

Ahead of plan

56% operating margin

Norton Shopping Guarantee offering increases customer confidence

+3% revenue growth

Launched ATP: Endpoint, Email, and Network

1% revenue growth for the 3rd consecutive quarter

Enterprise Security Consumer Security


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SYMANTEC AT A GLANCE

FY15 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 Protection

Website Security Cyber Security Services


Q3 FY16 FINANCIAL SUMMARY

Revenue was above midpoint of guidance range

Operating 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


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FOCUSED ON FOUR PRIORITIES

Improving our Cost Structure

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Realizing our Unified Security Strategy

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Efficiently Allocate Capital

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Building our Enterprise Security Sales Pipeline/GTM

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REALIZING OUR UNIFIED SECURITY STRATEGY

Users

Data

Apps

Cloud

Devices

Network

Data Center

CYBER SECURITY SERVICES

Monitoring Incident Response Simulation Adversary Threat Intelligence

THREAT PROTECTION

Endpoints Data Center Gateway

INFORMATION PROTECTION

Data 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 PLATFORM

Telemetry Threat Analytics Global Intelligence Protection Engines Incident Management

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


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NORTON GROWTH DRIVERS

Benefit from modest PC

security market growth

Increasing threat activity

drives new users

TelCo / Mobile – growing success in an increasingly

multi-device world

Well-positioned for growth in the

Consumer IoT market


NORTON WELL-POSITIONED IN THE CONSUMER SECURITY MARKET

Unrivaled Protection

• 63M devices, 4M SMBs, 6.8M mobile devices protected

• 2.4T attacks blocked, 540M searches protected each year

Leveraging Intelligence of Combined Enterprise & Consumer Network

• 175M endpoints, 57M attack sensors, 157 countries

Premium Brand

• 99% aided awareness in US

• Best-in-class unaided awareness in all top markets

Technology Leadership

• Most awards for performance and innovation

• 34x PCMag Editors’ Choice winner

Revenue Market Share CY14

$5.1B

Total Market Size

CY15 CY18

CAGR

+2.4%

9% Trend Micro

4% ESET

5% AVG

15% McAfee

42% Norton

10% Kaspersky

15% Others

WW Consumer Security Norton Competitive Advantage

$5.4B

Source: IDC and Company data


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CONSUMER MOBILE SECURITY TAM SMALL BUT GROWING

Robust Protection Through Norton Mobile Insight

• 15M Android Apps in database, in 200 App Stores

• 3M Malicious Apps identified, another 9M with intrusive behavior

Norton Mobile Strategies

• Part of Norton multi device value prop

• Introduce customers to Norton Service

• Stand alone revenue from Premium

• Provides telemetry and insights to Enterprise

Paid Share

$217M

Total Market Size

CY15 CY16

+15%

85% Paid for

15% Free

WW Consumer Mobile Security Mobile Growth Opportunities

$249M

Source: IDC and Company data


ENTERPRISE SECURITY | GROWTH DRIVERS

Addressable Market Size Key Growth Areas

11.7 13.8

3.2 4.3 3.9 6.5

6.9

1.5

3.6

CY15 CY18

Threat Protection

CY15 CY18

Information Protection

CY15 CY18

Cyber Security Services

Expanded

Current

+35% TAM

+50% TAM

+50% TAM

($ in billions) Threat Protection

• Renaissance underway in Endpoint Security to upgrade devices with next generation functionality


• Move to cloud requires increase need for data loss protection and user authentication


• Lack of qualified security professionals and complexity of ever changing threat environment requires outsourcing security monitoring and response

Analytics Offerings

• Leverage big data analytics for detecting and remediating targeted attacks and zero day vulnerabilities

Enterprise Security (FY16 YTD)

Threat Protection


Website Security


Source: IDC, Gartner, and Company data


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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

SAPE Machine Learning

Insight SONAR

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

* AV TEST- Annual Best Protection Award, February 2016 “Symantec scored 100% for protection against zero-day attacks”

AV-Comparatives/MRG Effitas Test February 2016 “Symantec Endpoint Protection blocked 100% of in-the-wild malware attacks with no false positives”

Dennis Technology Labs, December 2015 “The most accurate appliance was Symantec ATP”

Miercom, Dec 2015 “Symantec ATP scored 100% against advanced evasive techniques”


SYMANTEC ADVANCED THREAT PROTECTION Large and sticky Endpoint and Email install base offers ATP upsell opportunity

ATP is an upsell opportunity into endpoint and email security install base

• 370k customers representing 110 million endpoint security devices

• 45K email customers representing 15.4M end users

• Current ASP for endpoint security is mid single digits

• Upsell opportunity is $15-$25 per endpoint

• Competitors charging upwards of $40 per endpoint per module

• $2b ATP up-sell opportunity over 3-5 years

ADVANCED THREAT PROTECTION

Global Intelligence Exported Data

Detect Prioritize

Advanced Threat

Protection

Investigate Remediate

Endpoint

Security

Network

Security

Email

Security

3rd party

https://www.av-test.org/en/award/2015/




: http:/www.av-comparatives.org/wp-content/uploads/2016/02/avc_mrg_prot_2016_02_24_cyl_sym_en.pdf



http://dennistechnologylabs.com/reports/s/a-m/symantec/DTL_2015_APT.1.0.pdf

http://miercom.com/pdf/reports/20151026.pdf




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Data Loss

Prevention

Encryption

Identity Access

Manager

Validation and ID

Protection (VIP)

INFORMATION PROTECTION Our Information Protection portfolio keeps data protected while keeping employees productive

Track and secure confidential data Discover, 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 hands Full-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 it Single 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 easy Two-factor and risk-based tokenless authentication prevents unauthorized access to sensitive networks and applications


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

Actionable insights Receive proactive notifications of evolving attack vectors and techniques

DeepSight Intelligence keeps customers informed of vulnerabilities and threats to their organization

Extend customers security program with our experts 24/7 monitoring of customers’ entire security infrastructure

Monitors every major security product on the market

Respond with speed and precision Readiness Services help assess, test, and refine response program

Incident 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 next Strengthen employee cyber-readiness through security education and simulation exercises Identify 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


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

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

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

Increase sales with the Norton Shopping Guarantee Drive more online sales with increased customer confidence

WEBSITE SECURITY Protect online business - always

SSL/TLS

Certificates

Website

Security

Code Signing

Norton Shopping

Guarantee


CAPITAL ALLOCATION On February 4th, announced board increased capital return program to $5.5 billion – plans to return all the after-tax cash proceeds from the Veritas transaction to shareholders – $500 million ASR completed in January 2016 – Paid a $4/share special dividend equaling $2.7 billion on March 22nd – $2.3 billion in share repurchases by March 2017

• Of which, $1 billion ASR launched on March 22nd

Quarterly dividend of 7.5¢/share with a commitment to increasing this dividend as free cash flow grows over time

Announced that Silver Lake Partners has made a $500 million strategic investment in Symantec through a convertible senior note


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CONTACT INVESTOR RELATIONS

Jonathan Doros (650) 527-5523 [email protected]

Nate Pollack (650) 527-7906 [email protected]

Documents

Symantec - s1.q4cdn.comKaspersky 15% Others WW Consumer ... Identifies key ... AV-Comparatives/MRG Effitas Test February 2016 “Symantec Endpoint …s1.q4cdn.com/585930769/files/doc_presentations/2016/Symantec... ·