Q4/2017

THE FORTINET SECURITY FABRIC SECURES IoT

Learn. Segment. Protect.

$2M

~$1.275B

2002 2016

REVENUE

CAGR 57%

Founded: Nov. 2000

First Product Release: May 2002

Fortinet IPO: Nov. 2009

NASDAQ: FTNT

Headquarters: Sunnyvale, California

Employees: 4,900+

FY 2016 Revenue: $1.275B

Q3 2017 Revenue: $374M

Q3 2017 Billings: $432M

Q3 2017 EPS (GAAP): $0.15

Q3 2017 EPS (non-GAAP): $0.28

Market Cap (Oct. 26, 2017): $7B

$1.5B Cash and No Debt

Units Shipped to Date: 3.4M+

Customers: 330,000+

Global Patents Issued: 439

Global Patents Pending: 291

OVERVIEW

Operations3%

G&A7%

Service & Support20%

Sales & Marketing

45%

R&D25%

Americas43%

EMEA37%

APAC20%

High-End Appliances41%Large enterprises & telcos/ service providers

Entry-Level Appliances30%

SMBs, branch offices, and retail

Mid-Range Appliances29%

Enterprises

Americas63%

EMEA24%

APAC13%

EMPLOYEESby Function

EMPLOYEECOST

by Region

REVENUEby Region

FortiGate Billings

by Segment

Fortinet is a major player in many segments of the fast-growing Network Security and WLAN markets.

Fortinet’s mission is to deliver the most innovative, highest-performing network security fabric to secure and simplify your IT infrastructure. We are a leading global provider of network security appliances for carriers, data centers, enterprises and distributed offices.

Q3 2017

25

20

15

10

5

02016 2019

$33.6B

$27.3B

Network Security and WLAN Market Size

Source: IDC Worldwide Endpoint Security Forecast, 2016–2020IDC Worldwide Security and Vulnerability Management Forecast, 2016–2020IDC Worldwide Enterprise WLAN Forecast, 2016–2020IDC Worldwide Specialized Threat Analysis and Protection Forecast, 2016–2020IDC Worldwide Web Security Forecast, 2016–2020IDC Worldwide IT Security Products Forecast, 2015–2019

30

35

Messaging

EnterpriseEndpoint

Web Security

EnterpriseWLAN

NetworkSecurity

ATP

SIEM

2

NextGen Firewall/IPS/VPN/AVSecure WirelessSwitch/WANASICDDoSSecurity Analytics/IoTADC/Load BalancerClient/MailCloud ServiceMisc-Machine Learning/Web Access/SDN/Sandboxing

281

142

87

49

37

37

29

2522 21

0 50 100 150 200 250 300 350 400 450

Check Point 69

Palo Alto Networks 109

FireEye 105

Barracuda 41

413

Sophos 52

SonicWall 115

WatchGuard 44

#1 FASTEST GROWING ENTERPRISE NETWORK SECURITY COMPANY

#1 MOST ADOPTED NETWORK SECURITY SOLUTION

Source: IDC Worldwide Security Appliances Tracker, April 2017 (based on annual unit shipments)

2011 2012 2013 2014 2015 2016

500,000

600,000

700,000

400,000

300,000

200,000

100,000

Check Point

Palo Alto Networks Juniper Networks

Cisco

3-5XOther comparable Network Security Companies

Detection Prevention & Remediation Integration Performance & Value

100s of Companies < 50 < 5

Fortinet Is the Only Company to Excel at All Key Stages of Network Security

Based on patents issued as listed by the US Patent and Trademark Office

Fortinet Issued Patents

and Applications (Global)

#1 SECURITY INNOVATOR

Based on network security related billings growth of recognized Enterprise Firewall market leaders1

Based on annual unit shipments (IDC)

0

5%

10%

15%

20%

25%

-10%

-5%

Palo Alto Networks

17%

24%

Check Point 0%

Cisco -4% Juniper

-6% 1 Most recently disclosed financial information as of Nov. 7, 20172 Publicly reported quarterly billings3 Calculated as revenue recognized plus change in deferred revenue from beginning to end of most recent period

2

2

3

3

3

as of Sept.30 2017

3

EMERGING SECURITY CHALLENGES

Today’s Network Is BorderlessIoT and the cloud have

expanded the attack surface−

the “edge” is no longer clearly

defined. There are more ways

in and more ways out.

Slow Is BrokenSecurity has become a

bottleneck; enterprises

compromise security features

to achieve performance goals.

Complexity Is the Enemy of SecurityToo many point solutions

create security gaps and a

slow response to threats; no

communication or coordination.

Perf

orm

ance

Degra

dat

ion

1980s Today

Generation 3INFRASTRUCTURE

Generation 2CONTENT

Generation 1CONNECTION

Machine toMachine Attacks

AdvancedTargeted Attacks

MaliciousApps

MaliciousSites

SpamBotnets

Viruses& Spyware

Intrusion& Worms

Fabric

Advanced ThreatProtection

Anti-spam

Lock & Key

Firewall/VPN

IPS

Antivirus

Web Filter

Application Control

Layer 5-7:Content & Application

Layer 3-4:Connection

Layer 1-2:PhysicalHardware Theft

APP

URL

Security Fabric

NGFW/UTM

Stateful Firewall

First-generation network security, known as stateful firewalls, focused on securing the connection. Led by Fortinet, a second

generation of network security, next-generation firewalls and UTMs, expanded inspection to the application and content.

4

THE FORTINET SECURITY FABRIC

THIRD-GENERATION NETWORK SECURITY

BROADThe Fabric covers the entire attack surface—security can be applied to the network, endpoints, access, applications, and cloud, and visibility extended to other vendor solutions.

POWERFULThe Security Fabric utilizes security processors to reduce the burden on infrastructure, allowing comprehensive security without affecting performance.

AUTOMATEDThe Security Fabric enables a fast and coordinated response to threats—all elements can rapidly exchange threat intelligence and coordinate actions.

NOC/SOC

Cloud

Partner API

Access

Client/IoT

ThreatIntelligence

Application

Network

FortiGate VMAWS and AzureFortiCASB

FortiMailFortiWeb

FortiManagerFortiAnalyzerFortiSIEM

FortiAPFortiSwitch

FortiSandboxFortiGuard

FortiClient

FortiGate

5

FortiGate 1500D

Fortinet’s core firewall platform, FortiGate, is powered by our purpose-built operating system, security processors, and threat intelligence from FortiGuard Labs.

HIGH-END APPLIANCES

FortiGate 5144C

155

Gb

ps

- 1.

12 T

bp

s80

- 3

20 G

bp

s52

- 8

0 G

bp

s

HIGH-PERFORMANCE NETWORK SECURITY

Hypervisor

Deployment Service Provider or Enterprise

Form Factor 2U/3U Appliance and Chassis

Interfaces 10, 40, and 100 GbE

FW Throughput 10 Gbps to more than 1 Tbps

Special Features Carrier Class

Deployment Service Provider or Enterprise

Form Factor 1U/2U/3U Appliance

Interfaces 10, 40, and 100 GbE

FW Throughput 16 to 320 Gbps

Special Features VDOM Management, Ultra-low Latency

Deployment Edge or Border Firewall

Form Factor 1U/2U/3U Appliance

Interfaces 1, 10, and 40 GbE

FW Throughput 1 to 160 Gbps

Special Features Advanced Threat Protection

Deployment Distributed Enterprise or SMB

Form Factor Desktop

Interfaces High-density 1 GbE

Throughput 1 to 3.5 Gbps

Special Features Wi-Fi, PoE, Ruggedized

Deployment East/West Data Center

Form Factor Virtual Machine

SDN Integration Cisco ACI, VMware NSX, OpenStack

Throughput Hardware Dependent

Hypervisors All Major Hypervisors Supported

Licensing Perpetual, Subscription, Metered

Deployment AWS, Microsoft Azure, Google

Form Factor Cloud Virtual Machine

Throughput Cloud Dependent

Licensing BYOL or On-Demand

Data Center Firewall (DCFW)/Carrier Class Firewall (CCFW)

Internal Segmentation Firewall (ISFW)

Next-Generation Firewall (NGFW)

Unified Threat Management (UTM)

Private Cloud−Virtual Machine Firewall

Public Cloud−Cloud Firewall

FortiGate 3800D

100G

FortiGate 3700D

40G

FortiGate 3200D

FortiGate 2000E

FortiGate 7060E

40G

100G

FortiGate 3980E

100GNEW

40G

FortiGate 7040E

40G

100G

6

FortiGate 60E

FortiGate 30E

FortiGate 80E

FortiGate 100E

FortiGate 300E

FortiGate 500E

MID-RANGE APPLIANCES

ENTRY-LEVEL APPLIANCES

FortiGate 200E

7.4 - 36 Gb

ps

950 Mb

ps - 3.5 G

bp

s

HIGH-PERFORMANCE NETWORK SECURITY FortiGate 800D

FortiAP U421EV FortiAP U423EV

Platform (FortiGate)

¡¡ Hardware or VM¡¡ Deployment Mode¡¡ # and Type of Ports¡¡ Throughput

Base HW/VM List price

Support (FortiCare) & Services

¡¡ 24x7 + Prem. Replacement + Advanced Services¡¡ FortiCare 360°¡¡ Professional Services

25% Varies Varies

+ 10% Daily rate

Subscriptions (FortiGuard)

¡¡ Individual Threat Intelligence Feeds¡¡ UTM or Enterprise Bundles

+ 20% ea. or +40/65%

Term

¡¡ 1, 3, 5 year¡¡ Discount for multi-year term length

The Security Processor Advantage

VS.

MOREPERFORMANCE

LESSLATENCY

LESSSPACE

LESSPOWER

CPU & Serial Processing-based

Fortinet SPU-basedParallel Path Processing

Slow, Not Scalable& Poor TCO

FlexiblePolicy

AcceleratesNetworkTraffic

AcceleratesContent

Inspection

FW

IPsec VPN

SSL VPN

IPS

40 Gbps

25 Gbps

28 Gbps

20 Gbps

6X - 12X performance

FortinetSystem-on-a-Chip

Optimized for Entry-level

Form Factors

5X FW8X/11X SSL/IPsec VPN5X IPS5X Concurrent Sessions3X Power Efficiencyvs. similarly priced offerings

based on Intel E5 2640v2(8 core 2Ghz)

802.11ac Wave 2

FortiGate 50E

SIMPLE PRICING MODEL

Fortinet Security Processors radically increase the security performance, scalability, and

throughput of Fortinet solutions while greatly shrinking space and power requirements,

compared to CPU-based solutions.

The FortiOS AdvantageFortiOS is the foundation of the Fortinet Security Fabric, consolidating many technologies

into a simplified, single policy and management framework. FortiOS provides customers with

superior protection, deeper visibility and control, reduced complexity, and greater operational

efficiency across their entire attack surface.

1

2

3

4

Networking Security Integration Management

Firewall Intrusion Prevention Email NOC/SOC/Policy

VPN Application Control WAF Reporting & Compliance

Routing Anti-malware Endpoint Topology Views

Switching Anti-botnet Sandboxing Management

SD-WAN Web Filtering Vulnerability Analytics

Wi-Fi Controller Mobile Security Partner APIs VDOM/ADOM

More... More... More...

The FortiGuard Threat Intelligence AdvantageFortinet solutions are powered by the security services developed by FortiGuard Labs.

Working with world-class, in-house tools and data collected from sensors around the globe,

our 200+ researchers and analysts discover breaking threats and then update FortiGuard

threat intelligence services to protect over 330,000 customers every day.

Enterprise Bundle x x x x x x x

UTM Bundle x x x x x

Applic

ation

Contro

l*

IPS Antiv

irus/A

nti-b

otnet

Anti-

spam

Web Fi

lterin

g

Mobile

Secu

rity

Adv. T

hreat

Protec

tion/

Cloud S

andb

ox

Indus

trial S

ecuri

ty

Vulne

rabilit

y

* Application Control comes standard with every FortiCare support contract

Individual Subscription Services

NEW

NEW

FortiGate 90E

NEW

7

#1 BROADEST SECURITY PROTECTION

NETWORK SECURITY FortiGate firewalls excel in every deployment scenario

ENDPOINT, APPLICATION AND ACCESS SECURITYThe Security Fabric connects an integrated, broad portfolio of complementary security and access solutions

CLOUD SECURITYSingle management console and policy extends out to

private and public cloud

IoT and OT SECURITYThe Security Fabric enhances visibility and extends security

out to the IoT and OT Infrastructure

Partner API

Management Endpoint

SandboxingSIEM

Email

WAF

WiFi

Switch

Private SaaSPublic

Coverage for the entire attack surface from IoT/Endpoint to Access to Core to Application to Cloud

8

#1 BROADEST SECURITY PROTECTION

Step Level Objective

NSE 1 Develop a foundational understanding of network security concepts.

NSE 2Develop the knowledge and skills necessary to sell key Fortinet solutions. (For Fortinet employees and partners only)

NSE 3Sales Associate

Develop the knowledge and skills to sell Fortinet products. (For Fortinet employees and partners only)

NSE 4Professional

Develop the technical knowledge and skills needed to configure and maintain a FortiGate Next-Generation Firewall solution.

NSE 5Analyst

Develop a detailed technical understanding of how to implement network security management and analytics.

NSE 6Specialist

Develop an understanding of advanced security technologies beyond the firewall.

NSE 7Troubleshooter

Demonstrate a deep technical understanding of key Fortinet solutions.

NSE 8Expert

Demonstrate the ability to design, configure, install, and troubleshoot a comprehensive network security solution in a live environment.

FortiCare

Our FortiCare customer support team provides global technical

support for all Fortinet products. With support staff in the Americas,

Europe, Middle East, and Asia, FortiCare offers services to meet the

needs of enterprises of all sizes.

ProfessionalServices24x7

Become a Fortinet Network Security Expert!

Fortinet’s Network Security Expert (NSE) Program is an 8-level

training and assessment program designed for customers, partners,

and employees, with over 83,000 security certifications to date.

Validate YourSecurity Experience

DemonstrateValue

AccelerateSales

12345678

SecurityAuditServices

360º

NETWORK SECURITY FortiGate firewalls excel in every deployment scenario

ENDPOINT, APPLICATION AND ACCESS SECURITYThe Security Fabric connects an integrated, broad portfolio of complementary security and access solutions

CLOUD SECURITYSingle management console and policy extends out to

private and public cloud

IoT and OT SECURITYThe Security Fabric enhances visibility and extends security

out to the IoT and OT Infrastructure

Partner API

Management Endpoint

SandboxingSIEM

Email

WAF

WiFi

Switch

Private SaaSPublic

Coverage for the entire attack surface from IoT/Endpoint to Access to Core to Application to Cloud

9

Palo AltoNetworks

IBM

JuniperNetworks

FortinetIntel

Security

HPE

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%$20 $10 $0$30$40$50$60$70$80$90$100$110$120$130$140

100%

*TrendMicro

TCO per Protected Mbps

Secu

rity

Eff

ectiv

enes

s

Average

Average

• Fortinet FortiGate 3000D v5.4.0, build 7184 • HPE TippingPoint S7500NX v3.7.2.4252 • IBM Security Network Protection XGS 7100 v5.3.2.1

PRODUCTS TESTED

On March 1, 2016, TippingPoint, owned by Hewlett Packard Enterprise (HPE), submitted the S7500NX v3.7.2.4252 to the NSS Labs DCIPS Public Group Test. During testing, NSS discovered a number of security issues, which caused the product to receive a Caution rating. After testing began, Trend Micro finalized the acquisition of TippingPoint from HPE (March 8, 2016). As the new owner of TippingPoint, Trend Micro was made aware of the test results. Trend Micro quickly took action, resolved the issues, and provided NSS with a late submission for testing. NSS confirmed TOS v3.8.3.4494 resolved the security is-sues found in the HPE version of the product, and also improved both Security Effectiveness and performance (see individual Test Report). The NSS Security Value Map™ (SVM) is a point-in-time measurement, and due to the timing of the acquisition, the HPE version of the product is represented in the SVM. How-ever, in light of these unusual circumstances, we have included this notation to inform our enterprise clients of the corrective actions taken by Trend Micro.

*

• Intel Security McAfee Network Security Platform NS9100 v8.2.5.120 • Juniper Networks SRX5400 v12.3X48-D18 • Palo Alto Networks PA-7050 v7.0.4

DATA CENTER INTRUSION PREVENTION SYSTEM (DCIPS) SECURITY VALUE MAP™

JUN

E 2

016

Data Center IPS FortiGate 3000D

INDEPENDENTLY TESTED AND VALIDATED PROTECTION

UNPARALLELED THIRD-PARTY CERTIFICATION

NGFW FortiGate 3200D & 600D

10

Palo AltoNetworks

IBM

JuniperNetworks

FortinetIntel

Security

HPE

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%$20 $10 $0$30$40$50$60$70$80$90$100$110$120$130$140

100%

*TrendMicro

TCO per Protected Mbps

Secu

rity

Eff

ectiv

enes

s

Average

Average

• Fortinet FortiGate 3000D v5.4.0, build 7184 • HPE TippingPoint S7500NX v3.7.2.4252 • IBM Security Network Protection XGS 7100 v5.3.2.1

PRODUCTS TESTED

On March 1, 2016, TippingPoint, owned by Hewlett Packard Enterprise (HPE), submitted the S7500NX v3.7.2.4252 to the NSS Labs DCIPS Public Group Test. During testing, NSS discovered a number of security issues, which caused the product to receive a Caution rating. After testing began, Trend Micro finalized the acquisition of TippingPoint from HPE (March 8, 2016). As the new owner of TippingPoint, Trend Micro was made aware of the test results. Trend Micro quickly took action, resolved the issues, and provided NSS with a late submission for testing. NSS confirmed TOS v3.8.3.4494 resolved the security is-sues found in the HPE version of the product, and also improved both Security Effectiveness and performance (see individual Test Report). The NSS Security Value Map™ (SVM) is a point-in-time measurement, and due to the timing of the acquisition, the HPE version of the product is represented in the SVM. How-ever, in light of these unusual circumstances, we have included this notation to inform our enterprise clients of the corrective actions taken by Trend Micro.

*

• Intel Security McAfee Network Security Platform NS9100 v8.2.5.120 • Juniper Networks SRX5400 v12.3X48-D18 • Palo Alto Networks PA-7050 v7.0.4

DATA CENTER INTRUSION PREVENTION SYSTEM (DCIPS) SECURITY VALUE MAP™

JUN

E 2

016

Data Center IPS FortiGate 3000D

The Only NSS Labs Recommended Edge to Endpoint ATP Solution

Fortinet has participated in the following Real-world group tests, open to the industry, and conducted by NSS Labs. In doing so, Fortinet stands out as the only vendor to provide an ATP Solution that is NSS Labs Recommended from the data center to the edge to the endpoint in the latest group tests.

¡ NGFW ¡ DC IPS ¡ Web Application Firewall ¡ Endpoint Protection ¡ Breach Detection (Sandbox)

Breach Detection FortiSandbox 2000E

11

Copyright © 2017 Fortinet, Inc. All rights reserved. Fortinet®, FortiGate®, FortiCare® and FortiGuard®, and certain other marks are registered trademarks of Fortinet, Inc., and other Fortinet names herein may also be registered and/or common law trademarks of Fortinet. All other product or company names may be trademarks of their respective owners. Performance and other metrics contained herein were attained in internal lab tests under ideal conditions, and actual performance and other results may vary. Network variables, different network environments and other conditions may affect performance results. Nothing herein represents any binding commitment by Fortinet, and Fortinet disclaims all warranties, whether express or implied, except to the extent Fortinet enters a binding written contract, signed by Fortinet’s General Counsel, with a purchaser that expressly warrants that the identified product will perform according to certain expressly-identified performance metrics and, in such event, only the specific performance metrics expressly identified in such binding written contract shall be binding on Fortinet. For absolute clarity, any such warranty will be limited to performance in the same ideal conditions as in Fortinet’s internal lab tests. Fortinet disclaims in full any covenants, representations, and guarantees pursuant hereto, whether express or implied. Certain offerings mentioned herein may not be generally available, and Fortinet reserves the right to change, modify, transfer or otherwise revise this publication without notice, and the most current version of the publication shall be applicable. Revision: Q4 / 2017 v3 11.27.17

Edward JonesLeading North American investment firm (USA)Scope: Protection and access for data centers and over 13,000 offices in the US and CanadaKey Requirements: SD-WAN, dual-active VPN, intrusion prevention, endpoint protectionSolution includes: FortiGate, FortiClient, FortiManager, FortiGuard ServicesCustomer benefits realized:

¡ Easy zero-touch deployment

¡ Reduced complexity via integrated switching/routing and single-pane-of-glass management

¡ Better protection via improved threat visibility/mitigation and automated policy deployment

¡ Higher performance and reduced latency to boost speed of business

“It is critical that our branches have responsive, reliable network access to serve our clients. By partnering with Fortinet, we were able to deploy a network architecture to help us improve the delivery of our data with high-performance, more bandwidth and improved redundancy.” — Chris Boedges, Chief Technology Officer

GEMÜ Gebrüder Müller Apparatebau GmbH & Co. KGIndustrial manufacturing (Germany)Scope: Integrated security for locations in 50 countriesKey Requirements: Next-generation firewall, Web application security, sandboxing, secure Wi-FiSolution includes: FortiGate, FortiGate VM, FortiWeb VM, FortiSandbox, FortiAP, FortiWiFi, FortiGuard ServicesCustomer benefits realized:

¡ Comprehensive visibility and protection across the entire business

¡ Scale of solution matched unique needs and size of each site

¡ More efficient security operations via single-pane-of-glass management

“The combined set of capabilities across the entire Fortinet Security Fabric gives GEMÜ a significant security advantage.” — Bruno Scharpfenecker, Systems Administrator

Macquarie Cloud ServicesIT Service Provider for businesses and government (Australia)Scope: Managed security infrastructure Key Requirements: High-performance firewall, SSL encryption/decryption, antivirus, Web filtering, intrusion prevention, and more; granularity of both scale and featuresSolution includes: FortiGate, FortiSwitch, FortiWiFi, FortiAuthenticator, FortiToken, FortiManager, FortiAnalyzer, FortiPortal, FortiGuard ServicesCustomer benefits realized:

¡ Ability to tailor a solution for enterprises of all sizes and needs

¡ Ease of management via single-pane-of-glass and visibility across entire customer infrastructure

¡ Increased customer satisfaction and convenience via self-service portal and high uptime

“The wide range of Fortinet solutions – together with highly flexible licensing options – enables us to chose the optimal fit for each company…” — Jamie Gillespie, Security Architect

Pittsburgh SteelersNFL football team and stadium operator (USA)Scope: Security and Wireless Connectivity for operations and fansKey Requirements: Secure, high-performance Wi-Fi; complete venue coverageSolution includes: Fortinet security and wireless access solutions, managementCustomer benefits realized:

¡ Improved connectivity for better live fan experience

¡ Created new business opportunities

¡ More efficient operations with better protection

“Fortinet solutions protect all business lines in our organization, from ticketing to marketing, stadium operations, security, and of course football.” — Scott Phelps, VP of Technology

FEATURED CUSTOMER STORIES

For more customer stories, go to www.fortinet.com/customers.html