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Defining the Future of CybersecurityNovember 2016
The New
FORWARD LOOKING STATEMENTS
This presentation contains statements which may be considered forward-looking within the meaning of the US federal securities laws including statements regarding Symantecrsquos financial guidance the acquisition of LifeLock and the time frame in which this will occur Symantecrsquos financing of the acquisition and the expected benefits to Symantec LifeLock and their respective customers stockholders and investors from completing the acquisition including without limitation expected revenue and subscriber growth improvements to total addressable market and value proposition earnings accretion and cost savings statements regarding cost reduction integration and synergy efforts and the potential benefits to be derived therefrom 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 presentation Such risk factors include those related to obtaining required regulatory clearances and LifeLock stockholder approval and the satisfaction of other closing conditions the potential impact on the businesses of LifeLock and Symantec due to uncertainties regarding the acquisition the retention of employees of LifeLock and the ability of Symantec to successfully integrate LifeLock and to achieve expected benefits general economic conditions fluctuations and volatility in Symantecrsquos stock price the ability of Symantec to successfully execute strategic plans maintaining customer and partner relationships anticipated growth of certain market segments 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 integration of acquired businesses 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 Symantec assumes no obligation and do not intend to update these forward-looking statements or reasons why results might differ as a result of future events or developments Additional information concerning these and other risk factors is contained in the Risk Factors section of Symantecrsquos Form 10-K for the year ended April 1 2016 and Quarterly Report on Form 10-Q for the fiscal quarter ended September 30 2016 and in the Risk Factors section of LifeLocks Form 10-K for the year ended December 31 2015 and the Quarterly Report on Form 10-Q for the fiscal quarter ended September 30 2016 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
ADDITIONAL INFORMATION ABOUT THE PROPOSED TRANSACTION
In connection with the proposed transaction LifeLock will file a proxy statement with the SEC The definitive proxy statement will be mailed to LifeLock stockholders and will contain important information about the proposed transaction and related matters LIFELOCK STOCKHOLDERS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) CAREFULLY WHEN IT BECOMES AVAILABLE BEFORE MAKING ANY VOTING OR INVESTMENT DECISION WITH RESPECT TO THE PROPOSED TRANSACTION BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND THE PARTIES TO THE PROPOSED TRANSACTION LifeLock stockholders are advised that they may obtain free copies of the proxy statement filed by LifeLock with the SEC (when this document becomes available) on the SECrsquos website at httpwwwsecgov In addition free copies of the proxy statement may be obtained (when this document becomes available) from LifeLocks website at httpinvestorLifeLockcom or from LifeLock by written request to Investor Relations 60 East Rio Salado Parkway Suite 400 Tempe Arizona 85281
Additionally LifeLock and Symantec will file other relevant materials in connection with the proposed acquisition of LifeLock by Symantec pursuant to the terms of an Agreement and Plan of Merger by and among Symantec L1116 Merger Sub Inc a wholly owned subsidiary of Symantec and LifeLock Symantec LifeLock and their respective directors executive officers and other members of their management and employees under SEC rules may be deemed to be participants in the solicitation of proxies of LifeLock stockholders in connection with the proposed merger Investors and security holders may obtain more detailed information regarding the names affiliations and interests of certain of Symantecrsquos executive officers and directors in the solicitation by reading Symantecrsquos most recent Annual Report on Form 10-K which was filed with the SEC on May 20 2016 and the proxy statement for Symantecrsquos 2016 annual meeting of stockholders which was filed with the SEC on September 9 2016 These documents are available free of charge at the SECrsquos web site at wwwsecgov or by going to Symantecrsquos Investor Relations Website at httpinvestorsymanteccom Information concerning the interests of LifeLocks participants in the solicitation which may in some cases be different than those of LifeLocks stockholders generally will be set forth in the proxy statement relating to the merger when it becomes available
bullCopyright copy 2016 Symantec Corporation
2
3
Enterprise SecurityConsumer Security
Digital Safety Platform
bull Protecting your information devices and identity
bull Protecting over 50 million consumers every day
Integrated Cyber Defense Platform
bull Stay ahead of advanced threats
bull Secure sensitive information and critical documents ndash on premise or in the cloud
bull Promote customer confidence with superior encryption and code signing
Protecting Consumers Businesses and Governments
Threat Landscape Is More Challenging Than Ever
4
Targeted Attacks on the Rise
Data Is The New Perimeter
Consumers Need Reassurance They Are
Safe Online
Online customers donrsquot know if they can
trust e-commerce websites
Donrsquot have visibility into attacks on brand
Never Have Enough Time or Resources
Organizations donrsquot know how they are doing or where to
focus ndash 96 of alerts never reviewed
Hard to hire the right security talent
Large enterprises have a 38 change of being targeted
for spear phishing
Average attack goes undetected for
170 days
Just 31 of breaches are found by the victim organization ndash the rest
are found by a third party law enforcement etc
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
182Mweb attacks blocked last year
Discovered
430 millionnew unique piecesof malware last year
12000+Cloud applications discovered and protected
Innovation for the Cloud GenerationProtecting Against Advanced Threats ndash Global Intelligence Network
175MConsumer and Enterprise endpoints protected
9 global threat response centers with
3000 Researchers and Engineers
2 Billionemails scanned per day
1 Billionpreviously unseen web requests scanned daily
Cloud Global Intelligence Sourced From
100Msocial engineering scams blocked last year
1Bmalicious emails stopped last year
5
6
Integrated Cyber Defense Platform
bull Stay ahead of advanced threats
bull Secure sensitive information and critical documents ndash on premise or in the cloud
bull Promote customer confidence with superior encryption and code signing
Enterprise Security
Cloud Generation Security
7
Protection from
Advanced Threats
Securing a Mobile
Workforce
Ensuring Safe
Cloud Usage
Cloud Generation Security
8
Web
Blue Coat Proxy-based Secure Web Gateway (SWG)Critical Network Control Point for Security and Compliance
bull Appliance (ProxySG)
bull Virtual Appliance (vSWG)
bull Web Security Service (WSS)
File Extraction amp Orchestration Services (ATP DLP)
Powerful Open Policy Platform- In Cloud On Prem Virtual AWS
Web Access Governance amp Threat Protection
+ Blue Coat Intelligence Services (BCIS)
or Blue Coat Web Filter (BCWF) subscriptions
PROXY
BCIS
Web Security Service (WSS)
PROXY
9
Secure Web GatewayProxySG and Advanced Secure Gateway
Proxy
Proxy All Endpoints
bull Terminate and decrypt trafficbull Emulate all device types bull Extract content for inspectionbull Integrate authentication
Control Web amp Cloud Governancebull Discover amp control shadow IT riskbull Block web-borne threatsbull Enforce access policy amp audit usage
of web amp cloud
W W W W E B S I T E C O M
Prevent Threats amp Orchestrate Contentbull Pre-filter sandbox with advanced content
inspectionbull Send content to DLP sandbox analytics etc bull Open integration architecture to quickly
add new services
JAR EXE
Enhance the User Experience amp Performancebull Video Acceleration and Split Tunnelingbull Asymmetric Caching of Contentbull Optimized Protocol Support
10
The Cloud Generation Security ChallengeA Shifting Expanse of Blind Spots
11
SSL
MobileBYODIoT Endpoints
HeadquartersData Center
RegionalOffice
TraditionalSecurity Stack
Expanding Use of Encryption Creates Blind Spots
Traditional Security Stack Has Lost Significant Visibility As Resources
Go Direct-to-Net
Cloud Applications Causing Organizations to Lose Control
Over Their Resources
Rapidly Growing Landscape of Unprotected Devices
Users
Cloud Applications And Services
Accelerating Cloud DLP with CASB
12
Apply Fine-Tuned Policies to Cloud
Leverage Workflow Integrations
Gain CASB Functionalitybull Shadow IT Analysisbull Granular Visibility and Controlbull User Behavior Analytics
Extend DLP to 60+ Cloud Apps
Unmanaged devicesExtended perimeter
Symantec DLP Management
Console
Managed devices with DLP Endpoint Agent
Direct to Net access
PoliciesIncidents
Corporate Datacenter
PoliciesIncidents
PoliciesIncidents
SymantecCloudDLP
13
Machine Learning
bull Pre-execution detection for new and evolving threats
Application Protection
bull Memory Exploit Mitigation
Emulator
bull Anti-evasion technique to detect hidden malware
Intelligent Threat Cloud
bull Real-time cloud lookup ~70 reduction in definition size
Performance Enhancements
bull Faster real-time virus detection
Enabling Integrations
bull REST APIs
bull Enable Blue Coat integrations
Enhanced Automation
bull Expanded LiveUpdate to deliver security updates for Windows clients
Superior Protection High Performance Orchestrated Response
Secure Vulnerable Apps
Pre-Execution Detection
StrongAnti-Evasion
Easy IntegrationsFaster and
Light WeightAutomation
70 drop in daily updates
Symantec Endpoint Protection 14
Introducing Symantec Endpoint Protection 14Protection against advanced threats without compromising end-user or IT productivity
Overview of the Symantec Email Security Solution
Multi-Tenant Cloud-Based SolutionSolution Overview
bull Blocks targeted attacks spear phishing viruses amp malware spam and bulk mail
bull Controls sensitive data and helps meet compliance amp privacy requirements
bull Detects new and stealthy targeted amp advanced attacks
bull Provides deep visibility into targeted attacks and accelerates remediation
InboundOutbound
Third-party
Advanced Threat Protection
Anti-Spam
Anti-Malware
Data Protection
Image ControlFirewallUsers On-premise Email Server
CloudEmail Server
Users
14
Managed Cyber DefenseA Comprehensive Integrated Portfolio for Every Stage of the Attack Lifecycle
Track and Analyze Adversary Groups and Key Trends and Events around the globe for Actionable Intelligence
DeepSightIntelligence
Detect and Proactively Hunt for Targeted Attacks Advanced Threats and Campaigns
Managed Security Services
Respond Quickly and Effectively to Credible Security Threats and Incidents
Incident Response
Strengthen Cyber Readiness to Build Employee Resiliency and Prevent Sophisticated Attacks
Cyber Skills Development
World-Class Security Expertise gt Reactive to Proactive gt Integrated End-to-End Security
Before an Attack
During an Attack
After an Attack
Preparing for an Attack
15
Symantec Website Security
16
Website Security Market
Symantec Offerings
SSLCertificates
Domain Validated Certificates
Organization Validated Certificates
Extended Validated Certificates
SSL Discovery and Certificate Lifecycle Automation
Code signing
OEM Offerings
Web Application Firewall (WAF)
Distributed denial of service (DDOS)
WEBSITE SECURITY
An SSL Certificate isbull A server-based productbull Enables encryption of data in transitbull And provides validation of the certificate
holderrsquos identity
Inspiresbull Assurance of safety and securitybull Trust and confidence to transact
Creatingbull Site stickinessbull Business uplift
SSL 101
Symantec Website Security
17
Symantec is the Leader
WEBSITE SECURITY
Differentiation
90 of Fortune 500 companies are secured by Symantec SSLTLS
Symantec issues 7 out of every 10 code signing certificates globally
90
Nortontrade Secured Seal is the most recognized trust mark on the Internet
80 of the 500 largest ecommerce sites in North America are secured by Symantec SSLTLS
96 of the worldrsquos 100 largest financial institutions are secured by Symantec SSLTLS
80
71096
Most Comprehensive Offerings and Solutions Orientation
Fastest Performance in Industry with Scale
World Class and Secure Service Availability
Best Root Ubiquity
Global Support
Symantec Website Security ENCRYPTION EVERYWHERE
18
WEBSITE SECURITY
Focus on our unique scale amp operational viability our breadth of offerings enabling unparalleled partner upsell opportunities and customized marketing support
to drive partner growth
Shift the internet to encryption by defaulthellip move from todayrsquos meager 3 encryption to 100
Shifting to upsell modelAccelerate market share expansion for SSLTLS
certificates
Rapidly Expand Volume
Drive Double Digit Growth
Secure the Worldrsquos Traffic
19
Consumer Security
Digital Safety Platform
Protecting your information devices identity and over 50 million consumers every day
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
FORWARD LOOKING STATEMENTS
This presentation contains statements which may be considered forward-looking within the meaning of the US federal securities laws including statements regarding Symantecrsquos financial guidance the acquisition of LifeLock and the time frame in which this will occur Symantecrsquos financing of the acquisition and the expected benefits to Symantec LifeLock and their respective customers stockholders and investors from completing the acquisition including without limitation expected revenue and subscriber growth improvements to total addressable market and value proposition earnings accretion and cost savings statements regarding cost reduction integration and synergy efforts and the potential benefits to be derived therefrom 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 presentation Such risk factors include those related to obtaining required regulatory clearances and LifeLock stockholder approval and the satisfaction of other closing conditions the potential impact on the businesses of LifeLock and Symantec due to uncertainties regarding the acquisition the retention of employees of LifeLock and the ability of Symantec to successfully integrate LifeLock and to achieve expected benefits general economic conditions fluctuations and volatility in Symantecrsquos stock price the ability of Symantec to successfully execute strategic plans maintaining customer and partner relationships anticipated growth of certain market segments 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 integration of acquired businesses 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 Symantec assumes no obligation and do not intend to update these forward-looking statements or reasons why results might differ as a result of future events or developments Additional information concerning these and other risk factors is contained in the Risk Factors section of Symantecrsquos Form 10-K for the year ended April 1 2016 and Quarterly Report on Form 10-Q for the fiscal quarter ended September 30 2016 and in the Risk Factors section of LifeLocks Form 10-K for the year ended December 31 2015 and the Quarterly Report on Form 10-Q for the fiscal quarter ended September 30 2016 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
ADDITIONAL INFORMATION ABOUT THE PROPOSED TRANSACTION
In connection with the proposed transaction LifeLock will file a proxy statement with the SEC The definitive proxy statement will be mailed to LifeLock stockholders and will contain important information about the proposed transaction and related matters LIFELOCK STOCKHOLDERS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) CAREFULLY WHEN IT BECOMES AVAILABLE BEFORE MAKING ANY VOTING OR INVESTMENT DECISION WITH RESPECT TO THE PROPOSED TRANSACTION BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND THE PARTIES TO THE PROPOSED TRANSACTION LifeLock stockholders are advised that they may obtain free copies of the proxy statement filed by LifeLock with the SEC (when this document becomes available) on the SECrsquos website at httpwwwsecgov In addition free copies of the proxy statement may be obtained (when this document becomes available) from LifeLocks website at httpinvestorLifeLockcom or from LifeLock by written request to Investor Relations 60 East Rio Salado Parkway Suite 400 Tempe Arizona 85281
Additionally LifeLock and Symantec will file other relevant materials in connection with the proposed acquisition of LifeLock by Symantec pursuant to the terms of an Agreement and Plan of Merger by and among Symantec L1116 Merger Sub Inc a wholly owned subsidiary of Symantec and LifeLock Symantec LifeLock and their respective directors executive officers and other members of their management and employees under SEC rules may be deemed to be participants in the solicitation of proxies of LifeLock stockholders in connection with the proposed merger Investors and security holders may obtain more detailed information regarding the names affiliations and interests of certain of Symantecrsquos executive officers and directors in the solicitation by reading Symantecrsquos most recent Annual Report on Form 10-K which was filed with the SEC on May 20 2016 and the proxy statement for Symantecrsquos 2016 annual meeting of stockholders which was filed with the SEC on September 9 2016 These documents are available free of charge at the SECrsquos web site at wwwsecgov or by going to Symantecrsquos Investor Relations Website at httpinvestorsymanteccom Information concerning the interests of LifeLocks participants in the solicitation which may in some cases be different than those of LifeLocks stockholders generally will be set forth in the proxy statement relating to the merger when it becomes available
bullCopyright copy 2016 Symantec Corporation
2
3
Enterprise SecurityConsumer Security
Digital Safety Platform
bull Protecting your information devices and identity
bull Protecting over 50 million consumers every day
Integrated Cyber Defense Platform
bull Stay ahead of advanced threats
bull Secure sensitive information and critical documents ndash on premise or in the cloud
bull Promote customer confidence with superior encryption and code signing
Protecting Consumers Businesses and Governments
Threat Landscape Is More Challenging Than Ever
4
Targeted Attacks on the Rise
Data Is The New Perimeter
Consumers Need Reassurance They Are
Safe Online
Online customers donrsquot know if they can
trust e-commerce websites
Donrsquot have visibility into attacks on brand
Never Have Enough Time or Resources
Organizations donrsquot know how they are doing or where to
focus ndash 96 of alerts never reviewed
Hard to hire the right security talent
Large enterprises have a 38 change of being targeted
for spear phishing
Average attack goes undetected for
170 days
Just 31 of breaches are found by the victim organization ndash the rest
are found by a third party law enforcement etc
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
182Mweb attacks blocked last year
Discovered
430 millionnew unique piecesof malware last year
12000+Cloud applications discovered and protected
Innovation for the Cloud GenerationProtecting Against Advanced Threats ndash Global Intelligence Network
175MConsumer and Enterprise endpoints protected
9 global threat response centers with
3000 Researchers and Engineers
2 Billionemails scanned per day
1 Billionpreviously unseen web requests scanned daily
Cloud Global Intelligence Sourced From
100Msocial engineering scams blocked last year
1Bmalicious emails stopped last year
5
6
Integrated Cyber Defense Platform
bull Stay ahead of advanced threats
bull Secure sensitive information and critical documents ndash on premise or in the cloud
bull Promote customer confidence with superior encryption and code signing
Enterprise Security
Cloud Generation Security
7
Protection from
Advanced Threats
Securing a Mobile
Workforce
Ensuring Safe
Cloud Usage
Cloud Generation Security
8
Web
Blue Coat Proxy-based Secure Web Gateway (SWG)Critical Network Control Point for Security and Compliance
bull Appliance (ProxySG)
bull Virtual Appliance (vSWG)
bull Web Security Service (WSS)
File Extraction amp Orchestration Services (ATP DLP)
Powerful Open Policy Platform- In Cloud On Prem Virtual AWS
Web Access Governance amp Threat Protection
+ Blue Coat Intelligence Services (BCIS)
or Blue Coat Web Filter (BCWF) subscriptions
PROXY
BCIS
Web Security Service (WSS)
PROXY
9
Secure Web GatewayProxySG and Advanced Secure Gateway
Proxy
Proxy All Endpoints
bull Terminate and decrypt trafficbull Emulate all device types bull Extract content for inspectionbull Integrate authentication
Control Web amp Cloud Governancebull Discover amp control shadow IT riskbull Block web-borne threatsbull Enforce access policy amp audit usage
of web amp cloud
W W W W E B S I T E C O M
Prevent Threats amp Orchestrate Contentbull Pre-filter sandbox with advanced content
inspectionbull Send content to DLP sandbox analytics etc bull Open integration architecture to quickly
add new services
JAR EXE
Enhance the User Experience amp Performancebull Video Acceleration and Split Tunnelingbull Asymmetric Caching of Contentbull Optimized Protocol Support
10
The Cloud Generation Security ChallengeA Shifting Expanse of Blind Spots
11
SSL
MobileBYODIoT Endpoints
HeadquartersData Center
RegionalOffice
TraditionalSecurity Stack
Expanding Use of Encryption Creates Blind Spots
Traditional Security Stack Has Lost Significant Visibility As Resources
Go Direct-to-Net
Cloud Applications Causing Organizations to Lose Control
Over Their Resources
Rapidly Growing Landscape of Unprotected Devices
Users
Cloud Applications And Services
Accelerating Cloud DLP with CASB
12
Apply Fine-Tuned Policies to Cloud
Leverage Workflow Integrations
Gain CASB Functionalitybull Shadow IT Analysisbull Granular Visibility and Controlbull User Behavior Analytics
Extend DLP to 60+ Cloud Apps
Unmanaged devicesExtended perimeter
Symantec DLP Management
Console
Managed devices with DLP Endpoint Agent
Direct to Net access
PoliciesIncidents
Corporate Datacenter
PoliciesIncidents
PoliciesIncidents
SymantecCloudDLP
13
Machine Learning
bull Pre-execution detection for new and evolving threats
Application Protection
bull Memory Exploit Mitigation
Emulator
bull Anti-evasion technique to detect hidden malware
Intelligent Threat Cloud
bull Real-time cloud lookup ~70 reduction in definition size
Performance Enhancements
bull Faster real-time virus detection
Enabling Integrations
bull REST APIs
bull Enable Blue Coat integrations
Enhanced Automation
bull Expanded LiveUpdate to deliver security updates for Windows clients
Superior Protection High Performance Orchestrated Response
Secure Vulnerable Apps
Pre-Execution Detection
StrongAnti-Evasion
Easy IntegrationsFaster and
Light WeightAutomation
70 drop in daily updates
Symantec Endpoint Protection 14
Introducing Symantec Endpoint Protection 14Protection against advanced threats without compromising end-user or IT productivity
Overview of the Symantec Email Security Solution
Multi-Tenant Cloud-Based SolutionSolution Overview
bull Blocks targeted attacks spear phishing viruses amp malware spam and bulk mail
bull Controls sensitive data and helps meet compliance amp privacy requirements
bull Detects new and stealthy targeted amp advanced attacks
bull Provides deep visibility into targeted attacks and accelerates remediation
InboundOutbound
Third-party
Advanced Threat Protection
Anti-Spam
Anti-Malware
Data Protection
Image ControlFirewallUsers On-premise Email Server
CloudEmail Server
Users
14
Managed Cyber DefenseA Comprehensive Integrated Portfolio for Every Stage of the Attack Lifecycle
Track and Analyze Adversary Groups and Key Trends and Events around the globe for Actionable Intelligence
DeepSightIntelligence
Detect and Proactively Hunt for Targeted Attacks Advanced Threats and Campaigns
Managed Security Services
Respond Quickly and Effectively to Credible Security Threats and Incidents
Incident Response
Strengthen Cyber Readiness to Build Employee Resiliency and Prevent Sophisticated Attacks
Cyber Skills Development
World-Class Security Expertise gt Reactive to Proactive gt Integrated End-to-End Security
Before an Attack
During an Attack
After an Attack
Preparing for an Attack
15
Symantec Website Security
16
Website Security Market
Symantec Offerings
SSLCertificates
Domain Validated Certificates
Organization Validated Certificates
Extended Validated Certificates
SSL Discovery and Certificate Lifecycle Automation
Code signing
OEM Offerings
Web Application Firewall (WAF)
Distributed denial of service (DDOS)
WEBSITE SECURITY
An SSL Certificate isbull A server-based productbull Enables encryption of data in transitbull And provides validation of the certificate
holderrsquos identity
Inspiresbull Assurance of safety and securitybull Trust and confidence to transact
Creatingbull Site stickinessbull Business uplift
SSL 101
Symantec Website Security
17
Symantec is the Leader
WEBSITE SECURITY
Differentiation
90 of Fortune 500 companies are secured by Symantec SSLTLS
Symantec issues 7 out of every 10 code signing certificates globally
90
Nortontrade Secured Seal is the most recognized trust mark on the Internet
80 of the 500 largest ecommerce sites in North America are secured by Symantec SSLTLS
96 of the worldrsquos 100 largest financial institutions are secured by Symantec SSLTLS
80
71096
Most Comprehensive Offerings and Solutions Orientation
Fastest Performance in Industry with Scale
World Class and Secure Service Availability
Best Root Ubiquity
Global Support
Symantec Website Security ENCRYPTION EVERYWHERE
18
WEBSITE SECURITY
Focus on our unique scale amp operational viability our breadth of offerings enabling unparalleled partner upsell opportunities and customized marketing support
to drive partner growth
Shift the internet to encryption by defaulthellip move from todayrsquos meager 3 encryption to 100
Shifting to upsell modelAccelerate market share expansion for SSLTLS
certificates
Rapidly Expand Volume
Drive Double Digit Growth
Secure the Worldrsquos Traffic
19
Consumer Security
Digital Safety Platform
Protecting your information devices identity and over 50 million consumers every day
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
3
Enterprise SecurityConsumer Security
Digital Safety Platform
bull Protecting your information devices and identity
bull Protecting over 50 million consumers every day
Integrated Cyber Defense Platform
bull Stay ahead of advanced threats
bull Secure sensitive information and critical documents ndash on premise or in the cloud
bull Promote customer confidence with superior encryption and code signing
Protecting Consumers Businesses and Governments
Threat Landscape Is More Challenging Than Ever
4
Targeted Attacks on the Rise
Data Is The New Perimeter
Consumers Need Reassurance They Are
Safe Online
Online customers donrsquot know if they can
trust e-commerce websites
Donrsquot have visibility into attacks on brand
Never Have Enough Time or Resources
Organizations donrsquot know how they are doing or where to
focus ndash 96 of alerts never reviewed
Hard to hire the right security talent
Large enterprises have a 38 change of being targeted
for spear phishing
Average attack goes undetected for
170 days
Just 31 of breaches are found by the victim organization ndash the rest
are found by a third party law enforcement etc
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
182Mweb attacks blocked last year
Discovered
430 millionnew unique piecesof malware last year
12000+Cloud applications discovered and protected
Innovation for the Cloud GenerationProtecting Against Advanced Threats ndash Global Intelligence Network
175MConsumer and Enterprise endpoints protected
9 global threat response centers with
3000 Researchers and Engineers
2 Billionemails scanned per day
1 Billionpreviously unseen web requests scanned daily
Cloud Global Intelligence Sourced From
100Msocial engineering scams blocked last year
1Bmalicious emails stopped last year
5
6
Integrated Cyber Defense Platform
bull Stay ahead of advanced threats
bull Secure sensitive information and critical documents ndash on premise or in the cloud
bull Promote customer confidence with superior encryption and code signing
Enterprise Security
Cloud Generation Security
7
Protection from
Advanced Threats
Securing a Mobile
Workforce
Ensuring Safe
Cloud Usage
Cloud Generation Security
8
Web
Blue Coat Proxy-based Secure Web Gateway (SWG)Critical Network Control Point for Security and Compliance
bull Appliance (ProxySG)
bull Virtual Appliance (vSWG)
bull Web Security Service (WSS)
File Extraction amp Orchestration Services (ATP DLP)
Powerful Open Policy Platform- In Cloud On Prem Virtual AWS
Web Access Governance amp Threat Protection
+ Blue Coat Intelligence Services (BCIS)
or Blue Coat Web Filter (BCWF) subscriptions
PROXY
BCIS
Web Security Service (WSS)
PROXY
9
Secure Web GatewayProxySG and Advanced Secure Gateway
Proxy
Proxy All Endpoints
bull Terminate and decrypt trafficbull Emulate all device types bull Extract content for inspectionbull Integrate authentication
Control Web amp Cloud Governancebull Discover amp control shadow IT riskbull Block web-borne threatsbull Enforce access policy amp audit usage
of web amp cloud
W W W W E B S I T E C O M
Prevent Threats amp Orchestrate Contentbull Pre-filter sandbox with advanced content
inspectionbull Send content to DLP sandbox analytics etc bull Open integration architecture to quickly
add new services
JAR EXE
Enhance the User Experience amp Performancebull Video Acceleration and Split Tunnelingbull Asymmetric Caching of Contentbull Optimized Protocol Support
10
The Cloud Generation Security ChallengeA Shifting Expanse of Blind Spots
11
SSL
MobileBYODIoT Endpoints
HeadquartersData Center
RegionalOffice
TraditionalSecurity Stack
Expanding Use of Encryption Creates Blind Spots
Traditional Security Stack Has Lost Significant Visibility As Resources
Go Direct-to-Net
Cloud Applications Causing Organizations to Lose Control
Over Their Resources
Rapidly Growing Landscape of Unprotected Devices
Users
Cloud Applications And Services
Accelerating Cloud DLP with CASB
12
Apply Fine-Tuned Policies to Cloud
Leverage Workflow Integrations
Gain CASB Functionalitybull Shadow IT Analysisbull Granular Visibility and Controlbull User Behavior Analytics
Extend DLP to 60+ Cloud Apps
Unmanaged devicesExtended perimeter
Symantec DLP Management
Console
Managed devices with DLP Endpoint Agent
Direct to Net access
PoliciesIncidents
Corporate Datacenter
PoliciesIncidents
PoliciesIncidents
SymantecCloudDLP
13
Machine Learning
bull Pre-execution detection for new and evolving threats
Application Protection
bull Memory Exploit Mitigation
Emulator
bull Anti-evasion technique to detect hidden malware
Intelligent Threat Cloud
bull Real-time cloud lookup ~70 reduction in definition size
Performance Enhancements
bull Faster real-time virus detection
Enabling Integrations
bull REST APIs
bull Enable Blue Coat integrations
Enhanced Automation
bull Expanded LiveUpdate to deliver security updates for Windows clients
Superior Protection High Performance Orchestrated Response
Secure Vulnerable Apps
Pre-Execution Detection
StrongAnti-Evasion
Easy IntegrationsFaster and
Light WeightAutomation
70 drop in daily updates
Symantec Endpoint Protection 14
Introducing Symantec Endpoint Protection 14Protection against advanced threats without compromising end-user or IT productivity
Overview of the Symantec Email Security Solution
Multi-Tenant Cloud-Based SolutionSolution Overview
bull Blocks targeted attacks spear phishing viruses amp malware spam and bulk mail
bull Controls sensitive data and helps meet compliance amp privacy requirements
bull Detects new and stealthy targeted amp advanced attacks
bull Provides deep visibility into targeted attacks and accelerates remediation
InboundOutbound
Third-party
Advanced Threat Protection
Anti-Spam
Anti-Malware
Data Protection
Image ControlFirewallUsers On-premise Email Server
CloudEmail Server
Users
14
Managed Cyber DefenseA Comprehensive Integrated Portfolio for Every Stage of the Attack Lifecycle
Track and Analyze Adversary Groups and Key Trends and Events around the globe for Actionable Intelligence
DeepSightIntelligence
Detect and Proactively Hunt for Targeted Attacks Advanced Threats and Campaigns
Managed Security Services
Respond Quickly and Effectively to Credible Security Threats and Incidents
Incident Response
Strengthen Cyber Readiness to Build Employee Resiliency and Prevent Sophisticated Attacks
Cyber Skills Development
World-Class Security Expertise gt Reactive to Proactive gt Integrated End-to-End Security
Before an Attack
During an Attack
After an Attack
Preparing for an Attack
15
Symantec Website Security
16
Website Security Market
Symantec Offerings
SSLCertificates
Domain Validated Certificates
Organization Validated Certificates
Extended Validated Certificates
SSL Discovery and Certificate Lifecycle Automation
Code signing
OEM Offerings
Web Application Firewall (WAF)
Distributed denial of service (DDOS)
WEBSITE SECURITY
An SSL Certificate isbull A server-based productbull Enables encryption of data in transitbull And provides validation of the certificate
holderrsquos identity
Inspiresbull Assurance of safety and securitybull Trust and confidence to transact
Creatingbull Site stickinessbull Business uplift
SSL 101
Symantec Website Security
17
Symantec is the Leader
WEBSITE SECURITY
Differentiation
90 of Fortune 500 companies are secured by Symantec SSLTLS
Symantec issues 7 out of every 10 code signing certificates globally
90
Nortontrade Secured Seal is the most recognized trust mark on the Internet
80 of the 500 largest ecommerce sites in North America are secured by Symantec SSLTLS
96 of the worldrsquos 100 largest financial institutions are secured by Symantec SSLTLS
80
71096
Most Comprehensive Offerings and Solutions Orientation
Fastest Performance in Industry with Scale
World Class and Secure Service Availability
Best Root Ubiquity
Global Support
Symantec Website Security ENCRYPTION EVERYWHERE
18
WEBSITE SECURITY
Focus on our unique scale amp operational viability our breadth of offerings enabling unparalleled partner upsell opportunities and customized marketing support
to drive partner growth
Shift the internet to encryption by defaulthellip move from todayrsquos meager 3 encryption to 100
Shifting to upsell modelAccelerate market share expansion for SSLTLS
certificates
Rapidly Expand Volume
Drive Double Digit Growth
Secure the Worldrsquos Traffic
19
Consumer Security
Digital Safety Platform
Protecting your information devices identity and over 50 million consumers every day
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Threat Landscape Is More Challenging Than Ever
4
Targeted Attacks on the Rise
Data Is The New Perimeter
Consumers Need Reassurance They Are
Safe Online
Online customers donrsquot know if they can
trust e-commerce websites
Donrsquot have visibility into attacks on brand
Never Have Enough Time or Resources
Organizations donrsquot know how they are doing or where to
focus ndash 96 of alerts never reviewed
Hard to hire the right security talent
Large enterprises have a 38 change of being targeted
for spear phishing
Average attack goes undetected for
170 days
Just 31 of breaches are found by the victim organization ndash the rest
are found by a third party law enforcement etc
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
182Mweb attacks blocked last year
Discovered
430 millionnew unique piecesof malware last year
12000+Cloud applications discovered and protected
Innovation for the Cloud GenerationProtecting Against Advanced Threats ndash Global Intelligence Network
175MConsumer and Enterprise endpoints protected
9 global threat response centers with
3000 Researchers and Engineers
2 Billionemails scanned per day
1 Billionpreviously unseen web requests scanned daily
Cloud Global Intelligence Sourced From
100Msocial engineering scams blocked last year
1Bmalicious emails stopped last year
5
6
Integrated Cyber Defense Platform
bull Stay ahead of advanced threats
bull Secure sensitive information and critical documents ndash on premise or in the cloud
bull Promote customer confidence with superior encryption and code signing
Enterprise Security
Cloud Generation Security
7
Protection from
Advanced Threats
Securing a Mobile
Workforce
Ensuring Safe
Cloud Usage
Cloud Generation Security
8
Web
Blue Coat Proxy-based Secure Web Gateway (SWG)Critical Network Control Point for Security and Compliance
bull Appliance (ProxySG)
bull Virtual Appliance (vSWG)
bull Web Security Service (WSS)
File Extraction amp Orchestration Services (ATP DLP)
Powerful Open Policy Platform- In Cloud On Prem Virtual AWS
Web Access Governance amp Threat Protection
+ Blue Coat Intelligence Services (BCIS)
or Blue Coat Web Filter (BCWF) subscriptions
PROXY
BCIS
Web Security Service (WSS)
PROXY
9
Secure Web GatewayProxySG and Advanced Secure Gateway
Proxy
Proxy All Endpoints
bull Terminate and decrypt trafficbull Emulate all device types bull Extract content for inspectionbull Integrate authentication
Control Web amp Cloud Governancebull Discover amp control shadow IT riskbull Block web-borne threatsbull Enforce access policy amp audit usage
of web amp cloud
W W W W E B S I T E C O M
Prevent Threats amp Orchestrate Contentbull Pre-filter sandbox with advanced content
inspectionbull Send content to DLP sandbox analytics etc bull Open integration architecture to quickly
add new services
JAR EXE
Enhance the User Experience amp Performancebull Video Acceleration and Split Tunnelingbull Asymmetric Caching of Contentbull Optimized Protocol Support
10
The Cloud Generation Security ChallengeA Shifting Expanse of Blind Spots
11
SSL
MobileBYODIoT Endpoints
HeadquartersData Center
RegionalOffice
TraditionalSecurity Stack
Expanding Use of Encryption Creates Blind Spots
Traditional Security Stack Has Lost Significant Visibility As Resources
Go Direct-to-Net
Cloud Applications Causing Organizations to Lose Control
Over Their Resources
Rapidly Growing Landscape of Unprotected Devices
Users
Cloud Applications And Services
Accelerating Cloud DLP with CASB
12
Apply Fine-Tuned Policies to Cloud
Leverage Workflow Integrations
Gain CASB Functionalitybull Shadow IT Analysisbull Granular Visibility and Controlbull User Behavior Analytics
Extend DLP to 60+ Cloud Apps
Unmanaged devicesExtended perimeter
Symantec DLP Management
Console
Managed devices with DLP Endpoint Agent
Direct to Net access
PoliciesIncidents
Corporate Datacenter
PoliciesIncidents
PoliciesIncidents
SymantecCloudDLP
13
Machine Learning
bull Pre-execution detection for new and evolving threats
Application Protection
bull Memory Exploit Mitigation
Emulator
bull Anti-evasion technique to detect hidden malware
Intelligent Threat Cloud
bull Real-time cloud lookup ~70 reduction in definition size
Performance Enhancements
bull Faster real-time virus detection
Enabling Integrations
bull REST APIs
bull Enable Blue Coat integrations
Enhanced Automation
bull Expanded LiveUpdate to deliver security updates for Windows clients
Superior Protection High Performance Orchestrated Response
Secure Vulnerable Apps
Pre-Execution Detection
StrongAnti-Evasion
Easy IntegrationsFaster and
Light WeightAutomation
70 drop in daily updates
Symantec Endpoint Protection 14
Introducing Symantec Endpoint Protection 14Protection against advanced threats without compromising end-user or IT productivity
Overview of the Symantec Email Security Solution
Multi-Tenant Cloud-Based SolutionSolution Overview
bull Blocks targeted attacks spear phishing viruses amp malware spam and bulk mail
bull Controls sensitive data and helps meet compliance amp privacy requirements
bull Detects new and stealthy targeted amp advanced attacks
bull Provides deep visibility into targeted attacks and accelerates remediation
InboundOutbound
Third-party
Advanced Threat Protection
Anti-Spam
Anti-Malware
Data Protection
Image ControlFirewallUsers On-premise Email Server
CloudEmail Server
Users
14
Managed Cyber DefenseA Comprehensive Integrated Portfolio for Every Stage of the Attack Lifecycle
Track and Analyze Adversary Groups and Key Trends and Events around the globe for Actionable Intelligence
DeepSightIntelligence
Detect and Proactively Hunt for Targeted Attacks Advanced Threats and Campaigns
Managed Security Services
Respond Quickly and Effectively to Credible Security Threats and Incidents
Incident Response
Strengthen Cyber Readiness to Build Employee Resiliency and Prevent Sophisticated Attacks
Cyber Skills Development
World-Class Security Expertise gt Reactive to Proactive gt Integrated End-to-End Security
Before an Attack
During an Attack
After an Attack
Preparing for an Attack
15
Symantec Website Security
16
Website Security Market
Symantec Offerings
SSLCertificates
Domain Validated Certificates
Organization Validated Certificates
Extended Validated Certificates
SSL Discovery and Certificate Lifecycle Automation
Code signing
OEM Offerings
Web Application Firewall (WAF)
Distributed denial of service (DDOS)
WEBSITE SECURITY
An SSL Certificate isbull A server-based productbull Enables encryption of data in transitbull And provides validation of the certificate
holderrsquos identity
Inspiresbull Assurance of safety and securitybull Trust and confidence to transact
Creatingbull Site stickinessbull Business uplift
SSL 101
Symantec Website Security
17
Symantec is the Leader
WEBSITE SECURITY
Differentiation
90 of Fortune 500 companies are secured by Symantec SSLTLS
Symantec issues 7 out of every 10 code signing certificates globally
90
Nortontrade Secured Seal is the most recognized trust mark on the Internet
80 of the 500 largest ecommerce sites in North America are secured by Symantec SSLTLS
96 of the worldrsquos 100 largest financial institutions are secured by Symantec SSLTLS
80
71096
Most Comprehensive Offerings and Solutions Orientation
Fastest Performance in Industry with Scale
World Class and Secure Service Availability
Best Root Ubiquity
Global Support
Symantec Website Security ENCRYPTION EVERYWHERE
18
WEBSITE SECURITY
Focus on our unique scale amp operational viability our breadth of offerings enabling unparalleled partner upsell opportunities and customized marketing support
to drive partner growth
Shift the internet to encryption by defaulthellip move from todayrsquos meager 3 encryption to 100
Shifting to upsell modelAccelerate market share expansion for SSLTLS
certificates
Rapidly Expand Volume
Drive Double Digit Growth
Secure the Worldrsquos Traffic
19
Consumer Security
Digital Safety Platform
Protecting your information devices identity and over 50 million consumers every day
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
182Mweb attacks blocked last year
Discovered
430 millionnew unique piecesof malware last year
12000+Cloud applications discovered and protected
Innovation for the Cloud GenerationProtecting Against Advanced Threats ndash Global Intelligence Network
175MConsumer and Enterprise endpoints protected
9 global threat response centers with
3000 Researchers and Engineers
2 Billionemails scanned per day
1 Billionpreviously unseen web requests scanned daily
Cloud Global Intelligence Sourced From
100Msocial engineering scams blocked last year
1Bmalicious emails stopped last year
5
6
Integrated Cyber Defense Platform
bull Stay ahead of advanced threats
bull Secure sensitive information and critical documents ndash on premise or in the cloud
bull Promote customer confidence with superior encryption and code signing
Enterprise Security
Cloud Generation Security
7
Protection from
Advanced Threats
Securing a Mobile
Workforce
Ensuring Safe
Cloud Usage
Cloud Generation Security
8
Web
Blue Coat Proxy-based Secure Web Gateway (SWG)Critical Network Control Point for Security and Compliance
bull Appliance (ProxySG)
bull Virtual Appliance (vSWG)
bull Web Security Service (WSS)
File Extraction amp Orchestration Services (ATP DLP)
Powerful Open Policy Platform- In Cloud On Prem Virtual AWS
Web Access Governance amp Threat Protection
+ Blue Coat Intelligence Services (BCIS)
or Blue Coat Web Filter (BCWF) subscriptions
PROXY
BCIS
Web Security Service (WSS)
PROXY
9
Secure Web GatewayProxySG and Advanced Secure Gateway
Proxy
Proxy All Endpoints
bull Terminate and decrypt trafficbull Emulate all device types bull Extract content for inspectionbull Integrate authentication
Control Web amp Cloud Governancebull Discover amp control shadow IT riskbull Block web-borne threatsbull Enforce access policy amp audit usage
of web amp cloud
W W W W E B S I T E C O M
Prevent Threats amp Orchestrate Contentbull Pre-filter sandbox with advanced content
inspectionbull Send content to DLP sandbox analytics etc bull Open integration architecture to quickly
add new services
JAR EXE
Enhance the User Experience amp Performancebull Video Acceleration and Split Tunnelingbull Asymmetric Caching of Contentbull Optimized Protocol Support
10
The Cloud Generation Security ChallengeA Shifting Expanse of Blind Spots
11
SSL
MobileBYODIoT Endpoints
HeadquartersData Center
RegionalOffice
TraditionalSecurity Stack
Expanding Use of Encryption Creates Blind Spots
Traditional Security Stack Has Lost Significant Visibility As Resources
Go Direct-to-Net
Cloud Applications Causing Organizations to Lose Control
Over Their Resources
Rapidly Growing Landscape of Unprotected Devices
Users
Cloud Applications And Services
Accelerating Cloud DLP with CASB
12
Apply Fine-Tuned Policies to Cloud
Leverage Workflow Integrations
Gain CASB Functionalitybull Shadow IT Analysisbull Granular Visibility and Controlbull User Behavior Analytics
Extend DLP to 60+ Cloud Apps
Unmanaged devicesExtended perimeter
Symantec DLP Management
Console
Managed devices with DLP Endpoint Agent
Direct to Net access
PoliciesIncidents
Corporate Datacenter
PoliciesIncidents
PoliciesIncidents
SymantecCloudDLP
13
Machine Learning
bull Pre-execution detection for new and evolving threats
Application Protection
bull Memory Exploit Mitigation
Emulator
bull Anti-evasion technique to detect hidden malware
Intelligent Threat Cloud
bull Real-time cloud lookup ~70 reduction in definition size
Performance Enhancements
bull Faster real-time virus detection
Enabling Integrations
bull REST APIs
bull Enable Blue Coat integrations
Enhanced Automation
bull Expanded LiveUpdate to deliver security updates for Windows clients
Superior Protection High Performance Orchestrated Response
Secure Vulnerable Apps
Pre-Execution Detection
StrongAnti-Evasion
Easy IntegrationsFaster and
Light WeightAutomation
70 drop in daily updates
Symantec Endpoint Protection 14
Introducing Symantec Endpoint Protection 14Protection against advanced threats without compromising end-user or IT productivity
Overview of the Symantec Email Security Solution
Multi-Tenant Cloud-Based SolutionSolution Overview
bull Blocks targeted attacks spear phishing viruses amp malware spam and bulk mail
bull Controls sensitive data and helps meet compliance amp privacy requirements
bull Detects new and stealthy targeted amp advanced attacks
bull Provides deep visibility into targeted attacks and accelerates remediation
InboundOutbound
Third-party
Advanced Threat Protection
Anti-Spam
Anti-Malware
Data Protection
Image ControlFirewallUsers On-premise Email Server
CloudEmail Server
Users
14
Managed Cyber DefenseA Comprehensive Integrated Portfolio for Every Stage of the Attack Lifecycle
Track and Analyze Adversary Groups and Key Trends and Events around the globe for Actionable Intelligence
DeepSightIntelligence
Detect and Proactively Hunt for Targeted Attacks Advanced Threats and Campaigns
Managed Security Services
Respond Quickly and Effectively to Credible Security Threats and Incidents
Incident Response
Strengthen Cyber Readiness to Build Employee Resiliency and Prevent Sophisticated Attacks
Cyber Skills Development
World-Class Security Expertise gt Reactive to Proactive gt Integrated End-to-End Security
Before an Attack
During an Attack
After an Attack
Preparing for an Attack
15
Symantec Website Security
16
Website Security Market
Symantec Offerings
SSLCertificates
Domain Validated Certificates
Organization Validated Certificates
Extended Validated Certificates
SSL Discovery and Certificate Lifecycle Automation
Code signing
OEM Offerings
Web Application Firewall (WAF)
Distributed denial of service (DDOS)
WEBSITE SECURITY
An SSL Certificate isbull A server-based productbull Enables encryption of data in transitbull And provides validation of the certificate
holderrsquos identity
Inspiresbull Assurance of safety and securitybull Trust and confidence to transact
Creatingbull Site stickinessbull Business uplift
SSL 101
Symantec Website Security
17
Symantec is the Leader
WEBSITE SECURITY
Differentiation
90 of Fortune 500 companies are secured by Symantec SSLTLS
Symantec issues 7 out of every 10 code signing certificates globally
90
Nortontrade Secured Seal is the most recognized trust mark on the Internet
80 of the 500 largest ecommerce sites in North America are secured by Symantec SSLTLS
96 of the worldrsquos 100 largest financial institutions are secured by Symantec SSLTLS
80
71096
Most Comprehensive Offerings and Solutions Orientation
Fastest Performance in Industry with Scale
World Class and Secure Service Availability
Best Root Ubiquity
Global Support
Symantec Website Security ENCRYPTION EVERYWHERE
18
WEBSITE SECURITY
Focus on our unique scale amp operational viability our breadth of offerings enabling unparalleled partner upsell opportunities and customized marketing support
to drive partner growth
Shift the internet to encryption by defaulthellip move from todayrsquos meager 3 encryption to 100
Shifting to upsell modelAccelerate market share expansion for SSLTLS
certificates
Rapidly Expand Volume
Drive Double Digit Growth
Secure the Worldrsquos Traffic
19
Consumer Security
Digital Safety Platform
Protecting your information devices identity and over 50 million consumers every day
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
6
Integrated Cyber Defense Platform
bull Stay ahead of advanced threats
bull Secure sensitive information and critical documents ndash on premise or in the cloud
bull Promote customer confidence with superior encryption and code signing
Enterprise Security
Cloud Generation Security
7
Protection from
Advanced Threats
Securing a Mobile
Workforce
Ensuring Safe
Cloud Usage
Cloud Generation Security
8
Web
Blue Coat Proxy-based Secure Web Gateway (SWG)Critical Network Control Point for Security and Compliance
bull Appliance (ProxySG)
bull Virtual Appliance (vSWG)
bull Web Security Service (WSS)
File Extraction amp Orchestration Services (ATP DLP)
Powerful Open Policy Platform- In Cloud On Prem Virtual AWS
Web Access Governance amp Threat Protection
+ Blue Coat Intelligence Services (BCIS)
or Blue Coat Web Filter (BCWF) subscriptions
PROXY
BCIS
Web Security Service (WSS)
PROXY
9
Secure Web GatewayProxySG and Advanced Secure Gateway
Proxy
Proxy All Endpoints
bull Terminate and decrypt trafficbull Emulate all device types bull Extract content for inspectionbull Integrate authentication
Control Web amp Cloud Governancebull Discover amp control shadow IT riskbull Block web-borne threatsbull Enforce access policy amp audit usage
of web amp cloud
W W W W E B S I T E C O M
Prevent Threats amp Orchestrate Contentbull Pre-filter sandbox with advanced content
inspectionbull Send content to DLP sandbox analytics etc bull Open integration architecture to quickly
add new services
JAR EXE
Enhance the User Experience amp Performancebull Video Acceleration and Split Tunnelingbull Asymmetric Caching of Contentbull Optimized Protocol Support
10
The Cloud Generation Security ChallengeA Shifting Expanse of Blind Spots
11
SSL
MobileBYODIoT Endpoints
HeadquartersData Center
RegionalOffice
TraditionalSecurity Stack
Expanding Use of Encryption Creates Blind Spots
Traditional Security Stack Has Lost Significant Visibility As Resources
Go Direct-to-Net
Cloud Applications Causing Organizations to Lose Control
Over Their Resources
Rapidly Growing Landscape of Unprotected Devices
Users
Cloud Applications And Services
Accelerating Cloud DLP with CASB
12
Apply Fine-Tuned Policies to Cloud
Leverage Workflow Integrations
Gain CASB Functionalitybull Shadow IT Analysisbull Granular Visibility and Controlbull User Behavior Analytics
Extend DLP to 60+ Cloud Apps
Unmanaged devicesExtended perimeter
Symantec DLP Management
Console
Managed devices with DLP Endpoint Agent
Direct to Net access
PoliciesIncidents
Corporate Datacenter
PoliciesIncidents
PoliciesIncidents
SymantecCloudDLP
13
Machine Learning
bull Pre-execution detection for new and evolving threats
Application Protection
bull Memory Exploit Mitigation
Emulator
bull Anti-evasion technique to detect hidden malware
Intelligent Threat Cloud
bull Real-time cloud lookup ~70 reduction in definition size
Performance Enhancements
bull Faster real-time virus detection
Enabling Integrations
bull REST APIs
bull Enable Blue Coat integrations
Enhanced Automation
bull Expanded LiveUpdate to deliver security updates for Windows clients
Superior Protection High Performance Orchestrated Response
Secure Vulnerable Apps
Pre-Execution Detection
StrongAnti-Evasion
Easy IntegrationsFaster and
Light WeightAutomation
70 drop in daily updates
Symantec Endpoint Protection 14
Introducing Symantec Endpoint Protection 14Protection against advanced threats without compromising end-user or IT productivity
Overview of the Symantec Email Security Solution
Multi-Tenant Cloud-Based SolutionSolution Overview
bull Blocks targeted attacks spear phishing viruses amp malware spam and bulk mail
bull Controls sensitive data and helps meet compliance amp privacy requirements
bull Detects new and stealthy targeted amp advanced attacks
bull Provides deep visibility into targeted attacks and accelerates remediation
InboundOutbound
Third-party
Advanced Threat Protection
Anti-Spam
Anti-Malware
Data Protection
Image ControlFirewallUsers On-premise Email Server
CloudEmail Server
Users
14
Managed Cyber DefenseA Comprehensive Integrated Portfolio for Every Stage of the Attack Lifecycle
Track and Analyze Adversary Groups and Key Trends and Events around the globe for Actionable Intelligence
DeepSightIntelligence
Detect and Proactively Hunt for Targeted Attacks Advanced Threats and Campaigns
Managed Security Services
Respond Quickly and Effectively to Credible Security Threats and Incidents
Incident Response
Strengthen Cyber Readiness to Build Employee Resiliency and Prevent Sophisticated Attacks
Cyber Skills Development
World-Class Security Expertise gt Reactive to Proactive gt Integrated End-to-End Security
Before an Attack
During an Attack
After an Attack
Preparing for an Attack
15
Symantec Website Security
16
Website Security Market
Symantec Offerings
SSLCertificates
Domain Validated Certificates
Organization Validated Certificates
Extended Validated Certificates
SSL Discovery and Certificate Lifecycle Automation
Code signing
OEM Offerings
Web Application Firewall (WAF)
Distributed denial of service (DDOS)
WEBSITE SECURITY
An SSL Certificate isbull A server-based productbull Enables encryption of data in transitbull And provides validation of the certificate
holderrsquos identity
Inspiresbull Assurance of safety and securitybull Trust and confidence to transact
Creatingbull Site stickinessbull Business uplift
SSL 101
Symantec Website Security
17
Symantec is the Leader
WEBSITE SECURITY
Differentiation
90 of Fortune 500 companies are secured by Symantec SSLTLS
Symantec issues 7 out of every 10 code signing certificates globally
90
Nortontrade Secured Seal is the most recognized trust mark on the Internet
80 of the 500 largest ecommerce sites in North America are secured by Symantec SSLTLS
96 of the worldrsquos 100 largest financial institutions are secured by Symantec SSLTLS
80
71096
Most Comprehensive Offerings and Solutions Orientation
Fastest Performance in Industry with Scale
World Class and Secure Service Availability
Best Root Ubiquity
Global Support
Symantec Website Security ENCRYPTION EVERYWHERE
18
WEBSITE SECURITY
Focus on our unique scale amp operational viability our breadth of offerings enabling unparalleled partner upsell opportunities and customized marketing support
to drive partner growth
Shift the internet to encryption by defaulthellip move from todayrsquos meager 3 encryption to 100
Shifting to upsell modelAccelerate market share expansion for SSLTLS
certificates
Rapidly Expand Volume
Drive Double Digit Growth
Secure the Worldrsquos Traffic
19
Consumer Security
Digital Safety Platform
Protecting your information devices identity and over 50 million consumers every day
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Cloud Generation Security
7
Protection from
Advanced Threats
Securing a Mobile
Workforce
Ensuring Safe
Cloud Usage
Cloud Generation Security
8
Web
Blue Coat Proxy-based Secure Web Gateway (SWG)Critical Network Control Point for Security and Compliance
bull Appliance (ProxySG)
bull Virtual Appliance (vSWG)
bull Web Security Service (WSS)
File Extraction amp Orchestration Services (ATP DLP)
Powerful Open Policy Platform- In Cloud On Prem Virtual AWS
Web Access Governance amp Threat Protection
+ Blue Coat Intelligence Services (BCIS)
or Blue Coat Web Filter (BCWF) subscriptions
PROXY
BCIS
Web Security Service (WSS)
PROXY
9
Secure Web GatewayProxySG and Advanced Secure Gateway
Proxy
Proxy All Endpoints
bull Terminate and decrypt trafficbull Emulate all device types bull Extract content for inspectionbull Integrate authentication
Control Web amp Cloud Governancebull Discover amp control shadow IT riskbull Block web-borne threatsbull Enforce access policy amp audit usage
of web amp cloud
W W W W E B S I T E C O M
Prevent Threats amp Orchestrate Contentbull Pre-filter sandbox with advanced content
inspectionbull Send content to DLP sandbox analytics etc bull Open integration architecture to quickly
add new services
JAR EXE
Enhance the User Experience amp Performancebull Video Acceleration and Split Tunnelingbull Asymmetric Caching of Contentbull Optimized Protocol Support
10
The Cloud Generation Security ChallengeA Shifting Expanse of Blind Spots
11
SSL
MobileBYODIoT Endpoints
HeadquartersData Center
RegionalOffice
TraditionalSecurity Stack
Expanding Use of Encryption Creates Blind Spots
Traditional Security Stack Has Lost Significant Visibility As Resources
Go Direct-to-Net
Cloud Applications Causing Organizations to Lose Control
Over Their Resources
Rapidly Growing Landscape of Unprotected Devices
Users
Cloud Applications And Services
Accelerating Cloud DLP with CASB
12
Apply Fine-Tuned Policies to Cloud
Leverage Workflow Integrations
Gain CASB Functionalitybull Shadow IT Analysisbull Granular Visibility and Controlbull User Behavior Analytics
Extend DLP to 60+ Cloud Apps
Unmanaged devicesExtended perimeter
Symantec DLP Management
Console
Managed devices with DLP Endpoint Agent
Direct to Net access
PoliciesIncidents
Corporate Datacenter
PoliciesIncidents
PoliciesIncidents
SymantecCloudDLP
13
Machine Learning
bull Pre-execution detection for new and evolving threats
Application Protection
bull Memory Exploit Mitigation
Emulator
bull Anti-evasion technique to detect hidden malware
Intelligent Threat Cloud
bull Real-time cloud lookup ~70 reduction in definition size
Performance Enhancements
bull Faster real-time virus detection
Enabling Integrations
bull REST APIs
bull Enable Blue Coat integrations
Enhanced Automation
bull Expanded LiveUpdate to deliver security updates for Windows clients
Superior Protection High Performance Orchestrated Response
Secure Vulnerable Apps
Pre-Execution Detection
StrongAnti-Evasion
Easy IntegrationsFaster and
Light WeightAutomation
70 drop in daily updates
Symantec Endpoint Protection 14
Introducing Symantec Endpoint Protection 14Protection against advanced threats without compromising end-user or IT productivity
Overview of the Symantec Email Security Solution
Multi-Tenant Cloud-Based SolutionSolution Overview
bull Blocks targeted attacks spear phishing viruses amp malware spam and bulk mail
bull Controls sensitive data and helps meet compliance amp privacy requirements
bull Detects new and stealthy targeted amp advanced attacks
bull Provides deep visibility into targeted attacks and accelerates remediation
InboundOutbound
Third-party
Advanced Threat Protection
Anti-Spam
Anti-Malware
Data Protection
Image ControlFirewallUsers On-premise Email Server
CloudEmail Server
Users
14
Managed Cyber DefenseA Comprehensive Integrated Portfolio for Every Stage of the Attack Lifecycle
Track and Analyze Adversary Groups and Key Trends and Events around the globe for Actionable Intelligence
DeepSightIntelligence
Detect and Proactively Hunt for Targeted Attacks Advanced Threats and Campaigns
Managed Security Services
Respond Quickly and Effectively to Credible Security Threats and Incidents
Incident Response
Strengthen Cyber Readiness to Build Employee Resiliency and Prevent Sophisticated Attacks
Cyber Skills Development
World-Class Security Expertise gt Reactive to Proactive gt Integrated End-to-End Security
Before an Attack
During an Attack
After an Attack
Preparing for an Attack
15
Symantec Website Security
16
Website Security Market
Symantec Offerings
SSLCertificates
Domain Validated Certificates
Organization Validated Certificates
Extended Validated Certificates
SSL Discovery and Certificate Lifecycle Automation
Code signing
OEM Offerings
Web Application Firewall (WAF)
Distributed denial of service (DDOS)
WEBSITE SECURITY
An SSL Certificate isbull A server-based productbull Enables encryption of data in transitbull And provides validation of the certificate
holderrsquos identity
Inspiresbull Assurance of safety and securitybull Trust and confidence to transact
Creatingbull Site stickinessbull Business uplift
SSL 101
Symantec Website Security
17
Symantec is the Leader
WEBSITE SECURITY
Differentiation
90 of Fortune 500 companies are secured by Symantec SSLTLS
Symantec issues 7 out of every 10 code signing certificates globally
90
Nortontrade Secured Seal is the most recognized trust mark on the Internet
80 of the 500 largest ecommerce sites in North America are secured by Symantec SSLTLS
96 of the worldrsquos 100 largest financial institutions are secured by Symantec SSLTLS
80
71096
Most Comprehensive Offerings and Solutions Orientation
Fastest Performance in Industry with Scale
World Class and Secure Service Availability
Best Root Ubiquity
Global Support
Symantec Website Security ENCRYPTION EVERYWHERE
18
WEBSITE SECURITY
Focus on our unique scale amp operational viability our breadth of offerings enabling unparalleled partner upsell opportunities and customized marketing support
to drive partner growth
Shift the internet to encryption by defaulthellip move from todayrsquos meager 3 encryption to 100
Shifting to upsell modelAccelerate market share expansion for SSLTLS
certificates
Rapidly Expand Volume
Drive Double Digit Growth
Secure the Worldrsquos Traffic
19
Consumer Security
Digital Safety Platform
Protecting your information devices identity and over 50 million consumers every day
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
8
Web
Blue Coat Proxy-based Secure Web Gateway (SWG)Critical Network Control Point for Security and Compliance
bull Appliance (ProxySG)
bull Virtual Appliance (vSWG)
bull Web Security Service (WSS)
File Extraction amp Orchestration Services (ATP DLP)
Powerful Open Policy Platform- In Cloud On Prem Virtual AWS
Web Access Governance amp Threat Protection
+ Blue Coat Intelligence Services (BCIS)
or Blue Coat Web Filter (BCWF) subscriptions
PROXY
BCIS
Web Security Service (WSS)
PROXY
9
Secure Web GatewayProxySG and Advanced Secure Gateway
Proxy
Proxy All Endpoints
bull Terminate and decrypt trafficbull Emulate all device types bull Extract content for inspectionbull Integrate authentication
Control Web amp Cloud Governancebull Discover amp control shadow IT riskbull Block web-borne threatsbull Enforce access policy amp audit usage
of web amp cloud
W W W W E B S I T E C O M
Prevent Threats amp Orchestrate Contentbull Pre-filter sandbox with advanced content
inspectionbull Send content to DLP sandbox analytics etc bull Open integration architecture to quickly
add new services
JAR EXE
Enhance the User Experience amp Performancebull Video Acceleration and Split Tunnelingbull Asymmetric Caching of Contentbull Optimized Protocol Support
10
The Cloud Generation Security ChallengeA Shifting Expanse of Blind Spots
11
SSL
MobileBYODIoT Endpoints
HeadquartersData Center
RegionalOffice
TraditionalSecurity Stack
Expanding Use of Encryption Creates Blind Spots
Traditional Security Stack Has Lost Significant Visibility As Resources
Go Direct-to-Net
Cloud Applications Causing Organizations to Lose Control
Over Their Resources
Rapidly Growing Landscape of Unprotected Devices
Users
Cloud Applications And Services
Accelerating Cloud DLP with CASB
12
Apply Fine-Tuned Policies to Cloud
Leverage Workflow Integrations
Gain CASB Functionalitybull Shadow IT Analysisbull Granular Visibility and Controlbull User Behavior Analytics
Extend DLP to 60+ Cloud Apps
Unmanaged devicesExtended perimeter
Symantec DLP Management
Console
Managed devices with DLP Endpoint Agent
Direct to Net access
PoliciesIncidents
Corporate Datacenter
PoliciesIncidents
PoliciesIncidents
SymantecCloudDLP
13
Machine Learning
bull Pre-execution detection for new and evolving threats
Application Protection
bull Memory Exploit Mitigation
Emulator
bull Anti-evasion technique to detect hidden malware
Intelligent Threat Cloud
bull Real-time cloud lookup ~70 reduction in definition size
Performance Enhancements
bull Faster real-time virus detection
Enabling Integrations
bull REST APIs
bull Enable Blue Coat integrations
Enhanced Automation
bull Expanded LiveUpdate to deliver security updates for Windows clients
Superior Protection High Performance Orchestrated Response
Secure Vulnerable Apps
Pre-Execution Detection
StrongAnti-Evasion
Easy IntegrationsFaster and
Light WeightAutomation
70 drop in daily updates
Symantec Endpoint Protection 14
Introducing Symantec Endpoint Protection 14Protection against advanced threats without compromising end-user or IT productivity
Overview of the Symantec Email Security Solution
Multi-Tenant Cloud-Based SolutionSolution Overview
bull Blocks targeted attacks spear phishing viruses amp malware spam and bulk mail
bull Controls sensitive data and helps meet compliance amp privacy requirements
bull Detects new and stealthy targeted amp advanced attacks
bull Provides deep visibility into targeted attacks and accelerates remediation
InboundOutbound
Third-party
Advanced Threat Protection
Anti-Spam
Anti-Malware
Data Protection
Image ControlFirewallUsers On-premise Email Server
CloudEmail Server
Users
14
Managed Cyber DefenseA Comprehensive Integrated Portfolio for Every Stage of the Attack Lifecycle
Track and Analyze Adversary Groups and Key Trends and Events around the globe for Actionable Intelligence
DeepSightIntelligence
Detect and Proactively Hunt for Targeted Attacks Advanced Threats and Campaigns
Managed Security Services
Respond Quickly and Effectively to Credible Security Threats and Incidents
Incident Response
Strengthen Cyber Readiness to Build Employee Resiliency and Prevent Sophisticated Attacks
Cyber Skills Development
World-Class Security Expertise gt Reactive to Proactive gt Integrated End-to-End Security
Before an Attack
During an Attack
After an Attack
Preparing for an Attack
15
Symantec Website Security
16
Website Security Market
Symantec Offerings
SSLCertificates
Domain Validated Certificates
Organization Validated Certificates
Extended Validated Certificates
SSL Discovery and Certificate Lifecycle Automation
Code signing
OEM Offerings
Web Application Firewall (WAF)
Distributed denial of service (DDOS)
WEBSITE SECURITY
An SSL Certificate isbull A server-based productbull Enables encryption of data in transitbull And provides validation of the certificate
holderrsquos identity
Inspiresbull Assurance of safety and securitybull Trust and confidence to transact
Creatingbull Site stickinessbull Business uplift
SSL 101
Symantec Website Security
17
Symantec is the Leader
WEBSITE SECURITY
Differentiation
90 of Fortune 500 companies are secured by Symantec SSLTLS
Symantec issues 7 out of every 10 code signing certificates globally
90
Nortontrade Secured Seal is the most recognized trust mark on the Internet
80 of the 500 largest ecommerce sites in North America are secured by Symantec SSLTLS
96 of the worldrsquos 100 largest financial institutions are secured by Symantec SSLTLS
80
71096
Most Comprehensive Offerings and Solutions Orientation
Fastest Performance in Industry with Scale
World Class and Secure Service Availability
Best Root Ubiquity
Global Support
Symantec Website Security ENCRYPTION EVERYWHERE
18
WEBSITE SECURITY
Focus on our unique scale amp operational viability our breadth of offerings enabling unparalleled partner upsell opportunities and customized marketing support
to drive partner growth
Shift the internet to encryption by defaulthellip move from todayrsquos meager 3 encryption to 100
Shifting to upsell modelAccelerate market share expansion for SSLTLS
certificates
Rapidly Expand Volume
Drive Double Digit Growth
Secure the Worldrsquos Traffic
19
Consumer Security
Digital Safety Platform
Protecting your information devices identity and over 50 million consumers every day
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Web
Blue Coat Proxy-based Secure Web Gateway (SWG)Critical Network Control Point for Security and Compliance
bull Appliance (ProxySG)
bull Virtual Appliance (vSWG)
bull Web Security Service (WSS)
File Extraction amp Orchestration Services (ATP DLP)
Powerful Open Policy Platform- In Cloud On Prem Virtual AWS
Web Access Governance amp Threat Protection
+ Blue Coat Intelligence Services (BCIS)
or Blue Coat Web Filter (BCWF) subscriptions
PROXY
BCIS
Web Security Service (WSS)
PROXY
9
Secure Web GatewayProxySG and Advanced Secure Gateway
Proxy
Proxy All Endpoints
bull Terminate and decrypt trafficbull Emulate all device types bull Extract content for inspectionbull Integrate authentication
Control Web amp Cloud Governancebull Discover amp control shadow IT riskbull Block web-borne threatsbull Enforce access policy amp audit usage
of web amp cloud
W W W W E B S I T E C O M
Prevent Threats amp Orchestrate Contentbull Pre-filter sandbox with advanced content
inspectionbull Send content to DLP sandbox analytics etc bull Open integration architecture to quickly
add new services
JAR EXE
Enhance the User Experience amp Performancebull Video Acceleration and Split Tunnelingbull Asymmetric Caching of Contentbull Optimized Protocol Support
10
The Cloud Generation Security ChallengeA Shifting Expanse of Blind Spots
11
SSL
MobileBYODIoT Endpoints
HeadquartersData Center
RegionalOffice
TraditionalSecurity Stack
Expanding Use of Encryption Creates Blind Spots
Traditional Security Stack Has Lost Significant Visibility As Resources
Go Direct-to-Net
Cloud Applications Causing Organizations to Lose Control
Over Their Resources
Rapidly Growing Landscape of Unprotected Devices
Users
Cloud Applications And Services
Accelerating Cloud DLP with CASB
12
Apply Fine-Tuned Policies to Cloud
Leverage Workflow Integrations
Gain CASB Functionalitybull Shadow IT Analysisbull Granular Visibility and Controlbull User Behavior Analytics
Extend DLP to 60+ Cloud Apps
Unmanaged devicesExtended perimeter
Symantec DLP Management
Console
Managed devices with DLP Endpoint Agent
Direct to Net access
PoliciesIncidents
Corporate Datacenter
PoliciesIncidents
PoliciesIncidents
SymantecCloudDLP
13
Machine Learning
bull Pre-execution detection for new and evolving threats
Application Protection
bull Memory Exploit Mitigation
Emulator
bull Anti-evasion technique to detect hidden malware
Intelligent Threat Cloud
bull Real-time cloud lookup ~70 reduction in definition size
Performance Enhancements
bull Faster real-time virus detection
Enabling Integrations
bull REST APIs
bull Enable Blue Coat integrations
Enhanced Automation
bull Expanded LiveUpdate to deliver security updates for Windows clients
Superior Protection High Performance Orchestrated Response
Secure Vulnerable Apps
Pre-Execution Detection
StrongAnti-Evasion
Easy IntegrationsFaster and
Light WeightAutomation
70 drop in daily updates
Symantec Endpoint Protection 14
Introducing Symantec Endpoint Protection 14Protection against advanced threats without compromising end-user or IT productivity
Overview of the Symantec Email Security Solution
Multi-Tenant Cloud-Based SolutionSolution Overview
bull Blocks targeted attacks spear phishing viruses amp malware spam and bulk mail
bull Controls sensitive data and helps meet compliance amp privacy requirements
bull Detects new and stealthy targeted amp advanced attacks
bull Provides deep visibility into targeted attacks and accelerates remediation
InboundOutbound
Third-party
Advanced Threat Protection
Anti-Spam
Anti-Malware
Data Protection
Image ControlFirewallUsers On-premise Email Server
CloudEmail Server
Users
14
Managed Cyber DefenseA Comprehensive Integrated Portfolio for Every Stage of the Attack Lifecycle
Track and Analyze Adversary Groups and Key Trends and Events around the globe for Actionable Intelligence
DeepSightIntelligence
Detect and Proactively Hunt for Targeted Attacks Advanced Threats and Campaigns
Managed Security Services
Respond Quickly and Effectively to Credible Security Threats and Incidents
Incident Response
Strengthen Cyber Readiness to Build Employee Resiliency and Prevent Sophisticated Attacks
Cyber Skills Development
World-Class Security Expertise gt Reactive to Proactive gt Integrated End-to-End Security
Before an Attack
During an Attack
After an Attack
Preparing for an Attack
15
Symantec Website Security
16
Website Security Market
Symantec Offerings
SSLCertificates
Domain Validated Certificates
Organization Validated Certificates
Extended Validated Certificates
SSL Discovery and Certificate Lifecycle Automation
Code signing
OEM Offerings
Web Application Firewall (WAF)
Distributed denial of service (DDOS)
WEBSITE SECURITY
An SSL Certificate isbull A server-based productbull Enables encryption of data in transitbull And provides validation of the certificate
holderrsquos identity
Inspiresbull Assurance of safety and securitybull Trust and confidence to transact
Creatingbull Site stickinessbull Business uplift
SSL 101
Symantec Website Security
17
Symantec is the Leader
WEBSITE SECURITY
Differentiation
90 of Fortune 500 companies are secured by Symantec SSLTLS
Symantec issues 7 out of every 10 code signing certificates globally
90
Nortontrade Secured Seal is the most recognized trust mark on the Internet
80 of the 500 largest ecommerce sites in North America are secured by Symantec SSLTLS
96 of the worldrsquos 100 largest financial institutions are secured by Symantec SSLTLS
80
71096
Most Comprehensive Offerings and Solutions Orientation
Fastest Performance in Industry with Scale
World Class and Secure Service Availability
Best Root Ubiquity
Global Support
Symantec Website Security ENCRYPTION EVERYWHERE
18
WEBSITE SECURITY
Focus on our unique scale amp operational viability our breadth of offerings enabling unparalleled partner upsell opportunities and customized marketing support
to drive partner growth
Shift the internet to encryption by defaulthellip move from todayrsquos meager 3 encryption to 100
Shifting to upsell modelAccelerate market share expansion for SSLTLS
certificates
Rapidly Expand Volume
Drive Double Digit Growth
Secure the Worldrsquos Traffic
19
Consumer Security
Digital Safety Platform
Protecting your information devices identity and over 50 million consumers every day
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Secure Web GatewayProxySG and Advanced Secure Gateway
Proxy
Proxy All Endpoints
bull Terminate and decrypt trafficbull Emulate all device types bull Extract content for inspectionbull Integrate authentication
Control Web amp Cloud Governancebull Discover amp control shadow IT riskbull Block web-borne threatsbull Enforce access policy amp audit usage
of web amp cloud
W W W W E B S I T E C O M
Prevent Threats amp Orchestrate Contentbull Pre-filter sandbox with advanced content
inspectionbull Send content to DLP sandbox analytics etc bull Open integration architecture to quickly
add new services
JAR EXE
Enhance the User Experience amp Performancebull Video Acceleration and Split Tunnelingbull Asymmetric Caching of Contentbull Optimized Protocol Support
10
The Cloud Generation Security ChallengeA Shifting Expanse of Blind Spots
11
SSL
MobileBYODIoT Endpoints
HeadquartersData Center
RegionalOffice
TraditionalSecurity Stack
Expanding Use of Encryption Creates Blind Spots
Traditional Security Stack Has Lost Significant Visibility As Resources
Go Direct-to-Net
Cloud Applications Causing Organizations to Lose Control
Over Their Resources
Rapidly Growing Landscape of Unprotected Devices
Users
Cloud Applications And Services
Accelerating Cloud DLP with CASB
12
Apply Fine-Tuned Policies to Cloud
Leverage Workflow Integrations
Gain CASB Functionalitybull Shadow IT Analysisbull Granular Visibility and Controlbull User Behavior Analytics
Extend DLP to 60+ Cloud Apps
Unmanaged devicesExtended perimeter
Symantec DLP Management
Console
Managed devices with DLP Endpoint Agent
Direct to Net access
PoliciesIncidents
Corporate Datacenter
PoliciesIncidents
PoliciesIncidents
SymantecCloudDLP
13
Machine Learning
bull Pre-execution detection for new and evolving threats
Application Protection
bull Memory Exploit Mitigation
Emulator
bull Anti-evasion technique to detect hidden malware
Intelligent Threat Cloud
bull Real-time cloud lookup ~70 reduction in definition size
Performance Enhancements
bull Faster real-time virus detection
Enabling Integrations
bull REST APIs
bull Enable Blue Coat integrations
Enhanced Automation
bull Expanded LiveUpdate to deliver security updates for Windows clients
Superior Protection High Performance Orchestrated Response
Secure Vulnerable Apps
Pre-Execution Detection
StrongAnti-Evasion
Easy IntegrationsFaster and
Light WeightAutomation
70 drop in daily updates
Symantec Endpoint Protection 14
Introducing Symantec Endpoint Protection 14Protection against advanced threats without compromising end-user or IT productivity
Overview of the Symantec Email Security Solution
Multi-Tenant Cloud-Based SolutionSolution Overview
bull Blocks targeted attacks spear phishing viruses amp malware spam and bulk mail
bull Controls sensitive data and helps meet compliance amp privacy requirements
bull Detects new and stealthy targeted amp advanced attacks
bull Provides deep visibility into targeted attacks and accelerates remediation
InboundOutbound
Third-party
Advanced Threat Protection
Anti-Spam
Anti-Malware
Data Protection
Image ControlFirewallUsers On-premise Email Server
CloudEmail Server
Users
14
Managed Cyber DefenseA Comprehensive Integrated Portfolio for Every Stage of the Attack Lifecycle
Track and Analyze Adversary Groups and Key Trends and Events around the globe for Actionable Intelligence
DeepSightIntelligence
Detect and Proactively Hunt for Targeted Attacks Advanced Threats and Campaigns
Managed Security Services
Respond Quickly and Effectively to Credible Security Threats and Incidents
Incident Response
Strengthen Cyber Readiness to Build Employee Resiliency and Prevent Sophisticated Attacks
Cyber Skills Development
World-Class Security Expertise gt Reactive to Proactive gt Integrated End-to-End Security
Before an Attack
During an Attack
After an Attack
Preparing for an Attack
15
Symantec Website Security
16
Website Security Market
Symantec Offerings
SSLCertificates
Domain Validated Certificates
Organization Validated Certificates
Extended Validated Certificates
SSL Discovery and Certificate Lifecycle Automation
Code signing
OEM Offerings
Web Application Firewall (WAF)
Distributed denial of service (DDOS)
WEBSITE SECURITY
An SSL Certificate isbull A server-based productbull Enables encryption of data in transitbull And provides validation of the certificate
holderrsquos identity
Inspiresbull Assurance of safety and securitybull Trust and confidence to transact
Creatingbull Site stickinessbull Business uplift
SSL 101
Symantec Website Security
17
Symantec is the Leader
WEBSITE SECURITY
Differentiation
90 of Fortune 500 companies are secured by Symantec SSLTLS
Symantec issues 7 out of every 10 code signing certificates globally
90
Nortontrade Secured Seal is the most recognized trust mark on the Internet
80 of the 500 largest ecommerce sites in North America are secured by Symantec SSLTLS
96 of the worldrsquos 100 largest financial institutions are secured by Symantec SSLTLS
80
71096
Most Comprehensive Offerings and Solutions Orientation
Fastest Performance in Industry with Scale
World Class and Secure Service Availability
Best Root Ubiquity
Global Support
Symantec Website Security ENCRYPTION EVERYWHERE
18
WEBSITE SECURITY
Focus on our unique scale amp operational viability our breadth of offerings enabling unparalleled partner upsell opportunities and customized marketing support
to drive partner growth
Shift the internet to encryption by defaulthellip move from todayrsquos meager 3 encryption to 100
Shifting to upsell modelAccelerate market share expansion for SSLTLS
certificates
Rapidly Expand Volume
Drive Double Digit Growth
Secure the Worldrsquos Traffic
19
Consumer Security
Digital Safety Platform
Protecting your information devices identity and over 50 million consumers every day
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
The Cloud Generation Security ChallengeA Shifting Expanse of Blind Spots
11
SSL
MobileBYODIoT Endpoints
HeadquartersData Center
RegionalOffice
TraditionalSecurity Stack
Expanding Use of Encryption Creates Blind Spots
Traditional Security Stack Has Lost Significant Visibility As Resources
Go Direct-to-Net
Cloud Applications Causing Organizations to Lose Control
Over Their Resources
Rapidly Growing Landscape of Unprotected Devices
Users
Cloud Applications And Services
Accelerating Cloud DLP with CASB
12
Apply Fine-Tuned Policies to Cloud
Leverage Workflow Integrations
Gain CASB Functionalitybull Shadow IT Analysisbull Granular Visibility and Controlbull User Behavior Analytics
Extend DLP to 60+ Cloud Apps
Unmanaged devicesExtended perimeter
Symantec DLP Management
Console
Managed devices with DLP Endpoint Agent
Direct to Net access
PoliciesIncidents
Corporate Datacenter
PoliciesIncidents
PoliciesIncidents
SymantecCloudDLP
13
Machine Learning
bull Pre-execution detection for new and evolving threats
Application Protection
bull Memory Exploit Mitigation
Emulator
bull Anti-evasion technique to detect hidden malware
Intelligent Threat Cloud
bull Real-time cloud lookup ~70 reduction in definition size
Performance Enhancements
bull Faster real-time virus detection
Enabling Integrations
bull REST APIs
bull Enable Blue Coat integrations
Enhanced Automation
bull Expanded LiveUpdate to deliver security updates for Windows clients
Superior Protection High Performance Orchestrated Response
Secure Vulnerable Apps
Pre-Execution Detection
StrongAnti-Evasion
Easy IntegrationsFaster and
Light WeightAutomation
70 drop in daily updates
Symantec Endpoint Protection 14
Introducing Symantec Endpoint Protection 14Protection against advanced threats without compromising end-user or IT productivity
Overview of the Symantec Email Security Solution
Multi-Tenant Cloud-Based SolutionSolution Overview
bull Blocks targeted attacks spear phishing viruses amp malware spam and bulk mail
bull Controls sensitive data and helps meet compliance amp privacy requirements
bull Detects new and stealthy targeted amp advanced attacks
bull Provides deep visibility into targeted attacks and accelerates remediation
InboundOutbound
Third-party
Advanced Threat Protection
Anti-Spam
Anti-Malware
Data Protection
Image ControlFirewallUsers On-premise Email Server
CloudEmail Server
Users
14
Managed Cyber DefenseA Comprehensive Integrated Portfolio for Every Stage of the Attack Lifecycle
Track and Analyze Adversary Groups and Key Trends and Events around the globe for Actionable Intelligence
DeepSightIntelligence
Detect and Proactively Hunt for Targeted Attacks Advanced Threats and Campaigns
Managed Security Services
Respond Quickly and Effectively to Credible Security Threats and Incidents
Incident Response
Strengthen Cyber Readiness to Build Employee Resiliency and Prevent Sophisticated Attacks
Cyber Skills Development
World-Class Security Expertise gt Reactive to Proactive gt Integrated End-to-End Security
Before an Attack
During an Attack
After an Attack
Preparing for an Attack
15
Symantec Website Security
16
Website Security Market
Symantec Offerings
SSLCertificates
Domain Validated Certificates
Organization Validated Certificates
Extended Validated Certificates
SSL Discovery and Certificate Lifecycle Automation
Code signing
OEM Offerings
Web Application Firewall (WAF)
Distributed denial of service (DDOS)
WEBSITE SECURITY
An SSL Certificate isbull A server-based productbull Enables encryption of data in transitbull And provides validation of the certificate
holderrsquos identity
Inspiresbull Assurance of safety and securitybull Trust and confidence to transact
Creatingbull Site stickinessbull Business uplift
SSL 101
Symantec Website Security
17
Symantec is the Leader
WEBSITE SECURITY
Differentiation
90 of Fortune 500 companies are secured by Symantec SSLTLS
Symantec issues 7 out of every 10 code signing certificates globally
90
Nortontrade Secured Seal is the most recognized trust mark on the Internet
80 of the 500 largest ecommerce sites in North America are secured by Symantec SSLTLS
96 of the worldrsquos 100 largest financial institutions are secured by Symantec SSLTLS
80
71096
Most Comprehensive Offerings and Solutions Orientation
Fastest Performance in Industry with Scale
World Class and Secure Service Availability
Best Root Ubiquity
Global Support
Symantec Website Security ENCRYPTION EVERYWHERE
18
WEBSITE SECURITY
Focus on our unique scale amp operational viability our breadth of offerings enabling unparalleled partner upsell opportunities and customized marketing support
to drive partner growth
Shift the internet to encryption by defaulthellip move from todayrsquos meager 3 encryption to 100
Shifting to upsell modelAccelerate market share expansion for SSLTLS
certificates
Rapidly Expand Volume
Drive Double Digit Growth
Secure the Worldrsquos Traffic
19
Consumer Security
Digital Safety Platform
Protecting your information devices identity and over 50 million consumers every day
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Accelerating Cloud DLP with CASB
12
Apply Fine-Tuned Policies to Cloud
Leverage Workflow Integrations
Gain CASB Functionalitybull Shadow IT Analysisbull Granular Visibility and Controlbull User Behavior Analytics
Extend DLP to 60+ Cloud Apps
Unmanaged devicesExtended perimeter
Symantec DLP Management
Console
Managed devices with DLP Endpoint Agent
Direct to Net access
PoliciesIncidents
Corporate Datacenter
PoliciesIncidents
PoliciesIncidents
SymantecCloudDLP
13
Machine Learning
bull Pre-execution detection for new and evolving threats
Application Protection
bull Memory Exploit Mitigation
Emulator
bull Anti-evasion technique to detect hidden malware
Intelligent Threat Cloud
bull Real-time cloud lookup ~70 reduction in definition size
Performance Enhancements
bull Faster real-time virus detection
Enabling Integrations
bull REST APIs
bull Enable Blue Coat integrations
Enhanced Automation
bull Expanded LiveUpdate to deliver security updates for Windows clients
Superior Protection High Performance Orchestrated Response
Secure Vulnerable Apps
Pre-Execution Detection
StrongAnti-Evasion
Easy IntegrationsFaster and
Light WeightAutomation
70 drop in daily updates
Symantec Endpoint Protection 14
Introducing Symantec Endpoint Protection 14Protection against advanced threats without compromising end-user or IT productivity
Overview of the Symantec Email Security Solution
Multi-Tenant Cloud-Based SolutionSolution Overview
bull Blocks targeted attacks spear phishing viruses amp malware spam and bulk mail
bull Controls sensitive data and helps meet compliance amp privacy requirements
bull Detects new and stealthy targeted amp advanced attacks
bull Provides deep visibility into targeted attacks and accelerates remediation
InboundOutbound
Third-party
Advanced Threat Protection
Anti-Spam
Anti-Malware
Data Protection
Image ControlFirewallUsers On-premise Email Server
CloudEmail Server
Users
14
Managed Cyber DefenseA Comprehensive Integrated Portfolio for Every Stage of the Attack Lifecycle
Track and Analyze Adversary Groups and Key Trends and Events around the globe for Actionable Intelligence
DeepSightIntelligence
Detect and Proactively Hunt for Targeted Attacks Advanced Threats and Campaigns
Managed Security Services
Respond Quickly and Effectively to Credible Security Threats and Incidents
Incident Response
Strengthen Cyber Readiness to Build Employee Resiliency and Prevent Sophisticated Attacks
Cyber Skills Development
World-Class Security Expertise gt Reactive to Proactive gt Integrated End-to-End Security
Before an Attack
During an Attack
After an Attack
Preparing for an Attack
15
Symantec Website Security
16
Website Security Market
Symantec Offerings
SSLCertificates
Domain Validated Certificates
Organization Validated Certificates
Extended Validated Certificates
SSL Discovery and Certificate Lifecycle Automation
Code signing
OEM Offerings
Web Application Firewall (WAF)
Distributed denial of service (DDOS)
WEBSITE SECURITY
An SSL Certificate isbull A server-based productbull Enables encryption of data in transitbull And provides validation of the certificate
holderrsquos identity
Inspiresbull Assurance of safety and securitybull Trust and confidence to transact
Creatingbull Site stickinessbull Business uplift
SSL 101
Symantec Website Security
17
Symantec is the Leader
WEBSITE SECURITY
Differentiation
90 of Fortune 500 companies are secured by Symantec SSLTLS
Symantec issues 7 out of every 10 code signing certificates globally
90
Nortontrade Secured Seal is the most recognized trust mark on the Internet
80 of the 500 largest ecommerce sites in North America are secured by Symantec SSLTLS
96 of the worldrsquos 100 largest financial institutions are secured by Symantec SSLTLS
80
71096
Most Comprehensive Offerings and Solutions Orientation
Fastest Performance in Industry with Scale
World Class and Secure Service Availability
Best Root Ubiquity
Global Support
Symantec Website Security ENCRYPTION EVERYWHERE
18
WEBSITE SECURITY
Focus on our unique scale amp operational viability our breadth of offerings enabling unparalleled partner upsell opportunities and customized marketing support
to drive partner growth
Shift the internet to encryption by defaulthellip move from todayrsquos meager 3 encryption to 100
Shifting to upsell modelAccelerate market share expansion for SSLTLS
certificates
Rapidly Expand Volume
Drive Double Digit Growth
Secure the Worldrsquos Traffic
19
Consumer Security
Digital Safety Platform
Protecting your information devices identity and over 50 million consumers every day
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
13
Machine Learning
bull Pre-execution detection for new and evolving threats
Application Protection
bull Memory Exploit Mitigation
Emulator
bull Anti-evasion technique to detect hidden malware
Intelligent Threat Cloud
bull Real-time cloud lookup ~70 reduction in definition size
Performance Enhancements
bull Faster real-time virus detection
Enabling Integrations
bull REST APIs
bull Enable Blue Coat integrations
Enhanced Automation
bull Expanded LiveUpdate to deliver security updates for Windows clients
Superior Protection High Performance Orchestrated Response
Secure Vulnerable Apps
Pre-Execution Detection
StrongAnti-Evasion
Easy IntegrationsFaster and
Light WeightAutomation
70 drop in daily updates
Symantec Endpoint Protection 14
Introducing Symantec Endpoint Protection 14Protection against advanced threats without compromising end-user or IT productivity
Overview of the Symantec Email Security Solution
Multi-Tenant Cloud-Based SolutionSolution Overview
bull Blocks targeted attacks spear phishing viruses amp malware spam and bulk mail
bull Controls sensitive data and helps meet compliance amp privacy requirements
bull Detects new and stealthy targeted amp advanced attacks
bull Provides deep visibility into targeted attacks and accelerates remediation
InboundOutbound
Third-party
Advanced Threat Protection
Anti-Spam
Anti-Malware
Data Protection
Image ControlFirewallUsers On-premise Email Server
CloudEmail Server
Users
14
Managed Cyber DefenseA Comprehensive Integrated Portfolio for Every Stage of the Attack Lifecycle
Track and Analyze Adversary Groups and Key Trends and Events around the globe for Actionable Intelligence
DeepSightIntelligence
Detect and Proactively Hunt for Targeted Attacks Advanced Threats and Campaigns
Managed Security Services
Respond Quickly and Effectively to Credible Security Threats and Incidents
Incident Response
Strengthen Cyber Readiness to Build Employee Resiliency and Prevent Sophisticated Attacks
Cyber Skills Development
World-Class Security Expertise gt Reactive to Proactive gt Integrated End-to-End Security
Before an Attack
During an Attack
After an Attack
Preparing for an Attack
15
Symantec Website Security
16
Website Security Market
Symantec Offerings
SSLCertificates
Domain Validated Certificates
Organization Validated Certificates
Extended Validated Certificates
SSL Discovery and Certificate Lifecycle Automation
Code signing
OEM Offerings
Web Application Firewall (WAF)
Distributed denial of service (DDOS)
WEBSITE SECURITY
An SSL Certificate isbull A server-based productbull Enables encryption of data in transitbull And provides validation of the certificate
holderrsquos identity
Inspiresbull Assurance of safety and securitybull Trust and confidence to transact
Creatingbull Site stickinessbull Business uplift
SSL 101
Symantec Website Security
17
Symantec is the Leader
WEBSITE SECURITY
Differentiation
90 of Fortune 500 companies are secured by Symantec SSLTLS
Symantec issues 7 out of every 10 code signing certificates globally
90
Nortontrade Secured Seal is the most recognized trust mark on the Internet
80 of the 500 largest ecommerce sites in North America are secured by Symantec SSLTLS
96 of the worldrsquos 100 largest financial institutions are secured by Symantec SSLTLS
80
71096
Most Comprehensive Offerings and Solutions Orientation
Fastest Performance in Industry with Scale
World Class and Secure Service Availability
Best Root Ubiquity
Global Support
Symantec Website Security ENCRYPTION EVERYWHERE
18
WEBSITE SECURITY
Focus on our unique scale amp operational viability our breadth of offerings enabling unparalleled partner upsell opportunities and customized marketing support
to drive partner growth
Shift the internet to encryption by defaulthellip move from todayrsquos meager 3 encryption to 100
Shifting to upsell modelAccelerate market share expansion for SSLTLS
certificates
Rapidly Expand Volume
Drive Double Digit Growth
Secure the Worldrsquos Traffic
19
Consumer Security
Digital Safety Platform
Protecting your information devices identity and over 50 million consumers every day
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Overview of the Symantec Email Security Solution
Multi-Tenant Cloud-Based SolutionSolution Overview
bull Blocks targeted attacks spear phishing viruses amp malware spam and bulk mail
bull Controls sensitive data and helps meet compliance amp privacy requirements
bull Detects new and stealthy targeted amp advanced attacks
bull Provides deep visibility into targeted attacks and accelerates remediation
InboundOutbound
Third-party
Advanced Threat Protection
Anti-Spam
Anti-Malware
Data Protection
Image ControlFirewallUsers On-premise Email Server
CloudEmail Server
Users
14
Managed Cyber DefenseA Comprehensive Integrated Portfolio for Every Stage of the Attack Lifecycle
Track and Analyze Adversary Groups and Key Trends and Events around the globe for Actionable Intelligence
DeepSightIntelligence
Detect and Proactively Hunt for Targeted Attacks Advanced Threats and Campaigns
Managed Security Services
Respond Quickly and Effectively to Credible Security Threats and Incidents
Incident Response
Strengthen Cyber Readiness to Build Employee Resiliency and Prevent Sophisticated Attacks
Cyber Skills Development
World-Class Security Expertise gt Reactive to Proactive gt Integrated End-to-End Security
Before an Attack
During an Attack
After an Attack
Preparing for an Attack
15
Symantec Website Security
16
Website Security Market
Symantec Offerings
SSLCertificates
Domain Validated Certificates
Organization Validated Certificates
Extended Validated Certificates
SSL Discovery and Certificate Lifecycle Automation
Code signing
OEM Offerings
Web Application Firewall (WAF)
Distributed denial of service (DDOS)
WEBSITE SECURITY
An SSL Certificate isbull A server-based productbull Enables encryption of data in transitbull And provides validation of the certificate
holderrsquos identity
Inspiresbull Assurance of safety and securitybull Trust and confidence to transact
Creatingbull Site stickinessbull Business uplift
SSL 101
Symantec Website Security
17
Symantec is the Leader
WEBSITE SECURITY
Differentiation
90 of Fortune 500 companies are secured by Symantec SSLTLS
Symantec issues 7 out of every 10 code signing certificates globally
90
Nortontrade Secured Seal is the most recognized trust mark on the Internet
80 of the 500 largest ecommerce sites in North America are secured by Symantec SSLTLS
96 of the worldrsquos 100 largest financial institutions are secured by Symantec SSLTLS
80
71096
Most Comprehensive Offerings and Solutions Orientation
Fastest Performance in Industry with Scale
World Class and Secure Service Availability
Best Root Ubiquity
Global Support
Symantec Website Security ENCRYPTION EVERYWHERE
18
WEBSITE SECURITY
Focus on our unique scale amp operational viability our breadth of offerings enabling unparalleled partner upsell opportunities and customized marketing support
to drive partner growth
Shift the internet to encryption by defaulthellip move from todayrsquos meager 3 encryption to 100
Shifting to upsell modelAccelerate market share expansion for SSLTLS
certificates
Rapidly Expand Volume
Drive Double Digit Growth
Secure the Worldrsquos Traffic
19
Consumer Security
Digital Safety Platform
Protecting your information devices identity and over 50 million consumers every day
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Managed Cyber DefenseA Comprehensive Integrated Portfolio for Every Stage of the Attack Lifecycle
Track and Analyze Adversary Groups and Key Trends and Events around the globe for Actionable Intelligence
DeepSightIntelligence
Detect and Proactively Hunt for Targeted Attacks Advanced Threats and Campaigns
Managed Security Services
Respond Quickly and Effectively to Credible Security Threats and Incidents
Incident Response
Strengthen Cyber Readiness to Build Employee Resiliency and Prevent Sophisticated Attacks
Cyber Skills Development
World-Class Security Expertise gt Reactive to Proactive gt Integrated End-to-End Security
Before an Attack
During an Attack
After an Attack
Preparing for an Attack
15
Symantec Website Security
16
Website Security Market
Symantec Offerings
SSLCertificates
Domain Validated Certificates
Organization Validated Certificates
Extended Validated Certificates
SSL Discovery and Certificate Lifecycle Automation
Code signing
OEM Offerings
Web Application Firewall (WAF)
Distributed denial of service (DDOS)
WEBSITE SECURITY
An SSL Certificate isbull A server-based productbull Enables encryption of data in transitbull And provides validation of the certificate
holderrsquos identity
Inspiresbull Assurance of safety and securitybull Trust and confidence to transact
Creatingbull Site stickinessbull Business uplift
SSL 101
Symantec Website Security
17
Symantec is the Leader
WEBSITE SECURITY
Differentiation
90 of Fortune 500 companies are secured by Symantec SSLTLS
Symantec issues 7 out of every 10 code signing certificates globally
90
Nortontrade Secured Seal is the most recognized trust mark on the Internet
80 of the 500 largest ecommerce sites in North America are secured by Symantec SSLTLS
96 of the worldrsquos 100 largest financial institutions are secured by Symantec SSLTLS
80
71096
Most Comprehensive Offerings and Solutions Orientation
Fastest Performance in Industry with Scale
World Class and Secure Service Availability
Best Root Ubiquity
Global Support
Symantec Website Security ENCRYPTION EVERYWHERE
18
WEBSITE SECURITY
Focus on our unique scale amp operational viability our breadth of offerings enabling unparalleled partner upsell opportunities and customized marketing support
to drive partner growth
Shift the internet to encryption by defaulthellip move from todayrsquos meager 3 encryption to 100
Shifting to upsell modelAccelerate market share expansion for SSLTLS
certificates
Rapidly Expand Volume
Drive Double Digit Growth
Secure the Worldrsquos Traffic
19
Consumer Security
Digital Safety Platform
Protecting your information devices identity and over 50 million consumers every day
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Symantec Website Security
16
Website Security Market
Symantec Offerings
SSLCertificates
Domain Validated Certificates
Organization Validated Certificates
Extended Validated Certificates
SSL Discovery and Certificate Lifecycle Automation
Code signing
OEM Offerings
Web Application Firewall (WAF)
Distributed denial of service (DDOS)
WEBSITE SECURITY
An SSL Certificate isbull A server-based productbull Enables encryption of data in transitbull And provides validation of the certificate
holderrsquos identity
Inspiresbull Assurance of safety and securitybull Trust and confidence to transact
Creatingbull Site stickinessbull Business uplift
SSL 101
Symantec Website Security
17
Symantec is the Leader
WEBSITE SECURITY
Differentiation
90 of Fortune 500 companies are secured by Symantec SSLTLS
Symantec issues 7 out of every 10 code signing certificates globally
90
Nortontrade Secured Seal is the most recognized trust mark on the Internet
80 of the 500 largest ecommerce sites in North America are secured by Symantec SSLTLS
96 of the worldrsquos 100 largest financial institutions are secured by Symantec SSLTLS
80
71096
Most Comprehensive Offerings and Solutions Orientation
Fastest Performance in Industry with Scale
World Class and Secure Service Availability
Best Root Ubiquity
Global Support
Symantec Website Security ENCRYPTION EVERYWHERE
18
WEBSITE SECURITY
Focus on our unique scale amp operational viability our breadth of offerings enabling unparalleled partner upsell opportunities and customized marketing support
to drive partner growth
Shift the internet to encryption by defaulthellip move from todayrsquos meager 3 encryption to 100
Shifting to upsell modelAccelerate market share expansion for SSLTLS
certificates
Rapidly Expand Volume
Drive Double Digit Growth
Secure the Worldrsquos Traffic
19
Consumer Security
Digital Safety Platform
Protecting your information devices identity and over 50 million consumers every day
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Symantec Website Security
17
Symantec is the Leader
WEBSITE SECURITY
Differentiation
90 of Fortune 500 companies are secured by Symantec SSLTLS
Symantec issues 7 out of every 10 code signing certificates globally
90
Nortontrade Secured Seal is the most recognized trust mark on the Internet
80 of the 500 largest ecommerce sites in North America are secured by Symantec SSLTLS
96 of the worldrsquos 100 largest financial institutions are secured by Symantec SSLTLS
80
71096
Most Comprehensive Offerings and Solutions Orientation
Fastest Performance in Industry with Scale
World Class and Secure Service Availability
Best Root Ubiquity
Global Support
Symantec Website Security ENCRYPTION EVERYWHERE
18
WEBSITE SECURITY
Focus on our unique scale amp operational viability our breadth of offerings enabling unparalleled partner upsell opportunities and customized marketing support
to drive partner growth
Shift the internet to encryption by defaulthellip move from todayrsquos meager 3 encryption to 100
Shifting to upsell modelAccelerate market share expansion for SSLTLS
certificates
Rapidly Expand Volume
Drive Double Digit Growth
Secure the Worldrsquos Traffic
19
Consumer Security
Digital Safety Platform
Protecting your information devices identity and over 50 million consumers every day
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Symantec Website Security ENCRYPTION EVERYWHERE
18
WEBSITE SECURITY
Focus on our unique scale amp operational viability our breadth of offerings enabling unparalleled partner upsell opportunities and customized marketing support
to drive partner growth
Shift the internet to encryption by defaulthellip move from todayrsquos meager 3 encryption to 100
Shifting to upsell modelAccelerate market share expansion for SSLTLS
certificates
Rapidly Expand Volume
Drive Double Digit Growth
Secure the Worldrsquos Traffic
19
Consumer Security
Digital Safety Platform
Protecting your information devices identity and over 50 million consumers every day
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
19
Consumer Security
Digital Safety Platform
Protecting your information devices identity and over 50 million consumers every day
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Cybercrime is a Large and Growing Problem
20
689 million people globally
were victims of cybercrime
Every 2 seconds
someone is a victim of identity theft
Identity theft has been a top FTC complaint in the US for the last 15 years with complaints up 47 to a combined 27 of all consumer complaints to the
FTC between ID Theft and Imposter Scams
39 of Americans experienced cybercrime
in the past year
Total Reported Identities Exposed
new account fraud doubled in 2015
Source Symantec ISTR Javeline (2016) FTC (2015) ID Theft Center (2015)
429 Million
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Transforming Symantecrsquos Consumer Business
21
Consumer Digital Safety Platform Digital Safety Platform protecting your information devices and identity
Expands Consumer Market Opportunity
Combines the leading consumer security and identity protection providers
Together we will serve over 50 million consumers
Financially Attractive Combination
Combined consumer business expected to grow in low to mid single digits
Expected annual cost synergies of $30 million by the end of FY18 increasing to $80 million by the end of FY20
Optimal Use of Capital
$23 billion in enterprise value with an expected close during Q4 FY2017
$13 billion share repurchase authorization in place
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Our Journey in Consumer Security
22
Virus Computer Takeovers Protecting PC files and online activity from highly visible threats
Ransomware Phishing Scams and TrojansProtecting online activity and information across devices including mobile
Identity and fraud protectionProtecting personal information and identity across the device network and cloud
IoT and Connected HomeProtecting homes and family
Digital Safety Platform
Protecting all Consumer Devices Microsoft Android Mac and iOS
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Protects and Monitors Your Digital LifeAlerts You to Malicious Activity
Restores Your Identity When Compromised
23
bull Identity Protection
bull Identity Threat Notification
Digital Safety Platform
The First Comprehensive Digital Safety Platform
Protects Your Digital Life
Alerts You to Suspicious Activity
Restores Your Identity
bull Multi-Device Securitybull Microsoft Mac
Android and iOS
bull Parental controls
bull Consumer IoT
bull Private VPN
bull Backup
bull Credit Reports
bull Service Guarantee
Prevents detects and remediates malware across PCs laptops and mobile
Secure multi-device VPN
Protects consumer IoT devices
Identity protection from fraudulent activity
Monitors identity in dark web
Provides identity remediation services
LifeLock does not monitor all transactions at all businesses No one can prevent all identity theft
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
LifeLock is the Leading Provider of Identity Protection
24
Compelling Market Opportunity Business Model
bull 1 in 4 Americans have been the victims of ID theft3
bull 164 million records exposed by data breach in 2015bull Leading market share with 4x brand awareness of nearest competitor4
bull 44+ million members out of an estimated 78 million member US TAM
bull $650MM LTM revenue representing 16 YY Growth1
bull Recurring revenue model with 855 retention rate1
bull 44+ million members 400+ enterprise customers $1225 ARPU per month1
bull 64 NPS Score2
1 As of 9302016 2 Premium offering NPSreg Benchmarks 2015 3 Based on sample of 4402 respondents to monthly online consumer survey conducted by MSI International on behalf of LifeLock Jan-Dec 20154 A commissioned survey conducted in Oct-Dec 2015 by MSI International on behalf of LifeLock
+1 trillion data elements
Data repository
Patented analytics
ID NETWORKTM
Did you open a new credit card
Yes No
MEMBER
MONITOR ALERT RESTORE
3rd PARTY DATA
MEMBER DATA
NETWORK EFFECT
Near full visibility to every adult in the US
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
$5$10 $11 $11 $12
FY17 FY18 FY19 FY20 FY21
$10B Digital Safety Addressable Market
25
Digital Safety Addressable Market ($B)
7 CAGR
Source Company estimates Gartner McKinsey
Endpoint Security
bull Over 1 billion consumer desktops notebooks tablets and smartphones
bull Leading provider of Mac protection
Identity Protection bull Alerts and remediates compromised identities
Private VPN
bull Protects consumer data from being stolen on public WiFi
bull Allows consumer to anonymize behavior and keep location private
Connected Home Security
bull Billions of consumer connected IoT devices
EndpointSecurity
TAM
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Transaction Overview
26
Transaction Consideration $24share or $23 billion in enterprise value
Approval Process amp Expected Closing
Expected close date during Q4 FY2017
Subject to customary closing conditions and regulatory approvals
Expected Financial Impact
Reaffirming FY17 financial guidance FY18 $170-$180 non-GAAP EPS outlook
Accretive to FY19 non-GAAP EPS
Expected Financing
Combination of cash on balance sheet and $750 million of new debt
Share repurchase authorization increased to $13 billion
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Consumer Security Expected Financial Profile
27
Reiterating prior fiscal 2017 and fiscal 2018 EPS guidance
Neutral to FY18 Non-GAAP EPS and over [5 cents] accretive to FY19 Non-GAAP EPS Additional Upside Opportunities
Cross-sell identity protection into large Norton US customer base
Optimize retention of LifeLock customer base by adding cyber defense value
International expansion of LifeLock offering
Consumer SecurityRevenue Growth
Revenue growth accelerating to low to mid single digits
High recurring revenue
Maintains Strong Margin Profile
$30 million annual cost synergies by end of FY18 increasing to $80 million by end of FY20
Healthy operating margins of approximately 40
Meaningful leverage across operations and overhead
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
28
Symantec is Transforming Digital SafetyProtects Your Digital Life - Alerts You to Suspicious Activity ndash Restores Your Identity
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Significantly Enhanced Financial Model
29
Expect Fiscal 2018 EPS of $170 to $180
FY16 1Q17 2Q17
Consumer Security
Revenue $1670 $403 $405
YY (CC) (9) (8) (5)
Operating Margin 55 56 55
Enterprise Security
Non-GAAP Revenue $1930 $481 $610
YY (CC) (2) (1) 24
Non-GAAP Operating Margin 5 6 12
Total Revenue $3600 $884 $1015
YY (CC) 5 (4) 10
Non-GAAP Operating Margin 285 286 292
Note Financials presented are Non-GAAP
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Financial Policy
30
3 Expect to pay down debt over the medium term and maintain strong balance sheet
4 Maintain $030 annual dividend
1Board authorization for share repurchase program increased to $13 billion up to $500 million in additional repurchases before the end of FY17
2Timeline for prior $550 million in Symantec and Blue Coat net cost reduction initiatives and synergies remains unchanged
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Capital Structure and Financing
31
$billion
Cash cash equivalentsand ST investments(930)
$56
Term Loans amp Notes 555
Convertible debt 175
Net debt $17
Amounts in $MM except Coupon Maturity Principal Balance ($)
Revolver L+150 52021 0
Term Loan A-1 L+150 52019 1000
2017 Notes 275 62017 600
2020 Notes 420 92020 750
2021 Convertible Note (SLP) 250 42021 500
2022 Notes 395 62022 400
Term Loan A-2 L+150 82019 800
Term Loan A-3 L+150 82019 200
Term Loan A-5 L+175 82021 1800
2021 Convertible Note (SLPBain) 200 82021 1250
Total 7300
Debt Schedule
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
USE OF NON-GAAP FINANCIAL INFORMATION
Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products certain acquisition and integration costs discontinued operations 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 Companyrsquos 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 including constant currency information 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 Symantecrsquos operating results as well as when planning forecasting and analyzing future periods No reconciliation of the forecasted range for non-GAAP guidance is included in this presentation because it would be unreasonably burdensome to forecast the acquisition and other charges associated with the LifeLock acquisition that may impact the GAAP measure The impact which may be significant of purchase accounting on revenue non-cashcompensation expense and other non-cash charges are not yet known and subject to change and the variability of these charges could have a significant and unpredictable impact on Symantecrsquos future GAAP financial results
Copyright copy 2016 Symantec Corporation
32
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues
Copyright copy 2016 Symantec Corporation
33
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS (1)
Fiscal Year Ended April 1 2016 (2)
(Dollars in millions unaudited)
Non-GAAP pro forma net revenues
GAAP Adj (3) Non-GAAP
Symantec Enterprise Security net revenues $ 1930 $ - $ 1930 Blue Coat net revenues 598 157 755 Total pro forma combined Enterprise Security net revenues 2528 157 2685
Consumer Security net revenues 1670 - 1670 Total pro forma combined net revenues $ 4198 $ 157 $ 4355
Enterprise Security as of total pro forma combined net revenues 60 2 62
(1)For more information about the non-GAAP metrics in this presentation please see the Appendix to the Press Release that can be found on the
investor relations page of our website at httpwwwsymanteccominvest
(2) Blue Coats fiscal year end is within 93 days of Symantecs fiscal year end therefore Blue Coats net revenues from its fiscal year ended April 30 2016 is combined with Symantec net revenues from its fiscal year ended April 1 2016
(3) Adjustment for impact of purchase accounting on net revenues