2015 Annual Stockholder Meeting Dan Schulman, Chairman of the Board of Directors

Transcription

1 2015 Annual Stockholder Meeting Dan Schulman, Chairman of the Board of Directors November 3, 2015 Board of Directors Daniel H. Schulman Chairman of the Board, Symantec President and Chief Executive Officer, Paypal Michael A. Brown President and Chief Executive Officer Frank E. Dangeard Managing Partner, Harcourt Geraldine B. Laybourne Chairman of the Board, Kandu David L. Mahoney Former Co-CEO of McKesson HBOC, Inc. and CEO of imckesson LLC Robert S. Miller President and CEO, International Automotive Components Group V. Paul Unruh Former Chief Financial Officer and Vice Chairman, Bechtel Group Anita M. Sands Former Group MD and Head of Change Leadership, UBS Financial Services Suzanne Vautrinot President, Kilovolt Consulting 2 1

2 Management Team Michael A. Brown President and Chief Executive Officer Thomas Seifert Executive Vice President, Chief Financial Officer Scott Taylor Executive Vice President, General Counsel and Secretary Dan Rogers Senior Vice President, Chief Marketing Officer Jeff Scheel Senior Vice President, Corporate Development, Alliances and Strategy Amy Cappellanti-Wolf Senior Vice President, Chief Human Resources Officer Roxane Divol Senior Vice President, Website Security Fran Rosch Executive Vice President, Norton Business Unit Balaji Yelamanchili Executive Vice President and GM, Enterprise Security John Gannon Executive Vice President, Information Management 3 Formal Meeting Scott Taylor, General Counsel and Secretary 4 2

3 Proposals Election of the director nominees Ratification of appointment of independent registered public accounting firm Advisory vote to approve executive compensation 4 Stockholder proposal regarding the formation of an International Policy Committee 5 Announce Voting Results 6 3

4 Adjournment of Formal Meeting Dan Schulman, Chairman of the Board of Directors 7 Forward Looking Statements This presentation contains statements regarding our strategic direction and our projected financial and business results, which may be considered forwardlooking within the meaning of the U.S. federal securities laws, including statements regarding our drivers of future growth and value; the pending sale of our information management business to The Carlyle Group; the expected benefits to be realized as a result of the separation of our information management business; the projected market growth rates and margin expansion opportunities for the security business and the information management business; statements regarding our competitive advantage in security and information management; and statements with respect to the proposed timing of the closing of the sale of the information management business to Carlyle; and statements regarding our capital allocation strategy and plans. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied in this press release. Such risk factors include those related to: risks related to the separation of the company into the security business and the information management business, general economic conditions; maintaining customer and partner relationships; the anticipated growth of certain market segments, particularly with regard to security and information management; the competitive environment in the software industry; changes to operating systems and product strategy by vendors of operating systems; fluctuations in currency exchange rates; the timing and market acceptance of new product releases and upgrades; the successful development of new products; and the degree to which these products and businesses gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this presentation. We assume no obligation, and do not intend, to update these forward-looking statements as a result of future events or developments. Additional information concerning these and other risks factors is contained in the Risk Factors sections of our Form 10-K for the year ended April 3, 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. 8 4

5 Use of GAAP and Non-GAAP Financial Information Our results of operations have undergone significant change due to the impact of litigation accruals, stock-based compensation, restructuring, transition and separation matters, charges related to the amortization of intangible assets, and certain other income and expense items that management considers unrelated to the Company s core operations. To help our readers understand our past financial performance and our future results, we supplement the financial results that we provide in accordance with generally accepted accounting principles, or GAAP, with non-gaap financial measures. The method we use to produce non-gaap results is not computed according to GAAP and may differ from the methods used by other companies. Non-GAAP financial measures are supplemental, should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management team uses these non-gaap financial measures in assessing the Company s operating results, as well as when planning, forecasting and analyzing future periods. Investors are encouraged to review the reconciliation of our non-gaap financial measures to the comparable GAAP results, which is attached to our quarterly earnings release and which can be found, along with other financial information, on the investor relations page of our website at: 9 Unified Security Strategy & Veritas Sale Michael Brown, President and Chief Executive Officer 10 5

6 FY15 Highlights Returning to Growth Implied Billings 1 & Def. Rev Growth (in CC) Operating Margin 1 Achieved our Profitability Targets Executed on Operational Initiatives Implied Billings Growth Deferred Revenue Growth -6% -8% 4% 1% 25% 27% 27% Hit 30% target in 3Q15 Growth and efficiency initiatives delivered $150M+ in incremental operating profit FY14 FY15 FY13 FY14 FY15 1 Non-GAAP financial measure. See for a reconciliation to the applicable GAAP financial measure 11 Announced Plan to Separate the IM Business in October 2014 Security World s largest civilian cyberintelligence threat network #1 in Backup and Recovery Focus and strategic flexibility to address market dynamics driven by different trends and customer needs Reduce operational complexity Enable each business to unlock its full growth potential and win in its respective market 12 6

7 Symantec Announces the Sale of Veritas to The Carlyle Group Transaction Overview $8 billion all cash transaction, with approximately net proceeds of $6.3 billion Attractive and certain value generation for Symantec shareholders Allows Symantec to grow its security business and increase its lead as the world s largest cybersecurity company Provides Symantec with capital to continue investments in the rapidly growing market for security products and services, and to support its capital return initiatives through the purchase of common stock and its dividend Expected closing by end of Q3 FY16 (subject to certain closing conditions and regulatory approvals) 13 Continued Commitment to a Balanced Capital Allocation Capital Allocation Strategy In August, Board authorized increase of stock buyback program to $2.6B, with $2B executed over the 18 months post closing Retaining $0.60 / share dividend per year, significantly increasing Symantec s dividend payout ratio post separation Expect to return ~120% of after-tax domestic cash sale proceeds through dividends and stock buybacks over the 18 months post closing Committed to strong balance sheet and investment grade rating Continue to evaluate alternatives for cash usage ranging from M&A to returning additional cash to shareholders 14 7

8 Symantec: World s Largest Security Business ENTERPRISE SECURITY FY15 Revenue 1 : $2.1 billion FY15 Operating Margin 1 : 14% Accelerating Growth and Margin Expansion CONSUMER SECURITY FY15 Revenue 1 : $1.9 billion FY15 Operating Margin 1 : 53% Improving Revenue Outlook with Outstanding Margin Symantec Security Revenue 1 : $4.0 billion Symantec Security Operating Margin 1 : 33% 1 FY2015 Non-GAAP metrics 15 Unified Security Strategy Users Data Apps Cyber Security Services Monitoring, Incident Response, Simulation, Adversary Threat Intelligence Threat Protection Information Protection ENDPOINTS DATA CENTER GATEWAYS DATA IDENTITIES Cloud Advanced Threat Protection Across All Control Points Built-In Forensics and Remediation Within Each Control Point Integrated Protection of Server Workloads: On-Premise, Virtual, and Cloud Cloud-based Management for Endpoints, Datacenter, and Gateways Integrated Data and Identity Protection Cloud Security Broker for Cloud and Mobile Apps User and Behavioral Analytics Cloud-based Encryption and Key Management Gateways Endpoints Unified Security Analytics Platform Data Center Log and Telemetry Collection Integrated Threat and Behavioral Analysis Unified Incident Management and Customer Hub Inline Integrations for Closed-loop Actionable Intelligence Regional and Industry Benchmarking 16 8

9 Drivers to Accelerate Growth & Unlock Value for FY % CAGR in addressable security market Norton subscription traction Shifting & increasing R&D to growth markets CISO 1,750 dedicated security sales professionals Increase in NEW security offerings in FY16 3 new ATP offerings 2 new Cyber Security services 2 new Security Analytics applications 40% increase for enterprise security quota carrying reps 17 Questions & Answers 18 9

10 Contact Investor Relations Jonathan Doros Vice President (650)