01 ceo fad v40 final
Post on 15-Jul-2015
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Forward Looking Statements
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This presentation contains statements regarding our projected financial and business results, which may be considered forward-looking within the meaning of the U.S. federal securities laws, including statements regarding our financial guidance and targets (as acombined company and by business segment); our proposed separation into two publicly traded companies; the projected marketgrowth rates and margin expansion opportunities for the security business and the information management business; statementsregarding our competitive advantages in security and information management; statements with respect to the proposed timing ofthe separation; and statements with respect to proposed capital allocation strategies for both Symantec and Veritas. Thesestatements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels ofactivity, performance or achievements to differ materially from results expressed or implied in this presentation. Such risk factorsinclude those related to: risks related to the separation of the company into the security business and the information managementbusiness; general economic conditions; maintaining customer and partner relationships; the anticipated growth of certain marketsegments, particularly with regard to security and information management; the competitive environment in the industries in whichwe operate; changes to operating systems and product strategy by vendors of operating systems; fluctuations in currency exchangerates; the timing and market acceptance of new product releases and upgrades; the successful development of new products; andthe degree to which these products and businesses gain market acceptance. Actual results may differ materially from thosecontained in the forward-looking statements in this presentation. We assume no obligation, and do not intend, to update theseforward-looking statements as a result of future events or developments. Additional information concerning these and other risksfactors is contained in the Risk Factors sections of our Form 10-K for the year ended March 28, 2014 and our Form 10-Q for thequarter ended January 2, 2015.
Any information regarding pre-release of Symantec offerings, future updates or other planned modifications is subject to ongoingevaluation by Symantec and therefore subject to change. This information is provided without warranty of any kind, express orimplied. Customers who purchase Symantec offerings should make their purchase decision based upon features that are currentlyavailable.
We assume no obligation to update any forward‐looking information contained in this presentation.
Use of GAAP and Non-GAAP Financial Information
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Our results of operations have undergone significant change due to a series of acquisitions, the impact of stock-based compensation,impairment charges and other corporate events. To help our readers understand our past financial performance and our futureresults, 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 maydiffer from the methods used by other companies. Our non-GAAP results are not meant to be considered in isolation or as asubstitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statementsprepared in accordance with GAAP.
Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate ourbusiness and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning forand forecasting future periods. Investors are encouraged to review the reconciliation of our non-GAAP financial measures to thecomparable GAAP results, which can be found, along with other financial information, on the investor relations’ page of our websiteat www.symantec.com/invest.
Reconciliations for our financial results and guidance can be found on Symantec’s investor relations website.
Definition of Terms Used Throughout Presentation
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• We are reiterating our 4Q and FY15 guidance today based on a FX rate of €/$1.16. The weighted average FX for 4Q15 was €/$1.12
& the end of period FX was €/$1.10 vs €/$1.16 guide.
• Growth rates and operating margin expansion for FY15 are expressed in constant currency and are based on 3 quarters of actuals
and the midpoint of 4Q15 guidance.
• Growth rates and operating margin expansion for FY16 are expressed in constant currency at an exchange rate of €/$1.13 and
excludes the effect of the 14th week in the June 2014 period (i.e., revenue of $113M and operating expense of $51M have been
removed).
• Legal Separation of our information management business is expected on January 2, 2016 (i.e., the first day of 4Q16) with trading
to commence on January 4, 2016.
• Pre-Separation – Veritas refers to the Information Management segment
– Norton refers to the Consumer Security segment
– Symantec Security refers the Enterprise Security & Consumer Security segments
– Symantec refers to the combined company until separation
• Post-Separation – Veritas refers to the Information Management business
– Symantec Security refers to the Enterprise Security & Consumer Security businesses
– Symantec is a pro forma combined view of all three businesses
– The information management business will be presented as discontinued operations in Symantec’s financial statements commencing in 4Q16
2015 FAD Agenda
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Speaker Topic
Michael Brown Unlocking Value through Focus & Growth
John Gannon & Matt Cain Veritas Strategy & Products w/Q&A
10:25 am ET – 10 minute Break
Fran Rosch Consumer Security Strategy w/Q&A
Jeff Scheel, Balaji Yelamanchili & Amit Mital Enterprise Security: Markets, Strategy & Products w/Q&A
12:35 pm ET – 15 minute Break
Thomas Seifert Unlocking Our Growth Opportunity
Michael Brown & Thomas Seifert Final Q&A
Michael Brown Closing Remarks
2:00 pm ET – Reception & Demos
Agenda
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1 Focus Drove FY15 Progress
2 Market Dynamics
3 Veritas and Symantec Security Strategies
4 Leveraging Our Scale to Drive Innovation
5 Accelerate and Unlock Value in FY16-17
Focus Drove FY15 Priorities
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Talent New Product Delivered Strategy & Separation
Growth Margin, Cash Flow & Operational Focus
Optimize our businesses based on
lifecycle and growth
potential
Reduce costs and improve efficiencies across company
Return significant cash to shareholders
Strengthen leadership team
Prioritize investments for growth in our enterprise businesses
In review as year began
Talent Products Delivered Strategy & Separation
Focus Drove FY15 Progress
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Growth
Strengthened the leadership team with
new executives
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Margin, Cash Flow & Operational Focus
Enterprise security products delivered
41Veritas products
delivered
17Launched Norton
Security subscription
2 clear strategies => separation
Increase focus, reduce complexity and enhance
strategic flexibility
Implied billings growth in FY151
3%
Deferred revenue growing again (after 6 quarters)
Veritas revenue accelerating from 0% to 5%3
5%
30% 53%
Margin expansion
Norton2Total company2
~$900M
Return to shareholders
Manage our business as a portfolio
>$150M
8 Revenue and efficiency initiatives drove
1. Adjusted for FX and extra week in the June 2014 quarter; growth based on midpoint of FY15 guidance.2. As of 3Q15.3. Growth rates at constant currency; year over year growth in 1Q15 and 3Q15.
Market Dynamics Driven by Different Trends & Customer Needs
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Large and Growing Markets Driven by Evolving Threats
Security
40%increase in enterprise targeted attacks
23%Increase in breaches
1MNew threats created per day
Complexity of threats
Overwhelmed with volume of alerts
CISOCISOs are primary buyers
Need for actionable, intelligentsecurity solutions
Shorter selling cycles
Large and Growing Markets Driven by Exponential Information Growth
Information Management
CIOCIOs are primary buyers
Longer selling cycles
Exponential data growth driven by mobile, virtualization & hybrid clouds
Complexity in managing information; increased information fragmentation
Customer focus on reliability & lower TCO
Veritas | OUR UNIQUE ASSETS
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SCALEHETEROGENEITYCUSTOMERS
UNMATCHED BACKUP
MORE DATA ABOUT DATA
APPLICATION-AWARENESS
86% of Fortune 500 choose Veritas solutions
Unparalleled breadth of multiple vendors’ platforms and clouds
Largest, most complex companies feeding the Fabric
Unique platform of
#1 backup SW and leading appliance
Rich repository of detailed metadata and insight
IT service continuity beyond just infrastructure
86%
Veritas | PRODUCT STRATEGY
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• Expand across backup, storage management, business continuity, archiving and eDiscovery.
• Deliver capabilities via software, integrated appliances or cloud.
Make every byte of data actionable by ensuring availability and revealing insights
Expand best-in-class Foundational portfolio
Our Competitive Advantage: Heterogeneity & Scale
Enable next-generationInsight solutions
Deliver next-generation Availability solutions
• Focused on managing and moving mission-critical data in a hybrid cloud world.
• Deliver through a coordinated orchestration architecture.
• Provide visibility, action, and automated control across an organization’s information landscape.
• Deliver through an intelligent information fabric that integrates our portfolio and third-party ecosystems.
Symantec Security | OUR UNIQUE ASSETS
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42M attack sensors in
157 countries
175M endpoints
3.7Trows of telemetry
100 Billion more/month
500+threat & response team
9global threat response centers
30% of world’s enterprise email traffic scanned/day
1.8 Billion web requests
63M users & 4M SMBs
6.8M mobile devices protected
Symantec Security Strategy Leverages Unique Assets
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• Consumer
– Norton Security
• Enterprise
– Symantec Threat Protection
– Symantec Information Protection
We see more, analyze more, and therefore protectfrom more cyber threats than any other company in the world
Best-in-ClassSecurity Products
Our Competitive Advantage: Global Scale & Real-Time Visibility
Cyber Security Services
Unified Security Analytics Platform
• Security Big Data Analytics
• Unparalleled scope of telemetry (Symantec and 3rd Party)
• Unrivalled visibility into real-time global threats
• Powers Symantec and 3rd party security analytics applications
• Full-suite of services
– Monitoring services
– Incident response services
– Threat intelligence services
• Supported by 500+ world-class cyber security experts and9 global threat centers
Drivers to Accelerate Growth & Unlock Value for FY16-17
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Security
Increase in NEW security offerings in FY16 3 new ATP offerings
2 new Cyber Security services
2 new Security Analytics applications
Norton subscription traction
CISO
40% increase for enterprise security quota carrying reps;
1,750 dedicated security sales professionals
Shifting & increasing R&D to growth markets
10% CAGR in addressable security market
Information Management
CIO
20% increase for quota carrying reps;
2,100+ dedicated sales professionals
7% CAGR in addressable market
14 foundational products; 3 new offerings
Shifting & increasing R&D to growth markets
Deliver intelligent information fabric layer
Unlocking Value through Focus and Growth
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Focus drove our expanded operating margin & investments for growth in FY15
Global scale & real-time visibilitydrives enterprise security growth & mitigates Norton decline
Leverage our scale & unique assets to drive differentiated offerings in FY16-17
Differentiated approachof Availability & Insightdrives growth
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