01 ceo fad v40 final

17
Symantec’s 2015 Financial Analyst Day April 17, 2015

Transcript of 01 ceo fad v40 final

Symantec’s 2015 Financial Analyst Day

April 17, 2015

Welcome

Helyn Corcos

Vice President, Investor Relations

Forward Looking Statements

3

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

4

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

5

• 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

6

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

Unlocking Value Through Focus and Growth

Michael Brown

President and Chief Executive Officer

Agenda

8

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

9

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

10

Growth

Strengthened the leadership team with

new executives

5

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

11

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

12

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

13

• 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

14

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

15

• 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

16

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

17

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