Juniper in The first half of 2018...factors listed in Juniper Networks’ most recent report on Form...

© 2018 Juniper Networks

JUNIPER NETWORKSINVESTOR RELATIONS

November 2018

© 2018 Juniper Networks © 2018 Juniper Networks 2

Forward Looking Statements

Statements in this presentation concerning the market landscape and Juniper Networks' business outlook; economic and market outlook; future financial and operating results; the expected impact of architectural transitions and timing of deployments with large customers; execution of our capital return program; expectations with respect to market trends; our future strategy; strength of certain customer segments; ability to expand business opportunities, including in hyperscale-switching and 5G buildouts; expectations with respect to growth; introduction of future products; focus on cost improvements; the strength of our solution portfolio and strategy; our ability to improve profitability and make necessary investments; and overall future prospects are forward-looking statements within the meaning of the Private Securities Litigation Reform Act that involve a number of uncertainties and risks. Actual results or events could differ materially from those anticipated in those forward-looking statements as a result of several factors, including: general economic and political conditions globally or regionally; business and economic conditions in the networking industry; changes in overall technology spending by our customers; the network capacity requirements of our customers and, in particular, cloud and communication service providers; contractual terms that may result in the deferral of revenue; the timing of orders and their fulfillment; manufacturing and supply chain constraints, changes or disruptions; availability of product components; delays in scheduled product availability; adoption of regulations or standards affecting Juniper Networks products, services or the networking industry; the impact of potential import tariffs; and other factors listed in Juniper Networks’ most recent report on Form 10-Q and 10-K filed with the Securities and Exchange Commission. All statements made in this presentation are made only as of the date of this presentation. Juniper Networks undertakes no obligation to update the information in this presentation in the event facts or circumstances subsequently change.

Use of Non-GAAP Financial Measures

This presentation references non-GAAP financial measures, including (without limitation) those related to diluted earnings per share. For important commentary on why Juniper Networks considers non-GAAP information a useful view of the company’s financial results and for reconciliations of these measures to GAAP financial measures, please refer to the “Investor Relations” section of our website at http://investor.juniper.net. With respect to future financial guidance provided on a non-GAAP basis, we exclude estimates for amortization of intangible assets, share-based compensation expenses, acquisition-related charges, restructuring benefits or charges, impairment charges, litigation settlement benefits or charges and resolution charges, supplier component remediation charges and recoveries, gain or loss on equity investments, retroactive impact of certain tax settlements, significant effects of tax legislation and judicial or administrative interpretation of tax regulations, including the impact of income tax reform, non-recurring income tax adjustments, valuation allowance on deferred tax assets, and the income tax effect of non-GAAP exclusions, and do not include the impact of any future acquisitions, divestitures, or joint ventures that may occur in the period. Juniper is unable to provide a reconciliation of non-GAAP guidance measures to corresponding GAAP measures on a forward-looking basis without unreasonable effort due to the overall high variability and low visibility of most of the foregoing items that have been excluded. The items that are being excluded are difficult to predict and a reconciliation could result in disclosure that would be imprecise or potentially misleading. Material changes to any one of these items could have a significant effect on our guidance and future GAAP results.

© 2018 Juniper Networks © 2018 Juniper Networks

THE INDUSTRY IS CHANGING -- FAST

3

Fighting Cybercrime and Losing

$8Twill be spent on cybercrime in

2017-2022

Mobile-first Architectures will Dominate

60xis how much faster 5G is estimated to be over 4G

75Bconnected devices by 2025

IoT Bringing Opportunities and Issues A.I. has Emerged

72%of business leaders termed A.I.

as a business advantage

Digitization

163of data created WW by 2025

4.8clouds used to run

applications, on average

Source: Rightscale, IDC, Verizon/Ericsson tests, IHS Markit, PwC, Juniper Research

ZB

Move to Cloud


JUNIPER IS LEADING MARKET TRANSFORMATION

4

Hardware defined Software/cloud defined

Perimeter Pervasive

Manual enforcement Automated

Configuration driven Business driven

Closed ecosystem Open framework


LARGE AND GROWING OPPORTUNITY

5

*Source: Dell’Oro Group, IHS Markit, Juniper analysis - TAM is 2018E; CAGR is 2018-2021

LARGE OPPORTUNITY* TO TAKE SHARE

SECURITY~$8B

6% CAGR

JNPR: ~4% share

~$48B TAM

ROUTING~$12B

3% CAGR

JNPR: ~16% share

SWITCHING~$27B

5% CAGR

JNPR: ~4% share

STRONG Q3 2018 RESULTS

ENTERPRISE

+15% Y/Y

SWITCHING

+4% Y/Y

NON-GAAP EPS

$0.10 above mid-point of guidance

SECURITY

+8% Y/Y

STRONG APPROACH TO CUSTOMER VERTICALS

CLOUD

• Own the MX>PTX transition

• Break into hyperscale data center switching

SERVICE PROVIDER

• Telco Cloud enablement

• 5G/Metro buildouts

ENTERPRISE

• Data center & secure and automated multicloud

• Security momentum


FOCUSED ON DRIVING TRANSITION TO CLOUD

6


POSITIONED TO WIN IN 2018 AND BEYOND

7

SECURITYCORE/EDGE

METROCLOUD ENABLED

ENTERPRISESDWAN

CLOUD/DATA CENTER

MX, PTX, QFX, EX, ACX, NFX, SRX families

Rich Overlay and Underlay Software Capabilities

Junos OS with Quality, Contrail Orchestration, AppFormix Analytics

Strong, competitive platforms


THE JUNIPER ADVANTAGE – JUNOS OS

Experience

Analytics

Programmability

Disaggregation

• Seamless integration with a wide range of open-source automation frameworks

• A simple extension toolkit for control, management, and data plane programmability

• Easy integration with third party automation frameworks for high degree network customization

• Hardware accelerated real-time telemetry support• Health monitoring correlation for expedited root cause

analysis • Model-driven OpenConfig telemetry for big data analysis

• Decoupled software and hardware architectures• X86 standardized for simple application integration

with virtualization technologies like KVM and containers

• Supports third-party VM, container, or native Linux binary

• A single uniform experience across routing, switching and security

• Feature continuity during hardware updates• Fuse multiple disparate network elements into a single,

logical unit• Slice multiple concurrent network functions on a single

network element for improved operational efficiency

100% Pass Rating by Ivan Pepelnjak

8


Performance that Scales with New Services Delivery

Platform Versatility Supporting Multiple Use Cases Across Networking

Software Disaggregation that Promotes the Freedom to Innovate

Award-Winning Juniper Service and Support

Engineering World-Class Economics and Investment Protection

Infinite Programmability that Anticipates Future Innovations

THE JUNIPER ADVANTAGE – SERVICE PROVIDER ROUTING

Penta Silicon5th Generation

MX204MX10003*

2.4T*144 x 10GbE24 x 100 GbE

NEBS LEVEL3

MX10008

19.2T768 x 10GbE

192 x 100GbE

NEBS DC

MX10016

38.4T768 x 10GbE384 x100GbE

NEBS DC

MX2KMX2020*

40T*960 x 10GbE

400 x 100 GbE

NEBS LEVEL 3

MX240 -MX960*

16.5T*660 x 10GbE

165 x 100 GbE

NEBS LEVEL 3

Trio Silicon4th Generation

*The performance number are represented by the model with the asterisks 9


IP Performance that Stifles Growing Traffic Deluge

Engineering World-Class Cost Per Bit Economics for 400GbE and Beyond

Never be compromised by Visibility, Reliability, Availability or Security

Award-Winning Juniper Service and Support

THE JUNIPER ADVANTAGE – CLOUD ROUTING

PTX1000

2.88T288 x 10GbE24 x 100 GbE

NEBS LEVEL3

PTX10008

24T1152 x 10GbE240 x 100GbE

NEBS DC

PTX10016

48T2304 x 10GbE480 x 100GbE

NEBS DC

PTX3000-PTX5000*

24T*1536 x 10GbE240 x 100 GbE

NEBS LEVEL 3

PTX10001-PTX10003*

16T*165 x 100 GbE36 x 400GbE

NEBS LEVEL 3

Express Plus Silicon

*The performance number are represented by the model with the asterisks 10


THE JUNIPER ADVANTAGE – CLOUD CLASS SWITCHING

11

EX Series campus and branch switching

Robust Portfolio

QFX Series data center switching

Choice of Chipsets In Data Center• Merchant Silicon – QFX 5K• Juniper Q5 – QFX 10K

Support for Diverse Architectures

• Juniper Sky Enterprise for cloud-based management

• Contrail Enterprise Multicloud for simplified multicloud orchestration and analytics

Centralized Management and

Control


AutomatedAdaptiveSimplified

THE JUNIPER ADVANTAGE – UNIFIED SECURITY EVERYWHERE

Advanced Threat Defense

Multicloud

Network Devices

Workloads

Consistent enforcement

Threat Intelligence

Detection Dynamic policy actions

Users, Apps, Devices, Sites

Network Access Endpoint

Security posture

Visibility & Management

APIs

Unifies the entire network and

ecosystem

• Consistent defense across diverse

environments

• Automated adaptive policy

• Centralized visibility and management

• Leverages the scale and agility of

cloud

• Open and interoperable

Detection


JUNIPER NETWORKS NAMED A LEADER BY GARTNER

13

Gartner, Inc., Magic Quadrant for Data Center Networking, Andrew Lerner, Joe Skorupa. 11 July 2018.

This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Juniper Networks.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technologyusers to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties,expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

See the Report

“Juniper is confident in the execution and strategy that we believe is being recognized by various analysts.”

-Rami Rahim, CEO, Juniper Networks

We believe Juniper is recognized for:

• Having a deep portfolio of hardware and software solutions

• Leading with automated, open and standards-based approaches

Magic Quadrant for Data Center Networking

https://www.gartner.com/doc/reprints?id=1-56H26OT&ct=180711&st=sb


A LEADER IN THE FORRESTER WAVE

14

Hardware Platforms for Software-Defined Networking, Q1 2018Read the Report

"Overlay technology can go only so far. Ultimately, SDN must manipulate the network’s physical infrastructure, especially because many of today’s enterprise data center servers remain on bare metal and are therefore unable to use SDN overlays like VMware’s NSX as the only SDN approach to data centers."

“Customers that want to automate the entire network with a consistent OS, from the data center to the business edge, should look to Juniper Networks.”

The Forrester Wave™: Hardware Platforms For Software-Defined Networking, Q1 2018

The Forrester WaveTM is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.

https://reprints.forrester.com/#/assets/2/327/RES136622/reports


PRODUCT RELIABILITY

#1

SERVICE SUPPORT

#1

SECURITY

#1

TECHNOLOGY INNOVATION

#1

PRODUCT ROADMAP

#1PRICE

PERFORMANCE

#1

Top Ranked

SP Vendor

Source: 2018 IHS Market Report

15


STRONG PARTNERSHIPS

16

Strategic Alliance Partners

Technology Alliance Partners

Complete end-to-end solution to accelerate 5G transformation

New global partnership agreement for wired and wireless

Simplified and more secure path to multicloud

Latest Partner News

Improved network automation and security


MULTIPLE NEW PRODUCTS COMING ACROSS MARKETS

• WAN Services• New MX Series 5G Universal Routing platform

• Universal Chassis and line cards upgrade

• Leverages new Penta Silicon

• IP Transport• New 3-RU PTX10003 Packet Transport Router

• 400GbE capable system for wide area use cases

• Data Center• New QFX10003 data center switch

• New QFX5220 data center switch

• 400GbE capable data center systems

17

• Orchestration Software• Contrail Enterprise Multicloud software

• Contrail Edge Cloud

• Security• High-end SRX 5000 firewall enhancement

• Significant performance gain vs. current platforms

• Migration offer for current customers


MX5G EXTENDS ROUTING LEADERSHIP…

18

Juniper Penta Silicon Powering the MX Series 5G Universal Routing Platform

50% More Power Efficient than Gen 4/Line card1

Infinite Programmability4Built-In Encryption5

2 300% More Performance than Gen 4/Line card

3 400GbE Support


JUNIPER NETWORKS LEADS 400GbE TRANSITION ACROSS CLOUD/CARRIER ROUTING AND DATA CENTER SWITCHING

IP Transport

• PTX Series: The PTX10003 provides high

density 100GbE and 400GbE WAN for next-

generation scale-out backbone, peering and

data center interconnect applications

supporting the industry’s first packet transport

router to accommodate universal multirate

QSFP-DD interface for seamless 100GbE to

400GbE upgrades.

• Customer Benefits: Native link-level encryption

preventing unlawful intercept at 400GbE.

• ~65% more efficiency per bit than previous

generation.

Data Center

• QFX series: The QFX10003 & QFX5220 data

center switches with 400GbE technology

enables the next-generation of IP Fabric with

investment protection as customers increase

the capacity of their data centers to meet

emerging high-performance applications.

• Customer Benefits: Seamless integration with

Contrail Enterprise Multicloud to provide

consistent policies and operations across your

entire network and manage your 400GbE

hyperscale IP fabric resource as a single,

cohesive infrastructure.

WAN Services

• MX Series 5th Generation: Industry’s only

platform to deliver near-infinite

programmability, efficient 400GbE, and service

versatility for next generation secure service

creation across 5G and IoT, all at

unprecedented scale.

• Customer Benefits: Native IPsec encryption

that scales for all business service types.

• 2.8 times more efficiency per bit than previous

generation.

19


CONTRAIL ENTERPRISE MULTICLOUD – HYPERSCALEINFRASTRUCTURE FOR EVERY ENTERPRISE

20

One platform for policy and control

Any Cloud Any Workload Any Deployment

More Open, More CompleteOpen alternative that leapfrogs competitors

Contrail Enterprise Multicloud

Private clouds and public clouds

Greenfield or brownfield, single or

multivendor

Bare metal servers, public cloud instances, virtual machines,

containers and physical networking devices


Operator

Username

Password

Contrail Command Contrail Command Contrail Command

AWS VPC - 1

GCP VPC - 2

Shifting multi-location complexity into one interface.

Multicloud Architecture

Build Fabric

Provide Hybrid Connectivity

Build PODs

Apply Netw / Sec. Policies

Manage User Conn. & Policies

Monitor / Troubleshoot

Contrail Command

…

Contrail Security

OpenShift

Kubernetes

VMware

OpenStack

CONTRAIL ENTERPRISE MULTICLOUD – SINGLE POINT OF CONTROL FOR MULTIVENDOR MULTICLOUD ENVIRONMENTS


Contrail vRouter w/ L4 Security

cSRX/vSRX L7 Security

AppFormix Analytics Agent

Kubelet, CNI PluginCentralOffice

HubSite

BaseStation

COTS HW

COTS HW

• Contrail Controller• OpenStack Controller• Kubernetes Master

Distributed, SecureSDN Data Plane

DistributedEdges >1,000s

CentralizedManagement & Orchestration

• High function, secure distributed edge in small footprint

• Integrated orchestration, service chaining, security

• Zero-touch, high-availability in multi-tenant environment

• Analytics agent for full visibility

KVM, Nova-agent

CONTRAIL EDGE CLOUD

First production-grade solution that can extend a full suite of orchestration, automation, security, and analytics to deploy dynamic services for 4G, 5G, IoT, Residential, and Enterprise in a cost and resource efficient manner

22


SECURITY PORTFOLIO REFRESH COMPLETE IN Q3 2018

Branch Campus Private Cloud/Multicloud Data Center/Service Provider

SRX5800SRX5600SRX300 SRX1500SRX500 SRX4100 SRX4200 SRX5400

1RU5Gbps

1RU20Gbps

1RU40Gbps

5RU480Gbps

8RU960Gbps

2RU5.5Gbps

vSRX

4Gbps (2 vCPU)

25Gbps (16 vCPU)

Security Director w/Policy Enforcer

16RU2Tbps

Application SecuritySSL Inspection

Intrusion PreventionUser Firewall

UTM

Juniper Sky ATPSecure Analytics

Management, Visibility, Automation

SIEM Advanced Threat Prevention Next-Gen Services

cSRX*

Beta*

1RU80Gbps

SRX4600

ATP Appliance

Advanced Security Acceleration (SPC3)

Q4’16 Q4’17

Q3 18

Q4 17Q4 16 – Ongoing

Q2 16

Ongoing

Q2’16

OngoingOngoing

Ongoing

Q3’15

23


FINANCIALS

24


QUARTERLY TRENDED RESULTS

$1,285

$1,386

$1,221

$1,309

$1,258$1,239

$1,083

$1,204$1,180

$0.58

$0.66

$0.46

$0.57

$0.55$0.53

$0.28

$0.48

$0.54

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$950

$1,000

$1,050

$1,100

$1,150

$1,200

$1,250

$1,300

$1,350

$1,400

Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18

Revenue Non-GAAP EPS

25

Non-GAAP EPSRevenue ($M)


Q3’18 REVENUE DETAIL

26

42%

33%

19%

6%

55%

28%

17%

46%

33%

21%

PRODUCT & SERVICE

GEOGRAPHY VERTICAL

-28% Y/Y-11% Q/Q

+15% Y/Y-4% Q/Q

-6% Y/Y+4% Q/Q

+10% Y/Y+7% Q/Q-1% Y/Y

+2% Q/Q

+4% Y/Y-13% Q/Q

+8% Y/Y-3% Q/Q

-12% Y/Y-5% Q/Q

-15% Y/Y+1% Q/Q

-10% Y/Y-6% Q/Q

Cloud Service Provider

Enterprise

Americas

EMEA

APAC

Security

Routing

Service

Switching


SUMMARY OF B/S, CASH FLOW, AND CAPITAL METRICS

27

* Full-year Operating Cash Flow has not been recast to conform to the current year upon the adoption of the new accounting pronouncement requiring classification of restricted cashto be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts on the statement of cash flows.


YEARLY TRENDED RESULTS

$4,627$4,858 $4,990 $5,027

$1.45

$2.03

$2.09$2.11

$0.10

$0.60

$1.10

$1.60

$2.10

$2.60

$950

$1,450

$1,950

$2,450

$2,950

$3,450

$3,950

$4,450

$4,950

$5,450

FY 14 FY 15 FY 16 FY 17

Revenue Non-GAAP EPS

28

Non-GAAP EPSRevenue ($M)


STRONG CASH FLOW AND BALANCE SHEET

$3,105 $3,192

$3,657

$4,021

$950

$1,450

$1,950

$2,450

$2,950

$3,450

$3,950

$4,450

FY 14 FY 15 FY 16 FY 17

Cash, cash equivalents and investments

29

($M)

$570$690

$892$1,109

$193

$210

$215

$151

$763

$900

$1,107

$1,260

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

FY 14 FY 15 FY 16 FY 17

Free Cash Flow Capex Cash from Ops.

($M)

* These amounts have not been recast to conform to the current year upon the adoption of the new accounting pronouncement requiring classification of restricted cash to be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts on the statement of cash flows.

*


APPENDIX – GAAP TO NON-GAAP RECONCILIATION

30

(In millions, except per share amounts)(Unaudited)


(In millions, except per share amounts)(Unaudited)



(In millions)(Unaudited)


* These amounts have not been recast to conform to the current year upon the adoption of the new accounting pronouncement requiring classification of restricted cash to be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts on the statement of cash flows.


THANK YOUContacts:

Investor Relations – Jess Lubert

[email protected]

Industry Analyst Relations – Barbara French

[email protected]

Juniper in The first half of 2018...factors listed in Juniper Networks’ most recent report on Form...

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