Unlocking Our Growth Opportunity · FINANCIAL OVERVIEW 1 Unlocking Our Growth Opportunity Thomas...

FINANCIAL OVERVIEW 1

Unlocking Our Growth Opportunity

Thomas Seifert

EVP and Chief Financial Officer

Forward Looking Statements 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.

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Use of GAAP and Non‐GAAP Financial InformationOur 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.

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1 Path to Growth and Improving Profitability

2 FY15 Highlights

3 FY15‐17: Guidance and Targets

4 Cash Flow and Capital Allocation

5 Separation and Restructuring

Agenda

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FY15 FOCUS FY16 ACCELERATE FY17 UNLOCK VALUE

Path to Accelerating Growth and Improving Profitability

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Returned cash to shareholders

Achieved profitability targets

Returning to growth

Right‐sized cost structure

Deliver on product roadmap

Continue to expand margin

Build on FY15 growth momentum

Execute on separation

Security

Two streamlined businesses

Significant cash flow generation

Further improved margin

Accelerated growth

FY15 Highlights

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Returning to GrowthAchieved our Profitability Targets

‐8%

3%

‐6%

2%

FY14 FY15E

Implied Billings and Deferred Revenue Growth1

Implied Billings Growth

Deferred Revenue Growth

25%

27% 28%

FY13 FY14 FY15E

Operating Margin2

Executed on Operational Initiatives

Growth and efficiency initiatives delivered

$150M+in incremental operating profit, and we are tracking at a run‐rate of

~$225M into FY16

30%target in 3Q15

Hit

1. Adjusted for FX and extra week in the June 2014 quarter; Growth assumptions for 4Q15 based on management discretion. 2. Non‐GAAP financial measure. See www.symantec.com/invest for a reconciliation to the applicable GAAP financial measure.


Building Momentum while Executing Veritas Separation

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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

World’s largest civilian cyberintelligencethreat network

Security

#1 in Backup and Recovery


Veritas: Accelerating Growth and Significant Margin Expansion

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• Growth accelerated to 5% in 3Q15 vs. (4%) decline in FY14

• Fastest appliance growth in industry

• Right‐sized cost structure

• 12 percentage point op margin improvement over last 3 quarters

• Enterprise backup software and appliances to drive growth

• GTM effectiveness

• Operating leverage

• Billings momentum

Rev. Growth: 5% – 8% Op. Margin: 29% – 30%

Rev. Growth: ~2% Op. Margin: ~20%


• New offerings accelerate FY17 revenue growth

• Margin improvement driven by increasing sales productivity

Guidance

Targets

4. Op. margin is a non‐GAAP financial measure. See www.symantec.com/invest for a reconciliation to the applicable GAAP financial measure.

5. FY16 and FY17 revenue and op margin assume FX rate of €/$ 1.13.

1. FY15 and FY16 revenue growth adjusted for FX and extra week in the June 2014 quarter; FY16 growth compared to midpoint of FY15 guidance.

2. Op. margin expansion at constant currency.

3. 4Q15 revenue and op margin allocated to segments based on management’s discretion.



• Leverage consumer mobile

• Customer experience improvements

• Premium support services

Consumer Security: Improving Revenue Outlook with Outstanding Margin

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• Exited unprofitable OEMs and retail markets

• Massive business simplification and cost reduction

• Formed business unit in April ‘14

• Shift to subscription

• Subscription and pricing optimization

• Shift toward online acquisition

• Merchandising

• Optimize marketing spend

Rev. Growth: ~(7%) Op. Margin: ~53%

Rev. Growth: (8%) – (5%) Op. Margin: 52% – 54%

Rev. Growth: (6%) – (3%) Op. Margin: 51% – 55% Guidance

Targets






• Unified security analytics platform monetization

• Growth from cloud and mobile offerings

Enterprise Security: Accelerating Growth and Margin Expansion

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• Positioning and investing for growth

• Operational performance improvement

• 3 new ATP products

• 2 new Cybersecurity services

• 2 unified security offerings

• GTM effectiveness

• Subscriber growth for services and content

Rev. Growth: ~(2%) Op. Margin: ~14%


Rev. Growth: 6% – 10% Op. Margin: 14.5% – 16.5% Guidance

Targets








Scale & Scope of Enterprise Security Franchises Underpin Growth

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#1 share; AAArating

nine quarters in a row

Endpoint Security

#1 email share; 100%availability with <0.0003% FPs

Email and Web Security

#1 DLP share100% of Fortune 100

Data Protection

#1 share6B certificate lookups/day

SSLCertificates

13B validations every day100% uptime last 5 years

Authentication & Authorization

ManagedSecurity Services

5 global SOCs30B logs analyzed/day

Source: IDC, Gartner, Symantec.

NEW BUSINESS

RETENTION

PRICING

UPSELL/CROSS‐SELL

Enterprise Security Growth Levers Unlock Significant Value

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1. Highest ‘Likelihood to renew’ for Enterprise Security customers (Oct ’14 Brand Survey, 9 Countries, 6,300 Customers)

Each customer buys +1 product…

>5Xlikelihood of selling more to existing customers than new customers

>$1Bn

100bpsimprovement in price realization…

>$100M

…leads to larger impact on Op Margin

+200‐300bps

100bps of new TAM over next 3yrs

>$350M

Focused and dedicated sales force

AnnualRenewal opportunity

>$800M

Industry‐leading likelihood to renew1





FY15‐17: Path to Accelerating Growth and Improving Profitability

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• Achieved profitability targets

• Right‐sized cost structure

• Returned cash to shareholders

• Build on FY15 growth momentum

• Continue to improve margin

• Execute on separation

• Deliver on product roadmap

Rev. Growth: (1%) – 0% Op. Margin: 27.5% – 27.7%

EPS Growth: ~1%

Rev. Growth: 0 – 2% Op. Margin: 29% – 30% EPS Growth: 8 – 14%

Security


Guidance

Targets


5. FY16 revenue and EPS growth adjusted for FX and extra week in the June 2014 quarter; Growth compared to midpoint of FY15 guidance.

6. FY16 and FY17 revenue and op. margin, and FY16 EPS assume FX rate of €/$ 1.13.

7. FY16 and FY17 revenue and op. margin pro forma for combined Symantec Security and Veritas.

1. FY15 revenue and EPS growth adjusted for FX. Includes extra week in the June 2014 quarter.


3. Op. margin and EPS are non‐GAAP financial measures. See www.symantec.com/invest for a reconciliation to the applicable GAAP financial measure.

Improving Cash Flow from Operations

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1. FY15 CFFO based on 1Q15‐3Q15 actuals + 4Q15 estimate based on management discretion.2. FY16 and FY17 CFFO based on midpoint of FY16 guidance and FY17 targets; growth rates not adjusted for currency.

~$1.3~$1.5

~$1.8

FY15E FY16E Guidance FY17E Target

Cash Flow from Operations ($ in billions)1

Security Disciplinedcapital allocation

Continuedmargin momentum and accelerating growth drive significant cash flow

~12%~26%


Capital Allocation Strategy

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Pre‐Separation Post‐Separation

Continue to return the same level of cash dividends and buybacks as in FY15 until legal separation

Attractive dividend yield and share repurchase program

More details on capital structure and allocation to come post filing the Form 10

Security

On Track to Separate Veritas as an Attractive Standalone Business

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FY2016

FY16 Q1 FY16 Q2 FY16 Q3 FY16 Q4

Sales force separated

Form 10 Filing

Credit Rating Discussions

Operational Separation(October 3, 2015)

Legal Separation(January 2, 2016)

Expect restructuring costs of $165‐$195MExpect separation costs of $170‐$190M


Summary: Unlocking Our Growth Opportunity

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FOCUS drove implied billings and deferred revenue growth at target profitability

Building on momentum to ACCELERATE growth & margin expansion through new offerings

Committed to UNLOCK VALUE and continue to return cash to shareholders

On track to separate Veritas as an attractive standalone business

Growth on more efficient cost base drives significant cash flow & EPS improvement

Q&AMichael Brown and Thomas SeifertPresident and Chief Executive Officer, and EVP and Chief Financial Officer


Appendix

FY15 Guidance and Reconciliation of GAAP to Non‐GAAP Operating Margin and Earnings Per Share (1) (2)

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1. This presentation includes non‐GAAP measures. Non‐GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these non‐GAAP measures, please see Appendix A.2. Non‐GAAP measures for fiscal 2015 have been revised to reflect a change in methodology that reduces the number of adjustments to GAAP measures. For a detailed explanation of this change in methodology, please see “Change in non‐GAAP methodology” in Appendix A.3. We have a 52/53‐week fiscal accounting year. The fiscal year ended April 3, 2015 consists of 53 weeks, whereas the fiscal year ended March 28, 2014 consisted of 52 weeks. 4. Growth rates are calculated using fiscal year 2014 non‐GAAP revenue.5. Management refers to growth rates adjusting for currency fluctuations in foreign currency exchange rates so that the business results can be viewed without the impact of these fluctuations. We compare the percent change of the results from one period to another period in order to

provide a consistent framework for assessing how our underlying businesses performed. To exclude the effects of foreign currency rate fluctuations, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the actual exchange rates in effect during the respective prior periods.

Year Ended April 3, 2015

Year‐Over‐Year Growth Rate (3) (4)

Revenue Guidance Range Actual Constant Currency (5)

Revenue range $6,515 ‐ $6,575 (2.8%) ‐ (1.9%) (0.8%) ‐ 0.2%


Year‐Over‐Year Increase (3)

Operating Margin Guidance and Reconciliation Range Actual Constant Currency (5)

GAAP operating margin 18.8% ‐ 19.0% 110 bps ‐ 130 bps 198 bps ‐ 221 bps

Add back:

Stock‐based compensation 3.0%

Other non‐GAAP adjustments 5.7%

Non‐GAAP operating margin 27.5% ‐ 27.7% 10 bps ‐ 30 bps 85 bps ‐ 109 bps


Year‐Over‐Year Growth Rate (3)

Earnings Per Share Guidance and Reconciliation Range Actual

GAAP diluted earnings per share range $1.23 ‐ $1.26 (3.9%) ‐ (1.6%)

Add back:

Stock‐based compensation, net of taxes $0.21

Other non‐GAAP adjustments, net of taxes $0.43

Non‐GAAP diluted earnings per share range $1.87 ‐ $1.90 (4.1%) ‐ (2.6%)

$ in millions, except per share data, unaudited


FY16 Guidance and Reconciliation of GAAP to Non‐GAAP Operating Margin and Earnings Per Share (1) (2)

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1. This presentation includes non‐GAAP measures. Non‐GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these non‐GAAP measures, please see Appendix A.2. We have a 52/53‐week fiscal accounting year. The fiscal year ended April 1, 2016 consists of 52 weeks, whereas the fiscal year ended April 3, 2015 consisted of 53 weeks. 3. Management refers to growth rates adjusting for currency fluctuations in foreign currency exchange rates so that the business results can be viewed without the impact of these fluctuations. We compare the percent change of the results from one period to another period in order to

provide a consistent framework for assessing how our underlying businesses performed. To exclude the effects of foreign currency rate fluctuations, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the actual exchange rates in effect during the respective prior periods.



Revenue Guidance Range Actual Constant Currency (3)

Revenue range $6,210 – $6,350 (5.1%) – (3.0%) (1.5%) – 0.7%


Year‐Over‐Year Increase (2)

Operating Margin Guidance and Reconciliation Range Actual Constant Currency (3)

GAAP operating margin 14.5% ‐ 15.5% (440 bps) ‐ (340 bps) (304 bps) – (204 bps)

Add back:

Stock‐based compensation 4.6%

Other non‐GAAP adjustments 9.9%

Non‐GAAP operating margin 29.0% ‐ 30.0% 140 bps – 240 bps 246 bps – 346 bps



Earnings Per Share Guidance and Reconciliation Range Actual

GAAP diluted earnings per share range $0.86 ‐ $0.96 (30.9%) – (22.9%)

Add back:

Stock‐based compensation, net of taxes $0.30

Other non‐GAAP adjustments, net of taxes $0.64

Non‐GAAP diluted earnings per share range $1.80 ‐ $1.90 (4.5%) – 0.8%

$ in millions, except per share data, unaudited

Fiscal 2016 Guidance

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FY16 Guidance1 % Adj. Growth2

Veritas

Consumer Security

Enterprise Security

$2,570 +/‐ $30

$1,690 +/‐ $30

$2,020 +/‐ $50

4% – 7%

(8%) – (5%)

1% – 6%

Total Revenue $6,280 +/‐ $70 0% – 2%

Veritas

Consumer Security

Enterprise Security

27% – 29%

52% – 54%

10% – 12%

Non‐GAAP Operating Margin 29% ‐ 30% 2.9pts – 3.9pts

Non‐GAAP EPS $1.80 ‐ $1.90 8% – 14%

Cash Flow from Operations $1,450 +/‐ $50

$ in millions, except EPS

1. Guidance at FX rate of €/$ 1.13; Segment ranges are wider than total revenue range.2. Adjusted for FX and extra week in the June 2014 quarter; growth compared to midpoint of FY15 guidance and allocated to segments based on management’s discretion.


Fiscal 2017 Targets

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$ in millions

1. Guidance at FX rate of €/$ 1.13.2. Growth and margin expansion compared to midpoint of FY16 guidance.

FY17 Targets1 % Adj. Growth2

Revenue

Veritas

Consumer Security

Enterprise Security

$2,740 +/‐ $40

$1,615 +/‐ $25

$2,180 +/‐ $40

5% – 8%

(6%) – (3%)

6% – 10%

Non‐GAAP Operating Margin

Veritas

Consumer Security

Enterprise Security

29% – 30%

51% – 55%

14.5% – 16.5%

1 pts – 2 pts

(2) pts – 2 pts

3.5 pts – 5.5 pts

Cash Flow from Operations

Veritas

Symantec Security

$785 +/‐ $35

$1,040 +/‐ $40

Financial Target Summary

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Note: Guidance for FY15 at FX rate of $1.28; FY16 & FY17 at FX rate of €/$ 1.13.1. FY15 growth includes extra week.2. FY16 growth excludes extra week in FY15.3. Pro forma metrics assuming both Symantec Security and Veritas are together for all 4 quarters of FY16 and FY17. 4. Non‐GAAP EPS at actual rates and not adjusted for extra week in the FY15 June 2014 quarter.

$ in millions

FY15E1 FY16E2,3 FY17E3

Adj. Revenue Growth (1%) – 0% 0% – 2% 2% – 6%

Veritas

Symantec Security

4% – 7%

(4%) – 1%

5% – 8%

1% – 4%

Non‐GAAP Operating Margin 27.5% – 27.7% 29% – 30% 30% – 32%

Veritas

Symantec Security

27% – 29%

30% – 31%

29% – 30%

30% – 33%

Non‐GAAP EPS4 $1.87 ‐ $1.90 $1.80 ‐ $1.90 –


As Reported Growth Rates

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FY16 Guidance1,2 FY17 Targets1,2

Veritas

Consumer Security

Enterprise Security

(1%) – 2%

(13%) – (10%)

(5%) – 0%

5% – 8%

(6%) – (3%)

6% – 10%

Total Revenue (5%) – (3%) 2% – 6%

Non‐GAAP EPS (4.5%) – 0.8% –

1. Guidance at FX rate of €/$ 1.13; FY16 growth rates based on midpoint of FY15 guidance which includes the extra week in the June 2014 quarter.2. Total revenue pro forma for combined Symantec Security and Veritas.

$ in millions, except EPS

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