Symantec s 2015 Financial Analyst Day

Transcription

1 Symantec s 2015 Financial Analyst Day April 17, 2015 Welcome Helyn Corcos Vice President, Investor Relations STRATEGIC HIGHLIGHTS 1

2 Forward Looking Statements This presentation contains statements regarding 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 financial guidance and targets (as a combined company and by business segment); our proposed separation into two publicly traded companies; the projected market growth rates and margin expansion opportunities for the security business and the information management business; statements regarding our competitive advantages in security and information management; statements with respect to the proposed timing of the separation; and statements with respect to proposed capital allocation strategies for both Symantec and Veritas. 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 presentation. 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 industries in which we operate; 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 containedintheforward 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 March 28, 2014 and our Form 10 Q forthe quarter ended January 2, 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. 3 Use of GAAP and Non GAAP Financial Information 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 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. Our non GAAP results are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Investors are encouraged to review the reconciliation of our non GAAP financial measures to the comparable GAAP results, which can be found, along with other financial information, on the investor relations page of our website at Reconciliations for our financial results and guidance can be found on Symantec s investor relations website. 4 STRATEGIC HIGHLIGHTS 2

3 Definition of Terms Used Throughout Presentation 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, 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 4Q FAD Agenda Speaker Michael Brown John Gannon & Matt Cain Topic Unlocking Value through Focus & Growth Veritas Strategy & Products w/q&a 10:25 am ET 10 minute Break Fran Rosch Jeff Scheel, Balaji Yelamanchili & Amit Mital Consumer Security Strategy w/q&a Enterprise Security: Markets, Strategy & Products w/q&a 12:35 pm ET 15 minute Break Thomas Seifert Michael Brown & Thomas Seifert Michael Brown Unlocking Our Growth Opportunity Final Q&A Closing Remarks 2:00 pm ET Reception & Demos 6 STRATEGIC HIGHLIGHTS 3

4 Unlocking Value Through Focus and Growth Michael Brown President and Chief Executive Officer Agenda 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 FY STRATEGIC HIGHLIGHTS 4

5 Focus Drove FY15 Priorities Growth Margin, Cash Flow & Operational Focus Reduce costs and improve efficiencies across company Return significant cash to shareholders Optimize our businesses based on lifecycle and growth potential Talent New Product Delivered Strategy & Separation Strengthen leadership team Prioritize investments for growth in our enterprise businesses In review as year began 9 Focus Drove FY15 Progress Growth Margin, Cash Flow & Operational Focus 3% Margin expansion Return to shareholders Manage our business as a portfolio 8 Revenue and efficiency initiatives drove Implied billings growth in FY % 53% ~$900M >$150M Total company 2 Norton 2 Deferred revenue growing again (after 6 quarters) 5% Veritas revenue accelerating from 0% to 5% 3 Talent Products Delivered Strategy & Separation Strengthened the leadership team with 5 new executives 41 Enterprise security products delivered Veritas products delivered 17 Launched Norton Security subscription 2 clear strategies => separation Increase focus, reduce complexity and enhance strategic flexibility 1. Adjusted for FX and extra week in the June 2014 quarter; growth based on midpoint of FY15 guidance. 2. As of 3Q Growth rates at constant currency; year over year growth in 1Q15 and 3Q STRATEGIC HIGHLIGHTS 5

6 Market Dynamics Driven by Different Trends & Customer Needs Security Information Management Complexity of threats 40% increase in enterprise targeted attacks 23% Increase in breaches 1M New threats created per day Exponential data growth driven by mobile, virtualization & hybrid clouds Overwhelmed with volume of alerts Customer focus on reliability & lower TCO CISO CISOs are primary buyers CIO CIOs are primary buyers Shorter selling cycles Longer selling cycles Need for actionable, intelligent security solutions Complexity in managing information; increased information fragmentation Large and Growing Markets Driven by Evolving Threats Large and Growing Markets Driven by Exponential Information Growth 11 Veritas OUR UNIQUE ASSETS CUSTOMERS 86% of Fortune 500 choose Veritas solutions HETEROGENEITY Unparalleled breadth of multiple vendors platforms and clouds 86% SCALE Largest, most complex companies feeding the Fabric UNMATCHED BACKUP Unique platform of #1 backup SW and leading appliance APPLICATION AWARENESS IT service continuity beyond just infrastructure MORE DATA ABOUT DATA Rich repository of detailed metadata and insight 12 STRATEGIC HIGHLIGHTS 6

7 Veritas PRODUCT STRATEGY Expand best in class Foundational portfolio Deliver next generation Availability solutions Enable next generation Insight solutions Expand across backup, storage management, business continuity, archiving and ediscovery. Deliver capabilities via software, integrated appliances or cloud. 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. Our Competitive Advantage: Heterogeneity & Scale Make every byte of data actionable by ensuring availability and revealing insights 13 Symantec Security OUR UNIQUE ASSETS 175M endpoints 42M attack sensors in 157 countries 63M users & 4M SMBs 6.8M mobile devices protected 3.7T rows of telemetry 100 Billion more/month 30% of world s enterprise traffic scanned/day 1.8 Billion web requests 500+ threat & response team 9 global threat response centers 14 STRATEGIC HIGHLIGHTS 7

8 Symantec Security Strategy Leverages Unique Assets Best in Class Security Products Unified Security Analytics Platform Cyber Security Services Consumer Norton Security Enterprise Symantec Threat Protection Symantec Information Protection Security Big Data Analytics Unparalleled scope of telemetry (Symantec and 3 rd Party) Unrivalled visibility into realtime global threats Powers Symantec and 3 rd party security analytics applications Our Competitive Advantage: Global Scale & Real Time Visibility We see more, analyze more, and therefore protect from more cyber threats than any other company in the world Full suite of services Monitoring services Incident response services Threat intelligence services Supported by 500+ world class cyber security experts and 9 global threat centers 15 Drivers to Accelerate Growth & Unlock Value for FY16 17 Security Information Management 10% CAGR in addressable security market 7% CAGR in addressable market Shifting & increasing R&D to growth markets Shifting & increasing R&D to growth markets Increase in NEW security offerings in FY16 3 new ATP offerings 2 new Cyber Security services 2 new Security Analytics applications 14 foundational products; 3 new offerings Norton subscription traction Deliver intelligent information fabric layer CISO 40% increase for enterprise security quota carrying reps; 1,750 dedicated security sales professionals CIO 20% increase for quota carrying reps; 2,100+ dedicated sales professionals 16 STRATEGIC HIGHLIGHTS 8

9 Unlocking Value through Focus and Growth Focus drove our expanded operating margin & investments for growth in FY15 Leverage our scale & unique assets to drive differentiated offerings in FY16 17 Global scale & real time visibility drives enterprise security growth & mitigates Norton decline Differentiated approach of Availability & Insight drives growth 17 STRATEGIC HIGHLIGHTS 9