Gen Digital Inc. · NASDAQ:GEN
Gen Digital — Symantec — Merger or Acquisition (January 2005)
32 slides from Gen Digital's merger presentation, Jan 5, 2005
Slide 1: Symantec and VERITAS merger presentation
John W. Thompson, Chairman and CEO, Symantec Gary L. Bloom, Chairman, President and CEO, VERITAS
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation contains forward-looking statements, including forecasts of market growth, future revenue, benefits of the proposed merger, and expectations that the merger will be accretive to Symantec's results and other matters that involve known and unknown risks, unc
Slide 3: Where to Find Additional Information
Where to Find Additional Information Symantec Corporation and VERITAS Software Corporation intend to file a registration statement on Form S-4 containing a joint proxy statement/prospectus in connection with the merger transaction involving Symantec and VERITAS. Investors and security holders are ur
Slide 4: Corporate Vision: Information Integrity
Corporate Vision: Information Integrity Vision Understand Act Control Information Integrity Leading Provider of Security Software Leading Provider of Storage Software + =
Slide 5: Strategic Rationale
Addresses customers' desire to reduce the complexity of their IT infrastructure and consolidate suppliers Broadens product portfolio across heterogeneous platforms and across all tiers of the IT infrastructure Significantly expands total market opportunity from $35 billion to $56 billion in 2007, ac
Slide 6: Expanding Market Opportunity
1) Source: IDC, 2004. 2) Security Services includes data for U.S. Consulting, Management Services and Education and Training market segments. 3) DBMS Management Software includes data for Data Movement and Replication and Data Management Facilities market segments. Expanding Market Opportunity - 12%
Slide 7: Category Leader by Estimated Revenue
Symantec/VERITAS CA BMC 5 4 2 Category Leader $2B $4B $5B Estimated Revenue - 4 Quarters ending 3/06 Leadership Source: Forward IBES Median Revenue and Company Estimates
Slide 8: Fastest Growing Software Company Over $3 Billion
Fastest Growing Software Company Over $3 Billion Symantec/VERITAS SAP Microsoft Oracle/Peoplesoft 18 10 7 7 7% 7% 10% 18% Year-Over-Year Estimated Growth Rates Source: IBES Median Revenue and Company Estimates Leadership
Slide 9: Technology Leadership
Technology Leadership VRTS EMC HP NetApp HDS Other storage mgmt 31.4 24.2 15.1 5.3 3.3 20.6 VRTS IBM CA EMC-LGTO HP Other backup & recovery 36.6 22.2 10.8 6.9 4.7 18.8 VRTS EMC IBM CA HP Other East 26.1 20.9 14.2 7.4 4.8 4.6 Storage Software Backup & Recovery Storage Management SYMC ISS BINDVIEW NET
Slide 10: Customer Perspective
Customer Perspective
Slide 11: Chief Information Officer: Today's Challenges
Chief Information Officer: Today's Challenges Customers Reduce Risk in Managing Information Security Availability Reduce Complexity Heterogeneous environment Number of Suppliers Reduce Costs Hardware Labor
Slide 12: Symantec & VERITAS Address CIO Challenges
Reduce Risk in Managing Information Security Availability Reduce Complexity Heterogeneity Fewer Suppliers Reduce Costs Hardware Labor Symantec & VERITAS Address CIO Challenges Products Storage and Server Virtualization Storage and Server Management Backup, Archiving, Replication, Clustering, Perform
Slide 13: Opportunities
Opportunities Distribution Consumer and Small Medium Enterprise Leverage Symantec brand presence in the channel Enterprises Leverage VERITAS' account presence in Fortune 500 Products Resilient Infrastructure Threat detection through improved application service levels Email Management Spam filtering
Slide 14: Temple University Customer Quote
Temple University Customer Quote "The addition of VERITAS to Symantec's information integrity portfolio should bring new, integrated product features addressing our secure data management needs, enterprise-wide. Our chief benefit will be earlier ROI recognition, through consolidating applications, d
Slide 15: Berdon LLP Customer Quote
Sn Berdon LLP “Reduced complexity is an objective that is always front and center for us. The proposed merger of Symantec and VERITAS, two strategic technology providers for us, is sure to play into this objective. In addition, as there are various synergies between the two product lines, we look fo
Slide 16: Farmers and Merchants Bank Customer Quote
Farmers and Merchants Bank Customer Quote "Both Symantec and VERITAS look to deliver solutions that meet our business requirements. With the merger of the two, we get a strategic advisor with greater scale and an integrated product line." Robert Graham Senior Vice President, Information Systems, Far
Slide 17: Sun Microsystems Partner Quote
Sun Microsystems "Sun welcomes the proposed merger of Symantec and VERITAS. We have a longstanding partnership with both companies, which we're looking forward to evolving into the future. A strong security and storage company, focused on Solaris 10 on SPARC and x86, and the evolution of Sun's stora
Slide 18: Network Appliance Partner Quote
Network Appliance "The Symantec VERITAS merger marries data availability and security to provide a very compelling solution for data-hungry and information-driven customers. NetApp customers can benefit tremendously from this merger as we continue to expand our joint solution development, tighten in
Slide 19: ASAP Software Channel Partner Quote
ASAP Software "ASAP congratulates both Symantec and VERITAS on their announced merger. We are excited about the partnership since it brings together important leaders in information security and storage software for a synergistic and simplified information integrity solution. ASAP enjoys excellent r
Slide 20: CDW Channel Partner Quote
CDW "We have strong relationships with both Symantec and VERITAS, and their products are important to our customers across all segments of our business. We also have extensive capabilities with both companies' software products, including the ability for our customers to manage their licenses on our
Slide 21: MOCA Channel Partner Quote
MOCA "Both Symantec and VERITAS have been significant vendors to our Software segment's growth rate at the MOCA Division of Arrow. MOCA's focus has been on enterprise- class software IP and products/solutions from vendors that leverage a value-added partner selling approach. We think there is a logi
Slide 22: Adexis Channel Partner Quote
Adexis "The potential merger of Symantec and VERITAS represents a great growth opportunity for us. Not only will there be a merging of two great brands but also a merging of two complimentary product lines that will allow us to provide our customers with a broader set of products and solutions to me
Slide 23: Customer, Partner and Channel Support for the Merger
Customer, Partner and Channel Support for the Merger Support for the Merger
Slide 24: Transaction Summary and Financials
Transaction Summary and Financials
Slide 25: Transaction Summary
Approximately $13.5 billion All stock transaction Fixed exchange ratio of 1.1242 shares of Symantec for each VERITAS share Symantec shareholders will own approx. 60% of the combined company VERITAS shareholders will own approx. 40% of the combined company Deal announced on December 16, 2004 The tran
Slide 26: Transaction Summary continued
The combined company will maintain the Symantec name Continue to trade on NASDAQ under the ticker "SYMC" John Thompson will be CEO of the combined company Gary Bloom will be responsible for sales, services and corporate development John Schwarz will be responsible for product development and enginee
Slide 27: Financial Performance: Trailing Twelve Month P&L
Financial Performance: Trailing Twelve Month P&L ending 9/30/04 Historical Financials Revenue $2,225 M $1,969 M Gross Profit $1,877 M $1,668 M Gross Margin 84.4% 84.7% Operating Income $737 M $552 M Operating Margin 33.1% 28.0% Non-GAAP Net Income* $519 M $390 M *Non-GAAP Net Income excludes expense
Slide 28: Financial Performance: Balance Sheet
Financial Performance: Balance Sheet as of 9/30/04 Historical Financials Cash $2,545 M $2,539 M Deferred Revenue $1,153 M $418 M Debt $600 M $901 M DSO 48 38 Headcount 5,873 7,423
Slide 29: Revenue Mix: Quarter ended 9/30/04
Consumer Enterprise Revenue 0.28 0.72 United States EMEA Asia / ROW Revenue 0.528 0.3075 0.164 Revenue Mix: Quarter ended 9/30/04 Historical Financials Combined Revenue by Customer Mix Combined Revenue by Geography Consumer Enterprise Asia/ROW United States EMEA
Slide 30: FY06 Guidance
FY06 Guidance Revenue expectation of $5 billion Operating expenses expected to be 55% of revenue Cost synergies of $100 million $13 million should be realized in 1Q06, increasing through the year Excluding the impact of the deferred revenue write-down, non-GAAP EPS is expected to be $0.99 Including
Slide 31: Why is this a Good Deal?
Why is this a Good Deal? 4th Largest Software Company in The World Breadth and Depth: technology leader in infrastructure management Fastest growing large software company $35B market opportunity going to $56B Broad Coverage Model Global Reach: consumer to enterprise Channel Presence: volume distrib
Slide 32: Thank You
Thank You