Gen Digital Inc. · NASDAQ:GEN
Gen Digital — Symantec — Shareholder Meeting (September 2017)
21 slides from Gen Digital's shareholder meeting presentation, Sep 5, 2017
Slide 1: In-Season Stockholder Engagement Fall 2017
In-Season Stockholder Engagement Fall 2017
Slide 2: Forward Looking Statements
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 goals (as a combined comp
Slide 3: Use of GAAP and Non-GAAP Financial Information
Use of GAAP and Non-GAAP Financial Information Unless otherwise indicated all numbers presented are non-GAAP. All revenue growth rates are presented in constant currency unless stated otherwise. To calculate constant currency, current and comparative prior period results for entities reporting in cu
Slide 4: Largest Pure-Play Cybersecurity Company in the World
Integrated Cyber Defense leadership across web, users, information and messaging #1 market share across six Enterprise Security products Expected FY18 Financial Profile: Revenue: ~$3B Operating Margin: High 20’s Largest Pure-Play Cybersecurity Company in the World Global cybersecurity leader protect
Slide 5: Symantec's Transformation
Symantec’s Transformation Fiscal Year 2017 was a transformative year for Symantec, defined by a focus exclusively on cybersecurity, a major operational initiative to reduce costs and complexity, two transformative acquisitions and a significant realignment of our executive leadership Jan ‘16 Feb Mar
Slide 6: Best-in-Class Management Team
Experienced management team with proven operational success and deep cybersecurity knowledge – focused on disciplined execution during this critical time for the business Best-in-Class Management Team Greg Clark (CEO) Roxanne Divol (EVP Website Security) Amy Cappellanti-Wolf (Chief HR Officer) Fran
Slide 7: Relentless Focus on Disciplined Execution in Fiscal Year 18
Relentless Focus on Disciplined Execution In Fiscal Year 2018 Aligned, integrated sales organization and channel Strong cross-sell, refresh, renewal opportunity FY18 acquisition adjusted organic revenue growth in the mid single digits and operating margins in the high 20’s Following the Fiscal Year
Slide 8: Financial Transformation - Fiscal Years 2016 – 2018E
20% ‘16 – ’18 CAGR Revenue Growth Significant EPS Growth Operating Income Growth, Margin Expansion Achieved original revenue outlook for FY17 Acquisition adjusted organic growth for both Enterprise and Consumer Digital Safety segments expected in FY18 Overachieved operating margin expectations in FY
Slide 9: Symantec Follows Compensation Governance Best Practices
Symantec Follows Compensation Governance Best Practices The following factors demonstrate our continued and heightened commitment to pay-for-performance and governance best practices: We reward performance that meets our predetermined goals We cap payouts to discourage excessive or inappropriate ris
Slide 10: Fiscal Year 2017 Compensation Design Reflects Unique Transformational Period
Fiscal Year 2017 Compensation Design Reflects and Reinforces Unique Transformational Period for Symantec Design aligned to stockholder value generation Blue Coat Acquisition June 2, 2016: Blue Coat files Form S-1 Registration Statement in anticipation of initial public offering June 12, 2016: Symant
Slide 11: FY17 Compensation Program Design Reflects Business Transformation
Our Fiscal Year 2017 compensation program design was impacted by, and reflects, the business transformation Jan ‘16 Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan ‘17 Feb Mar Apr May Jun Announced intent to acquire Blue Coat for $4.65B and to appoint Greg Clark (Blue Coat’s then-CEO) as our CEO Co
Slide 12: FY17 Compensation Program Aligns Pay with Performance
FY17 Compensation Program Aligns Pay with Performance *See Proxy Statement “Compensation Components — II. Executive Annual Incentive Plan” for a description of non-GAAP operating income and non-GAAP revenue. See also “Compensation Components — III. Equity Incentive Awards” for a description of Fisca
Slide 13: FY18 Compensation Program Overview
FY18 compensation program reflects a return to our more traditional incentive plan approach and is designed to reward achievement of challenging performance goals that align with our long term business strategy FY18 Compensation Program Overview Base Salary Aligned with role, contributions and compe
Slide 14: Long-Term Equity Design Directly Aligns with Stockholders
Long-Term Equity Design Directly Aligns with Stockholders Performance-Based Restricted Stock Unit (PRU) Award Timeline Performance Period Metric: FY18 Non-GAAP Operating Income FY18 End (March 2018) 2018 Fiscal Year End Payout range of 0% to 250% 2019 Fiscal Year End Payout in Excess of 250% FY19 En
Slide 15: Strategic Use of Equity Incentives
Strategic Use of Equity Incentives In addition, in recent years our gross burn rate has been decreasing4 -22% -18% Our Board of Directors takes seriously its commitment to stockholders to use equity responsibly Broad Based Use of Equity 1 Over the last two fiscal years 2 As of July 19, 2017 3 Decrea
Slide 16: Overhang Impacted Due to Transformation
Overhang Impacted Due to Transformation Assumption of the Blue Coat and LifeLock awards will continue to impact our overhang Excluding those awards, our total dilution (already outstanding awards + new request and existing share reserve) is reasonable for a company in our industry Including Awards A
Slide 17: Amendments to the 2013 Equity Incentive Plan
A modest 8,000,000 shares to enable us to make estimated FY19 equity grants in June 2018; A prohibition on dividend payments on unvested equity awards under the 2013 Plan; and A requirement that all awards granted under the 2013 Plan shall be subject to our insider trading and recoupment policies in
Slide 18: Symantec's Independent and Highly-Qualified Board
Symantec’s Independent and Highly-Qualified Board All directors except the CEO are independent Separate Chairman / CEO Board committees 100% independent Independent directors meet regularly in Executive Session Annual Board and committee self-evaluations Governance Best Practices Our Board’s diverse
Slide 19: We Request Your Support at Our 2017 Annual Meeting
FOR election of each of the nominees to the Board FOR ratification of the appointment of KPMG LLP as Symantec’s independent registered public accounting firm for FY18 FOR amendments to the 2013 Equity Incentive Plan FOR advisory vote on executive compensation For ANNUAL advisory vote on executive co
Slide 20: Appendix
Appendix symantec.
Slide 21: GAAP Results Reconciled to Non-GAAP Results
GAAP RESULTS RECONCILED TO NON-GAAP RESULTS ($ in millions, except per share data, unaudited) Net Revenue Reconciliation Year ended 42825 42461 GAAP net revenues $4,019 $3,600 Adjustments: Deferred revenue fair value adjustment 144 0 Non-GAAP net revenues $4,163 $3,600 Operating Income Reconciliatio