Slide 1: Sale of Enterprise Security Assets + Unlocking Consumer Cyber Safety
Sale of Enterprise Security Assets + Unlocking Consumer Cyber Safety Investor Presentation August 8, 2019
Slide 2: Forward Looking Statements
Forward Looking Statements This supplemental information contains statements which may be considered forward-looking within the meaning of the U.S. federal securities laws. In some cases, you can identify these forward-looking statements by the use of terms such as “expect,” “will,” “continue,” or s
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. To help our readers understand our past financial performance and our projected future results, we supplement the financial results that we provide in accordance with generally accepted acco
Slide 4: Unlocking Value
Unlocking Value 1 Unlocks substantial value trapped within both Enterprise Security businesses Business to be sold to Broadcom in an asset 2 Delivers significant value to shareholders by sale for $10.7B in cash returning ~100% of net proceeds through an expected $12 per share special dividend* + 3 C
Slide 5: Unlocks substantial embedded value
1 Unlocks substantial embedded value FY19 Reported Segment Financials (Non-GAAP) • Broadcom to acquire: • 100% of Enterprise’s revenue (1) • Selected Enterprise headcount, technology and IP required to operate Revenue: Revenue: the business $2.4B ~$1.5B in Stranded Costs $2.4B To Be Eliminated • Exp
Slide 6: Delivers significant value to shareholders
2 Delivers significant value to shareholders Enterprise Sale Proceeds • Transaction expected to close before the end of calendar year 2019 pending Gross Estimated Estimated Special regulatory approvals Proceeds Taxes Net Proceeds Dividend $10.7B (–) $2.5B = $8.2B $12/share (1) • After close, expect
Slide 7: Creates pure-play consumer cyber safety leader
3 Creates pure-play consumer cyber safety leader • Consumer Cyber Safety to emerge as a focused, pure-play leader in consumer cyber safety SECURITY PRIVACY • Leading market share (by INTEGRATED MEMBERSHIP revenue) and brand recognition • Million Dollar ProtectionTM • 100% Virus Protection Promise wi
Slide 8: Positions attractive long term financial model
4 Positions attractive long term financial model Consumer Cyber Safety Financial Model • Recurring revenue with high operating margins Post-Transition Long Term • FY18 Segment Performance: Model Model $2,343M Revenue (+3% Growth(4)) Low Single Mid Single $1,174M Operating Income (50% Margin) Revenue
Slide 9: Drives long term Total Shareholder Return
5 Drives long term Total Shareholder Return Strong Cash Flow Generation & Disciplined Capital Allocation • Strong cash flow generation driven by revenue growth Attractive potential and high margin Dividend Yield profile Opportunistic ~$900M Buyback Program • Disciplined capital allocation Flexibilit