Gen Digital Inc. · NASDAQ:GEN

Gen Digital — NortonLifeLock — Debt Investor Presentation (September 2022)

42 slides from Gen Digital's debt investor presentation, Sep 7, 2022

Slide 2: Forward-Looking Statements
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Forward - Looking Statements This presentation contains certain forward - looking statements with respect to NortonLifeLock Inc. (“NortonLifeLock”), Avast plc (“Avast”) and with respect to their proposed combination by way of scheme of ar
Slide 3: No Offer or Solicitation
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. No Offer or Solicitation This presentation is for information purposes only and is not intended to and does not constitute, or form any part of, an of fer to sell or the solicitation of an offer to subscribe for or an invitation to subscr
Slide 4: Offering Memorandum (continued); Use of Non-GAAP Financial Information
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Offering Memorandum (continued) You may get these documents for free by vising EDGAR on the SEC’s website at www.sec.gov. You should base your investment dec isi on with respect to any securities offered by NortonLifeLock solely on the Of
Slide 5: Publication on website; Quantified Financial Benefits Statement
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Publication on website A copy of this presentation will be made available (subject to certain restrictions relating to persons resident in Restricte d J urisdictions) on NortonLifeLock’s website (at https://investor.nortonlifelock.com/) b
Slide 6: One-off costs
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. One - off costs In order to realise these synergies, NortonLifeLock is expected to incur one - off restructuring and integration costs of approxim ately one year’s run - rate pre - tax cost savings, or USD 280 million, with approximately
Slide 7: Bases of belief and principal assumptions (continued)
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Bases of belief and principal assumptions (continued) The quantified synergies are incremental to NortonLifeLock’s and, to the best of NortonLifeLock’s knowledge, Avast’s existing pl ans. In general, the synergy assumptions have in turn b
Slide 8: Notes
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Notes 1. The Quantified Financial Benefits Statement relates to future actions and circumstances which, by their nature, involve risks , u ncertainties and contingencies. In addition, due to the scale of the Combined Company, there may be
Slide 9: Today's Presenters
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Today’s Presenters Natalie Derse CFO Vincent Pilette C E O 8
Slide 12: Proposed Merger and financing summary
▪ On August 10 th , 2021, NortonLifeLock Inc. (“NortonLifeLock” or the “Company”) announced a definitive agreement to purchase Avast plc (“Avast”) for a mix of cash and stock, with alternative consideration elections available to Avast shareholders (the “Proposed Merger ”) ▪ In the Majority Cash Opt
Slide 13: Refinancing Sources & Uses and Pro Forma Capitalization
12 Avast + NortonLifeLock Refinancing Sources & Uses Pro Forma Capitalization ____________________ Note: Excludes transaction fees and expenses. (1) As further adjusted for the 2022 convertible notes repayment and all of the Transactions, including the Proposed Merger and the entry by the Combined C
Slide 14: Senior Unsecured Notes
13 Avast + NortonLifeLock Senior Unsecured Notes Copyright © 202 2 NortonLifeLock + Avast . All rights reserved. Issuer NortonLifeLock Inc. (the “Issuer”) Issue Senior Unsecured Notes Guarantors Jointly and severally guaranteed by existing and future domestic subsidiaries that guarantee the Issuer's
Slide 16: Key Credit Highlights
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Key Credit Highlights 15 Consumer - Focused Management Team with Deep Expertise and Proven Track Record of Success Comprehensive Product Offerings Across Identity, Security and Privacy Strong Position in Large and Underpenetrated Cyber Sa
Slide 17: Brought Together with a Common Vision
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Brought Together with a Common Vision NortonLifeLock’s Vision is to protect and empower people to live their digital lives safely Avast’s Vision i s empowering digital citizens for safer online experiences Empowering Digital Freedom for
Slide 18: NortonLifeLock at a Glance
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. NortonLifeLock at a Glance ~ 80 M T otal C ustomers 23M+ D irect C ustomers 85% + A nnua l R etention R ate $ 8.82 D irect ARPU (Monthly) (2) Summary Financials (3) SECURITY Protects PCs, Macs and mobile devices against malware, viruses,
Slide 19: Avast at a Glance
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Avast at a Glance ( 2 ) 435 M + Monthly Active Users ~16 M D irect C ustomers 69 % A nnua l R etention R ate $ 4.21 Average Revenue Per Customer (Monthly) (4) Summary Financials (5) CONSUMER DIRECT ▪ Next Gen Antivirus – Secures your digi
Slide 20: Cyber Safety still significantly underpenetrated
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Cyber Safety still significantly underpenetrated CORE CYBER SAFETY & ADJACENT TRUST - BASED SOLUTIONS Source: IDC, Gartner, Javelin Strategy & Research, GlobalInfoResearch, Maia Research, Statista, public company filings, NortonLifeLock E
Slide 21: The Problem: Cyber Criminality
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. • Increase in threats and attacks, which have become extremely sophisticated • More targeted, more complex and faster • Identity records and confidential personal information sold in underground markets • A $6 trillion problem, touching m
Slide 22: A Differentiated Approach
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. A Differentiated Approach GIGA - SCALE ENDPOINT VISIBILITY Visibility on threat and behavioral trajectories across 500 million+ endpoints and networks NEXT - GEN INSIGHT AI - based enrichment and best - in - class analytics of multi - fac
Slide 23: Comprehensive Offering in Consumer Cyber Safety
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Avast + NortonLifeLock Comprehensive Offering in Consumer Cyber Safety Identity Privacy Security INDIVIDUALS & FAMILIES Identity Protection Performance & Utility Privacy & Access Connected Home Device Security Restoration & Insurance 22 F
Slide 24: Combined Customer Universe
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Combined Customer Universe 5 billion G lobal Internet U sers TOTAL USERS DIRECT CUSTOMERS TOTAL USERS 500 M+ ~40 M DIRECT CUSTOMERS Avast + NortonLifeLock Avast + NortonLifeLock 23
Slide 25: Significant Cost Synergies Opportunity
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Avast + NortonLifeLock Significant Cost Synergies Opportunity Estimated phasing of gross cost synergies 1 : On run - rate basis ~60% achieved by end of year 1 and 100% achieved
Slide 26: Enhance Customer Experience & Retention; Growth Opportunities
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Enhance Customer Experience & Retention Localized experiences & customer service differentiation Solidifying our foundation for driving double - digit revenue growth in the long - term Broader Global Reach Larger global user base & geogra
Slide 28: NortonLifeLock Update – Q1 FY23 Business Highlights
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. 27 NortonLifeLock Update – Q1 FY23 Business Highlights Source: Company filings. Note: Dollars in USD millions. All numbers presented are non - GAAP unless otherwise indicated. Amounts may not add due to rounding. See appendix for reconcil
Slide 29: NortonLifeLock Standalone Historical Financials
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. $89 $6 $6 $7 FY20A FY21A FY22A LTM 28 NortonLifeLock Standalone Historical Financials Source: Company filings. Note: Results presented are continuing operations and excludes enterprise dedicated revenues and costs. Periods FY21, FY22, and
Slide 30: NortonLifeLock – KPIs
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. 29 NortonLifeLock – KPIs Notes : Periods FY21, FY22, and Q1 FY23 end April 2, 2021, April 1, 2022, and July 1, 2022 respectively . 1. Bookings are defined as customer orders received that are expected to generate net revenues in the futur
Slide 31: Avast Update – Recent Business Highlights
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. $471 $472 H1 FY21 H1 FY22 30 Avast Update – Recent Business Highlights Source: Company filings. Note: Dollars in USD millions. Avast’s fiscal year is the calendar year. H1 represents 6 - month period ending June 30. 1) Organic growth rate
Slide 32: Avast historical financials
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. 31 Notes : Avast’s fiscal year is the calendar year. LTM represents the last twelve months ending in June 30, 2022. 1. Adjusted Revenue represents Avast Group’s revenue adjusted for the Deferred Revenue Haircut Reversal and the Gross - Up
Slide 33: Avast – KPIs
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Avast – KPIs Notes: Avast’s fiscal year is the calendar year. H1 FY22 represents 6 - month period ending June 30, 2022. 1. Organic growth rate excludes the impact of foreign exchange rates, acquisitions, business disposals, and Discontinu
Slide 34: Long-Term Capital Allocation
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. • Return 100% of FCF (excl. M&A) over the long - term • Maintain current quarterly dividend of $0.125 per share • Increasing current share repurchase program of ~$1.8B to up to ~$4.8B depending on Avast shareholders' elections ~$ 1.5B Ann
Slide 35: Leverage and Liquidity
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Leverage ▪ NortonLifeLock expects to de - lever on a combined basis post - Closing of the Merger ▪ The Combined Company expects strong free cash flow generation to support net leverage of approximately 2.0x to 3.0x over the long - term, s
Slide 36: Avast + NortonLifeLock Pro Forma Financial Profile
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Avast + NortonLifeLock Pro Forma Financial Profile 35 Source: Company filings. Note: Dollars in USD millions. Amounts may not add due to rounding . Pro Forma financials are for the LTM periods ending 7/1/22 and 6/30/22 for NortonLifeLock
Slide 38: NortonLifeLock - Reconciliation of Reported EBITDA and Free Cash Flow
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Source: Company filings. Note: Dollars in USD millions. Amounts may not add due to rounding. Periods FY21, FY22, and Q1 FY23 end April 2, 2021, April 1, 2022, and July 1, 2022 respectively. LTM represents the last twelve months ending in
Slide 39: Avast - Reconciliation of Billings, Adjusted Revenue and Adjusted EBITDA
Avast - Reconciliation of Billings, Adjusted Revenue and Adjusted EBITDA 38 FY19 FY20 FY21 LTM H1 FY22 Revenue $871 $893 $941 $940 $470 Net deferral of revenue 40 29 7 9 13 Billings $911 $922 $948 $949 $484 Revenue $871 $893 $941 $940 $470 Deferred Revenue Haircut Reversal (1) 2 - - 2 2 Gross-Up Adj
Slide 40: Avast - Reconciliation of CFO to Levered Free Cash Flow
Copyright © 2022 NortonLifeLock + Avast. All rights reserved. Avast - Reconciliation of CFO to Levered Free Cash Flow 39 FY19 FY20 FY21 LTM H1 FY22 Net cash flows from operating activities $399 $457 $469 $403 $191 Adjustments: FX gains/losses and other non-cash items 6 (2) (4) (6) 0 Employer's costs
Slide 41: Pro forma financials notes and adjustments
Source: Company filings. Note: Dollars in USD millions. Amounts may not add due to rounding. Pro Forma financials are for the LTM periods ending 7/1/22 and 6/30/22 for NortonLifeLock and Avast respectively (the latest aud ited periods). 1) Under GAAP, NortonLifeLock’s policy is to recognize the cost

NortonLifeLock — Debt Investor Presentation (September 2022) on 6ix

Gen Digital — NortonLifeLock — Debt Investor Presentation (September 2022)

Slide 1: Investor Presentation

Slide 2: Forward-Looking Statements

Slide 3: No Offer or Solicitation

Slide 4: Offering Memorandum (continued); Use of Non-GAAP Financial Information

Slide 5: Publication on website; Quantified Financial Benefits Statement

Slide 6: One-off costs

Slide 7: Bases of belief and principal assumptions (continued)

Slide 8: Notes

Slide 9: Today's Presenters

Slide 10: Agenda

Slide 11: Transaction Overview

Slide 12: Proposed Merger and financing summary

Slide 13: Refinancing Sources & Uses and Pro Forma Capitalization

Slide 14: Senior Unsecured Notes

Slide 15: NortonLifeLock + Avast Overview

Slide 16: Key Credit Highlights

Slide 17: Brought Together with a Common Vision

Slide 18: NortonLifeLock at a Glance

Slide 19: Avast at a Glance

Slide 20: Cyber Safety still significantly underpenetrated

Slide 21: The Problem: Cyber Criminality

Slide 22: A Differentiated Approach

Slide 23: Comprehensive Offering in Consumer Cyber Safety

Slide 24: Combined Customer Universe

Slide 25: Significant Cost Synergies Opportunity

Slide 26: Enhance Customer Experience & Retention; Growth Opportunities

Slide 27: Financial Overview

Slide 28: NortonLifeLock Update – Q1 FY23 Business Highlights

Slide 29: NortonLifeLock Standalone Historical Financials

Slide 30: NortonLifeLock – KPIs

Slide 31: Avast Update – Recent Business Highlights

Slide 32: Avast historical financials

Slide 33: Avast – KPIs

Slide 34: Long-Term Capital Allocation

Slide 35: Leverage and Liquidity

Slide 36: Avast + NortonLifeLock Pro Forma Financial Profile

Slide 37: Appendix

Slide 38: NortonLifeLock - Reconciliation of Reported EBITDA and Free Cash Flow

Slide 39: Avast - Reconciliation of Billings, Adjusted Revenue and Adjusted EBITDA

Slide 40: Avast - Reconciliation of CFO to Levered Free Cash Flow

Slide 41: Pro forma financials notes and adjustments

Slide 42: reserved. +