F5, Inc. · NASDAQ:FFIV
F5 — F5 Networks — ESG Presentation (March 2021)
28 slides from F5's sustainability presentation, Mar 3, 2021
Slide 1: Investor Presentation: Environment, Social and Governance (ESG)
® Investor Presentation: Environment, Social and Governance (ESG) MARCH 2021
Slide 2: Forward-looking statements
Forward-looking statements This presentation and associated commentary contains forward-looking statements including, among other things, statements regarding the continuing strength and momentum of F5's business, past and future financial performance including revenue, operating targets, earings an
Slide 3: GAAP to non-GAAP presentation
GAAP to non-GAAP presentation In addition to financial information prepared in accordance with U.S. GAAP, this presentation also contains adjusted financial measures that we believe provide investors and management with supplemental information relating to operating performance and trends that facil
Slide 4: Agenda
Agenda STRATEGY Transforming to meet new expectations for extraordinary digital experiences GOVERNANCE Thoughtful oversight creating value for all stakeholders HUMAN CAPITAL & SUSTAINABILITY Creating an engaged, dynamic and supportive workplace 2021 FS
Slide 5: F5 is the leading multi-cloud application security and delivery provider
F5 is the leading multi-cloud application security and delivery provider $2.4B FY20 revenue 85% FY20 non-GAAP* gross margin 7%-8% cacR Horizon 2 (FY21-FY22) revenue growth 18K Customers ~6,160 Employees as of Q121 43 Countries served Top 3 Application security player 9.5 Customer satisfaction rating
Slide 6: Transforming to meet new expectations for extraordinary digital experiences
ransformin to meet new expectations for extraordinary digital experiences
Slide 7: We have purposely transformed the business to meet changing customer expectations
We have purposely transformed the business to meet changing customer expectations ict roa rah (Coen) oO Cy 1996 — 2004 2005 — 2015 The Next Evolution @) Oo oO Enable companies Enable companies to Enable companies to to scale websites scale and secure scale, secure and with load balancing mission-cri
Slide 8: Apps use multiple networks, public clouds, and edges
Apps use multiple networks, public clouds, and edges, but...they are manually stitched together with great pain PUBLIC CLOUD Modern apps rN] NGINX EDGES (CLOUD, CDN) “| eo DEVICES & CLIENTS APP Locic APP Losic Me DATA CENTERS CDNs i Traditional apps m— fs ® BGP ( [ape] Q >{ [er] (8) sontoce CONTENT
Slide 9: F5's vision for Adaptive Applications addresses the untenable state of applications
F5’s vision for Adaptive Applications addresses the untenable state of applications We see aworld where our customers’ app portfolios automatically adapt when needed An adaptive application automates redundant processes for greater efficiencies It protects itself, securing all points of vulnerabilit
Slide 10: Strategic acquisitions have expanded our reach and role
Strategic acquisitions have expanded our reach and role and enhanced delivery of our Adaptive Applications vision Reach Automates app distribution across data center, cloud & edge Simplify traditional app delivery for multi-cloud environments Accelerates new API- driven app experiences Modern apps E
Slide 11: We have a clear focus on what will define our success
We have a clear focus on what will define our success i Software Transformation Software Subscription Operating Discipline Software contributes the majority Software subscription is 80%+ of Operating model is balanced by our of product revenue software revenue guiding principle of the “Rule of 40” (
Slide 12: Our position, strategy and execution is poised to deliver value to shareholders
Our position, strategy and execution is poised to deliver compelling value to shareholders Horizon 2 Long-Term Targets FY20A* (FY21-22) (circa 2025) Software growth 52% 35% to 40% CAGR >20% Software % of product revenue 35% >50% >75% Systems growth -10% High-to-mid single-digit decline — High-to-mid
Slide 13: Thoughtful oversight creating value for all stakeholders
~ Thoughtful oversight creating value for all stakeholders
Slide 14: We have a highly qualified board committed to adding strong new voices
We have a highly qualified board committed to adding strong new voices through transformation Independence & Diversity Skills & Experience Security 0 to 4 years 6 6 of 10 diverse Capital markets 5 to 9 years 3 3 of 10 female M8&A/Integration 10+ years 1 9 of 10 independent Leadership Global Software
Slide 15: We are committed to strong governance that creates long-term value
We are committed to strong governance that creates long-term value for shareholders Strong Governance Policies Commitment to Investors ¢ Declassified board, elected annually Engagement ¢ Majority voting for all directors e Regular outreach to shareholders on ¢ Share ownership guidelines for executiv
Slide 16: We emphasize pay for performance for executives
We emphasize pay for performance for executives We align executive compensation with F5’s business objectives, performance, and shareholder value creation e We provide a competitive total compensation package that enables F5 to attract, motivate, reward and retain executive officers who contribute t
Slide 17: Our compensation policies and practices are linked to shareholder value creation
6 Our compensation policies and practices are linked to shareholder value creation and risk mitigation Pay for Performance - If thresholds are not met payout for the performance is zero. Independent compensation consultant — The Compensation Committee retains an independent compensation consulting f
Slide 18: Creating an engaged, dynamic and supportive workplace
“GF ating 2 an n engaged, rics and supportive workplace Sen eS area
Slide 19: We are creating an engaged, dynamic and supportive workplace
We are creating an engaged, dynamic and supportive workplace Listening, Engaging and Learning from Employees * Conduct regular employee engagement surveys. In FY2020, we surveyed employees 4x. * Year-over-year improvement in all categories including 91% favorability on “Proud to work for F5” in FY20
Slide 20: Our BeF5 and LeadF5 frameworks are core to F5
Our BeF5 and LeadF5 frameworks are core to F5 We are owners. First and foremost, we do the right thing. We create a more diverse and inclusive F5. We make FS more agile. We help each other thrive. We obsess over customer needs. We create clarity and alignment. At F5, we view leadership as a mindset,
Slide 21: We are enhancing the role we play in our communities and toward a sustainable future
We are enhancing the role we play in our communities and toward a sustainable future Environmental & Sustainability + Participate in CDP climate change disclosures on Scope 1 & 2. + All F5 hardware production locations are members of Responsible Business Alliance (RBA) and ISO 14001 certified. + Cre
Slide 22: Appendix
Slide 23: F5 Board members standing for election
Francois Locoh-Donou F5 President, CEO and Director (since 2017) Director, Capital One Financial Corp. (2019 Co-founder & Chairman, Cajou Espoir Former COO at Ciena (November 2015 — March 2017) 15-year tenure at Ciena with progressively senior role: Al Higginson Former Chairman, Hubspan (2009 + 5 Di
Slide 24: F5 Board members standing for election
F5 Board members standing for election Peter Klein Former CFO, ft Corporation (2009 — 20 Chief Financial Officer, HP, Inc. (2021 — present) or 2015 F5 Director since 2019 Director, Denali Therapeutics (2018 — present) Former Interim Chief Financial Officer and Chief Trans Director, Accolade (2019 —
Slide 25: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation 2021 FS Gross Profit Reconci ($ in thousands) GAAP revenue Acquisition-related write-downs of assumed deferred revenue Non-GAAP revenue GAAP gross profit Stock-based compensation Amortization of purchased intangible assets Facility-exit costs Acquisition-related charg
Slide 26: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation aoot Fs Income from Operations Recon ($ in thousands) GAAP operating income Total adjustments related to revenue Total adjustments related to gross profit Total adjustments related to operating expense Total adjustments related to income from operations Non-GAAP incom
Slide 27: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation “The non-GAAP adjustments, and FS’ basis for excluding them from non-GAAP financial measures are outlined below: ‘Acquisition related write-downs of assumed deferred revenue. Included in its GAAP financial statements, 5 records acquisition elated write-downs of assume
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