Gen Digital Inc. · NASDAQ:GEN
Gen Digital — Investor Day (November 2023)
82 slides from Gen Digital's investor day presentation, Nov 7, 2023
Slide 1: 1st Anniversary Investor Update
1ST ANNIVERSARY INVESTOR UPDATE Next November 7, 2023 2023 INVESTOR UPDATE
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation 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 similar expre
Slide 3: Play Video
PLAY VIDEO 2023 INVESTOR UPDATE Copyright © 2023 Gen Digital Inc. All rights reserved. 3
Slide 4: Powering Digital Freedom
We create technology solutions for people Powering Digital Freedom to take full advantage of the digital world, safely, privately, and confidently—so together, we can build a better tomorrow. Agenda Building Gen to win Vincent Pilette Product portfolio & innovation Ondrej Vlcek Customer value & fina
Slide 5: Building Gen to win
Building Gen to win Vincent Pilette Chief Executive Officer 2023 INVESTOR UPDATE Copyright © 2023 Gen Digital Inc. All rights reserved. 5
Slide 6: Consumer Cyber Safety is evolving and accelerating
Family & Social Media E-Commerce Evolving & Expanding Expanding Technology Digital Lives Digital Connected Wallet & & Data Consumer Home Remote Work Payments Cyber Safety is evolving and Dark Web Machine Learning accelerating Scam & Identity-as-a- Phishing Data Service Breaches Generative AI Behavio
Slide 7: 5B+ global internet users is the opportunity
5B+ global internet users is the opportunity And it is still significantly under-penetrated Leverage free Tailwinds products ~30% • Cybercrimes keep growing • Financial impact of breaches is increasing 5B+ • Need for data verification and privacy is on the rise • AI is accelerating cyber threats and
Slide 8: Cyber Safety adoption accelerated by Gen's innovation
Cyber Safety adoption accelerated by Gen's innovation Gen Integrated Portfolio Stack Cyber Safety TAM 2020 Emerging Solutions Low-to-Mid Single Digit CAGR Innovation designed to meet evolving threats and digital behaviors Core Markets Reputation Management $13B Manage a growing digital footprint 202
Slide 9: Consumer needs are at the center of the Cyber Safety market
Consumer needs are at the center of the Cyber Safety market Base Core Cyber Safety $16B TAM + Protect my digital life from 1 any hidden security threats +$1B TAM 2 Keep my finances safe online +$2.5B TAM Give me control of my 3 personal data +$1.5B TAM NEW! Verify the people and 4 information I inte
Slide 10: Purposeful strategy creates assets and capabilities to win
Launched GEN 2023 2022 Acquired Avast Purposeful strategy creates Re-branded Launched cross-sells assets and 2021 capabilities to Acquired Avira win in consumer Cyber Safety 2020 Set up NLOK Launched Norton 360 Sold Symantec Enterprise 2019 Market leadership 2023 INVESTOR UPDATE Copyright © 2023 Gen
Slide 11: Well positioned in a dynamic competitive landscape
Well positioned in a dynamic competitive landscape Traditional Big Financial, risk & competitors technology data management Start-ups Industry Native Security Identity Privacy All-in-One For illustration only, based on Gen’s assessment. 2023 INVESTOR UPDATE Copyright © 2023 Gen Digital Inc. All righ
Slide 12: Diversified business structure drives value
Diversified business structure drives value Not dependent on any single factor Technology Portfolio Customers Brands & Channels Business Model ✓ Scale & data ✓ Multi-category ✓ Over 150 countries ✓ Multi brands ✓ Freemium ✓ Global threat detection ✓ Modular ✓ Nearly 500M users ✓ Direct ✓ Acquisition
Slide 13: Scaled footprint enhances opportunities
Scaled footprint enhances opportunities Large, healthy and growing customer base Today Healthy HEALTHY ~500M Balance of new and retained TOTAL USERS (free + paid customers) Diverse segments & geographies Post-Divestiture ~65M PAID CUSTOMERS Strong satisfaction and loyalty ~50M PAID CUSTOMERS 39M DIR
Slide 14: Predictability and resilience supported by growing CLV
Predictability and resilience supported by growing CLV Levers for increasing Customer Lifetime Value (CLV) Growing customer acquisition… … cross-sell products …up-sell memberships ...leading to industry- towards Cyber Safety for peace of mind benchmark retention ~20% ~35% 2+ Products 75-85% ~30% Ret
Slide 15: Strategy and execution delivered strong results
Strategy and execution delivered strong results FY20-24 Non-GAAP Financial Performance Key Focus Areas (Mid-single digit ~10% organic growth) CAGR $3.8B $3.3B • Lead consumer Cyber Safety transformation $2.6B $2.8B $2.5B • Innovate and integrate product portfolio 20%+ CAGR • Drive customer count and
Slide 16: Gen's winning foundation
Leading the evolution of Consumer Cyber Safety Diversifying across all business dimensions Gen’s winning Driving a predictable and resilient business model foundation Delivering great economics and financials Operating with discipline and meeting commitments 2023 INVESTOR UPDATE Copyright © 2023 Gen
Slide 17: Next 3 years financial outlook
Gen’s innovation will drive the next generation of consumer Cyber Safety Next 3 years financial outlook Revenue growth of mid-single digits Market position, strategy Non-GAAP EPS growth of 12 – 15% and operational execution support financial targets De-lever below 3x Net Leverage by FY27 Fiscal Year
Slide 18: Sustainable growth through product innovation; Unlocking customer value; Financials
Sustainable growth through product innovation • Gen portfolio and the evolution of the threat landscape • Opportunities and risks from Artificial Intelligence Ondrej Vlcek • Gen’s current and future product portfolio President Unlocking customer value • Drivers for sustainable mid-single digit organ
Slide 19: Sustainable growth through product innovation
Sustainable growth through product innovation Ondrej Vlcek President 2023 INVESTOR UPDATE Copyright © 2023 Gen Digital Inc. All rights reserved. 19
Slide 20: Gen is a Cyber Safety technology powerhouse
Gen is a Cyber Safety Gen R&D technology powerhouse • 1,500+ global professionals Assembled the most comprehensive, most experienced technology and product across three continents teams in the industry to tackle Cyber Safety challenges of today and in the future • 1,000+ global patents Accelerated i
Slide 21: Rich product portfolio based on a common stack
Rich product portfolio based on a common stack Norton 360 Reputation Management Personal Privacy Identity Protection Integrated tech stack Avast One Data & Cloud Protection Security & Performance 2023 INVESTOR UPDATE Copyright © 2023 Gen Digital Inc. All rights reserved. 21
Slide 22: Cyber Safety is more important than ever for consumers
Cyber Safety is more important than ever for consumers Consumer dependency on tech is all time high… …and people are increasingly worried Americans' Top 2 worries are their Cyber Safety* 1. Having your personal, credit card or financial information stolen by hackers 75% 65% 2. Being the victim of id
Slide 23: The threat landscape has been compounding
Scam Wave • Ubiquity of social media • Wide availability of PII data • Covid and other newsworthy events 💥 Vishing 💥 Smishing Dark Web Wave • Emergence of the dark web 💥 Crypto scams The threat • Bitcoin and cryptocurrencies • Hoarding of personal data 💥 Spearphishing 💥 PII data breaches…
Slide 24: Gen's trusted solutions have a long history in protecting customers
Scam Wave • Ubiquity of social media • Wide availability of PII data • Covid and other newsworthy events Reputation 💥 Vishing Management 💥 Smishing Dark Web Wave Gen’s trusted • Emergence of the dark web Personal • Bitcoin and cryptocurrencies • Hoarding of personal Privacy 💥 Spearphishing 💥…
Slide 25: Artificial intelligence generates a new wave of threats
AI Wave • Introduces new types of attacks • Makes existing attack types more dangerous Emerging AI threats include • Automates large-scale attacks at low cost → Scale, speed, and accuracy challenges AI-powered credential theft Example: PassGAN Exploiting AI & quantum 💥 AI-powered password cracking…
Slide 26: Gen is the leader in AI for consumer Cyber Safety
Gen is the leader in AI for consumer Cyber Safety Proven track record of leveraging AI in our award-winning products and technologies Market-Leading Bespoke AI Systems Dedicated Team Endpoint Visibility and Infrastructure of AI Specialists Unprecedented access to threat and 37 specialized AI systems
Slide 27: HMIL: Our foundational AI technology
HMIL: Our foundational AI technology Hierarchical Multi-Instance Learning (HMIL) Universal deep learning technology Used in… ✓ Core security engine Applicable across various subject matters ✓ Content analytics for phishing and scam protection ✓ Anomaly detection in LifeLock transaction monitoring Wo
Slide 28: TSC-LLM: Our proprietary LLM for scam detection
TSC-LLM: Our proprietary LLM for scam detection Text Scam Classifier – Large Language Model Norton Genie Gen Threat Intel Gen AI Engines Gen Infrastructure + CONVERSATIONAL UI + THIRD-PARTY LLMS 2023 INVESTOR UPDATE Copyright © 2023 Gen Digital Inc. All rights reserved. 28
Slide 29: Upcoming: AI-based online reputation analysis
Upcoming: AI-based online reputation analysis Real-time results Sentiment AI ✓ Leveraging first-party insights from 15+ Online Content Sentiment Analysis Fine-Tuned years of ReputationDefender cases Web Service Emotional Score Sentiment AI Model Topic Classification ✓ Combining Emotional Score and T
Slide 30: Gen's product strategy is anchored in consumer needs
Gen’s product strategy is anchored in consumer needs Consumer needs Consumer Trends Threat Landscape Protect my digital life Desire to simplify on-the-go Three waves of threats 1 from any security threats and increasingly complex compounding each other digital life Keep my finances 2 + AI wave now b
Slide 31: Protect my digital life from security threats
1 “Protect my digital life from security threats” NextGen Expanded ⟶ Safeguard against Includes scam & phishing protection, social AI-generated attacks Core media takeover protection, and device across all connected optimization devices and the cloud Security protection powered by award winning anti
Slide 32: Keep my finances safe online
2 “Keep my finances safe online” NextGen Expanded ⟶ Safe and secure digital Includes dark web monitoring, home title payments Core protection, cyber insurance, and identity offerings outside of the US ⟶ Secure online vault Identity protection with the #1 most recognized brand in identity theft prote
Slide 33: Give me control of my personal data
3 “Give me control of my personal data” NextGen Expanded ⟶ Digital footprint tracking Includes anti-tracking, online PII hunting & and remediation Core removal, and private browsing ⟶ Proactive and personalized privacy Privacy protection through VPN and safe browsing & search management ⟶ AI-based r
Slide 34: Verify the people and information I interact with online
4 “Verify the people and information I interact with online” NEW! NextGen Today in beta ⟶ Deepfake management ⟶ Digital identity & verifiable credentials ⟶ Secure, verified, trusted data exchange Norton Genie, Norton + AI Midy Paving the way for next-gen cybersecurity Identity verification made easi
Slide 35: Verify the people and information I interact with online
4 “Verify the people and information I interact with online” NEW! Norton Genie NextGen Today (in beta) ⟶ Deepfake management Gen Threat Intel ⟶ Digital identity & Gen AI Engines Gen Infrastructure verifiable credentials ⟶ Secure, verified, trusted + CONVERSATIONAL UI data exchange + THIRD-PARTY LLMS
Slide 36: Our AI-enhanced roadmap for personalized Cyber Safety
Our AI-enhanced roadmap for personalized Cyber Safety • Disciplined approach to delivery of new products and features • Increasing customer value with every update • Strong focus on customer satisfaction AI-driven bias protection Personalized deepfake & misinformation Digital footprint management &
Slide 37: Products and solutions delivered based on customer choice
Products and solutions delivered based on customer choice Point Solutions Membership Plans Growth driver: Cross-sell Growth driver: Upsell • Buy only what you need • Higher engagement across features • Solve for a specific need, when you need it • Integrated, intuitive customer experience • Add on t
Slide 38: Our solutions extend to self-employed and very small businesses
Our solutions extend to self-employed and very small businesses Why Gen wins 20% ✓ Leading global consumer Cyber Safety solutions Small businesses don’t have any endpoint ✓ Trust & reputation management protection in place capabilities in place ✓ Additional technology building 86% blocks in place to
Slide 39: Always differentiated with superior customer experience
And are always differentiated with superior customer experience TRADITIONAL Integrated Platform ✓ Fully integrated, simple to use Separate apps, multiple downloads Mobile Optimized ✓ Multi-platform, mobile-first PC-focused Adaptable Entry Doors ✓ Focus on greatest customer needs Numerous entry doors
Slide 40: The result: NextGen Cyber Safety for everyone
The result: NextGen Cyber Safety for everyone Trusted Always On Personalized Empowering Gen is enabling people to make the most of the digital world — safely, privately and confidently 2023 INVESTOR UPDATE Copyright © 2023 Gen Digital Inc. All rights reserved. 40
Slide 41: Play Video
PLAY VIDEO 2023 INVESTOR UPDATE
Slide 42: Sustainable growth through product innovation
AI is making the market even more relevant We are investing in technology and Sustainable growth innovation through product innovation 1 Proven AI expertise We are best 2 World-class UX capabilities positioned to win 3 Scalable infrastructure 4 Global customer reach 2023 INVESTOR UPDATE Copyright ©
Slide 43: Unlocking customer value
Unlocking customer value Natalie Derse Chief Financial Officer 2023 INVESTOR UPDATE Copyright © 2023 Gen Digital Inc. All rights reserved. 43
Slide 44: Delivering customer value at every stage of their journey
Reach Grow Retain New customers Sustainable ARPU Valued engagement Omnichannel Device presence Security Marketing Brand mix & channel trust & effectiveness awareness Delivering customer value Customer Expanding at every stage of experience & engagement portfolio & services their journey Lifecycle &
Slide 45: Building a healthy direct customer base
Gross Adds Building a healthy direct customer base Existing Customers M&A Re-igniting growth Scaling the customer base Reaching new heights from 20M to 24M as NortonLifeLock 39M Gen customers and growing Increased marketing Sustained high retention rates Gross adds return to growth investment and la
Slide 46: Pulling all levers to drive growth
Pulling all levers to drive growth Gen Large Customer Base Our Playbook Geographic expansion ~500M TOTAL USERS Channel diversification Marketing re-calibration ~65M PAID CUSTOMERS Product portfolio innovation 39M Optimized customer journey DIRECT 14M+ MEMBERS Retention best practices Service & suppo
Slide 47: Reaching customers everywhere
Reaching customers everywhere… REACH Direct-to-Consumer Partners Premium: Web Store Employee Benefits Organic, performance marketing Identity protection plans Premium: Mobile Platform shift ~500M Retail / eTail Cyber Safety membership Total users Freemium: Security Telcos Feeds funnel to paid ~65M I
Slide 48: Expanding with tremendous global opportunity
...and expanding with tremendous REACH global opportunity North America Europe Japan family of trusted brands South America Africa, Middle East India / Southeast Asia Australia / New Zealand Business Distribution Cyber Safety Model Channel Adoption Freemium Direct-to-Consumer Security Strong presenc
Slide 49: Leveraging partnerships to further extend reach
Leveraging partnerships to further extend reach REACH Employee • Cyber Safety as a digital benefit benefits • Shift from voluntary benefit to employer paid STRATEGY: Mobilize to where the customers are, Strategic • Financial services, insurance providers expansion through partnerships • Mobile carri
Slide 50: Accelerating growth employing our core capabilities
Accelerating growth employing our core capabilities GROW Omnichannel Large Scale Users engagement In-product messaging Predictive customer engagement models with In-product discovery Scaled data and personalization Text / email communication technology enables user monetization Cross-Sell Upsell + P
Slide 51: Cross-selling products towards Cyber Safety
Cross-selling products towards Cyber Safety GROW Cross-sell penetration in Increasing purchase propensity TARGET 40% • AI-recommended contextual moments of truth 30% • Proprietary machine learning models • Personalized experiences optimize conversion & TODAY monetization 3x 15% Growing opportunity F
Slide 52: Upselling to memberships for peace of mind
Upselling to memberships for peace of mind GROW Upsell path for Security customers 50%+ 3-5x ENTRY of customers ASP Free or Paid today ~500M 2x Total users ASP $50 • Higher engagement, higher CSAT, DTC ASP higher retention & CLV + partner-led • Gen membership adoption approaching 40% in Year 1, with
Slide 53: Driving long-lasting customer relationships
Driving long-lasting customer relationships RETAIN Customer retention rate (unit) Onboarding experience & 1st year engagement LIFELOC K90% 80% +2pt AI-driven behavioral Customer services segmentation and support in 1Y 70% Mobile Data driven Surprise, delight, Channel moment of truth reward programs
Slide 54: Executing strategy delivers meaningful value
Executing strategy delivers meaningful value 5 levers for ~5pts of growth 3Y cumulative rev (Potential path) 1. Acquire new cust. MSD CAGR ~$130M 2. Partner scale & expand to half $B (HSD) +$100M 3. Cross-Sell penetration +5 pts / yr +$160M 4. Upsell 10 pt incr. memberships +$150M 5. Retain from 77%
Slide 55: Operating with discipline, driving profitable growth
Opportunities & Economics Markets Mature Mature Developed Developed Emerging Emerging Operating with Distribution discipline, driving profitable growth, Opportunity balancing investments Expected Growth Low Single Mid Single Double across markets Digits Digits Digits Annual ARPU $135 $70 $35 Retenti
Slide 56: Financials
Financials Natalie Derse Chief Financial Officer 2023 INVESTOR UPDATE Copyright © 2023 Gen Digital Inc. All rights reserved. 56
Slide 57: Delivering growth and shareholder value at scale
Delivering growth and shareholder value at scale Non-GAAP Non-GAAP Non-GAAP Revenue ~10% CAGR Op. Income 25%+ CAGR EPS 20%+ CAGR $3.8B $2B+ $1.95 - $2.00 $2.5B $0.9B $0.90 FY20 FY24E FY20 FY24E FY20 FY24E Mid-single digit organic growth + M&A Best-in-class operating margin Strong earnings growth Dem
Slide 58: Commitment focused culture
Commitment focused culture What We Said Where We Stand Integration & cost synergies: $280M in 2Y Achieved: in 1Y, increased to $300M+ One-off costs to achieve: $280M Achieved: reduced to $150M (75% cash) Revenue synergies: $200M potential Scaling: Avast retention, cross-sells Portfolio integration t
Slide 59: Creating and capturing value
Creating and capturing value ~$70M bookings run-rate synergies achieved $280M annual gross cost synergies achieved (~35% completed in Y1) (increased to $300M+ for Y2) Larger install base Scalable cost structure % of At Close Today Scaling Revenue Q2 FY23 (1) Q2 FY24 Cross-Sell COGS 13% 13% Avast Ret
Slide 60: Expanding Non-GAAP EPS through strong execution of our plan
Expanding Non-GAAP EPS through strong execution of our plan $0.40 ($0.20) ~$2.80 ($0.50) Our earnings power is $0.65 stronger Avast share ($0.20) Last $300M+ issuance & debt $0.50 Annual (net of capital Investor Run-Rate alloc) Higher Other Excluding macro headwinds, Day Interest Rates Macro Headwin
Slide 61: Scale and healthy cash generation support leverage
Scale and healthy cash generation support leverage (All financial metrics presented are non-GAAP) Supported Healthy by healthy cash Commitment to EBITDA-to- cash generation generation debt paydown interest ratio uFCF growing with EBITDA Net Leverage of 3.8x (1) 3.4x today and increasing (2) $10.2B N
Slide 62: Deploying capital to maximize shareholder value
Deploying capital to maximize shareholder value Capital deployment Cash priorities & net debt • Sufficient cash for daily operations • Net Leverage of <3x by FY27 • Target 100% of free cash flow returned Debt • De-lever to <3x Net Leverage • Quarterly debt paydown Covenant EBITDA Net Debt Share • An
Slide 63: Leveraging efficient business model as we scale topline
Leveraging efficient business model as we scale topline Organic revenue growth Emerging mid-single digits Upside Optimize the core • Run at 60%+ operating margin (non-GAAP) • Optimize business operations Strong incremental Expansion Core + expansion: mid-single digit growth margins Grow Next Gen Cyb
Slide 64: Next 3 years financial outlook
Next 3 years Organic Revenue Growth Mid-single digits Financial Sustainable and balanced Outlook Non-GAAP EPS 12-15% Assumptions: Growth • Revenue ramping into sustainable mid-single digit Operating leverage & capital structure growth in constant currency • Operating up to 60%+ margin (non-GAAP), ba
Slide 65: Focused on shareholder value creation
Focused on shareholder value creation Historical Today/Tomorrow Forward P/E (1) Forward P/E (2) Comp Groups 21.5x 19.0x (3) 13.1x 14.3x 13.0x 12.2x 8.6x FY20 FY21 FY22 Today Next 3Y Mature Consumer Software Subscription Drivers All financial metrics presented are non-GAAP Organic Growth 0% 7% 4% 4%
Slide 66: Steadfast in creating long-term shareholder value
Resilient Growth Highly Profitable Steadfast in creating long-term shareholder value Target 100% Free Cash Flow Returned 2023 INVESTOR UPDATE Copyright © 2023 Gen Digital Inc. All rights reserved. 66
Slide 67: What's next
What’s next Vincent Pilette Chief Executive Officer 2023 INVESTOR UPDATE Copyright © 2023 Gen Digital Inc. All rights reserved. 67
Slide 68: Leading the evolution of consumer Cyber Safety
Leading the evolution of consumer Cyber Safety Diversifying across all business dimensions Driving a predictable and resilient business model Delivering great economics and financials Operating with discipline and meeting commitments 2023 INVESTOR UPDATE Copyright © 2023 Gen Digital Inc. All rights
Slide 69: Working strategy supported by core competencies
Emerging Emerging Trust-Based Solutions Upside • AI-enabled applications • Future of digital identity • Seed investments Expansion Core + expansion mid-single digit growth Expanding Cyber Safety Working strategy Core Cyber Safety • • New products Personalized value supported by core Low-single digit
Slide 70: Proven momentum in existing categories
Proven momentum in existing categories CORE security EXPANDED social media takeover, anti-phishing NextGen Protect my digital ⟶ Safeguard against AI- life from any $2B+ +1 ppt orchestrated attacks security threats LSD bookings Growth per year ⟶ Proactive protection growth against scams and fraud COR
Slide 71: Proven momentum in existing categories
Proven momentum in existing categories CORE security EXPANDED social media takeover, anti-phishing NextGen Protect my digital ⟶ Safeguard against AI- life from any $2B+ +1 ppt orchestrated attacks security threats Gen Revenue Revenue growth ⟶ Proactive protection LSD Growth per year against scams an
Slide 72: Innovating and investing in new categories
Innovating and investing in new categories Norton Genie NextGen Verify people and (in beta) ⟶ Deepfake management information I Paving the way for ⟶ Identity verification interact with online next-gen Cyber Safety ⟶ Digital trust services Midy (in beta) Reusable verified identity wallet >5M > Very S
Slide 73: Next
Next AI-driven market expansion Gen capabilities unmatched Portfolio and resources driving Next Gen Cyber Safety Strong cash generation to quickly Growth at de-lever reasonable value 2023 INVESTOR UPDATE Copyright © 2023 Gen Digital Inc. All rights reserved. 73
Slide 74: Questions & Answers
Questions & Answers 2023 INVESTOR UPDATE Copyright © 2023 Gen Digital Inc. All rights reserved. 74
Slide 75: Appendix
Appendix 2023 INVESTOR UPDATE Copyright © 2023 Gen Digital Inc. All rights reserved. 75
Slide 76: Use of GAAP and Non-GAAP Financial Information
Use of GAAP and Non-GAAP Financial Information We use non-GAAP measures of operating margin, operating income, net income, results of operations, and earnings per share, which are adjusted from results based on GAAP and exclude certain expenses, gains and losses. We also provide the non-GAAP metrics
Slide 77: Explanation of Non-GAAP Measures and Other Items
Explanation of Non-GAAP Measures and Other Items Bookings: Bookings are defined as customer orders received that are expected to generate net revenues in the future. We present the operational metric of bookings because it reflects customers' demand for our products and services and to assist reader
Slide 78: Reconciliation to Non-GAAP Revenue and Operating Income
Reconciliation to Non-GAAP Revenue and Operating Income GAAP to Non-GAAP Revenue and Operating Income ($M) FY20 FY21 FY22 FY23 Q2 FY24 Net revenues (GAAP) $2,490 $2,551 $2,796 $3,338 $948 Contract liabilities fair value adjustment - 5 11 2 - Revenue from ID Analytics (46) - - - - Net revenues (Non-G
Slide 79: Reconciliation to Non-GAAP EPS and Net Income
Reconciliation to Non-GAAP EPS and Net Income GAAP to Non-GAAP EPS and Net Income (1) FY20 FY21 FY22 FY23 ($M), except per share amounts EPS Net Income EPS Net Income EPS Net Income EPS Net Income GAAP EPS / Net Income $6.05 $3,887 $0.92 $554 $1.41 $836 $2.16 $1,349 GAAP EPS / Net Income from Disc O
Slide 80: Reconciliation to Debt Covenant EBITDA (Non-GAAP)
Reconciliation to Debt Covenant EBITDA (Non-GAAP) Debt Covenant EBITDA (Non-GAAP) (1) ($M) LTM Q2FY24(3) Net income $1,435 Adjustments: • Net interest expense 643 • Income tax expense (benefit) (992) • Depreciation and amortization 501 EBITDA (Non-GAAP) 1,587 Adjustments to EBITDA: • Contract liabil
Slide 81: Reconciliation to Non-GAAP Consolidated Unlevered Free Cash Flow
Reconciliation to Non-GAAP Consolidated Unlevered Free Cash Flow Unlevered Free Cash Flow Reconciliation ($M) LTM Q1FY23(2) Net Cash Flow from Operating Activities $931 Adjustments: • Capital Expenditures (7) Free Cash Flow $924 Adjustments: • Cash paid for interest expense, net of interest rate hed
Slide 82: Thank you
Thank you 2023 INVESTOR UPDATE Copyright © 2023 Gen Digital Inc. All rights reserved. 82