Netscout Systems, Inc. · NASDAQ:NTCT
Netscout Systems — Merger or Acquisition (February 2015)
27 slides from Netscout Systems's merger presentation, Feb 10, 2015
Slide 1: February 2015 Investor Presentation
February 2015 Investor Presentation NetScout Systems, Inc.
Slide 2: Additional Information and Where You Can Find It
Additional Information and Where You Can Find It NetScout’s Registration Statement on Form S-4, Proxy Statement and other documents concerning the proposed acquisition of Danaher’s Communications business have been filed with the Securities and Exchange Commission (the “SEC”). Investors are urged to
Slide 3: Safe Harbor & Non-GAAP Financial Metrics
Safe Harbor & Non-GAAP Financial Metrics Forward Looking Statements: Forward-looking statements in this communication are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of and other federal securities laws. Investors are cautioned that statements in this pr
Slide 4: NetScout Today
NetScout Today NASDAQ: NTCT Market Cap: $1.5B (as of 2/6/15) * non-GAAP • Market leader in performance management and analytics • Expertise and scale to serve two markets: Enterprise and Service Provider • 30 years of focus and experience in IP- based networks • International footprint with sales, s
Slide 5: NetScout Investment Highlights
NetScout Investment Highlights • Market leader in network and application performance management • Award-winning solutions based on proprietary software: “ASI” enabling real-time intelligence and analytics • Working with leading service provider and enterprise customers to achieve ROI and manage ris
Slide 6: Powerful Long-Term Technology Trends
Powerful Long-Term Technology Trends Requires real-time, reliable, scalable analytics and intelligence Mobility Cloud & Virtualization Cyber Security Big Data
Slide 7: Carrier Trends Driving Future Growth
Carrier Trends Driving Future Growth Service Providers: Monetize their investment and retain customers Source: Ericsson Mobility Report, May 2014
Slide 8: Enterprise Trends Driving Future Growth
Enterprise Trends Driving Future Growth Enterprises: “Uptime” and user experience with cost-effective delivery
Slide 9: nGeniusON
nGeniusON 282=@ 1
Slide 10: Revenue and EPS Performance
Revenue and EPS Performance Strong operating leverage drives EPS growth Non-GAAP, in millions except EPS Non-GAAP, in millions except EPS
Slide 11: Cumulative Free Cash Flow Generation
Cumulative Free Cash Flow Generation Non-GAAP, in millions Investing in product development while generating strong free cash flow Non-GAAP, in millions
Slide 12: Proven Track Record for Successful Integration
Proven Track Record for Successful Integration
Slide 13: NTCT Strategy: Unified Platform for SP's and Enterprise
NTCT Strategy: Unified Platform for SP’s and Enterprise Extend leadership in Performance Analytics and Operational Intelligence Increase Total Addressable Market: Cyber Intelligence, Customer Experience and Business Intelligence Expand Go-to-Market Activities: Geography coverage and product speciali
Slide 14: Acquiring DHR Communications Business Accelerates
Acquiring DHR Communications Business Accelerates … NetScout: at the heart of the major computing trends of the next decade Increased Total Addressable Market: Solutions for Cyber (Arbor), Customer Experience (Newfield Wireless), Business Intelligence, (Arantech) Expanded Go-to-Market Activities: Cr
Slide 15: Strategic Rationale for the Transaction
Go-to-Market More global and diverse Broader sales and channel presence worldwide More customers and more touch points within the customer Increased customer mindshare Best-In-Class Solutions Broader portfolio for service providers Extends reach into the mid-tier enterprise market Jump-starts our en
Slide 16: Compelling Financial Opportunity
Compelling Financial Opportunity Scale produces earnings and cash flow along with continuing revenue growth • Revenue growth - Larger and more accessible TAM - Expanded sales presence - Attractive cross-selling opportunities • Scalable infrastructure - Synergies (above and below the line) - Continue
Slide 17: Total Addressable Market and Revenue Synergies
Network Performance Management Application Performance Management Cyber Security & Intelligence Advanced Analytics (Business Intelligence) Total Addressable Market Generating 10%+ Annual Revenue SECTORS FORECAST Market Forecast Sources: IDC, 2014, see appendix for specific report citations REVENUE S
Slide 18: Generating Earnings and Cash Flow
Generating Earnings and Cash Flow Current Operating Targets Post-Acquisition 5-Year Operating Targets • Operating leverage and strong free cash flow growth: – Return non-GAAP gross margin to prior levels in the high-70% – Drive additional synergies across a range of functional areas – Continue fisca
Slide 19: Business Information Transaction Structure
Confidential Business Information Transaction Structure • Announced on October 13, 2014 • NetScout to acquire most of Danaher’s Communications business* • Structured as Reverse Morris Trust • DHR shareholders receive 62.5 million NetScout shares, valued at approximately $2.3 billion • DHR shareholde
Slide 20: Proven track record of leadership and financial strength
Proven track record of leadership and financial strength. Strategy: Continued leadership in the major computing trends over the next decade Helping our customers achieve ROI and manage risk through the operational intelligence gained from our analytics Fundamentals : Visionary leadership Cutting edg
Slide 21: NETSCOUT
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Slide 22: Appendix: Non-GAAP Measure Reconciliation
Appendix: Non-GAAP Measure Reconciliation
Slide 23: Non-GAAP Measure Reconciliation: Revenue, EPS and Free Cash Flow
Non-GAAP Measure Reconciliation: Revenue, EPS and Free Cash Flow Free Cash Flow ($ in millions) YTD Q3 FY'15 Operating Cash Flow 57.3 $ Purchase of Fixed Assets & Intangible Assets (8.8) $ Free Cash Flow 48.5 $ (in thousands, except per share data) For the Fiscal Years Ended March 31, GAAP Revenue 2
Slide 24: Non-GAAP Measure Reconciliation: NetScout and DCB Historical Information
Non-GAAP Measure Reconciliation: NetScout and DCB Historical Information 12-months 6-months 12-months 6-months 12-months 6-months FY2014 FY2015 CY2013 CY2014 FY2014 FY2015 Revenue: Product 234,268 $ 122,319 $ 623,632 $ 230,271 $ 857,900 $ 352,590 $ Service 162,379 89,132 211,259 113,032 373,638 202,
Slide 25: International Data Corporation Research
International Data Corporation Research • IDC, Worldwide Network Management Software and Appliance 2014–2018 Forecast and 2013 Vendor Shares, July 2014 • IDC, Worldwide Application Performance Management Software 2014–2018 Forecast, September 2014 • IDC, Worldwide Advanced and Predictive Analytics S
Slide 26: Supporting Slides
Supporting Slides *************** *************** *************** *************** *************** *************** *************** *************** ***************
Slide 27: NETSCOUT
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