Gen Digital Inc. · NASDAQ:GEN
Gen Digital — Symantec — Merger or Acquisition (December 2004)
22 slides from Gen Digital's merger presentation, Dec 16, 2004
Slide 1: Merger Announcement
Merger Announcement
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation contains forward-looking statements, including forecasts of market growth, future revenue, benefits of the proposed merger, and expectations that the merger will be accretive to Symantec's results and other matters that involve known and unknown risks, unc
Slide 3: Where to Find Additional Information
Where to Find Additional Information Symantec Corporation and VERITAS Software Corporation intend to file a registration statement on Form S-4 containing a joint proxy statement/prospectus in connection with the merger transaction involving Symantec and VERITAS. Investors and security holders are ur
Slide 4: Corporate Vision: Information Integrity
Corporate Vision: Information Integrity Vision Understand Act Control Information Integrity Leading Provider of Security Software Leading Provider of Storage Software + =
Slide 5: Strategic Rationale
Addresses customers' desire to reduce the complexity of their IT infrastructure and consolidate suppliers Broadens product portfolio across heterogeneous platforms and across all tiers of the IT infrastructure Significantly expands total market opportunity from $35 billion to $56 billion in 2007, ac
Slide 6: Symantec Enterprise Vision: Information Integrity
Symantec Enterprise Vision Information Integrity Security Availability Customers
Slide 7: Chief Information Officer: Today's Challenges
Chief Information Officer: Today's Challenges Customers Reduce Risk in Managing Information Security Availability Reduce Complexity Heterogeneous environment Number of Suppliers Reduce Costs Hardware Labor
Slide 8: Symantec & VERITAS Address CIO Challenges
Reduce Risk in Managing Information Security Availability Reduce Complexity Heterogeneity Fewer Suppliers Reduce Costs Hardware Labor Symantec & VERITAS Address CIO Challenges Products Storage and Server Virtualization Storage and Server Management Backup, Archiving, Replication, Clustering, Perform
Slide 9: Expanding Market Opportunity - 12% CAGR
1) Source: IDC, 2004. 2) Security Services includes data for U.S. Consulting, Management Services and Education and Training market segments. 3) DBMS Management Software includes data for Data Movement and Replication and Data Management Facilities market segments. Expanding Market Opportunity - 12%
Slide 10: Fastest Growing Software Company Over $3 Billion
Fastest Growing Software Company Over $3 Billion Symantec/VERITAS SAP Microsoft Oracle/Peoplesoft 18 10 7 7 7% 7% 10% 18% Year-Over-Year Estimated Growth Rates Source: IBES Median Revenue and Company Estimates Leadership
Slide 11: Category Leader
Symantec/VERITAS CA BMC 5 4 2 Category Leader $2B $4B $5B Estimated Revenue - 4 Quarters ending 3/06 Leadership Source: Forward IBES Median Revenue and Company Estimates
Slide 12: Technology Leadership
Technology Leadership VRTS EMC HP NetApp HDS Other storage mgmt 31.4 24.2 15.1 5.3 3.3 20.6 VRTS IBM CA EMC-LGTO HP Other backup & recovery 36.6 22.2 10.8 6.9 4.7 18.8 VRTS EMC IBM CA HP Other East 26.1 20.9 14.2 7.4 4.8 4.6 Storage Software Backup & Recovery Storage Management SYMC ISS BINDVIEW NET
Slide 13: Opportunities
Opportunities Distribution Consumer and Small Medium Enterprise Leverage Symantec brand presence in the channel Enterprises Leverage VERITAS' account presence in Fortune 500 Products Resilient Infrastructure Threat detection through improved application service levels Email Management Spam filtering
Slide 14: Transaction Summary and Financials
Transaction Summary and Financials
Slide 15: Transaction Summary
Approximately $13.5 billion All stock transaction Fixed exchange ratio of 1.1242 shares of Symantec for each VERITAS share Symantec shareholders will own approx. 60% of the combined company VERITAS shareholders will own approx. 40% of the combined company Deal announced on December 16, 2004 The tran
Slide 16: Transaction Summary continued
The combined company will maintain the Symantec name Continue to trade on NASDAQ under the ticker "SYMC" John Thompson will be CEO of the combined company Gary Bloom will be responsible for sales, services and corporate development John Schwarz will be responsible for product development and enginee
Slide 17: Financial Performance: Trailing Twelve Month P&L
Financial Performance: Trailing Twelve Month P&L ending 9/30/04 Historical Financials Revenue $2,225 M $1,969 M Gross Profit $1,877 M $1,668 M Gross Margin 84.4% 84.7% Operating Income $737 M $552 M Operating Margin 33.1% 28.0% Non-GAAP Net Income* $519 M $390 M *Non-GAAP Net Income excludes expense
Slide 18: Financial Performance: Balance Sheet
Financial Performance: Balance Sheet as of 9/30/04 Historical Financials Cash $2,545 M $2,539 M Deferred Revenue $1,153 M $418 M Debt $600 M $901 M DSO 48 38 Headcount 5,873 7,423
Slide 19: Revenue Mix: Quarter ended 9/30/04
Consumer Enterprise Revenue 0.28 0.72 United States EMEA Asia / ROW Revenue 0.528 0.3075 0.164 Revenue Mix: Quarter ended 9/30/04 Historical Financials Combined Revenue by Customer Mix Combined Revenue by Geography Consumer Enterprise Asia/ROW United States EMEA
Slide 20: FY06 Guidance
FY06 Guidance Revenue expectation of $5 billion Operating expenses expected to be 55% of revenue Cost synergies of $100 million $13 million should be realized in 1Q06, increasing through the year Excluding the impact of the deferred revenue write-down, non-GAAP EPS is expected to be $0.99 Including
Slide 21: Why is this a Good Deal?
Why is this a Good Deal? 4th Largest Software Company in The World Breadth and Depth: technology leader in infrastructure management Fastest growing large software company $35B market opportunity going to $56B Broad Coverage Model Global Reach: consumer to enterprise Channel Presence: volume distrib
Slide 22: Thank You
Thank You