2. Forward Looking Statements
• This presentation contains forward-looking statements regarding the financial and business
results of Symantec and MessageLabs, including statements of expectations regarding
consummation of the acquisition, projected growth for computing devices, benefits to
Symantec from combining the MessageLabs and Symantec businesses and cost savings
opportunities for the combined company. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause each company’s actual
results, levels of activity, performance or achievements to differ materially from results
expressed in or implied by this presentation, including, among others: whether the
companies can successfully develop new products and the degree to which these gain
market acceptance; the sustainability of recent growth rates, particularly in consumer
products; the anticipation of the growth of certain market segments; the positioning of the
companies’ products in those segments; the competitive environment in the software
industry; general market conditions; acquisition-related risks, particularly risks relating to
integrating the two companies; fluctuations in currency exchange rates; and changes to
operating systems and product strategy by vendors of operating systems.
• Additional information concerning these and other risk factors is contained in the Risk
Factors sections of Symantec’s Form 10-K for the year ended March 28, 2008 filed with the
Securities and Exchange Commission.
• We assume no obligation to update any forward-looking information contained in this
presentation.
2
3. Announcement Summary
• Symantec is acquiring MessageLabs, the global leader in
online services for messaging and web security
What
• Headquartered in Gloucester, UK, with over 550 employees
• Combined with MessageLabs, Symantec will be the only
company to offer customers the flexibility to manage their
Why
business using online services, onsite software, or hybrid
solutions
• MessageLabs will combine with Symantec Protection Network
Resulting
to create a new Software-as-a-Service group lead by Adrian
Organizational
Chamberlain, MessageLabs CEO reporting to Enrique Salem,
Structure
Symantec’s COO
• Leading messaging and web security SaaS offerings
• 14 worldwide data centers and significant expertise in SaaS
sales, operations, and support
What MessageLabs
Brings to • Over 19,000 clients ranging from small business to the Fortune
Symantec 500 located in more than 86 countries
• Secures more than 3 billion email connections
3
4. Strategic Rationale
• Expand market leadership in message and web security.
Combined we will have more than two times the market share
of our nearest competitor
• Geographic expansion through up-sell and cross-sell
opportunities
• Leverage SMB and large enterprise distribution channels to
increase penetration of SaaS offerings
• Together, we’re the only company with the broadest range of
software, appliance and SaaS hybrid messaging security
offerings
• Complementary capabilities will provide the opportunity for
new SaaS offerings in archiving, DLP, compliance, storage
and managed endpoints
4
7. Symantec and MessageLabs
are the Market Leaders
Worldwide Messaging Security Worldwide Hosted Service
Market Share by Vendor, 2007 Market Share by Vendor, 2007
Acquiring the market
Together, 2 times the
leader in Hosted
nearest competitor
Messaging Security
Source: IDC
7
8. MessageLabs Globally Distributed
Infrastructure with Full Redundancy
North America APAC
EMEA
Client Services Development Global Technical Support
Hong Kong Gloucester Gloucester
London Toronto New York
New York
Sydney
8
9. Industry Leading Service
Level Agreements
Web
Email
Anti-Virus Protection 100% protection against
Anti-Virus Protection 100% protection from known
known viruses
and unknown email viruses
•Credit is offered if a client infected by a virus
•Credit is offered if a client infected by a virus
Latency Average scanning time of 100% of web
Virus False Positives 0.0001% FP capture rate content is within 100 milliseconds
•Credit is offered if latency exceeds 100 milliseconds
•Credit is offered if we do not meet this commitment
Service Availability 100% uptime
Spam Capture Rate 99% capture rate (95% for •Credit is offered if availability falls below 100%
•Client may terminate if availability falls below 95%
emails containing Asian characters)
•Credit is offered if we do not meet this commitment
Archiving
Search Performance Guarantee All customer
Spam False Positives 0.0003% FP capture rate search requests will be returned within 180 seconds
•Credit is offered if we do not meet this commitment or less
Service Availability Guarantee 99.9% uptime for
Latency Average roundtrip time of 100% of email archiving network
delivered in less than 60 seconds •Client may terminate if availability falls below 90%
•Credit is offered if latency exceeds 1 minute Appliance Replacement Guarantee If appliance
fails during the warranty period, Macaw will repair or
Delivery 100% delivery guarantee replace the appliance within 3 business days at no
•Client may terminate if we do not meet this cost
Technical support / Fault Response critical - 95%
Support
Service Availability 100% uptime calls within 2hrs; major - 85% calls within 4hrs;
•Credit is offered if availability falls below 100% minor - 75% calls within 8hrs
•Client may terminate if availability falls below 95% •Credit is offered if we do not meet this commitment
9
10. MessageLabs Provides Comprehensive
SaaS Coverage for Messaging Security
Skeptic
Protect Control Secure Recover
Boundary
Anti-Virus Content Control Archiving
Email Encryption
Anti-Spam Image Control
Policy Based Continuity
Encryption
Anti-Virus URL Filtering
Web Anti-Spyware
Anti-Virus Enterprise IM
IM Anti-Spam
Comprehensive SaaS Solutions for SMB and the Fortune 500
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11. Unique Predictive Technology
• Continuous development
since late 1990s
• Robust and scalable, currently
handling 2 billion emails per
week
• Beyond virus and spam –
Malware, trojans, worms,
phishing, and other threats
• Intercepted over 2.5 billion
viruses and 150 million
phishing emails since 2000
11
12. “Protect” and “Control” Service Offerings:
Mail Filtering
Service Overview Control: Content (incl DLP)
Protect: AV and AS Control: Image
Inbound
email
1
Traffic Management
2
SMTP Heuristics
User Validation (some clients) 3
Approved and Block lists 4
DUL, RBL, RSS 5
Commercial AV .6
Commercial AS .
7
8
Skeptic .
Clean
inbox
18.4%
12
13. Symantec Protection Network:
Online Backup Offering
Customer
Online Backup Premise
• Always-on protection
• Web-based application
• Accessible from anywhere
• Private Key Encryption
• Redundant Data Centers Internet
• Version history
• Reporting
• Alerting
Symantec
Data Centers
13
14. Symantec Protection Network:
Online Storage for Backup Exec
Customer
Online Storage for Backup Exec Premise
Online Storage
• Secure storage of data for
disaster recovery or long
term storage
• Addresses tape
management challenges
• Managed from the Backup Internet
Exec console
Symantec
Data Centers
14
15. NEW: Symantec Online Remote
Access (beta)
Home, Hotel,
Internet Café
Online Remote Access Office
Online Storage
• Secure remote access to
computers from anywhere
on the Internet, without a
VPN
• Work in specific files or
applications remotely
• Transfer files in either
direction, remotely print
directly to local printers Internet
• No pre-installed software
required on the controlling
computer
Symantec
Data Centers
15
16. Expansion Opportunities
Provide market-leading technologies to customers as online services
DLP
Online Services Archiving
Expansion
Compliance
Opportunities
Storage
Managed Endpoints
Registration
Perimeter Security
and Profile
Endpoint Management
Endpoint Security
Email
Provisioning MessageLabs
Web
Instant Message
Symantec Online Remote Access
SPN
Billing Symantec Online Storage
Symantec Online Backup
Support
Common user interface
16
17. Go-To-Market Synergies
• Extends leadership in SMB and Large Enterprise
– Capitalize on cross-selling and up-selling existing SaaS offerings
– Broaden global channel reach
• Expands geographic market coverage
– North America
– Emerging markets
– Government segment
• Broadens offerings to provide full breadth of choice
– Software, appliance or SaaS
– Hybrid solutions
– Bundled offerings
17
18. Deal Structure
• Purchase price of approximately $695 million, subject to
foreign currency adjustments, paid in £310 million and
$154 million from international cash
• Transaction expected to be $0.02 dilutive to FY09 non-
Financial
GAAP earnings per share. GAAP EPS will be more diluted
Terms
due to purchase accounting
• The transaction is expected to close by the end of the
calendar year 2008
• European regulatory approvals
Conditions
• MessageLabs generated revenue of approximately
$145 million during fiscal year 2008, which ended on
Financial
Details July 31, 2008
18
19. Symantec and MessageLabs:
A Winning Combination
Symantec Brings:
MessageLabs Brings:
• Market leadership in key software
• Market leadership in the high
markets such as DLP, archiving,
growth message and web
storage, compliance, and
security areas
managed endpoints
• Global infrastructure with 14 data
centers and SaaS expertise • Global presence to expand
geographically through up-sell
• A platform to protect, control,
and cross-sell opportunities
encrypt and archive email, web
and instant messaging
• Financial resources to accelerate
innovative hybrid offerings
19
