#1FÆRTINET. Q4 2023 Financial Results February 6, 2024#2Safe Harbor Statement Information, statements and projections contained in these presentation slides and related conference call concerning Fortinet's business outlook, the first quarter of 2024 and full year 2024 guidance, and future prospects and expectations are forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding any indications related to future growth and market share gains, our strategy going forward, and guidance and expectations around future financial results, including guidance and expectations for the first quarter of 2024 and full year 2024, and any statements regarding our market opportunity and market size, and business momentum. Although we attempt to be accurate in making forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based such that actual results are materially different from our forward-looking statements in these presentation slides. Important factors that could cause results to differ materially from the statements herein include the following: general economic risks, including those caused by economic challenges, a possible economic downturn or recession and the effects of inflation or stagflation, rising interest rates or reduced information technology spending; instability in the global banking system; supply chain challenges; negative impacts from the ongoing war in Ukraine and its related macroeconomic effects and our decision to reduce operations in Russia, as well as the Israel- Hamas war; competitiveness in the security market; the dynamic nature of the security market and its products and services; specific economic risks worldwide and in different geographies, and among different customer segments; uncertainty regarding demand and increased business and renewals from existing customers; uncertainties around continued success in sales growth and market share gains; uncertainties in market opportunities and the market size; actual or perceived vulnerabilities in our supply chain, products or services, and any actual or perceived breach of our network or our customers' networks; longer sales cycles, particularly for larger enterprise, service providers, government and other large organization customers; the effectiveness of our salesforce and failure to convert sales pipeline into final sales; risks associated with successful implementation of multiple integrated software products and other product functionality risks; risks associated with integrating acquisitions and changes in circumstances and plans associated therewith, including, among other risks, changes in plans related to product and services integrations, product and services plans and sales strategies; sales and marketing execution risks; execution risks around new product development and introductions and innovation; litigation and disputes and the potential cost, distraction and damage to sales and reputation caused thereby or by other factors; cybersecurity threats, breaches and other disruptions; market acceptance of new products and services; the ability to attract and retain personnel; changes in strategy; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make our products and services less competitive; risks associated with the adoption of, and demand for, our products and services in general and by specific customer segments, including those caused by competition and pricing pressure; excess product inventory for any reason, including those caused by the effects of increased inflation and interest rates in certain geographies and the war in Ukraine and the Israel-Hamas war; risks associated with business disruption caused by natural disasters and health emergencies such as earthquakes, fires, power outages, typhoons, floods, health epidemics and viruses, and by manmade events such as civil unrest, labor disruption, international trade disputes, international conflicts such as the war in Ukraine and the Israel-Hamas war or tensions between China and Taiwan, terrorism, wars, and critical infrastructure attacks; tariffs, trade disputes and other trade barriers, and negative impact on sales based on geo-political dynamics and disputes and protectionist policies; any political and government disruption around the world, including the impact of any future shutdowns of the U.S. government; and the other risk factors set forth from time to time in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission ("SEC"), copies of which are available free of charge at the SEC's website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of these presentation slides, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events. W © Fortinet Inc. All Rights Reserved. | 2#3in 2023 Financial Highlights Total Revenue Service Revenue Total Billings Recurring Revenue Adj. Free Cash Flow $5.30B $3.38B $6.40B 66% of total revenue +20% y/y +28% y/y +14% y/y $1.86B 35% Margin GAAP Operating Income $1.24B Non-GAAP Operating Income Non-GAAP Diluted EPS $1.51B $1.63 +28% y/y 23.4% Margin +25% y/y 28.4% Margin +37% y/y +160% y/y Number of Deals >$10M 13 Billings of Deals > $10M $232M +177% y/y Note (1) Recurring revenue represents total revenue less hardware and professional services revenue. © Fortinet Inc. All Rights Reserved. | 3#4in The Fortinet Security Fabric Vision Secure Networking Converge security and networking to protect every edge and device Unified SASE Secure users anywhere and applications on any cloud. One Operating System, One Orchestration and Management Plane, One Analytics Engine, Unified Agent, and Al-powered Security Services Al-driven Security Operations Al-driven security operations to Detect, Investigate and Respond to Threats © Fortinet Inc. All Rights Reserved. | 4#5Segment Breakdown Q4'23 Billings Secure Networking W 1 Unified SASE 1,2 Security Operations 68% 21% FortiGate Firewall FortiSwitch FortiAP FortiExtender FortiManager FortiNAC FortiDDoS +MORE SD-WAN FortiSASE FortiClient FortiMonitor FortiGate Virtual Machine FortiGate Cloud Native FortiWeb FortiProxy +MORE 11% FortiAnalyzer FortiSIEM FortiEDR & FortiMDR FortiSandbox FortiSOAR FortiNDR FortiMail FortiRecon FortiGuard SoCaaS +MORE Note 1 All Solutions include FortiGuard service sales Note 2 SD-WAN in Unified SASE is calculated from a % of FortiGate Entry Level and Mid-Range sales © Fortinet Inc. All Rights Reserved. | 5#6Total TAM of $150B in 2024 Growing to $208B by 2027 W Secure Networking $68B '24 - '27 CAGR +8% 容 Security Operations $60B Unified SASE $21B '24 - '27 CAGR +13% '24 – '27 CAGR +19% Gartner, September 2023 - Forecast: Enterprise Network Equipment by Market Segment, Worldwide, 2021-2027, 3Q23 Update Gartner, September 2023 - Forecast: Information Security and Risk Management, Worldwide, 2021-2027, 3Q23 Update Gartner, Forecast Analysis: Secure Access Service Edge, Worldwide Published 10 October 2023 - ID G00784465 Westland Advisory - Industrial Cybersecurity Industry Analysis, July 2023 © Fortinet Inc. All Rights Reserved. | 6#7in Fortinet Secures Over Half a Million Organizations Worldwide Over 700,000 enterprises, service providers, and government organizations around the world trust Fortinet to secure their operations 76% of Fortune 100 companies depend on Fortinet to stay secure + TOP TOP 4/4 Business Services 8/10 TOP 9/10 Financial Services Healthcare & Manufacturing Life Sciences TOP TOP TOP 9/10 9/10 9/10 TOP 4/4 Retail & Wholesale Technology Telcos & Carriers © Fortinet Inc. All Rights Reserved. |7#8An I 80+ Enterprise Analyst Reports Validate Fortinet Across Networking & Security Fortinet, one of the most validated cybersecurity companies in the world, is consistently positioned in leadership positions across 80+ research reports from major industry analyst firms like Gartner, IDC, and Forrester. We are in 8 Gartner Magic Quadrants. Gartner MAGIC QUADRANTS SULLIVAN GIGAOM GIGAOM RADAR FROST **uppingercole COMPASSES RADARS FORRESTER WAVES IDC MARKETSCAPES WESTLANDS OMDIA ANALYSTS M ADVISORY PLATFORM NAVIGATOR © Fortinet Inc. All Rights Reserved. | 8#9in ABILITY TO EXECUTE in Organic Development Creates a Truly Integrated Platform Single Operating System SD-WAN Sept 2022 Magic Quadrant for SD-WAN Fortinet recognized as a Leader Wired & Wireless LAN Nov 2022 Magic Quadrant for Wired and Wireless LAN Fortinet recognized as a Visionary Network Firewall Dec 2022 Magic Quadrant for Network Firewalls Fortinet recognized as a Leader SASE Aug 2023 Magic Quadrant for Single-Vendor SASE Fortinet recognized as a Challenger CHALLENGER Magewo Facport Codigoint Fart Clo NICHE PLAYERS COMPLETENESS OF VISIONARIES As of August 2022 LEADERS CHALLENGERS ABILITY TO EXECUTE Condo UCS C ALE Ca Avista Mañanak s LEADERS CHALLENGERS Juniper MICHE PLAYERS VYDIONARIES COMPLETENESS OF VISION As of September 2022 ©Car Y TO EXECUT Moosa S NICHE PLAYERS COMPLETENESS OF VISION CH ibaba Cloud Junger Hun Sophos LEADERS CHALLENGERS Pale Alto Network Check Point Software VISIONARES Garc As of September 2003 ABILITY TO EXECUTE V Juniper Network Catoworks Cate -Facepoint LEADERS Po Networks NICHE PLAYERS VISIONARIES COMPLETENESS OF VISION As of August 2023 Garten © Fortinet Inc. All Rights Reserved. | 9#10Q4 2023 Non-GAAP Results Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Billings (1) $1.306B $1.160B $1.304B $1.411B $1.719B $1.503B $1.541B $1.491B $1.865B Y/Y % Change 35.9% 36.4% 35.7% 32.6% 31.6% 29.6% 18.1% 5.7% 8.5% Revenue $963.6M $954.8M $1.030B $1.150B $1.283B $1.262B $1.293B $1.335B $1.415B Y/Y % Change 28.8% 34.4% 28.6% 32.6% 33.1% 32.2% 25.5% 16.1% 10.3% Product Revenue $378.9M $371.0M $400.7M $468.7M $540.1M $500.7M $472.6M $465.9M $488.1M Y/Y % Change 31.4% 54.1% 34.3% 39.0% 42.5% 35.0% 17.9% (0.6)% (9.6)% Service Revenue $584.7M $583.8M $629.4M $680.8M $742.9M $761.6M $820.2M $868.7M $927.0M Y/Y % Change 27.2% 24.3% 25.2% 28.4% 27.1% 30.5% 30.3% 27.6% 24.8% W Note (1) Billings is a non-GAAP measure that we define as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period less any deferred revenue balances acquired from business combination(s) and adjustment due to adoption of new accounting standard during the period. © Fortinet Inc. All Rights Reserved. 10#11Q4 2023 Non-GAAP Results Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Gross Profit (1) Gross Margin (1) Operating Income (1)(2) Operating Margin (1)(2) Net Income attributable to Fortinet, Inc. (1)(2)(3)(4)(5) Diluted Net Income per Share Attributable to Fortinet, Inc. (1)(2)(3)(4)(5)(6) $0.25 $0.19 $744.4M $710.2M $788.5M $875.5M $996.0M $963.6M $1.01B 77.3% 74.4% 76.5% 76.2% 77.6% 76.3% 77.9% $274.7M $210.2M $255.4M $324.9M $417.6M $334.0M $348.1M 28.5% 22.0% 24.8% 28.3% 32.5% 26.5% 26.9% $205.8M $155.1M $194.1M $262.7M $349.7M $269.7M $300.4M $0.24 $0.34 $0.38 $1.03B $1.11B 76.9% 78.5% $371.4M $453.5M 27.8% 32.0% $323.5M $392.0M $0.33 $0.44 $0.41 $0.51 Weighted Diluted Shares Used to Compute Net Income per Share Attributable to Fortinet, Inc. (6) 835.0M 820.8M 810.1M 798.6M 791.8M 793.4M 795.9M 791.2M 772.3M Deferred Revenue $3.45B $3.66B $3.93B $4.19B $4.64B $4.88B $5.13B $5.29B $5.74B Cash, Investments and Marketable Equity Securities(7 (7) Cash Paid for Stock Repurchases $2.99B $2.50B $1.94B $1.81B $2.26B $2.89B $3.32B $3.17B $2.44B $571.8M $691.2M $800.0M $500.0M $604.3M $896.2M Days Sales Outstanding 75 75 80 75 89 78 75 68 89 Inventory Turns 2.7 3.5 3.1 3.4 2.8 2.3 1.6 1.2 1.3 Headcount 10,195 10,860 11,508 12,091 12,595 13,202 13,677 13,618 13,568 Notes NOG FW NE : (1) Excludes stock-based compensation and amortization of acquired intangible assets. (2) Excludes gain on intellectual property ("IP"). (4) (5) (3) Assumes a quarterly effective tax rate of 21% for Q4' 21. Assumes a quarterly effective tax rate of 17% for 2022 and 2023. Excludes a non-cash charge, primarily comprised of the impairment recognized on our equity method investment in Linksys Holdings Inc. ("Linksys") and other intervening events related to the establishment of a valuation allowance against Linksys deferred tax assets. Excludes the adjustments attributable to non-controlling interests. (6) All share and per share amounts presented herein have been retroactively adjusted to reflect the five-for-one forward stock split which was effective June 22, 2022. Excludes investments in privately held companies, which are recorded in other assets. W © Fortinet Inc. All Rights Reserved. | 11#12in 2023 Non-GAAP Results in 2021 2022 2023 Billings (1) Y/Y % Change Revenue Y/Y % Change Product Revenue Y/Y % Change Service Revenue Y/Y % Change Gross Profit (2) Gross Margin (%) (2) $4.181B $5.594B $6.400B 35.3% 33.8% 14.4% $3.342B $4.417B $5.305B 28.8% 32.2% 20.1% $1.255B $1.781B $1.927B 36.9% 41.9% 8.2% $2.087B $2.637B $3.378B 24.4% 26.3% 28.1% $2.59B $3.37B $4.11B 77.5% 76.3% 77.4% Operating Income (2)(3) $875.5M $1.21B $1.51B Operating Margin (%) (2) (3) 26.2% 27.3% 28.4% Net Income Attributable to Fortinet, Inc. (2)(3)(4)(5)(6) Diluted Net Income per Share Attributable to Fortinet, Inc. (2)(3)(4)(5)(6)(7) $666.0M $961.6M $1.29B $0.80 $1.19 $1.63 Weighted Diluted Shares Used to Compute Net Income per Share Attributable to Fortinet, Inc. (7) 835.3M 805.3M 788.2M Notes (1) Billings is a non-GAAP measure that we define as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period less any deferred revenue balances acquired from business combination(s) and adjustment due to adoption of new accounting standard during the period. (2) Excludes stock-based compensation and amortization of acquired intangible assets. (3) Excludes gain on IP and litigation-related matters. NO GEWN 3 (4) Assumes an annual effective tax rate of 21%, 17% and 17% for 2021, 2022 and 2023, respectively. (5) (7) Excludes a non-cash charge, primarily comprised of the impairment recognized on our equity method investment in Linksys and other intervening events related to the establishment of a valuation allowance against Linksys deferred tax assets. Excludes the adjustments attributable to non-controlling interests. All share and per share amounts presented herein have been retroactively adjusted to reflect the five-for-one forward stock split which was effective June 22, 2022. © Fortinet Inc. All Rights Reserved. |12#13in Revenue by Geography Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Y/Y % ($ in millions) Change Y/Y % Change Y/Y% Change Y/Y % Y/Y % Change Change Y/Y% Change Y/Y % Change Y/Y % Change Y/Y % Change Americas $380.8 26.4% $382.6 31.5% $413.6 22.7% $467.6 33.6% $521.2 36.9% $523.5 36.8% $537.0 29.8% $545.6 16.7% $569.1 9.2% EMEA $370.8 24.3% $346.0 25.5% $391.8 28.0% $443.9 37.3% $510.1 37.6% $478.2 38.2% $506.9 29.4% $512.2 15.4% $575.6 12.8% APAC $212.0 42.9% $226.2 57.4% $224.7 42.3% $238.0 22.7% $251.7 18.7% $260.6 15.2% $248.9 10.8% $276.8 16.3% $270.4 7.4% Total $963.6 28.8% $954.8 34.4% $1,030.1 28.6% $1,149.5 32.6% $1,283.0 33.1% $1,262.3 32.2% $1,292.8 25.5% $1,334.6 16.1% $1,415.1 10.3% Q4'21 % of revenue Q1'22 % of revenue Q2'22 % of revenue Q3'22 % of revenue Q4'22 % of revenue Q1'23 % of revenue Q2'23 % of revenue Q3'23 % of revenue Q4'23 % of revenue Americas 39.5% 40.1% 40.2% 40.7% 40.6% 41.5% 41.5% 40.9% 40.2% EMEA 38.5% 36.2% 38.0% 38.6% 39.8% 37.9% 39.2% 38.4% 40.7% APAC 22.0% 23.7% 21.8% 20.7% 19.6% 20.6% 19.3% 20.7% 19.1% Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% © Fortinet Inc. All Rights Reserved. |13#14in Revenue by Geography (Continued) 2021 2022 2023 ($ in millions) Y/Y % Change Y/Y % Change Y/Y % Change Americas $1,358.8 26.1% $1,785.0 31.4% $2,175.2 21.9% EMEA $1,275.9 APAC Total 28.6% $1,691.8 32.6% $2,072.9 22.5% $707.5 34.7% $940.6 32.9% $1,056.7 12.3% $3,342.2 28.8% $4,417.4 32.2% $5,304.8 20.1% 2021 % of revenue 2022 % of revenue 2023 % of revenue Americas 40.6% 40.4% 41.0% EMEA 38.2% 38.3% 39.1% APAC 21.2% 21.3% 19.9% Total 100.0% 100.0% 100.0% © Fortinet Inc. All Rights Reserved. |14#15in Number of Deals & FortiGate Sales Number of Deals (1) Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 No. of Deals >$50K 3,807 3,241 3,583 4,269 4,904 4,583 4,790 4,732 5,625 No. of Deals >$250K 758 598 699 830 1,008 838 836 835 1,112 No. of Deals >$500K 320 243 312 355 450 323 353 367 474 No. of Deals >$1M 122 90 122 153 181 124 134 145 179 % of FortiGate (2) Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Entry Level (FG30-90) 22.1% 26.9% 25.4% 40.0% 24.6% 30.6% 24.9% 27.7% 28.9% Mid Range (FG100-900) 40.0% 35.2% 42.3% 29.4% 48.2% 44.8% 49.8% 45.4% 43.9% High-End (FG1000-7000) 37.9% 37.9% 32.3% 30.6% 27.2% 24.6% 25.3% 26.9% 27.2% Notes (1) Deals are defined as combined sales in the period to a customer account. (2) Represents the percentage of invoiced amounts from FortiGate sales during the period by range of product and product bundles. © Fortinet Inc. All Rights Reserved. |15#16in FortiGate Sales (Continued) % of FortiGate (1) Entry Level (FG30-90) 2021 2022 2023 24.4% 29.2% 28.1% - Mid Range (FG100-900) 39.2% 39.2% 45.9% High-End (FG1000-7000) 36.4% 31.6% 26.0% Note (1) Represents the percentage of invoiced amounts from FortiGate sales during the period by range of product and product bundles. © Fortinet Inc. All Rights Reserved. |16#17in Statement of Cash Flows (Non-GAAP) ($ in millions) Q4'21 Q1'22 GAAP Net Income Including Non-controlling Interests $198.8 Q2'22 Q3'22 $138.3 $173.4 $231.1 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 $313.8 $247.7 $266.3 $322.9 $310.9 Depreciation, Amortization and Stock-Based Compensation 78.4 78.7 79.8 81.1 82.0 83.8 92.4 92.6 93.6 Accounts Receivable (203.1) 15.4 (134.7) (43.4) (294.0) 171.1 7.9 64.4 (389.8) Inventory 0.1 (13.5) (17.7) (28.5) (49.4) (45.3) (84.9) (100.8) (22.5) Deferred Revenue 342.3 205.5 275.1 262.2 434.7 240.7 248.6 156.9 449.1 Other (1) (49.7) (28.3) GAAP Cash Flow from Operations $366.8 $396.1 $323.4 (52.5) (19.5) $483.0 41.0 (20.5) (15.2) 15.2 (249.6) Less: Purchases of Property and Equipment (151.3) (122.6) (39.9) Free Cash Flow $215.5 $273.5 $283.5 Issuance of Common Stock, Net of Taxes (43.7) (53.8) (30.2) $528.1 (87.8) (30.9) (30.3) $395.2 $497.2 $647.2 (26.4) (23.9) $677.5 $515.1 $551.2 $191.7 (76.8) (70.1) (26.9) $438.3 $481.1 $164.8 (13.3) (17.1) (24.4) (13.9) Stock Repurchases (571.8) (691.2) (800.0) (500.0) - (604.3) (896.2) Acquisitions (1.5) (30.8) Payments of debt assumed in connection with business combination (17.3) Purchase of investment in a privately held company Other (8.5) Change in Cash, Investments, and Marketable Equity Securities Footnote: Cash Paid for Taxes, Net of Refunds (7.9) $(426.7) $57.5 (18.6) $(490.1) $18.8 (12.3) $(559.0) $(129.0) $110.3 $68.5 2.2 (0.4) $442.1 $62.6 4.3 1.8 8.7 15.4 $638.2 $20.7 $423.0 $37.9 $(147.4) $(729.9) $26.3 $341.4 Note (1) Total cash paid for taxes in the fourth quarter of 2023 was $341 million, including $210 million of 2023 estimated Federal tax and other tax payments that were postponed from earlier quarters in accordance with IRS disaster area tax relief policies. © Fortinet Inc. All Rights Reserved. 17#18in Statement of Cash Flows (Non-GAAP) (Continued) ($ in millions) 2021 2022 GAAP Net Income Including Non-controlling Interests $606.7 $856.6 2023 $1,147.8 Depreciation, Amortization and Stock-Based Compensation 292.3 321.6 362.4 Accounts Receivable (72.5) (456.7) (146.4) Inventory (19.4) (109.1) (253.5) Deferred Revenue 839.4 1,177.5 1,095.3 Other (146.8) (59.3) (270.1) GAAP Cash Flow from Operations $1,499.7 $1,730.6 $1,935.5 Less: Purchases of Property and Equipment (295.9) (281.2) (204.1) Free Cash Flow $1,203.8 $1,449.4 $1,731.4 Issuance of Common Stock, Net of Taxes (141.9) Stock Repurchases (741.8) (134.3) (1,991.2) (1,500.5) (68.7) Acquisitions (74.9) (30.8) Proceeds from (payments of) long-term debt, net 967.5 Purchases of investments in privately held companies (160.0) (8.5) Other (15.8) (29.1) 30.2 Change in Cash, Investments, and Marketable Equity Securities $1,036.9 $(736.0) $183.9 Footnote: Cash Paid for Taxes, Net of Refunds 127.4 260.2 426.3 © Fortinet Inc. All Rights Reserved. |18#19in in Free Cash Flow and Adjusted Free Cash Flow Growth (Non-GAAP) (Continued) ($ in millions) Notes (1) (2) $1,435.8 $1,858.3 $1,644.5 (1) Reported Free Cash Flow (2) $1,731.4 Real Estate Related Add Backs $1,449.4 $1,203.8 2021 2022 2023 Free Cash Flow is a non-GAAP measure that we define as net cash provided by operating activities minus purchases of property and equipment. Adjusted Free Cash Flow is a non-GAAP measure that we define as Free Cash Flow plus cash payments associated with real estate purchases and cash payments related to HQ Construction. © Fortinet Inc. All Rights Reserved. 19#20Returned $5.3 Billion to Shareholders via Share Repurchases Since 2020 W Robust Share Buyback Program $5.3B cash returned to shareholders 135M shares repurchased 11.4% reduction in shares outstanding $1B buyback authorization remaining (1) Note (1) As of February 6, 2024 W Share Repurchases $2.0B $1.5B $1.1B $742M 2020 2021 2022 2023 © Fortinet Inc. All Rights Reserved. | 20#21Product and Services Revenue and Y/Y Growth: 2009 - 2023 ($ in millions) W $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $153 $0 $99 Note (1) $921 50% 40% 30% 20% $3,378 $2,637 $2,087 $1,678 10% $337 $278 $577 $916 $1,255 $1,781 $1,927 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Product Revenue Service Revenue → Product Revenue Y/Y growth Service Revenue Y/Y growth 3 & 4 Year CAGRs (Cycles) 2009-2013 2013-2017 2017-2020 2020-2023 14 Year CAGR 2009-2023 Product Revenue 29.6% 20.0% 16.7% 28.1% 23.6% Services Revenue 21.8% 28.6% 22.1% 26.3% 24.7% Total Revenue 25.0% 24.9% 20.1% 26.9% 24.3% 0% 2009-2015 have not been adjusted for an immaterial error related to the commencement of revenue recognition for certain FortiCare support service contracts. © Fortinet Inc. All Rights Reserved. | 21#22in Note (1) Y/Y Billings & Revenue Growth Rates and Operating Margin: 2009 - 2023 40% 30% 20% 10% 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 GAAP Operating Margin Non-GAAP Operating Margin Billings Growth Revenue Growth 14-year CAGR ('09-'23) Billings: 25.0% Revenue: 24.3% 2009-2015 have not been adjusted for an immaterial error related to the commencement of revenue recognition for certain FortiCare support service contracts. © Fortinet Inc. All Rights Reserved. | 22#23in Q1 and 2024 Guidance (Non-GAAP) (1) Q1'24E Billings (2) Actual Q1'23 $1.503B Actual 2023 $1.390 1.450B $6.400B Y/Y Mid-Pt Growth Revenue (GAAP) Y/Y Mid-Pt Growth Service Revenue (GAAP) Y/Y Mid-Pt Growth $1.262B - (5.5)% $1.300 1.360B $5.305B 5.4% $761.6M $3.378B 2024E $6.400 6.600B 1.6% $5.715-5.815B 8.7% $3.920 - 3.970B 16.8% Gross Margin (%) (3) 76.3% 76.5 -77.5% 77.4% 76.0 - 78.0% Operating Margin (%) (3) (4) 26.5% 25.5 - 26.5% 28.4% 25.5 - 27.5% Net Income per Share attributable to Fortinet, Inc. |(3)(4)(5)(6) $0.34 $0.37 -0.39 $1.63 $1.65 -1.70 Weighted Diluted Shares used to Compute Net Income per Share attributable to Fortinet, Inc. 793.4M 775-785M 788.2M 785 - 795M Notes (1) (2) Guidance for non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets and gain on IP and a non-cash charge on equity method investment. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort. Billings is a non-GAAP measure that we define as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period less any deferred revenue balances acquired from business combination(s) and adjustment due to adoption of new accounting standard during the period. (3) Excludes stock-based compensation and amortization of acquired intangible assets. (4) Excludes gain on IP. (5) Assumes an effective tax rate of 17% for 2023 and 2024. For 2024, we expect cash paid for taxes to be approximately $520 million. (6) Excludes a non-cash charge, primarily comprised of the impairment recognized on our equity method investment in Linksys and other intervening events related to the establishment of a valuation allowance against Linksys deferred tax assets. © Fortinet Inc. All Rights Reserved. | 23#24in Additional Modeling Points Actual 2023 Q1'24E 2024E Cash Paid for Taxes $426M Capital Expenditures $30M $520M $204M $220 - $250M $370 - $420M Non-GAAP Tax Rate 17% 17% 17% © Fortinet Inc. All Rights Reserved. | 24#25in GAAP to Non-GAAP Reconciliations ($ in millions) Total revenue Q2'23 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q3'23 Q4'23 $963.6 $954.8 $1,030.1 $1,149.5 $1,283.0 $1,262.3 $1,292.8 $1,334.6 $1,415.1 346.5 205.0 274.1 261.5 446.8 240.6 247.7 156.7 449.7 (10.8) $1,305.8 $1,159.8 $1,304.2 $1,411.0 $1,719.0 $1,502.9 $1,540.5 $1,491.3 $1,864.8 Add: Change in deferred revenue Less: Deferred revenue balance acquired in business combination (1) Less: ASC 606 transition amount related to deferred revenue (4.3) Total billings GAAP Cash Flow from Operations Less: Purchases of Property and Equipment Free Cash Flow (2) Add: Real Estate Related Add Backs Adjusted Free Cash Flow (3) 92.7 $366.2 283.5 21.2 $304.7 $366.8 $396.1 $323.4 $483.0 $528.1 $677.5 $515.1 $551.2 $191.7 (151.3) (122.6) (39.9) (87.8) (30.9) (30.3) (76.8) (70.1) (26.9) 215.5 273.5 395.2 497.2 647.2 129.0 68.6 12.6 14.9 $344.5 $463.8 $509.8 $662.1 $497.7 $530.8 $167.7 438.3 59.4 481.1 49.7 164.8 2.9 Notes (1) (2) (3) We early adopted ASU 2021-08 on a retrospective basis and effective for us beginning on January 1, 2021. The adoption of ASU 2021-08 resulted in a $4.3 million adjustment attributable to the acquisition of Alaxala in 2021, as a result of the revised measurement of deferred revenue for acquisition. Free Cash Flow is a non-GAAP measure that we define as net cash provided by operating activities minus purchases of property and equipment. Adjusted Free Cash Flow is a non-GAAP measure that we define as Free Cash Flow plus cash payments associated with real estate purchases and cash payments related to HQ Construction. © Fortinet Inc. All Rights Reserved. | 25#26GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) GAAP product gross profit Stock-based compensation Amortization of acquired intangible assets Non-GAAP product gross profit Q4'21 $232.4 $210.0 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 $245.5 $283.5 $350.2 $307.1 0.4 0.4 0.4 0.5 0.4 0.4 0.5 0.4 Q3'23 Q4'23 $298.1 $267.6 $290.9 0.5 2.4 2.4 Non-GAAP product gross margin $235.2 62.1% 2.1 $212.8 $248.0 $285.7 $352.2 57.4% 61.9% 61.0% 65.2% 1.7 1.6 1.8 1.7 1.6 2.0 $309.3 $300.3 $269.6 $293.4 61.8% 63.5% 57.9% 60.1% GAAP service gross profit $502.9 $491.0 $533.8 $583.0 $635.5 $647.4 $698.9 $749.3 $808.3 Stock-based compensation 4.3 4.5 4.7 4.8 4.8 5.1 6.0 6.1 6.1 Amortization of acquired intangible assets 2.0 1.9 2.0 2.0 3.5 1.8 1.8 1.8 2.4 Non-GAAP service gross profit $509.2 $497.4 $540.5 Non-GAAP service gross margin 87.1% 85.2% 85.9% $589.8 $643.8 $654.3 $706.7 $757.2 $816.8 86.6% 86.7% 85.9% 86.2% 87.2% 88.1% GAAP total gross profit $735.3 $701.0 $779.3 Stock-based compensation 4.7 4.9 5.1 $866.5 $985.7 $954.5 5.3 5.2 $997.0 $1,016.9 $1,099.2 5.5 6.5 6.5 6.6 Amortization of acquired intangible assets 4.4 4.3 4.1 3.7 5.1 3.6 3.5 3.4 4.4 Non-GAAP total gross profit $744.4 Non-GAAP gross margin $710.2 77.3% 74.4% 76.5% $788.5 $875.5 $996.0 $963.6 76.2% 77.6% $1,007.0 $1,026.8 $1,110.2 76.3% 77.9% 76.9% 78.5% GAAP research and development expense Stock-based compensation (14.7) Non-GAAP research and development expense $97.9 Non-GAAP research and development expense as a percentage of revenue 10.2% $112.6 $124.9 $124.3 $134.3 (15.1) (16.1) (16.7) (16.3) $109.8 $108.2 $117.6 $112.6 11.5% 10.5% 10.2% 8.8% $128.9 $151.1 $153.3 $156.9 (17.0) (20.0) (20.0) $134.1 $133.3 $136.9 10.6% 10.3% 10.3% $152.5 (19.8) $132.7 9.4% GAAP sales and marketing expense $367.7 $387.6 $415.5 $427.1 $455.9 Stock-based compensation (27.9) (26.7) (26.4) (25.9) (26.0) $478.3 (26.3) $515.9 $504.4 $507.4 (29.3) (28.5) (27.7) Amortization of acquired intangible assets (2.4) (2.1) (1.9) (1.5) (0.6) Non-GAAP sales and marketing expense $337.4 $358.8 Non-GAAP sales and marketing expense as a percentage of revenue 35.0% 37.6% $387.2 37.6% $399.7 $429.3 34.8% 33.5% (1.1) (1.0) (1.0) (0.9) $450.9 $485.6 $474.9 $478.8 35.7% 37.6% 35.6% 33.8% © Fortinet Inc. All Rights Reserved. | 26#27in GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 GAAP general and administrative expense $41.3 $38.6 $45.4 $40.7 $44.3 $52.8 $49.9 $53.5 $55.1 Stock-based compensation (6.9) (7.2) (7.7) (7.4) (7.8) (8.2) (9.9) (9.9) (9.9) Non-GAAP general and administrative expense $34.4 $31.4 $37.7 $33.3 $36.5 $44.6 $40.0 $43.6 $45.2 Non-GAAP general and administrative expense as a percentage of revenue 3.6% 3.3% 3.7% 2.9% 2.8% 3.5% 3.1% 3.3% 3.2% GAAP gain on IP matter $(1.2) $(1.1) $(1.2) $(1.1) $(1.2) $(1.2) $(1.1) $(1.1) $(1.2) Gain on IP matter 1.2 1.1 1.2 1.1 1.2 1.2 1.1 1.1 1.2 Non-GAAP gain on IP matter $- $- $- $- $- $- $- $- $- Non-GAAP gain on IP matter as a percentage of revenue ―% -% ―% ―% ―% ―% ―% ―% ―% GAAP total operating expense $520.4 $550.0 $584.0 $601.0 $627.9 $681.0 $718.0 $713.7 $713.8 Stock-based compensation (49.5) (49.0) (50.2) (50.0) (50.1) (51.5) (59.2) (58.4) (57.4) Amortization of acquired intangible assets (2.4) (2.1) (1.9) (1.5) (0.6) (1.1) (1.0) (1.0) (0.9) Gain on IP matter 1.2 1.1 Non-GAAP total operating expense $469.7 $500.0 Non-GAAP total operating expense as a percentage of revenue 48.7% 52.4% 1.2 1.1 $533.1 $550.6 $578.4 51.8% 47.9% 45.1% 1.2 1.2 1.1 1.1 1.2 $629.6 $658.9 49.9% 51.0% $655.4 $656.7 49.1% 46.4% GAAP operating income $214.9 $151.0 Stock-based compensation 54.2 53.9 $195.3 55.3 $265.5 $357.8 55.3 55.3 $273.5 $279.0 $303.2 57.0 65.7 $385.4 64.9 64.0 Amortization of acquired intangible assets 6.8 6.4 6.0 5.2 5.7 4.7 4.5 4.4 5.3 Gain on IP matter (1.2) (1.1) (1.2) (1.1) (1.2) (1.2) (1.1) (1.1) (1.2) Non-GAAP operating income $274.7 $210.2 $255.4 $324.9 $417.6 $334.0 Non-GAAP operating margin 28.5% 22.0% 24.8% 28.3% 32.5% 26.5% $348.1 $371.4 $453.5 26.9% 27.8% 32.0% in © Fortinet Inc. All Rights Reserved. 27#28GAAP to Non-GAAP Reconciliations (Continued) ($ in millions Q4'21 GAAP provision for (benefit from) income taxes Q1'22 $3.7 $(8.1) $2.4 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 $27.3 $9.2 $21.3 $27.6 $(0.3) $95.2 Tax adjustments related to the above 52.4 41.7 39.1 27.8 63.6 38.5 35.0 67.6 (13.0) Non-GAAP provision for income taxes Non-GAAP effective tax rate Net income attributable to Fortinet, Inc. Stock-based compensation Amortization of acquired intangible assets Gain on IP matter Tax adjustments $56.1 $33.6 $41.5 $55.1 $72.8 $59.8 $62.6 $67.3 $82.2 21% 17% 17% 17% 17% 17% 17% 17% 17% $199.0 $138.4 $173.5 $231.6 $313.8 $247.7 $266.3 $322.9 $310.9 54.2 53.9 55.3 55.3 55.3 57.0 65.7 64.9 64.0 6.8 6.4 6.0 5.2 5.7 4.7 4.5 4.4 5.3 (1.2) (1.1) (1.2) (1.1) (1.2) (1.2) (1.1) (1.1) (1.2) (52.4) (41.7) (39.1) (27.8) (63.6) (38.5) (35.0) (67.6) 13.0 Non-cash charge on equity method investment 39.7 Adjustments attributable to non-controlling interests (0.6) (0.8) (0.4) Non-GAAP net income attributable to Fortinet, Inc. $205.8 $155.1 $194.1 (0.5) $262.7 $349.7 $269.7 $300.4 $323.5 $392.0 GAAP net income per share attributable to Fortinet, Inc., diluted (1) $0.24 $0.17 $0.21 $0.29 $0.40 $0.31 $0.33 $0.41 $0.40 Stock-based compensation 0.06 0.06 0.07 0.07 0.07 0.07 0.08 0.08 0.08 Amortization of acquired intangible assets 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 Gain on IP matter — - - - Tax adjustments (0.06) (0.05) (0.05) (0.04) Non-cash charge on equity method investment (0.08) 0.05 (0.05) (0.04) (0.09) 0.02 Adjustments attributable non-controlling interests Non-GAAP net income per share attributable to Fortinet, Inc., diluted (1) $0.25 $0.19 $0.24 $0.33 $0.44 $0.34 $0.38 $0.41 $0.51 (1) Shares used in diluted net income per share attributable to Fortinet, Inc. calculations 835.0 820.8 810.1 798.6 791.8 793.4 795.9 791.2 772.3 W Note (1) All share and per share amounts presented herein have been retroactively adjusted to reflect the five-for-one forward stock split which was effective June 22, 2022. © Fortinet Inc. All Rights Reserved. | 28#29in GAAP to Non-GAAP Reconciliations ($ in millions) Total revenue Add: Change in deferred revenue Less: Deferred revenue balance acquired in business combination Less: Adjustment due to adoption of ASU 2021-08 (1) Total billings GAAP Cash Flow from Operations Less: Purchases of Property and Equipment Free Cash Flow (2) Add: Real Estate Related Add Backs Notes (1) (2) (3) Adjusted Free Cash Flow (3) 2021 $3,342.2 2022 $4,417.4 $5,304.8 2023 847.6 (4.1) 1,187.4 1,094.7 (10.8) (4.3) $4,181.4 $5,594.0 $6,399.5 $1,499.7 $1,730.6 $1,935.5 (295.9) (281.2) (204.1) 1,203.8 1,449.4 232.0 $1,435.8 1,731.4 195.1 126.9 $1,644.5 $1,858.3 We early adopted ASU 2021-08 on a retrospective basis and effective for us beginning on January 1, 2021. The adoption of ASU 2021-08 resulted in a $4.3 million adjustment attributable to the acquisition of Alaxala in 2021, as a result of the revised measurement of deferred revenue for acquisition. Free Cash Flow is a non-GAAP measure that we define as net cash provided by operating activities minus purchases of property and equipment. Adjusted Free Cash Flow is a non-GAAP measure that we define as Free Cash Flow plus cash payments associated with real estate purchases and cash payments related to HQ Construction. © Fortinet Inc. All Rights Reserved. | 29#30in GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) GAAP product gross profit Stock-based compensation Amortization of acquired intangible assets 2021 $767.3 2022 2023 $1,089.2 $1,163.7 1.7 1.7 1.8 5.7 7.8 7.1 Non-GAAP product gross profit Non-GAAP product gross margin $774.7 $1,098.7 $1,172.6 61.7% 61.7% 60.8% GAAP service gross profit Stock-based compensation 15.7 Amortization of acquired intangible assets 7.2 $1,791.9 $2,243.3 $2,903.9 23.3 7.8 Non-GAAP service gross profit Non-GAAP service gross margin GAAP total gross profit Stock-based compensation Amortization of acquired intangible assets 18.8 9.4 $1,814.8 $2,271.5 $2,935.0 86.9% 86.1% 86.9% $2,559.2 $3,332.5 $4,067.6 17.4 12.9 20.5 25.1 17.2 14.9 Non-GAAP total gross profit Non-GAAP gross margin GAAP research and development expense Stock-based compensation $2,589.5 $3,370.2 $4,107.6 77.5% 76.3% 77.4% $424.2 $512.4 $613.8 Non-GAAP research and development expense Non-GAAP research and development expense as a percentage of revenue GAAP sales and marketing expense Stock-based compensation Amortization of acquired intangible assets Non-GAAP sales and marketing expense Non-GAAP sales and marketing expense as a percentage of revenue (56.7) (64.2) (76.8) $367.5 $448.2 $537.0 11.0% 10.1% 10.1% $1,345.7 $1,686.1 $2,006.0 (110.0) (105.0) (111.8) (5.6) (6.1) (4.0) $1,230.1 $1,575.0 $1,890.2 36.8% 35.7% 35.6% © Fortinet Inc. All Rights Reserved. | 30#31in GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) GAAP general and administrative expense Stock-based compensation Non-GAAP general and administrative expense 2021 2022 2023 $143.5 $169.0 $211.3 (27.1) (30.1) (37.9) $116.4 $138.9 $173.4 Non-GAAP general and administrative expense as a percentage of revenue 3.5% 3.1% 3.3% GAAP Gain on IP matter $(4.6) $(4.6) $(4.6) Gain on IP matter 4.6 4.6 4.6 Non-GAAP gain on IP matter $- $- $- -% -% ―% Non-GAAP gain on IP matter as a percentage of revenue GAAP total operating expense Stock-based compensation Amortization of acquired intangible assets Gain on IP matter Non-GAAP total operating expense Non-GAAP total operating expense as a percentage of revenue GAAP operating income Stock-based compensation Amortization of acquired intangible assets Gain on IP Matter Non-GAAP operating income Non-GAAP operating margin $1,908.8 $2,362.9 $2,826.5 (193.8) (199.3) (226.5) (5.6) (6.1) (4.0) 4.6 4.6 4.6 $1,714.0 $2,162.1 $2,600.6 51.3% 48.9% 49.0% $650.4 $969.6 $1,241.1 211.2 219.8 251.6 18.5 23.3 18.9 (4.6) (4.6) (4.6) $875.5 $1,208.1 $1,507.0 26.2% 27.3% 28.4% © Fortinet Inc. All Rights Reserved. | 31#32GAAP to Non-GAAP Reconciliations (Continued) W ($ in millions) GAAP provision for income taxes Tax adjustments related to the above Non-GAAP provision for income taxes 2022 Non-GAAP effective tax rate 2021 $14.1 $30.8 $143.8 165.1 172.2 128.1 $179.2 $203.0 $271.9 21% 17% 17% 2023 GAAP net income attributable to Fortinet, Inc. $606.8 $857.3 $1,147.8 Stock-based compensation 211.2 219.8 251.6 Amortization of acquired intangible assets 18.5 23.3 18.9 Gain on IP matter Tax adjustments (4.6) (4.6) (4.6) (165.1) (172.2) (128.1) Non-cash charge on equity method investment 39.7 Adjustments attributable non-controlling interests (0.8) (1.7) Non-GAAP net income attributable to Fortinet, Inc. $666.0 $961.6 $1,285.6 GAAP net income per share attributable to Fortinet, Inc., diluted(1) $0.73 $1.06 $1.46 Stock-based compensation 0.26 0.27 0.32 Amortization of acquired intangible assets 0.02 0.03 0.02 Gain on IP matter (0.01) (0.01) (0.01) Tax adjustments (0.20) Non-cash charge on equity method investment (0.21) 0.1 (0.16) Adjustments attributable non-controlling interests Non-GAAP net income per share attributable to Fortinet, Inc., diluted (1) $0.80 $1.19 $1.63 Shares used in diluted net income per share attributable to Fortinet, Inc. calculations (1) 835.3 805.3 788.2 Note (1) © Fortinet Inc. All Rights Reserved. | 32 All share and per share amounts presented herein have been retroactively adjusted to reflect the five-for-one forward stock split which was effective June 22, 2022.#33FÖRTINET