Trading Update

Adjusted billings1 growth for the year-ended 31 March 2015 was 17.3%. In the two-month period to 31 May 2015, the Group has continued to trade strongly, in line with management expectations, achieving adjusted billings growth of 19%. Similar product trends have been seen in the quarter to date as compared to the prior year, with significant double-digit adjusted billings growth in the Group’s Network products and good growth in the Group’s billings attributable to Enduser products. Billings in each of the Americas, EMEA and APJ regions have grown year-on-year.

The significant weakening of Euro and Sterling as compared to the prior year will negatively impact reported billings growth for the quarter, although this impact is expected to progressively lessen in the current year, assuming exchange rates stay constant.

On 5 June, 2015, the Group also completed the acquisition of Reflexion Networks, Inc. for a cash consideration of $15million. Reflexion Networks Inc. is a leader in cloud-based email security, archiving, email encryption and business continuity services. The acquisition will enable the Group to add cloud-based email security to Sophos Cloud, the Group’s single, integrated cloud-based management console. In the year-ended 31 December 2014, Reflexion Networks, Inc. generated billings of $5million and was cash EBITDA positive.

(1) Adjusted billings represents billings adjusted for the impact of fluctuations in exchange rates and material acquisitions.