# EDGAR Filing Document

**Accession Number:** 0001048695
**File Stem:** 0001140361-23-008069
**Filing Date:** 2023-2
**Character Count:** 14176
**Document Hash:** c6f5dc9921563d2a3b75132e1b22af46
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001140361-23-008069.hdr.sgml**: 20230222

**ACCESSION NUMBER**: 0001140361-23-008069

**CONFORMED SUBMISSION TYPE**: DEFA14A

**PUBLIC DOCUMENT COUNT**: 21

**FILED AS OF DATE**: 20230222

**DATE AS OF CHANGE**: 20230222

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** F5, INC.
- **CENTRAL INDEX KEY:** 0001048695
- **STANDARD INDUSTRIAL CLASSIFICATION:** COMPUTER COMMUNICATIONS EQUIPMENT [3576]
- **IRS NUMBER:** 911714307
- **STATE OF INCORPORATION:** WA
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** DEFA14A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-26041
- **FILM NUMBER:** 23654647

**BUSINESS ADDRESS:**
- **STREET 1:** 801 5TH AVENUE
- **CITY:** SEATTLE
- **STATE:** WA
- **ZIP:** 98104
- **BUSINESS PHONE:** 2062725555

**MAIL ADDRESS:**
- **STREET 1:** 801 5TH AVENUE
- **CITY:** SEATTLE
- **STATE:** WA
- **ZIP:** 98104

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** F5 NETWORKS, INC.
- **DATE OF NAME CHANGE:** 20190625

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** F5 NETWORKS INC
- **DATE OF NAME CHANGE:** 19990308

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** F5 LABS INC
- **DATE OF NAME CHANGE:** 19990305

### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### Washington, D.C. 20549

#### <br>

### SCHEDULE 14A

#### <br>

#### (Rule 14a-101)

#### INFORMATION REQUIRED IN PROXY STATEMENT

#### SCHEDULE 14A INFORMATION

#### Proxy Statement Pursuant to Section 14(a) of the

#### Securities Exchange Act of 1934

#### <br>
Filed by the Registrant ☒ Filed by a party other than the Registrant ☐

Check the appropriate box:

☐ Preliminary Proxy Statement

☐ **Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))**

☐ Definitive Proxy Statement

☒ Definitive Additional Materials

☐ Soliciting Material Under Rule 14a-12

## F5, Inc.

#### (Name of Registrant as Specified In Its Charter)

#### (Name of Person(s) Filing Proxy Statement, if other than the Registrant)

#### <br>
Payment of Filing Fee (Check the appropriate box):

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F5, Inc. (the "Company") is filing a copy of this presentation intended to be used in discussions with shareholders related to the Company's proxy statement for its Annual Shareholders Meeting to be held on March 9, 2023.<br>

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F5, Inc. Investor Presentation February 22, 2023

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F5, Inc. (the "Company") is filing a copy of this presentation intended to be used in discussions with shareholders related to the Company's proxy statement for its Annual Shareholders Meeting to be held on March 9, 2023.

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**Table of Contents** Executive Summary 5 Proposal No. 2 – IncentivePlan Approval Request 6 – 10 Business Transformation 11 – 13 Executive Compensation 14 – 15 ESG Overview 16 – 19 Slides

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We are providing this information as supplemental to our proxy to aid investors in their consideration of our proposals. Our Board would like to draw your attention to Proposal No. 2 – our request to increase the number of shares issuable under our Incentive Plan by an additional 4.5M shares – an amount expected to last roughly two years. Recently, Institutional Shareholder Services ("ISS") released a report recommending that our shareholders vote against Proposal No. 2. Although we respect the ISS approach, their analysis in recommending against Proposal No. 2 does not take into account a number of relevant and important considerations. It also overstates the dilutive effect of our past equity usage, as well as the potential dilution of our proposal. Our Board unanimously recommends you cast your vote FOR this proposal, noting: The potential dilution including the proposed share increase is below the 50th percentile of our peers. F5's 3-year average unadjusted burn rate (per ISS's proxy research report) is also below the 50th percentile of peers. In FY2022, 86% of grants under the plan went to non-exec employees. Equity compensation is a fundamental element of our pay-for-performance compensation philosophy that incentivizes employees throughout the organization to drive stockholder value. We compete for in-demand cybersecurity, software, SaaS skill sets that require us to leverage equity to attract and retain talent. In all but one of the last several years, we have deployed this equity without diluting our stockholders and cumulatively, our share repurchases have more than offset shareholder dilution. The shares currently available under the Incentive Plan are insufficient to support our projected needs. Executive Summary

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Proposal No. 2Incentive Plan Approval Request

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Potential dilution including the proposed 4.5M share increase is below the 50th percentile of peers 49.6 Percent Rank At 11.66%, potential dilution with the amended plan is below the 50th percentile of 9 peers that requested shares in the most recent plan year. Source: Available public data. Potential Dilution with the Amended Plan F5, Inc. 11.66% Akamai Technologies, Inc. 5.98% Autodesk, Inc. 12.63% Gen Digital Inc. (formerly NortonLifeLock, Inc.) 3.43% Juniper Networks, Inc. 8.17% Palo Alto Networks, Inc. 10.04% Splunk Inc. 12.58% Synopsys, Inc. 12.88% Teradata Corporation 11.71% Workday, Inc. 26.14% 75th Percentile 12.63% 50th Percentile 11.71%

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F5's 3-year average unadjusted burn rate is below the 50th percentile of its peers 42.6 Percent Rank At 2.25% (per ISS's proxy research report), F5's 3-yr average unadjusted burn rate is below the 50th percentile of 16 peers that disclosed a 3-yr average unadjusted burn rate. Source: Available public data 3-yr Average Unadjusted Burn Rate F5, Inc. 2.25% Akamai Technologies, Inc. 1.90% Arista Networks, Inc. 1.22% Autodesk, Inc. 1.20% Gen Digital Inc. (formerly NortonLifeLock, Inc.) 1.39% Juniper Networks, Inc. 2.50% Mandiant, Inc. 7.02% NetApp, Inc. 2.23% Nutanix, Inc. 6.88% Palo Alto Networks, Inc. 4.07% ServiceNow, Inc. 2.28% Splunk Inc. 4.13% Synopsys, Inc. 1.69% Teradata Corporation 3.95% VeriSign, Inc. 0.26% VMware, Inc. 2.31% Workday, Inc. 3.08% 75th Percentile 3.52% 50th Percentile 2.28%

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We ask investors to consider several additional factors related to our requested incentive plan amendment We have a broad-based program of making equity awards under the plan to most employees. In FY2022, 86% of grants under the plan went to non-exec employees. 2 years We estimate the additional shares plus the shares available will last for ~2 years. Current available shares (without amendment) are insufficient for our projected needs. We are growing our employee base responsibly, targeting cybersecurity, software, and SaaS skill sets which remain in high demand and require us to leverage equity to attract and retain talent. 10%GROWTH(FY21-FY22)

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We also ask investors to consider our prior and intended share repurchases Beginning in FY23, we intend to use 50% of our annual free cash flow for share repurchases

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We have significantly transformed our portfolio and our business

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We have driven growth while expanding our solutions portfolio and transitioning to a more software-driven business F5's GAAP Revenue ($ in millions) $1B in security revenue\*, 37% of total revenue FY2022 Milestones \*Security revenue is comprised of standalone security offerings, bundled security offerings and related maintenance. $2.7B in total revenue

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We have built a stronger, more diversified business % of Total Revenuethat is Recurring1 Software as a % of Product Revenue Subscription as a % of Software Revenue FY2017 FY2022 52% 69% 13% 51% 20% 78% 1Reflects reported revenue from recurring sources including software subscriptions, term agreements, utility and service maintenance revenue.

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Executive Compensation

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We have a strong pay-for-performance culture CHANGES FOR FY2023 An Earnings Per Share metric has replaced the prior software revenue growth metric in our long-term incentive program. CHANGES FOR FY2022 We increased the performance-based portion of our CEO's target equity award to 60% from 50% in FY21. Diversity and inclusion metrics comprised 10% of our NEO's target annual cash incentive program. Executive officers are required to hold shares earned as a result of the vesting of equity awards granted in fiscal year 2022 and thereafter for at least one year (even if they have already met ownership and holding guidelines). \* Other NEO Compensation" is an average of the NEOs other than the CEO. Base salary, bonus and LTI are at target. Please refer to the "Cash Incentive Compensation" and "Fiscal Year 2022 Equity Awards" sections in the FY2022 Proxy Statement for information on the values. CEO Compensation Performance v. Service Mix Service Performance FY21 FY22 CEO Compensation Other NEO Compensation\* Salary Bonus LTI FY22 NEO Compensation Mix

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ESG Overview

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Building up a comprehensive program that recognizes F5's full environmental impact Focus Areas: Set science-aligned target in FY22, committing to reduce our absolute scope 1 and 2 emissions 50% by 2030 from a 2021 baseline year Committed to set science-based target by 2030 with the Science Based Target Initiative (SBTi) in FY23 Standardize carbon reporting processes and metrics; and expand volume of data collection to include Scope 3&nbsp;&nbsp;&nbsp;&nbsp;Explore all options for carbon reduction, mitigation and removal Increase breadth of disclosures to Carbon Disclosure Project (CDP) Energy Consumption Scope 1 Natural gas consumed (Therm) Scope 2 Electricity consumed (mWh) Carbon Emissions Scope 1 CO2e (Metric Tons) Scope 2 CO2e (Metric Tons)

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Cultivating a human-first and high-performance culture Female Representation 25.4% Employees Worldwide 24.1% FY21 FY22 We are evolving through Inclusion, Diversity, Equity & Allyship ("IDEA"): F5's second annual Diversity & Inclusion report outlines our "IDEA" framework and provide data on our progress from FY18-22. Our annual companywide diversity commitments correspond with our executive compensation metrics to:&nbsp;&nbsp;&nbsp;&nbsp;Increase female employee representation by 8% worldwide Increase Black employee representation by 26% and Latino(a) employee representation by 11% in the U.S. Increase employee inclusion worldwide&nbsp;&nbsp;&nbsp;&nbsp;Employee Belonging 84% Employees Worldwide 81% FY21 FY22 We prioritize employee engagement, wellness & development: Provide flexibility for employees to choose whether to work in an office, remotely or hybrid Expanded Wellness program, including new mental health resources and additional global vacation days ("Wellness Weekends") Award-winning, employee-directed community engagement program Increased focus on professional development, mentoring and coaching Black Representation U.S. Employees 2.7% FY21 FY22 3.4% Hispanic/Latino(a) Representation U.S. Employees 4.5% FY21 FY22 4.5% Percentage growth determined without regard to any acquisitions or similar transactions during the fiscal year. Measured by "I feel a sense of belonging at F5" in bi-annual employee engagement survey. 2 1

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Our Board is comprised of strategic and diverse leaders Skills & Experience Tenure & Independence Total number of directors: 11 Female Male Male Non-Binary Based on gender identity: 3&nbsp;&nbsp;&nbsp;&nbsp; 8 - Also identify in the categories below: African American or Black - 1 1 - Alaskan Native or Native American - - - - Asian - 2 2 - Hispanic or Latino(a) - 1 1 - Native Hawaiian or Pacific Islander - - - - White 3 4 4 - LGBTQ+ -&nbsp;&nbsp;&nbsp;&nbsp; - - Did not disclose demographic background - - - - Military Veterans: 1&nbsp;&nbsp;&nbsp;&nbsp; Over 60% of board refreshed in the past 5 years Majority of board members identify as diverse Experienced board, aligned to F5's strategy 10 of 11 directors are independent 0 to 4 years 5 to 9 years 10+ years Board Diversity

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QUESTIONS? Contact s.dulong@f5.com

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