Everpure, Inc. · NYSE:P

Everpure — Pure Storage — Investor Day (June 2017)

90 slides from Everpure's investor day presentation, Jun 13, 2017

  1. Slide 1: Accelerate: Investor Day

    PURE** 5 //ACCELE RATE? THE NEW. POSSIBLE INVESTOR DAY ©) purestorace

  2. Slide 2: Forward Looking Statements and Non-GAAP Information

    FORWARD LOOKING STATEMENTS AND NON-GAAP INFORMATION This presentation contains “forward4ooking” statements that are based on our beliefs and assumptions and on information currently available to us. Such forward4ooking statements include statements concerning our possible or expected future financia

  3. Slide 3: Agenda

    AGENDA OPENING REMARKS GO-TO MARKET STRATEGY CUSTOMER PANEL INNOVATION BREAK FINANCIAL UPDATE CLOSING REMARKS Q&A RECEPTION 2017 PURE STORAGE INC. © purestorace

  4. Slide 4: Data: The New Strategic Advantage

    DATA THE NEW STRATEGIC ADVANTAGE _

  5. Slide 5: Data-driven applications: video, self-driving cars, IoT, AI

    GENE SEQUENCING EDA, SIMULATION & MACHINE VIDEO SELF-DRIVING CARS INTERNET REAL TIME TESTING LEARNING & AI OF THINGS

  6. Slide 6: Worldwide IT Infrastructure Hardware Spend by Consumption Model

    Worldwide IT Infrastructure Hardware Spend by Consumption Model (Compute, Networking, Storage) 2019 Cloud IT Hardware Spend $125.9B, Storage share: 31% @ coos ‘adamazon " age Ar laaS/PaaS inturt, SaaS, Traditional Consumer On-Prem IT Cloud o vmware ™80% Addressable (imam Mega-Scale Cloud 2017 PURE S

  7. Slide 7: 2020: On the Edge & in the Multi-Cloud

    2020: ON THE EDGE & IN THE MULTI-CLOUD 50+ZB NEW DATA 2.5ZB INTERNET TRAFFIC/YEAR MAJORITY OF DATA STAYS ON THE EDGE & INTEROPERATES WITH PUBLIC CLOUD SOURCES: IDC & CISCO © purestorace

  8. Slide 8: Mainframe and client/server era vs cloud era

    PERFORMANCE APPLICATION ARCHITECTURE SCALING MANAGEMENT SOFTWARE & EXTENSIBILITY CONSUMPTION MODEL 2017 PURE STORAGE INC. MAINFRAME & CLIENT/SERVER-ERA DISK-OPTIMIZED (ms) DATA SILOED TO EACH SPECIFIC APPLICATION CAPACITY AND PERFORMANCE PURCHASED UP FRONT MANUAL COMPLEX AND CLOSED ECOSYSTEM RE-BUY

  9. Slide 9: Uniquely Positioned for the Future

    UNIQUELY POSITIONED FOR THE FUTURE = 3S 4 iL Se Os: 99.9999% aaa (© sea BIG DATA NIMUIGRNS Gre IOPS FOR HIGHEST SELF DRIVING SUBSCRIPTION TO. HYPER-DENSE BANDWIDTH DEEP LEARNING AVAILABILITY MANAGEMENT INNOVATION DATA CENTER ARCHITECTURE : SOFTWARE DRIVEN; HARDWARE ACCELERATED r, j p (like the Publi

  10. Slide 10: Redefining Data Center Architecture

    REDEFINING DATA CENTER ARCHITECTURE 1 Rack >1300 Cores 3 PB Data Us latency Phil f= = i i= elena e& = a = f= "O : = = = =: = = = ' = © 2017 PURE STORAGE NC © purestorace

  11. Slide 11: Multi $B Profitable Company

    MULTI $B $35B TAM + GO-TO MARKET EXECUTION + INNOVATION = PROFITABLE COMPANY

  12. Slide 12: Building Our Gimme for the Data Platform

    BUILDING OUR GIM E FOR THE DATA PLATF DAVID HATFIELD, PRESIDENT KEVIN DELANE, VP GLOBAL SALES MATT BURR, VP PLATFORM SOLUTIONS ©) puresTorace

  13. Slide 13: Sales & Marketing Personnel

    SALES & MKTG PERSONNEL COUNTRIES CHANNEL AEs + SEs GROWTH MARKETS * 500+ CLOUDS" * NEXT GEN DATA * CLOUDIFICATION OF IT[@> SYSTEM ENGINEERS CHANNEL MANAGERS INSIDE SALES ALLIANCES, SALES OPERATIONS PURESTORAGE

  14. Slide 14: Key Plays, Sales Teams, Key Segments

    KEY PLAYS SALES TEAMS KEY SEGMENTS A $5B+ 10,001 employees $500M-$5B, 1000 - 10,000 employees <$500M, 500 - 999 employees NORTH AMERICA, LATAM, EMEA, APJ Partners, GSI, OEM/Embedded, Alliances PURESTORAGE

  15. Slide 15: A Strong Partner Ecosystem

    A STRONG PARTNER ECOSYSTEM SOLUTION GLOBAL SYSTEMS PROVIDERS INTEGRATORS | DISTRIBUTORS : . . = Ghyv ae AG accenture . samagonuencr | | ARGV PIGKER nr&PRESIDIO. | | @avae cr win) > commtech Ax FORSYTHE mn DYE Dxc.technology ZIBRIS a APPLICATION INFRASTRUCTURE ALLIANCES ALLIANCES am wterosot ORACES'

  16. Slide 16: Customer strength and momentum

    NOTES: All Key Customer Strength values are approximate | Top 25: Within 18 months after initial purchase of $1 | All Customer Within 24 months of initial purchase of $1

  17. Slide 17: Customers Wide and Deep

    CUSTOMERS WIDE AND DEEP Linkedf{J Shutterfly. GMOCLOUD HERMIMERGERMARKET nielsen x TT eT EE @niftye NTTDaTa despegaricome X9Ctly — paylocity @ We) = SoftBank - [enero Pon (ARSIERAS U TAX Adobe | SAAS — Eflcom: = Smacstadium § Sk“etecom Locos | ™ OPTUS ;édbox. hulu hi oN E - -Mobile- ai @LGcn Q@syman

  18. Slide 18: Customer Growth: Plenty of Whitespace

    CUSTOMER GROWTH: PLENTY OF WHITESPACE PROVEN MOMENTUM TO ACQUIRE CUSTOMERS G2000 EARLY INNINGS G2000 ACQUISITION OVER TIME G2000 PENETRATION (Q@1 FY18) 240 ce) 83% 3-YR CAGR 166 Customer Growth 92 . a Qi Qi Qi FY 2015 2016 2017 2018 ©) purestorace

  19. Slide 19: Sales Productivity by Start Class

    Average Bookings per Rep (TTM) SALES PRODUCTIVITY BY START CLASS PRODUCTIVITY: STILL EARLY INNINGS srvson con @ srvsoue ROGIER es lee Target Model GROWTH @ ww i ™60% oF SALES FORCE 3 18 36 HAS <15 MONTHS Months since cohort start date TENURE SALES FORCE DISTRIBUTION BY START CLASS |Pre FY 2017 Conon

  20. Slide 20: Growth Agenda Fueled by Execution

    GROWTH AGENDA FUELED BY EXECUTION PIPELINE PARTNERSHIPS PLATFORM ©) purestorace

  21. Slide 21: FlashStack: In Overdrive

    FLASHSTACK: IN OVERDRIVE ONLY Cl BUILT FOR THE CLOUD ERA +7 CVDs + over 15 «Leverages UCS (eo) Ref. Architectures Innovations «Incorporating eACI, UCS-D, Oo FlashBlade for +CloudCenter Oracle DW OneCall Support YoY Customer FlashStack in Cisco | °/% Support Growth Labs Globally 80+ Sponsorships / Jo

  22. Slide 22: Repeatable Success for New Product

    REPEATABLE SUCCESS FOR NEW PRODUCT INTRODUCTION FLASHBLADE APPX. 2X FASTER THAN FLASHARRAY’S RAMP AT SIMILAR TIME FlashArray - 1st 7 Qtrs Bookings @FlashBlade - 1st 4 Qtrs Bookings QIFY'8 FlashBlade Directed sean Q2 FY14 Flash Array General Availability Q2 FY17 FlashBlade Directed Availability 1 6 7

  23. Slide 23: Multi $B Profitable Company

    MULTI $B $35B TAM + GO-TO MARKET EXECUTION + INNOVATION = PROFITABLE COMPANY

  24. Slide 24: Through Our Customers' Eyes

    THROUGH OUR CUSTOMERS’ EYE MATT HARRIS HEAD OF IT, MERCEDES-AMG PETR ANDY NALLAPPAN VICE PRESIDENT AND CIO, BROADCOM JUSTIN STOTTLEMEYER DIRECTOR, INFRASTRUCTURE, DISTINGUISHED ENGINEER, INTUIT SP MODERATORS: KEVIN DELANE, VP GLOBAL SALES MATT BURR, VP PLATFORM SOLUTIONS ©) puresTorace

  25. Slide 25: Cloud-Era Flash: Widening Our Innovation Lead

    CLOUD-ERA FLASH WIDENING OUR INNOVATION L

  26. Slide 26: Dawn of a New Cloud Era

    DAWN OF A NEW CLOUD ERA YET THE OLD NEVER REALLY DISAPPEARS... Se VIRTUALIZATION 1990s-2000 — 2000s-2010s CLOUD 2010-20208 oe ee C0 VIRTUALIZATION WEBSCALE APPLICATIONS io Le A rr 0 0 0 STORAGE 000 0 STORAGE © 2017 PURE STORAGE INC. ©) purestorace

  27. Slide 27: The Data Platform for the Cloud Era

    y, MULTECLOUD. WEBSCALE APPS a8 #8 Ee fava of ge Ege CS TEST & DEV 0 BUSINESS ‘APPS APPLICATIONS YOUR ©) purestorAce © Puret” [eal 6 5 REST] a seL OBJECT] a rae] a BLOCK | x THE DATA PLATFORM FOR THE CLOUD ERA (>> DIRECTFLASH SECURE PROTECT ‘ASSURE tae | REDUCE

  28. Slide 28: Cloud Connected, Hardware Accelerated

    CLOUD CONNECTED C» Puret’ ~» DirectFlas Do WW HARDWARE ACCELERATED © 2017 PURE STORAGE INC. PURESTORAGE’

  29. Slide 29: Today's Innovation Announcements

    TODAY’S INNOVATION ANNOUNCEMENTS SOFTWARE TAKES CENTER STAGE —__ NEXT GEN DATA 500+ LEADING CLOUDS CLOUD-IFICATION OF ENTERPRISE STORAGE 2017 PURE STORAGE INC. BIG DATA> 8 BIG INTELLIGENCE i. NEW TIER 1 5X FLASHBLADE SCALE Purityeey 5X FLASHBLADE PERFORMANCE FAST OBJECT RAPID EXPANSION OF NEW FEATUR

  30. Slide 30: From Big Data to Big Intelligence

    © 2017 PURE STORAGE INC. FROM BIG DATA TO... BIG INTELLIGENCE —_— NEW FLASHBLADE FEATURES FOR” EXPANDING DATA-DRIVEN USE CASES © purestorace

  31. Slide 31: Dawn of Industrial Revolution

    DAWN OF 44 INDUSTRIAL REVOLUTION BIG DATA, MODERN ANALYTICS DRIVING CHANGE IN EVERY INDUSTRY 1st Revolution 1760-1820's Steam Power Rural to Urban 2"¢ Revolution 1870-1914 Mass Prod., Electricity Urban to Analog 3'4 Revolution 1980-2010 PC, Automation Analog to Digital 4 Revolution 2010-now Al, Big

  32. Slide 32: FlashBlade use cases

    i | —| dies T—L |_ WORLD'S FASTEST ieee oo Oe ONE OF THE RACE CARS [A Ney WORLD'S LEADING Al | [0 [ey yp SUPERCOMPUTERS | ‘ll wr Th | a | 1) \) LARGE-SCALE ANKING SOFTWARE & EUS WORLD’S MOST ADVANCED PLANES, STRAINS, AUTOMOBILES, AND ROCKETS 17 PURE STORAGBINC. << Fad © purestorace

  33. Slide 33: FlashBlade use cases: medical imaging, webscale

    | » | MEDICAL IMAGING & ae ANALYTICS AT WORLD’S FASTEST WEBSCALE DATABASE ~ N 2017 PURE STORAGE INC. FLASH SPEED RESTORES WEBSCALE GAMING AND POLICE BODY CAMERAS 1 mies 1 | SERVICES se ©) purestorace’

  34. Slide 34: Slide 34

  35. Slide 35: Introducing Purity//FB 2: Blade-Scale FlashBlade

    LG INTRODUCING Purity-egy 75 BLADE-SCALE FLASHBLADE AVANTE EEE ARMA ME ee 5X BIGGER 5X FASTER STILL SIMPLE 8PB NAMESPACE 75 GB/s READ INTEGRATED 100 GB/S FABRIC BILLIONS OF FILES / OBJECTS 25 GB/s WRITE 11P ADDRESS 7.5M IOPS EVERGREEN Note: DA expected in @4, 2017. Delivery dates and features subjec

  36. Slide 36: Introducing Fast Object Store

    (27 INTRODUCING Purity egy FAST OBJECT STORE ULTRA-FAST S3-COMPATIBLE OBJECT PROTOCOL exit | S4Q0X >400X NEXT-GEN DEVELOPERS F AST E R FAST E R OBJECT STORAGE TIME TO FIRST BYTE INDEXING 1M OBJECTS vs LEADING WEBSCALE COMPANY peee CLOUD PRIMARY STORAGE AWS $3 EXISTING SOLUTION VS FLASHBLADE OBJECT S

  37. Slide 37: FlashBlade Speaks Object Natively

    FLASHBLADE SPEAKS OBJECT NATIVELY PURITY FOR FLASHBLADE POWERED BY MASSIVELY PARALLEL, DISTRIBUTED ARCHITECTURE eoee Purity/Feey oA On 4® NATIVE OBJECT SoRIre NATIVE NFS/SMB KEY-VALUE DATABASE STORE FOR DISTRIBUTED PARTITIONS ey FYOTrrrrrrrrrrrrrrri . Billions vawe | ft ot te tt te OF PARTITIONS ©)

  38. Slide 38: Rapid Maturing of Enterprise Features

    RAPID MATURING OF ENTERPRISE FEATURES FLASHBLADE MATURING QUICKLY FOR GENERAL PURPOSE USE CASES EGY PurityFeey >svB} SMB = LDAP ©. NETWORK | LOCK MANAGER =i | HTTP 22 Ipv6 ‘7, SNAPSHOTS ©) purestorace

  39. Slide 39: in oO = a 5S Ee n uw « > a

    in oO = a 5S Ee n uw « > a

  40. Slide 40: Enterprise Replication

    99.9999% ENTERPRISE REPLICATION QoS TRADITIONAL TIER 1 PURPOSE- BUILT AFAs RELIABILITY MEM EDUPE, COMPRESSION SIMPLE, AUTOMATED, OPEN BUILT FOR THE CLOUD INTEGRATION CLOUD ERA NVMe, NVMe/F © purestorace 2017 PURE STORAGE INC.

  41. Slide 41: 2017 PURE STORAGE INC.

    2017 PURE STORAGE INC. ©) purestorace

  42. Slide 42: ActiveCluster: Synchronous Replication Done the Pure Way

    -— ActiveCluster SYNCHRONOUS REPLICATION DONE THE PURE WAY

  43. Slide 43: Introducing Purity//FA ActiveCluster

    EGY INTRODUCING Purity/F47 ActiveCluster > Purell CLOUD MEDIATOR Multi-Site Active / Active Stretch Cluster Ey Zero RPO, Zero RTO, Zero $€ ¥£, Zero Additional HW DS Note: GA Expected in @3, 2017. Delivery dates and feature specifications subject to change.

  44. Slide 44: ActiveCluster: Simplicity

    INTRODUCING Purity/F47 ActiveCluster 4 | Kee DSO STEPS TO NEW STRETCH CLUSTER EXTRA COST SETUP COMMAND SIMPLICITY

  45. Slide 45: Noisy Neighbor Protection, Performance Classes, Limits

    (NOISY NEIGHBOR PROTECTION) (PERFORMANCE CLASSES) (LIMITS)

  46. Slide 46: Enterprise Replication

    99.9999%@ ENTERPRISE REPLICATION @ Gos TRADITIONAL ° @ TIER 1 PURPOSE- BUILT AFAs RELIABILITY ED @ 0:0UP=, compression BUILT FOR THE SIMPLE, AUTOMATED, OPEN CLOUD ERA CLOUD INTEGRATION NVMe, NVMe/F AaTRURESTORACEINE © purestorace

  47. Slide 47: Slide 47

  48. Slide 48: VMware, Docker, Microsoft integrations

    VMWARE DOCKER MICROSOFT VVols, SPBM PERSISTENT ODX API VREALIZE CONTAINERS PURESTORAGE’

  49. Slide 49: Introducing Purity//FA Snap & CloudSnap

    AGT INTRODUCING Purity/FA7 = Snap & CloudSnap $3 Glacier oc. i 2 coos IIIT —_" = : CLOUDSNAP ~~ om i u «ORR LOCAL AINE CITT : SNAP e SNAP SNAP b TO FLASHARRAY TO FLASHBLADE TO NFS | DELTASNAP @ brik actifio 7 OPEN API 0 coun Snapshot to heterogeneous targets, natively-managed with Purity protection

  50. Slide 50: Purity//FA CloudSnap

    Purity/F47 CloudSnap EFFORTLESS BACKUP, RESTORE, MIGRATION OR DR TO PUBLIC CLOUD Natively Cloud Connected ¢ Backup directly to public cloud * Restore directly from public cloud * Hydrate CloudSnaps into native format: EBS, S3, or Glacier * Disaster Recovery in public cloud * Migrate workloads to/fro

  51. Slide 51: Introducing Purity//FA Run

    AEX INTRODUCING Purity/f4/ Run OPEN PLATFORM FOR RUNNING APPLICATIONS ON PURITY SFC] ra (0) (0 (a Run VMs and Containers on Purity: >. a * Highly available PURITY // RUN [>] * Dedicated CPU and Memory space * Complete security & performance isolation PURITY mH + Flexible, open use cases: SIGIWAGIE S

  52. Slide 52: 100% NVMe FlashArray

    x ‘ > = 100% NVMe FlashArray 2g DRIVING AFA DIFFERENTIATION & WEBSCALE USE CASES Xx

  53. Slide 53: Introducing DirectFlash NVMe/F Expansion Shelf

    INTRODUCING ©) DirectFlash NATIVE NVMe/F EXPANSION SHELF vgonewannce ne ote xpected in Q4, 2017. Delivery dates and bject tc g © purestorase

  54. Slide 54: Introducing FlashArray DirectFlash Shelf

    i ' INTRODUCING FlashArray £y sae ©) DirectFlash ) Gbis, co) DirectFlash _ . _ NATIVE NVMe/F ol: i al | ie = i EXPANSION SHELF ef: T i | i 1) za 4 28 x DirectFlash Modules Up to 512TBs Raw (1.5 PBs usable) = with 18.3 DirectFlash Modules 2: GA expected in Q4, 2017. Delivery dates and features subjec

  55. Slide 55: Tech Preview: End-to-End NVMe

    © 2017 PURE STORAGE INC. TECH PREVIEW: stftitfin 5 Ul 4) PURESTORAGE END-to-END NVMe NVMe over Fabrics RoCEv2 at 40 Gb/s ©) purestorace’

  56. Slide 56: Tomorrow's Cloud Block

    CULT tI 1! Tomorrow’s Cloud Block 1,300 50TB 2.6PB CORES DRAM FLASH Sa NU ea = te See SW Ge ee te BE 100-Gb/s Ethernet + NVMe/E us latency end-to-end AaTIRURESTOREGETE © purestorace

  57. Slide 57: Reliability

    RELIABILITY @ 99.9999% @ ActiveCluster @ QoS +VVOLs @® Cloud Integration Supe @ NvMe + NVMe/F @ Evergreen TRADITIONAL TIER 1 el BUILT FOR THE CLOUD ERA © purestorace

  58. Slide 58: Changing the Storage Experience with IoT + AI

    CHANGING THE STORAGE EXPERIENCE WITH loT + Al © puresTorace’

  59. Slide 59: Pioneering IoT Approach to Storage

    PIONEERING lo. APPROACH TO STORAGE USING >1 TRILLION DAILY DATA POINTS TO AVOID >500 SEVI INCIDENTS TO DATE! > @ 5 SEARCH EACH ARRAY MATCH! @ IN REAL-TIME FOR ISSUES Es YOU ARE NOTIFIED SUPPORT NOTIFIED, FINGERPRINT C E) ~ TICKET OPENED EACH KNOWN ISSUE (NOW 100s) at tt - NESS We “ «(

  60. Slide 60: Performance Sizing: The Final Frontier

    BUT SINCE THE DAWN OF STORAGE... PERFORMANCE SIZING HAS BEEN THE FINAL FRONTIER TOO MANY COMPLEX INTERACTION OVER-PROVISIONING VARIABLES & INTER-DEPENDANCIES = WASTED EXPENSE |OPS or MB/s? ‘ Hevige hl tage rer > Replication RPO? She ee ee UNDER-PROVISIONING pI a> [, >e-ty}de Overwrite rate? LITTLE'S

  61. Slide 61: Introducing Global Predictive Intelligence

    ABW | RODUCING GLOBAL PREDICTIVE INTELLIGENCE C> Pure ai RS | MANAGE ANALYZE SUPPORT @—-_2—6 meets SENSOR REAL-TIME _ DATA LAKE AI ENGINE en ae Coa Pi

  62. Slide 62: Workload DNA

    WRITE B/W <9 WRITE IOPS a7 WRITE V/O SIZE Fah te INTRODUCING A READ B/W READ I/O SIZE >1,000 MEASURES INLINE DEDUPE RATE WORKLOAD DNA INLINE COMPRESSION RATE SPACE USAGE TOTAL DATA REDUCTION AND 100s MORE... © purestorace’ © 2017 PURE STORAGE INC, * Th of

  63. Slide 63: Workload Planner

    Forecast I Load Planner I Load Planner Penk Load Ss WORKLOAD PLANNER Capacity Planner nee INDUSTRY FIRST: LOAD AND CAPACITY PREDICTION TO HELP YOU OPTIMIZE AND PLAN coreto ried * Complete forecast - load and capacity - nee prediction per FlashArray ——— * Get actionable insight on when performance or

  64. Slide 64: Delivering Innovation, Expanding Opportunities

    DELIVERING INNOVATION, EXPANDING OPPORTUNITIES SOFTWARE TAKES CENTER STAGE Cc > 5X FLASHBLADE SCALE Purity/Feey NEXT-GEN DATA @ 5X FLASHBLADE PERFORMANCE BIG DATA> FAST OBJECT BIG INTELLIGENCE RapPID EXPANSION OF NEW FEATURES 500+ LEADING CLOUDS : : NEW SOFTWARE Purity/agy CLOUD-IFICATION OF CLOUD A

  65. Slide 65: Continuing Industry Firsts, Recognized Leadership

    CONTINUING INDUSTRY FIRSTS RECOGNIZED LEADERSHIP RECORD PATENT CSAT DEPTH

  66. Slide 66: Multi $B Profitable Company

    MULTI $B $35B TAM + GO-TO MARKET EXECUTION + INNOVATION = PROFITABLE COMPANY

  67. Slide 67: Road to 2020: Financial Update

    ROAD TO 2020: » / FINANCIAL UeORTE- Y

  68. Slide 68: From IPO to $1B

    FROM IPO TO $1B

  69. Slide 69: Revenue and Operating Profit

    REVENUE ¢ms) Product 728 Support and Maintenance 440 174 6 43 FY 2013 2014 2015 2016 2017 OPERATING PROFIT (non-GAAP) (gms ana %) -361% (127) (141) FY 2013 2014 2015 2016 2017 INDUSTRY LEADING GROSS MARGIN (non-GAAP): (FY17) PURESTORAGE

  70. Slide 70: Strong Start to the Year

    STRONG START TO THE YEAR v. Q1 GUIDE Y/Y (@ Q2 GUIDE Q1FY18 “Tay Q2 FY18 (GUIDE) MIDPOINT) REVENUE $183M +4,3% T $218M +33.6% GROSS MARGIN 66.0% +1 ppt T 65.0% -1.3 ppt (non-GAAP) OPERATING MARGIN -16.7% +8.3 ppts ff -14.0% +5.3 ppt (non-GAAP)

  71. Slide 71: Strong Start Supports $1B Guide

    STRONG START SUPPORTS $1B GUIDE FULL YEAR DRIVERS (% in non-GAAP) FY18 (GUIDE) | FY18 Y/Y (GUIDE) REVENUE GROSS MARGIN (non-GAAP) OPERATING MARGIN (non-GAAP) * Repeat Business * FlashBlade New Product Ramp + Software Innovation * Platform Selling $1B 37% Y/Y 65% Appt : +6ppts -7% (47% rate improveme

  72. Slide 72: Road to $2B+

    ROAD TO $2B+ GROWTH, INNOVATION, AND PROFITABILITY FOR LONG-TERM SUCCESS sow pure sronace ns ©) purestorace

  73. Slide 73: Multi $B Profitable Company

    MULTI $B $35B TAM + GO-TO MARKET EXECUTION + INNOVATION = PROFITABLE COMPANY

  74. Slide 74: The Road Ahead

    THE ROAD AHEAD REVENUE OPPORTUNITY FY 2014 440 174 2015 2016 2017 {Guigonce {ii id-Poi mt f 1,000 2018 >30% 3 Yr CAGR% 2019 2020 >$2B Opportunity 2021 2017 PURE STORAGE IN FORMULA FOR SUCCESS MARKET + EXECUTION + INNOVATION ©) purestorace

  75. Slide 75: Growth Scenarios Drive >30% 3-Year CAGR

    NUMEROUS FLASHARRAY AND FLASHBLADE GROWTH SCENARIOS DRIVE >30% 3 YEAR CAGR 1X 2X 10% 40% FY

  76. Slide 76: Leverage in Model

    LEVERAGE IN MODEL BUILDING A PROFITABLE MULTI-BILLION DOLLAR COMPANY OP MARGIN (non-GAAP) (% oF REVENUE) (swine) +6% - 10% OP MARGIN* -73% RANGE -132% FY 2014 2015 2016 2017 2018 2019 2020 2021 GM S&M R&D G&A OP MARGIN 66% 44% LONG TERM MODEL * 63-68% 25-30% 15-20% 5-7% 15-20% LEVERAGE DRIVERS Curre

  77. Slide 77: The Details

    THE DETAILS Seasonality, Share Count, & ASC 606 sow pure sronace ns ©) purestorace

  78. Slide 78: P&L Seasonality

    P&L SEASONALITY Qi Q2 Q3 a4 REVENUE Low Medium Medium/ high High INCREMENTAL OPEX INVESTMENTS High High Low Low OPERATING MARGIN, wes » Highest (Non-GAAP) ©) purestorace

  79. Slide 79: Other Seasonality: Cash Flow

    OTHER SEASONALITY — CASH FLOW FY17 FREE CASH FLOW - % of Revneue FREE CASH FLOW High Medium High (ex ESPP) sow oune storace ne ©) purestorace

  80. Slide 80: Other Seasonality: Cash Flow

    OTHER SEASONALITY — CASH FLOW FY17 FREE CASH FLOW - % of Revneue -12.4 11.5 -18.2 FREE CASH FLOW High (ex ESPP) Low Medium High ESPP IMPACT Negative _ Positive Negative Positive sow pune svonace we ©) purestorace

  81. Slide 81: Other Seasonality

    OTHER SEASONALITY Q1 ey Q3 Q4 SHARE GRANTS High Low Medium Low More Hiring Less Hiring * Primary * Secondary Employee Employee Refresh Refresh * Exec Refresh * ESPP Purchase * ESPP Purchase ©) purestorace

  82. Slide 82: Share Count

    SHARE COUNT ACHIEVING PROFITABILITY IMPACTS EPS COMPUTATIONS WHEN EPS IS NEGATIVE BASIC SHARES FULLY DILUTED TSM SHARE ADJUSMENT EPS SHARE (Varies with 90-Day Trailing Stock Price) WHEN EPSIS POSITIVE SHARES COUNT TSM ADJUSTMENT SHARE PRICE (M of Shares) = $10.00 48 $12.00 46 $14.00 43 $16.00 40 $18

  83. Slide 83: ASC - An Early Look

    ASC 606 - AN EARLY LOOK KEY HIGHLIGHTS KEY AREAS OF IMPACT ¢ EFFECTIVE Q1FY2019 REVENUE MODEST AMOUNT OF RATABLE SUPPORT INTO ¢ ACCRETIVE TO BOTH REVENUE AND UPFRONT PRODUCT REVENUE GIVEN ELIMINATION PROFIT, BUT IMPACT VERY MINIMAL OF CONTINGENT REVENUE CONTRACT COSTS (e.g. COMMISSIONS) DEFERRED OVE

  84. Slide 84: Multi $B Profitable Company

    MULTI $B $35B TAM + GO-TO MARKET EXECUTION + INNOVATION = PROFITABLE COMPANY

  85. Slide 85: Closing Remarks

    CLOSING REMARKS— |“

  86. Slide 86: Multi $B Profitable Company

    MULTI $B $35B TAM + GO-TO MARKET EXECUTION + INNOVATION = PROFITABLE COMPANY

  87. Slide 87: ©) puresTorace

    ©) puresTorace

  88. Slide 88: Appendix

    /ACCELERATE? (| / APPENDIX ©) purestorace

  89. Slide 89: GAAP to Non-GAAP Reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Full Years Fiscal Quarter ($ in thousands) FY14 8) FY15 Le) FY16 Le) FY17 1) QUFY18 fe) Product gross margin (GAAP) $19,254 491% $91,411 59.0% $242,863 64.6% $395,851 671% $91780 66.3% Add: SBC 253 0.6% 303 02% 276 01% 601 01% 397 0.2% Add: Payroll tax related to sto

  90. Slide 90: GAAP to Non-GAAP Reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS (S$ in thousands) R&D (GAAP) Less: SBC Less: Payroll tax related to stock-based activities R&D (non-GAAP) S&M (GAAP) Less: SBC Less: Payroll tax related to stock-based activities S&M (non-GAAP) G&A (GAAP) Less: SBC Less: Payroll tax related to stock-based activities

Pure Storage — Investor Day (June 2017) on 6ix