Western Digital Corporation · NASDAQ:WDC
Western Digital — Shareholder Meeting (October 2018)
19 slides from Western Digital's shareholder meeting presentation, Oct 9, 2018
Slide 1: Stockholder Update Fall 2018
Stockholder Update Fall 2018 ©2018 Western Digital Corporation or its affiliates. All rights reserved.
Slide 2: Forward-Looking Statements Safe Harbor | Disclaimers
This presentation contains forward-looking statements that involve risks and uncertainties, including, but not limited to, statements regarding: our market positioning; business and financial strategies; market trends; our product and technology development efforts and growth opportunities; and our
Slide 3: Leading Global Data Storage Solutions Provider
Leading Global Data Storage Solutions Provider ©2018 Western Digital Corporation or its affiliates. All rights reserved. Strategically positioned to benefit from the unabated growth in data Rich base of comprehensive data storage technologies with more than 14,000 active patents worldwide Broad prod
Slide 4: Our Strategy Capitalizes on Industry Trends
Our Strategy Capitalizes on Industry Trends Western Digital’s platform is strategically positioned to play a key role in supporting long-term growth trends We continue to pursue a long-term value-creation strategy underpinned by growth in Big Data and Fast Data applications ©2018 Western Digital Cor
Slide 5: Performance Validates Growth Strategy
Performance Validates Growth Strategy 4.7% 1 See Appendix for GAAP to non-GAAP reconciliations. 22% Cash Flow from Operations ($ Billions) 60% Non-GAAP EPS1 We continue to execute on our strategy, driving record results Non-GAAP Gross Margin1 % ©2018 Western Digital Corporation or its affiliates. Al
Slide 6: Spring 2018 Stockholder Engagement Effort
Spring 2018 Stockholder Engagement Effort Timeline of Responsiveness ©2018 Western Digital Corporation or its affiliates. All rights reserved. Prior to 2017 Annual Meeting 2017 Annual Meeting Following 2017 Annual Meeting June 2017: Adjustments made to 2016-2017 PSUs to reflect impact of the SanDisk
Slide 7: Fiscal 2018 Executive Compensation Overview
Fiscal 2018 Executive Compensation Overview ©2018 Western Digital Corporation or its affiliates. All rights reserved. Fiscal 2018 Executive Compensation Program Overview Pay Elements Compensation Vehicle Measurement Period Performance Link Base Salary Cash Fixed Compensation Short-Term Incentive Pro
Slide 8: Fiscal 2018 Pay Aligned with Performance
Fiscal 2018 Pay Aligned with Performance ©2018 Western Digital Corporation or its affiliates. All rights reserved. Pay Element Fiscal 2017 Fiscal 2018 Year-over-Year Change Base Salary $1,150,000 $1,250,000 +8.7% STI Award (based on amount earned) $2,932,500 $2,175,000 (25.8%) LTI Award1 (at target
Slide 9: Actions Taken in Response to Feedback
Actions Taken in Response to Feedback Stockholder Feedback Received Board Actions in Response Based on the feedback received from our stockholders, our Compensation Committee implemented a number of meaningful changes to our executive compensation program for fiscal 2019 ©2018 Western Digital Corpor
Slide 10: Fiscal 2019 Executive Compensation Program Overview
Fiscal 2019 Executive Compensation Program Overview Pay Element Compensation Vehicle Measurement Period Performance Link Base Salary Cash Fixed compensation Short-Term Incentive Program Cash One year Non-GAAP Net Income Long-Term Incentive Program PSUs CEO (60%) Other named executive officers (50%)
Slide 11: Transition to Three-Year PSU Vesting
Transition to Three-Year PSU Vesting ©2018 Western Digital Corporation or its affiliates. All rights reserved. Grant Year LTI Type 2017 2018 2019 2020 2021 2022 2023 2016 PSUs (2-year vest) 2017 PSUs (2-year vest) Introduce new Performance Plan 2018 PSUs (3-year vest) 2019 PSUs (3-year vest) 2020 PS
Slide 12: Board Composition Reflects our Evolving Business
Board Composition Reflects our Evolving Business Industry Experience 9/9 directors Risk Management 9/9 directors IT & Cybersecurity 5/9 directors Executive-Level Leadership 9/9 directors Human Resources Management 7/9 directors Business Development 9/9 directors Finance & Accounting 9/9 directors Ma
Slide 13: Compensation and Governance Best Practices
Compensation and Governance Best Practices Annual director elections Proxy access bylaw Majority vote standard Strong independent Board leadership and oversight, which includes, an independent Chairman and a Lead Independent Director with a clearly defined role Eight independent director nominees of
Slide 14: We Ask For Your Support at the 2018 Annual Meeting
We Ask For Your Support at the 2018 Annual Meeting ©2018 Western Digital Corporation or its affiliates. All rights reserved. Western Digital values your support on the following ballot items Our Board recommends: A vote FOR Proposal 1 to elect each of the nine director nominees named in the proxy st
Slide 15: Appendix
Appendix ©2018 Western Digital Corporation or its affiliates. All rights reserved.
Slide 16: GAAP to Non-GAAP Reconciliation Reference
GAAP to Non-GAAP Reconciliation Reference Year Ended June 30, June 29, 2017 2018 (in millions, except share amounts; unaudited) Revenue $ 19,093 $ 20,647 Reconciliation of non-GAAP gross margin: GAAP gross profit $ 6,072 $ 7,705 Amortization of acquired intangible assets 1,003 1,022 Stock-based comp
Slide 17: GAAP to Non-GAAP Reconciliation Reference
GAAP to Non-GAAP Reconciliation Reference This presentation contains the following financial measures that are not in accordance with U.S. generally accepted accounting principles (“GAAP”): non-GAAP gross margin, non-GAAP net income and non-GAAP diluted income per common share (“Non-GAAP measures”).
Slide 18: GAAP to Non-GAAP Reconciliation Reference
GAAP to Non-GAAP Reconciliation Reference Acquisition-related charges. In connection with the company's business combinations, the company incurs expenses which it would not have otherwise incurred as part of its business operations. These expenses include third-party professional service and legal
Slide 19: Delivering the possibilities of data
Insights Machine Learning Precise Predictions Real-Time Results Protection Automation Anywhere Anytime Analytics Context Aware ©2017 Western Digital Corporation or its affiliates. All rights reserved. Confidential. Delivering the possibilities of data ©2018 Western Digital Corporation or its affilia