Hewlett Packard Enterprise Company · NYSE:HPE
Hewlett Packard Enterprise — Merger or Acquisition (January 2024)
19 slides from Hewlett Packard Enterprise's merger presentation, January 2024
Slide 1: a
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Slide 2: Forward-looking statements
Forward-looking statements This presentation contains “forward-looking statements” within the meaning of the federal securities laws, including safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of th
Slide 3: Non-GAAP Financial Information
Non-GAAP Financial Information This presentation includes non-GAAP financial measures. HPE believes that providing certain non-GAAP financial measures, including guidance on such non-GAAP financial measures, in addition to the related GAAP measures provides investors with greater transparency to the
Slide 4: Today's speakers
Today’s speakers Antonio Neri Rami Rahim Jeremy Cox Kirt Karros President & Chief Executive Officer, Interim Chief Senior Vice President, ‘Chief Executive Officer, Juniper Networks Financial Officer, Hewlett Treasurer & Investor Relations, Hewlett Packard Enterprise Packard Enterprise Hewlett Packar
Slide 5: Supercharges HPE's edge-to-cloud strategy
Supercharges HPE’s edge-to-cloud strategy Edge & Networking Securely connect people, devices, things Wi-Fi, Private 5G, Campus Switching, SD-WAN, SASE (SSE), vVRAN Hybrid Cloud Move data within clouds and edge to multi-cloud Private Cloud, Storage/Data Protection, Compute Data Center Switching, Rout
Slide 6: Strategic transaction transforms HPE
Strategic transaction transforms HPE * — Accelerates HPE’s portfolio mix shift toward higher-growth, higher-margin businesses with large free cash flow potential. 2 . Accelerates HPE’s Hybrid Cloud * Significantly accelerates HPE’s Al and Hybrid Cloud strategy with the integration of HPE Aruba Netwo
Slide 7: Transaction substantially expands Edge & Networking TAM by ~30%
Transaction substantially expands Edge & Networking TAM by ~30% Edge & Networking TAM expan: * Expanded scope and TAM into T1 data center networking, firewalls and routers, plus increased access to enterprise customers, T1 cloud customers, and communication service providers with opportunity to cros
Slide 8: Footprint with Top Cloud Hyperscalers and Top Service Providers
8.4% Footprint with Top 4 Cloud Hyperscalers and Top 50 Service Providers
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✓ ✓ ✓ ● ✓ ✓ ✓ ✓ ✓ ● ● ✓ ✓ ✓ ● ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ● ✓ ✓ ● ✓ ✓ ● ✓ ✓ ✓ ● ✓ ✓ ● ✓ ✓ ✓
Slide 10: Strong new HPE pro-forma financial profile
Strong new HPE pro-forma financial profile Select standalone and pro forma financial metrics Manageable leverage with IG commitment co Hewlett Packard, Enterprise JUN IPEr New HPE = Total Debt / LTM EBITDA Net Debt / LTM EBITDA FY 2023 LTM Q3’CY2023 Se rormat aus aoeae Billi (10/31/23) (09/30/23) sy
Slide 11: Accelerates HPE portfolio mix toward higher-margin, higher-growth solutions
Accelerates HPE portfolio mix toward higher-margin, higher-growth solutions — HewlettPackard HewlettPackard HewlettPackard Hewlett Packard Enterprise Enterprise Enterprise Enterprise Standalone 2023 Pro-Forma* Standalone 2023 Pro-Forma* HPE Networking Revenue (2023) 18% Se 31% $10.9 Total Revenue 32
Slide 12: Transaction highlights
Transaction highlights | $40 per share, in cash, representing $13.6 billion in equity value. Structure & Expected to be funded through combination of new debt, mandatory convertible preferred securities and cash on balance sheet. Financing Supported at announcement via a $11.0 billion 364-day senior
Slide 13: Substantially increases total addressable market
Substantially increases total addressable market Accelerates HPE’s portfolio mix shift toward higher-growth, higher-margin businesses pelling transaction for shareholders, accretive in year 1, post close as
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Slide 15: Financing structure & pro forma capitalization at close
Financing structure & pro forma capitalization at close * $11.0 billion 364-day facility planned to be taken out with $6.5 billion of new senior notes, $1.5 billion of mandatory : . convertible preferred securities, and $3.0 billion of cash aia SiUENTE - Expectation to receive cash proceeds from H3C
Slide 16: Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit Hewlett Packard JU Nl Enterprise FY’23A LTM Q3’CY23 $ millions (10/31/23) (09/30/23 GAAP Gross Profit $10,239 $3,222 Non-GAAP adjustments: Amortization of purchased intangible assets - 58 Stock-based compensation expense 47 26 Disaster (re
Slide 17: Reconciliation of Operating Income to Non-GAAP Operating Income and EBITDA
Reconciliation of Operating Income to Non-GAAP Operating Income and EBITDA Hewlett Packard JUNIPer Enterprise NeTwoRts: FY’23A LTM Q3’CY23 Expected Pro Forma $ millions (10/31/23) (09/30/23) Synergies EBITDA GAAP Operating Income $2,089 $548 Amortization of intangible assets 288 69 Transformation co
Slide 18: Calculation of Total Debt and Net Debt
Calculation of Total Debt and Net Debt Hewlett Packard Enterprise FY'23A $ millions (10/31/23) Notes payable and short-term borrowings $4,868 Long-term debt 7,487 Total GAAP debt 12,355 Fair value adjustment related to hedged debt 151 Unamortized debt issuance costs 30 Total debt 12,536 Cash (4,270)
Slide 19: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Operating Cash Flow to Free Cash Flow co Fearn JUNIPEL FY’23A LTM Q3’CY23 § millions (10/31/23 (09/30/23) Net cash provided by operating activities $4,428 $983 Investment in property, plant and equipment (2,828) (156) Proceeds from sale of property, plant and equipment 602 = Effect
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