Slide 1: Quantum Investor Presentation January 2017
1 © 2017 Quantum Corporation QUANTUM INVESTOR PRESENTATION January 2017
Slide 2: Safe Harbor
2 © 2017 Quantum Corporation Safe Harbor Safe Harbor Statement “Safe Harbor” Statement under the U.S. Private Securities Litigation Reform Act of 1995: This presentation contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Specifically, wi
Slide 3: Key Investment Highlights
3 © 2017 Quantum Corporation Key Investment Highlights Profit/Cash-Generating Data Protection Portfolio, Install Base and Channel High-Growth Scale-out Tiered Storage Portfolio 37-Year Storage Specialist and Leader in Key Markets Scalable Financial Model Providing Significant Leverage
Slide 4: Who We Are / What We Do
4 © 2017 Quantum Corporation Who We Are Enable customers to capture, share and preserve digital assets over their entire lifecycle, creating new opportunities to maximize data’s business value What We Do A leading expert in highly scalable storage, data protection and archive focused on the most dem
Slide 5: A Rich History in Storage
5 © 2017 Quantum Corporation A Rich History in Storage 2014 HDD devices (Sold business in 2001) Tape-based data protection Disk-based data protection systems High-performance storage & data mgmt. software (Origins from 2000) Cloud-based storage services Multi-tier storage solutions for end-to-end wo
Slide 6: Quantum's Business Today
6 © 2017 Quantum Corporation Quantum’s Business Today SPECIALIZED STORAGE Data Protection Primary Customer: IT Departments Scale-out Tiered Storage Primary Customer: Line of Business High-performance, multi-tier storage solutions for enabling line-of-business creativity, productivity and efficiency
Slide 7: Quantum Overview
7 © 2017 Quantum Corporation Quantum Overview FY16 Revenue: $476M Data Protection 64% Scale-out Tiered Storage 27% Royalty 9% Non-royalty: 90% branded, 10% OEM 60% North America, 30% EMEA, 10% APAC • Fiscal Q2’17 results – Total revenue of $135M, up 15% Y-Y Scale-out tiered storage revenue grew 56
Slide 8: Proven Market Leader
8 © 2017 Quantum Corporation Proven Market Leader 100,000+ customer deployments Awards and other honors
Slide 9: Tightly Integrated with the Ecosystem
9 © 2017 Quantum Corporation Tightly Integrated with the Ecosystem
Slide 10: How Quantum Solves Key Customer Challenges
10 © 2017 Quantum Corporation How Quantum Solves Key Customer Challenges • Data growth, particularly unstructured data (e.g., video, audio, imaging, sensors) • Increased strategic value of data - Insight, discovery, intelligence - Repurposing/remonetizing - Anytime/anywhere access - Collaboration •
Slide 11: Scale-out Tiered Storage Solutions
11 © 2017 Quantum Corporation SCALE-OUT TIERED STORAGE SOLUTIONS
Slide 12: Scale-out Tiered Storage: Key Metrics
12 © 2017 Quantum Corporation Scale-out Tiered Storage: Key Metrics 1H’FY17 revenue of $78M, up 34% Y-Y – Growth across all main use cases: Media & Entertainment, Video Surveillance and Technical Workflows 120,000+ file system licensees/users Average win rate in 70% range Average non-GAAP product gr
Slide 13: Scale-out Tiered Storage: The Demanding Markets We Serve
13 © 2017 Quantum Corporation Oil & Gas Genomics Geospatial Scientific Research Government Video Surveillance Network Forensics Corporate Video Sports Video M&E Scale-out Tiered Storage: The Demanding Markets We Serve 6
Slide 14: Scale-out Tiered Storage: Attributes Required for Success
14 © 2017 Quantum Corporation Scale-out Tiered Storage: Attributes Required for Success 6
Slide 15: Scale-out Tiered Storage Portfolio that Delivers on All Attributes
15 © 2017 Quantum Corporation Scale-out Tiered Storage Portfolio that Delivers on All Attributes LOW-COST CAPACITY PERFORMANCE Artico Archive Appliance STORNEXT DATA MANAGEMENT STORNEXT DATA MANAGEMENT StorNext AEL (Tape) Lattus Object Storage Third-party Public and Private Cloud Xcellis Workflow St
Slide 16: Scale-out Tiered Storage: Quantum Growth Drivers
16 © 2017 Quantum Corporation Scale-out Tiered Storage: Quantum Growth Drivers Extend M&E leadership (e.g., corporate video, sports video, ad agencies) Build on video surveillance momentum Capitalize on unstructured data archive opportunities in technical workflows Leverage data protection assets an
Slide 17: Scale-out Tiered Storage Use Cases: Select Examples
17 © 2017 Quantum Corporation Scale-out Tiered Storage Use Cases: Select Examples Automotive Supplier (Technical Workflows) Autonomous vehicle project: 20PB of data over 10 years All-NAS solution cost of $15M made project untenable QTM cost of $1.6M thru tiering, with better performance QTM enabled
Slide 18: Data Protection Solutions
18 © 2017 Quantum Corporation DATA PROTECTION SOLUTIONS
Slide 19: Data Protection: Key Metrics
19 © 2017 Quantum Corporation Data Protection: Key Metrics 1H’FY17 revenue of $155M, up 3% Y-Y (excludes royalty revenue) – Branded disk backup systems up 14% Y-Y in 1H’FY17 100,000+ deployments Average win rates over 75% for tape automation and mid-60th percentile for DXi Average branded non-GAAP p
Slide 20: Data Protection: Increased Complexity and Demands on Customers
20 © 2017 Quantum Corporation Data Protection: Increased Complexity and Demands on Customers Protection of Increasingly More Unstructured Data, in Addition to Structured Data Protection of Heterogeneous Assets – Physical and Virtual Intelligent Storage Tiering – Tape, Disk, Object Storage and Cloud
Slide 21: Data Protection: Products
21 © 2017 Quantum Corporation Data Protection: Products 25-800 slots Scalar i3/i6 40-80 slots Scalar i500 10-7000 slots Scalar i6000 1-24TB DXi V-Series 5-135TB DXi4700 17-544TB DXi6900/DXi6900-S DXi Disk Deduplication Q-Cloud Protect Devices and Media Scalar Tape Automation
Slide 22: Data Protection: Driving Profit/Cash
22 © 2017 Quantum Corporation Data Protection: Driving Profit/Cash Leverage tape market share leadership Increase DXi customer base Expand DXi go-to-market strategic partnerships Leverage unified sales organization Take advantage of growing cost issues with traditional primary storage
Slide 23: Data Protection Use Case: Virtual Machine Data Backup and Disaster Recovery
23 © 2017 Quantum Corporation Data Protection Use Case: Virtual Machine Data Backup and Disaster Recovery Customer Need State health department faced with significant data growth and challenges of large VMware adoption Quantum Solution DXi appliances Veeam backup software Why Quantum Positive experi
Slide 24: Financials and Guidance
24 © 2017 Quantum Corporation FINANCIALS AND GUIDANCE
Slide 25: Revenue Breakdown
25 © 2017 Quantum Corporation Revenue Breakdown (millions of $) Royalty Scale-out Tiered Storage Tape-based Data Protection Disk Backup
Slide 26: Scalable Financial Model with Significant Leverage
26 © 2017 Quantum Corporation Scalable Financial Model with Significant Leverage Notes: 1 Gross Margin Rate, Operating Expenses, Operating Income and Net Income are non-GAAP figures 2 In the third quarter of FY16, Quantum repurchased approximately $85M of its convertible debt using $16M in cash and
Slide 27: FQ3'17 Preliminary Results
27 © 2017 Quantum Corporation FQ3’17 Preliminary Results (all comparisons are to FQ3’16 unless otherwise noted) * Total revenue of approximately $133M, up from $128M – Up 8% for first three quarters of FY17 (YTD) over same period in FY16 * Scale-out tiered storage revenue* of approximately $40 milli
Slide 28: Additional Information and Where to Find It
28 © 2017 Quantum Corporation Additional Information and Where to Find It Quantum Corporation (the “Company”), its directors and certain executive officers will be participants in the solicitation of proxies from stockholders in connection with the Company’s Annual Meeting of Stockholders for the fi
Slide 29: 2017 uantu Corporation.
29 © 2017 Quantum Corporation 2017 uantu Corporation.