Western Digital Corporation · NASDAQ:WDC
Western Digital — Shareholder Meeting (November 2019)
21 slides from Western Digital's shareholder meeting presentation, Nov 1, 2019
Slide 1: Stockholder Update November 2019
Stockholder Update November 2019
Slide 2: Global Data Infrastructure Leader
Headquarters: San Jose, CA Employees: ~62,000 Patents: ~14,000 Revenue: $16.6 Billion Non-GAAP Gross Profit: $5.0 Billion1 Addressable Market: ~$110 Billion by FY20242 Key Indices: S&P500, NASDAQ100 Global Data Infrastructure Leader 1FY2019. See Appendix for reconciliations of GAAP to non-GAAP measu
Slide 3: Well Positioned to Capitalize on the Growth and Value of Data
Western Digital is Well Positioned to Capitalize on the Growth and Value of Data Source: IDC Global DataSphere Forecast, 2019-2023: Consumer Dependence on the Enterprise Widening, January 2019, DOC #US44615319. 1 Zettabytes ~103ZB1 projected data created in 2023 ~32ZB1 data created in 2018 Projected
Slide 4: Managing Through Industry Cyclicality
The data storage industry experiences downturns that can impact near-term financial results Our strategy and operating model are designed to enable the company to successfully navigate through down phases and be well-positioned for leadership when we enter the up phases Managing Through Industry Cyc
Slide 5: Positioned for Growth
Developing and investing in new technologies and partnerships to build on technology leadership Delivering the strongest product portfolio in our company’s history Remaining focused on operational efficiency Positioned for Growth Despite a challenging year, in fiscal 2019 we remained focused on acti
Slide 6: Board-Driven Stockholder Engagement
Board-Driven Stockholder Engagement We maintain a robust, year-round stockholder engagement program led by the Board of Directors The Governance Committee oversees our stockholder engagement process Directors regularly participate in stockholder outreach to facilitate direct connectivity with our in
Slide 7: Board Composition Facilitates Effective Oversight
Board Composition Facilitates Effective Oversight Focused on thoughtful Board refreshment Kimberly Alexy and Stephanie Streeter bring decades of experience in strategic leadership in vertically integrated manufacturing, supply chain and distribution New Director: Kimberly Alexy More than 20 years of
Slide 8: Skills and Experience Aligned with Strategy
Alexy Cole Cote Doluca Lauer Massengill Milligan Streeter Industry Experience (8/8) Risk Management (8/8) Information Technology & Cybersecurity (6/8) Executive-Level Leadership (7/8) Human Resources Management (7/8) Business Development & Strategy (8/8) Finance & Accounting (8/8) Manufacturing & Op
Slide 9: Fiscal 2019 Executive Compensation 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%) All PSUs subject to 3- year service-based vesting 87
Slide 10: Compensation Aligned with Performance Results
Compensation Aligned with Performance Results TOTAL: $17,121,474 TOTAL: $12,866,469 Fiscal 2019 Performance Results and Payouts 1 The fiscal 2018 LTI award value excludes a $2.6 million adjustment for a prior year (fiscal 2016-2017) PSU award that paid out in fiscal 2018 and was required to be repor
Slide 11: Overview of Our Equity Plan Proposal
Equity is a critical tool for attracting and retaining talented employees in our industry; our broad-based equity compensation plan is a core component of our competitive compensation program 60% of equity is allocated to our engineers, who are integral to maintaining our market leadership and innov
Slide 12: Overview of Our Equity Plan Proposal
Overview of Our Equity Plan Proposal We maintain a series of best practice and stockholder-friendly safeguards under the terms of the 2017 Performance Incentive Plan Limitations on annual grants to individuals Limit on non-executive director awards No repricing of stock options, stock appreciation r
Slide 13: Commitment to Fostering a Sustainable Future
Commitment to Fostering a Sustainable Future Sound corporate responsibility is a focus of our Board, and our Governance Committee oversees our sustainability policies We recently published our 2018 Sustainability Report, which has been prepared in accordance with Core GRI Standards, as well as an ES
Slide 14: Creating a Culture of Inclusion
Creating a Culture of Inclusion Implementing unconscious bias training across the enterprise Creating a women’s leadership development program Initiating the development of a strategy to increase diversity in our candidate pipeline Publishing our Diversity and Inclusion Statement company-wide Conduc
Slide 15: 2019 Annual Meeting
2019 Annual Meeting Western Digital values your support on the 2019 ballot items Our Board recommends: A vote FOR Proposal 1 to elect each of the eight director nominees named in the proxy statement A vote FOR Proposal 2 to approve on an advisory basis the compensation of the Company’s named executi
Slide 16: Appendix
Appendix Western Digital.
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation In millions; unaudited Twelve Months Ended FY14 FY15 FY16 FY17 FY18 FY19 GAAP OPERATING INCOME $ 1,791 $ 1,611 $ 466 $ 1,954 $ 3,617 $ 87 Amortization of acquired intangible assets 195 163 258 1,162 1,185 968 Stock-based compensation expense 156 158 180 382 376 306 Em
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation In millions; unaudited Year Ended 6/28/2019 GAAP GROSS PROFIT $ 3,752 Amortization of acquired intangible assets 804 Stock-based compensation expense 48 Charges related to cost saving initiatives 11 Manufacturing underutilization charges 264 Power outage charges 145 O
Slide 19: Footnotes for GAAP to Non-GAAP Reconciliations
Footnotes for GAAP to Non-GAAP Reconciliations This presentation contains the following financial measures that are not in accordance with U.S. generally accepted accounting principles (“GAAP”): non-GAAP gross profit, non-GAAP operating income and non-GAAP operating margin. These Non-GAAP measures a
Slide 20: Footnotes for GAAP to Non-GAAP Reconciliations (cont'd)
Footnotes for GAAP to Non-GAAP Reconciliations (cont’d) Manufacturing underutilization charges. In response to flash business conditions, the company reduced its wafer starts at its flash-based memory manufacturing facilities operated through its strategic partnership with Kioxia Corporation (“Kioxi
Slide 21: Western Digital.
Western Digital.
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