Slide 1: Dell Q1 FY06 Results
Dell Q1 FY06 Results May 12, 2005
Slide 2: Special Note
www.dell.com Special Note Statements in this presentation that relate to future results and events (including statements about Dell’s anticipated financial and operating performance) are forward- looking statements based on Dell’s current expectations. Actual results in future periods could diff
Slide 3: Agenda
www.dell.com Agenda • Introduction – Lynn A. Tyson, VP of IR and Corp Comm • Financial Results – Jim Schneider, CFO • Strategic Direction – Kevin Rollins, CEO • Question & Answer – Michael Dell, Kevin Rollins & Jim Schneider • Close – Kevin Rollins, CEO Investor 3 Relations
Slide 4: Q1 FY06 Highlights
www.dell.com Q1 FY06 Highlights Delivered balanced growth and profitability across products and regions while outgrowing the industry • Strong growth in our strategic focus areas – Storage revenue up 49% – Services revenue up 30% – Software & Peripherals revenue up 29% • Robust demand for mobility p
Slide 5: Q1 FY06 Financial Highlights
www.dell.com Q1 FY06 Financial Highlights Delivered $0.37 EPS* and $13.4 billion revenue Spent record $2.0B* to repurchase 50 million shares* LIQUIDITY GROWTH • $1.2 billion cash flow • Dell units up 20%; from operations mkt ex-Dell up 12% • $13.4 billion in cash • 16% Rev growth & investments •
Slide 6: Q1 FY06 Product Summary
www.dell.com Q1 FY06 Product Summary Q1 Revenue Revenue Growth Unit Growth Product $B Y/Y Q/Q Y/Y Q/Q Desktop PCs $ 5.3 6% -5% 14% -5% Mobility 3.3 22% 4% 38% 8% Servers 1.3 12% -1% 25% 3% Storage 0.4 49% 5% Enhanced Services 1.1 30% 1% S&P 2.0 29% 4% TOTAL $13.4 16% -1% 20% -1% “Desktop PCs” includ
Slide 7: FY05 Historical Product Data
www.dell.com FY05 Historical Product Data FY05 Revenue Q1 Q2 Q3 Q4 Total Product $B $B $B $B $B Desktop PCs $ 5.0 $ 5.0 $ 5.2 $ 5.6 $ 20.8 Mobility 2.7 2.9 3.1 3.1 11.8 Servers 1.2 1.2 1.2 1.3 4.9 Storage 0.3 0.3 0.3 0.4 1.3 Enhanced Services 0.8 0.8 0.9 1.1 3.7 S&P 1.5 1.5 1.7 1.9 6.7 TOTAL $11.5 $
Slide 8: Q1 Product Performance: Servers & Storage
Q1 Product Performance: www.dell.com Servers & Storage PowerEdge 6800 and 6850 PowerConnect 2700 Series Dell|EMC AX100i Full Support for 32-bit and 64-bit Web-managed capabilities at the Enables SAN technology over IP database applications cost of unmanaged switches networks Servers and Networking S
Slide 9: Q1 Product Performance: Enhanced Services
Q1 Product Performance: www.dell.com Enhanced Services Q1 Results • Enhanced services revenue up 30% • Growth almost 50% outside of the Americas • Increased deferred revenue balance by $200 million sequentially • Grew our managed services business – singing contracts in the last year with Dell Enhan
Slide 10: Q1 Product Performance: Mobility and PCs
Q1 Product Performance: www.dell.com Mobility and PCs Mobility • Notebook and mobile workstation units up 38% – 11th consecutive quarter of growth above 25% for notebooks – Expanded #1 share world-wide • New product introductions Latitude X1 Inspiron XPS Gen 2 – Latitude X1 Ultra-portable – Inspiron
Slide 11: Q1 Product Performance: Printers
Q1 Product Performance: www.dell.com Printers Color Lasers • Imaging and Printing revs up 40% • Dell Printer shipments up 75% • Consumables revenue up 200% • Lasers – Laser units up 245% WW, 340% in Europe 5100cn 3000cn – Expect U.S. color laser share to be 15% in PC World ranked the 5100cn and 3000
Slide 12: Q1 Product Performance: Software & Peripherals
Q1 Product Performance: www.dell.com Software & Peripherals Q1 Highlights • WW Revenues of $2 billion, up 29% • 40% growth outside of the W4200HD Plasma TV Americas • Dell TV units up 62% – Plasmas up over 90% Q/Q • Dell branded flat panel W2600 LCD TV monitor units up 68% 1 UltraSharp 2005FPW 1 Inc
Slide 13: Q1 FY06 Region Summary
www.dell.com Q1 FY06 Region Summary Op Inc Unit Revenue Op Inc Revenue Growth Growth Growth REGION $M $M Y/Y Q/Q Y/Y Q/Q Y/Y Q/Q Americas 6,616 660 15% 1% 17% -3% 18% 1% Business Unit U.S. Consumer 1,945 145 12% -18% 52% 22% 12% -20% Total Americas 8,561 805 14% -4% 22% 0% 16% -6% EMEA 3,171 236 20%
Slide 14: Q1 Geographic Expansion: Europe, Middle East & Africa
Q1 Geographic Expansion: www.dell.com Europe, Middle East & Africa • Revenues up 20%, 6th consecutive quarter at or above 20% growth • Closed share gap with regional leader by almost 2 points • Mobility units up nearly 40% • Server shipments up 23%, more than 2X the rest of the market – Share up 1.2
Slide 15: Q1 Geographic Expansion: Asia-Pacific and Japan
Q1 Geographic Expansion: www.dell.com Asia-Pacific and Japan • AP/Japan unit growth of 27%, more than 2X the market ex-Dell • Revenues up 19% • Strong growth in key product categories – Server shipments up 37%, increasing share by 1 point – S&P revenue up over 50% Dell Printer units up 5X – Servic
Slide 16: Q1 Geographic Performance: Americas
Q1 Geographic Performance: www.dell.com Americas • Total US Units up 16% – U.S. market share up 50 bps Y/Y to 33.9% – Server shipments up 22% -- added nearly 5 points of share sequentially to 36.9% – Notebook units up >35% • U.S. Segment Results – #1 share in U.S. in every customer segment 5 quarter
Slide 17: Q2 FY06 Outlook
www.dell.com Q2 FY06 Outlook • Maintain flexibility to balance growth and profitability while meeting our revenue, cash flow, and EPS targets • Revenue of $13.6 - $13.8 billion, up 1.5-3% Q/Q and 16-18% Y/Y • EPS between $0.37 and $0.39; up 19-26% Y/Y • Investment and other income of approximately $
Slide 18: Revenue by Category: Diversifying towards $80 billion
www.dell.com Diversifying towards $80 billion Dell Annual Revenue • Business more diversified $80B as we grow to $80 billion $80B in revenue $70B S&P • Growth opportunities Revenue by Category $60B Services across product categories, $49B Storage $50B Servers regions, and customer $40B segments $30B
Slide 19: Flexible Operating Model
www.dell.com Flexible Operating Model Dell’s flexible operating model allows us to react to changing market dynamics, increasing our advantage in transitioning industry Europe • Invested in infrastructure to support expanding business • Six consecutive quarters of 20% or greater growth • Grew 25 poi
Slide 20: Summary
www.dell.com Summary • Model continues to deliver exceptional financial and operating results in any environment • Dell model provides unique ability to identify and target areas most primed for profitable growth • Disciplined, focused and consistent execution enables Dell to deliver on our financia