Slide 1: Supplemental Financial Information Q2FY24
SUPPLEMENTAL FINANCIAL INFORMATION Q2FY24 JANUARY 24, 2024
Slide 2: Safe Harbor Statement and Use of Non-GAAP Financial Information
Safe Harbor Statement and Use of Non-GAAP Financial Information This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and incl
Slide 3: Executive Summary
Executive Summary FQ2’24 results reflect improving cloud demand, strong cost Q2FY24 discipline and price execution Revenue $1.56B o Revenue up 7% sequentially led by incremental cloud nearline Gross Margin (non-GAAP)1 23.6% demand as early signs of market recovery emerge o Operating income (non-GAAP
Slide 4: Markets and Technology Highlights
Markets and Technology Highlights Markets Technology o Mass Capacity demand improved sequentially, led o Introduced the Mozaic platform, which combines by stronger nearline Cloud demand offsetting numerous technology advances including HAMR, declines in the VIA market and marks a major inflection po
Slide 5: Quarterly Financial Trends
Quarterly Financial Trends Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 QoQ YoY 1 Results (non-GAAP) Revenue ($M) 1,887 1,860 1,602 1,454 1,555 7% -18% Gross Margin % 21.4% 18.7% 19.5% 19.8% 23.6% 3.8 ppt 2.2 ppt Operating Expenses ($M) 294 282 258 248 240 -3% -18% Operating Margin % 5.8% 3.5% 3.4% 2.8% 8.2%
Slide 6: Quarterly Financial Trends Continued
Quarterly Financial Trends Continued Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 QoQ YoY Revenue by Product Line ($M) HDD 1,663 1,604 1,385 1,295 1,384 7% -17% Mass Capacity 1,242 1,233 984 1,017 1,060 4% -15% Mass Capacity as a % of HDD revenue 75% 77% 71% 79% 77% -2.0 ppt 2.0 ppt Legacy 421 371 401 278 324
Slide 7: Guidance Q3FY24
Guidance Q3FY24 Q3FY24 Revenue $1.65 billion ± $150 million Operating Margin1 (non-GAAP) Low-double digits % of revenue Diluted Earnings Per Share1,2 (non-GAAP) $0.25 ± $0.20 At the mid point of the guidance: o Operating Expense (non-GAAP) expected to be ~$260 million o Tax Expense (non-GAAP) expect
Slide 8: Debt Capital Structure
Debt Capital Structure o $2.3B Liquidity1, $787M cash, $1.5B revolving credit facility o $5.7B Debt2, weighted average interest rate of 5.6%, weighted average maturity of ~6 years o More than 90% of our long-term debt obligations are beyond three years Debt Metrics Debt Maturity Profile (Principal O
Slide 9: Reconciliation Tables
Reconciliation Tables Seagate | 9
Slide 10: Reconciliation of GAAP Gross Profit and Operating Expenses to Non-GAAP
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit ($M) Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 GAAP Gross Profit 246 319 304 149 362 Accelerated depreciation, impairment and other charges related to cost saving efforts 39 18 3 13 — Amortization of acquired intangible assets 1 1 — — — Purchase
Slide 11: Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Loss)
Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Loss) ($M) Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 GAAP Net Loss (33) (433) (92) (184) (19) Accelerated depreciation, impairment and other charges related to cost saving efforts 39 21 3 13 — Amortization of acquired intangible assets 1 1 — — — BIS s
Slide 12: Reconciliation of Operating Cash Flow to Free Cash Flow and Adjusted EBITDA
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow ($M) Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Net Cash Provided by Operating Activities 251 228 218 127 169 Acquisition of property, equipment and leasehold improvements (79) (54) (50) (70) (70) Free Cash Flow 172 174 168 57 99
Slide 13: www.seagate.com
OQ) seacate www.seagate.com