Slide 1: Dell Q4 FY05 Results
Dell Q4 FY05 Results February 10, 2005 www.dell.com
Slide 2: Special Note
www.dell.com Special Note This presentation may contain forward-looking statements, including statements about the outlook and prospects for company and industry growth, as well as statements about the company’s future financial and operating performance. These and other statements that relate t
Slide 3: Agenda
www.dell.com Agenda Introduction • Lynn A. Tyson, VP of IR and Corporate Communications Financial Results • Jim Schneider, SVP & CFO Strategic Direction • Kevin Rollins, President & CEO Question & Answer Michael Dell, Kevin Rollins & Jim Schneider Close • Kevin Rollins, President & CEO 3
Slide 4: FY05 Full Year Highlights
www.dell.com FY05 Full Year Highlights In FY05, Dell achieved record results for unit shipments, revenues, operating income, EPS and cash flow from operations. Revenue of $49.2 billion, up 19% Operating income of $4.3 billion, up 20% Pro forma EPS of $1.291, up 28%; Reported EPS of $1.18 Cas
Slide 5: Pro forma to Reported EPS Bridge
www.dell.com Pro forma to Reported EPS Bridge Pro forma EPS excludes a fourth quarter tax charge of $280 million, or 11 cents, in anticipation of repatriating $4.1 billion of foreign earnings at a one-time favorable rate pursuant to the American Jobs Creation Act of 2004. 5 Investor Relations
Slide 6: Q4 FY05 Highlights
www.dell.com Q4 FY05 Highlights Revenue of $13.5 billion, up 17% 1 Pro forma EPS of $0.37 , up 28% Operating Margin of 8.8%, up 30 bps Y/Y Cash Flow from Operations of $1.8 billion Cash and Investments of $14.1 billion 1: Pro forma EPS excludes a fourth quarter tax charge of $280 million,
Slide 7: Q4 FY05 Financial Highlights
www.dell.com Q4 FY05 Financial Highlights Delivered $0.37 EPS* and $13.5 billion revenue* Spent almost $900 million to repurchase 22 million shares LIQUIDITY GROWTH • $1.8 billion Cash flow • Dell units up 19%; from operations* industry ex-Dell up • $14.1 billion in cash 12% & investments* • 17%
Slide 8: Q4 FY05 Product Summary
www.dell.com Q4 FY05 Product Summary Total Units up 19% – 7 point growth premium to rest of industry 17 percent industry share -- Extended #1 WW position by 1 point Y/Y 17% enterprise revenue growth Unit Revenue Growth Growth Product Y/Y Q/Q Y/Y Q/Q Desktops 16% 14% 10% 8% Notebooks 30% 5% 17%
Slide 9: Product Performance: Servers & Storage
www.dell.com Q4 Product Performance: Servers & Storage Servers Q4 WW revenue up 18%; units up 25% -- added over half a point of share – 23.8% share world wide – 32.3% share in the U.S. PowerEdge 1855 Blade Servers Introduced PowerEdge 1855 Blade Server PowerEdge SC420 recognized by Small Busin
Slide 10: Product Performance: Mobility and PCs
www.dell.com Q4 Product Performance: Mobility and PCs Mobility – Notebook units up 30% • 10th consecutive quarter of growth above 25% • Achieved #1 share world-wide for full year – US unit growth of 27% -- fastest among Latitude D410 Precision M70 Mobile Workstation the top 5 vendors – New product
Slide 11: Product Performance: Enhanced Services
www.dell.com Q4 Product Performance: Enhanced Services Q4 Results Enhanced services revenue of $1 billion up 32% 50,000 system asset recovery relationship with NYC public schools International services revenue and capability Dell Enhanced Services continues to ramp quickly • Professional Servi
Slide 12: Product Performance: Software & Peripherals
www.dell.com Q4 Product Performance: Software & Peripherals Q4 Highlights WW Revenues of $2 billion, DJ MP3 Players Axim X50 up 36% Strong international growth – >50% growth in APJ – 45% growth in Europe Dell Axim and Dell DJ revenue UltraSharp 2005FPW W2600 LCD TV combined grew over 70% Del
Slide 13: Product Performance: Printers
www.dell.com Q4 Product Performance: Printers Color Lasers Total Printer shipments up 111% Lasers – Laser units up nearly 4X Y/Y – Color lasers up almost 275% Q/Q. Market share over 9% after < 2 quarters in the market – Dell 3000cn wins PC World’s “Best Buy” 3000cn 3100cn 5100cn award Inkjet –
Slide 14: Q4 FY05 Region Summary
www.dell.com Q4 FY05 Region Summary Revenue Op Inc Unit Revenue Op Inc Growth Growth Growth REGION $M $M Y/Y Q/Q Y/Y Q/Q Y/Y Q/Q Americas 6,533 683 16% -2% 18% -1% 19% 0% Business Unit U.S. 2,359 119 10% 22% 0% 24% 7% 30% Consumer Total 8,892 802 15% 4% 15% 2% 15% 8% Americas EMEA 3,122 257 22% 20%
Slide 15: Geographic Performance: Americas
www.dell.com Q4 Geographic Performance: Americas Americas units and revenue up 15% – Revenue from business customers (SMB & large corporate) up 19% U.S. share up 2.7 points Y/Y to 32.9% – #1 share in the U.S. in every product and customer segment for entire year – US business customer share up 3
Slide 16: Geographic Expansion: Europe, Middle East & Africa
www.dell.com Q4 Geographic Expansion: Europe, Middle East & Africa Revenues up 22% on unit growth of 29% Strong growth in all product segments – Total Enterprise revenue up 25% – Server shipments up 30%, share up 1.3 points to 16.8% – Storage revenue up over 50%, Dell | EMC revenue up almost 90%
Slide 17: Geographic Expansion: Asia-Pacific and Japan
www.dell.com Q4 Geographic Expansion: Asia-Pacific and Japan APJ revenue up 21% on unit growth of 26% -- 3X the industry excluding Dell – Added 0.7 points of share Y/Y to reach 8.5% of the market – Strong growth in Services, S&P, and Storage China revenues up 24% on 39% unit growth In Japan, u
Slide 18: Q1 FY06 Outlook
www.dell.com Q1 FY06 Outlook Revenue of $13.4 billion, up 16% Y/Y Operating margins flat sequentially Investment and other income of $55 million Tax rate of 24.25% for Q1 and full year FY06 $0.37 EPS; up 32% Y/Y Share repurchase at or above Q4 levels 18 Investor Relations
Slide 19: Consistent and profitable growth
www.dell.com Consistent and profitable growth 16th consecutive quarter of meeting or exceeding our guidance to investors Profitable growth is delivering superior value to our customers and shareholders – Earnings per share and cash flow growth in excess of revenue growth Expansion in enterpris
Slide 20: Industry Consolidation
www.dell.com Industry Consolidation Industry excluding Dell – Struggles for hardware profitability – Subsidizes hardware with other businesses – Focuses on market niches – Exiting the business The Dell model – Highest quality products and services – Most efficient cost structure – Consistent and
Slide 21: Diversified Technology Company
www.dell.com Diversified Technology Company Diversification across product categories, customer segments, and regions provides Dell with increased profit opportunity and consistency Non-PC businesses are over 60% of revenues Enterprise revenue run-rate of $8.5 billion – Grew servers 40% faster tha
Slide 22: Summary
www.dell.com Summary Tracking ahead of $60 billion goal Expanding rapidly in enterprise, services, and printing and imaging – as well as internationally Dell continues to demonstrate the strength of our model, the soundness of our strategy, and our unmatched execution as a diversified technolo
Slide 23: Visit www.dell.com/investor for additional information
Visit www.dell.com/investor for additional information www.dell.com