Quantum Corporation · NASDAQ:QMCO

Quantum — Investor Presentation (November 2016)

30 slides from Quantum's investor presentation, Nov 2, 2016

  1. Slide 1: Quantum Investor Presentation

    hy QUANTUM INVESTOR PRESENTATION ~ ——— FA Gin ~~ mber 1, 2016

  2. Slide 2: Safe Harbor Statement

    Safe Harbor ion Safe Harbor Statement “Safe Harbor” Statement under the US. Private Securities Litigation Reform Act of 1995: This presentation contains “forward-looking” statements within the meaning ofthe Private Securities Litigation Reform Act of 1995. Specifically, without limitation, statement

  3. Slide 3: Key Investment Highlights

  4. Slide 4: A leading expert in highly scalable storage, data protection and archive

    A leading expert in highly scalable storage, data protection and archive focused on the most demanding workflow challenges Enable customers to capture, share and preserve digital assets over their entire lifecycle, creating new opportunities to maximize data’s business value

  5. Slide 5: A Rich History in Storage

    A Rich History in Storage Tape-based data protection data protection systems High-performance storage & data mgmt. software (Origins from 2000) Cloud-based storage services for end-to-end workflows ©2016 enn Corporation 5

  6. Slide 6: Quantum's Business Today

    Quantum’s Business Today C1 Data Protection Scale- Primary Customer: IT Departments Primary DATA DATA ARCHIVING AND WORKFLOW BACKUP PRESERVATION STORAGE Highly efficient and fast Massively scalable storage High-performance, multi-tier systems for protecti systems for safely storing an storage soluti

  7. Slide 7: FY16 Revenue: $476M

    FY16 Revenue: $476M Royalty 9% Non-royalty: 90% branded, 10% OEM Ce 60% North America, 30% EMEA, 10% APAC FUJITSU ‘TERADATA.

  8. Slide 8: Proven Market Leader

    Proven Market Leader 100,000+ customer deployments Awards and other honors

  9. Slide 9: Tightly Integrated with the Ecosystem

    Tightly Integrated with the Ecosystem —_ _ tlestrean| fSthencne | £AAUTODESK. AI 2, splunk> Adobe f cfeia “—

  10. Slide 10: How Quantum Solves Key Customer Challenges

    How Quantum Solves Key Customer Challenges Cl. Quantum's Solutions + Data growth, particularly unstructured data (e.9., + Managing large-scale, shared content workflows video, audio, imaging, sensors) from end to end in most demanding data environments + Increased strategic value of data = Insight,

  11. Slide 11: Quantum's Addressable Market

    Quantum’s Addressable Market C1 Overall CAGR: 10.1% $53 $48 i $128 ‘© 2016qusnum Cxporaton 11

  12. Slide 12: Scale-out Storage Solutions

    SCALE-OUT STORAGE SOLUTIONS _- — (kl SST

  13. Slide 13: Scale-out Storage: Key Metrics

    Scale-out Storage: Key Metrics Cl. © 1H’FY17 revenue of $78M, up 34% Y-Y — Growth across all main use cases: Media & Entertainment, Video Surveillance and Technical Workflows © 100,000+ file system licensees/users © Average win rate in 70% range © Average non-GAAP product gross margins of approximat

  14. Slide 14: Scale-out Storage: The Demanding Markets We Serve

    Scale-out Storage: The Demanding Markets We Serve INCOMING DATA C1 (©2016 Quantm corporation 14

  15. Slide 15: Scale-out Storage: Attributes Required for Success

    Scale-out Storage: Attributes Required for Success { Quantum. C1. ©2016 nant corpraton 15

  16. Slide 16: Multi-Tier Scale-out Storage Portfolio that Delivers on All Attributes

    Multi-Tier Scale-out Storage Portfolio that Delivers on All Attributes stornent @ cells Workflow Storage ‘cloud Archive/Vault STORNEXT DATA MANAGEMENT &> XS Hybrid Storage =| & ‘ 7 ites SSTORNEXT DATA MANAGEMENT " Artico Archive Appliance Lattus Object Storage ‘StorNext AEL (Tape) ‘ACCESS PERFORMANC

  17. Slide 17: Scale-out Storage: Quantum Growth Drivers

    Scale-out Storage: Quantum Growth Drivers C1 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 Further expand our solution set to the cloud and cloud providers Lev

  18. Slide 18: Scale-out Storage Use Cases: Select Examples

    Scale-out Storage Use Cases: Select Examples C1 Broadcaster (Media & Entertainment © Needed support for 4K/2K mixed workflow © EMC Isilon couldn’t meet performance requirements © QqMenabled them to fully leverage large 4K investment and pursue additional business opportunities Retail Center (Video S

  19. Slide 19: Data Protection

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  20. Slide 20: Data Protection: Key Metrics

    Data Protection: Key Metrics Cl. © 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-60" percentile for DXi © Average branded non-GAAP product gross margin

  21. Slide 21: Data Protection: Increased Complexity and Demands on Customers

    Data Protection: Increased Complexity and Demands on Customers C1 LEGACY NEW PARADIGM Protection of Mostly Structured Data Back Up Data from Physical Assets Primarily Tape Backup (On-Premise Data Access Anytime, Anywhere Data Ac Retain Most Data for Finite Period Keep More and More Data Forever tion

  22. Slide 22: Data Protection: Products

    Data Protection: Products C1 Scalar Tape Automation xi6900/Dxi6900-S Scalar i3/i6 Scalar i500 Scalar i6000 17-5447TB 25-800 slots 40-80 slots 10-7000 slots Devices and Media Q-Cloud Protect B. oy

  23. Slide 23: Data Protection: Driving Profit/Cash

    Data Protection: Driving Profit/Cash Cl. Leverage tape market share leader! Increase DXi customer base Expand DXi go-to-market strategic partnerships Take advantage of growing cost issues with traditional primary storage Leverage unified sales organization

  24. Slide 24: Data Protection Use Case: Virtual Machine Data Backup and Disaster Recovery

    Data Protection Use Case: Virtual Machine Data Backup and Disaster Recovery Cl. Customer Need © State health department faced with significant data growth and challenges of large VMware adoption Quantum Solution ty © DXi appliances © \Veeam backup software Why Quantum © Positive experience with earl

  25. Slide 25: Financials and Guidance

    FINANCIALS AND GUIDANCE

  26. Slide 26: Revenue Breakdown (millions of $)

    Revenue Breakdown (millions of $) Scale-out Storage $30 so - | | l ll I 0 L C1. Disk Backup $25 $20 315 S10 $5 so = Foss FOWIS FON'I6 FOy'16 FO3'I6 FAM'I6 Fart Fa217 Royalty sw 99 $6 8 $0 Fa3't5 Fad'15 Fare FO2'16 FOs'16 FaW'I6 FONT FO2t7 ‘Tape-based Data Protection $80 <0 20 1 $0 5 FOs1S FOW'IS Fat

  27. Slide 27: Scalable Financial Model with Significant Leverage

    Scalable Financial Model with Significant Leverage Cl. sstHalt 2nd talf ast Half IH'FY17 vs. 1H’'FY16 © Total revenue up 10% © Branded revenue up 14% (eof Revenue) operating income! som (St0M) Sum S108 mG) om % © Scale-out nu Lees ea & Scale-out storage revenue up 34% (6 of Revenue) (os os ams 3 a__

  28. Slide 28: Guidance (as of Oct. 26, 2016)

    Guidance (as of Oct. 26, 2016) £Q3'17 + Total revenue: $125M-$130M Non-GAAP gross margin: 41-43% Non-GAAP opex: $47M-$49M Interest expense: $2.4M. Taxes: $400K Non-GAAP EPS: $0.00-$0.02 FY17 Total revenue: at least $500M Scale-out storage revenue: 35-40% of total revenue Decline in overall data prot

  29. Slide 29: Additional Information and Where to Find It

    Additional Information and Where to Find It C1 ‘Quantum Corporation (the “Company’), ts directors and certain executive officers willbe participants in the solicitation of proxies from stockholders in connection with the Company’s Annual Meeting of Stockholders forthe fiscal year ended March 31, 201

  30. Slide 30: Quantum

    Quantum. (© 2016 cuanum Corporton.

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