Slide 1: Filed by Dell Technologies Pursuant to Rule 425
Filed by Dell Technologies Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934 Subject Company: Dell Technologies Inc. (Commission File No. 001-37867) 1 1Filed by Dell Technologies Pursuant to Rule 425 under the Securi
Slide 2: Strategy and Outlook
STRATEGY AND OUTLOOK | Rob Williams, Senior Vice President, Investor RelationsSTRATEGY AND OUTLOOK | Rob Williams, Senior Vice President, Investor Relations
Slide 3: Important Notices
IMPORTANT NOTICES No Offer or Solicitation This communication does not constitute an offer to sell or a solicitation of an offer to sell or a solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in whi
Slide 4: Important Notices (Cont'd)
IMPORTANT NOTICES (CONT’D) Participants in the Solicitation Dell Technologies and its directors, executive officers and other members of its management and employees may be deemed to be participants in the solicitation of proxies from its stockholders in favor of the proposed merger and the other tr
Slide 5: Today's Speakers
TODAY’S SPEAKERS Michael Dell Jeff Clarke Tom Sweet Chairman & Vice Chairman, Chief Financial Officer Chief Executive Officer Products & Operations Marius Haas Bill Scannell Dennis Hoffman President & President, Global Enterprise Senior Vice President, Chief Commercial Officer Sales & Customer Opera
Slide 6: Today's Agenda
TODAY’S AGENDA September 18, 2018 9:00 – 9:20 AM: STRATEGY AND OUTLOOK – Michael Dell Dell Technologies’ Transformation, Industry Trends and Company Highlights 9:20 – 10:00 AM: BUSINESS OVERVIEW – Jeff Clarke Client Solutions Group, Infrastructure Solutions Group and VMware 10:00 – 10:30 AM: STRATEG
Slide 7: Strategy and Outlook
STRATEGY AND OUTLOOK | Michael Dell, Chairman & CEOSTRATEGY AND OUTLOOK | Michael Dell, Chairman & CEO
Slide 8: Technology-Led Investment Cycle
TECHNOLOGY-LED INVESTMENT CYCLE We are in the early stages of a massive, technology-led investment cycle in preparation for a future that’s coming fast DATA + AI, IoT, ML CUSTOMERS + 5G PRODUCTS & SERVICESTECHNOLOGY-LED INVESTMENT CYCLE We are in the early stages of a massive, technology-led investm
Slide 9: Data = Fuel AI
Data = Fuel AIData = Fuel AI
Slide 10: Slide 10
Slide 11: Edge Core Cloud
EDGE CORE CLOUD P U B L I C P R I VAT E H Y B R I DEDGE CORE CLOUD P U B L I C P R I VAT E H Y B R I D
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Slide 13: A Digital Revolution
A DIGITAL REVOLUTION The explosion of data and computing power is driving a new wave of IT spend 1 2 3 DEVICES DAT A IT SPEND 180 4% 160 CAGR 3.5 IoT 1,000,000 3.4 140 Mobile 3.2 120 10,000 3.1 100 PC 80 100 60 Mainframe 1 40 20 0 0 1985 2011 2020+ 2018 2019 2020 2021 1 2 Market Source: Morgan Stanl
Slide 14: Unmatched Portfolio of Solutions
UNMATCHED PORTFOLIO OF SOLUTIONS The most complete portfolio of technology solutions: Software, Hardware and Services Boomi Cloud Native SW Multi-cloud Server, Client, Software Software Defined Managed Security Development Management Storage, HCI & Peripherals Data Center Services DIGIT AL IT WORKFO
Slide 15: Dell Technologies in Numbers
DELL TECHNOLOGIES IN NUMBERS Unmatched scale and breadth of IT solutions $ $ $ $ 86.8B 10.0B 8.5B+ 12.8B+ Non-GAAP Revenue (TTM) Adjusted EBITDA (TTM) Cash Flow from R&D Invested over 1 2 (16% YoY growth in Q2 FY19) (11.5% of Non-GAAP Operations (TTM) Past 3 Fiscal Years 1 Revenue) # 1 99% 40k+ 85%
Slide 16: Company Highlights
COMPANY HIGHLIGHTS Dramatic transformation since going private I NTEG RATED, END -TO - END TECHNO L O G Y PRO VI DER AT SCAL E 1 CO M PL EM ENTARY PO RTFO LIO O F L EADI NG SO L UTI O NS 2 3 BEST-IN- CL ASS G O -TO -MARKET M O DEL DRI VI NG O UTPERFO RM ANCE VS. M ARKET 4 SUPERI O R FI NANCI AL M O
Slide 17: Integrated, End-to-End Technology Provider at Scale
1 | INTEGRATED, END-TO-END TECHNOLOGY PROVIDER AT SCALE Unmatched scale and breadth of IT solutions $ 87B $ 81B $ 57B $ 49B $ 47B $ 6B $ 31B Client Storage Server Networking Virtualization Cybersecurity Cloud Platform Source: TTM Non-GAAP revenue presented for all companies based on most recent fili
Slide 18: Complementary Portfolio of Leading Solutions
2 | COMPLEMENTARY PORTFOLIO OF LEADING SOLUTIONS Leverage leading positions across all solutions to create cross selling opportunities External Storage Storage Servers PBBA/Backup Total Revenue All-flash Arrays and Units Sector Size Sector Size # # x86 Servers 1 1 Integrated $ $ 26B 76B Infrastructu
Slide 19: Best-in-Class Go-to-Market Model
3 | BEST-IN-CLASS GO-TO-MARKET MODEL Sales force is comprised of over 40k individuals across 72 countries complemented by a growing partner program with approximately 150k partners across 180 countries Successful Integration One-stop-shop for technology solutions across software, hardware and servic
Slide 20: Driving Outperformance vs. Market
4 | DRIVING OUTPERFORMANCE VS. MARKET Our ability to Dellver differentiated and integrated IT solutions has driven significant revenue growth and share gains 1 2 3 EXTER NAL STO R AGE R EVENUE MAINSTR EAM SER VER R EVENUE HYPERCONVERGED SYSTEMS REVENUE Forecast Forecast Forecast 80.5% 142.0% +5.5% +
Slide 21: Superior Financial Model
5 | SUPERIOR FINANCIAL MODEL Company positioned to achieve sustainable, long-term growth and share gain with a focus on cash flow Focus on Long-Term Industry-Leading Free Best-in-Class Unit Efficient Capital Growth and Share Gain Cash Flow Conversion Economics with High Attach Structure Rates for Hi
Slide 22: World-Class Management Team
6 | WORLD-CLASS MANAGEMENT TEAM Committed and highly-experienced management team, with an average of 24 years of experience successfully navigating technology changes in the IT industry DELL T ECHNOLOGIES Karen Quintos Michael Dell Jeff Clarke Tom Sweet Allison Dew Howard Elias Marius Haas Bill Scan
Slide 23: Returning to the Public Markets
Returning to the Public Markets As a Leader Gaining Share in a Large Differentiated Customer Focus on Long-Term and Growing Market Value Proposition Growth and Cash FlowReturning to the Public Markets As a Leader Gaining Share in a Large Differentiated Customer Focus on Long-Term and Growing Market
Slide 24: Business Overview
BUSINESS OVERVIEW | Jeff Clarke, Vice Chairman, Products & OperationsBUSINESS OVERVIEW | Jeff Clarke, Vice Chairman, Products & Operations
Slide 25: Technology-Led Investment Cycle
TECHNOLOGY-LED INVESTMENT CYCLE We are in the early stages of a massive, technology-led investment cycle in preparation for a future that’s coming fast DATA + AI, IoT, ML CUSTOMERS + 5G PRODUCTS & SERVICESTECHNOLOGY-LED INVESTMENT CYCLE We are in the early stages of a massive, technology-led investm
Slide 26: Increasingly Broad Set of Digital Opportunities
AS A RESULT, AN INCREASINGLY BROAD SET OF DIGITAL OPPORTUNITIES ARE EMERGING Social Smart Autonomous Natural Advanced Genomics Search Blockchain LiFi tech robots vehicles language analytics Fully Smart Effective Micro data 3G/4G Drones 5G Biochips Wearables ubiquitous VR/AR phones computing centers
Slide 27: How We Are Organized
HOW WE ARE ORGANIZED Infrastructure Client Solutions VMware Other Aligned Solutions Group Group Businesses Software Defined Data Center Servers Commercial PCs Cloud Services End User Computing Networking Consumer PCs Security Networking & Security Converged and Hyper- Virtual Desktop converged Infra
Slide 28: How We Are Organized
HOW WE ARE ORGANIZED Infrastructure Client Solutions VMware Other Aligned Solutions Group Group Businesses Dell Financial Services Go-to-Market Global Services & Support 34k+ 165+ >40 95% 7 87 Dell EMC Countries Supported Languages Customer Global Command Technical Services Professionals Worldwide S
Slide 29: Business Overview: CSG, ISG, VMware
BUSINESS OVERVIEW CSG ISG VMWARE AND OTHER ALIGNED BUSINESSESBUSINESS OVERVIEW CSG ISG VMWARE AND OTHER ALIGNED BUSINESSES
Slide 30: Business Overview: CSG
BUSINESS OVERVIEW CSGBUSINESS OVERVIEW CSG
Slide 31: Client Solutions Group (CSG)
CLIENT SOLUTIONS GROUP (CSG) Revenue (TTM) Operating Income (TTM) Highlights $ $ Increased worldwide PC unit 41.7B 2.1B share year-over-year for 1 22 consecutive quarters Dell continues to outgrow industry in PCs and flat panel monitors 3 4 Workstation Units Displays 2 PC Revenue # # # 40.7% Share 2
Slide 32: CSG Industry Trends
CSG INDUSTRY TRENDS W ORLDW IDE PC REVENUE FORECAST ($B) PC UNIT SHARE TREND (UNITS SOLD) 75% 65% $250 2% 1 55% CAGR $200 45% 35% $150 Top 3 Vendors (Dell, HP, Lenovo) All Others 25% 1Q'12 2Q'13 3Q'14 4Q'15 1Q'17 2Q'18 $100 DELL Y/Y CHANGE IN GLOBAL PC UNIT SHARE (BPS) $50 22 consecutive quarters of
Slide 33: Dell Maintains the Highest PC Profits in the Industry
DELL MAINTAINS THE HIGHEST PC PROFITS IN THE INDUSTRY Premium enterprise & consumer products Services Best-in-class peripherals and display offerings Global Services Full suite of industry-leading Peripherals support services Financial Flexible financing packages ™ Services Superior direct salesforc
Slide 34: Business Overview: ISG
BUSINESS OVERVIEW ISGBUSINESS OVERVIEW ISG
Slide 35: Infrastructure Solutions Group (ISG)
INFRASTRUCTURE SOLUTIONS GROUP (ISG) Revenue (TTM) Operating Income (TTM) Highlights $ $ Simplified the ISG organization, 34.4B 3.9B aligning leaders and product categories #1 in major storage categories including all-flash array, hyper- converged infrastructure, high-end, Hyperconverged All-Flash A
Slide 36: ISG Industry Trends
ISG INDUSTRY TRENDS Dell Technologies is the clear leader in x86 Servers, External Storage, and Hyperconverged Infrastructure # # # HYPERCONVERGED x86 SERVERS EXTERNAL STORAGE INFRASTRUCTURE 1 1 1 (Revenue, in $B) (Revenue, in $B) (Revenue, in $B) All-Flash Array 27% CAGR $10.1 9% CAGR 0% CAGR 44% $
Slide 37: Servers: Strong Performance and Taking Share
SERVERS: STRONG PERFORMANCE AND TAKING SHARE 1 2 STRONG FINANCIAL PERFORMANCE LEADING SHARE POSITION (REVENUE $B) (x86 SERVERS) Highlights Strong momentum since 2H FY18 – double-digit growth in units and revenue 20.8% for both Q1 and Q2 FY19 70% $5.1 Leading innovator at the forefront of handling wo
Slide 38: Storage: Business Acceleration 2018 and Beyond
STORAGE: BUSINESS ACCELERATION 2018 AND BEYOND One Team Roadmap to Portfolio Investing in Go-to-Market Focus Innovation & Simplification Innovation Improvements Enhancements Significant Progress Made with a Roadmap in Place for Further EnhancementsSTORAGE: BUSINESS ACCELERATION 2018 AND BEYOND One T
Slide 39: Storage: Simplification Driving Innovation
STORAGE: SIMPLIFICATION DRIVING INNOVATION MULTI -YEAR J OURNEY TODAY DNA PILLARS FUTURE-PROOF VMAX PowerMax NOW! High End XTREMIO X2 UNITY MidRange.NEXT Mid Range SC MD3 Entry PowerVault NOW! ISILON Unstructured.NEXT Unstructured ECSSTORAGE: SIMPLIFICATION DRIVING INNOVATION MULTI -YEAR J OURNEY TO
Slide 40: Storage: Success to Date & Next Steps
STORAGE: SUCCESS TO DATE & NEXT STEPS SIGNIFICANT PROGRESS POINTS ROADMAP & FUTURE INITIATIVES Executing plan to grow revenue and take share Triple-Digit Y/Y Storage Revenue Growth Simplifying the portfolio roadmap 12% Growth for in Both the VxRail 1H FY19 while enhancing R&D focus 1 & VxRack Offeri
Slide 41: Business Overview: VMware and Other Aligned Businesses
BUSINESS OVERVIEW VMWARE AND OTHER ALIGNED BUSINESSESBUSINESS OVERVIEW VMWARE AND OTHER ALIGNED BUSINESSES
Slide 42: VMware
VMWARE 1 1 Revenue (TTM) Operating Income (TTM) Highlights $ $ 8.4B 2.8B Double-digit license bookings growth across all major product categories in Q2 FY19 # At the forefront of Software-Defined 1 500k+ 99% Data Center, Hybrid Cloud, and End User Computing Fortune 500 2 Leader in Virtualization Glo
Slide 43: VMware Innovation & Integration Across Dell Technologies Portfolio
VMWARE INNOVATION & INTEGRATION ACROSS DELL TECHNOLOGIES PORTFOLIO Unmatched level of partnership and integration INT EGRAT ED SOLUT IONS BENEFIT S FOR DELL T ECHNOLOGIES Software Defined Storage Well-Positioned as the One-Stop Shop in the Industry $ Software Defined Networking 400M Significantly ex
Slide 44: Dell Technologies Provides a Comprehensive Solution
APPLICAT IONS DELL TECHNOLOGIES PROVIDES A COMPREHENSIVE SOLUTION Digital Transformation IT Transformation Cloud Workforce Transformation Infrastructure Security Transformation Services Consumption Global Services Enabled by Best-in-Class Go-to-Market and Channel Program with Industry-leading Supply
Slide 45: Business Overview Q&A
BUSINESS OVERVIEW Q&A | Jeff Clarke, Vice Chairman, Products & Operations | Michael Dell, Chairman & CEO | Tom Sweet, Chief Financial OfficerBUSINESS OVERVIEW Q&A | Jeff Clarke, Vice Chairman, Products & Operations | Michael Dell, Chairman & CEO | Tom Sweet, Chief Financial Officer
Slide 46: Dell Technologies Analyst Meeting
D@LL Technologies ANALYST MEETING
Slide 47: Go-to-Market
GO-TO-MARKET | Marius Haas, President & Chief Commercial Officer | Bill Scannell, President, Global Enterprise Sales & Customer Operations | Dennis Hoffman, Senior Vice President, Corporate StrategyGO-TO-MARKET | Marius Haas, President & Chief Commercial Officer | Bill Scannell, President, Global En
Slide 48: Dell Technologies Go-to-Market Capability by the Numbers
DELL TECHNOLOGIES GO-TO-MARKET (GTM) CAPABILITY BY THE NUMBERS Largest worldwide IT sales network Direct sellers in 72 countries 150k+ partner network in all countries 34k+ Dell EMC services professionals in 165 countries 180 Countries Covered Captive financing arm (Dell Financial Services) enabling
Slide 49: Targeted, Top to Bottom Coverage of a Segmented IT Market
TARGETED, TOP TO BOTTOM COVERAGE OF A SEGMENTED & EVOLVING IT MARKET ADDRESSABLE MARKET COVERAGE MODEL ELEMENTS OPPORTUNITY Typical Rev. % of Total Architectural Outcome-based Outside-led Inside-led Inbound Channel E-commerce 1 per account ($) ($ spend) advisory solution selling relationship relatio
Slide 50: Building Dell Technologies' Go-to-Market
BUILDING DELL TECHNOLOGIES’ GO-TO-MARKET PHASE 0: Identifying Opportunity Pre-merger <20% commonality in respective top 5k revenue accounts Significant revenue synergy opportunity DT Select & Global Accounts PHASE 1: Initial Guiding Principles Two complementary sales orgs & leaders Enterprise Custom
Slide 51: Go-to-Market Model: Enterprise
GO-TO-MARKET MODEL: ENTERPRISE Housed in Enterprise Housed in CSG Housed in Commercial Housed in Services Alliances Support Enterprise DT Select & Global Accounts Global Technical Global Specialty Presales Storage Sales Tier 1 Global Client & Enterprise Global OEM & Compute Sales Tier 2 IoT Solution
Slide 52: Enterprise Sales Segment Focus Areas
ENTERPRISE SALES SEGMENT FOCUS AREAS Global Enterprise Inside Sales Modern Data Transformation Preferred Investment Center Team OfficeENTERPRISE SALES SEGMENT FOCUS AREAS Global Enterprise Inside Sales Modern Data Transformation Preferred Investment Center Team Office
Slide 53: Realizing the Power of Dell Technologies +
REALIZING THE POWER OF DELL TECHNOLOGIES + FY16 Bookings FY18 Bookings DIGITAL IT WORKFORCE SECURITY Storage All-in Storage All-in TRANSFORMATION TRANSFORMATION TRANSFORMATION TRANSFORMATION A Global $363M $522M $96M $173M SaaS Provider (+278%) (+202%) A Multi-National $157M $292M $100M $145M Bank (
Slide 54: Go-to-Market Model: Commercial
GO-TO-MARKET MODEL: COMMERCIAL Housed in Enterprise Housed in CSG Housed in Commercial Housed in Services Alliances DT Select & Global Accounts Support Enterprise Global Technical Global Specialty Presales Enterprise Storage Sales Global Client & Global OEM & Compute Sales IoT Solutions Sales Execut
Slide 55: Commercial Sales Segment Focus Areas
COMMERCIAL SALES SEGMENT FOCUS AREAS Channel Velocity Storage Program Global OEM Business Public / Federal Sales Enhancements & IoT Sales Coverage Sector Focus Capacity Investments Investments C H A N N E L $ 43B Revenue 1 (Double Digit % Growth ) 1 Channel growth based on Q2 FY19 Y/Y and 1H FY19 Y/
Slide 56: Realizing the Power of Dell Technologies +
REALIZING THE POWER OF DELL TECHNOLOGIES + FY16 Bookings FY18 Bookings DIGITAL IT WORKFORCE SECURITY Storage All-in Storage All-in TRANSFORMATION TRANSFORMATION TRANSFORMATION TRANSFORMATION U.S. Federal $102.0M $296.8M Government $52.0M $165.4M (+96%) (+79%) Customer Financial $27.9M $40.5M $1.6M $
Slide 57: Winning Together in FY18
WINNING TOGETHER IN FY18 1 $ $ 400M 509M +60% Booking Revenue Y/Y Referral Synergies ACV Growth +1.5k +128% +70% +63% Y/Y Enterprise Y/Y Growth in Partner Origination New Cloud Orders Growth Sell Through Opportunities Revenue Customers 1 FY18 stand-alone revenueWINNING TOGETHER IN FY18 1 $ $ 400M 50
Slide 58: Go-to-Market Q&A
GO-TO-MARKET Q&A | Marius Haas, President & Chief Commercial Officer | Bill Scannell, President, Global Enterprise Sales & Customer Operations | Dennis Hoffman, Senior Vice President, Corporate StrategyGO-TO-MARKET Q&A | Marius Haas, President & Chief Commercial Officer | Bill Scannell, President, G
Slide 59: Dell Technologies Analyst Meeting
D@LL Technologies ANALYST MEETING
Slide 60: Strategically Aligned Business Panel
STRATEGICALLY ALIGNED BUSINESS PANEL | Michael Dell, Chairman & CEO – Dell Technologies | Sanjay Poonen, COO, Customer Operations – VMware | Rob Mee, CEO – Pivotal | Mike Cote, President & CEO – SecureworksSTRATEGICALLY ALIGNED BUSINESS PANEL | Michael Dell, Chairman & CEO – Dell Technologies | Sanj
Slide 61: Dell Technologies Executive Leadership Team
DELL TECHNOLOGIES EXECUTIVE LEADERSHIP TEAM Collaborative council focused on the most strategic business decisions to drive Dell Technologies’ value and operationalize our Better Together philosophy Michael Dell Jeff Clarke Mike Cote Allison Dew Howard Elias Pat Gelsinger Marius Haas Dennis Hoffman
Slide 62: Leadership Council Model
LEADERSHIP COUNCIL MODEL Our councils drive collaborative decision-making, resolve key issues, and create better strategic alignment STRATEGY TECHNOLOGY MARKETING GTM SERVICES COUNCIL COUNCIL COUNCIL COUNCIL COUNCIL Data Strategy AI & IoT Cohesive Brand Account Planning Services Catalogue Future Pla
Slide 63: Dell Technologies + VMware: Synergies + Opportunities
Dell Technologies + VMware: Synergies + Opportunities Sanjay Poonen Chief Operating Officer Customer Operations VMware @spoonenDell Technologies + VMware: Synergies + Opportunities Sanjay Poonen Chief Operating Officer Customer Operations VMware @spoonen
Slide 64: VMware Story
VMware Story Security • Software-Defined Digital Data Center Workspace • Hybrid Cloud Desktop Edge/Mobile Apps Data Center Cloud • End-User Computing Cloud FoundationVMware Story Security • Software-Defined Digital Data Center Workspace • Hybrid Cloud Desktop Edge/Mobile Apps Data Center Cloud • End
Slide 65: VMware Vision
VMware Vision The Essential, Ubiquitous Digital FoundationVMware Vision The Essential, Ubiquitous Digital Foundation
Slide 66: VMware Vision and Dell Tech + VMware Synergies
VMware Vision The Essential, Ubiquitous Digital Foundation Dell Tech + VMware Synergies 1. Server Virtualization (vSphere with Dell Servers) 3 2. Hyper-Converged Infrastructure (VxRail as an engineered HCI appliance powered by vSAN) 4 3. Digital Workspace (Workspace ONE with Dell Clients) 4. Develop
Slide 67: Rob Mee, CEO
Rob Mee CEORob Mee CEO
Slide 68: Pivotal Enables Cloud-Native Transformation
Pivotal Enables Cloud-Native Transformation CULTURE PLATFORM Pivotal
Slide 69: Many Workloads, Multi-Cloud, One Platform
Many Workloads, Multi-Cloud, One Platform Pivotal Cloud Foundry” Prot! Prt tl Applation container Fncton saree Trnice sorce Serco orctpiace Fue BOSH Embeaied os Pivotal
Slide 70: Dell Technologies & Pivotal Synergies
Dell Technologies & Pivotal Synergies: ● PKS with VMware ● PRA with Dell EMC ● GTM SynergyDell Technologies & Pivotal Synergies: ● PKS with VMware ● PRA with Dell EMC ● GTM Synergy
Slide 71: Mike Cote, President and CEO
Mike Cote President and CEOMike Cote President and CEO
Slide 72: Secureworks Overview
Secureworks Overview $500M+ 250B 4,300+ • We combine Human and Revenue Events processed Clients in FY19 Estimate daily Machine Intelligence 54 Countries 19% • We have Unmatched Visibility 5 Year CAGR into the threat landscape • We harness the power of the 10 18+ 2,500+ Consecutive times Years of Att
Slide 73: Go-to-Market and Strategic Partnership
Go-to-Market Strategic Product Partnership Partnership $80M Referred ACV EXAMPLE: Virtual 60% YoY Growth est. Application Defense 40,000 Sales Leverage existing Team Members virtual infrastructure Offload burden of Emerging Countries building capture, detect and respond capabilities Keep application
Slide 74: Strategically Aligned Business Panel Q&A
STRATEGICALLY ALIGNED BUSINESS PANEL Q&A | Michael Dell, Chairman & CEO – Dell Technologies | Sanjay Poonen, COO, Customer Operations – VMware | Rob Mee, CEO – Pivotal | Mike Cote, President & CEO – SecureworksSTRATEGICALLY ALIGNED BUSINESS PANEL Q&A | Michael Dell, Chairman & CEO – Dell Technologie
Slide 75: Dell Technologies Analyst Meeting
D@LL Technologies ANALYST MEETING
Slide 76: Financial Performance and Outlook
Financial Performance and Outlook | Tom Sweet, Chief Financial OfficerFinancial Performance and Outlook | Tom Sweet, Chief Financial Officer
Slide 77: Dell Technologies Value Proposition
Dell Technologies Value Proposition Well Positioned in Large Focus on Long-Term Compelling Transaction and Growing Market Growth and Cash Flow for All StockholdersDell Technologies Value Proposition Well Positioned in Large Focus on Long-Term Compelling Transaction and Growing Market Growth and Cash
Slide 78: Well Positioned in Large and Growing Market
Well Positioned Focus on Compelling in Large and Long-Term Growth Transaction for Growing Market and Cash Flow All Stockholders EXPANDING MARKET OPPORTUNITY 1 GROWING MARKET: WW IT SPENDING DELL OUT PERFORMANCE VS. MARKET 4% CAGR 2 $ External Storage +18% 3.5 +14% $ 3.4 3 Mainstream Server +44% +34%
Slide 79: Unique Customer Value Proposition
Well Positioned Focus on Compelling in Large and Long-Term Growth Transaction for Growing Market and Cash Flow All Stockholders UNIQUE CUSTOMER VALUE PROPOSITION Broad solutions offerings Differentiated go-to-market capabilities Cross sell and attach Unmatched global scale and supply chain Financial
Slide 80: Attractive Financial Model
Well Positioned Focus on Compelling in Large and Long-Term Growth Transaction for Growing Market and Cash Flow All Stockholders ATTRACTIVE FINANCIAL MODEL Focus on Long-Term Industry-Leading Free Efficient Capital Growth and Share Gain Cash Flow Conversion Structure and Significant Financial Flexibi
Slide 81: Driving Significant Momentum
Well Positioned Focus on Compelling in Large and Long-Term Growth Transaction for Growing Market and Cash Flow All Stockholders DRIVING SIGNIFICANT MOMENTUM… Dell’s Significant Share Gain Driving Above Market Growth ($ in billions) NON-GAAP REVENUE (T T M) LEVERED FREE CASH FLOW (T T M) $ $ 86.8 7.0
Slide 82: Momentum Across All Business Units
Well Positioned Focus on Compelling in Large and Long-Term Growth Transaction for Growing Market and Cash Flow All Stockholders … ACROSS ALL BUSINESS UNITS ($ in billions) INFRASTRUCTURE SOLUTIONS CLIENT SOLUTIONS GROUP 1 VMW ARE (TTM REVENUE) GROUP (TTM REVENUE) (TTM REVENUE) $ $ 41.7 34.4 $ 8.4 $
Slide 83: Investing to Sustain Long Term Growth
Well Positioned Focus on Compelling in Large and Long-Term Growth Transaction for Growing Market and Cash Flow All Stockholders INVESTING TO SUSTAIN LONG TERM GROWTH GUIDING PRINCIPLES CONT INUED FOCUS AREAS SALES COVERAGE ▪ Disciplined Approach: Investment decisions based on maximizing ROI Focus on
Slide 84: Growth Enhanced by DFS
Well Positioned Focus on Compelling in Large and Long-Term Growth Transaction for Growing Market and Cash Flow All Stockholders GROWTH ENHANCED BY DFS Innovative financing solutions support strong demand growth across segments ▪ Strong demand for financial services across the Dell family ▪ Valuable
Slide 85: Increasing Recurring Revenue Contribution
Well Positioned Focus on Compelling in Large and Long-Term Growth Transaction for Growing Market and Cash Flow All Stockholders INCREASING RECURRING REVENUE CONTRIBUTION Higher-margin services and new revenue models with longer term commitments drive strong cash flow conversion and increase revenue
Slide 86: Cash Flow Generation Is Our Priority
Well Positioned Focus on Compelling in Large and Long-Term Growth Transaction for Growing Market and Cash Flow All Stockholders CASH FLOW GENERATION IS OUR PRIORITY T T M LEVERED FREE CASH FLOW ($ in billions) Favorable working capital dynamics, enabled by efficient supply chain: -53 day cash conver
Slide 87: Strong Balance Sheet and Financial Flexibility
Well Positioned Focus on Compelling in Large and Long-Term Growth Transaction for Growing Market and Cash Flow All Stockholders STRONG BALANCE SHEET AND FINANCIAL FLEXIBILITY ~$13.7B gross debt paid down since the acquisition of EMC DELL T ECHNOLOGIES CORE PRO FORMA LIQUIDITY PROFILE DEBT T RAJECT O
Slide 88: Capital Allocation Strategy and Financial Policy
Well Positioned Focus on Compelling in Large and Long-Term Growth Transaction for Growing Market and Cash Flow All Stockholders CAPITAL ALLOCATION STRATEGY AND FINANCIAL POLICY Committed to a disciplined framework as we re-emerge in the public equity markets SINCE CLOSE OF EMC ACQUISITION MEDIUM TER
Slide 89: Financial Guidance and Long Term Targets
Well Positioned Focus on Compelling in Large and Long-Term Growth Transaction for Growing Market and Cash Flow All Stockholders FINANCIAL GUIDANCE LONG T ERM T ARGETS AT CURRENT MARKET PROJECTIONS FY19 GUIDANCE Revenue Performance vs. Market (Orders Basis) TO TAL $90.5B – 92.0B 4-6% CAGR Grow at a p
Slide 90: Opportunity for DVMT Stockholders
Well Positioned Focus on Compelling in Large and Long-Term Growth Transaction for Growing Market and Cash Flow All Stockholders OPPORTUNITY FOR DVMT STOCKHOLDERS PROPOSED TRANSACTION UNMATCHED ASSET PORTFOLIO 1 $109 CASH DVMT Tracking Stock 100% | ISG / CSG 2 81% % Premium ◼ Tracks the economic perf
Slide 91: Attractive Pro Forma Valuation
Well Positioned Focus on Compelling in Large and Long-Term Growth Transaction for Growing Market and Cash Flow All Stockholders ATTRACTIVE PRO FORMA VALUATION CY17 – CY18E REVENUE GROWT H LT M EQUIT Y VALUE / LEVERED FREE CASH FLOW 3 57.9x 17.3x 13.6% 16.6x 9.8% 10.9x 10.9x 9.6x 6.6% 6.3% 4.9x 2.2%
Slide 92: Overview of Process and Governance
Well Positioned Focus on Compelling in Large and Long-Term Growth Transaction for Growing Market and Cash Flow All Stockholders OVERVIEW OF PROCESS AND GOVERNANCE T HOROUGH PROCESS LED BY INDEPENDENT SPECIAL COMMIT T EE 1 ◼ Special Committee created and composed of two independent and credible direc
Slide 93: Committed Long-Term Stockholders with Strong Track Records
Well Positioned Focus on Compelling in Large and Long-Term Growth Transaction for Growing Market and Cash Flow All Stockholders COMMITTED LONG-TERM STOCKHOLDERS WITH STRONG PUBLIC MARKET TRACK RECORDS Total DVMT Total Historic DELL Weighted Average Annual Stock Price Stockholder Return Stockholder R
Slide 94: Key Takeaways
KEY TAKEAWAYS WELL POSITIONED IN LARGE AND GROWING MARKET 1 FOCUS ON LONG -TERM GROWTH AND SHARE GAIN 2 INDUSTRY LEADING CASH FLOW CONVERSION 3 EFFICIENT CAPITAL STRUCTURE AND SIGNIFICANT FINANCIAL FLEXIBILITY 4 COMPELLING TRANSACTION FOR ALL STOCKHOLDERS 5KEY TAKEAWAYS WELL POSITIONED IN LARGE AND
Slide 95: Financial Performance and Outlook Q&A
Financial Performance and Outlook Q&A | Tom Sweet, Chief Financial OfficerFinancial Performance and Outlook Q&A | Tom Sweet, Chief Financial Officer
Slide 96: Thank You
Thank YouThank You
Slide 97: Appendix: Supplementary Materials
Appendix: Supplementary Materials Appendix: Supplementary Materials
Slide 98: Capital Structure
1 CAPITAL STRUCTURE Q2 FY19 ($ in billions) EMC Close Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Cash & Investments $ 15.5 $ 15.2 $ 18.0 $ 20.3 $ 21.7 $ 21.5 Cash & Investments (excluding Unrestricted Subsidiaries) 6.8 6.0 6.1 8.3 8.1 7.2 2 Core Secured Debt 35.4 29.3 29.1 28.7 29.1 28.9 Core Unsecured Debt 13.4
Slide 99: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION Dell Technologies Consolidated (Quarterly) ($ in Millions) Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 FY18 Q1 FY19 Q2 FY19 YTD FY19 GAAP Net revenue 18,000 19,521 19,556 21,963 79,040 21,356 22,942 44,298 Impact of purchase accounting 355 335 295 284 1,269 187 180 367 Non-GAAP N
Slide 100: GAAP to Non-GAAP Reconciliation: Summary Overview
GAAP TO NON-GAAP RECONCILIATION Summary overview Ex. Public Subs VMW PVTL SCWX Dell Technologies Consolidated Ex. Public Subs VMW PVTL SCWX Dell Technologies Consolidated Q2 FY19 TTM ($ in Millions) As Reported10-Q / 10-K Calculated Core Dell As Reported 10-Q / 10-K ($ in millions) Calculated Core D
Slide 101: GAAP to Non-GAAP Reconciliation (Cont'd)
GAAP TO NON-GAAP RECONCILIATION (CONT’D) Dell Technologies Consolidated Q2 FY19 TTM ($ in Millions) FY18 +Q2 FY19 YTD -Q2 FY18 YTD Q2 FY19 TTM ($ in millions) FY18 + YTD FY19 - YTD FY18 TTM GAAP Net revenue 79,040 44,298 37,521 85,817 Impact of purchase accounting 1,269 367 690 946 Non-GAAP Net reve
Slide 102: GAAP to Non-GAAP Reconciliation: SecureWorks
GAAP TO NON-GAAP RECONCILIATION (CONT’D) SecureWorks Q2 FY19 TTM ($ in Millions) FY18 +Q2 FY19 YTD -Q2 FY18 YTD Q2 FY19 TTM ($ in millions) FY18 + YTD FY19 - YTD FY18 TTM GAAP Net revenue 468 255 230 493 Impact of purchase accounting - - - Non-GAAP Net revenue 468 255 230 493 GAAP Operating income /
Slide 103: GAAP to Non-GAAP Reconciliation: Pivotal
GAAP TO NON-GAAP RECONCILIATION (CONT’D) Pivotal Q2 FY19 TTM ($ in Millions) FY18 +Q2 FY19 YTD -Q2 FY18 YTD Q2 FY19 TTM ($ in millions) FY18 + YTD FY19 - YTD FY18 TTM GAAP Net revenue 509 320 247 582 Impact of purchase accounting - - - - Non-GAAP Net revenue 509 320 247 582 GAAP Operating income / (
Slide 104: GAAP to Non-GAAP Reconciliation: VMware
GAAP TO NON-GAAP RECONCILIATION (CONT’D) VMware Q2 FY19 TTM ($ in Millions) FY18 +Q2 FY19 YTD -Q2 FY18 YTD Q2 FY19 TTM ($ in millions) FY18 + YTD FY19 - YTD FY18 TTM GAAP Net revenue 7,862 4,183 3,698 8,347 Impact of purchase accounting - - - - Non-GAAP Net revenue 7,862 4,183 3,698 8,347 GAAP Opera
Slide 105: GAAP to Non-GAAP Reconciliation: Derived Core Dell
GAAP TO NON-GAAP RECONCILIATION (CONT’D) Derived “Core Dell” (Excluding Public Subsidiaries) Q2 FY19 TTM ($ in Millions) FY18 +Q2 FY19 YTD -Q2 FY18 YTD Q2 FY19 TTM ($ in millions) FY18 + YTD FY19 - YTD FY18 TTM GAAP Net revenue 70,201 39,540 33,346 76,395 Impact of purchase accounting 1,269 367 690