Seagate Technology Holdings Plc · NASDAQ:STX
Seagate Technology — Q2 2023 Earnings Presentation
18 slides from Seagate Technology's earnings presentation, Jan 25, 2023
Slide 1: Supplemental Financial Information Q2FY23
Supplemental Financial Information Fiscal Q2 2023 (quarter ended December 30, 2022) January 25, 2023 SUPPLEMENTAL FINANCIAL INFORMATION Q2FY23 Seagate | FY23 | 1
Slide 2: Safe Harbor Statement
Supplemental Financial Information Fiscal Q2 2023 (quarter ended December 30, 2022) January 25, 2023 Safe Harbor Statement This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectat
Slide 3: Use of Non-GAAP Financial Information
Supplemental Financial Information Fiscal Q2 2023 (quarter ended December 30, 2022) January 25, 2023 Use of Non-GAAP Financial Information To supplement the consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses non-GAAP
Slide 4: Executive Summary
Supplemental Financial Information Fiscal Q2 2023 (quarter ended December 30, 2022) Executive Summary Q2FY23 results reflect operational resilience amid ongoing market challenges $ • Delivered top and bottom-line results slightly above guidance mid-point • Generated positive free cash flow of $172M,
Slide 5: Q2FY23 Financial Highlights
Supplemental Financial Information Fiscal Q2 2023 (quarter ended December 30, 2022) January 25, 2023 Q2FY23 Financial Highlights $1.89B 13.0% -8.5% -$0.16 113EB REVENUE GROSS MARGIN OPERATING MARGIN DILUTED EPS HDD CAPACITY GAAP GAAP GAAP SHIPPED $251M 21.4% 5.8% $0.16 7.3TB CASH FLOW GROSS MARGIN O
Slide 6: Q2FY23 Market Highlights
Supplemental Financial Information Fiscal Q2 2023 (quarter ended December 30, 2022) Q2FY23 Market Highlights Legacy Mass Capacity Non-HDD • Legacy revenue up 8% sequentially, • Nearline near-term demand impacted by • Enterprise Systems revenue lower following reflecting a slight seasonal uptick in h
Slide 7: Quarterly Financial Trends
Supplemental Financial Information Fiscal Q2 2023 (quarter ended December 30, 2022) January 25, 2023 Quarterly Financial Trends Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 QoQ YoY GAAP Results Revenue ($M) 3,116 2,802 2,628 2,035 1,887 -7% -39% In Q2FY23: Gross Margin % 30.4% 28.8% 28.9% 23.7% 13.0% -10.7 pp
Slide 8: HDD Product Trends
Supplemental Financial Information Fiscal Q2 2023 (quarter ended December 30, 2022) January 25, 2023 HDD Product Trends Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 QoQ YoY Capacity Shipped (EB) 163.2 154.2 154.6 118.2 112.5 -5% -31% Mass Capacity 137.1 132.7 138.5 104.0 96.7 -7% -29% Nearline 111.0 117.5 119
Slide 9: Cash, Cash Flow, and Operational Trends
Supplemental Financial Information Fiscal Q2 2023 (quarter ended December 30, 2022) January 25, 2023 Cash, Cash Flow, and Operational Trends Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 In Q2FY23: Cash1 ($M) 1,535 1,138 615 761 770 Debt ($M) 5,861 5,644 5,646 6,249 6,029 • Reduced Debt by $220M, down 4% QoQ C
Slide 10: Capital Structure
Supplemental Financial Information Fiscal Q2 2023 (quarter ended December 30, 2022) January 25, 2023 Capital Structure $M Debt Maturity Profile1 $800 $750 $698 $668 $649 $608 $586 $617 $2.5B Liquidity2 $600 $500 $490 • $770M Cash • $1.75B Revolving credit facility $400 $295 $6.0B Debt3 • Weighted av
Slide 11: Debt Metrics
Supplemental Financial Information Fiscal Q2 2023 (quarter ended December 30, 2022) January 25, 2023 Debt Metrics Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Debt ($M) 5,861 5,644 5,646 6,249 6,029 Cash and cash equivalents ($M) 1,535 1,138 615 761 770 Net Debt ($M) 4,326 4,506 5,031 5,488 5,259 LTM Cash Int
Slide 12: Environmental, Social and Governance
Supplemental Financial Information Fiscal Q2 2023 (quarter ended December 30, 2022) January 25, 2023 Environmental, Social and Governance Seagate | FY23 | 12
Slide 13: Delivering on ESG Priorities
Supplemental Financial Information Fiscal Q2 2023 (quarter ended December 30, 2022) January 25, 2023 Delivering on ESG Priorities Environmental Social Governance • 100% renewable energy by 2030, • Policy and controls for global working • Enterprise Security Risk across our entire global operations1
Slide 14: ESG Focus: Social
Supplemental Financial Information Fiscal Q2 2023 (quarter ended December 30, 2022) January 25, 2023 ESG Focus: Social “As a multinational company, we have found that the more we embrace DEI, the better we understand the many people we serve. This fuels our ENVIRONMENT SOCIAL GOVERNANCE innovation t
Slide 15: Reconciliation Tables
Supplemental Financial Information Fiscal Q2 2023 (quarter ended December 30, 2022) January 25, 2023 RECONCILIATION TABLES Seagate | FY23 | 15
Slide 16: Reconciliation of GAAP to Non-GAAP Gross Profit and Operating Expenses
Supplemental Financial Information Fiscal Q2 2023 (quarter ended December 30, 2022) January 25, 2023 Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit ($M) Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 GAAP Gross Profit 948 806 759 482 246 Accelerated depreciation, impairment and other charges relat
Slide 17: Reconciliation of GAAP to Non-GAAP Diluted EPS
Supplemental Financial Information Fiscal Q2 2023 (quarter ended December 30, 2022) January 25, 2023 Reconciliation of GAAP Diluted Net Income (Loss) Per Share to Non-GAAP Diluted Net Income Per Share ($) Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 GAAP Diluted Net Income (Loss) Per Share $2.23 $1.56 $1.27 $
Slide 18: Non-GAAP Measures Adjusted for the Following Items
Supplemental Financial Information Fiscal Q2 2023 (quarter ended December 30, 2022) January 25, 2023 Non-GAAP Measures Adjusted for the Following Items: Accelerated depreciation, impairment and other charges related to cost saving efforts These expenses are excluded in the non-GAAP measures due to t
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