Seagate Technology Holdings Plc · NASDAQ:STX
Seagate Technology — Q4 2023 Earnings Presentation
20 slides from Seagate Technology's earnings presentation, Jul 26, 2023
Slide 1: Supplemental Financial Information Fiscal Q4 2023
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) July 26, 2023 SUPPLEMENTAL FINANCIAL INFORMATION Q4FY23 Seagate | FY23 | 1
Slide 2: Safe Harbor Statement
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) July 26, 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 expectations of
Slide 3: Use of Non-GAAP Financial Information
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) July 26, 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 measure
Slide 4: Executive Summary
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) Executive Summary FQ4 results reflect resilient operational & financial execution amid a difficult macro backdrop • Revenue at $1.6B, reflecting the uneven pace of economic recovery in China, cloud inventory digestion, a
Slide 5: Q4FY23 Financial Highlights
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) July 26, 2023 Q4FY23 Financial Highlights $1.60B 19.0% 1.6% -$0.44 91EB REVENUE GROSS MARGIN OPERATING MARGIN DILUTED EPS HDD CAPACITY GAAP GAAP GAAP SHIPPED $218M 19.5% 3.4% -$0.18 6.4TB CASH FLOW GROSS MARGIN OPERATING
Slide 6: FY23 Financial Highlights
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) July 26, 2023 FY23 Financial Highlights $7.38B 18.3% -4.6% -$2.56 441EB REVENUE GROSS MARGIN OPERATING MARGIN DILUTED EPS HDD CAPACITY GAAP GAAP GAAP SHIPPED $942M 21.1% 5.6% $0.19 $990M CASH FLOW GROSS MARGIN OPERATING
Slide 7: Q4FY23 Market Highlights
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) Q4FY23 Market Highlights Legacy Mass Capacity Non-HDD • Legacy revenue up 8% sequentially • Mass Capacity results impacted by softer • Non-HDD revenue down 15% sequentially, reflecting higher demand for mission critical
Slide 8: Quarterly Financial Trends
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) July 26, 2023 Quarterly Financial Trends Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 QoQ YoY GAAP Results In Q4FY23: Revenue ($M) 2,628 2,035 1,887 1,860 1,602 -14% -39% • Revenue in the lower half of Gross Margin % Operating Exp
Slide 9: HDD Product Trends
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) July 26, 2023 HDD Product Trends Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 QoQ YoY Capacity Shipped (EB) 154.6 118.2 112.5 118.7 91.2 -23% -41% Mass Capacity 138.5 104.0 96.7 104.1 75.2 -28% -46% Nearline 119.0 85.1 79.7 86.8 5
Slide 10: Cash, Cash Flow, and Operational Trends
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) July 26, 2023 Cash, Cash Flow, and Operational Trends Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 In Q4FY23: Cash1 ($M) 615 761 770 766 786 Debt ($M) 5,646 6,249 6,029 5,958 5,451 • Reduced Debt by $507M, down 9% QoQ, primarily C
Slide 11: Capital Structure
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) July 26, 2023 Capital Structure $M Debt Maturity Profile1 $800 $750 $663 $582 $612 $572 $2.3B Liquidity2 $600 $496 $519 $495 $490 • $786M Cash • $1.5B Revolving credit facility $400 $5.5B Debt3 $275 • Weighted average in
Slide 12: Debt Metrics
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) July 26, 2023 Debt Metrics Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Debt ($M) 5,646 6,249 6,029 5,958 5,451 Cash and cash equivalents ($M) 615 761 770 766 786 Net Debt ($M) 5,031 5,488 5,259 5,192 4,665 LTM Cash Interest Expen
Slide 13: Environmental, Social and Governance
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) July 26, 2023 Environmental, Social and Governance Seagate | FY23 | 13
Slide 14: 2022 Sustainable Datasphere Report Highlights
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) July 26, 2023 2022 Sustainable Datasphere Report Highlights ~281K 99% Of non-manufacturing ~21K MWh 87% 131 20% hours of learning and of electricity saved through energy (~27K metric tons) of non- different engagements i
Slide 15: Reconciliation Tables
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) July 26, 2023 RECONCILIATION TABLES Seagate | FY23 | 15
Slide 16: Reconciliation of GAAP to Non-GAAP Gross Profit and Operating Expenses
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) July 26, 2023 Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit ($M) Q4FY22 FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 FY23 GAAP Gross Profit 759 3,469 482 246 319 304 1,351 Accelerated depreciation, impairment and othe
Slide 17: Reconciliation of GAAP Net Income to Non-GAAP Net Income
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) July 26, 2023 Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss) ($M) Q4FY22 FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 FY23 GAAP Net Income (Loss) 276 1,649 29 (33) (433) (92) (529) Accelerated depreciation, i
Slide 18: Free Cash Flow and Adjusted EBITDA Reconciliation
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) July 26, 2023 Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow ($M) Q4FY22 FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 FY23 Net Cash Provided by Operating Activities 180 1657 245 251 228 218 942 Acquisi
Slide 19: Non-GAAP Measures Adjusted for the Following Items
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) July 26, 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 the inco
Slide 20: Non-GAAP Definitions: Free Cash Flow and EBITDA
Supplemental Financial Information Fiscal Q4 2023 (quarter ended June 30, 2023) July 26, 2023 Income tax adjustments Provision or benefit for income taxes represents the tax effects of non-GAAP adjustments determined using a hybrid with and without method and effective tax rate for the applicable ad
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