Seagate Technology Holdings Plc · NASDAQ:STX
Seagate Technology — Q1 2023 Earnings Presentation
18 slides from Seagate Technology's earnings presentation, Oct 26, 2022
Slide 1: Supplemental Financial Information Q1FY23
Supplemental Financial Information Fiscal Q1 2023 (quarter ended September 30, 2022) October 26, 2022 SUPPLEMENTAL FINANCIAL INFORMATION Q1FY23 Seagate | FY23 | 1
Slide 2: Safe Harbor Statement
Supplemental Financial Information Fiscal Q1 2023 (quarter ended September 30, 2022) October 26, 2022 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 expecta
Slide 3: Use of Non-GAAP Financial Information
Supplemental Financial Information Fiscal Q1 2023 (quarter ended September 30, 2022) October 26, 2022 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 Q1 2023 (quarter ended September 30, 2022) Executive Summary FQ1’23 results impacted by global macro factors & customer inventory adjustments • Revenue: $2.04B, inside our revised guidance range $ • • Non-GAAP Gross Margin 24.5% Non-GAAP EPS of $0.48 Taking
Slide 5: Q1FY23 Financial Highlights
Supplemental Financial Information Fiscal Q1 2023 (quarter ended September 30, 2022) October 26, 2022 Q1FY23 Financial Highlights $2.04B 23.7% 5.3% $0.14 118EB REVENUE GROSS MARGIN OPERATING MARGIN DILUTED EPS HDD CAPACITY GAAP GAAP GAAP SHIPPED $245M 24.5% 9.0% $0.48 7.5TB CASH FLOW GROSS MARGIN OP
Slide 6: Q1FY23 Market Highlights
Supplemental Financial Information Fiscal Q1 2023 (quarter ended September 30, 2022) October 26, 2022 Q1FY23 Market Highlights • Mass capacity demand impacted by COVID lockdowns and • Legacy revenue declined as on-going inflationary the related economic slowdown in China, broad-based pressures and d
Slide 7: Quarterly Financial Trends
Supplemental Financial Information Fiscal Q1 2023 (quarter ended September 30, 2022) October 26, 2022 Quarterly Financial Trends Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 QoQ YoY GAAP Results Revenue ($M) 3,115 3,116 2,802 2,628 2,035 -23% -35% In Q1FY23: Gross Margin % 30.7% 30.4% 28.8% 28.9% 23.7% -5.2 p
Slide 8: HDD Product Trends
Supplemental Financial Information Fiscal Q1 2023 (quarter ended September 30, 2022) October 26, 2022 HDD Product Trends Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 QoQ YoY Capacity Shipped (EB) 159.1 163.2 154.2 154.6 118.2 -24% -26% Mass Capacity 132.3 137.1 132.7 138.5 104.0 -25% -21% Nearline 106.4 111.0
Slide 9: Cash, Cash Flow, and Operational Trends
Supplemental Financial Information Fiscal Q1 2023 (quarter ended September 30, 2022) October 26, 2022 Cash, Cash Flow, and Operational Trends Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 In Q1FY23: Cash1 ($M) 991 1,535 1,138 615 761 Debt ($M) 5,136 5,861 5,644 5,646 6,249 • Cash from Operations of $245M, up 3
Slide 10: Capital Structure
Supplemental Financial Information Fiscal Q1 2023 (quarter ended September 30, 2022) October 26, 2022 Capital Structure $M $800 Debt Maturity Profile1 $698 $649 $627 $629 $600 $608 $614 $2.5B Liquidity2 $500 $500 $500 $500 $490 • $761M Cash • $1.75B Revolving credit facility $400 $6.2B Debt3 • Low w
Slide 11: Debt Metrics
Supplemental Financial Information Fiscal Q1 2023 (quarter ended September 30, 2022) October 26, 2022 Debt Metrics Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Debt ($M) 5,136 5,861 5,644 5,646 6,249 Cash and cash equivalents ($M) 991 1,535 1,138 615 761 Net Debt ($M) 4,145 4,326 4,506 5,031 5,488 LTM Cash In
Slide 12: Environmental, Social and Governance
Supplemental Financial Information Fiscal Q1 2023 (quarter ended September 30, 2022) October 26, 2022 Environmental, Social and Governance Seagate | FY23 | 12
Slide 13: Delivering on ESG Priorities
Supplemental Financial Information Fiscal Q1 2023 (quarter ended September 30, 2022) October 26, 2022 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: Governance
Supplemental Financial Information Fiscal Q1 2023 (quarter ended September 30, 2022) October 26, 2022 ESG Focus: Governance Our Corporate Governance standards and practices ensure Seagate’s longevity as a company. We are committed to being responsible to our ENVIRONMENT SOCIAL GOVERNANCE stakeholder
Slide 15: Reconciliation Tables
Supplemental Financial Information Fiscal Q1 2023 (quarter ended September 30, 2022) October 26, 2022 RECONCILIATION TABLES Seagate | FY23 | 15
Slide 16: Reconciliation of GAAP to Non-GAAP Gross Profit and Operating Expenses
Supplemental Financial Information Fiscal Q1 2023 (quarter ended September 30, 2022) October 26, 2022 Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit ($M) Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 GAAP Gross Profit 956 948 806 759 482 Accelerated depreciation, impairment and other charges rela
Slide 17: Reconciliation to Free Cash Flow and EBITDA
Supplemental Financial Information Fiscal Q1 2023 (quarter ended September 30, 2022) October 26, 2022 Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow ($M) Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Net Cash Provided by Operating Activities 496 521 460 180 245 Acquisition of pro
Slide 18: Non-GAAP Measures Adjusted for the Following Items
Supplemental Financial Information Fiscal Q1 2023 (quarter ended September 30, 2022) October 26, 2022 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
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