Western Digital : Fourth Quarter Fiscal 2022 Earnings Presentation

Fiscal Fourth Quarter & Year 2022 Financial Results

Western Digital	August 5, 2022

2

WEST ERN DIGIT AL CONFIDENT IAL

© 2022 WEST ERN DIGIT AL CORPORAT ION OR IT S AFFILIAT ES ALL RIGHT S RESERVED

Forward Looking Statements

SAFE HARBOR

This presentation contains forward-looking statements within the meaning of federal securities laws, including statements regarding expectations for the company's business outlook and financial performance for the fiscal first quarter of 2023; product ramps; product momentum; and capital expenditure and allocation priorities. These forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements.

Key risks and uncertainties include future responses to and effects of the COVID-19 pandemic; volatility in global economic conditions; impact of business and market conditions; the outcome and impact of our ongoing strategic review, including with respect to customer and supplier relationships, regulatory and contractual restrictions, stock price volatility and the diversion of management's attention from ongoing business operations and opportunities; impact of competitive products and pricing; our development and introduction of products based on new technologies and expansion into new data storage markets; risks associated with cost saving initiatives, restructurings, acquisitions, divestitures, mergers, joint ventures and our strategic relationships; difficulties or delays in manufacturing or other supply chain disruptions; hiring and retention of key employees; our level of debt and other financial obligations; changes to our relationships with key customers; disruptions in operations from cybersecurity incidents or other system security risks; actions by competitors; risks associated with compliance with changing legal and regulatory requirements and the outcome of legal proceedings; and other risks and uncertainties listed in the company's filings with the Securities and Exchange Commission (the "SEC") and available on the SEC's website at www.sec.gov, including our Form 10-K filed with the SEC on August 27, 2021, to which your attention is directed. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the company undertakes no obligation to update or revise these forward-looking statements to reflect new information or events, except as required by law.

This presentation also contains preliminary financial results for the company's fiscal fourth quarter ended July 1, 2022 and fiscal year 2022. These preliminary

financial results represent the most current information available to management. The company's actual results when disclosed in its Form 10-K for the year ended July 1, 2022 may differ from these preliminary results as a result of the completion of the company's financial closing procedures; final adjustments; completion of the review and audit by the company's independent registered accounting firm; and other developments that may arise between now and disclosure of the final results.

This presentation includes references to Non-GAAP financial measures. Reconciliations of the differences between the Non-GAAP measures provided in this presentation to the comparable GAAP financial measures are included in the appendix and in the Investor Relations section of our website. We have not fully reconciled our Non-GAAP financial measure guidance to the most directly comparable GAAP measures because material items that impact these measures are not in our control and/or cannot be reasonably predicted. Accordingly, a full reconciliation of the Non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort.

3

WEST ERN DIGIT AL CONFIDENT IAL

© 2022 WEST ERN DIGIT AL CORPORAT ION OR IT S AFFILIAT ES ALL RIGHT S RESERVED

Fiscal Fourth Quarter Executive Summary

Financial Results •	Revenue of $4.5B	•	Operating cash flow of $295M
•	Non-GAAP diluted net earnings per share of $1.78	•	Free cash flow of $(97)M
•	Non-GAAP gross margin of 32.3%	•	Cash and cash equivalents of $2.3B

	Corporate	•	Our longstanding and growing relationships with hyperscale and OEM customers across the world, coupled with our
			leadership in commercializing innovations for capacity enterprise hard drives and momentum with NVMe enterprise SSD
			for datacenter, have made us a trusted partner.
	Flash	•	Enterprise SSD revenue more than doubled sequentially in the quarter and for fiscal year 2022.
		•	Gaming exabyte shipment grew nearly 70% year-over-year. WD_BLACK SSD certified for Sony PS5 game consoles.
		•	BiCS5 represented approximately half of Flash revenue, and we are preparing to ramp BiCS6 late this calendar year and
			into 2023.
	Hard Drives	•	Strong demand from our cloud customers for our latest generation energy assisted drives drove a near record nearline
			shipment of 111 exabytes.
		•	Shipping 22-terabyte CMR drives, and qualification of our 26-terabyte SMR drive is underway.
		•	Ramping a second cloud customer with SMR technology this quarter and remain on track to lead the industry's transition
			to SMR based drives for the cloud.
		•	Confident in our multi-year product roadmap of capacity enterprise drives, which combine ePMR, OptiNAND, UltraSMR
			and triple stage actuators to deliver a cutting-edge portfolio of drives, in commercial volumes, at a wide variety of capacity
			points.

See Appendix for GAAP to non-GAAP Reconciliations.

4

WEST ERN DIGIT AL CONFIDENT IAL

© 2022 WEST ERN DIGIT AL CORPORAT ION OR IT S AFFILIAT ES ALL RIGHT S RESERVED

Revenue Trends by End Market

		Cloud			Client		Consumer
	In billions			In billions			In billions

Revenue	Revenue	Revenue
$2.1 billion	$1.6 billion	$0.8 billion

Increased 18% QoQ	Decreased 5% QoQ	Decreased 9% QoQ
Increased 5% YoY	Decreased 14% YoY	Decreased 23% YoY

5 WEST ERN DIGIT AL CONFIDENT IAL© 2022 WEST ERN DIGIT AL CORPORAT ION OR IT S AFFILIAT ES ALL RIGHT S RESERVED

Flash and Hard Drive Metrics

Flash Revenue and Gross Margin		Hard Drive Revenue and Gross Margin
In billions		In billions

Flash

• Bit shipments: increased 6% QoQ Q4F22 ▪ ASP/Gigabyte:

Results	▪ Blended: increased 2% QoQ
	▪ Like-for-like: up slightly QoQ

Hard Drive

Q4F22	▪	Exabyte shipments: increased 1% QoQ
Results	▪	ASP per drive: $120

See Appendix for Supplemental Operating Segment Results.