WESTERN DIGITAL

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Western Digital : Fourth Quarter Fiscal 2022 Earnings Presentation

08/05/2022 | 08:36am EDT

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.

Disclaimer

Western Digital Corporation published this content on 05 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2022 12:35:02 UTC.


© Publicnow 2022
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Financials (USD)
Sales 2022 18 857 M - -
Net income 2022 1 551 M - -
Net Debt 2022 4 631 M - -
P/E ratio 2022 9,30x
Yield 2022 -
Capitalization 14 503 M 14 503 M -
EV / Sales 2022 1,01x
EV / Sales 2023 1,23x
Nbr of Employees 65 600
Free-Float 99,6%
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David V. Goeckeler Chief Executive Officer & Director
Wissam Georges Jabre Chief Financial Officer & Executive Vice President
Matthew E. Massengill Co-Chief Operating Officer
Srinivasan Sivaram President-Technology & Strategy
Martin I. Cole Independent Director
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