Exhibit 99.2
Amounts in millions, except per share amounts, ASP, percentages Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY159
TAM 159.5 165.8 176.3 119.1 146.4 156.7 139.1 135.8 135.9 133.3 140.2 142.2 138.1 138.0 147.3 140.8 Revenue by Channel R4Q Ending Q2 FY15
HDD Share 31.2% 32.5% 32.8% 23.9% 30.2% 45.3% 44.9% 43.6% 44.3% 44.9% 44.7% 44.4% 43.8% 45.7% 44.0% 43.4%
Units (HDD)2 49.8 53.8 57.8 28.5 44.2 71.0 62.5 59.2 60.2 59.9 62.6 63.1 60.4 63.1 64.7 61.0 Retail 13%
ASP (HDD) $45 $44 $46 $69 $68 $65 $62 $62 $61 $60 $58 $60 $58 $56 $58 $60 Distributors 24% OEM 63%
Revenue $2,252 $2,403 $2,694 $1,995 $3,035 $4,754 $4,035 $3,824 $3,764 $3,728 $3,804 $3,972 $3,703 $3,651 $3,943 $3,888
Gross Profit $410 $469 $541 $648 $977 $1,472 $1,193 $1,059 $1,061 $1,050 $1,099 $1,156 $1,076 $1,029 $1,149 $1,132
Gross Margin 18.2% 19.5% 20.1% 32.5% 32.2% 31.0% 29.6% 27.7% 28.2% 28.2% 28.9% 29.1% 29.1% 28.2% 29.1% 29.1%
R&D $179 $188 $193 $191 $265 $406 $396 $378 $396 $402 $401 $416 $418 $426 $437 $426
SG&A 63 77 71 85 122 178 179 162 185 180 132 226 201 202 220 164
Other 10 32 18 210 48 80 26 41 63 689 24 36 38 49 23 54
Total Operating Expenses $252 $297 $282 $486 $435 $664 $601 $581 $644 $1,271 $557 $678 $657 $677 $680 $644
Operating Income (Loss) $158 $172 $259 $162 $542 $808 $592 $478 $417 $(221) $542 $478 $419 $352 $469 $488
Net Income (Loss) $146 $158 $239 $145 $483 $745 $519 $335 $391 $(265) $495 $430 $375 $317 $423 $460
EPS $0.62 $0.67 $1.01 $0.61 $1.96 $2.87 $2.06 $1.36 $1.60 $(1.12) $2.05 $1.77 $1.55 $1.32 $1.76 $1.93
Diluted Shares Outstanding 236 237 237 237 246 260 252 246 245 236 242 243 242 241 240 238
Non-GAAP Results Gross Profit10 $410 $469 $541 $648 $1,077 $1,511 $1,231 $1,097 $1,099 $1,085 $1,135 $1,196 $1,115 $1,078 $1,188 $1,187
Gross Margin10 18.2% 19.5% 20.1% 32.5% 35.5% 31.8% 30.5% 28.7% 29.2% 29.1% 29.8% 30.1% 30.1% 29.5% 30.1% 30.5%
Net Income $156 $193 $260 $358 $619 $872 $594 $513 $514 $477 $514 $532 $470 $445 $504 $539
EPS6 $0.66 $0.81 $1.10 $1.51 $2.52 $3.35 $2.36 $2.09 $2.10 $1.96 $2.12 $2.19 $1.94 $1.85 $2.10 $2.26
Revenue By Channel OEM 47% 55% 53% 59% 64% 69% 63% 61% 60% 66% 64% 62% 62% 65% 63% 63% Revenue by Geography R4Q Ending Q2 FY15
Distributors 33% 29% 29% 25% 28% 21% 24% 24% 26% 23% 24% 24% 25% 23% 24% 23%
Retail 20% 16% 18% 16% 8% 10% 13% 15% 14% 11% 12% 14% 13% 12% 13% 14% Americas 26%
Revenue by Geography Americas 22% 20% 19% 22% 21% 27% 23% 27% 27% 28% 26% 25% 25% 24% 27% 27% Asia/ANZ 52% EMEA 22%
EMEA 24% 20% 22% 21% 18% 18% 18% 23% 22% 19% 20% 23% 21% 20% 21% 24%
Asia/ANZ 54% 60% 59% 57% 61% 55% 59% 50% 51% 53% 54% 52% 54% 56% 52% 49%
Top 10 Customers Revenue 49% 53% 49% 51% 53% 53% 44% 45% 45% 48% 48% 42% 44% 45% 45% 44%
Enterprise SSD Revenue $- $- $- $- $11 $54 $70 $89 $92 $104 $106 $155 $134 $113 $156 $187
PC Units5 Notebook 16.227 16.867 19.622 9.814 18.067 32.773 25.887 21.300 21.547 23.989 22.912 22.662 21.814 22.899 23.396 21.178
Desktop 20.118 22.348 21.588 11.391 15.975 21.211 16.819 17.717 18.383 16.185 17.307 16.825 16.635 16.182 16.320 15.375
Non-PC Units Consumer Electronics4 4.765 6.459 7.188 2.352 3.643 4.155 8.019 6.452 6.517 6.544 8.474 8.794 8.573 10.906 10.485 9.295
Branded 6.404 5.672 7.060 3.191 2.926 4.986 5.767 7.139 6.517 5.281 6.146 7.018 6.272 6.012 6.780 7.156
Enterprise 2.318 2.463 2.369 1.724 3.616 7.913 5.988 6.633 7.211 7.897 7.771 7.783 7.129 7.098 7.763 8.041
Total HDD 49.832 53.809 57.827 28.472 44.227 71.038 62.480 59.241 60.175 59.896 62.610 63.082 60.423 63.097 64.744 61.045
Average GB Shipped 578 608 634 578 581 668 708 804 805 797 811 874 888 875 1,002 1,087
EB Shipped 28.8 32.7 36.7 16.5 25.7 47.4 44.3 47.6 48.4 47.7 50.8 55.1 53.6 55.2 64.9 66.4
R4Q EB Shipped 107.7 117.8 128.5 114.6 111.5 126.3 133.9 165.1 187.8 188.0 194.5 202.0 207.2 214.7 228.8 240.1
Volume and HDD Share2
Volume
50% HDD Share 45% 80 40% 70 35% 60 30% 50 25% 40 20% 30 15% 20 10% 10 5% 0 0%
Q3’11 Q4’11 Q1’12 Q2’12 Q3’12 Q4’12 Q1’13 Q2’13 Q3’13 Q4’13 Q1’14 Q2’14 Q3’14 Q4’14 Q1’15 Q2’15
Revenue and Non-GAAP Gross Margin10
$5,000 Revenue $mils 40%
$4,500 Gross Margin 35%
$4,000 30%
$3,500 25%
$3,000 20%
$2,500 15%
$2,000 10%
$1,500 5%
$1,000 0%
$500
$0
Q3’11 Q4’11 Q1’12 Q2’12 Q3’12 Q4’12 Q1’13 Q2’13 Q3’13 Q4’13 Q1’14 Q2’14 Q3’14 Q4’14 Q1’15 Q2’15
Non-GAAP EPS Analysis
$4.00 Actual Non-GAAP EPS
40% EPS Guidance High
35% $3.00 EPS Guidance Low
30% 25% $2.00
20% 15% $1.00
10% 5% $0.00
0% ($1.00) ($2.00)
Q3’11 Q4’11 Q1’12 Q2’12 Q3’12 Q4’12 Q1’13 Q2’13 Q3’13 Q4’13 Q1’14 Q2’14 Q3’14 Q4’14 Q1’15 Q2’15
Note: Refer to “Non-GAAP Financial Measures” for information about non-GAAP financial measures included in this quarterly fact sheet.
Page 1 WDC Quarterly Fact Sheet – Q2 FY15 (preliminary) Western Digital
Balance sheet, cash flows, earnings, dividends and share repurchase amounts in millions Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15
Cash and Cash Equivalents $3,230 $3,490 $3,675 $3,924 $3,377 $3,208 $3,537 $3,816 $4,060 $4,309 $4,869 $4,655 $4,569 $4,804 $5,159 $4,902
Available-for-Sale (AFS) Securities - - - - - - - - - - - - 470 499 454 465
Debt (325) (294) (263) (231) (2,743) (2,185) (2,128) (2,128) (2,013) (1,955) (2,398) (2,340) (2,469) (2,438) (2,406) (2,375)
Net Cash, Cash Equivalents & AFS Securities $2,905 $3,196 $3,412 $3,693 $634 $1,023 $1,409 $1,688 $2,047 $2,354 $2,471 $2,315 $2,570 $2,865 $3,207 $2,992
Cash Flow From Operations $313 $447 $352 $378 $1,208 $1,128 $936 $772 $727 $684 $680 $727 $697 $713 $827 $243
Free Cash Flow $138 $294 $218 $258 $1,069 $804 $554 $526 $539 $548 $544 $557 $536 $552 $667 $97
Capital Expenditures $175 $153 $134 $120 $139 $324 $382 $246 $188 $136 $136 $170 $161 $161 $160 $146
Depreciation and Amortization $151 $150 $158 $140 $188 $339 $313 $309 $309 $302 $312 $317 $307 $308 $289 $290
EBITDA $309 $322 $417 $302 $730 $1,147 $905 $787 $726 $81 $854 $795 $726 $660 $758 $778
Accounts Receivable, Net $1,171 $1,206 $1,356 $747 $2,377 $2,364 $1,951 $1,732 $1,700 $1,793 $1,791 $1,959 $1,802 $1,989 $1,915 $1,880
Inventory Raw Materials $151 $172 $170 $191 $329 $245 $237 $193 $191 $167 $208 $201 $204 $168 $178 $154
Work in Process 260 263 275 185 667 552 559 581 583 575 579 581 519 493 509 510
Finished Goods 163 142 200 90 286 413 508 430 423 446 457 511 554 565 585 618
Total Inventory $574 $577 $645 $466 $1,282 $1,210 $1,304 $1,204 $1,197 $1,188 $1,244 $1,293 $1,277 $1,226 $1,272 $1,282
Property, Plant and Equipment, Net $2,249 $2,224 $2,209 $2,091 $4,171 $4,067 $4,027 $3,938 $3,803 $3,700 $3,638 $3,509 $3,406 $3,293 $3,202 $3,099
Accounts Payable $1,486 $1,545 $1,708 $883 $2,774 $2,773 $2,545 $2,185 $2,037 $1,990 $2,061 $2,106 $1,902 $1,971 $2,016 $2,071
Days Sales Outstanding11 47 46 46 34 71 45 44 41 41 44 43 45 44 50 48 44
Days Inventory Outstanding11 28 27 27 31 57 34 42 40 40 40 42 42 44 42 45 42
Days Payables Outstanding11 73 73 72 60 123 77 82 72 69 67 69 68 65 68 71 68
Cash Conversion Cycle11 2 - 1 5 5 2 4 9 12 17 16 19 23 24 22 18
Inventory Turns11 13 13 13 12 6 11 9 9 9 9 9 9 8 9 8 9
Dividends Paid $- $- $- $- $- $- $- $121 $- $60 $59 $59 $71 $70 $94 $94
Shares Repurchased - - - - - 16.4 5.2 4.2 5.2 4.4 2.3 2.0 2.8 3.2 2.2 3.2
Shares Repurchased $- $- $- $- $- $604 $218 $146 $243 $235 $150 $150 $244 $272 $223 $309
Remaining Amount Authorized $416 $416 $416 $416 $416 $1,312 $2,594 $2,448 $2,205 $1,970 $1,820 $1,670 $1,426 $1,154 $931 $622
R4Q Economic Profit8 $213 $92 $113 $15 $(83) $542 $801 $976 $884 $(59) $(176) $(109) $(158) $415 $332 $347
R4Q ROIC8 15.6% 13.2% 13.6% 11.9% 14.8% 20.4% 21.3% 21.0% 20.0% 10.1% 9.7% 10.5% 10.2% 15.1% 14.2% 14.3%
R4Q ROA8 10.9% 9.2% 9.5% 8.5% 10.5% 14.3% 14.9% 14.7% 14.2% 7.0% 6.7% 7.2% 7.0% 10.6% 10.0% 10.2%
Worldwide Headcount3 61,349 65,431 67,799 67,121 106,604 103,111 96,002 93,820 87,565 85,777 87,586 87,976 84,556 84,072 83,277 83,993
Business Model (Non-GAAP) Gross Margin* 27%-32% Operating Expense* 10%-12% Operating Income* 15%-22% Tax 7%-10% of Income Before Tax Capital Expenditures* 5%-7% Conversion Cycle 4-8 Days *Percent of Revenue Gross vs. Net Cash, Cash Equivalents & AFS Securities Cash, Cash Equivalents & AFS Securities Net Cash, Cash Equivalents & AFS Securities$
$6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Q3 ‘11 Q4 ‘11 Q1 ‘12 Q2 ‘12 Q3 ‘12 Q4 ‘12 Q1 ‘13 Q2 ‘13 Q3 ‘13 Q4 ‘13 Q1 ‘14 Q2 ‘14 Q3 ‘14 Q4 ‘14 Q1 ‘15 Q2 ‘15
R&D10 and Capital Expenditures R&D Capital Expenditures R&D % of Revenue $mils $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Q3 ‘11 Q4 ‘11 Q1 ‘12 Q2 ‘12 Q3 ‘12 Q4 ‘12 Q1 ‘13 Q2 ‘13 Q3 ‘13 Q4 ‘13 Q1 ‘14 Q2 ‘14 Q3 ‘14 Q4 ‘14 Q1 ‘15 Q2 ‘15 0% 2% 4% 6% 8% 10% 12% 14%
Free Cash Flow Dividends Paid Stock Repurchases Free Cash Flow $mils $0 $200 $400 $600 $800 $1,000 $1,200 Q3 ‘11 Q4 ‘11 Q1 ‘12 Q2 ‘12 Q3 ‘12 Q4 ‘12 Q1 ‘13 Q2 ‘13 Q3 ‘13 Q4 ‘13 Q1 ‘14 Q2 ‘14 Q3 ‘14 Q4 ‘14 Q1 ‘15 Q2 ‘15
R4Q ROIC & R4Q Economic Profit8 R4Q Economic Profit R4Q ROIC $mils ($400) ($200) $0 $200
$400 $600 $800 $1,000 $1,200 Q3 ‘11 Q4 ‘11 Q1 ‘12 Q2 ‘12 Q3 ‘12 Q4 ‘12 Q1 ‘13 Q2 ‘13 Q3 ‘13 Q4 ‘13 Q1 ‘14 Q2 ‘14 Q3 ‘14 Q4 ‘14 Q1 ‘15 Q2 ‘15 0% 5% 10% 15% 20% 25%
Note: Refer to “Non-GAAP Financial Measures” for information about non-GAAP financial measures included in this quarterly fact sheet.
Page 2 WDC Quarterly Fact Sheet - Q2 FY15 (preliminary) Western Digital
Non-GAAP Financial Measures
Free Cash Flow: Free cash flow is a non-GAAP financial measure defined as cash flows from operations less capital expenditures. We consider free cash flow to be useful as an indicator of our overall liquidity, as the amount of free cash flow generated in any period is representative of cash that is available for strategic opportunities including, among others, investing in the Company’s business, making strategic acquisitions, strengthening the balance sheet, repaying debt, paying dividends and repurchasing stock. We also believe that free cash flow is one of several benchmarks used by investors for comparison of our liquidity with other companies in our industry, although our measure of free cash flow may not be directly comparable to similar measures reported by other companies. Free cash flow should not be construed as an alternative to cash flows from operations or other cash flow measurements determined in accordance with GAAP.
EBITDA: EBITDA is a non-GAAP financial measure defined as net income before interest, income tax expense, depreciation and amortization. We include information concerning EBITDA because we believe it is a useful measure to evaluate our operating performance. As a measure of our operating performance, we believe EBITDA provides a measure of operating results unaffected by differences in capital structures, capital investment cycles and ages of related assets among otherwise comparable companies. While EBITDA is a relevant and widely used measure of operating performance, it does not represent net income as defined by GAAP and it should not be considered as an alternative to that measure in evaluating operating performance.
Non-GAAP Gross Margin and Non-GAAP Gross Profit: Non-GAAP gross margin is a non-GAAP measure defined as non-GAAP gross profit divided by revenue. Non-GAAP gross profit is a non-GAAP measure defined as gross profit before any charges to cost of goods sold that are unusual, non-recurring, or may not be indicative of ongoing operations. Because we believe some charges may not be indicative of ongoing operations, we believe that non-GAAP gross profit is a useful measure to investors as an alternative method for measuring our operating performance and comparing it against prior periods’ performance.
Non-GAAP Net Income and Non-GAAP EPS: Non-GAAP net income and non-GAAP EPS are non-GAAP measures defined as net income and EPS, respectively, before any charges that are unusual, non-recurring, or may not be indicative of ongoing operations, or any tax impact related to those charges. Because we believe some charges may not be indicative of ongoing operations, we believe that non-GAAP net income and non-GAAP EPS are useful measures to investors as an alternative method for measuring our earnings performance and comparing it against prior periods’ performance.
In millions, except gross margin and per share amounts Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15
Reconciliation of Cash Flows from Operations to Free Cash Flow
Cash Flows from Operations $313 $447 $352 $378 $1,208 $1,128 $936 $772 $727 $684 $680 $727 $697 $713 $827 $243
Capital Expenditures (175) (153) (134) (120) (139) (324) (382) (246) (188) (136) (136) (170) (161) (161) (160) (146)
Free Cash Flow $138 $294 $218 $258 $1,069 $804 $554 $526 $539 $548 $544 $557 $536 $552 $667 $97
Reconciliation of Net Income to EBITDA
Net Income (Loss) $146 $158 $239 $145 $483 $745 $519 $335 $391 $(265) $495 $430 $375 $317 $423 $460
Interest (1) 2 1 2 4 7 14 10 11 9 10 11 13 5 9 8
Income Tax Expense 13 12 19 15 55 56 59 133 15 35 37 37 31 30 37 20
Depreciation and Amortization 151 150 158 140 188 339 313 309 309 302 312 317 307 308 289 290
EBITDA $309 $322 $417 $302 $730 $1,147 $905 $787 $726 $81 $854 $795 $726 $660 $758 $778
Reconciliation of Gross Margin to Non-GAAP Gross Margin & Gross Profit to Non-GAAP Gross Profit
Gross Profit10 $410 $469 $541 $648 $977 $1,472 $1,193 $1,059 $1,061 $1,050 $1,099 $1,156 $1,076 $1,029 $1,149 $1,132
Acquisition-Related Fair Value Adjustments - - - - 91 - - - - - - - - - - -
Other - - - - - - - - - - - - - 10 - 17
Amortization of Intangibles - - - - 9 39 38 38 38 35 36 40 39 39 39 38
Non-GAAP Gross Profit10 $410 $469 $541 $648 $1,077 $1,511 $1,231 $1,097 $1,099 $1,085 $1,135 $1,196 $1,115 $1,078 $1,188 $1,187
Revenue $2,252 $2,403 $2,694 $1,995 $3,035 $4,754 $4,035 $3,824 $3,764 $3,728 $3,804 $3,972 $3,703 $3,651 $3,943 $3,888
Gross Margin10 18.2% 19.5% 20.1% 32.5% 32.2% 31.0% 29.6% 27.7% 28.2% 28.2% 28.9% 29.1% 29.1% 28.2% 29.1% 29.1%
Non-GAAP Gross Margin10 18.2% 19.5% 20.1% 32.5% 35.5% 31.8% 30.5% 28.7% 29.2% 29.1% 29.8% 30.1% 30.1% 29.5% 30.1% 30.5%
Reconciliation of Net Income (Loss) to Non-GAAP Net Income
Net Income (Loss) $146 $158 $239 $145 $483 $745 $519 $335 $391 $(265) $495 $430 $375 $317 $423 $460
Acquisition-Related Expense 10 10 14 14 34 - - - - 7 13 - - - - -
Litigation - 25 7 - - - - - - 681 13 25 13 13 26 1
Charges and Insurance Recoveries Related to Flooding, Net - - - 199 15 - - - - - (65) - - - - (37)
Acquisition-Related Fair Value Adjustments - - - - 91 - - - - - - - - - - -
Amortization of Intangibles - - - - 12 51 49 49 49 46 47 51 50 47 46 45
Restructuring and other - - - - - 80 26 41 74 8 11 26 28 68 9 70
Write-off of debt issuance costs - - - - - - - - - - - - 4 - - -
Tax Impact - - - - (16) (4) - 88 - - - - - - - -
Non-GAAP Net Income $156 $193 $260 $358 $619 $872 $594 $513 $514 $477 $514 $532 $470 $445 $504 $539
EPS $0.62 $0.67 $1.01 $0.61 $1.96 $2.87 $2.06 $1.36 $1.60 $(1.12) $2.05 $1.77 $1.55 $1.32 $1.76 $1.93
Non-GAAP EPS $0.66 $0.81 $1.10 $1.51 $2.52 $3.35 $2.36 $2.09 $2.10 $1.96 $2.12 $2.19 $1.94 $1.85 $2.10 $2.26
Diluted Shares Outstanding 236 237 237 237 246 260 252 246 245 236 242 243 242 241 240 238
Non-GAAP Diluted Shares Outstanding6 236 237 237 237 246 260 252 246 245 243 242 243 242 241 240 238
Page 3 WDC Quarterly Fact Sheet - Q2 FY15 (preliminary) Western Digital
Non-GAAP Financial Measures
Economic Profit: Economic profit (EP) is a non-GAAP financial measure defined as net operating profit after taxes less the value of invested capital multiplied by the weighted average cost of capital, where net operating profit after taxes is defined as income from operations minus tax expense and invested capital is defined as the sum of current debt, long-term debt and equity. Management uses EP to evaluate business performance and allocate resources, and it is a component in determining management’s incentive compensation. Management believes EP provides additional perspective to investors about financial returns generated by the business and represents profit generated over and above the cost of capital used by the business to generate that profit.
In millions Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15
Reconciliation of Operating Income (Loss) to R4Q Economic Profit
Operating Income (Loss) $319 $473 $441 $293 $211 $240 $158 $172 $259 $162 $542 $808 $592 $478 $417 $(221) $542 $478 $419 $352 $469 $488
Income Tax Provision (29) (42) (40) (27) (14) (14) (13) (12) (19) (15) (55) (56) (59) (133) (15) (35) (37) (37) (31) (30) (37) (20)
Net Operating Profit After Taxes 290 431 401 266 197 226 145 160 240 147 487 752 533 345 402 (256) 505 441 388 322 432 468
R4Q Net Operating Profit After Taxes 972 1,320 1,388 1,295 1,090 834 728 771 692 1,034 1,626 1,919 2,117 2,032 1,024 996 1,092 1,078 1,656 1,583 1,610
Invested Capital x WACC (488) (534) (562) (581) (606) (621) (636) (658) (677) (1,117) (1,084) (1,118) (1,141) (1,148) (1,083) (1,172) (1,201) (1,236) (1,241) (1,251) (1,263)
R4Q Economic Profit $484 $786 $826 $714 $484 $213 $92 $113 $15 $(83) $542 $801 $976 $884 $(59) $(176) $(109) $(158) $415 $332 $347
Formulas
Share = Units (HDD) / TAM
ASP = Revenue / Units (HDD)
Free Cash Flow = Cash Flow from Operations - Capital Expenditures
EBITDA = Net Income (Loss) + Interest + Income Tax Expense + Depreciation and Amortization
Days Sales Outstanding (DSO) = Accounts Receivable / (Revenue / 91 days)
Days Inventory Outstanding (DIO) = Inventory / (Cost of Revenue / 91 days)
Days Payables Outstanding (DPO) = Accounts Payable / (Cost of Revenue / 91 days)
Cash Conversion Cycle = DSO + DIO - DPO
Inventory Turns = 364 days / DIO
R4Q Economic Profit = R4Q Net Operating Profit After Taxes - (Invested Capital x WACC)
Invested Capital = Short-term debt + Current portion of long-term debt + Long-term debt + Total shareholders’ equity
WACC7 = 11%
R4Q ROIC = R4Q (Net Income (Loss) + Interest Expense) / R4Q Average (Short-term debt + Current portion of long-term debt + Long-term debt + Total shareholders’ equity)
R4Q ROA = R4Q Net Income (Loss) / R4Q Average Total Assets
Footnotes
1. ASP, Revenue by Channel and Revenue by Geography exclude external sales of media/substrates.
2. Unit volume excludes WD TV Media Players without hard drives, WD Livewire, SSD and media.
3. Worldwide Headcount excludes temporary and contracted employees.
4. Consumer Electronics includes gaming.
5. PC includes shipments to distributors, second/third tier external HDD manufacturers, and white box manufacturers.
6. Q4 FY13 non-GAAP EPS is calculated using the same number of shares used for Q4 FY13 GAAP EPS plus 7 million dilutive shares. Dilutive shares are not included in the Q4 FY13 GAAP EPS calculation as Q4 FY13 resulted in a net loss.
7. WACC of 11% is an internal assumption.
8. Q2 FY12 includes charges related to the flooding. Q4 FY13 includes charges related to the arbitration award.
9. TAM is preliminary and based on internal information.
10. Certain FY14 prior quarter amounts have been reclassified from gross profit, R&D and SG&A to the other charges line within operating expenses to conform to the annual presentation of FY14 in Part II, Item 8, Note 18 in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K.
11. Q1 FY15 cash conversion cycle calculated using 98 days due to a 14 week quarter. Q1 FY15 inventory turns calculated using 371 days due to a 53 week year.
Page 4 WDC Quarterly Fact Sheet - Q2 FY15 (preliminary) Western Digital
