#1Fiscal First Quarter 2024 Financial Results Western Digital October 30, 2023 Western Digital.#22 © 2023 Western Digital Corporation or its affiliates All rights 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 second quarter of 2024 and beyond; end-market performance; product developments, momentum and qualifications; the impact of the company's cost structure on earnings power; overall market conditions; 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. The preliminary financial results for the company's fiscal first quarter ended September 29, 2023 included in this presentation represent the most current information available to management. Actual results when disclosed in the company's Form 10-Q 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 by the company's independent registered accounting firm; and other developments that may arise between now and the filing of the company's Form 10-Q. Other key risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include volatility in global economic conditions; future responses to and effects of global health crises; the impact of business and market conditions; the outcome and impact of the company's 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; the impact of competitive products and pricing; the company's 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 the company's strategic relationships; difficulties or delays in manufacturing or other supply chain disruptions; hiring and retention of key employees; the company's level of debt and other financial obligations; changes to the company's relationships with key customers; compromise, damage or interruption from cybersecurity incidents or other data system security risks; actions by competitors; the company's ability to achieve its GHG emissions reduction and other ESG goals; 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”), including the company's Annual Report on Form 10-K filed with the SEC on August 22, 2023, 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 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.#33 © 2023 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Fiscal First Quarter Executive Summary 1. Financial Results¹ . Revenue of $ 2.75B · Non-GAAP EPS of $ (1.76) • Non-GAAP gross margin of 4.1% Corporate . Flash Hard Drive • • Operating cash flow of $ (626)M • Free cash flow of $ (544)M • Cash and cash equivalents of $ 2.0B Efforts to bolster business agility, drive innovation, and right-size the business enabled us to capitalize on enhanced earnings power in an improving environment. Differentiated and innovative products across a broad range of end-markets resulted in sequential margin improvement across both flash and HDD businesses. • Record bit shipments - increased 26% sequentially and 49% year-over-year. • WD_BLACK bit shipments more than doubled and content per unit increased over 50% year-over-year. • Ramping an array of client SSDs, based on BiCS6, to lead the industry transition to QLC in calendar year 2024. . 26-terabyte UltraSMR drive accounted for nearly half of nearline exabyte shipments. • On track with the 28-terabyte UltraSMR drive qualification with a clear roadmap into the 40-terabyte range. See Appendix for GAAP to non-GAAP Reconciliations.#4Revenue Trends by End Market In billions $ 2.0 $ 1.6 Cloud In billions $ 2.0 $ 1.6 $ 1.2 $ 0.8 $ 0.4 $ 0.4 $ - $ - Q1F23 Q2F23 Q3F23 Q4F23 Q1F24 Revenue $ 0.9 billion Decreased 12% QoQ Decreased 52% YoY Client $ 1.2 $ 0.8 IIIII Q1F23 Q2F23 Q3F23 Q4F23 Q1F24 Revenue $ 1.1 billion Increased 11% QoQ Decreased 7% YoY © 2023 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Consumer In billions $ 2.0 $ 1.6 $ 1.2 $ 0.8 $ 0.4 $ - Q1F23 Q2F23 Q3F23 Q4F23 Q1F24 Revenue $ 0.7 billion Increased 14% QoQ Increased 8% YoY#55 Flash and Hard Drive Metrics Flash Revenue and Gross Margin In billions $ 2.0 $ 1.6 $ 1.2 $ 0.8 $ 0.4 In billions 30% $ 2.0 20% $ 1.6 10% $ 1.2 0% $ 0.8 -10% $ 0.4 © 2023 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Hard Drive Revenue and Gross Margin 40% 30% 20% 10% $ - -20% $ - 0% Q1F23 Q2F23 Q3F23 Q4F23 Q1F24 Q1F23 Q2F23 Q3F23 Q4F23 Q1F24 Revenue Gross Margin (%) Revenue Gross Margin (%) Flash Q1F24 Results Bit shipments: increased 26% QoQ ASP/Gigabyte: Blended: decreased 10% QoQ Like-for-like: decreased 4% QoQ See Appendix for Supplemental Operating Segment Results. Hard Drive Q1F24 Exabyte shipments: decreased 5% QoQ Results ASP per drive: $ 112#6Non-GAAP Financial Results ($ in millions, except for EPS) © 2023 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Q1 2023 Q4 2023 Q1 2024 QoQ YOY Revenue Gross Margin % $ 3,736 $ 2,672 $ 2,750 up 3% down 26% 26.7% 3.9% 4.1% up 0.2 ppt down 22.6 ppt Operating Expenses $ 689 $ 582 $ 555 down 5% down 19% Operating Income (Loss) $ 307 $ (478) $ (443) * Interest and Other Expense, net $ 75 $ 86 $ 86 down 0% up 15% EPS - Diluted $ 0.20 $ (1.98) $ (1.76) * * Operating Cash Flow $ 6 $ (68) $ (626) * * Free Cash Flow $ (215) $ (219) $ (544) * * See Appendix for GAAP to Non-GAAP Reconciliations. * Not a meaningful figure#77 Cash Flow Walk In millions $ 2,023 $ 82 $ (626) © 2023 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED $ 600 $ 2,032 $ (47) (1) (2) Q4F23 Cash & Cash Equivalents Operating Cash Flow Cash CapEx Delayed Drawn Term Loan Other Q1F24 Cash & Cash Equivalents Total liquidity was $ 4.3 billion, including cash and cash equivalents of $ 2.0 billion, undrawn revolver capacity of $2.25 billion. 1. Cash Capital Expenditures includes purchases of property, plant and equipment, net, and notes receivable issuances to Flash Ventures, net. 2. Other primarily consists of employee stock plans, net and others.#88 © 2023 Western Digital Corporation or its affiliates All rights reserved Fiscal Second Quarter Guidance (1) Revenue ($ B) Gross Margin % Operating Expenses ($M) Interest and Other Expense, net ($ M) Income Tax Expense ($M) (3) Preferred Dividend ($M) EPS - Diluted Share Count - Diluted (in millions) GAAP $ 2.85 $ 3.05 - 9.5% 11.5% - $ 650 - $ 670 ~$ 105 Non-GAAP (2) $ 2.85 $ 3.05 - 10.0% 12.0% - $ 560 - $ 580 ~$ 105 $20 - $ 30 N/A $ 15 $ 15 N/A $ (1.35) $ (1.05) ~325 ~325 12 1. Guidance as shown is as of October 30, 2023. 2. 3. Non-GAAP gross margin guidance excludes stock-based compensation expense of approximately $ 10 million to $ 15 million. The company's Non-GAAP operating expenses guidance excludes stock-based compensation expense, and expenses related to strategic review, totaling approximately $ 85 million to $ 95 million. In the aggregate, Non-GAAP diluted earnings per share guidance excludes these items totaling approximately $ 95 million to $ 110 million. The timing and amount of additional charges the company excludes from its Non-GAAP income tax expense and Non-GAAP diluted earnings per share are dependent on the timing and determination of certain actions and cannot be reasonably predicted. The timing and amount of these charges excluded from Non-GAAP gross margin, Non-GAAP operating expenses, and Non-GAAP diluted earnings per share cannot be further allocated or quantified with certainty. Accordingly, full reconciliations of Non-GAAP gross margin, Non-GAAP operating expenses, Non-GAAP income tax expense and Non-GAAP diluted earnings per share to the most directly comparable GAAP financial measures (GAAP gross profit, GAAP operating expenses, income tax expense and diluted earnings per share, respectively) are not available without unreasonable effort. The Non-GAAP income tax expense is determined based on a percentage of Non-GAAP pre-tax income or loss. Our estimated Non-GAAP tax dollars may differ from our GAAP tax dollars (i) due to differences in the tax treatment of items excluded from our Non-GAAP net income or loss; (ii) the fact that our GAAP income tax expense or benefit recorded in any interim period is based on an estimated forecasted GAAP tax rate for the full year, excluding loss jurisdictions; and (iii) because our GAAP taxes recorded in any interim period are dependent on the timing and determination of certain GAAP operating expenses.#99 © 2023 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Joint Venture Operational Framework For more information on Flash Ventures, please visit investor.wdc.com for a recently published Flash Ventures presentation. Western Digital. Co-develops flash (including process technology and memory design) with Kioxia and contributes IP for Flash Ventures' use Performs integral manufacturing and R&D functions at Flash Ventures' manufacturing sites Purchases Flash Ventures' wafers at cost plus a small markup Pays Flash Ventures' expenses (including equipment depreciation and lease expense) Funds Flash Ventures' equipment purchases (via loans, equity and lease guarantees) in excess of Flash Ventures' operating cash flow Flash Ventures 49.9% Owned by Western Digital 50.1% Owned by Kioxia Owns and leases equipment for flash wafer production and R&D line Purchases wafers from Kioxia at cost under foundry agreements Sells wafers to Western Digital and Kioxia at cost plus a small markup Charges expenses to Western Digital and Kioxia (including equipment depreciation and lease expense) Borrows from Western Digital and Kioxia for a portion of their equipment purchases Repays loans for equipment purchases using excess operating cash flow KIOXIA Co-develops flash (including process technology and memory design) with Western Digital and contributes IP for Flash Ventures' use Performs integral manufacturing and R&D functions at Flash Ventures' manufacturing sites Purchases Flash Ventures' wafers at cost plus a small markup Pays Flash Ventures' expenses (including equipment depreciation and lease expense) Funds Flash Ventures' equipment purchases (via loans, equity, and lease guarantees) in excess of Flash Ventures' operating cash flow Owns and operates cleanrooms Provides wafer manufacturing services to Flash Ventures at cost#1010 Capital Expenditure Framework Cash Capital Expenditures (1) Flash Ventures Capital Expenditures Gross Capital Expenditures 1 HDD CapEx 2 Flash Non-Fab CapEx 3 Flash Ventures Parent Loans (2) © 2023 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED 3 Flash Ventures Parent Loans (2) + 4 Flash Ventures Lease Financing(2) 2 3 HDD CapEx + Flash Non-Fab CapEx Flash Ventures Parent Loans (2) 1. Cash Capital Expenditures includes purchases of property, plant and equipment, net, and notes receivable issuances to Flash Ventures, net. 2. 3. Flash Ventures Parent Loans, Flash Ventures Lease Financing, and Flash Ventures Net Operating Cash Flow are comprised only of Western Digital's portions. Flash Ventures Net Operating Cash Flow is primarily generated from equipment depreciation payments. 4 Flash Ventures Lease Financing (2) 5 5 Flash Ventures Net Operating Cash Flow (2)(3) Flash Ventures Net Operating Cash Flow (2)(3)#1111 Gross Capital Expenditure Trends In billions $ 3.5 © 2023 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED $ 3.0 $ 2.5 $ 1.6 $ 2.0 $ 1.0 $ 1.5 $ 1.5 $ 1.9 $ 1.4 $ 1.0 $ 2.0 $ 1.6 $ 1.4 $ 0.5 $ 1.2 $ 0.8 $ 0.8 $ (0.3) $ (0.5) FY18 FY19 FY20 FY21 FY22 (1) FY23 (2) Cash CapEx OWD portion of: Flash Ventures Cash Flow + Flash Ventures Lease Financing 1. Cash Capital Expenditures includes purchases of property, plant and equipment, net, and notes receivable issuances to Flash Ventures, net. 2. Flash Ventures Net Operating Cash Flow and Flash Ventures Lease Financing are comprised only of Western Digital's portions.#1212 Capital Allocation Framework © 2023 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Highest Priority Reinvestment in the Company Strategically reinvest to drive innovation Reduce Leverage Shareholder Return Dividend Program Target 1.0x 3.25x Debt-to-EBITDA - Share Repurchases Committed to returning excess cash to shareholders#1313 Appendix © 2023 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED#1414 © 2023 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Quarterly Fact Sheet In millions, except Average Selling Price (ASP), percentages, and working capital related metrics Revenue by End Market(1) Cloud Client Consumer Total Revenue Segment Results Flash Revenue HDD Revenue Total Revenue Flash Gross Margin HDD Gross Margin Q1F23 $ 1,829 1,229 678 $ 3,736 Q2F23 $ 1,224 1,089 794 $ 3,107 $ 1,205 Q3F23 Q4F23 Q1F24 $ 994 975 1,035 $ 872 1,147 623 643 $ 2,803 $ 2,672 731 $2,750 $ 1,722 $ 1,657 $ 1,307 $ 1,377 2,014 1,450 1,496 $ 3,736 $ 3,107 $ 2,803 $ 2,672 24.5% 14.5% (5.0%) (11.9%) 28.5% 20.7% 24.3% 20.7% 1,295 $1,556 1,194 $2,750 (10.3%) 22.9% Total Gross Margin for Segments (2) Exabyte Metrics 26.7% 17.4% 10.6% 3.9% 4.1% QoQ Change in Flash Exabytes Sold (3) (10%) 20% (14%) 15% 26% QoQ Change in HDD Exabytes Sold (3) 1% (35%) 15% (18%) (5%) QoQ Change in Total Exabytes Sold (3) Flash Metrics ―% (28%) 9% (13%) 2% QoQ Change in ASP/Gigabytes (3) (22%) (20%) (10%) (6%) (10%) HDD ASP(5) HDD Metrics Cloud Units Client Units Consumer Units Total HDD Units (4) Cash and Cash Equivalents Cash Flows Cash Flows provided by (used in) Operating Activities Purchases of Property, Plant and Equipment, net Activity Related to Flash Ventures, net Free Cash Flow (6) Working Capital Related Days Sales Outstanding Days Inventory Outstanding Days Payables Outstanding Cash Conversion Cycle 8.6 5.5 6.3 5.8 5.3 3.4 4.0 3.6 3.3 2.6 2.7 3.4 2.7 2.7 2.5 14.7 12.9 12.6 11.8 10.4 $125 $ 99 $ 2,049 $ 1,871 $ 6 $ 35 (320) 99 $ (215) (258) $ 109 $ 2,220 $ (381) (110) $ 99 $ 2,023 $ (68) (119) (17) (36) (32) $112 $ 2,032 $ (626) 69 13 59 $ (240) $ (527) $ (219) $ (544) 56 52 54 128 133 144 130 (65) (55) (57) (56) 122 134 139 128 48 120 (54) 114#1515 Quarterly Fact Sheet (continued) FOOTNOTES © 2023 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED FORMULAS Days Sales Outstanding (DSO) = Accounts Receivable / (Revenue / # of days in quarter) Days Inventory Outstanding (DIO) = Inventories / (Cost of Revenue / # of days in quarter) Days Payables Outstanding (DPO) = Accounts Payable (including Accounts Payable to Related Parties) / (Cost of Revenue / # of days in quarter) Cash Conversion Cycle = DSO + DIO - DPO FOOTNOTES 1. Cloud is primarily comprised of products sold for public or private cloud environments and enterprise customers. Client is primarily comprised of products sold directly to OEMs or via distribution. Consumer is primarily comprised of retail and other end-user products. 2. Total gross margin for segments is a Non-GAAP financial measure, which is also referred to herein as Non-GAAP gross margin. See Appendix for GAAP to Non-GAAP Reconciliations and Supplemental Operating Segment Results for further details. Excludes licensing, royalties, and non-memory products. 3. 4. HDD Unit volume excludes data storage systems and components. 5. 6. HDD ASP is calculated by dividing HDD revenue by HDD units. Data storage systems are excluded from this calculation, as data storage systems ASP is measured on a per system basis rather than a per drive basis. Free cash flow is defined as cash flows provided by operating activities less purchases of property, plant and equipment, net, and the activity related to Flash Ventures, net. The company considers free cash flow generated in any period to be a useful indicator of cash that is available for strategic opportunities including, among others, investing in the company's business, making strategic acquisitions, repaying debt and strengthening the balance sheet.#1616 Debt Capital Structure Current Cap Table © 2023 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Debt Maturity Profile (in billions) As of $ 4.0 Rate All-in Rate1 Maturity September 29, 2023 (in millions) Convertible Debt Due 20242 1.50% 1.50% 2/1/2024 $ 1,100 $ 2.5 $2.2 Delayed Draw Term Loan S+2.00%5 7.42% 6/28/20246 600 $ 2.0 $1.8 Sr. Unsecured Notes Due 20263 $2.25B Revolver4 4.75% S+1.375%5 6.81% 4.75% 2/15/2026 2,300 1/7/20276 $ 0.5 $ 0.5 Term Loan A-2 S+1.375%5 6.81% 1/7/20276 2,700 $ 0.0 ד Sr. Notes Due 20297 2.85% 2.85% 2/1/2029 500 2023 Sr. Notes Due 20327 3.10% 3.10% 2/1/2032 Total Debt 4.984%8 500 $ 7,700 Term Loan A-2 $ 0.2 T 2024 2025 2026 2027 2028 2029 2030 2031 2032 Sr. Unsecured Notes Convertible Notes Delayed Draw Term Loan Sr. Notes 123456 1. All-in applicable rates as of September 29, 2023. 2. 3. Initial conversion price of $ 121.91 per share. Notes became callable on February 5, 2021. Notes are callable beginning November 15, 2025. 4. 5. 6. 7. 8. Revolver capacity: $ 2.25 billion, none of which was drawn and outstanding as of September 29, 2023. S = Adjusted Term SOFR. Delayed Draw Term Loan, Term Loan A-2, and Revolver have a SOFR floor of 0 bps and Applicable spread over SOFR plus 0.10% based on credit ratings as of September 29, 2023. Delayed Draw Term Loan, Term Loan A-2, and Revolver will become due on November 2, 2023 if, as of that date, the company does not have Cash and cash equivalents plus available unused capacity under its credit facilities that exceed by $ 1.4 billion the sum of the outstanding balance of the 1.50% convertible notes due 2024 plus the outstanding principal amount of any other debt due within 12 months. Sr. Notes Due 2029 are callable beginning December 1, 2028 and Sr. Notes Due 2032 are callable beginning November 1, 2031. Weighted average interest rate is based on principal balances outstanding as of September 29, 2023.#1717 © 2023 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Credit Agreement Defined Leverage Ratio In millions; unaudited; trailing 12 months Q2F23 Q4F23 Net Income (Loss) Income tax expense Interest and other expense, net Depreciation and amortization EBITDA(1) Stock-based compensation expense Contamination related charges Employee termination, asset impairment and other Strategic review Recoveries from a power outage incident Other Adjusted EBITDA(2)(3) Total Debt(4) Debt to Adjusted EBITDA Flash Ventures equipment depreciation expenses Other Credit Agreement Adjustments (5) Credit Agreement Defined Adjusted EBITDA (6) Total Debt(4) Q1F23 $ 917 $ (93) Q3F23 $ (690) Q1F24 $ (1,706) $ (2,418) 586 565 371 146 92 268 251 246 275 287 895 867 864 828 759 $ 2,666 $ 1,590 $ 791 $ (457) $ (1,280) $ 336 $ 335 $ 323 207 207 49 123 ― 4 159 15 $ 318 $309 - 193 42 226 59 (7) 3 $ 3,254 $ 7,100 2.2X (7) 2 $ 2,250 $ 7,100 3.2X $ 1,293 $ 7,100 5.5X 5 $ 101 $ 7,100 70.3X $ 721 7 $ (679) $ 7,700 -11.3X 2 $ 786 292 $ 730 504 $689 758 $ 860 $ 3,328 $ 7,100 $ 2,527 $ 870 2.1X $ 7,100 2.8X $ 7,100 4.5X $ 7,700 8.9X $ 1,580 $ 858 $ 4,114 Credit Agreement Defined Leverage Ratio (7)(8) 1. 2. 3. 345 $ 7,100 1.7X EBITDA is defined as net income before income tax expense, interest and other expense, net, and depreciation and amortization. Adjusted EBITDA is defined as EBITDA (as defined above), adjusted to exclude certain expenses, gains and losses that the company believes are not indicative of its core operating results or because these exclusions are consistent with the financial models and estimates published by many analysts who follow the company and its peers. See the GAAP to Non-GAAP reconciliation slides within the Appendix for further details. Adjusted EBITDA is not intended to reflect measures used under the company's debt agreements. 4. Total Debt is the total principal balance of debt outstanding as of the end of the applicable trailing 12-month period. 5. Other Credit Agreement Adjustments includes deductions and addbacks for other income, expenses, and special charges, including underutilization charges and expected future cost savings from cost reduction initiatives in each case as provided under the company's credit agreement applicable to Term Loan A-2 and Revolver. 6. Credit Agreement Defined Adjusted EBITDA is used to measure financial covenant compliance under the company's credit agreement applicable to Term Loan A-2 and Revolver. 19 7. 8. Credit Agreement Defined Leverage Ratio is calculated as Total Debt divided by Credit Agreement Defined Adjusted EBITDA and is the Leverage Ratio as defined in the company's credit agreement for purpose of the financial covenant applicable to Term Loan A-2 and Revolver. Leverage ratio requirement is not applicable for the first quarter of fiscal 2024.#1818 © 2023 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED GAAP to Non-GAAP Reconciliations In millions; unaudited GAAP Gross Profit Stock-based compensation expense Amortization of acquired intangible assets Other Non-GAAP Gross Profit GAAP Operating Expenses Q1F23 Q4F23 $ 981 14 $ 92 1 - $ 996 11 (1) Q1F24 $ 99 13 2 $ 104 $ 112 $ 823 $ 742 Stock-based compensation expense Amortization of acquired intangible assets (72) (61) $ 695 (64) (38) (17) Other Employee termination, asset impairment and other Strategic review Non-GAAP Operating Expenses GAAP Operating Income (Loss) Gross profit adjustments Operating expense adjustments Non-GAAP Operating Income (Loss) (24) (53) (27) དྲུག (57) (2) (17) (2) $ 689 $ 158 15 $ 582 $ (650) $555 $ (596) 12 134 160 13 140 $ 307 $ (478) $ (443) GAAP Interest and Other Expense, Net Other $ (74) $ (80) $ (86) (1) (6) Non-GAAP Interest and Other Expense, Net $ (75) $ (86) $ (86)#1919 © 2023 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED GAAP to Non-GAAP Reconciliations (cont'd) In millions, except per share amounts; unaudited GAAP Net Income (Loss) Stock-based compensation expense Amortization of acquired intangible assets Employee termination, asset impairment and other Strategic review Other Income tax adjustments Q1F23 2632 Q4F23 $ 27 $ (715) 86 72 39 16 24 53 27 (1) (2) (111) (72) Non-GAAP Net Income (Loss) Less: cumulative dividends allocated to preferred shareholders Non-GAAP Net Income (Loss) attributable to common shareholders Diluted Income (Loss) Per Common Share GAAP Non-GAAP Diluted Weighted Average Shares Outstanding GAAP Non-GAAP Q1F24 $ (685) 77 57 17 2 64 $ 64 (621) $ (636) (22) (554) 15 15 $ (569) $ 0.08 $ (2.27) $ (2.17) $ 0.20 $ (1.98) $ (1.76) 319 319 321 321 323 323#2020 20 © 2023 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Supplemental Operating Segment Results Q3F23 Q4F23 In millions, except percentages; unaudited Q1F23 Q2F23 Q1F24 Net Revenue Flash HDD Total Net Revenue Gross Profit By Segment Flash HDD Total Gross Profit for Segments $ 1,722 2,014 $ 1,657 1,450 $ 3,736 $ 3,107 $ 1,307 $ 2,803 $ 1,377 1,496 1,295 $2,672 $1,556 1,194 $ 2,750 Unallocated corporate items: Stock-based compensation expense Amortization of acquired intangible assets Other Total unallocated corporate items Consolidated Gross Profit $ 422 $ 240 574 $ 996 $ 540 (14) (12) 300 $ (65) 363 $ 298 (12) $ (164) 268 $ 104 (11) $ (161) 273 $ 112 (13) (1) (2) (15) (12) (12) (12) (13) $ 981 $ 528 $ 286 $ 92 $99 Gross Margin Flash(1) HDD(2) Total gross margin for segments (3) Consolidated total(4) 24.5% 14.5% (5.0%) (11.9%) (10.3%) 28.5% 20.7% 24.3% 20.7% 22.9% 26.7% 17.4% 10.6% 3.9% 4.1% 26.3% 17.0% 10.2% 3.4% 3.6% Consolidated total gross margin is calculated by dividing consolidated gross profit by total revenue. Note: In the table above, Total gross profit for segments and Total gross margin for segments are Non-GAAP financial measures, which are also referred to herein as Non-GAAP gross profit and Non-GAAP gross margin, respectively. 1. Flash gross margin is calculated by dividing Flash gross profit by Flash revenue. 2. HDD gross margin is calculated by dividing HDD gross profit by HDD revenue. 3. Total gross margin for segments is calculated by dividing total gross profit for segments by total revenue. 4.#2121 21 © 2023 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED GAAP to Non-GAAP Reconciliations FOOTNOTES This presentation contains the following financial measures that are not in accordance with U.S. generally accepted accounting principles ("GAAP"): Non-GAAP gross profit; Non-GAAP gross margin; Non-GAAP operating expenses; Non-GAAP operating income and loss; Non-GAAP interest and other expense, net; Non-GAAP net income and loss; Non-GAAP diluted income and loss per common share; Adjusted EBITDA; Credit Agreement Defined Adjusted EBITDA; and free cash flow ("Non-GAAP measures"). These Non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with GAAP and may be different from Non-GAAP measures used by other companies. The company believes the presentation of these Non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors for measuring the company's earnings performance and comparing it against prior periods. Specifically, the company believes these Non-GAAP measures provide useful information to both management and investors as they exclude certain expenses, gains and losses that the company believes are not indicative of its core operating results or because they are consistent with the financial models and estimates published by many analysts who follow the company and its peers. As discussed further below, these Non-GAAP measures exclude, as applicable, stock-based compensation expense, amortization of acquired intangible assets, employee termination, asset impairment and other, expenses related to our strategic review, other adjustments, and income tax adjustments, and the company believes these measures along with the related reconciliations to the GAAP measures provide additional detail and comparability for assessing the company's results. EBITDA and adjusted EBITDA are not intended to reflect measures used under the company's debt agreements. Credit Agreement Defined Adjusted EBITDA also is used to measure financial covenant compliance as defined under the company's credit agreement applicable to Term Loan A-2 and Revolver and the company's credit agreement applicable to the Delayed Draw Term Loan. These Non-GAAP measures are some of the primary indicators management uses for assessing the company's performance and planning and forecasting future periods. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. As described above, the company excludes the following items from its Non-GAAP measures: Stock-based compensation expense. Because of the variety of equity awards used by companies, the varying methodologies for determining stock-based compensation expense, the subjective assumptions involved in those determinations, and the volatility in valuations that can be driven by market conditions outside the company's control, the company believes excluding stock-based compensation expense enhances the ability of management and investors to understand and assess the underlying performance of its business over time and compare it against the company's peers, a majority of whom also exclude stock-based compensation expense from their Non-GAAP results. Amortization of acquired intangible assets. The company incurs expenses from the amortization of acquired intangible assets over their economic lives. Such charges are significantly impacted by the timing and magnitude of the company's acquisitions and any related impairment charges. Employee termination, asset impairment and other. From time-to-time, in order to realign the company's operations with anticipated market demand or to achieve cost synergies from the integration of acquisitions, the company may terminate employees and/or restructure its operations. From time-to-time, the company may also incur charges from the impairment of intangible assets and other long-lived assets. In addition, the company may record credits related to gains upon sale of property due to restructuring or reversals of charges recorded in prior periods. These charges or credits are inconsistent in amount and frequency, and the company believes they are not indicative of the underlying performance of its business. Strategic review. The Company incurred expenses associated with its ongoing review of potential strategic alternatives aimed at further optimizing the long-term value for stockholders. The company believes these charges do not reflect the company's operating results and that they are not indicative of the underlying performance of its business. Other adjustments. From time-to-time, the company incurs charges or gains that the company believes are not a part of the ongoing operation of its business. The resulting expense or benefit is inconsistent in amount and frequency. Income tax adjustments. Income tax adjustments include the difference between income taxes based on a forecasted annual Non-GAAP tax rate and a forecasted annual GAAP tax rate as a result of the timing of certain Non-GAAP pre-tax adjustments. The income tax adjustments also include adjustments to estimates related to the current status of the rules and regulations governing the transition to the Tax Cuts and Jobs Act and the re-measurement of certain unrecognized tax benefits primarily related to tax positions taken in prior quarters, including interest. These adjustments are excluded because the company believes that they are not indicative of the underlying performance of its ongoing business. Additionally, free cash flow is defined as cash flows provided by (used in) operating activities less purchases of property, plant and equipment, net, and the activity related to Flash Ventures, net. The company considers free cash flow generated in any period to be a useful indicator of cash that is available for strategic opportunities including, among others, investing in the company's business, making strategic acquisitions, repaying debt and strengthening the balance sheet.#22་་་ Western Digital. TM Create What's Next