Creating Two Independent Public Companies
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Capital Structure and Capital Allocation Considerations
Guiding Principles
HDD
■ HDD and Flash capital structures will
reflect respective growth
opportunities and changes in
profitability through cycle
■ Construct capital structures for two
independent, publicly traded
companies to be sustainable over
the long-term
■ Capital allocation strategy to match
comparable business profiles for
each, considering near-term market
conditions
■ Maintain strong market position and technological leadership
■ Lower earnings volatility with resilient demand provides opportunities
for deleveraging
Positioned for balanced approach to capital return for shareholders
Flash
Continued investment in broad product portfolio and technological leadership
supported by well established joint venture
Higher capital requirements in preparation for key investments ahead of
ramping future customer demand and nodal transitions
Western Digital. HDD FlashView entire presentation