Dell Technologies Inc. (NYSE:DELL) Q2 2024 Earnings Conference Call August 31, 2023 4:30 PM ET Company Participants Robert Williams - Head of Investor Relations Jeff Clarke - Vice Chairman and Chief Operating Officer Yvonne McGill - Chief Financial Officer Tyler Johnson - Senior Vice President & Treasurer Conference Call Participants Shannon Cross - Credit Suisse David Vogt - UBS Samik Chatterjee - JPMorgan Toni Sacconaghi - Bernstein Aaron Rakers - Wells Fargo Erik Woodring - Morgan Stanley Amit Daryan ...

Disclaimer 2 Copyright © Dell Inc. All Rights Reserved. Hall Butler Enhanced Governance and Board Structure Continually evolving governance practices informed by our regular shareholder engagement efforts • Enhanced proxy language around governance and shareholder engagement • Aligned economic interests of all share classes | --- | --- | --- | --- | --- | |--------|-------------------------------------------------------------------------------------------------------------------------------------------|---- ...

Dell Technologies Inc. (NYSE:DELL) Corporate Sustainability Investor Call July 27, 2023 4:00 PM ET Company Participants Hall Butler - Senior Director, Investor Relations Cassandra Garber - Vice President of Corporate Sustainability and ESG Alyson Freeman - Sustainability Product Manager, Infrastructure Solutions Group Conference Call Participants Hall Butler Hello, everyone. And thank you for joining us today. Welcome to our Fourth Annual Investor Call Covering Dell Technologies Corporate Sustainability. I' ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 5, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Delaware 80-0890963 One Dell Way, Round ...

Dell Technologies Inc. (NYSE:DELL) Bank of America 2023 Global Technology Conference Call June 6, 2023 12:20 PM ET Company Participants Sam Burd - President of CSG Conference Call Participants Wamsi Mohan - Bank of America Wamsi Mohan Hi, everyone. Thank you for joining us here at the Bank of America Global Technology Conference. I'm Wamsi Mohan. I cover IT/Hardware here for BofA. Delighted to have Dell with us today. We have Sam Burd, who's President of CSG. He's been in this role since 2018. Sam, thank yo ...

Financial Data and Key Metrics Changes - Revenue for Q1 2024 was $20.9 billion, down 20% year-over-year, with a diluted EPS of $1.31, down 29% due to lower net income [41][53][50] - Gross margin was $5.2 billion, representing 24.7% of revenue, up 2 points driven by lower input costs and pricing discipline [21] - Operating income was $1.6 billion, or 7.6% of revenue, impacted by a decline in revenue but partially offset by a higher gross margin rate and lower operating expenses [22][50] - Net income was $963 million, primarily affected by lower operating income and a higher tax rate [23] Business Line Data and Key Metrics Changes - ISG revenue was $7.6 billion, down 18%, with operating income of $740 million, or 9.7% of revenue, down 2 points [24][54] - CSG revenue was $12 billion, down 23%, with Commercial revenue at $9.9 billion and Consumer revenue at $2.1 billion [25] - In storage, PowerStore and PowerFlex saw continued demand growth, with PowerStore growing for 11 consecutive quarters [13] Market Data and Key Metrics Changes - The demand environment remains challenged, with customers cautious in IT spending across all regions and verticals [7] - The PC market has continued to slow, with a 29% decline in units in the last two quarters [55] - Currency fluctuations negatively impacted revenue by approximately 290 basis points [50] Company Strategy and Development Direction - The company announced Project Helix in collaboration with NVIDIA to enable customers to deploy generative AI on-premises [9] - A focus on maintaining pricing discipline and managing costs while investing in innovation and customer relationships [19][30] - The company aims to return to sequential growth in the second half of the year, with expectations for CSG and ISG to improve [60][141] Management's Comments on Operating Environment and Future Outlook - Management expects the cautious IT spending environment to continue into Q2, with a competitive pricing landscape as inventories normalize [18][30] - There is confidence in the long-term health of core markets, with a commitment to delivering a revenue CAGR of 3% to 4% and a diluted EPS CAGR of 6% or higher [87] - Management noted that while AI demand is strong, it is still early in the demand cycle for AI infrastructure [130] Other Important Information - The company ended the quarter with $9.2 billion in cash and investments, down $1 billion sequentially due to debt paydown and capital returns [27] - The board elected Ellen Kullman as lead independent director, enhancing governance and oversight [33] - The company has returned $5 billion to shareholders over the last six quarters, exceeding its capital return target [62] Q&A Session Summary Question: Why did the full-year guidance only increase by $0.20 despite a strong Q1 performance? - Management explained that while Q1 performance was strong, the overall demand environment remains uncertain, leading to a cautious outlook for Q2 [34] Question: How is the company approaching pricing and share in a competitive environment? - Management stated that there is limited price elasticity across most business segments, with a focus on maintaining profitability while selectively pursuing opportunities [96] Question: What is the outlook for free cash flow generation? - Management expressed confidence in improving free cash flow as working capital conditions stabilize, with a focus on optimizing cash conversion cycles [101][104] Question: How does the company view the AI market and its impact on product offerings? - Management highlighted strong demand for AI-optimized infrastructure and the potential for significant growth in this area, although it is still early in the demand cycle [130][132] Question: What are the expectations for the PC market moving forward? - Management indicated that the PC market is expected to stabilize, with a larger revenue and profit opportunity post-pandemic, despite current challenges [149]

Dell Technologies Inc. (NYSE:DELL) Bank of America’s View from the Top CEO Series Conference Transcript March 29, 2023 3:30 PM ET Executives Michael Dell - Chairman and CEO Analysts Wamsi Mohan - Bank of America Wamsi Mohan Hello and good afternoon. Welcome to our View from the Top CEO Call Series, where we’re focused on the vision and strategy CEOs that are driving their organizations toward. Before I get started, I need to mention the conflict disclosures as related to the individual companies or securiti ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 3, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37867 Dell Technologies Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of i ...

Dell Technologies Inc. Conference Call Summary Company Overview - **Company**: Dell Technologies Inc. (NYSE: DELL) - **Event**: Morgan Stanley Technology, Media & Telecom Conference - **Date**: March 7, 2023 Key Points Financial Performance - **Fiscal Year 2023 Performance**: - Total revenue: $102.3 billion, up 1% year-over-year [4] - Record operating income: $8.6 billion, up 11% [4] - Record EPS: $7.61, up 22% [4] - **Segment Performance**: - Infrastructure Solutions Group (ISG) revenue: $38.4 billion, up 12% [4] - Record performance in server and networking revenue [4] - Storage business grew 10% in Q4 [5] Market Dynamics - **Demand Environment**: - First half of FY23 saw a 12% increase, while the second half experienced a 9% decline due to deteriorating demand [4] - Caution in spending observed across customer segments, with IT budgets holding up but requiring more approvals [9] - **Geographic Performance**: - North America performed better, while China showed weakness [9] - Strength noted in financial services and construction sectors [9] PC Market Insights - **Current Market Conditions**: - Price competition intensified, especially in the consumer segment [14] - Total addressable market (TAM) projected at just under 206 million units, focusing on lucrative profit pools in commercial and premium consumer segments [16] - **Long-term Outlook**: - Anticipation of a market refresh as companies delay projects but remain committed to technology spending [11][17] ISG Business Outlook - **Growth Trends**: - ISG had a record year with $38.4 billion in revenue [22] - Caution persists in the server business, with storage showing strength [22] - **Guidance**: - Mid-20% decline expected in ISG for Q1, with overall company guidance down mid-teens for the year [24] Cost Management and Margins - **Gross Margin Expectations**: - Anticipated improvement of about 100 basis points due to a shift towards storage and deflationary cost trends [34] - **Operating Expenses**: - Expected to be a tailwind, but descaling may pressure operating margins [34] Capital Allocation Strategy - **Shareholder Returns**: - Commitment to return 40% to 60% of adjusted free cash flow to shareholders [39] - Dividend increased by 12% [39] - **M&A Focus**: - Targeting talent and technology acquisitions that align with growth strategies [39] AI and Cloud Strategy - **AI Integration**: - AI embedded in solutions to enhance performance and efficiency [43] - Focus on private data sets for AI applications, aligning with core business strengths [45] - **APEX Initiative**: - Continued growth with a doubling of customers and crossing $1 billion in ARR [47] Long-term Vision - **Market Positioning**: - Leadership in x86 servers, storage categories, and commercial PC business [50] - Structural share gainer with significant market share headroom [32] - **Execution and Growth**: - Historical revenue growth of 6% and EPS growth of 18% over the last three years [52] - Strong free cash flow generation of $18.5 billion over four years [52] Conclusion - **Investor Outlook**: - Encouragement for long-term investors to reassess Dell's competitive advantages and market positioning amidst macroeconomic challenges [52] This summary encapsulates the key insights and data points from the conference call, providing a comprehensive overview of Dell Technologies Inc.'s current performance, market dynamics, and strategic outlook.

Financial Data and Key Metrics Changes - The company reported record FY '23 revenue of $102.3 billion, up 1% from FY '22, with operating income of $8.6 billion, up 11%, and diluted EPS of $7.61, up 22% [13][24][33] - Q4 revenue was $25 billion, down 11%, with operating income of $2.2 billion and diluted EPS of $1.80 [14][26][48] - CSG operating income was $671 million, or 5% of revenue, primarily due to revenue decline outpacing operating expenses [7][28] Business Line Data and Key Metrics Changes - ISG revenue reached $38.4 billion, with record revenue in servers and networking, and storage, contributing to record operating income of over $5 billion [13][14] - CSG revenue declined 23% to $13.4 billion in Q4, with commercial revenue down 17% and consumer revenue down 40% [15][28] - ISG revenue for Q4 was $9.9 billion, up 7%, with storage revenue at a record $5 billion, up 10% [14][49] Market Data and Key Metrics Changes - The company gained over a point of share in mainstream server and storage revenue, remaining the number one in the server market and significantly leading in storage [5] - The PC market showed significant softness, with commercial PCs down 17% and consumer PCs down 40% [15][20] - Demand softness was noted across most verticals, with select growth in financial services, transportation, and construction [18][21] Company Strategy and Development Direction - The company aims to maintain pricing discipline and focus on profitable segments of the PC market while navigating the current macroeconomic challenges [7][22] - Continued investment in innovation and a commitment to capital returns were emphasized, with a balanced approach to share repurchases and dividends [31][55] - The company plans to stick to its successful playbook from FY '23, focusing on customer needs and maintaining operational agility [22][55] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the IT spending environment, expecting challenges to persist in early FY '24 but maintaining confidence in long-term market health [19][21] - The company anticipates a rebound in spending later in the year, driven by ongoing digital investments and customer planning [21][22] - Management noted that while demand remains weak, customers are still planning projects, indicating potential for future growth [21][22] Other Important Information - The company ended the quarter with $10.2 billion in cash and investments, up $3.7 billion sequentially [30] - A 12% increase in the annual dividend from $1.32 to $1.48 per share reflects confidence in the long-term business model [31] - The company expects Q1 revenue to be seasonally lower, down between 17% and 21%, with a full-year revenue decline forecasted between 12% and 18% [53][54] Q&A Session Summary Question: Clarification on CSG performance and ASP trends - Management acknowledged pricing pressure in CSG but noted that average selling prices (ASPs) were trending higher despite the overall revenue decline [37][39] Question: Capital deployment strategy in a challenging environment - Management indicated a balanced approach to capital deployment, focusing on share buybacks and maintaining dividends while navigating the current environment [45][95] Question: Operating margins outlook for each segment - Management suggested that operating margins for CSG may normalize to 5% to 6%, while ISG margins are expected to remain strong due to storage performance [75][76] Question: Full-year guidance split between CSG and ISG - Management expects both CSG and ISG to experience mid-teen declines, with a cautious outlook on recovery timing [81][82] Question: Demand linearity and order patterns - Management noted that demand was back-end loaded in Q4, with expectations for a more normalized order pattern as the year progresses [104][106] Question: Changes in outlook for storage and server segments - Management indicated that while storage showed strength in large customers, medium and small business performance moderated, leading to a more cautious outlook [133][134]