Fiscal Third Quarter 2024 Financial Results Western Digital April 25, 2024 2 © 2024 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTSRESERVED Forward Looking Statements SAFE HARBOR ...

SAN JOSE, Calif., — April 25, 2024 — Western Digital Corp. (Nasdaq: WDC) today reported fiscal third quarter 2024 financial results. Western Digital Reports Fiscal Third Quarter 2024 Financial Results "As evidenced by our excellent third quarter results, Western Digital continues improving through-cycle profitability and dampening business cycles by leveraging our strategy of developing a diversified portfolio of industry-leading products across a broad range of end markets," said David Goeckeler, Western D ...

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 December 29, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to UNITED STATES SECURITIES AND EXCHANGE COMMISSION Commission file number: 1-8703 WESTERN DIGITAL CORPORATION (Exact Name of Registrant as Specified in Its Charter) (State or other jurisdiction of Delawa ...

Financial Data and Key Metrics Changes - Revenue for Q2 2024 was $3 billion, up 10% sequentially but down 2% year-over-year [16] - Non-GAAP gross margin was 15.5%, improving 11.4 percentage points sequentially but declining 1.9 percentage points year-over-year [19] - Non-GAAP loss per share was $0.69, which was within the guidance range provided in October [5][16] Business Line Data and Key Metrics Changes - Flash revenue was $1.7 billion, growing 7% sequentially, with Flash ASPs increasing 10% on a blended basis [18] - HDD revenue was $1.4 billion, increasing 14% sequentially, with total exabyte shipments also increasing 14% [18] - Cloud represented 35% of total revenue at $1.1 billion, up 23% sequentially but down 13% year-over-year [16] Market Data and Key Metrics Changes - Revenue in the cloud end market returned to sequential growth for the first time in six quarters, driven by increased nearline shipments [9] - Demand in China saw revenue doubling on a sequential and year-over-year basis, exceeding expectations [11] - The edge now represents approximately 80% of total NAND bit shipments, up from 75% in 2022, indicating strong cloud demand [7] Company Strategy and Development Direction - The company is focused on building leading products across various end markets and controlling product costs through R&D and manufacturing [5] - A disciplined approach to supply and capital investments is emphasized to improve through-cycle profitability [6][14] - The company anticipates a multi-year growth period driven by generative AI and a refresh cycle in client and consumer devices [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of both Flash and HDD markets, with expectations of improved nearline demand in the second half of fiscal year 2024 [8][15] - The company is optimistic about the impact of generative AI on storage demand, particularly in the edge market [7][84] - Management highlighted the importance of aligning supply with customer demand while maintaining profitability [14][15] Other Important Information - Operating expenses were $561 million, down 15% year-over-year, reflecting tight management [20] - Cash and cash equivalents were $2.5 billion, with total liquidity at $4.7 billion [21] - The company expects to turn free cash flow positive in the second half of fiscal 2024 [79] Q&A Session Summary Question: Can you discuss the gross margin improvement in Q1? - Management noted that gross margin in the Flash business was 7.9%, with strong pricing but lower volume impacting overall margins [26][27] Question: What is the underutilization assumption for the Flash business? - Management indicated that there is no underutilization for Q3, having reached targeted supply and inventory goals ahead of schedule [28][29] Question: Why was there a doubling of demand in China? - Management attributed the increase to the return of demand from Chinese hyperscalers rather than the smart video market [40] Question: How do you envision coming back in the enterprise SSD market? - Management stated that enterprise SSDs are expected to recover as inventory digestion occurs, with no fixed percentage for the mix [75][76] Question: When do you expect to be free cash flow positive? - Management expects to achieve free cash flow positive status in the second half of fiscal 2024 [79]

Fiscal Second Quarter 2024 Financial Results Western Digital January 25, 2024 2 © 2024 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTSRESERVED Forward Looking Statements SAFE HARBOR ...

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 September 29, 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: 1-8703 WESTERN DIGITAL CORPORATION (Exact Name of Registrant as Specified in Its Charter) (State or other jurisdiction of 5601 ...

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $2.75 billion, which is up 3% sequentially but down 26% year-over-year [21] - Non-GAAP loss per share was $1.76, reflecting ongoing challenges in the market [21] - Gross margin for the first quarter was 4.1%, impacted by $225 million in underutilization expenses [23] Business Line Data and Key Metrics Changes - Flash revenue was $1.6 billion, up 13% sequentially but down 10% year-over-year, with record flash bit shipments increasing 26% sequentially [22] - HDD revenue was $1.2 billion, down 8% sequentially and 41% year-over-year, with average price per unit increasing 13% to $112 [22] - The HDD business is expected to grow due to higher nearline shipments and seasonal demand in the consumer market [19] Market Data and Key Metrics Changes - Cloud represented 32% of total revenue at $0.9 billion, down 12% sequentially and 52% year-over-year [21] - Client represented 42% of total revenue at $1.1 billion, up 11% sequentially but down 7% year-over-year [21] - Consumer revenue was $0.7 billion, up 14% sequentially and 8% year-over-year, driven by higher content per unit and increased unit shipments in flash [21] Company Strategy and Development Direction - The company announced plans to spin off its flash business to create two independent public companies, allowing each to focus on their respective markets [5][9] - The HDD business is positioned to capitalize on the growing cloud infrastructure market, which is expected to grow at a 12% CAGR to $25 billion over the next three years [11] - The flash market is forecasted to grow at a 15% CAGR to $89 billion by 2025, driven by increased data generation from applications like AI and VR [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about emerging from a cyclical downturn, with expectations for improved market conditions in both HDD and flash businesses [28] - The company anticipates sequential revenue growth in Q2 driven by higher nearline HDD shipments and improved pricing in flash [26] - Management noted that demand from cloud customers remains subdued but expects gradual recovery as inventory corrections occur [67] Other Important Information - The company has reduced operating expenses by 19% year-over-year to $555 million, which is below guidance [24] - Cash capital expenditures for the quarter were a net inflow of $82 million, reflecting strategic financial management [25] - Total liquidity at the end of the quarter was $4.3 billion, including cash and cash equivalents of $2 billion [25] Q&A Session Summary Question: Can you talk about OpEx allocation between the two businesses post-separation? - Management indicated it is premature to discuss specific OpEx details but emphasized efficiency improvements over the past two years [32][33] Question: How will the separation affect the relationship with Kioxia? - Management confirmed that the relationship with Kioxia remains strong and the transaction can proceed without additional approvals [38] Question: What is the outlook for HDD demand from cloud customers? - Management believes the previous quarter marked the bottom, with expectations for improving demand throughout the fiscal year [40] Question: Will there be any changes in R&D synergies post-separation? - Management stated that the separation will not change the strategic direction or product roadmaps for either business [42] Question: What are the expectations for NAND underutilization charges? - Management expects underutilization charges to continue but at a lower level in the upcoming quarters [73]

Fiscal First Quarter 2024 Financial Results Western Digital October 30, 2023 2 © 2023 Western Digital Corporation or its affiliates All rights reserved Forward Looking Statements SAFE HARBOR ...

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 June 30, 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: 1-8703 WESTERN DIGITAL CORPORATION (Exact Name of Registrant as Specified in Its Charter) (State or other jurisdiction of 5601 Great Oaks Pa ...

Financial Performance - Revenue for Q3 2023 decreased by 36% to $2.803 billion compared to $4.381 billion in Q3 2022[182] - Gross profit declined by 76% to $286 million, with a gross margin of 10.2% in Q3 2023[182] - Operating loss of $472 million in Q3 2023, compared to an operating income of $324 million in Q3 2022[182] - Net loss attributable to common shareholders was $581 million in Q3 2023, a significant decline from a net income of $25 million in Q3 2022[182] - Consolidated net revenue decreased by $4.619 billion (32%) for the nine months ended March 31, 2023 compared to the prior year, driven by a 36% decline in Flash revenue and a 28% decline in HDD revenue[183][188] - Flash revenue decreased 42% and 36% for the three and nine months ended March 31, 2023, respectively, primarily due to a decline in average selling prices per gigabyte[188] - HDD revenue decreased 30% and 28% for the three and nine months ended March 31, 2023, respectively, primarily due to a 23% and 22% decline in exabytes shipped[188] - Cloud revenue decreased 32% for the nine months ended March 31, 2023, driven by reduced customer purchases to right-size inventories and lower flash-based product pricing[189] - Client revenue decreased 39% for the nine months ended March 31, 2023, driven by pricing pressure across Flash and declines in client SSD and HDD shipments for PC applications[189] - Consumer revenue decreased 28% for the nine months ended March 31, 2023, primarily due to a decrease in average selling price per gigabyte in Flash and lower retail HDD shipments[189] - Consolidated gross profit decreased by $2.63 billion for the nine months ended March 31, 2023, with gross margin declining 12.4 percentage points, primarily driven by lower Flash average selling prices[195] - Flash gross margin decreased by 23.5 percentage points year-over-year, substantially driven by lower average selling prices per gigabyte[195] - HDD gross margin decreased by 4.9 percentage points year-over-year, with approximately 3 percentage points due to manufacturing underutilization charges[195] - Income before taxes was a loss of $529 million for the three months and $830 million for the nine months ended March 31, 2023, compared to gains of $262 million and $1.612 billion in the prior year periods[202] - Effective tax rate was -8% for the three months and -19% for the nine months ended March 31, 2023, influenced by jurisdictional earnings mix and tax holidays[202] Operational Costs and Expenses - The company incurred $40 million in employee termination, asset impairment, and other charges in Q3 2023[182] - Research and development expense decreased $174 million for the nine months ended March 31, 2023, primarily due to reductions in variable compensation expenses and material use[196] - SG&A expenses decreased by $39 million for the three months and $112 million for the nine months ended March 31, 2023, driven by reductions in headcount, variable compensation, and material use[197] - Employee termination, asset impairment, and other charges increased by $36 million for the three months and $116 million for the nine months ended March 31, 2023, due to restructuring actions[197] - Net interest and other expense decreased by $5 million for the three months and $22 million for the nine months ended March 31, 2023, reflecting higher interest income and lower interest expense[199] Cash Flow and Capital Expenditures - Net cash used in operating activities was $340 million for the nine months ended March 31, 2023, compared to $1.585 billion provided in the prior year period[206] - Capital expenditures for 2023 are expected to be $2.2 billion, with net cash used for property, plant, and equipment expected to be $800 million[208] - Cash and cash equivalents held by foreign subsidiaries totaled $1.86 billion as of March 31, 2023, with no material tax consequences on repatriation[210] - Cash conversion cycle increased to 139 days for the three months ended March 31, 2023, from 90 days in the prior year period, driven by increases in DSO and DIO[212] - Net cash provided by financing activities was $856 million for the nine months ended March 31, 2023, primarily from the issuance of Series A Preferred Stock[215] Debt and Financial Obligations - Total long-term debt, including current portion, is $7.1 billion, with $4.738 billion due in 2026-2027 and $999 million beyond 2027[220] - Interest on debt totals $1.18 billion, with $629 million due in 2024-2025 and $401 million in 2026-2027[220] - Flash Ventures related commitments amount to $4.616 billion, with $2.48 billion due in 2024-2025 and $1.041 billion in 2026-2027[220] - Mandatory Deemed Repatriation Tax liability is $661 million, with $257 million due in 2026[224] - Unrecognized tax benefits liability is $1.02 billion, with $280 million in accrued interest and penalties[225] - The company expects to pay $620-650 million in tax and interest for years 2008-2012 and $100-110 million for years 2013-2015[226] - The company has $2.25 billion available for borrowing under its revolving credit facility until January 2027[220] - The outstanding balance on the company's Term Loan A-2 is $2.7 billion, and a 1% increase in the variable rate would increase annual interest expense by $27 million[239] Strategic Initiatives and Business Review - Western Digital's BiCS6-based products achieved cost crossover in Q3 2023, and the company announced the next-generation BiCS8 node[176] - The company is reviewing strategic alternatives, including the potential separation of its Flash and HDD business units[174] - Western Digital amended its loan agreement in December 2022 to provide additional financial flexibility, with cash and cash equivalents plus available unused capacity exceeding $1 billion as of March 31, 2023[178] - The company issued 900,000 shares of Series A Preferred Stock for $900 million on January 31, 2023[179] - The company has authorized a stock repurchase program of up to $5.0 billion, with $4.5 billion remaining available as of March 31, 2023[232] - The company issued 900,000 shares of Series A Preferred Stock for $900 million, entitled to cumulative preferred dividends[221] - The company has a stock repurchase program authorized for up to $5.0 billion, with $4.5 billion remaining as of March 31, 2023[232] Risk Factors and Contingencies - A network security incident in March 2023 resulted in disruptions to business operations, but the financial impact is not expected to be material[170][171] - A 10% adverse movement in foreign currency exchange rates would result in a foreign exchange fair value loss of $294 million[238] - A hypothetical 10% adverse movement in foreign currency exchange rates would result in a foreign exchange fair value loss of $294 million at March 31, 2023[238]