Why Dell | Dell Technologies

Dell Technologies Value Proposition

Leading market positions and a differentiated strategy, supported by durable competitive advantages, lead to consistent growth and significant value creation

We are uniquely positioned in the data and multicloud era

Leadership positions in large, stable, and expanding markets with strong underlying fundamentals

A track record of consistent growth, profitability, and shareholder value creation

A differentiated strategy to win the consolidation and modernization of our core markets and build new businesses where Dell has a unique right to win

Durable and reinforcing competitive advantages that uniquely position Dell to win in core and adjacent markets

Durable Competitive Advantages:
Uniquely position us to drive predictable financial results

#1 positions
in critical Client and Infrastructure segments, enabled by customer-driven innovation

End-to-end from the PC
to the core data center to the cloud to the edge, creating deep customer insights and driving innovation

Tech’s largest
direct go-to-market and channel partner ecosystem, creating unparalleled market reach and leading profitability versus competitors

Leading global services footprint in technology
to support complex customer needs, powered by modern, proactive, and predictive software

Industry-leading scale
and differentiated supply chain capabilities, enabling cost position, speed, continuity of supply, security, and sustainability

Leading financial services capabilities
that enable customers to invest across the IT lifecycle and create deep customer loyalty

‘First & best’ VMware alliance
enabling faster time to market and differentiated, jointly engineered solutions

Leading market positions and a differentiated strategy, supported by durable competitive advantages

Consolidate and modernize the Core business

Compute & Networking

Storage

Dell APEX

Build new growth businesses where we have a unique right to win

Edge

Telecom

Multicloud Service Delivery

Data Mgmt.

Other New Businesses
^{_{(e.g., Security & AI/ML)}}

Target returning 40 - 60% of Adj. FCF to shareholders

Dividend

Paid $1.32 per share in FY23, or ~$1B in dividends over the course of the fiscal year
Announced a ~12% dividend increase to $1.48 per share, reflecting confidence in our long-term business model and our ability to grow our cash flow over time

Buy Backs

Repurchased 62.4M shares for $2.8B in FY23. Moving forward, share repurchases will continue to follow a programmatic approach to at least manage dilution and opportunistically return capital to shareholders

Invest the remaining Adj. FCF in the business

Invest remaining 40 - 60% in the business, growth opportunities and debt repayment

Additional debt paydown as we work toward our 1.5x core leverage target

Reinvest in organic growth opportunities

Targeted M&A that accelerates our strategy

Attractive long-term financial model

3 - 4% Revenue growth

6+% EPS growth

NI to Adj. FCF Conversion of 100% or better

Target returning 40 - 60% of Adj. FCF to shareholders

Base Case Revenue Growth & Operational Drivers

Broadest portfolio in the industry, focused on delivering customer solutions
Durable competitive advantages
Management team with a track record of execution

Additional Opportunities and Risks

Acceleration of key technology trends

Opportunities to expand into Telecom, Edge, Data Management and Managed Services

Significant macroeconomic or geo-political events

Base Case Diluted EPS Growth and Operational Drivers

Broadest portfolio in the industry, focused on delivering customer solutions
Durable competitive advantages
Management team with a track record of execution

Additional Opportunities and Risks

Revenue and Opinc growth beyond base case

Interest expense leverage

Tax policy

Dell's Business Units

Client Solutions Group (CSG) includes commercial and consumer segments and products such as Desktops, Notebooks, Monitors, and other peripherals.

Overall PC industry has reset to a higher level in the long term,

led by richer configurations, more mobile notebooks, and peripheral expansion driven by hybrid work

Focused on the most valuable portions of the market,

commercial, premium consumer including gaming and high margin peripheral

Strong track record of relative share gain,

with 10 years of consecutive share gain in the higher value commercial PC segment¹

Greater than 75% of Dell's CSG Revenue mix

is from Commercial PCs

Note: 1) Per IDC PC Units Q4CY22, data between Q1CY12 – Q4CY22

CSG Revenue opinc

Leadership positions in CSG

Note: 1) Client PC & upsell revenue statistic calculated by Dell Technologies primarily by utilizing other PC OEMs’ financial public filings, as of Q3 FY23. 2) Per IDC WW Quarterly Workstation Tracker CY22Q4. 3) Per IDC WW Quarterly PC Device Tracker, CY22Q4. Includes workstations. 4) Per IDC WW Quarterly Monitor Tracker CY22Q4. 5) Per IDC Quarterly Gaming Tracker, CY22Q4, $1,500+ price band

Dell's ISG business includes products within our storage, server and networking segments.

ISG is well-positioned for growth in storage, servers, and adjacent opportunities

underpinned by our broad portfolio of #1s, innovation engine, and support organizations

Our Core TAM is large and growing

and we have additional long-term upside in Telecom, Edge, data management and aaS

Strong track record of relative share gain,

9 points of mainstream server share gain over 10 years¹ and 4 points of midrange storage share gain over 5 years²

Our ISG business has been strong and resilient through economic cycles

we grew in FY23

Note: 1) Per IDC WW Quarterly Server Tracker 3QCY22, data between 3QCY12 – 3QCY22 TTM. 2) Per IDC WW Quarterly Enterprise Storage Systems Tracker 3QCY22, data between 3QCY17 – 3QCY22 TTM

ISG Revenue opinc

Leadership positions in Storage / Server

Note: 1) IDC Quarterly Enterprise Storage Systems Tracker, 2022Q3, based on revenue 2) IDC Quarterly Converged Systems Tracker 2022Q3, based on revenue; 3) IDC Quarterly Server Tracker, 2022Q3, based on revenue, Mainstream Server is: Large System, Standard Rack and Tower

Edge

Data is everywhere, and for many organizations, their compute, storage and networking capabilities are centralized in a decentralized world, with an increasing reliance on hybrid and multicloud strategies to manage applications and workloads.

The Edge is now an additional cloud locality -

what we call the Third Premises

$214B

Market opportunity
(2025E)

17%

Projected CAGR
(2020-2025E)

Dell’s Right to Win

We have a trusted relationship with our customer base

Our supply chain, manufacturing, and global support and delivery are unmatched

Our partnership alliances span all leading OT vendors

We work closely with the cloud providers to best address customer needs

Source: IDC Worldwide Edge Spending Guide for Global Enterprise Edge Computing

Telecom

Network operators need to “cloudify” their network architectures for 5G and widespread connectivity, and

We are uniquely positioned to modernize IT for telecom

in the ways we have modernized IT for the enterprise.

$76B

Market opportunity
(2026E)

Projected CAGR
(2020-2026E)

Dell’s Right to Win

We are the largest provider of open, software-defined, industry standard infrastructure

Dell’s engineering, supply chain, and services can anchor the emerging modern telecom ecosystem

We have new integration and solutions development capabilities

Our strategy and business model allows us to partner across the vast 5G ecosystem

Source: 1) IDC, Gartner, and numerous telecom-specific industry reports

SPECIAL NOTE ON FORWARD-LOOKING STATEMENTS

Statements in this presentation that relate to future results and events are forward-looking statements and are based on Dell Technologies' current expectations. In some cases, you can identify these statements by such forward-looking words as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “confidence,” “may,” “plan,” “potential,” “should,” “will” and “would,” or similar expressions. Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of a number of risks, uncertainties and other factors, including those discussed in Dell Technologies’ periodic reports filed with the Securities and Exchange Commission. Dell Technologies assumes no obligation to update its forward-looking statements.