EMC & VMWARE STRATEGIC FORUM NEW YORK MARCH David Goulden Chief Financial Officer, EMC2 Copyright 2013 EMC Corporation. All rights reserved.

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1 EMC & VMWARE STRATEGIC FORUM NEW YORK MARCH David Goulden Chief Financial Officer, EMC 2 1

2 Agenda Delivering The Triple Play Capital Allocation Revenue Disclosure Long-Term Financial Performance 2

3 Agenda Delivering The Triple Play Capital Allocation Revenue Disclosure Long-Term Financial Performance 3

4 EMC Long-Term Results: (Non-GAAP) Yr Change Revenue $13.2B $21.7B 10% CAGR Gross Margin % 55.8% 64.5% 870 bps Operating Margin % 17.7% 24.9% 720 bps EPS $0.88 $ % CAGR Free Cash Flow $2.2B $5.0B 18% CAGR 4

5 GAIN SHARE FINANCIAL TRIPLE PLAY FINANCIAL LEVERAGE INVEST FOR THE FUTURE 5

6 Gain Market Share IT Spend 7-8% 5-7% ~2% EMC TAM 14% 10% 5% ~3x EMC Revenue 21% 18% 9% IT Spending 6

7 GAIN SHARE FINANCIAL TRIPLE PLAY FINANCIAL LEVERAGE INVEST FOR THE FUTURE 7

8 Invest For The Future: R&D $10.4B FAST Suite Unisphere Isilon S200 Data Domain 990 VMware vcloud OneFS Pivotal HD HAWQ VPLEX Greenplum DCA VNX VNXe VMAX 40K/20K/10K VMware vsphere 5 XCP 2.0 RSA Security Analytics Xtrem SW 8

9 Invest For The Future: Acquisitions $9.1B * $24.0 $22.0 Revenue Growth from Acquired Companies Acquired Revenue Base Revenue $20.0 $18.0 $16.0 $14.0 $12.0 $ * Excludes acquisition impact of consumer business 9

10 Invest For The Future: GTM $ B $3 BRIC+13 Revenue $20.9B $2 $1 $

11 GAIN SHARE FINANCIAL TRIPLE PLAY FINANCIAL LEVERAGE INVEST FOR THE FUTURE 11

12 Financial Leverage Revenue % CAGR $1.70 Gross Margin Improvements NG EPS 14% CAGR $21.7B Operating Expense Efficiencies Cost Transformation Initiatives $0.88 $13.2B 720 bps Operating Margin Expansion

13 GAIN SHARE FINANCIAL TRIPLE PLAY FINANCIAL LEVERAGE INVEST FOR THE FUTURE 13

14 Agenda Delivering The Triple Play Capital Allocation Revenue Disclosure Long-Term Financial Performance 14

15 EMC Consolidated Cash Balance Trend $12.0 $11.4B $10.0 $8.0 $6.0 $8.0B VMW Int'l EMC Int'l VMW Dom EMC Dom $4.0 $2.0 $

16 EMC Consolidated Free Cash Flow Trend $6.0 $5.0 Free Cash Flow Non-GAAP NI $18.1B $13.8B $5.0B $4.0 FCF > Non-GAAP NI $4.3B $3.0 $2.6B $2.0 $1.0 $

17 Capital Allocation $20 $18 $16 $14 $12 $10 Cumulative FCF vs. Cash Use * Generated $18.1B Of FCF Free Cash Flow Acquisitions Share Purchases Invested 50% In Acquisitions Returned 43% Via Share Purchases Deployed 93% Of FCF $8 $6 $4 $2 $ * Excludes acquisition impact of consumer business 17

18 Capital Allocation: Acquisitions $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 Cumulative Acquisition Spend * $0.5B $3.2B $6.4B $7.0B * Excludes acquisition impact of consumer business $9.1B $1.5B $7.6B Key Technologies For Cloud, Big Data, & Trust Significant Value Created So Far Paid $7.6B For $0.8B In Annualized Revenue Grew Revenue To $3.0B In 2012 Significant Strategic Value To Come Paid $1.5B For Future Revenues XtremIO, Nicira, Cetas, Syncplicity 18

19 Capital Allocation: Share Purchases Cumulative Share Purchase Spend $7.6B Returned To Shareholders $9 $8 $7 $6 $5 $4 $3 VMware Repurchase EMC Purchase of VMware EMC Repurchase $3.2B $6.2B $7.6B $1.3B $1.1B $5.2B $5.2B To Repurchase EMC Shares 12% Annual Return On Investment $1.1B To Purchase VMware Shares Maintain 80% Ownership 2012 EPS Opportunity Cost Of $0.01 $2 $1.5B $1.5B $1 $

20 Capital Allocation: Summary Total FCF Acquisitions 2012 Revenues Share Purchases Annual Return 5 Year $18.1B $9.1B $3.0B $7.6B 12% % of FCF Invested 93% 10 Year $25.6B $13.3B $9.5B $14.4B 11% 109% LOOKING FORWARD Continued Investment In M&A And Share Purchases Committed To Increasing Annual Return To Shareholders Continue To Assess Best Vehicles For Returns To Shareholders 20

21 Agenda Delivering The Triple Play Capital Allocation Revenue Disclosure Long-Term Financial Performance 21

22 Revenue Disclosure 2012 Reported 2012 Growth Y/Y High-end Product $3.5B 1% Mid-tier Product $5.2B 9% Other Product $1.7B -11% Storage Services $5.2B 12% Total Storage $15.6B 6% RSA $0.9B 7% IIG $0.6B -3% EMC II $17.1B 5% VMware $4.6B 22% Consolidated EMC $21.7B 9% 22

23 Revenue Disclosure 2012 Reported 2012 Growth Y/Y High-end Product $3.5B 1% Mid-tier Product $5.2B 9% Other Product $1.7B -11% Storage Services $5.2B 12% Total Storage $15.6B 6% RSA $0.9B 7% IIG $0.6B -3% EMC II $17.1B 5% VMware $4.6B 22% Consolidated EMC $21.7B 9% CHALLENGES Mid-tier Very Diverse No Visibility Into Growth From Emerging Storage Technologies Lacks Storage Business View Greenplum In Other Pivotal Split Between EMC/VMW 23

24 Revenue Disclosure Improvement 2012 Reported 2012 Growth Y/Y High-end Product $3.5B 1% Mid-tier Product $5.2B 9% Other Product $1.7B -11% Storage Services $5.2B 12% Total Storage $15.6B 6% RSA $0.9B 7% IIG $0.6B -3% EMC II $17.1B 5% VMware $4.6B 22% Consolidated EMC $21.7B 9% 2012 New View 2012 Growth Y/Y High-end $4.7B 3% Unified & Backup/Recovery $6.0B 8% Emerging Storage $1.0B 49% Other Storage $2.1B -10% Storage Professional Svcs. $1.8B 3% Total Storage $15.4B 6% RSA $0.9B 7% IIG $0.6B -3% EMC II $17.0B 5% Pivotal $0.3B 101% VMware $4.5B 21% Consolidated EMC $21.7B 9% 24

25 New 2012 Revenue Mix Pivotal $0.3B; 1% IIG $0.6B; 3% RSA $0.9B; 4% VMware$4.5B ; 21% High-End $4.7B; 21% Storage Professional Svcs. $1.8B; 8% Other Storage $2.1B; 10% Emerging Storage $1.0B; 5% Unified & Backup/Recovery $6.0B; 27% 25

26 Agenda Delivering The Triple Play Capital Allocation Revenue Reporting Long-Term Financial Performance 26

27 2012 New View 2012 Growth Y/Y High-end $4.7B 3% Unified & Backup/Recovery $6.0B 8% Emerging Storage $1.0B 49% Other Storage $2.1B -10% Storage Professional Svcs. $1.8B 3% Total Storage $15.4B 6% RSA $0.9B 7% IIG $0.6B -3% EMC II $17.0B 5% Pivotal $0.3B 101% VMware $4.5B 21% Consolidated EMC $21.7B 9% 27

28 Storage: High-End TAM $B $12 $10 $8 $6 CAGR 1-3% Market Multi-Core Scaling, Hybrid Systems Enterprise Reliability/Availability Advanced Data Services Multi-Site Replication $4 $2 $ e 28

29 Storage: High-End TAM $B $12 $10 $8 $6 $4 $2 $0 CAGR 1-3% e Market Multi-Core Scaling, Hybrid Systems Enterprise Reliability/Availability Advanced Data Services Multi-Site Replication EMC VMAX Hardware VMAX Software Incl. FAST VP VMAX HW & SW Support 29

30 Storage: Unified & Backup / Recovery TAM $B $40 $35 $30 $25 $20 $15 $10 $5 $0 CAGR 3-6% e Market Mid-Tier Hybrid Systems Purpose-Built Backup Appliances Backup & Archive Software 30

31 Storage: Unified & Backup / Recovery TAM $B $40 $35 $30 $25 $20 $15 $10 $5 $0 CAGR 3-6% e Market Mid-Tier Hybrid Systems Purpose-Built Backup Appliances Backup & Archive Software EMC VNX/VNXe Data Domain & Avamar NetWorker & DPA Disk Library Mainframe Hardware & Software Support 31

32 Storage: Emerging TAM $B $10 $8 $6 CAGR 25%+ Market Scale-Out NAS PCIe Flash & All-Flash Arrays Software-Defined Storage $4 $2 $ e 32

33 Storage: Emerging TAM $B $10 $8 $6 $4 $2 $0 CAGR 25% e Market Scale-Out NAS PCIe Flash & All-Flash Arrays Software-Defined Storage EMC Isilon Xtrem Flash Family Atmos VPLEX & RecoverPoint Software-Defined Storage 33

34 Storage: Other & Professional Services TAM $B $22 $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 CAGR 1-3% e Market Storage Switching & HBAs Storage Consulting & Implementation Services 34

35 Storage: Other & Professional Services TAM $B $22 $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 CAGR 1-3% e Market Storage Switching & HBAs Storage Consulting & Implementation Services EMC Other Storage Third-Party Product Traditional SRM Storage Professional Services Implementation Services EMC Consulting 35

36 Security TAM $B $12 $10 $8 $6 CAGR 10-14% Market Advanced Authentication Portable Security Devices Data Loss Prevention Security Analytics Governance Risk & Compliance $4 $2 $ e 36

37 Security TAM $B $12 $10 $8 $6 CAGR 10-14% Market Advanced Authentication Portable Security Devices Data Loss Prevention Security Analytics Governance Risk & Compliance $4 $2 $ e RSA Identity & Data Protection Security Management & Compliance 37

38 Content Management TAM $B $12 $10 $8 CAGR 1-3% Market Content Management Image & Capture Management Team Collaboration $6 $4 $2 $ e 38

39 Content Management TAM $B $12 $10 $8 $6 $4 $2 CAGR 1-3% Market Content Management Image & Capture Management Team Collaboration IIG Product Led Solutions Led Cloud Services $ e 39

40 EMC Consolidated Business TAM CAGR e High-End 1-3% Unified & Backup / Archive 3-6% Emerging 25%+ Other & Professional Svcs. 1-3% Security 10-14% Content Management 1-3% Pivotal * Outlook ASSUMING EMC MAINTAINS SHARE =8% GROWTH VMware ** Outlook * 2013 Outlook; Outlook ** Midpoint of 2013 Outlook, Outlook 40

41 Impressive Potential $30B+ EPS Leverage 5-YR CAGR ( ) 4-YR CAGR ( p) Revenue 10% 9% Non-GAAP EPS¹ 14% IT Spending 3.5% 10%+ 3% $21.7B $1.70 $23.5B $1.85 $13.2B $ e 2016p Refer to the schedules available on the events page at emc.com/ir for a complete reconciliation of GAAP to non-gaap results. 41

42 Thank You 42

43 EMC & VMWARE STRATEGIC FORUM NEW YORK MARCH