DELL TECHNOLOGIES INC.
Condensed Consolidated Statements of Income (Loss) and Related Financial Highlights(in millions, except percentages; unaudited)Three Months Ended
May 3, 2019
May 4, 2018

ChangeNet revenue:$Products
Services
Total net revenue
Cost of net revenue:
Products
Services
Total cost of net revenue
Gross margin
Operating expenses:
Selling, general, and administrative
Research and development
Total operating expenses
Operating income (loss)
Interest and other, net
Loss before income taxes
Income tax benefit
Net income (loss)
Less: Net income attributable to non-controlling interests$Net income (loss) attributable to Dell Technologies Inc.
Percentage of Total Net Revenue:

16,754
5,154
21,908

16,671
4,685
21,356—%10%
3%13,0792,032
15,111
6,797

13,606
1,872
15,478
5,878

(4)%
9%
(2)%
16%

5,071
1,176
6,247
550
(693)
(143)
(472)
329
36
293

4,944
1,087
6,031
(153)
(470)
(623)
(85)
(538)
98(636)

3%
8%
4%
459%
(47)%
77%(455)%
161%
63%
146%

31 %
23 %
5%
29 %
3%
(1)%
2%
330.1 %

Gross margin
Selling, general, and administrative
Research and developmentOperating expenses
Operating income (loss)
Loss before income taxes
Net income (loss)
Income tax rate

1$$

28 %
23 %
5%
28 %
(1)%(3)%(3)%
13.6 %

DELL TECHNOLOGIES INC.
Consolidated Statements of Financial Position(in millions; unaudited)
May 3, 2019

February 1, 2019ASSETS
Current assets:
Cash and cash equivalents
Short-term investments
Accounts receivable, net
Short-term financing receivables, net
Inventories, net
Other current assets
Total current assets
Property, plant, and equipment, net
Long-term investments
Long-term financing receivables, net
Goodwill
Intangible assets, net
Other non-current assets
Total assets

$

$

9,040
—
10,517
4,277
3,360
6,461
33,655
5,505
782
4,131
40,01520,9484,856
109,892

$

$

9,676
—
12,371
4,398
3,649
6,044
36,138
5,259
1,005
4,224
40,08922,2702,835
111,820

LIABILITIES, REDEEMABLE SHARES, AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Short-term debt
Accounts payable
Accrued and other
Short-term deferred revenue
Total current liabilities
Long-term debt
Long-term deferred revenue
Other non-current liabilities
Total liabilities
Redeemable shares
Stockholders’ equity (deficit):
Total Dell Technologies Inc. stockholders’ equity (deficit)
Non-controlling interests
Total stockholders’ equity (deficit)
Total liabilities, redeemable shares, and stockholders’ equity (deficit)

2$

$

4,884
18,097
7,455
13,04343,47948,640
11,135
6,525
109,779
1,774

$

4,320
19,213
8,495
12,94444,972
49,201
11,066
6,327
111,566
1,196(6,464)(5,765)

4,803(1,661)

4,823
(942)

109,892$

111,820

DELL TECHNOLOGIES INC.
Condensed Consolidated Statements of Cash Flows(in millions; unaudited)Three Months Ended
May 3, 2019
May 4, 2018
Cash flows from operating activities:
Net income (loss)
Adjustments to reconcile net loss to net cash provided by operating activities
Change in cash from operating activities
Cash flows from investing activities:
Investments:
Purchases
Maturities and sales
Capital expenditures
Proceeds from sale of facilities, land, and other assets
Capitalized software development costs
Collections on purchased financing receivables
Acquisition of businesses, net
Divestitures of businesses, net
Asset acquisitions, net
Asset dispositions, net
Change in cash from investing activities
Cash flows from financing activities:
Share repurchases for tax withholdings of equity awards
Proceeds from the issuance of common stock of subsidiaries
Repurchases of common stock of subsidiaries
Proceeds from debt
Repayments of debt
Other
Change in cash from financing activities
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
Change in cash, cash equivalents, and restricted cash
Cash, cash equivalents, and restricted cash at beginning of the period
Cash, cash equivalents, and restricted cash at end of the period

3$329
353
682

$

1,697
1,159(38)

(439)

337
(610)

531
(273)

—
(106)

10(89)

7(45)
——
(3)
(458)

10—
142
(38)
(3)
(149)

(215)

(100)

133
(592)

642
—
1,863
(1,822)(40)

9,563(9,569)
(39)
(719)
(36)
(531)
$

(538)

10,240
9,709

543
(86)

$

1,467
14,37815,845

DELL TECHNOLOGIES INC.
Segment Information(in millions, except percentages; unaudited; continued on next page)
Three Months Ended
May 3, 2019May 4, 2018

ChangeInfrastructure Solutions Group (ISG):
Net Revenue:
Servers and networking
Storage
Total ISG net revenue$$

Operating Income:ISG operating income% of ISG net revenue% of total reportable segment operating income

$

4,180
4,022
8,202$
$

843
$
10%
37%

4,585
4,082
8,667

939
11%
45%

(9)%(1)%(5)%(10)%Client Solutions Group (CSG):
Net Revenue:
Commercial
Consumer
Total CSG net revenue$$

Operating Income:CSG operating income% of CSG net revenue% of total reportable segment operating income$8,307
2,603
10,910$$793$7%35%

7,363
2,908
10,271533
5%26%13%(10)%6%49%

VMware:Net Revenue:
Total VMware net revenue$Operating Income:VMware operating income% of VMware net revenue% of total reportable segment operating income$42,282$

614
$
27%
27%

2,028

613
30%
29%

13%—%

DELL TECHNOLOGIES INC.
Segment Information(in millions, except percentages; unaudited; continued)
Three Months Ended
May 3, 2019
May 4, 2018
Reconciliation to consolidated net revenue:
Reportable segment net revenue
Other businesses (a)Unallocated transactions (b)Impact of purchase accounting (c)Total consolidated net revenue$

21,394 $
596
—
(82)

20,966
579
(2)
(187)

$

21,908$21,356$2,250 $
(53)
(1)
(101)
(1,217)
(42)
(263)
(23)

$

550

2,085
(50)
(9)
(222)
(1,522)
(166)
(199)
(70)
(153)

Reconciliation to consolidated operating income (loss):Reportable segment operating income
Other businesses (a)Unallocated transactions (b)Impact of purchase accounting (c)Amortization of intangibles
Transaction-related expenses (d)Stock-based compensation expense (e)Other corporate expenses (f)Total consolidated operating income (loss)$_________________(a) Pivotal, SecureWorks, RSA Security, Virtustream, and Boomi constitute “Other businesses” and do not meet therequirements for a reportable segment, either individually or collectively. The results of Other businesses are not material
to the Company’s overall results.
(b) Unallocated transactions includes long-term incentives, certain short-term incentive compensation expenses, and othercorporate items that are not allocated to Dell Technologies’ reportable segments.
(c) Impact of purchase accounting includes non-cash purchase accounting adjustments that are primarily related to the EMC
merger transaction.
(d) Transaction-related expenses includes acquisition, integration, and divestiture related costs, as well as the costs incurred inthe Class V transaction.
(e) Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards atgrant date.
(f) Other corporate expenses includes severance and facility action costs.

5

SUPPLEMENTAL SELECTED NON-GAAP FINANCIAL MEASURES
These tables present information about the Company’s non-GAAP net revenue, non-GAAP gross margin, non-GAAP operating
expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to non-controlling interest,
non-GAAP net income attributable to Dell Technologies Inc. - basic, non-GAAP net income attributable to Dell Technologies
Inc. - diluted, non-GAAP earnings per share attributable to Dell Technologies Inc. - basic, non-GAAP earnings per share
attributable to Dell Technologies Inc. - diluted, EBITDA, and adjusted EBITDA, which are non-GAAP financial measuresprovided as a supplement to the results provided in accordance with generally accepted accounting principles in the UnitedStates of America (“GAAP”). A detailed discussion of Dell Technologies’ reasons for including these non-GAAP financialmeasures, the limitations associated with these measures, the items excluded from these measures, and our reason for excluding
those items are presented in “Management’s Discussion and Analysis of Financial Condition and Results of Operations - NonGAAP Financial Measures” in our periodic reports filed with the SEC. Dell Technologies encourages investors to review thenon-GAAP discussion in conjunction with the presentation of non-GAAP financial measures.

6DELL TECHNOLOGIES INC.
Selected Non-GAAP Financial Measures(in millions, except percentages; unaudited)Three Months Ended
May 3, 2019
May 4, 2018

ChangeNon-GAAP net revenue
Non-GAAP gross margin% of non-GAAP net revenue$$

21,990
$
7,434
$
34%

21,543
6,919
32%

2%
7%

Non-GAAP operating expenses% of non-GAAP net revenue$

5,238$
24%

4,893
23%

7%

Non-GAAP operating income% of non-GAAP net revenue$

2,196$
10%

2,026
9%

8%

Non-GAAP net income (a)% of non-GAAP net revenue

$

1,209
$
5%

1,179
5%

3%

Adjusted EBITDA% of non-GAAP net revenue

$

2,573
$
12%

2,383
11%

8%_________________(a) Non-GAAP net income has been recast to exclude fair value adjustments on equity investments, the corresponding tax
effects of those adjustments, and discrete tax items.

7

DELL TECHNOLOGIES INC.
Reconciliation of Selected Non-GAAP Financial Measures(in millions, except percentages; unaudited; continued on next page)
Three Months EndedMay 3, 2019
May 4, 2018
Net revenue
Non-GAAP adjustments:
Impact of purchase accounting
Non-GAAP net revenue$

21,908Change$21,356

3%$

82
21,990$187
21,543

2%

Gross margin
Non-GAAP adjustments:
Amortization of intangibles
Impact of purchase accounting
Transaction-related expenses
Stock-based compensation expense
Other corporate expenses
Non-GAAP gross margin

$

6,797

$

5,878

16%

$

26
137,434$

710
193
116
16
66,9197%

Operating expenses
Non-GAAP adjustments:
Amortization of intangibles
Impact of purchase accounting
Transaction-related expenses
Stock-based compensation expense
Other corporate expenses
Non-GAAP operating expenses

$

6,247

$

6,031

4%

$

5,238

$

4,893

7%

Operating income (loss)
Non-GAAP adjustments:
Amortization of intangibles
Impact of purchase accounting
Transaction-related expenses
Stock-based compensation expense
Other corporate expenses
Non-GAAP operating income

$550$

(153)

459%

$

1,217
101
42
263
23
2,196

$

1,522
222
166
199
70
2,026

8%

519
84
(5)

(698)
(17)
(47)
(237)
(10)

8(812)
(29)
(50)
(183)
(64)

DELL TECHNOLOGIES INC.
Reconciliation of Selected Non-GAAP Financial Measures(in millions, except percentages; unaudited; continued)
Three Months Ended
May 3, 2019
May 4, 2018
Change(538) 161%
$329 $Net income (loss)
Non-GAAP adjustments:
Amortization of intangibles
Impact of purchase accounting
Transaction-related expenses
Stock-based compensation expense
Other corporate expenses
Fair value adjustments on equity investments
Aggregate adjustment for income taxes
Non-GAAP net income (a)

1,217
101
42263
23(62)
(704)

1,522
222
166
199
70(107)
(355)

$

1,209

$

1,179

3%

Net income (loss)
Adjustments:
Interest and other, netIncome tax provision (benefit)
Depreciation and amortization
EBITDA$

329$(538)

161%

EBITDA
Adjustments:
Stock-based compensation expense
Impact of purchase accounting
Transaction-related expenses
Other corporate expenses
Adjusted EBITDA

693(472)470(85)

$

1,616
2,166

$

1,914
1,761

23%

$

2,166

$

1,761

23%

$

263
83
42
19
2,573

$

199
222
166
35
2,383

8%

_________________(a) Non-GAAP net income has been recast to exclude fair value adjustments on equity investments, the corresponding taxeffects of those adjustments, and discrete tax items.

9DELL TECHNOLOGIES INC.
Reconciliation of Selected Non-GAAP Financial Measures
For the Three Months Ended May 3, 2019(in millions, except per share amounts; unaudited)

GAAP

Transactionrelated
expenses

Stock-based
compensation
expenseOther
corporate
expenses

Fair value
adjustmentson equity
investments

Aggregateadjustment
for incometaxes

NonGAAP

329

1,217

101

42263

23(62)(704) $ 1,209

Less: Net income attributable to non-controllinginterests (a)3672

6346—(25)

(29)

109

Net income attributable to Dell Technologies Inc.
- basic

293

1,145

953921723(37)

(675)

1,100

Net income$

Amortization ofintangibles

Impact ofpurchaseaccounting

Incremental dilution from VMware, Inc.
attributable to Dell Technologies Inc. (b)

(8)

(8)

Net income attributable to Dell Technologies Inc.
$- diluted285$ 1,092

$
$

0.41
0.38$
$

Earnings per share - basic
Earnings per share - diluted
Weighted-average shares outstanding - basic
Weighted-average shares outstanding - diluted

1.53
1.45

717
751

717
751

_________________(a) Net income attributable to non-controlling interests is calculated by multiplying the minority interest percentage of VMware Inc., Pivotal Software Inc., andSecureWorks Corp. by their non-GAAP net income adjustments for the period presented.
(b) Incremental dilution from VMware, Inc. attributable to Dell Technologies Inc. represents the impact of VMware Inc.’s dilutive securities on the diluted earnings per
share of Dell Technologies Inc. and is calculated by multiplying the difference between VMware’s basic and diluted earnings per share by the number of shares ofVMware Inc. common stock held by Dell Technologies Inc.

10