Products, Distribution Channels, Sales Operations, and Supply Chain Management at Seagate Ming Chao, Project Manager Mike Ruggiero, Senior Sales Operation Analyst Seagate Technology April 29 2010 Seagate Confidential

Agenda Seagate Corporate Overview Ming Chao: Distributor Management; Market Integrity Function Mike Ruggiero: Sales Operation, Supply Chain Management Corporate Overview April 2010

Ming’s Bio Undergraduate, UC Santa Cruz - Class of 2004 Information System Management Graduate, Santa Clara Univ – Class of 2010 Master of Business Admin Corporate Overview April 2010

Ming’s Bio Cont… Career Path 2004-2006 Supply Chain International Trade Analyst 2006-2008 Supply Chain International Trade Sr. Supervisor 2008-Present Distributor Compliance Market Integrity Program Manager Corporate Overview April 2010

Seagate: Storage Leader Seagate is the world’s leading provider of storage devices. Q3 FY2010*: 50.3M drives shipped; revenue of $3.05B Provides storage devices for Enterprise, Desktop, Mobile Computing, Consumer Electronics and Retail Markets Builds Hard Disk Drives and Solid State Drives 31% overall market share Broadest product offering in the industry – largest customer base Ownership and vertical integration of critical technologies: heads and media 52,394** employees worldwide Corporate Overview April 2010 * For third fiscal quarter ended April 2, 2010 ** Includes interns, contractors, and agency temps Seagate Confidential

Seagate Global Presence Springtown, N. Ireland Shakopee, MN Bloomington, MN Amsterdam, Netherlands Santa Clara, CA Paris, France Beijing, China Tokyo, Japan Sunnyvale, CA Shrewsbury, MA Wuxi, China Fremont, CA Longmont, CO Scotts Valley, CA Oklahoma City, OK Delhi, India Suzhou, China Shanghai, China Teparuk & Korat, Thailand Taiwan Johor & Penang, Malaysia Ang Mo Kio, Singapore Science Park, Singapore Woodlands, Singapore HQs, Admin and/or Sales Design Customer Support Drive & Component Mfg Corporate Overview April 2010 Seagate Confidential

Industry Trends Seagate Confidential

Storage: The Heart of the Content Ecosystem Broadband, Cable, Satellite... Google, YouTube, iTunes, Facebook... INFRASTRUCTURE NETWORK AGGREGATORS CONTENT DVRs, HH, Gaming, Media Players, Backup... Storage ENJOYMENT AND CONTENT PRESERVATION Video, Photos, Movies, Music... CREATION CONTENT The ODW is upending traditional entertainment, distribution, and business models as well as consumer expectations and behaviors. The result is the dawning of a dynamic and vast ‘digital multiplier effect’ that’s great news for Seagate. Beginning with the network infrastructure. This is the key back-end piece of the ecosystem that serves as the high-speed network pipeline for the mass amounts of personal and commercial content. These are the cable, satellite, broadband (both wireless and wired) and includes the fiber optics networks that are currently being rolled. All these companies have built massive storage infrastructures to meet the consumer demand for digital content. Storage is at the heart of content creation. Commercial and personal content like music, movies and photos are growing at explosive rates. 600 billion photos are expected to be created, shared and stored by each year by 2009. High-definition video is coming into the hands of consumer and Hollywood creates, edits and will ultimately distribute (through digital theaters like Mark Cuban’s Landmark Theaters) their films digitally. The Content Aggregators or service providers like Google, Yahoo, Flickr, iTunes and others are building enormous libraries of digital content. iTunes alone boasts over 3 million songs, 60,000 Podcasts, 9,000 music videos and 70 television shows. Google and Yahoo! are bringing more and more music, video and services to consumers. This content is then sent to millions of consumers every week. It’s stored on a PC or a notebook or a handheld device or all three, and chances are it’s backed up on a big fat hard drive solution sitting on someone’s desk or in the closet. This is the multiplier effect where one piece of content is not only stored in multiple places by one person, but in multiple places by millions of people. Enjoying all this content are the consumers. And it’s coming in many forms. Millions of DVRs are receiving thousands of terabytes worth of TV, movies and other services sent by cable, satellite and high-speed broadband networks. Gaming consoles are built to receive the hottest gaming content from networks built by Microsoft and Sony. All your personal content can be shared at places like MySpace and Flickr. And as the value of this content continues to rise, you need a safe, easy-to-use backup storage device to protect it and keep it forever. Corporate Overview April 2010 Seagate Confidential

Total Units Shipped Millions * * includes all 3.5-inch ATA drives Corporate Overview April 2010 Source: Seagate Market & Competitive Intelligence Seagate Confidential

Total GigaBytes Shipped Billions * * includes all 3.5-inch ATA drives Corporate Overview April 2010 Source: Seagate Market & Competitive Intelligence Seagate Confidential

Q3 FY2010 Seagate Confidential

Q3 Financial Highlights Revenue $3.05 billion Net Income $518 million EPS $1.00 Shipments 50.3 million Margin 29.6% GAAP numbers Corporate Overview April 2010 Seagate Confidential

OEMs Distributors Retail Revenue By Channel 100% 80% 60% 40% 20% 0% 7 10 10 8 8 24 23 21 29 25 68 69 72 65 61 Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10 OEMs Distributors Retail Corporate Overview April 2010 Seagate Confidential

Revenue By Geography 100% 80% 60% 40% 20% 0% 22 23 23 28 24 48 53 50 51 45 30 27 24 26 26 Q3FY09 Q4FY09 Q1FY09 Q2FY010 Q3FY010 Americas Asia Pac EMEA Corporate Overview April 2010 Seagate Confidential

Market Share Estimates Total Market – All Form Factors - Preliminary Growth Y/Y = 44% Q/Q = 1% Q2 FY10 160.5M Units Q3 FY10 162.9M Units Corporate Overview April 2010 Source: Seagate Market & Competitive Intelligence Seagate Confidential

Product Update Seagate Confidential

Desktop Computing Products Barracuda® Barracuda XT – Industry’s first 2TB drive with the blazing-fast SATA 6Gb/s interface High-performance PCs, entry-level servers, PC gaming systems, PC-based home media servers Barracuda 7200.12 – World’s first 2-platter (500GB each) 1TB desktop hard drive Barracuda LP – Industry-leading ‘green’ low-power desktop hard drive 17 Seagate Confidential

Enterprise Products Cheetah®, Constellation™, Savvio®, Pulsar™ News Constellation ES: Seagate Ships Industry’s First 2TB 6Gb/s SAS Enterprise Drive Savvio 10K.4: Seagate Ships World’s Highest- Capacity, Most Reliable SFF Enterprise Drive Review Awards and Accolades! Constellation ES: 9/10 score, UMLan, February 2010 Cheetah NS.2: 9.5/10 “Golden Bear Award,” Bjorn3D, February 2010 Cheetah 15K.7: “2009 Editor’s Choice Award,” Benchmark Reviews, January 2010 Savvio 10K.4: 9/10 “Golden Bear Award,” Bjorn3D, April 2010 Corporate Overview April 2010 Seagate Confidential

Mobile Computing Products Market-leading technology Capacities up to 640GB and spin speeds up to 7200 RPM SATA 3Gb/s interface for fast data transfer Momentus Thin – World’s first 7mm-high 2.5-inch hard drive for netbooks and ultra-thin laptops Momentus® 5400 drive with full disk encryption (FDE) prevents unauthorized data access Free-fall protection for beefed-up laptop durability Momentus Seagate Confidential

People Looking for Convenience, Style & Enjoyment Seagate Retail Solutions ® ® Store, Protect, Secure Save, Store, Simplify Seagate BlackArmor® servers ensure mission- critical data security and availability. Seagate FreeAgent® drives make your content available where and when you want it. Small Business/ Prosumers Looking for Scalability, Continuity, Speed & Protection One brand catering to two distinct audience needs People Looking for Convenience, Style & Enjoyment Seagate Confidential 20

Seagate Retail Solutions (Continued) FreeAgent XTreme™: Access large amounts of your content with blazingly fast speed, making music production, photo copying or editing a breeze Blazingly fast data transfer speeds with eSATA, USB 2.0 and FireWire 400 Get up to 2TB to easily store all your large files and data. Easily protect all your data with automatic file backup and software encryption. Sleek, modern design that offers horizontal or vertical orientation Save energy with environmentally smart utilities. FreeAgent Go™: The smallest, thinnest portable device on the market, making it easy to back up, protect and carry all your music, photos, data and memories Choose from a rainbow of attractive colors to reflect your style. Access files with unprecedented convenience with a portable desktop dock. Up to 1TB to take complete libraries of music, movies and photos with you Synch content between home and other computers so you have most-recent version. FreeAgent Desk™: The best place to gather and access all of your important photos, games, movies, music and documents Keep your important files and folders private with powerful software encryption. Synch content between your desktop and FreeAgent Go or other portable devices. Sleek, modern design that offers horizontal or vertical orientation and up to 2TB of space Experience fast data transfer via USB 2.0. Corporate Overview April 2010 Seagate Confidential 21

Seagate Retail Solutions (Continued) Seagate FreeAgent Go Dock+™: FreeAgent Go Dock+ connects directly to your Mac OS X or Windows computer, allowing access to all the content stored on a FreeAgent Go or FreeAgent Go for Mac external hard drive without fumbling with cables. Features three additional powered USB ports so you can easily connect other USB devices Includes an ENERGY STAR-qualified power supply that can effortlessly power additional devices Seagate Replica™: A revolutionary backup appliance that completely eliminates the need to manually learn, manage or dedicate any time to the backup process Automatically and continuously stores up-to-date copies of everything on a PC, including installed applications, operating systems, e-mail, photos, etc. Integrates into Microsoft Windows, letting you work within a familiar environment should you need to recover a file Dock solution enables a one-time setup at your desk—no more fumbling with cords. Available in two configurations—either single PC or Multiple PC Corporate Overview April 2010 22 Seagate Confidential 22 22

Seagate Retail Solutions (Continued) Wherever, whenever, however you like it… The Seagate FreeAgent® for Mac suite of solutions is designed specifically for the Mac community and offers capabilities to meet the unique performance needs of creative professionals. The FreeAgent Go, FreeAgent Go Pro™ and FreeAgent Desk for Mac drives are Mac-ready out of the box. Pre-formatted with HSF+ and TimeMachine Ready Offered in 5400 or 7200 RPMs for blazingly-fast performance Support for Apple power management for greater energy efficiency Sleek design, with feet to complement consumers’ Mac desktop environments USB 2.0 FireWire 800 or 200 Up to 2TB of storage Corporate Overview April 2010 Seagate Confidential 23 23

Seagate Retail Solutions (Continued) Wherever, whenever, however you like it… The new evolution of Seagate FreeAgent Theater+™ HD media player allows consumers to instantly and easily access and enjoy their digital media libraries and favorite Internet content on their home entertainment systems with 1080p HD with DTS 2.0 + Digital Out and Dolby Digital sound. FreeAgent Theater+ media player brings enjoyment of digital content to the living room. 10/100 Ethernet port for media streaming and Internet access. Optional USB wireless adapter for 802.11n connectivity to home network Ability to access and stream content from Yahoo! Weather, Stocks Picasa and Flickr DVD-like playback with surround sound Pair photo slideshows with music and array of transition effects. Intuitive, on-screen interface with easy-to- use remote 2 additional USB ports for accessories or additional USB devices Stocks Seagate Confidential 24 24

Connect with your content! FreeAgent DockStar™ is sharing made easy! Seagate Retail Solutions (Continued) Wherever, whenever, however you like it… Connect with your content! Enables any PC in your home to see your FreeAgent Go drive as a folder on your network Access all your photos, movies and music from any PC inside or outside the home. Enables easy sharing with friends and family Access your content from any networked computer or iPhone. FreeAgent DockStar™ is sharing made easy! Corporate Overview April 2010 25 Seagate Confidential 25 25

Seagate Retail Solutions (Continued) ® Protect Your Business The new Seagate BlackArmor family of storage solutions delivers: High-quality storage to centralize and expand digital content for SOHO and Small Businesses MANAGEMENT utility for easy accessibility and sharing of digital content over the network and secure online access (Web) Reliable and available network storage solution using RAID technology to protect digital content High data protection and availability using auto backup applications 3-year warranty Superior user experience Easiest to install and manage Highest level of protection Wide-variety of solutions Grows with your business Seagate Confidential 26

Consumer Electronics Products Pipeline HD™ Family Pipeline HD Mini: World’s first 2.5-in. DVR hard drive; enables slim, sleek industrial designs High-capacity with lower-power performance Slim form factor Available in 160GB, 250GB, 320GB and 500GB capacities Enhanced acoustics for near-silent operation, coupled with 24x7 operation capabilities Earth friendly and sustainable product Pipeline HD.2: One- and two-disk, cost-optimized solutions Available in 160GB, 250GB, 320GB, 500GB and 1TB capacities for content-hungry consumers Enhanced acoustics for near-silent operation, coupled with 24x7 operation capabilities Earth friendly and sustainable product Corporate Overview April 2010 Seagate Confidential

Ming’s Job at Seagate Corporate Overview April 2010

Seagate WW Distributor Presence ARGENTINA CROATIA GUATEMALA LATVIA PAKISTAN SOUTH AFRICA AUSTRALIA CYPRUS HONG KONG LEBANON PANAMA SPAIN AUSTRIA CZECH REPUBLIC HUNGARY LITHUANIA PERU SWEDEN BAHRAIN DENMARK INDIA LUXEMBOURG PHILIPPINES SWITZERLAND BELARUS ECUADOR INDONESIA MALAYSIA POLAND TAIWAN BELGIUM EGYPT IRELAND MEXICO PORTUGAL THAILAND BRAZIL EL SALVADOR ISRAEL MOLDOVA QATAR TURKEY BRUNEI ESTONIA ITALY MOROCCO ROMANIA UKRAINE BULGARIA FINLAND JAMAICA NETHERLANDS RUSSIAN FEDERATION UNITED ARAB EMIRATES CANADA FRANCE JAPAN NEW ZEALAND SAUDI ARABIA UNITED KINGDOM CHILE GEORGIA JORDAN NORWAY SINGAPORE UNITED STATES CHINA GERMANY KAZAKSTAN KOREA, REPUBLIC OF SLOVAKIA URUGUAY COSTA RICA GREECE KUWAIT OMAN SLOVENIA VIETNAM Corporate Overview April 2010

Market Integrity Function Proactive Reactive Ethics, Policies & Procedures Provides training to key stakeholders Includes GM policy Grey Market Policy Establishes and identifies a policy for monitoring & managing risks related to the Grey Market and incentives including: Developing a grey market and incentives audit approach policy including consequence management Obtaining executive management buy-in Communicating the policy through series of planned road shows for all relevant regions POS Support & Analysis Establishes a consistent method/process for analyzing POS data to identify “red flags” for follow up; often prior to incentives being paid Partner & Deal Qualification Establishes a consistent process for partner selection and deal qualification to ensure they meet Seagate requirements (e.g. SI’s) Channel Controls Enhancement Review leading practices and establish processes, systems & controls for managing various channel programs Grey Market Buys & Investigations Risk Analysis Establishes a robust risk ranking process to enhance Seagate's channel partner compliance program, including: Analyzing internal quarterly data (e.g. POS, inventory, incentive program data) to provide a risk ranking of channel partners for review consideration Using other information (e.g. sales intelligence) Channel Partner Reviews Feedback Loop Consequence Management (see slide # 6) Corporate Overview April 2010

Sales Operations - Supply Chain Process Automation By Mike Ruggiero

Product Production Scenario Planning © Seagate Confidential

Model Highlights The application was developed to enable scenario planning for next quarter Glass Media and Effective Test Time* constraints Developed models to maximize profit for both 2.5” products (glass media supply constraint) and 3.5” products (test time constraint) Demand Plan input: Rev Plan from Dec/Jan Outlook/Manu forecast Pricing input: Rev Plan from Dec/Jan Outlook Cost input: CMC Update from PLM Media and Effective Test time constraint data from Factory POR (Plan of Record) Customer Priority from PLM ESG uses dedicated Gemini while NSG and PSG share the remaining Gemini resource Goal: Work with PLM to analyze different fulfillment opportunities for customer-product-linearity decisions that maximize profit Ability to rapidly alternate between different cost (Std/CMC/TVC/MLB) and pricing measures (ASP/AUP) Quickly alter customer and product attribute priorities * Effective test time = Test Time / Yield © Seagate Confidential

Scenario Modeling Application Supply Constraints Seagate Confidential © Seagate Confidential

Scenario Modeling Application Constraints Objective: Max Profit Standard Margin*Allocation Qty Manipulate Variables Seagate Confidential © Seagate Confidential

Manu Forecast Model Results Manu forecast is higher than previous outlooks OL1: 3.4M OL2: 4.5M Cur FW Manu: 7.9M 2.5” Glass media was constrained for the quarter Supply for ESG and NSG = 1.2M discs Demand for ESG and NSG =1.25M discs Baseline Scenario (Retail = 100% ; all others filled based on profit margins) ESG fulfilled 100%, NSG Wyatt XXXgb was unfulfilled due to lower margins Min customer fulfill scenario (Priority = 100%, Opportunistic = 85%, Others = 50%) Minimum requirements exceeded supply 3.5” Test time was constrained for the quarter for NSG/PSG ESG test times were unconstrained in all months NSG/PSG were constrained in all months. By June was constrained by 10% of total demand © Seagate Confidential

HeatMap – DSI Allocation Tool Hub Inventory & Buffer Targets © Seagate Confidential

HeatMap – Objective Granularity: per Customer, per tab number (9-digit) Correlate Future Forecast (either Manu or Judged DS) to Build Plan (BP) data Determine the anticipated Ending Hub Inventory on a weekly basis Calculate the DOI (Days of Inventory) Delta, in units, available to the customer Short term projection (13 weeks) © Seagate Confidential

HeatMap – User Views & Interfaces Configure Pivot Data Main Pivot Table 2 1 Drilldown 3 Limit Query Data Configure Pivot Table © Seagate Confidential

HeatMap – Hub Inventory (CM-Customer Math) OnH Last Wk (100) InT Last AtF Last COB Last Wk (Wk 0) FC This Wk (100) BP This Wk (200) FC Next Wk (150) BP Next FC 2nd BP 2nd Current Wk (Wk 1) Next Wk (Wk 2) Wk After Next (Wk 3) . . . OnH: On-hand InT: In-transit AtF: At-Factory FC: Forecast BP: Build Plan AtF Last Wk (100) + Begin with what was at the factory (to be shipped) from COB the week before last & add-in last wk’s ending inventory Beginning Inv (200) + This wk’s inventory begins with On-Hand & In Transit from COB the previous Friday BP This Wk (200) + Begin with the build from the week before last & add-in last wk’s ending inventory Begin with Known Dedicated Product As well as Future Demand & Supply Estimates Now lets calculate the wk-to-wk Ending Inventory The remaining wks are calculated the same as wk-3 Hub Inventory Beginning Inv (100) + FC This Wk (100) - FC Next Wk (150) - Begin Inv (50) + . . . FC 2nd Wk (200) - Take away this weeks demand (FC) and what’s left is ending inventory Ending Inv (100) = Take away this wk’s demand & what’s left is ending inventory Take away this wks demand & what’s left is ending inventory. End Inv (50) = End Inv (50) = © Seagate Confidential

HeatMap – Hub Inventory (Seagate Math) COB Last Wk (Wk 0) Current Wk (Wk 1) Next Wk (Wk 2) OnH Last Wk (100) FC This Wk (100) FC Next Wk (150) OnH: On-hand InT: In-transit AtF: At-Factory FC: Forecast BP: Build Plan . . . InT Last Wk (100) BP This Wk (200) BP Next Wk (150) AtF Last Wk (100) Start with last week’s ending inventory Add this week’s build, Subtract this week’s forecast Beginning Inv (300) + + FC Next Wk (150) - BP Next Beginning Inv (400) Ending = Hub Inventory . . . Start with all of WWFGI from previous week FC This Wk (100) - Ending Inv (400) = BP This Wk (200) + Add this weeks build Subtract this weeks forecast, what’s left is ending inventory © Seagate Confidential

HeatMap – Hub Inventory (IM-Intermediate Math) OnH Last Wk (100) InT Last AtF Last COB Last Wk (Wk 0) Current Wk (Wk 1) Next Wk (Wk 2) Wk After Next (Wk 3) FC This Wk (100) FC Next Wk (150) FC 2nd Wk (200) OnH: On-hand InT: In-transit AtF: At-Factory FC: Forecast BP: Build Plan . . . BP This Wk (200) BP Next Wk (150) BP 2nd Wk (100) Hub Inventory Beginning Inv (200) + Beginning Inv (100) + FC Next Wk (150) - End Inv (50) = BP Last Wk (200) + End Inv (50) = Begin Inv (50) FC Wk (200) - BP Last Wk (150) . . . First week’s inventory begins with everything in WWFGI from previous Friday’s COB FC This Wk (100) - Add last week’s build to last wk’s ending inventory, subtract this week’s forecast and … you get the picture Ending Inv (100) = Take away this week’s forecast, what’s left is ending inventory © Seagate Confidential

HeatMap – Database © Seagate Confidential

DFAT – Disti Forecasting Analysis Tool © Seagate Confidential

Objectives Analysis of distribution forecasts with respect to business goals, backlog and supply Entry of distribution forecast and opportunity data into the Manugistics (Manu) data repository Analysis and entry are performed for all region sub- groups across all market segments Analysis updates must be completed within one day for both current quarter and next quarter © Seagate Confidential

Tool Components User Instrument SMC Loader Correlates FCST and Opportunity with Supply and Backlog Facilitates entry of forecast quantities Creates CSV file for use with the loader SMC Loader Provides mechanism for batch loading Manu data Quantities loaded by Sub-group, PSP, PN and Fiscal week © Seagate Confidential

DFAT- Goals Incorporate current, company supported data Improve analysis of forecast data, including supply component Simplify the build of the user instrument Provide rapid and accurate updating of forecast and opportunity values Provide integrated end-to-end process including report generation of results © Seagate Confidential

DFAT - Improve forecast analysis Assemble all relevant data sets in one place Ability to compare forecasts to available supply and identify opportunities for revenue improvement Ability to rapidly identify gaps between forecast and backlog Built-in linearity analysis, by week and month Automated algorithms for roll-forward of weekly forecast misses © Seagate Confidential

DFAT - Rapid and accurate analysis © Seagate Confidential

DFAT –Single Build, Wham-whams © Seagate Confidential

DFAT - Time, Accuracy, Output Improvement Able to match regional forecast to supply/backlog on a weekly basis Includes Opportunity complexity not in original process Initially possible once or twice a quarter and took 2-days to complete © Seagate Confidential

Logistics Freight Estimator © Seagate Confidential

Logistics Freight Estimator Goal: Ability to estimate freight cost per drive by customer and product © Seagate Confidential

Logistics Freight Estimator - Shipment Summary by Carrier Code Freight Carrier Code Total Gross Units Shipment % UPSSCS (CONSOLIDATION) 9,562,079 54% DHL DANZAS (CONSOLIDATION) 3,735,278 21% Feili-TL-Ground 1,955,757 11% UPSSCS (DEFERRED) 730,440 4% DHL DANZAS (DEFERRED) 687,609 BIFORST LOGISTICS 448,911 3% UPSSCS (OCEAN) 180,000 1% UPS FWDG-LTL-GROUND 177,480 CTS 95,810 KWEI 77,306 0% UPS CVEN-FTL-GROUND 26,360 UPS CRPS-FTL-GROUND 10,000 JIT PULL 8,425 UPS FWDG-AIR-2 DAY 2,960 UPS EXPRESS 1,963 UPS FWDG-FTL-GROUND 900 INTEGRATED SHUN HING LOGISTICS 880 SHANGHAI LONG DISTANCE Ground 780 UPSSCS (EXPRESS) 540 UPS CNWY-LTL-GROUND 310 UPS 2DAY PM 240 DHL DANZAS (OCEAN) 250 DHL DANZAS (EXPRESS) 396 Others (17) 2,633 Total Q2 17,707,307 100% Inclusion Q2 17,302,037 98% © Seagate Confidential