DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(in millions, except percentages; unaudited)

Three Months Ended

Nine Months Ended

November 3, 2017

October 28, 2016

Change

November 3, 2017

October 28, 2016

Change

Net revenue

$                   19,610

$                   16,247

21 %

$                   56,725

$                   41,568

36 %

Non-GAAP adjustments:

Impact of purchase accounting

295

530

985

673

Non-GAAP net revenue

$                   19,905

$                   16,777

19 %

$                   57,710

$                   42,241

37 %

Gross margin

$                     5,163

$                     3,899

32 %

$                   14,274

$                     8,428

69 %

Non-GAAP adjustments:

Impact of purchase accounting

307

729

1,020

897

Amortization of intangibles

914

604

2,784

806

Transaction-related expenses

5

30

22

25

Other corporate expenses

28

62

63

68

Non-GAAP gross margin

$                     6,417

$                     5,324

21 %

$                   18,163

$                   10,224

78 %

Operating expenses

$                     5,696

$                     5,411

5 %

$                   17,286

$                   10,012

73 %

Non-GAAP adjustments:

Impact of purchase accounting

(59)

(121)

(175)

(157)

Amortization of intangibles

(820)

(560)

(2,466)

(1,340)

Transaction-related expenses

(81)

(1,170)

(393)

(1,304)

Other corporate expenses

(305)

(211)

(824)

(257)

Non-GAAP operating expenses

$                     4,431

$                     3,349

32 %

$                   13,428

$                     6,954

93 %

Operating loss

$                      (533)

$                   (1,512)

65 %

$                   (3,012)

$                   (1,584)

(90)%

Non-GAAP adjustments:

Impact of purchase accounting

366

850

1,195

1,054

Amortization of intangibles

1,734

1,164

5,250

2,146

Transaction-related expenses

86

1,200

415

1,329

Other corporate expenses

333

273

887

325

Non-GAAP operating income

$                     1,986

$                     1,975

1 %

$                     4,735

$                     3,270

45 %

Net loss from continuing operations

$                      (941)

$                   (1,637)

43 %

$                   (3,302)

$                   (2,323)

(42)%

Non-GAAP adjustments:

Impact of purchase accounting

366

850

1,195

1,054

Amortization of intangibles

1,734

1,164

5,250

2,146

Transaction-related expenses

86

1,200

415

1,326

Other corporate expenses

333

273

887

325

Aggregate adjustment for income taxes

(469)

(880)

(1,882)

(932)

Non-GAAP net income from continuing operations

$                     1,109

$                        970

14 %

$                     2,563

$                     1,596

61 %

Net loss from continuing operations

$                      (941)

$                   (1,637)

43 %

$                   (3,302)

$                   (2,323)

(42)%

Adjustments:

Interest and other, net

682

794

1,800

1,362

Income tax benefit

(274)

(669)

(1,510)

(623)

Depreciation and amortization

2,137

1,576

6,491

2,799

EBITDA

$                     1,604

$                          64

NM

$                     3,479

$                     1,215

186 %

EBITDA

$                     1,604

$                          64

NM

$                     3,479

$                     1,215

186 %

Adjustments:

Stock-based compensation expense

221

144

630

177

Impact of purchase accounting

298

693

990

851

Transaction-related expenses

86

1,200

415

1,366

Other corporate expenses

109

129

237

148

Adjusted EBITDA

$                     2,318

$                     2,230

4 %

$                     5,751

$                     3,757

53 %