DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(in millions, except percentages; unaudited)

Three Months Ended

May 4, 2018

May 5, 2017

Change

Net revenue

$                   21,356

$                   18,000

19 %

Non-GAAP adjustments:

     Impact of purchase accounting

187

355

     Non-GAAP net revenue

$                   21,543

$                   18,355

17 %

Gross margin

$                     5,878

$                     4,457

32 %

Non-GAAP adjustments:

     Amortization of intangibles

710

950

     Impact of purchase accounting

193

365

     Transaction related

116

7

     Other corporate expenses

22

22

     Non-GAAP gross margin

$                     6,919

$                     5,801

19 %

Operating expenses

$                     6,031

$                     5,729

5 %

Non-GAAP adjustments:

     Amortization of intangibles

(812)

(826)

     Impact of purchase accounting

(29)

(58)

     Transaction related

(50)

(184)

     Other corporate expenses

(247)

(285)

     Non-GAAP operating expenses

$                     4,893

$                     4,376

12 %

Operating loss

$                      (153)

$                   (1,272)

88 %

Non-GAAP adjustments:

     Amortization of intangibles

1,522

1,776

     Impact of purchase accounting

222

423

     Transaction related

166

191

     Other corporate expenses

269

307

     Non-GAAP operating income

$                     2,026

$                     1,425

42 %

Net loss

$                      (538)

$                   (1,203)

55 %

Non-GAAP adjustments:

     Amortization of intangibles

1,522

1,776

     Impact of purchase accounting

222

423

     Transaction related

166

191

     Other corporate expenses

269

307

     Aggregate adjustment for income taxes

(467)

(733)

     Non-GAAP net income

$                     1,174

$                        761

54 %

Net loss

$                      (538)

$                   (1,203)

55 %

Adjustments:

     Interest and other, net

470

572

     Income tax benefit

(85)

(641)

     Depreciation and amortization

1,914

2,212

     EBITDA

$                     1,761

$                        940

87 %

EBITDA

$                     1,761

$                        940

87 %

Adjustments:

     Stock-based compensation expense

199

201

     Impact of purchase accounting

222

357

     Transaction-related expenses

166

191

     Other corporate expenses

35

106

     Adjusted EBITDA

$                     2,383

$                     1,795

33 %