DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(in millions, except percentages; unaudited)

Three Months Ended

Fiscal Year Ended

February 2, 2018

February 3, 2017

Change

February 2, 2018

February 3, 2017

Change

Net revenue

$                   21,935

$                   20,074

9 %

$                   78,660

$                   61,642

28 %

Non-GAAP adjustments:

  Impact of purchase accounting

284

507

1,269

1,180

  Non-GAAP net revenue

$                   22,219

$                   20,581

8 %

$                   79,929

$                   62,822

27 %

Gross margin

$                     5,780

$                     4,531

28 %

$                   20,054

$                   12,959

55 %

Non-GAAP adjustments:

  Amortization of intangibles

910

847

3,694

1,653

  Impact of purchase accounting

292

1,110

1,312

2,007

  Transaction-related expenses

2

18

24

43

  Other corporate expenses

38

89

101

157

  Non-GAAP gross margin

$                     7,022

$                     6,595

6 %

$                   25,185

$                   16,819

50 %

Operating expenses

$                     6,101

$                     6,199

(2)%

$                   23,387

$                   16,211

44 %

Non-GAAP adjustments:

  Amortization of intangibles

(820)

(688)

(3,286)

(2,028)

  Impact of purchase accounting

(59)

(130)

(234)

(287)

  Transaction-related expenses

(85)

(141)

(478)

(1,445)

  Other corporate expenses

(235)

(488)

(1,059)

(745)

  Non-GAAP operating expenses

$                     4,902

$                     4,752

3 %

$                   18,330

$                   11,706

57 %

Operating loss

$                      (321)

$                   (1,668)

81 %

$                   (3,333)

$                   (3,252)

(2)%

Non-GAAP adjustments:

  Amortization of intangibles

1,730

1,535

6,980

3,681

  Impact of purchase accounting

351

1,240

1,546

2,294

  Transaction-related expenses

87

159

502

1,488

  Other corporate expenses

273

577

1,160

902

  Non-GAAP operating income

$                     2,120

$                     1,843

15 %

$                     6,855

$                     5,113

34 %

Net loss from continuing operations

$                      (553)

$                   (1,414)

61 %

$                   (3,855)

$                   (3,737)

(3)%

Non-GAAP adjustments:

  Amortization of intangibles

1,730

1,535

6,980

3,681

  Impact of purchase accounting

351

1,240

1,546

2,294

  Transaction-related expenses

87

159

502

1,485

  Other corporate expenses

273

577

1,160

902

  Aggregate adjustment for income taxes

(791)

(1,006)

(2,673)

(1,938)

  Non-GAAP net income from continuing operations

$                     1,097

$                     1,091

1 %

$                     3,660

$                     2,687

36 %

Net loss from continuing operations

$                      (553)

$                   (1,414)

61 %

$                   (3,855)

$                   (3,737)

(3)%

Adjustments:

  Interest and other, net

555

742

2,355

2,104

  Income tax benefit

(323)

(996)

(1,833)

(1,619)

  Depreciation and amortization

2,143

2,041

8,634

4,840

  EBITDA

$                     1,822

$                        373

388 %

$                     5,301

$                     1,588

234 %

EBITDA

$                     1,822

$                        373

388 %

$                     5,301

$                     1,588

234 %

Adjustments:

  Stock-based compensation expense

205

215

835

392

  Impact of purchase accounting

284

1,075

1,274

1,926

  Transaction-related expenses

87

159

502

1,525

  Other corporate expenses

68

362

305

510

  Adjusted EBITDA

$                     2,466

$                     2,184

13 %

$                     8,217

$                     5,941

38 %