DELL TECHNOLOGIES INC.

Condensed Consolidated Statements of Cash Flows

(in millions; unaudited)

Three Months Ended

May 1, 2020

May 3, 2019

Cash flows from operating activities:

Net income

$

182

$

329

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

(978)

353

Change in cash from operating activities

(796)

682

Cash flows from investing activities:

Purchases of investments

(56)

(38)

Maturities and sales of investments

39

337

Capital expenditures and capitalized software development costs

(559)

(716)

Acquisition of businesses and assets, net

(38)

(45)

Divestitures of businesses and assets, net

120

(3)

Other

9

7

Change in cash from investing activities

(485)

(458)

Cash flows from financing activities:

Proceeds from the issuance of common stock

116

134

Repurchases of parent common stock inclusive of tax withholdings

(240)

(6)

Repurchases of subsidiary common stock inclusive of tax withholdings

(300)

(803)

Proceeds from debt

10,135

9,563

Repayments of debt

(5,405)

(9,569)

Other

(42)

(38)

Change in cash from financing activities

4,264

(719)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(136)

(36)

Change in cash, cash equivalents, and restricted cash

2,847

(531)

Cash, cash equivalents, and restricted cash at beginning of the period

10,151

10,240

Cash, cash equivalents, and restricted cash at end of the period

$

12,998

$

9,709

DELL TECHNOLOGIES INC.

Segment Information

(in millions, except percentages; unaudited; continued on next page)

Three Months Ended

May 1, 2020

May 3, 2019

Change

Infrastructure Solutions Group (ISG):

Net Revenue:

Servers and networking

$

3,758

$

4,180

(10)

%

Storage

3,811

4,022

(5)

%

Total ISG net revenue

$

7,569

$

8,202

(8)

%

Operating Income:

ISG operating income

$

732

$

843

(13)

%

% of ISG net revenue

10

%

10

%

% of total reportable segment operating income

35

%

38

%

Client Solutions Group (CSG):

Net Revenue:

Commercial

$

8,634

$

8,307

4

%

Consumer

2,470

2,603

(5)

%

Total CSG net revenue

$

11,104

$

10,910

2

%

Operating Income:

CSG operating income

$

592

$

793

(25)

%

% of CSG net revenue

5

%

7

%

% of total reportable segment operating income

28

%

36

%

VMware (a):

Net Revenue:

Total VMware net revenue

$

2,755

$

2,457

12

%

Operating Income:

VMware operating income

$

773

$

595

30

%

% of VMware net revenue

28

%

24

%

% of total reportable segment operating income

37

%

27

%

(a)

During the fourth quarter of Fiscal 2020, the Company reclassified Pivotal operating results from Other businesses to the VMware reportable segment.  There was no change to consolidated results as a result of the reclassification.  Prior period results have been recast to conform with current period presentation.