DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(in millions, except percentages; unaudited)

Three Months Ended

Fiscal Year Ended

February 3, 2017

January 29, 2016

Change

February 3, 2017

January 29, 2016

Change

Net revenue

$                 20,074

$                  12,679

58 %

$                 61,642

$                  50,911

21 %

 Non-GAAP adjustments:

 Impact of purchase accounting

507

89

1,180

459

Non-GAAP net revenue

$                 20,581

$                  12,768

61 %

$                 62,822

$                  51,370

22 %

Gross margin

$                   4,531

$                    2,254

101 %

$                 12,959

$                    8,387

55 %

 Non-GAAP adjustments:

 Impact of purchase accounting

1,110

104

2,007

512

 Amortization of intangibles

847

97

1,653

392

 Transaction-related expenses

18

—

43

6

 Other corporate expenses

89

3

157

10

Non-GAAP gross margin

$                   6,595

$                    2,458

168 %

$                 16,819

$                    9,307

81 %

Operating expenses

$                   6,199

$                    2,280

172 %

$                 16,211

$                    8,901

82 %

 Non-GAAP adjustments:

 Impact of purchase accounting

(130)

(25)

(287)

(92)

 Amortization of intangibles

(688)

(394)

(2,028)

(1,577)

 Transaction-related expenses

(141)

(42)

(1,445)

(103)

 Other corporate expenses

(488)

(16)

(745)

(47)

Non-GAAP operating expenses

$                   4,752

$                    1,803

164 %

$                 11,706

$                    7,082

65 %

Operating loss

$                 (1,668)

$                       (26)

NM

$                 (3,252)

$                     (514)

(533)%

 Non-GAAP adjustments:

 Impact of purchase accounting

1,240

129

2,294

604

 Amortization of intangibles

1,535

491

3,681

1,969

 Transaction-related expenses

159

42

1,488

109

 Other corporate expenses

577

19

902

57

Non-GAAP operating income

$                   1,843

$                       655

181 %

$                   5,113

$                    2,225

130 %

Net loss from continuing operations

$                 (1,414)

$                     (168)

(742)%

$                 (3,737)

$                  (1,168)

(220)%

 Non-GAAP adjustments:

 Impact of purchase accounting

1,240

129

2,294

604

 Amortization of intangibles

1,535

491

3,681

1,969

 Transaction-related expenses

159

42

1,485

83

 Other corporate expenses

577

19

902

77

 Aggregate adjustment for income taxes

(1,006)

(131)

(1,938)

(512)

Non-GAAP net income from continuing operations

$                   1,091

$                       382

186 %

$                   2,687

$                    1,053

155 %

Net loss from continuing operations

$                 (1,414)

$                     (168)

(742)%

$                 (3,737)

$                  (1,168)

(220)%

 Adjustments:

 Interest and other, net

742

172

2,104

772

 Income tax benefit

(996)

(30)

(1,619)

(118)

 Depreciation and amortization

2,041

623

4,840

2,494

EBITDA

$                      373

$                       597

(38)%

$                   1,588

$                    1,980

(20)%

EBITDA

$                      373

$                       597

(38)%

$                   1,588

$                    1,980

(20)%

 Adjustments:

 Stock-based compensation expense

215

17

392

63

 Impact of purchase accounting

1,075

95

1,926

487

 Transaction-related expenses

159

42

1,525

83

 Other corporate expenses

362

2

510

20

Adjusted EBITDA

$                   2,184

$                       753

190 %

$                   5,941

$                    2,633

126 %