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Table A Market Share in the Worldwide Disk Drive Industry, 1999
Total Marketa
Source: “Disk Drive Quarterly Report” (March 2000) by Salomon Smith Barney.
aIncludes mobile.
bAmount is not material.
Enterprise Desktop
0.41 0.211
7.2 20.5
34.6 6.1
b 17.7
8.8 12.4
3.8 14.6
b 7.5
7438 14627
Exhibit 1 Worldwide Hard Disk Drive Industry Historical Performance and Projections, 1991-2003E
Source: Computer Industry Abstracts (various issues) and “Disk Drive Quarterly Report” (June 1999) by Salomon Smith Barney.
1995 1996 1997 1998 1999 2000E 2001E 2002E 2003E
Seagate
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
1265.97 1371.57 2413.18 2676.98 2875.27 3043.6 3500.1 4539.57 8588.35 8940.02
32% 8% 76% 11% 7% 6% 15% 30% 89% 4%
150.77 90.97 297.24 255.57 309.04 439.05 449.17 629.85 1004.53 1521.03
12% 7% 12% 10% 11% 14% 13% 14% 12% 17%
100.4 12.96 179.32 117.31 139.91 284.03 310.96 442.98 627.38 1019.83
8% 1% 7% 4% 5% 9% 9% 10% 7% 11%
1093.95 1076.77 1851.46 1880.06 1816.6 2031.19 2877.53 3361.26 5239.64 6722.88
50.37 78.02 117.91 138.26 169.13 155.02 138.21 186.86 377.15 501.2
284.41 78.09 102.38 90.87 90.66 173.57 197.68 353.43 906.94 890.46
28% 29% 31% 23% 18% 14% 19% 16% 15% 10%
20% 24% 28% 27% 16% 14% 18% 12% 11% 6%
20% 11% 17% 9% -10% -17% -27% -21% -7% -24%
14% 9% 15% 11% -9% -17% -26% -15% -5% -13%
6.88 3.77 6.1 6.01 9.09 18.67 17.05 19.11 17.99 43.66
4.58 0.54 3.68 2.76 4.11 12.08 11.81 13.44 11.24 29.27
6% 7% 10% 9% 9% 4% 3% 5% 7% 9%
2% 5% 6% 4% 6% 0% -2% 2% 4% 8%
12% 13% 10% 13% 16% 19% 12% 10% 13% 6%
8% 8% 9% 8% 16% 13% 7% 3% 4% 1%
0% -5% -7% 2% -1% -9% -4% -8% -6% -21%
-3% -2% -4% -1% -3% -3% -2% -3% -5% -8%
8.15 5.74 6.03 4.06 9 4.38 5.58 3.59 7.06 13
4.58 2.71 3.3 1.55 4.31 -0.05 0.37 1.84 5.04 8.52
1998 1999
6819 6802
-24% 0% 1137%
451 1011
7% 15% 239%
-138 398
-2% 6% 153%
5645 7072
589 613
709 603
12% 10%
8% 8%
-20% -13%
-13% -10%
8.84 20.25
-2.71 8.29
6% 6%
-1% 1%
14% 9%
7% 4%
-9% -23%
-5% -5%
4.2 -0.09
-2.04 -2.91
Exhibit 3 Summary Financial Data on Publicly Traded Hard Disk Drive Manufacturers
ration, containing just the hard disk drive operations. As a result, there is no information on historical stock prices or market capitalization,
prices or market capitalization, prior to that date.
Exhibit 5 Summary Financial Data on VERITAS Software
VERITAS Software
Dec96 Dec97 Dec98
Source: Casewriters’ estimates based on revenues and EBITA projections contained in SEC filings.
aThe “downside case” is based on the “buyer case” described in the first VERITAS and Seagate Joint Proxy Statement/Prospectu
Base Case 1 7417 8564 9504 10416
Upside 2 8185 10146 11283 12626
Downside 3 7393 7797 8310 8801
EBIT Interest Coverage 17.5x 10.8x 6.8x 3.9x 2.3x 1.0x 0.2x
Total Debt as % of Market Cap.A 0.037 0.092 0.164 0.304 0.475 0.593 0.743
TV
Discounted Values 39.84262 70.3928411 123.604128 251.104143 206.028081
Value 7161.462
Outstanding Shares 227.2 14597.6
1869.68582
213.085712 132.116436 4255.601716