Flash Memory: Driving Change

Sanjay Mehrotra

President & CEO March 1, 2013

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Forward-Looking Statements

During our meeting today we may make forward looking statements.

Any statement that refers to expectations, projections or other characterizations of

future events or circumstances is a forward looking statement, including those

relating to market growth, product sales, industry trends, future memory

technology, production capacity and technology transitions and future products.

This presentation contains information from third parties which reflect their

projections as of the date of issuance.

Actual results may differ materially from those expressed in these forward looking

statements due to factors detailed under the caption “Risk Factors” and elsewhere

in the documents we file from time to time with the SEC, including our annual and

quarterly reports.

SanDisk undertakes no obligation to update the forward-looking statement in this

presentation.

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“The biggest risk in life is

not taking any risks at all.”

− Unknown

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From the Beginning

1980 1988 1991

SanDisk introduces 20MB SSD

SanDisk founded

Eli Harari Sanjay Mehrotra Jack Yuan

Dr. Masuoka invents Flash

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The SanDisk Advantage

World Smallest 128Gb Chip

in Production

50k TIMES DECREASE

COST

30k TIMES INCREASE

CAPACITY

Heritage of Innovation

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Disruption

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2000 2012

Photography

Digital

Analog

Source: Photo Marketing Association

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Storage

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Enterprise Data Center

Industries Being Disrupted Now

Tablets & Ultrabooks

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Adding Enterprise Flash HDDs Alone

Flash Memory Transforms the Enterprise

Dramatic efficiency and cost improvements drive down TCO

Growing ecosystem of flash-accelerated HW and SW products provide new partnership opportunities

Slower bandwidth and latency

Higher footprint, power and cooling costs

Enterprise

Flash

Transformation

Intelligent

Caching SW

Faster I/O performance

Lower system cost $/GB

Improved reliability

Increased capacity with a smaller footprint

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Our Path…

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Enriching People‟s Lives Through Digital Storage Anytime, Anywhere

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Digital Cameras

USB Flash Drives

A/V Players,

Gaming & Navigators

Mobile Phones

Tablets Solid State Drives

Internet Enabled

TV, Set Top

Box

2016

Unit

TAM

Massive Flash Adoption in CE, Mobile, Computing

Source: Gartner Sep, 2012 - Forecast: Semiconductor Consumption by Electronic Equipment Type, Worldwide, 4Q12 Update

Forecasted production in 2016

132M 333M 196M 2,225M 390M 201M 339M

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Mobile

Massive Flash Memory Adoption in CE, Mobile & Computing

Consumer Computing

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A Global Leader in Flash Memory Storage Solutions

*Net Cash = [Cash + cash equivalents + short-term & long-term marketable securities] less [debt at maturity value] as of the end of FY „12. Headcount at end of Q3, ‟12.

°Gartner Forecast: NAND Flash Supply and Demand, Worldwide, 1Q „11-4Q „13, 3Q „12 Update, Dec., „12. NPD Estimate, Jan., „13. Estimates of the memory card & USB markets

from NPD (Jan. „13) and GfK Retail and Technology, Oct. „12

Global Retail Share Leader 1 Out of 2 Cards Sold in the U.S.

The Leading Retail Brand in Key Markets

Million+ Units Shipped Daily 2

Key Financials FY2012

Technology Leadership Global Operations

4,500+ Employees

Rankings

$5.1B Revenue

$3.8B Net Cash*

$600M Annual R&D

Investment

Fabs World Class NAND Capacity

19nm Leading Memory

Process Node

4,400+ Patents

4 of the Top 7 Storage OEMs are SanDisk Customers

Enterprise, Client and Retail SSDs

SanDisk Client SSD Design Wins at

10 Leading PC OEMs

Close to Half of Industry Bit Output Together with Manufacturing Partner Toshiba°

All Leading Handset & Tablet Manufacturers Use SanDisk

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SanDisk & Toshiba Produce Nearly 50% of World’s Flash Memory Bit Supply

Source: Forecast: NAND Flash Supply and Demand, Worldwide, 1Q11-4Q13, 4Q12 Update.- December 2012

21%

25%

29%

12%

4% 9% SanDisk

Toshiba

Samsung

Micron

Intel

Hynix

Others

Bit Shares 2012

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Commitment to India

Offices in Bangalore since 2005

Approx. 350 employees

Activities include IT and R&D • Hardware and software,

ASIC, firmware, memory

Partnerships with leading distributors

2,000+ city distributors; products sold in approx. 400 cities

#1 brand in India

Actively involved in Corporate Social Responsibility programs

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What‟s Next?

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Key Secular Trends

Content Mobility Connectivity Demand for Flash

More Powerful Mobile Devices

More Responsive Data Centers

Growth to 34GB Average Per Device By 2016

2.8ZB of Content In 2012*

* IDC “THE DIGITAL UNIVERSE IN 2020: Big Data, Bigger Digital Shadows, and Biggest Growth in the Far East”, Dec., „12.

SanDisk estimates and Gartner: Forecast: NAND Flash Supply and Demand, Worldwide, 1Q ‟11- 4Q‟ 13, Dec. „12. Only includes devices with 1GB capacity or

more as of 2012.

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Content

2.8ZB of Content In 2012*

The Content Explosion

0

1

2

3

4

5

6

7

8

9

ZB of Digital Content

2010

2012

2015

A Zetabyte** is a trillion gigabytes—a 1 with 21 zeroes!

*IDC “THE DIGITAL UNIVERSE IN 2020: Big Data, Bigger Digital Shadows, and Biggest Growth in the Far East”, Dec., „12.

SanDisk estimates and Gartner: Forecast: NAND Flash Supply and Demand, Worldwide, 1Q ‟11- 4Q‟ 13, Dec. „12. Only includes devices with 1GB capacity or more

as of 2012. **A Zetabyte is a trillion gigabytes; 1GB = 1,000,000,000bytes. Actual user storage is less.

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Mobility

More Powerful Mobile Devices

* IDC research data as appeared in New York Times Article “Cloud Computing as a Threat to Older Tech Companies”, December, 2011. SanDisk estimates and Gartner forecast: analysis – NAND Flash Update, 1Q‟12, March, 2012. Only

includes devices with 1GB capacity or more as of 2012

Connected Freedom

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Performance, Analytics and Big Data

Connectivity

More Responsive Data Centers

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2020 Vision—Era of Terabit Memories

3D Memories will be the future • 3D R/W 1Tb – 4Tb memories in production in 2020

Memory cost down to pennies / GB through technology advancements

Petabytes in your pocket…Exabytes in the cloud

Flash memory ever more pervasive

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“ It is not necessary to change.

Survival is not mandatory.”

− W. Edwards Deming

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Questions and Answers

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© 2013 SanDisk Corporation. All rights reserved. SanDisk, SanDisk Ultra, SanDisk

Extreme, SanDisk Extreme Pro and Sansa are trademarks of SanDisk Corporation,

registered in the United States and other countries. SanDisk iSSD and iNAND Extreme

are trademarks of SanDisk Corporation. FlashSoft and Schooner Information Technology

are trademarks of SanDisk Enterprise IP LLC. All other brand names mentioned herein

are for identification purposes only and may be the trademarks of their respective

holder(s).

1 gigabyte (GB)=1 billion bytes. Some capacity not available for data storage. 1 megabyte

(MB)=1 million bytes. Performance may vary based on host device.