© 2013 HGST, INC.

Brendan CollinsVP, Product Marketing

Lighten Your Data Center TCO With

“Helium” Storage Solutions

2© 2013 HGST, INC.

Forward Looking StatementThis presentation contains forward-looking statements that involve risks and uncertainties, including, but not limited to, the development

and adoption of a new storage architecture and the potential introduction of products based on this architecture. Forward-looking

statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the

times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are subject to risks and

uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-

looking statements.

Additional key risks and uncertainties include the impact of continued uncertainty and volatility in global economic conditions; actions by

competitors, business conditions and growth in the various hard drive segments. More information about the other risks and uncertainties

that could affect our business are listed in our filings with the Securities and Exchange Commission (the “SEC”) and available on the

SEC’s website at www.sec.gov, including our Quarterly Report on Form 10-Q filed with the SEC on May 5, 2014, to which your attention is

directed. We do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new

information, future developments or otherwise, except as otherwise required by law.

This presentation contains financial measures defined as non-GAAP by the SEC. We believe that certain non-GAAP financial measures,

when presented in conjunction with comparable GAAP (Generally Accepted Accounting Principles) measures, are useful because that

information is an appropriate measure for evaluating our operating performance. Non-GAAP information is used to evaluate business

performance and management's effectiveness. These measures should be considered in addition to, not as a substitute for, or superior

to, measures of financial performance prepared in accordance with GAAP. Non-GAAP financial measures may not be calculated in the

same manner by all companies and therefore may not be comparable.

3© 2013 HGST, INC.

Overview

Market & Technology Challenges

HelioSeal™ Technology Platform

First Helium-Based Product – Ultrastar® He6

Storage Platform for the Future

4© 2013 HGST, INC.

Market Drivers Technology Challenges

Explosive Storage Growth

Data Center TCO Challenges

Cold Storage Opportunity

Areal Density Slow Down

Track Mis-Registration

Future Design Limitations

5© 2013 HGST, INC.

Requires New Innovative and Differentiated Solutions

Flat IT Budgets

Enterprise Capacity

Cooler Storage

Enterprise StorageAnnual Growth~50%

Market DriversExplosive Data Growth

2012 2020

6© 2013 HGST, INC.

Equipment Acquisition Costs Server and Storage Density Power Consumption Cooling Costs Cost Efficient Bulk Storage

Solutions Efficient cooling for ultra-high

density server racks and modular datacenters

Market DriversData Center TCO Challenges

7© 2013 HGST, INC.

Market DriversCold Storage Opportunity

“Unstored” DataOver 4x+ more content is created than is stored on digital media.

Source: IDC

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2008 2009 2010 2011 2012 2013 2014 2015

A ll O ther S to rage M ed ia

En terp rise D isk and Tape

C reated Conten t

Exa b ytes

8© 2013 HGST, INC.

2012 2013 2014 2015 2016 2017 2018 2019 20200

1,000

2,000

3,000

4,000

5,000

EB

HDD Exabyte Outlook: CAGR 35%

Areal Density Progress

HAMR

15% CAGR

25-30% CAGR

Gap

Technology Challenges:Areal Density Slow Down

Slow Areal Density growth not keeping pace with Exabyte Demand creating opportunity for differentiation

9© 2013 HGST, INC.

Air – 5 DiskO

N Nitrogen

Oxygen

AirO

NON

Disk RotationDisk Flutter

&Vibration

Technology Challenges:Track Mis-Registration

Air Turbulence and Disk Flutter Pose Challenges to Increasing Track Density

10© 2013 HGST, INC.

Technology Challenges:Future Design Constraints

5.25” Life Cycle

10-20yrs

5.25”3.5” 2.5”

2010 2011 2012 2013 2014 2015 2016

-

$/GB Conventional 2.5” (4-disk)

2X Cost/GB

Conventional 3.5” (5-disk)

2.5” Life Cycle

10+ yrs

3.5”Life Cycle

15-20 yrs

11© 2013 HGST, INC.

Technology

Innovation

Conducts Heat

Non-Toxic Secured Supply

Doesn’t React with other HDD

Components

Light(1/7th the Density of Air)

MarketDrivers

TechnologyChallenges

12© 2013 HGST, INC.

The HDD industry has spent the last 10+ years trying to harness the benefits of Helium while:

Containing Helium Leakage over Product Life

Developing High Volume, Cost

Effective Manufacturing

13© 2013 HGST, INC.

HGST has successfully developed the IP to address ‘seal proofing’ and manufacturability

14© 2013 HGST, INC.

Introducing

HelioSeal™ Technology PlatformInnovative and Patented Technology to Hermetically Seal Helium in the HDD

15© 2013 HGST, INC.

HelioSeal™ Technology Enables

3.5” Form Factor

Extension for

10+ Years

System Level TCO Reduction

- Power

- Cooling

- Density

Emerging Liquid Cooling Applications

Complementary Integration with

Future Technologies(SMR, HAMR)

Design Flexibility for

Emerging Cold StorageSystems

16© 2013 HGST, INC.

2012 2013 2014 2015 2016 2017 2018 2019 20200

1,000

2,000

3,000

4,000

5,000

EB

HDD Exabyte Outlook: CAGR 35%

Areal Density Progress15%

CAGR

25-30% CAGR

HelioSeal Addresses:Areal Density Gap Through Increased Capacity

40-50%Capacity Increase

17© 2013 HGST, INC.

~23% Mechanical

PowerSavings

Air – 5 Disk

AirO

NON

Disk Rotation Helium Reduced

Flutter

Thinner Platters

Less MotorDrag

Disk Flutter&

Vibration

Disk Rotation

O

N Nitrogen

Oxygen

Helium

4◦C cooler operation 49% reduction in watts/TB

Helium – 7 Disk

HelioSeal Addresses:Track Mis-Registration

18© 2013 HGST, INC.

5.25” Life Cycle

3.5”Life Cycle

10-20 yrs 15-20 yrs

5.25”2.5”

10+ Years Extension

2010 2011 2012 2013 2014 2015 2016

-

$/GB

Conventional 3.5” (5D)

3.5”

HelioSeal™ Technology Platform

HelioSeal Addresses:3.5” Form Factor Longevity

19© 2013 HGST, INC.

Higher Capacities

Better TCO

Emerging and future HDD technologies will be built on the HelioSeal Platform, enabling additional value

SMR

HAMR

Other Technologies

HelioSeal Complements:Future Recording Technologies

20© 2013 HGST, INC.

Other Benefits of Helium

Helium is Non-Toxic– Used by deep sea divers as a nitrogen substitute

Helium is Safe– “Less Helium in the new HDD Platform than in

birthday balloons”

– Helium is light and hard to contain— it will immediately rise to the top of the room and escape faster than Oxygen or Nitrogen

21© 2013 HGST, INC.

Helium Supply

Helium supply/demand is balanced and new sources of supply are coming on line in 2013

HDD manufacturing uses less than 1% of the helium supply, compared to the biggest gas users

One standard helium tank = 10,000 HDDs

Costs just pennies per drive

The worldwide helium supply is increasing and HGST has secured supply through long-term contracts with geographically dispersed vendors

22© 2013 HGST, INC.

Reducing CloudData Center TCO with

Ultrastar® He6

6TB

World’s First 6TB 3.5-inch Helium Drive

+50%Capacity

23%LowerPower

Worksw/ Existing

3.5”SMR/HAMRCompatible

23© 2013 HGST, INC.

Air vs. Helium HDD

Distinctively Different Look – Inside and Out

5-diskdesign

Same 1”z-height4TB 6TB

7Stac™Design

24© 2013 HGST, INC.

Reducing TCO with Ultrastar He6

TCOptimized™

Power Consumption: Watts/TB

Cooling Efficiency:

BTU/TB

Density / Footprint: TB/SqFt

Long-Term Reliability: MTBF

Acquisition Costs: $/GB

Reduced System Weight

25© 2013 HGST, INC.

Generational Improvements3TB 4TB

Capacity SustainedData Rate

Idle Power

Active Power

Acoustics Weight

+50%

-50%

33%

13%

1% 1% 0% 0%

Improved Capacity + Performance

26© 2013 HGST, INC.

Helium Benefits

Capacity SustainedData Rate

Idle Power

Active Power

Acoustics

3TB 4TB+50%

-50%

3%

23%36% 31%

6%

6TB (HelioSeal™)

50%

Weight

HelioSeal Addresses Key Data Center Pain Points (TCO)

27© 2013 HGST, INC.

Cooling Efficiency

Density/Footprint

Long-termReliability

ReducedSystem Weight

Power Consumption

AcquisitionCost

Pow

er

(Wat

t)s

Idle Power Active Power0

2

4

6

8

10

12

6.9

11.4

5.37.3

wattswatts

watts

watts

SATA HDD

USING

3.5” Ultrastar

He6

6TB HDDs

USING

3.5”Traditional

AIR

4TB HDDs

23%36%

28© 2013 HGST, INC.

Cooling Efficiency

Density/Footprint

Long-termReliability

ReducedSystem Weight

Power Consumption

AcquisitionCost

3.5”AIR

4TB HDDs

20Servers

12HDDs

/Server

14Servers

12HDDs

/Server

3.5” Ultrastar He6

6TB HDDs

Note: ~1PB = 960TB using 20x12x4TB or 14x12x6TB (with partial server)

Active Power0

2

4

6

8

10

12

11.4

7.3

SATA HDD Level

watts

watts

Active Power0

0.5

1

1.5

2

2.5

3

3.5

4

2.7

1.2KW

KW

SATA Rack Level

wat

ts

wat

ts36%

57%

29© 2013 HGST, INC.

CABLESFLOOR SPACEPOWERHDDsEnclosures

4TB 3.5”Conventional HDDs

6TB 3.5”Ultrastar® He6 HDDs

240 2,880 98.4KW 192sqft >500

160 1,920 62.4KW 128sqft >350

Ultrastar He6 6TB Reduces TCO (11 PBs)

Using 3.5”Traditional 4TB HDDs

8 RACKSUsing 3.5”

Ultrastar® He6 6TB HDDs

37% less power(HDD + Server)

33% less space

Less Complexity

12 RACKS

30© 2013 HGST, INC.

22-33% TCO

Savings

Hyperscale Data Center TCOConventional 5D HDDs Ultrastar He6 with

HelioSeal™ Platform

Reductions in both CAPEX & OPEX Cooler, lower-power HDDs reduce power & cooling costs Fewer, denser servers = less networking infrastructure, less space, less power, less cooling Lower complexity, less maintenance

The above TCO's are estimates only.  Individual TCO may vary

Costs include TOR and aggregator costs & power into “rack cost”; “Server cost” is the customer cost of a complete 2U-12 server without HDDs. TCO savings vary based on PUE, cost of power, server type/density

HDD

Rack/Network

Server

Power

Cooling

Floor Space

HDD

Rack/Network

Server

Power

Cooling

Floor Space

31© 2013 HGST, INC.

Other TCO Considerations

Data centers within metropolitan areas face additional constraints and challenges:

– May not be able to acquire additional floor space

– May not be able to get adequate power

– May not be able to provide adequate cooling: “Free-Air” cooling not available in these environments

– Floor loading limits—typically ~2000lbs./sqft but varies by locality and individual building

The HelioSeal™ Platform’s high density, lower power and cooler operation solvesproblems for hyperscale datacenters, co-location facilities and internal IT

32© 2013 HGST, INC.

New Emerging Class of Data CentersNew Coolant Technologies. New HDD Opportunities.

Data center designers and server vendors are continuing to pack more capability into smaller spaces

– Modular and “containerized” datacenters

– Servers with faster CPUs and more cores

– More servers in a given volumetric space

– Desire to place storage “closer” to compute node

Effective cooling is becoming a new challenge– Hotter components

– Less space for efficient airflow

– The HDD blocks even more airflow

33© 2013 HGST, INC.

He6 Naturally Designed for Immersion Cooled Data Centers

Interest in immersion cooling – Servers immersed in a non-conductive liquid– Liquids can remove heat more efficiently

Limitations with current HDDs– High-density solutions w/ local storage can not be immersed– Traditional HDDs “need to breathe”

Ultrastar He6 uniquely suitable for immersion cooling

Ultrastar He6 operates in non-conductive liquidsPhoto used with permission from www.grcooling.com

34© 2013 HGST, INC.

HelioSeal™

Transforming the Data Center

35© 2013 HGST, INC.

Capacity & Trademark Statements

One gigabyte (GB) is equal to one billion bytes, one terabyte (TB) equals 1,000GB (one trillion bytes), and one petabyte

(PB) equals 1,000TB (one quadrillion bytes) when referring to hard drive or solid state drive capacity. Accessible capacity

will vary from the stated capacity due to formatting and partitioning of the drive, the computer’s operating system, and

other factors.

Ultrastar, MegaScale, HelioSeal, 7Stac, Virident, and FlashMAX are trademarks or registered trademarks of HGST, Inc.

HGST trademarks are intended and authorized for use only in countries and jurisdictions in which HGST has obtained the

rights to use, market and advertise the brand. HGST shall not be liable to third parties for unauthorized use of this

document or unauthorized use of its trademarks.

All other company names, products or trademarks used in this presentation are the marks of their respective owners, and

not HGST.

This information is presented as of November 4, 2013, and HGST does not undertake any obligation to update any of the

information provided.

Thank You