SanDisk Corp at JPMorgan Global Technology, Media and Communications Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Sagar Kapadia - JPMorgan Chase & Co. - Analyst : Thank you, Luis. David, maybe, the first quarter; maybe, the first question's to you, right? With SanDisk having closed a strong first quarter last week, where does the business stand today, as a (inaudible) leader?

Question: Sagar Kapadia - JPMorgan Chase & Co. - Analyst : Yeah. And, maybe, talking a little bit about the market and industry, right, like, as nine industries moves to $100 billion by the end of this decade, what is your strategy to capitalize on this growth?

Question: Sagar Kapadia - JPMorgan Chase & Co. - Analyst : Knock on the wood for that. And that's a great segue to my next question. How do you see the long-term demand drivers for NAND evolving, with the rise of AI, edge computing, and IoT?

Question: Sagar Kapadia - JPMorgan Chase & Co. - Analyst : And hyperscalers are investing heavily in AI infrastructure. How are you positioning your NAND portfolio to capture this high-value segment?

Question: Sagar Kapadia - JPMorgan Chase & Co. - Analyst : Talking a bit about industry bit growth, what are your most recent mid to long term industry bit growth expectations; and keep on a two to three-year view, what applications are you most excited about?

Question: Sagar Kapadia - JPMorgan Chase & Co. - Analyst : Yeah. And, maybe, if you can elaborate a bit on the supply side, right, like, have you and your peers have taken some supply side actions recently? How do you view, in the near term, the supply demand balance?

Question: Sagar Kapadia - JPMorgan Chase & Co. - Analyst : And are you still expecting the three PC tailwinds that you earlier mentioned during the call to materialize in the second half of this year? And what are the key indicators you are watching for this recovery?

Question: Sagar Kapadia - JPMorgan Chase & Co. - Analyst : The PC.

Question: Sagar Kapadia - JPMorgan Chase & Co. - Analyst : I think this question -- I'm sure you've heard it like 100 times -- but what are your expectation of NAND pricing in the coming quarters and how are you planning to navigate the potential volatility and maybe if you can even comment on, like, sustainability of this land pricing.

Question: Sagar Kapadia - JPMorgan Chase & Co. - Analyst : Yeah. That makes sense. And, of course, this is developing real time, but what's your view on the impact of tariffs on the business?

Question: Sagar Kapadia - JPMorgan Chase & Co. - Analyst : If we talk a bit about your Enterprise SSD segment, it has been small but growing. What should we expect for this segment through, let's say, FY26? And what are the key drivers for growth and market share, from your perspective?

Question: Sagar Kapadia - JPMorgan Chase & Co. - Analyst : And you just, mentioned, you started ramping (inaudible) and, which accounts for almost 10% of your bids, this quarter and it's expected to grow through FY26. Can you share a bit about this technology? And are your customers ready to transition to (inaudible) at scale?

Question: Sagar Kapadia - JPMorgan Chase & Co. - Analyst : Yeah. Let me see if there's any question from the audience, before I move on. And if you can please wait for the microphone. Any questions? Okay. And you go. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 9:10PM, SNDK.OQ - SanDisk Corp at JPMorgan Global Technology, Media and Communications Conference Unidentified Participant 1 Hi. I was just looking at the cash flow characteristics and I just saw it was a little bit negative in the most recent quarter. Can you just talk through the ebbs and flows of the business? Quarter to quarter, how that comes in and out?

Question: Sagar Kapadia - JPMorgan Chase & Co. - Analyst : One more question. Unidentified Participant 2 Hi. A lot of semi equipment companies talk about, this year, seeing upgrades in terms of like (inaudible) NAND . How do you see that? Like, how do you manage the timing of transitions to, like, more layers in NAND so that the timing is not too early but not too late as well

Question: Sagar Kapadia - JPMorgan Chase & Co. - Analyst : May we take one more?

Question: Sagar Kapadia - JPMorgan Chase & Co. - Analyst : David, your (inaudible) with (inaudible) has been one of the most successful longstanding partnerships in the tech industry. What do you see are the co-drivers behind the success? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 9:10PM, SNDK.OQ - SanDisk Corp at JPMorgan Global Technology, Media and Communications Conference

Question: Sagar Kapadia - JPMorgan Chase & Co. - Analyst : It's great. Maybe if you spend a couple of minutes on just your financials and capital allocation. In your last earnings call last week, you guided towards improving gross margins, especially if you were to move the underutilization charges. How long do you expect that will take to reach your long term through the cycle targets? And do you think 50% is still a reasonable long-term goal?

Question: Sagar Kapadia - JPMorgan Chase & Co. - Analyst : That's great. I know we are at the time. David and Luis, thank you so much. We really appreciate you coming here. Thank you.

Question: Sagar Kapadia - JPMorgan Chase & Co. - Analyst : Bye-bye. Thank you. Take care.