SanDisk-2010 Investor Report

INVESTOR DAY
FEBRUARY 26, 2010

AGENDA
ELI HARARI YORAM CEDAR SHUKI NIR
Chairman & Executive Vice Senior Vice President &
Chief Executive Officer President, OEM & General Manager,
Corporate Engineering Retail Business
SANJAY MEHROTRA DAN INBAR JUDY BRUNER

President & Senior Vice President & Executive Vice President,
Chief Operating Officer General Manager, Administration &
OEM Mobile & Imaging Chief Financial Officer
SHORT BREAK ELLIOT BROADWIN Q&A

Vice President,
MNO Solutions
LUNCH BREAK
Page 2 Investor Day | February 26, 2010

FORWARD-LOOKING STATEMENT
During our meeting today we will be making 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 revenue, pricing, market share, market growth, product sales,
industry trends, expenses, gross margin, future memory technology, production
capacity and technology transitions and future products.
Actual results may differ materially from those expressed in these forward-
looking statements including due to the 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.
Reconciliations between Non-GAAP and GAAP results presented are included
in the appendix of the financial presentation.
We undertake no obligation to update these forward-looking statements, which
speak only as of the date hereof.

ELI
HARARI
Chairman and Chief Executive Officer
INVESTOR DAY MEETING
February 26, 2010

TODAY‘S THEME:
IN THE COMING DECADE,

FLASH WILL BE BIGGER
THAN YOU THINK!

AGENDA
• 2009 Scorecard
• Past decade
• Technology, Competition, Capacity
• Intellectual Property
• Coming decade
• Summary

SANDISK 2009 SCORECARD
 Remarkable turnaround for SanDisk

 Our decisive actions brought decisive results
 Strong execution in technology (X3, 32nm) and operations
 Renewed Samsung license agreement
 Exiting 2009 with strong balance sheet
 2010 Flash fundamentals as good as ever

DEMAND / SUPPLY GARTNER 4Q09
Short-Term Supply/Demand Sufficiency
2008: 105.0% = Oversupply
2009: 96.0% = Shortage
2010: 98.9% = Shortage
SUPPLY/DEMAND SUFFICIENCY
6,000
BILLIONS OF MEGABYTES
5,000
105%
4,000
3,000 100%
2,000
95%
1,000
0 90%
3Q08
1Q08
2Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
NAND Flash Supply NAND Flash Demand Sufficiency
Source: Gartner NAND Flash Memory Supply and Demand, Worldwide, 1Q08-4Q10 (4Q09 Update)

EXPANDING SCALE
IT TOOK US…
 15 years (1991–2006) to ship the first 0.5 billion units
 3 years (2007–2009) to ship the next 1 billion units
WE EXPECT TO SHIP MORE THAN

1 BILLION UNITS IN THE NEXT TWO YEARS

OUR 1999 PREDICTIONS FOR 2010
CAME TRUE

PC/SERVER
Market 1999
Size PC/SERVER
CONSUMER
HDD CONSUMER DRAM
CD/MD INDUSTRIAL SRAM
TAPE FLASH
 Capacity Cost 
A/V CONSUMER,
WIRELESS,
PC/SERVER INTERNET E-COMMERCE PC/SERVER 2010

Market
Size
HDD DRAM
CONSUMER FLASH
SRAM
CD/MD
TAPE
 Capacity Cost 
Mechanical   Solid State
Source: EH 8-25-99
EVOLUTION OF
FLASH MEMORY STORAGE
1990–1999: EARLY DAYS
 Industrial, military
 Early development of digital film, early PDA‘s
 Early web days, DiskonKey (Sneaker-net)
2000–2009: DIGITAL CONSUMER REVOLUTION

 Flash: ubiquitous, strategic enabler for portable personal content
 Early days of Mobile Internet:
– 3G networks—taking off
– iPhone, mobile apps—taking off
– Social networking—taking off

SANDISK‘S PAST DECADE:
2 FLASH INDUSTRY CYCLES
10-Yr CAGR (2000-2009): ~22%
$5.0
12% to 23%
$4.5
$4.0 +20%
+6%
$3.5 +41%
-14%
(BILLIONS)
$3.0
+30%
$2.5
$2.0 +65%
$1.5
+99%
$1.0
+144% +48%
$0.5 -39%
$0.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E
Total Revenue 2010 Revenue

MANAGING THRU DOWN CYCLES:
RAPID RECOVERIES
$3.00 $2.51
$2.00
$2.00 $1.73 $1.84
$1.44
$1.02
$1.00 $0.66
$0.25
$0.00
($1.00)
($2.00)
($2.19) ($2.07)
($3.00)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Non-GAAP EPS
See note on page 203.
2000 excludes gain on investment in foundry.

SANDISK DEMAND CONTINUED
TO GROW STRONGLY THROUGH
2 DOWN CYCLES
116%
GIGABYTES SOLD
125%
190%
221%
20% 233% 238% 167% 166%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Gigabytes Sold (Y/Y Growth Rate)

TECHNOLOGY,
COMPETITION

NAND COST REDUCTION TRENDS
2005–2009: 45%-55% annual cost reductions;

 SLC MLC (~90% of bits)
 200mm 300mm, mega-fabs, automation, immersion lithography
 Unprecedented productivity thru rapid technology transitions
2010–2013: 25%-35% annual cost reductions;

 MLCX3 (~50% of bits)
 NAND technology more challenging at 1x nm, 1y nm
 EUV lithography will likely be required below 1x nm

MEMORY TECHNOLOGIES‘ COST CURVES
1,000%
FeRAM
NAND
Cost/GB ($) compared to NAND cost in year 2005
100%
MRAM
PCM Conservative
10%
PCM Optimistic
BICS
1% Conservative
BICS Optimistic
3D Optimistic
3D Conservative
0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: SanDisk estimate 2010; ITRS 2008

3D R/W (READ/WRITE) MEMORY—
SCALABLE CROSS-POINT DIODE ARRAY
 Joint development with Toshiba,
now proceeding at Yokkaichi
 Making good progress with R/W
layer, but not yet ready for
production
 At x8 equivalent, and given our
knowhow in 3D diode arrays, we
believe 3D R/W is the most likely
successor for NAND in the
coming decade: could usher
second SSD wave
Source: IEDM 2009 Short Course, ―Low Power Approaches for Memories‖, by A. Nitayama

NAND AND POST-NAND FABS
IN COMING DECADE
 Existing NAND mega-fabs at 1xnm will be highly depreciated, generating
attractive margins and throwing off long tail of cash
 New NAND mega-fabs will be pricey (~$8 billion for 200,000 wafers/month),
will need to support EUV, will need to adapt to post-NAND technologies
production
 Industry NAND transition SLCMLC took 3 years (20022005)
 Industry transition to post-NAND will be more complex, expect extended
period of overlapping NAND and post-NAND designs in production

HOW WE STACK UP AGAINST NAND
COMPETITION
• SanDisk Flash Technology/Intellectual Property:
– 32nm: leader in X3, industry‘s most cost effective, 2010 work-horse
– 24nm: expect to lead with X3: production work-horse in 2011
– X4: shipping products, but limited applications
– Systems, Advanced controllers, AFM (Adaptive Flash Management):
uniquely advantaged relative to competition
– Security, Content: leadership position
– Die stacking: leading 8 die stacking in high volume (microSD™, iNAND™)
• Scale: Great partnership with Toshiba:
– Our Fab 3 + Fab 4 deliver ~ 35% of world‘s NAND output
• Flash Storage is really tough to do well. Leadership requires:
– Most advanced semi production technology applied on massive scale
– Rapid product innovations and strong IP.
• SanDisk: We do Flash right !

INTELLECTUAL PROPERTY: STATUS
SAMSUNG CROSS-LICENSE:
 Seven-year patent cross license renewal with estimated effective
rate of the fixed payments and royalties at approximately 50% of
recent effective royalty rate
FLASH MEMORY PORTFOLIO:
 Wall Street Journal‘s Patent Board Scorecard ranked SanDisk # 2
in 2009 among the semiconductor companies it tracks, up from # 4
in 2008
 Licensed to ~85% of NAND industry output
CARDS:
 SD, microSD now account for~85% (and growing) of all cards
sold—royalties shared with SD 3C (Toshiba, Panasonic, SanDisk)
AS YET UNTAPPED LICENSING POTENTIAL:
 Extensive Systems/controllers, SSD, Mobile Security (content)
 Fundamental patents in 3D diode arrays (apply to most 3D
approaches)

OUR FLASH CAPACITY PLANS
• We believe that growing demand should drive a healthy industry-wide

supply/demand balance in 2010, likely to continue into 2011
• We are focused on technology upgrades and X3 in Fab 3 and Fab 4
• In 2010/2011 we are planning to acquire our 50% of remaining
unused capacity in Fab 4, bringing our captive output to ~2 million
300mm wafers/year.
– We will leverage non captive sources when demand exceeds this captive
supply
• We project demand for NAND and 3D R/W to outstrip our captive and
non-captive supply sometime in the next few years
• Investment in new captive fab believed premature, will require healthy
demand/supply balance and ROIC:
– We will evaluate continuously and proceed with caution

GROWTH IN THE
COMING DECADE

FLASH MARKETS ARE YOUNG:
GROWTH MOSTLY STILL AHEAD
80,000
70,000 Computing
MILLIONS OF GIGABYTES
60,000
50,000
Mobile
40,000
30,000
20,000 Legacy
Consumer
10,000
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Chart created by SanDisk based on data from Gartner: NAND Flash Memory Supply and Demand, Worldwide,
1Q08–4Q10 (4Q09 Update)

FLASH IS EVERYWHERE
LEGACY CONSUMER:
• Digital cameras
• Digital camcorders
• GPS
• MP3
• Gaming
• USB Flash drives
• e-Books
MOBILE
COMPUTING:
• Netbooks, Notebooks, Tablets, MID
• Servers, Enterprise
OTHER:
• Automotive
• Industrial
• Medical
• Military
iPhone/SmartPhone/Tablet
= New PC

Notebook PC + Smartphone Shipments Dwarf Desktop
Consumers Increasingly Prefer Portability
Unit Shipments of Desktop PCs vs. Notebook PCs + Smartphones, 2005 – 2013E
1,200
1,000
Annual Unit Shipments (MM)
800
2006: Inflection Point

600 Notebook PC + Smartphone
Shipments Broke
Away from Desktop PC
400
200
0
2005 2006 2007 2008 2009E 2010E 2011E 2012E 2013E
Notebook PCs Smartphones Desktop PCs

Note: Notebook PCs include Netbooks. Source: IDC, Gartner, Morgan Stanley Research estimates.
Page 27 Source: December 15, 2009, The Mobile Internet Report, Mary Meeker © 2009 Morgan Stanley
iPHONE SEMICONDUCTOR CONTENT
$180
$160
$140
$120
$100
$80
$60
$40
$20
$-
2007 iPhone 2.5G 2008 iPhone 3G 2009 iPhone 3GS
4, 8, 16 GB 8, 16 GB 16, 32 GB
NAND LCD Baseband AP Camera Module DRAM Wifi RF
Source: December 15, 2009, The Mobile Internet Report, Mary Meeker © 2009 Morgan Stanley;
DRAMExchange; SanDisk estimates

FLASH SSD: MASSIVE MARKET IN
COMING DECADE
• SSD adoption still in early stages: expect market acceleration in
2011 with 2x nm NAND, tipping point reached with1x nm NAND
• SSD will come in all kinds of form-factors (e.g. thin), optimized for
specific usage models, fostering new architectures/innovation
• SSD price elasticity will serve to correct industry excess supply
• We see SSD as playing to our strengths in Systems, IP and
captive supply, and expect to be a long term SSD participant

Connectivity = Cloud Computing
Consumers Expect to Get Their Stuff 24x7 from Palms of Their Hands
Music Video Photos Apps / Documents Shopping / Stuff

in the Cloud in the Cloud in the Cloud in the Cloud in the Cloud
User Generated Content Professional Content

Facebook is the leading Leading repository TBD
repository for user-generated Unified Digital
Apple iTunes? Amazon.com?
photos / videos / comments /
links to music / social games
Locker Netflix? Hulu? Spotify?
Note: Apple iTunes yet to offer full length media streaming. Source: Company websites.
Page 30 Source: December 15, 2009, The Mobile Internet Report, Mary Meeker © 2009 Morgan Stanley
SUMMARY: FLASH IS EVERYWHERE,
WILL BE BIGGER THAN YOU THINK!
• FLASH UBIQUITOUS, AND GROWING
• SMARTPHONE = ―NEW PC‖ FLASH SSD
• ―MOBILE INTERNET IN EARLY INNINGS, WILL BE BIGGER THAN

YOU THINK‖ (Morgan Stanley*)
• CLOUD COMPUTING: LAST NODE ON NETWORK, IN YOUR

POCKET
• HIGHLY SCALED FLASH GETTING HARD TO DO WELL,

SYSTEM SOLUTIONS BECOMING KEY PLAYING TO OUR
STRENGTHS
Source: December 15, 2009, The Mobile Internet Report Mary Meeker © 2009 Morgan Stanley

SANJAY
MEHROTRA
President & Chief Operating Officer
WELL POSITIONED FOR
PROFITABLE GROWTH

AGENDA
• Market Opportunities and Innovation
• Leadership in Technology and Cost
• Scalable Operations, Solid Execution
SanDisk well positioned in all these areas due to its Vertically

Integrated Structure and Diversified OEM/Retail Businesses

2009 STRATEGIC SHIFT:
Created New Growth Opportunities in Both OEM and Retail
SANDISK PRODUCT REVENUE MIX
2008 2009
Retail OEM Retail OEM

64% 36% 50% 50%
• Expanded OEM channels and customers

• Diversified memory products
• Expanded global reach in OEM and Retail

GLOBAL REACH STRONGER THAN EVER
• 242,000 storefronts world wide (Retail)

• 5 of top 10 customers in 2009 were Global Handset Manufacturers (OEMs)
• Increasing revenue contribution from emerging markets
Europe
Asia/
N. America Pac Rim
Bell World Carphone Warehouse
Best Buy Carrefour
Costco Comet
Bing Lee Japan
CVS Dixons
Broadway
Future Shop FNAC
Citicall
GameStop Jessops
Focus Amazon
K-Mart Orange
Fortress BIC
Meijer/Food MediaMarkt
Jumbo Edion
Office Depot Latin Ringfoto
Saturn
Lotte K’s
OfficeMax MIcroMax Kitamura
Sears America Tesco
Noel Leeming Kojima
Sprint Walmart
OfficeWorks Matsukiyo
Staples Reliance Yamada
Verizon Carrefour Tesco Lotus Yodobashi
Walgreen’s Casa Bahia
Walmart Extra
FNAC
Musimundo
Sanborns
Ripley
Walmart

WE ARE IN THE EARLY STAGES OF FLASH
IN MOBILE AND COMPUTING MEGA-MARKETS
90,000
76 Billion GB
80,000 2008-2013, 5-Yr CAGR: 74%
MILLIONS OF GIGABYTES
70,000
60,000
50,000 Mobile
40,000
30,000
Computing
20,000
20 Million GB
10,000
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Other Automotive Computing Gaming Mobile Phone
Camcorder USB Drive Media Player Digital Camera
Source: Gartner: ―4Q09 NAND & SSD Update: Enabling Products or Enabling Profits?‖ (November 2009)

MOBILE: SANDISK‘S
PRIMARY GROWTH DRIVER
END MARKET 2006 2007 2008 2009
Mobile 25% 35% 34% 41%
Imaging 37% 26% 25% 24%
USB 14% 14% 13% 13%
Other Markets 14% 13% 14% 10%
License & Royalty 10% 12% 15% 12%
TOTAL REVENUE 100% 100% 100% 100%

SMARTPHONES: CATALYST FOR
GROWTH IN MOBILE FLASH DEMAND
Annual Smartphone Sales
1800 expected to double in the
next 4 years
1600
1400
1200
M UNITS
1000
800
600
400
200
0
2009 2010 2011 2012 2013
Smartphones Average Feature Phones Average Basic Phones Average
Source: SanDisk, based on data from Gartner, Strategy Analytics and iSuppli.

SANDISK MOBILE
POINTS OF ENGAGEMENT:
BEST IN THE INDUSTRY
Handset Network Global
Vendor Operator Retail
Embedded Bundled Bundled Aftermarket Aftermarket

SOLID STATE DRIVE:
A LARGE EMERGING DEMAND DRIVER
 SSD adoption expected to pick up in 2010, accelerate in 2011
 Gartner projects SSD to approach 20% of NAND bits shipped
in 2012
 Notebooks: Price/Performance key trigger point
 Flash uniquely enables exciting new devices
– Netbooks, Tablets, others
– Smartphone as a PC
– Thin Form Factor, Low Power, High Performance

INNOVATION

SANDISK INNOVATION FOCUS AREAS
• Mobile Embedded Applications

• Mobile Network Operator Service Discovery Cards
• Solid State Drives
• Leveraging Technology and System Expertise Across the Entire
SanDisk Product Portfolio

PIONEERING NEW MOBILE
EMBEDDED SOLUTIONS
Application
Requirements
MLC X3 Time
Raw Flash
Capability

PIONEERING NEW MOBILE
EMBEDDED SOLUTIONS
Application
Requirements
MLC pioneers Adaptive Flash Management

SanDisk X3 (AFM) — bridging the gap Time
Raw Flash
Capability

PARTNERING WITH MOBILE NETWORK
OPERATORS:
SERVICE DISCOVERY CARDS
Historically, carriers have viewed the microSD™ cards as an extension
of the phone—like a Bluetooth earpiece.
The Mobile Internet explosion is forcing carriers to find economical

solutions to grow their service offerings
SanDisk’s Service Discovery Cards (SDC) leverage unique capabilities

(streaming, caching, encrypting) enabled by our system, to act as an
extension of the network.

SANDISK SSD INNOVATION FOCUS
 SanDisk expects to be a significant participant

in the SSD market
 Evolving Product lineup
– 2009 SanDisk® pSSD (MLC) for Netbooks
– 2010 SanDisk® G3 SSD (MLC) product launch
– 2011 Targeting innovative, next generation products

for Notebook, Netbook, Tablet and Smartphone markets

LEVERAGING TECHNOLOGY
AND SYSTEM EXPERTISE
High Performance, High Capacity, Low Cost
SANDISK EXTREME®
SANDISK EXTREME® PRO™ X2
Up to 90MB/sec
SANDISK ULTRA®
Up to 15MB/sec X2, X3
BLUE
X3, X4
EMBEDDED
X2, X3

AGENDA

SANDISK-TOSHIBA PARTNERSHIP
BUILDING ON 10 YEARS OF
NAND COLLABORATION
 8 Generations of MLC & 3 Generations of X3 Developed
Jointly Over 10 Years
 R&D Collaboration and Cost Sharing
– NAND and 3D Read/Write
 2 Existing Flash Manufacturing Joint Ventures in Fab 3 and Fab 4

 SanDisk and Toshiba Combined 300mm NAND Capacity > 4 Mil
Wafers/year
– Our cost benefits capture the full scale of production in Fab 3 and Fab 4

X3 IS EXTREMELY VALUABLE…
 Significantly increases Gigabytes/wafer

– SNDK 32nm, 32Gb X2 140 mm2
X3 ~20% more Gigabytes/wafer
– SNDK 32nm, 32Gb X3 113 mm2
 Substantially Lowers Cost without any additional Capital

Investment or Process Complexity
 Pricing competitive to X2: Expands Gross Margin and Improves

Return on Invested Capital

…IF YOU CAN DEPLOY IT
ESTIMATED X3 MIX OF FAB BIT OUTPUT (GARTNER DATA)
60%
50% System Expertise

is key to enabling
40% high X3 production mix
30%
20%
10%
0%
4Q09
SanDisk Toshiba Samsung Micron Hynix
Source: Gartner: 4Q09 NAND & SSD Update: ―Enabling Products or Enabling Profits?" November 2009

SANDISK UTILIZING X3 IN ALL MAJOR
END MARKETS
Q409 END MARKET SALES UTILIZING X3
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Mobile Imaging USB
% of GB sold
Products utilizing X3
Mobile: microSD, M2, iNAND
Imaging: SD, MS Pro Duo

SANDISK NAND ROADMAP
2008 2009 2010 2011 2012 2013
256G
24nm 1xnm
128G
X3 X2, X3
64G 43nm 32nm 24nm

X4 X3 X2, X3
43nm 32nm
32G
X2, X3 X2, X3
16G 43nm
X2, X3
8G
4G

CONTINUED RAPID
TECHNOLOGY TRANSITIONS
TECHNOLOGY TRANSITION FOR TOTAL CAPTIVE WAFER OUTPUT—% OF GB
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2006 2007 2008 2009 2010
90 nm 70nm
90 nm 70 nm 56 nm
56 nm 4343
nmnm 32 nm 3224
nmnm 24 nm
Page 55Source: SanDisk. Investor Day | February 26, 2010

5TH CONSECUTIVE YEAR OF
> 50% COST REDUCTION(1)
COST/GB REDUCTION
60%
50%
NON-MEMORY
40%
30%
MEMORY
20%
(Includes 1H09 Fab
underutilization)
10%
0% Technology Transitions
2005 2006 2007 2008 2009 Increased Mix of X3/X4
Total Cost Reduction Memory Non-Memory Economies of Scale and
Productivity Improvements
1 See note on Page 198

NON-MEMORY COSTS DECLINED EVEN
FASTER THAN MEMORY COSTS(1)
ex: 4GB MICROSD™ CARD
-52%
Cost per Unit
77%
80%
2008 2009
Memory Controller Assy/Test Other
1 See note on Page 198

2010 COST REDUCTION OUTLOOK
 Cost/GB reduction expected to be in the range of 30-40%
 X3 expected to be > 50% of fab bit output
 Key Cost Reduction Drivers:

– 32nm expected to be > 70% of fab bit output
– Continued non-memory cost reduction

AGENDA

SANDISK SCALE APPROACHING 1.5
MILLION UNITS PER DAY
~ 500M units/ year
1.6
MILLIONS OF UNITS SOLD PER DAY
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
2004 2005 2006 2007 2008 2009 2010
Source: SanDisk.

JOINT VENTURE FABS: INDUSTRY
LEADING SCALE AND EFFICIENCY
SanDisk 2009
• ~1.5 Million 300 mm wafers output (SanDisk)

– returned to 100% Utilization in 2nd Half
 Bit output growth ~38%
– includes JV restructuring
– 43nm >90% Bit production
– X3/X4 ~50% of Bit production
Yokkaichi, Japan
Source: SanDisk.
Page 61. Investor Day | February 26, 2010
2010: SUPPLY GROWTH ALIGNED WITH
DEMAND
MEMORY SUPPLY PLANS
 Captive bit output growth expected to be at or below 70%
– Growth mostly expected from 32nm transition
– In 2H 2010, expect to add ~10% wafer capacity to JVs by expanding
in unused Fab 4 clean room space
DEMAND EXPECTATIONS
 Bit demand growth expected to be greater than 70%
END MARKET SHARE

 Expect to maintain or grow market share through improved
inventory management and potentially non-captive purchases

SANDISK SHANGHAI
ASSEMBLY/TEST FACILITY:
ANOTHER COMPETITIVE ADVANTAGE
Key advantages: cost, cycle time, multi-die capability
SanDisk
Sub-Contract
Sub-Contract Partners
Partners
2007 UNIT PRODUCTION 2009 UNIT PRODUCTION
Source: SanDisk.
Page 63. Investor Day | February 26, 2010
RECORD 2H09 UNIT SALES:
OUTSTANDING EXECUTION
Enabled by Flexible
and Scalable
Supply Chain
TOTAL MEMORY UNITS SOLD

FOCUSED ORGANIZATION,
VERTICAL INTEGRATION STRATEGY
Retail OEM Technology Fab Operations
Market Opportunities Cost Effectiveness Scale
EXECUTION

SUMMARY
 Strong Demand Ahead

 Spurring Growth through both OEM and Retail Businesses
 Building on core competencies
– Product Innovation
– Technology Leadership
– High Volume Operations
 Solid track record of execution
SanDisk Best Positioned to

Drive Future Growth
SANDISK 2010
We are taking a short break.

The Investor Day Meeting will resume shortly.

YORAM
CEDAR
Executive Vice President, OEM & Corporate Engineering

OEM offers tremendous growth
opportunities which SanDisk is
uniquely positioned to exploit.

SANDISK‘S OEM PORTFOLIO
IMAGING & GAMING MOBILE COMPUTING
PRIVATE LABEL & COMPONENT BUSINESS

SANDISK‘S 2009 OEM REVENUE MIX
Grew from ~$1.0B in 2008
Mobile Network to ~$1.5B in 2009 with strong
Operators
18% growth in units and PBs
Private Label Cards

& Components
13% Mobile Handset
Vendors
52%
Imaging & Gaming

12%
Computing
5%

Mobile Network
Operators
18%
Private Label Cards

& Components
13% Mobile Handset
Vendors
52%
Imaging & Gaming

12%
Computing
5%

IMAGING & GAMING
SLR HD VIDEO ON SD

IMAGING & GAMING
SLR HD VIDEO ON SD MOBILE GAMING PMP
16 – 32 – 64GB+

Mobile Network
Operators
18%
Private Label Cards

& Components
13% Mobile Handset
Vendors
52%
Imaging & Gaming

12%
Computing
5%

PRIVATE LABEL AND
COMPONENT BUSINESS
In 2009, SanDisk introduced a new business...

…it represented 13% of our OEM business in 2009.

Mobile Network
Operators
18%
Private Label Cards

& Components
13% Mobile Handset
Vendors
52%
Imaging & Gaming

12%
Computing
5%

MOBILE STORAGE GROWTH
SHIPMENTS OF ALL HANDSETS, SLOTTED HANDSETS, EMBEDDED NAND, CARD SLOTS – M UNITS
1,600
1,400
1,200
1,000
800
600
400
200
0
2007 2008 2009 2010 2011 2012 2013
total handsets handsets w. card slot
Source: Wireless Device Strategies Service, Strategy Analytics, February 2010

SHIPMENTS OF ALL HANDSETS, SLOTTED HANDSETS, EMBEDDED NAND, CARD SLOTS - M UNITS
1,600
1,400
1,200
1,000
800
600
400
200
0
2007 2008 2009 2010 2011 2012 2013
mobile cards total handsets handsets w. card slot

SHIPMENTS OF ALL HANDSETS, SLOTTED HANDSETS, EMBEDDED NAND, CARD SLOTS - M UNITS
1,600
1,400
1,200
1,000
800
600
400
200
0
2007 2008 2009 2010 2011 2012 2013
mobile cards embedded flash 1GB+ total handsets handsets w. card slot

Mobile Network
Operators
18%
Private Label Cards

& Components
13% Mobile Handset
Vendors
52%
Imaging & Gaming

12%
Computing
5%

YOU CAN NEVER BE TOO THIN...
IPOD CLASSIC - HDD IPOD NANO - NAND
0.41” thick 0.24” thick

4.9 oz 1.3 oz
$1.50/GB $11.00/GB
Source: Apple, Feb 2010

YOU CAN NEVER BE TOO THIN...
DELL MINI 10 - HDD SONY VAIO X - SSD
Half as thick
Half as heavy
10x the value
Thin is In
1.1” thick 0.55” thick

2.5 lbs 1.3 lbs
$1.85/GB $21.00/GB
Source: Dell, Sony, Feb 2010

PERFORMANCE & MODULAR SSD
Modular SSD - pSSD Performance SSD - G3
Smaller and lower cost than an HDD Faster and more reliable than an HDD
Netbooks Smartbooks Notebooks Desktops
Servers
Tablets

SSD: GROWTH IS JUST STARTING
16,000
14,000
12,000
DEMAND (PB)
10,000
8,000
Performance
6,000 SSD
4,000
Modular
2,000 SSD
Enterprise
-
2007 2008 2009 2010 2011 2012 2013
Source: Gartner: Semiconductor Forecast Database, 4Q09

8 of the 10
Top Netbook Makers
Use SanDisk Modular SSD
Revenue basis, Source: SanDisk Market Research

OEM offers tremendous growth
opportunities which SanDisk is
uniquely positioned to exploit.

SYSTEM DESIGN AT SANDISK‘S CORE
WORLD CLASS
Retail
Responsive distribution: lean supply
& OEM
chains and global footprints
System
Assembly &
Logistics
SANDISK‘S CORE
System
More bits, more performance and
Design
ultimately more revenue ($$) per wafer
Memory
Design
WORLD CLASS
Memory Cutting-edge, capital-intensive
Fabrication wafer fabs

SANDISK DRIVES EVOLUTION OF
LEADING FLASH FORMATS
SDC
• Standardization → Market Expansion iNAND
• Market Expansion → Volume mDOC
microSD™
miniSD™
Memory
Stick
PRO™
UFD
SD™
MMC™
CF®
PC Card
 iNAND → focus is on enabling embedded X3
 SDC → ―More than memory‖— service discovery card

SANDISK DRIVES EVOLUTION OF
LEADING FLASH FORMATS
SDC
• Standardization → Market Expansion iNAND
• Market Expansion → Volume mDOC
microSD™
miniSD™
Memory
Stick 800
PRO™
Slotted Handsets (M)

UFD 600
SD™ 400
MMC™
200
CF®
0
2004 2005 2006 2007 2008 2009 2010
PC Card
 iNAND → Focus is on enabling embedded X3
 SDC → ―More than memory‖— service discovery card

APPLICATION-ADAPTIVE
FLASH MANAGEMENT
Raw NAND
Capabilities Application
Target Specs
Page 91
SanDisk Confidential
Investor Day | February 26, 2010
APPLICATION-ADAPTIVE
FLASH MANAGEMENT
Adaptive Flash
Management
Raw NAND
Capabilities Application
Target Specs
Page 92
SanDisk Confidential
Investor Day | February 26, 2010
THE KEY TO X3 IS ADOPTION
Time from Introduction to 50% bit share
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
X2
X2 MLC
SanDisk Rest of Industry 50% Adoption

Source: Internal Estimates, Gartner: NAND Flash Memory Supply and
Demand, Worldwide, 1Q08–4Q10 (4Q09 Update)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
X2 X3
X2 MLC X3 ?


2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
X2 X3
X2 MLC X3 ?
50%
40%
x3 PB %
30%
20%
10%
0%
2008 2009 2010


Grew from ~$1.0B in 2008
Mobile Network to ~$1.5B in 2009 with strong
Operators
18% growth in units and PBs
Private Label Cards

& Components
13% Mobile Handset
Vendors
52%
Imaging & Gaming

12%
Computing
5%

DAN
INBAR
Senior Vice President & General Manager,
OEM Mobile & Imaging

STORAGE FOR MOBILE
Removable and Embedded MLC NAND Based Devices
 Removable Card
 Embedded Storage
– User storage
– Mobile system/boot
code

STORAGE FOR MOBILE
SanDisk broad mobile understanding creates synergy between our product line
User
Experience Advanced
technology/
innovation
Advanced
process (X3)
Cost Leadership

EMBEDDED MANAGED NAND
• SanDisk has been constantly driving the industry to
managed NAND architecture
EMBEDDED TECHNOLOGY ADVANCES
NOR
Embedded Market
2009

SLC
NOR
Embedded Market
2009

MLC
Boot
MLC
SLC
NOR
Embedded Market
2009

MLC
Boot
MLC
SLC
NOR
Embedded Market
2009

X3
MLC
Boot
MLC
SLC
NOR
Embedded Market
2009

SANDISK ADVANCED TECHNOLOGY
Unleash the Full Potential of Embedded Managed NAND

Market Requirement

Market Requirement
43nm X2

Market Requirement
43nm X2
32nm X2

Market Requirement
43nm X2
32nm X2
32nm X3

Smart
Caching
Market Requirement
43nm X2
32nm X2
32nm X3
Smart
Caching

Smart
Caching
SLC
Emulation
Market Requirement
43nm X2
32nm X2
32nm X3
Smart
Caching

Smart
Caching
SLC
Emulation
Market Requirement
43nm X2
32nm X2
32nm X3
Smart
Caching
High Performance Mode

Smart
Caching
Adaptive
Flash
SLC Management
Emulation (AFM) –
Bridging
the Gap
Market Requirement
43nm X2
32nm X2
32nm X3
Smart
Caching

Smart
Caching
Adaptive
Flash
SLC Management
Emulation (AFM) –
Bridging
the Gap
Market Requirement
43nm X2
32nm X2
32nm X3
Smart
32nm X3 + AFM
Caching

Smart
Caching
Adaptive
Flash
SLC Management X3 in
Emulation
Leveraging
(AFM) –
Embedded
Bridging requires
the Gap system
advanced
technology Market Requirement
43nm X2
32nm X2
32nm X3
Smart
32nm X3 + AFM
Caching

Smart
Caching
Adaptive
Flash
SLC Management X3 in
Emulation
Leveraging
(AFM) –
Embedded
Bridging requires
the Gap system
advanced
technology Market Requirement
43nm X2
32nm X2
32nm X3
Smart
32nm X3 + AFM
Caching

SMART MEMORY FOR SMART PHONES
USER AREA
• High capacity mass storage
• 3-bits per cell (X3)
CACHE
• High random
performance
CODE AREA • High endurance
• Boot and code storage
• High performance
• Highly reliable
OPTIMIZED FOR MOBILE SYSTEM

• Boot code and user storage in a single device
• Design based on actual handset usage modeling
• Enhanced system responsiveness – e.MMC 4.41
117 117
Page Investor Day | February 26, 2010
MOBILE EMBEDDED MARKET GROWTH
• Expected consistent growth in embedded MLC TAM—fueled by the high-
end segment growth
800
700
600
500
400
Mu
300
200
100
0
2009 2010 2011 2012
Handsets with Embedded MLC
% of total handsets
SANDISK IS GROWING EVEN FASTER THAN THE MARKET

* Source: Strategy Analytics (Feb 4, 2010), embedded handsets data relates to 1GB and above
Page 118 Investor Day | February 26, 2010 118

OTHER EMBEDDED OPPORTUNITIES
PORTABLE NAVIGATION DEVICES
eREADERS GAMING
SMARTBOOKS/TABLETS DVC
NETBOOKS PORTABLE MEDIA PLAYERS

SUMMARY
• Embedded high capacity is a significant

opportunity
• It requires special smart, adaptive Flash
• SanDisk is well positioned for success

THANK YOU

ELLIOT
BROADWIN
Vice President, MNO Solutions
MOBILE NETWORK OPERATORS

WHY OPERATORS?
• $1,000,000,000,000
• 4,600,000,000 subscriptions
• Highly concentrated
Source: Strategy Analytics, May 2009

9 of the top 10
Mobile Network Operators
Buy SanDisk
Source: Operator ranking according to Strategy Analytics, January 10, 2010

‗iPHONE‘ CHANGES
EVERYTHING
Two dramatic threats to carriers…
…which Flash can

significantly address…
…and SanDisk is uniquely

equipped to deliver

STRATEGIC PAIN-POINTS
―Watching a YouTube video on a

smartphone can be equivalent to
Thanks a billion
sending 500,000 text messages
simultaneously.‖ (O2‘s CTO Derek McManus)
THE DUMB PIPE DILEMMA THE CLOGGED PIPE DILEMMA

STRATEGIC PAIN-POINTS

WHAT CAN FLASH
DO TO HELP?

TIME &
PLACE SHIFTING

SHIFTING TIME AND PLACE IN A FLASH
Bandwidth Friendly
Pre- Local
Loading
Flash
WiFi
Memory
(home) Cache
Mobile
Data
(Off peak)
Mobile Data
(Peak)
Illustrative Data
Availability
(everywhere, all the time)

CASE STUDY:
SDC & MUSIC

CASE STUDY: SDC &
MUSIC

STORAGE MAKES THE PIPE SMARTER
Early broadband networks relied on ―big iron‖ in
large Network Operations Centers

CDNs moved content closer to ‖the edge‖ to
speed delivery and improve the user
experience

Today‘s wireless networks are facing similar
―last mile‖ issues

THE LAST NODE ON THE NETWORK
SanDisk storage and network intelligence can optimize network
traffic to deliver the best end user experience

UNIQUELY
SANDISK
Content
Licensing
Servers:
RT, M2M with
content owners
Software:
Mobile
Apps.
Firmware:
Hidden
Partitions Hardware:
& Caplets Trusted
Flash

THANK YOU

SANDISK 2010
We are taking a short lunch break.

The Investor Day Meeting will resume shortly.

SHUKI
NIR
Senior Vice President & General Manager,
Retail Business
SANDISK RETAIL:
LEADERSHIP WITH A PREMIUM

AGENDA
• The strength of our retail position

• The superiority of our brand and how
we are going to continue building it
• How our retail business will grow over
the next several years

THE STRENGTH
OF SANDISK RETAIL

A CLEAR #1 IN MARKET SHARE
U.S.
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
0
2
-1
-1
-1
-0
-0
-0
-0
-0
-0
-0
-0
-0
-1
-1
-1
08
08
08
09
09
09
09
09
09
09
09
09
09
09
09
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
SanDisk
Source: NPD Market Tracker, December 2009
The total market is made up of Flash cards and USB Flash drives.

EMEA
35%
30%
25%
20%
15%
10%
5%
0%
0
2
-1
-1
-1
-0
-0
-0
-0
-0
-0
-0
-0
-0
-1
-1
-1
08
08
08
09
09
09
09
09
09
09
09
09
09
09
09
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
SANDISK
Source: Gfk Europe, December 2009

JAPAN
25%
20%
15%
10%
5%
0%
0
2
-1
-1
-1
-0
-0
-0
-0
-0
-0
-0
-0
-0
-1
-1
-1
08
08
08
09
09
09
09
09
09
09
09
09
09
09
09
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
SanDisk
Source: Gfk Japan, December 2009


APAC
Source: Gfk Asia, December 2009


A CLEAR PREMIUM OVER COMPETITION
20%
18%
16%
14%
PRICE PREMIUM
12%
10%
8%
6%
4%
2%
0%
Average 2008-2009
APAC EMEA JAPAN U.S.

Source: NPD and GFK, 2009. SD 2GB selling prices

BROADEST PRODUCT LINE
DIGITAL IMAGING & VIDEO DIVERSE MARKET SEGMENTS
EXTREME PRO GAMING MOBILE COMPUTING AUDIO/VIDEO
EXTREME
ULTRA
STANDARD

ADDRESSING CONSUMER
SEGMENTS—IMAGING

ADDRESSING CONSUMER
SEGMENT—IMAGING
High
End
Pro DSLR
Prosumer
DSLR
Entry
DSLR
Featured-Rich Point & Shoot

High Megapixel
High Def Movie
Basic Point & Shoot

Everyday Consumer

SEGMENTATION PAYS OFF
Retail Imaging Revenue Units 2009
30%
70% Margin $ From Retail Imaging 2009
55%
45%
High Performance Standard

ADDRESSING CONSUMER NEEDS—
COMPUTING
Here‘s how:
SanDisk Ultra® Backup
USB Flash Drive
• The first to add a simple
customer backup* button to
the USB Flash Drive
• Adding Mac OS support to
transfer data between
computers
• Always have your valuable
files with you in a portable,
rugged solution
Note: Backup function currently works only with Windows operating system

ADDRESSING CONSUMER NEEDS—
COMPUTING
Here‘s how:
SanDisk® G3 SSD
• A true HDD replacement
that provides better
computing performance
• Highly reliable with long-
term data endurance

ADDRESSING CONSUMER
USE CASES—MOBILE

ADDRESSING CONSUMER
USE CASES—MOBILE
Here‘s how:
SanDisk® Media
Manager Application
• Take the guess work out
of transferring files to your
phone
• Easily find and browse all
your music and photos on
your PC

ADDRESSING CONSUMER
USE CASES—MOBILE
Here‘s how:
slotRadio+
• Most provide 1,000 songs
Billboard Decades
+ 4GB free memory space Handcrafted Playlists
to store your own content
• Phone application for
music playback and
discovery of the different
card genres
Billboard Hits
Handcrafted Playlists

SanDisk is the
premium brand in
memory cards in retail

SANDISK RECOGNIZED
AS LEADER BY CONSUMERS
79% of Shoppers answered

SanDisk first
2% of Shoppers mentioned some
other memory card brand first
19% of Shoppers related that they
were not sure/didn‘t know
Source: Imaging Cards in US Retail, an In-Store Market Research

by BrandTruth Marketplace Intelligence Services, 2009

SANDISK RECOGNIZED AS LEADER
BY STORE ASSOCIATES AS WELL
87% of associates
recommended SanDisk first
6% of associates recommended some
other memory card brand first
7% of associates related that they
were not sure/didn‘t know
Source: Imaging Cards in US Retail, an In-Store Market Research

by BrandTruth Marketplace Intelligence Services, 2009

SANDISK BRAND ―OWNS‖
THE LAST 10 FEET

WALMART—USA

ELDORADO—MOSCOW, RUSSIA

BIC YURAKUCHO—JAPAN

EZONE, STAPLES & JUMBO—INDIA

UNIEURO—ITALY

VARIOUS RETAILERS—ARGENTINA

SHARAF DG—DUBAI, UAE
February 25, 2010

BESTBUY—XUJIAHUI, CHINA

STATION OUTSIDE
BIC YURAKUCHO—JAPAN

OFFICE DEPOT—USA

DIXONS—HEATHROW AIRPORT, UK

IT MALL ROADSHOW—CHINA

SATURN—PARIS, FRANCE

EMAX—DUBAI, UAE
February 25, 2010

MEDIAMARKT—GERMANY
25 February 2010
TAOYUAN AIRPORT DFS—TAIWAN

PHOTO SPECIALTY CHANNEL—NY

ELIFE—SINGAPORE

MTR STATION—HONG KONG

HUB STATIONS—TOKYO, JAPAN

SANDISK BRAND ―OWNS‖
THE LAST 10 FEET
In More than 242,000 Stores

SanDisk retail business
will continue to grow
in the coming years

IMAGING MARKET PROJECTED TO
GROW FURTHER
• Most new camcorders using flash
• Most new digital cameras have an HD-Video function
Source: Chart created by SanDisk based on data from iSuppli, data flash Q4 Market Tracker, 1209, and Gartner Flash Card Forecast 11/09

USB MARKET PROJECTED TO
GROW FURTHER
• Ubiquity of USB Ports
• Additional use cases

STRONG MOBILE END MARKET
GROWTH PROJECTED
• More smart phones
• Greater need for storage on mobile phones

KEYS TO SUCCESS IN BRIC
 Local teams have the responsibility,

budgets and accountability
 Business model adjusted to the local
competitive landscape

 Products designed for the

specific market needs

 Marketing campaigns to enhance brand

awareness and premium
CHINA INDIA

SUMMARY
 SanDisk Retail is uniquely positioned with

– Clear market share leadership
– Clear price premium
– Broadest product line targeted at specific consumer segments
 The superiority of our brand
– Has been built in the last 10 feet
– Has leveraged the innovative and differentiated products coming
from SanDisk
– Will continue to leverage on in-store presence
 Our retail business will grow over the next several years through
– Continuous growth of imaging and computing
– Substantial growth in mobile
– Increasing our share in BRIC

JUDY
BRUNER
Executive Vice President, Administration
and Chief Financial Officer
FINANCIAL REVIEW

FINANCIAL REVIEW:
A PATH TO A PROMISING
FUTURE
• Growth and Earnings
Power Return
• Balancing Growth, Profits

and Cash Flow

DECISIVE ACTIONS AND STRONG
EXECUTION
• Sold ~20% captive capacity to Toshiba
Balanced supply/demand & strengthened financial position
• Reduced 1H09 fab utilization by >20% and stopped wafer capacity
expansion
Contributed to pricing recovery
• Streamlined into OEM/Retail units
Significantly reduced opex
• Channel diversification
2H09 OEM 56% of product revenue
• Strong execution in technology and operations
Continued product cost leadership
• Renewed Samsung license agreement
• Negotiated non-captive supply agreements
• Filed & received tax refund

REVENUE RECOVERS RAPIDLY IN 2009
• GBs sold up 116% Y/Y
• ASP/GB down 48% Y/Y
License/Royalty Product
$1.8B $2.3B $3.3B $3.9B $3.3B $3.6B

65% Growth 30% Growth 41% Growth 20% Growth 14% Decline 6% Growth
Q409
Revenue
$1.24B
+44% Y/Y
+33% Q/Q
Q2
Q1
Q2
Q1
Q1
Q4
Q1
Q3
Q4
Q3
Q4
Q2
Q3
Q4
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
2004 2005 2006 2007 2008 2009
Memory Unit
Growth by year 51% 24% 108% 75% 15% 26%

BY END MARKET, MOBILE & IMAGING
WERE THE PRIMARY DRIVERS OF
PRODUCT REVENUE GROWTH IN 2009
$700
$600
REVENUE IN MILLIONS
$500
$400
$300
$200
$100
$0
Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409
Mobile Imaging USB AV & Gaming Other Markets

BY CHANNEL, OEM DROVE PRODUCT
REVENUE GROWTH IN 2009
$700
$600
$500
REVENUE IN MILLIONS
$400
$300
$200
$100
$0
Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409
OEM Retail

RETAIL DEMAND STRONG IN APAC;
OPPORTUNITY REMAINS FOR RETAIL
RECOVERY IN AMERICAS/EMEA
UNIT SALES IN MILLIONS
2006 2007 2008 2009
Americas EMEA APAC

SIGNIFICANT CHANGE IN PRICING
TRENDS IN 2009
• SANDISK ASP/GB EXITS 2009 ABOVE Q109 LEVEL
15%
10%
SNDK Q/Q ASP/GB CHANGE
5%
0%
-5%
-10%
-15%
-20%
-25%
-30%
-35%
2005 2006 2007 2008 2009
Q1 Q2 Q3 Q4

COST REDUCTION EXCEEDS PRICE
DECLINE IN 2009, LEADING TO
IMPROVED GROSS MARGINS
-45%
-48%
-50%
-52%
-52%
-55% -55% -55%
-55% -54%
-58%
-60%
-60%
-62%
-65%
2005 2006 2007 2008 2009
Change in ASB/GB Change in Underlying Cost/GB (1)
(1) Underlying Cost/GB is calculated using Non-GAAP Cost of Sales, adjusted as follows:
2008: excludes inventory reserves, fab impairment charges, and accruals for 2009 fab underutilization
2009: excludes inventory reserve benefits, and includes all costs for 2009 fab underutilization

PRODUCT GROSS MARGIN
RETURNS TO HISTORIC HIGHS BY Q409
60%
45%
40%
36%
20%
0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
-20%
-40%
-60%
-80%
2005 2006 2007 2008 2009
Product GM % (1) Underlying Product GM % (2)
(1) 2006 - 2009 Product GM% is Non-GAAP excluding stock comp expense, amortization of acquisition-related intangible assets, and
purchase accounting adjustments.
(2) Underlying Product GM% is calculated using Non-GAAP Cost of Sales, adjusted as follows:
OPERATING EXPENSES
REDUCED 25% FROM 2008 TO 2009
$1,000 30%
$911
OPERATING EXPENSES, % OF TOTAL REVENUE

$900
$783 25%
OPERATING EXPENSES IN MILLIONS
$800
$681
$700
$577 20%
$600
$500 15%
$396
$400
10%
$300
$200
5%
$100
$0 0%
2005 2006 2007 2008 2009
Operating Expenses (1) Operating Expense as a % of Revenues
(1) 2006–2009 is Non-GAAP Operating Expense excluding stock comp expense, amortization of acquisition-related intangible assets,
purchase accounting adjustments, and impairments of goodwill and acquisition-related intangible assets.

REPORTED OPERATING MARGIN(1)
REACHES RECORD IN Q409
―$577― ―$685― ―$507― ―($783)― ―$629―
$600 40%
$400 20%
$200
0%
% REVENUE
$ IN MILLIONS
$0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -20%
($200)
-40%
($400)
($600) -60%
($800) -80%
2005 2006 2007 2008 2009
Operating Margin as a % of Total Revenue

(1) 2006–2009 is Non-GAAP Operating Margin excluding stock comp expense, amortization of acquisition-related intangible assets,
purchase accounting adjustments, and impairments of goodwill and acquisition-related intangible assets.

UNDERLYING OPERATING MARGIN(1)
RETURNS TO NEAR HISTORIC HIGH IN
Q409
30% 26.4% 25.9%
23.6%
UNDERLYING OPERATING MARGIN
21.3%
25.0% 17.9%
20% 23.0%
21.0%
10% 13.0%
0% 4.4%
-10% -5.4%
-20% -20.7%
-30%
2004 2005 2006 2007 2008 2009
Fiscal Year Fourth Quarter Only
(1)2006–2007 Product GM% is Non-GAAP excluding stock comp expense, amortization of acquisition-related intangible assets, and
purchase accounting adjustments.
2008–2009 Product GM% is underlying Product GM% calculated using Non-GAAP Cost of Sales, adjusted as follows:

ACHIEVED RECORD EPS(1) IN Q409
$2.00 $2.51 $1.73 $(2.07) $1.84 $0.92

$1.50 without
1.18 inventory
reserve
$1.00 0.87
0.75 benefits
0.68 0.69
0.55 0.58 0.61 0.54
$0.50 0.39 0.37 0.44
0.30
0.21
0.36
0.19
$0.00
(0.10)
($0.50) (0.48)
(0.59)
($1.00)
($1.50)
(1.59)
($2.00)
2005 2006 2007 2008 2009
Q1 Q2 Q3 Q4
(1) 2006–2009 is Non-GAAP EPS excluding stock comp expense, amortization of acquisition-related intangible assets,
purchase accounting adjustments, impairment of goodwill and acquisition-related intangible assets, non-cash economic
interest expense, and related tax adjustments and valuation allowance. Note: EPS in Q1 2000 was higher than in Q4
2009 due to a gain on an investment in foundry.

INVENTORY TURNS
IMPROVE SIGNIFICANTLY Y/Y
• Factors included: JV Restructuring; Fab Slowdown and
No Capacity Additions; Process Improvements; Sales Growth
6.0
INVENTORY TURNS MEASURED IN PBs
5.0
4.0
3.0
2.0
1.0
0.0
Q408 Q109 Q209 Q309 Q409
Includes SanDisk Owned Inventory: Raw Material, WIP, Finished Goods and Retail & OEM Consignment

RETURNED TO POSITIVE
FREE CASH FLOW
• Q4 Cash Flow from Operations and 2009 FCF were Highest Ever
2005 2006 2007 2008 2009
$653
$598
$481 $488
$438
$ in Millions
$263 $259
$88
($49)
($219) ($247)
($339) ($338)
($426)
($900)
Cash Flow from Operations Cash Used in Investing Free Cash Flow
Cash Used in Investing excludes purchases, sales and maturities of short-term and long-term marketable securities.

2009: NET CASH INCREASED AND
OFF-B.S. LEASE GUARANTEES REDUCED
• A Net Improvement of $1.5B
• SanDisk is Calling its $75M Convertible as of March 15, 2010
Cash & Marketable Securities Debt (1) Net Cash (2)
$3,500
$3,000
$ IN MILLIONS
$2,500
$2,000
$1,500
$1,000
$500
$0
2006 2007 2008 2009
Off-Balance Sheet
Equipment Lease
Guarantees (Mil)
$654 $1139 $2095 $1070
(1) Debt includes the final maturity value for $1.15B Convertible and $75M Convertible
(2) Net Cash is Cash & Marketable Securities less Debt

GROWTH AND EARNINGS
POWER RETURN
• Decisive actions & strong execution drove rapid
recovery in 2009:
– Revenue up 6%
– Began year in a loss position, exited year at record
profit levels
– Generated highest ever positive free cash flow
– Balance sheet and financial position strengthened

FINANCIAL REVIEW:
A PATH TO A PROMISING
FUTURE
• Growth and Earnings
Power Return
• Balancing Growth, Profits

and Cash Flow

2010 CAPITAL INVESTMENTS:
MODERATE AND AFFORDABLE
Over 7 years:
• JV operating cash flow & return of capital funds ~28% of fab capex
• Operating lease financing funds ~42% of fab capex—very attractive
cost of capital
$ in Millions ACTUAL FORECAST 7-YEAR TOTAL
CAPITAL INVESTMENTS FY ′04 FY ′05 FY ′06 FY ′07 FY ′08 FY ′09 FY ′10 w/′10 midpt
Fab 1 & 2 33 91 15 139
Fab 3 23 519 905 899 260 69 200 2,875
Fab 4 4 700 1,174 241 400–600 2,618
TOTAL JOINT VENTURE FABS $ 56 $610 $ 924 $1,599 $1,433 $310 $600–$800 $5,632
SanDisk Owned Fab Equipment 63 39 102
Other SanDisk CapEx 63 95 176 259 184 60 100 937
TOTAL CAPITAL INVESTMENTS $182 $744 $1,100 $1,858 $1,617 $370 $700–$900 $6,672
FUNDING FY ′04 FY ′05 FY ′06 FY ′07 FY ′08 FY ′09 FY ′10 w/′10 midpt
Sale of Tools/Restructuring 39 277 316
JV Oper Cash Flow/Return of Capital 328 237 374 207 55 300–400 1,551
JV Operating Lease Financing 225 482 612 945 0 100 2,365
Net Cash Outlay 182 191 381 872 426 38 300–400 2,440
TOTAL FUNDING $182 $744 $1,100 $1,858 $1,617 $370 $700–$900 $6,672

CAPITAL INVESTMENT—
A MODERATE % OF REVENUE FOR 2010
Over the Long-Term, we Target an Average of 20%-30% of Revenue to
Balance Growth and Positive Free Cash Flow
$2,000 60%
$1,800 48%
48%
50%
$1,600
$ in Millions
% of Revenue
$1,400
40%
34%
$1,200 32%
$1,000 30%
$1,858
$800 $1,617
~20%
20%
$600 $1,100
10% 10%
$400 $744 $700-$900
10%
$200 $370
$182
$0 0%
2004 2005 2006 2007 2008 2009 2010
Capital Investments % of Revenue
Capital Investments are funded by: JV Operating Cash Flow/Return of Capital, JV Operating Lease
Financing and Net Cash Outlay

DEFINING SANDISK‘S LONG-TERM
TARGET FINANCIAL MODEL (LTFM)
 The LTFM is the P&L model we believe best balances:
– Growth, profitability & cash flow
 The LTFM is the P&L model we aim to achieve
 We will not be in the LTFM every year
– Industry & SanDisk subject to cyclicality
– In some years we will be below the LTFM, and in some years we will
exceed the LTFM

KEY VARIABLES IMPACTING
OUR BUSINESS MODEL
• Variability in Pricing
–Industry supply/demand environment a key factor
• Timing of Technology Transitions and Mix of X2/X3
–Strong track record of execution
–Leader in X3
• Mix of Product Revenue and L&R Revenue
–Product revenue currently growing faster than L&R revenue
• Mix of Captive/Non-Captive Memory
–Higher non-captive mix results in:
•Lower gross margins
•Less capital investment required to meet demand
• Investment in Post-NAND technology
–Requires parallel R&D spending

DEFINING SANDISK‘S LTFM
$ in Millions 2005 2006 2007 2008 2009 LTFM
Revenue $2,306 $3,258 $3,896 $3, 351 $3,567
Revenue Growth Y/Y 30% 41% 20% -14% 6%
Product Revenue 90% 90% 88% 85% 88% 92%–93%
L&R Revenue 10% 10% 12% 15% 12% 7%–8%
TOTAL REVENUE 100% 100% 100% 100% 100% 100%
Product Gross Margin (1) 35.5% 31.8% 24.3% -13.4% 28.4% 30%–36%
Total Gross Margin (1) 42.2% 38.8% 33.1% 3.8% 36.7% 35%–41%
R&D (1) 8.4% 8.2% 9.5% 11.7% 9.8% 7%–9%
S&M (1) 5.3% 5.6% 6.7% 9.2% 5.3% ~5%
G&A (1) 3.4% 4.0% 3.7% 5.3% 4.0% ~3%
Restructuring 0.2% 1.1%
Operating Expenses (1) 17.2% 17.7% 20.1% 27.2% 19.1% 15%–17%
OPERATING INCOME (1) 25.0% 21.0% 13.0% -23.4% 17.6% 20%–24%
(1) 2006–2009 and LTFM is Non-GAAP excluding stock comp expense, amortization of acquisition-related intangible assets,
purchase accounting adjustments, and impairment of goodwill and acquisition-related intangible assets.

PLANNING ASSUMPTIONS FOR 2010
• Healthy supply/demand balance in industry

• Mobile end market remains key growth driver
• Consumer demand in U.S. and Europe remains somewhat muted
• Completing 32nm transition; beginning 24nm ramp in Q410
• Price decline less than estimated cost decline
• Close reins on spending; modest increases weighted toward R&D
• Limited use of non-captive memory, but could increase if demand
is stronger

FORECAST FOR 2010
• Objective is to be within LTFM
$in Millions LTFM FCST 2010
Revenue $4,000–$4,400
Revenue Growth Y/Y 12%–23%
Product Revenue 92%–93% ~92%
L&R Revenue 7%–8% ~8%
Total Revenue 100% 100%
Product Gross Margin (1) 30%–36% 28%–34%
Total Gross Margin (1) 35%–41% 34%–40%
R&D (1) 7%–9%
S&M (1) ~5%
G&A (1) ~3%
Restructuring
$725–$750
Operating Expenses (1) 15%–17% 16% –19%
15%–24%
OPERATING INCOME (1) 20%–24% Objective 20%+
(1) Non-GAAP excluding stock comp expense, amortization of acquisition-related intangible assets, purchase
accounting adjustments, and impairment of goodwill and acquisition-related intangible assets.

POSITIVE FREE CASH FLOW
EXPECTED IN 2010
2009 2010
CASH FLOW FROM OPERATIONS $488 At least as much as 2009
CASH USED FOR INVESTING ($49) ($300)–($400)
FREE CASH FLOW $438 Positive Free Cash Flow
COMPARED
KEY FACTORS IN 2010 FORECASTED CASH FLOW FROM OPERATIONS: TO 2009
Underlying Gross Margin forecasted to be much higher Higher
Tax will be a net payment (vs. net refund in 2009) Lower
Inventory Turns forecasted to improve further Higher

UPDATE ON Q1 2010
• Pricing environment remains more favorable than in past Q1s

• OEM demand stronger than previously expected
JAN 28, 2010 GUIDANCE FEB 26, 2010 UPDATE

• Total Revenue $875M–$950M • Total Revenue of $925M–$1.0B
– L&R revenue $80M–$90M – Upside in product revenue
– Product revenue $785M–$870M
• Prod GM%(1): 31% +/- 3 points • Prod GM%(1): 34% +/- 2 points
• Total GM%(1): 37% +/- 3 points • Total GM%(1): 40% +/- 2 points
• Opex(1): $175–$185M • Opex(1): no change
• Other Income(1): ~$10M • Other Income(1): no change
• Tax rate(1): 37% • Tax rate(1): no change
(1) Non-GAAP GM, Opex, Other Income and Tax rate exclude: stock comp expense, amortization of acquisition-related intangible
assets, non-cash economic interest expense and related tax adjustments and valuation allowance.

SUMMARY: A PATH TO A PROMISING
FUTURE
• Growth and earnings power have returned
• Focused on balancing growth, profits and cash flow
– Capital investments sized to enable growth and
free cash flow
– LTFM helps guide our strategic decisions
– Objective is to be in our LTFM in 2010

THANK YOU

ELI
HARARI
Chairman and Chief Executive Officer

SUMMARY: FLASH IS EVERYWHERE,
WILL BE BIGGER THAN YOU THINK!
• FLASH UBIQUITOUS, AND GROWING
• SMARTPHONE = ―NEW PC‖ FLASH SSD
• ―MOBILE INTERNET IN EARLY INNINGS, WILL BE BIGGER THAN

YOU THINK‖ (Morgan Stanley*)
• CLOUD COMPUTING: LAST NODE ON NETWORK, IN YOUR

POCKET
• HIGHLY SCALED FLASH GETTING HARD TO DO WELL,

SYSTEM SOLUTIONS BECOMING KEY PLAYING TO OUR
STRENGTHS
Source: December 15, 2009, The Mobile Internet Report Mary Meeker © 2009 Morgan Stanley

Q&A

APPENDICES
• Basis of Presentation for Non-GAAP to
GAAP Reconciliations
• Non-GAAP to GAAP Reconciliations
for Historical Results
• Non-GAAP to GAAP Reconciliations
for Forecasts

BASIS OF PRESENTATION FOR GAAP TO
NON-GAAP OPERATING RESULTS
To supplement our condensed consolidated financial statements presented in accordance with generally accepted
accounting principles (GAAP), we use non-GAAP measures of operating results, net income (loss) and net income
(loss) per share, which are adjusted from results based on GAAP to exclude certain expenses, gains and losses.
These non-GAAP financial measures are provided to enhance the user's overall understanding of our current
financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful
information to both management and investors as these non-GAAP results exclude certain expenses, gains and
losses that we believe are not indicative of our core operating results and because it is consistent with the financial
models and estimates published by many analysts who follow the Company. For example, because the non-GAAP
results exclude the expenses we recorded for share-based compensation, the amortization of acquisition-related
intangible assets related to acquisitions of Matrix Semiconductor, Inc. in January 2006, msystems Ltd. in November
2006 and MusicGremlin, Inc. in June 2008, the impairment of goodwill and acquisition-related intangible assets, and
non-cash economic interest expense associated with our cash-settled convertible debt, we believe the inclusion of
non-GAAP financial measures provide consistency in our financial reporting. These non-GAAP results are some of
the primary indicators management uses for assessing our performance, allocating resources and planning and
forecasting future periods. Further, management uses non-GAAP information that excludes certain non-cash
charges, such as impairment of goodwill and acquisition-related intangible assets, amortization of purchased
intangible assets, share-based compensation and non-cash economic interest expense associated with our cash-
settled convertible debt, as these non-GAAP charges do not reflect the cash operating results of the business or the
ongoing results. These measures should be considered in addition to results prepared in accordance with GAAP,
but should not be considered a substitute for, or superior to, GAAP results. These non-GAAP measures may be
different than the non-GAAP measures used by other companies.

RECONCILIATION OF NON-GAAP TO GAAP STATEMENT OF OPERATIONS
Three months ended April 2, 2006
(in thousands, except percentages and per share amounts, unaudited)
SanDisk Purchase SanDisk

Consolidated % of Share-based Accounting Consolidated % of
Non-GAAP Revenue Compensation Adjustments GAAP Revenue
Product revenue $ 537,728 86.3% $ - $ - $ 537,728 86.3%
License and royalty revenue 85,532 13.7% - - 85,532 13.7%
Total revenues 623,260 100.0% - - 623,260 100.0%
Cost of product revenues 384,867 61.8% - - 384,867 61.8%

Total cost of product revenues 384,867 61.8% - - 384,867 61.8%
Product gross profit 152,861 28.4% - - 152,861 28.4%

Gross profit 238,393 38.2% - - 238,393 38.2%
Research and development 54,976 8.8% 8,786 - 63,762 10.2%

Sales and marketing 39,336 6.3% 4,039 - 43,375 7.0%
General and administrative 24,055 3.9% 5,961 - 30,016 4.8%
Write-off of acquired in-process technology - 0.0% - 39,600 (a) 39,600 6.4%
Amortization of acquisition-related intangible assets - 0.0% - 3,715 (b) 3,715 0.6%
Total operating expenses 118,367 19.0% 18,786 43,315 180,468 29.0%
Operating income 120,026 19.3% (18,786) (43,315) 57,925 9.3%
Total other income 18,464 3.0% - - 18,464 3.0%

Income before taxes 138,490 22.2% (18,786) (43,315) 76,389 12.3%
Provision for income taxes 48,472 7.8% (5,845) (c) (1,353) (c) 41,274 6.6%
Net income $ 90,018 14.4% $ (12,941) $ (41,962) $ 35,115 5.6%
Net income per share, diluted $ 0.44 $ 0.17
Diluted shares used in computing net income per share 203,302 201,892
Effective tax rate 35.0% 54.0%
(a) Write-off of acquired in-process technology associated with the Matrix acquisition (January 2006).
(b) Amortization of acquisition-related intangible assets, primarily core and developed technology related to acquisitions of Matrix Semiconductor, Inc. (January 2006).
(c) Income taxes associated with certain non-GAAP adjustments.
Three months ended July 2, 2006
SanDisk Purchase Convertible SanDisk

Consolidated % of Share-based Accounting Debt Consolidated % of
Non-GAAP Revenue Compensation Adjustments Interest GAAP (d) Revenue
Product revenue $ 636,675 88.5% $ - $ - $ - $ 636,675 88.5%
License and royalty revenue 82,510 11.5% - - - 82,510 11.5%
Total revenues 719,185 100.0% - - - 719,185 100.0%
Cost of product revenues 427,699 59.5% 2,478 - - 430,177 59.8%

Total cost of product revenues 427,699 59.5% 2,478 - - 430,177 59.8%
Product gross profit 208,976 32.8% (2,478) - - 206,498 32.4%

Gross profit 291,486 40.5% (2,478) - - 289,008 40.2%
Research and development 63,364 8.8% 10,421 - - 73,785 10.3%

Sales and marketing 39,942 5.6% 5,125 - - 45,067 6.3%
General and administrative 29,336 4.1% 7,846 - - 37,182 5.2%
Amortization of acquisition-related intangible assets - 0.0% - 4,432 (a) - 4,432 0.6%
Total operating expenses 132,642 18.4% 23,392 4,432 - 160,466 22.3%
Operating income 158,844 22.1% (25,870) (4,432) - 128,542 17.9%
Total other income 22,013 3.1% - - (5,734) (c) 16,279 2.3%

Income before taxes 180,857 25.1% (25,870) (4,432) (5,734) 144,821 20.1%
Provision for income taxes 63,299 8.8% (6,667) (b) (1,718) (b) (1,855) (b) 53,059 7.6%
Net income $ 117,558 16.3% $ (19,203) $ (2,714) $ (3,879) $ 91,762 12.5%
(a) Amortization of acquisition-related intangible assets, primarily core and developed technology related to acquisition of Matrix Semiconductor, Inc. (January 2006).
(b) Income taxes associated with certain non-GAAP adjustments.
(c) Incremental interest expense relating to the non-cash economic interest expense associated with the Company's cash-settled convertible debt.
(d) As adjusted for the retroactive adoption of new accounting requirements, effective December 29, 2008, relating to non-cash economic interest expense associated with the Company's cash-settled convertible debt.

Three months ended October 1, 2006

Product revenue $ 673,189 89.6% $ - $ - $ - $ 673,189 89.6%
Total revenues 751,385 100.0% - - - 751,385 100.0%

Total cost of product revenues 452,724 60.3% 2,621 - - 455,345 60.6%
Product gross profit 220,465 32.7% (2,621) - - 217,844 32.4%

Gross profit 298,661 39.7% (2,621) - - 296,040 39.4%


Net income $ 123,614 16.5% $ (17,572) $ (2,761) $ (7,242) $ 96,039 12.3%
(a) Amortization of acquisition-related intangible assets, primarily core and developed technology related to acquisition of Matrix Semiconductor, Inc. (January 2006).

Three months ended December 31, 2006

Non-GAAP Revenue Compensation Adjustments Interest GAAP (e) Revenue
Product revenue $ 1,078,880 92.7% $ - $ - $ - $ 1,078,880 92.7%
Total revenues 1,163,695 100.0% - - - 1,163,695 100.0%
Cost of product revenues 729,932 62.7% 2,892 4,471 - 737,295 63.4%

Amortization of acquisition-related intangible assets - - - 10,368 (a) - 10,368 0.9%
Total cost of product revenues 729,932 62.7% 2,892 14,839 - 747,663 64.2%
Product gross profit 348,948 32.3% (2,892) (14,839) - 331,217 30.7%

Gross profit 433,763 37.3% (2,892) (14,839) - 416,032 35.8%

Write-off of acquired in-process technology - 0.0% - 186,000 (b) - 186,000 16.0%
Total other income 31,674 2.7% - - (10,913) (d) 20,761 1.8%

Provision for income taxes 86,409 7.4% (7,689) (c) (1,984) (c) (3,531) (c) 73,205 5.8%
Income (loss) after tax 193,289 16.6% (23,103) (203,708) (7,382) (40,904) -3.1%
Non-controlling interests 1,619 0.1% - - - 1,619 0.1%
Net income (loss) $ 191,670 16.5% $ (23,103) $ (203,708) $ (7,382) $ (42,523) -3.2%
Net income (loss) per share, diluted $ 0.87 $ (0.20)
Diluted shares used in computing net income (loss) per share 220,090 210,849
(a) Amortization of acquisition-related intangible assets, primarily core and developed technology related to acquisitions of Matrix Semiconductor, Inc. (January 2006) and msystems Ltd. (November 2006).
(b) Write-off of acquired in-process technology associated with the msystems Ltd. acquisition.
(d) Incremental interest expense relating to the non-cash economic interest expense associated with the Company's cash-settled convertible debt.
Page
(e) As228
adjusted for the retroactive adoption of new accounting requirements, effective December 29, 2008,Investor Day |economic
relating to non-cash February 26, 2010
interest expense associated with the Company's cash-settled convertible debt.
Twelve months ended December 31, 2006

Non-GAAP Revenue Compensation Adjustments Interest GAAP (e) Revenue
Product revenue $ 2,926,472 89.8% $ - $ - $ - $ 2,926,472 89.8%
Total revenues 3,257,525 100.0% - - - 3,257,525 100.0%
Cost of product revenues 1,995,222 61.2% 7,991 4,471 - 2,007,684 61.6%

Total cost of product revenues 1,995,222 61.2% 7,991 14,839 - 2,018,052 62.0%

Gross profit 1,262,303 38.8% (7,991) (14,839) - 1,239,473 38.0%

Write-off of acquired in-process technology - 0.0% - 225,600 (b) - 225,600 6.9%
Total other income 104,374 3.2% - - (27,353) (d) 77,021 2.4%

Provision for income taxes 264,741 8.1% (27,822) (c) (6,726) (c) (8,850) (c) 221,343 6.8%
Income after tax 524,479 16.1% (72,819) (251,145) (18,503) 182,012 5.6%
Net income $ 522,860 16.1% $ (72,819) $ (251,145) $ (18,503) $ 180,393 5.5%
(a) Amortization of acquisition-related intangible assets, primarily core and developed technology related to acquisitions of Matrix Semiconductor, Inc. (January 2006) and msystems Ltd. (November 2006).
(b) Write-off of acquired in-process technology associated with the Matrix and msystems Ltd. acquisitions.
(e) As
Page adjusted for the retroactive adoption of new accounting requirements, effective December 29, 2008,
229 relating to non-cash
Investor Day |economic interest expense
February associated with the Company's cash-settled convertible debt.
26, 2010
Three months ended April 1, 2007

Product revenue $ 689,357 87.7% $ - $ - $ - $ 689,357 87.7%
Total revenues 786,086 100.0% - - - 786,086 100.0%


Gross profit 224,159 28.5% (3,214) (26,009) - 194,936 24.8%

Restructuring and other 6,516 0.8% - - - 6,516 0.8%
Operating income (loss) 46,811 6.0% (31,219) (35,109) - (19,517) -2.5%

Income (loss) after tax 49,995 6.4% (20,230) (25,180) (5,640) (1,055) -0.1%
Net income (loss) $ 44,835 5.7% $ (20,230) $ (25,180) $ (5,640) $ (6,215) -0.8%
Net income (loss) per share, diluted $ 0.19 $ (0.03)
Diluted shares used in computing net income (loss) per share 236,426 227,455
(a) Amortization of acquisition-related intangible assets, primarily core and developed technology related to acquisitions of Matrix Semiconductor, Inc. (1/06) and msystems Ltd. (11/06).
Three months ended July 1, 2007

Product revenue $ 719,991 87.1% $ - $ - $ - $ 719,991 87.1%
Total revenues 827,032 100.0% - - - 827,032 100.0%


Gross profit 243,722 29.5% (3,307) (16,702) - 223,713 27.1%

Restructuring and other 212 0.0% - - - 212 0.0%

Income after tax 71,893 8.7% (23,698) (19,660) (6,556) 21,979 2.7%
Non-controlling interests 51 0.0% - - - 51 0.0%
Net income $ 71,842 8.7% $ (23,698) $ (19,660) $ (6,556) $ 21,928 2.7%
Three months ended September 30, 2007

Product revenue $ 918,810 88.6% $ - $ - $ - $ 918,810 88.6%
Total revenues 1,037,423 100.0% - - - 1,037,423 100.0%


Gross profit 361,064 34.8% (4,162) (14,582) - 342,320 33.0%


Provision for income taxes 61,857 6.0% (11,613) (b) 3,469 (b) (3,548) (b) 50,165 4.8%
Income after tax 129,803 12.5% (22,514) (22,651) (7,989) 76,649 7.4%
Non-controlling interests - 0.0% - - - - 0.0%
Net income $ 129,803 12.5% $ (22,514) $ (22,651) $ (7,989) $ 76,649 7.4%

Product revenue $ 1,117,967 89.7% $ - $ - $ - $ 1,117,967 89.7%
Total revenues 1,245,825 100.0% - - - 1,245,825 100.0%


Gross profit 460,392 37.0% (4,060) (14,582) - 441,750 35.5%


Provision for income taxes 79,387 6.4% 6,504 (b) (518) (b) (4,216) (b) 81,157 6.5%
Income after tax 161,629 13.0% (37,197) (18,622) (7,556) 98,254 7.9%
Non-controlling interests - 0.0% - - - - 0.0%
Net income $ 161,629 13.0% $ (37,197) $ (18,622) $ (7,556) $ 98,254 7.9%

Product revenue $ 3,446,125 88.4% $ - $ - $ - $ 3,446,125 88.4%
Total revenues 3,896,366 100.0% - - - 3,896,366 100.0%
Cost of product revenues 2,607,029 66.9% 14,743 7,066 - 2,628,838 67.5%

Total cost of product revenues 2,607,029 66.9% 14,743 71,875 - 2,693,647 69.1%

Gross profit 1,289,337 33.1% (14,743) (71,875) - 1,202,719 30.9%


Income after tax 413,320 10.6% (103,639) (86,113) (27,741) 195,827 5.0%
Net income $ 408,109 10.5% $ (103,639) $ (86,113) $ (27,741) $ 190,616 4.9%
Net income per share calculation:

Net income used in computing basic net income per share $ 408,109 $ 190,616
Tax-effected interest costs related to convertible long term debt 469 469
Net income used in computing diluted net income per share $ 408,578 $ 191,085
Three months ended March 30, 2008

Product revenue $ 724,051 85.2% $ - $ - $ - $ 724,051 85.2%
Total revenues 849,967 100.0% - - - 849,967 100.0%


Gross profit 276,992 32.6% (3,629) (14,582) - 258,781 30.4%


Net income $ 47,786 5.6% $ (15,188) $ (14,718) $ (6,920) $ 10,960 1.3%

Three months ended June 29, 2008

Product revenue $ 687,508 84.3% $ - $ - $ - $ 687,508 84.3%
Total revenues 816,011 100.0% - - - 816,011 100.0%


Gross profit 167,462 20.5% (2,009) (14,582) - 150,871 18.5%

Operating loss (56,989) -7.0% (25,108) (19,135) - (101,232) -12.4%

Loss before taxes (36,447) -4.5% (25,108) (19,135) (12,219) (92,909) -11.4%
Benefit from income taxes (14,106) -1.7% 652 (b) 641 (b) (6,342) (b) (19,155) -2.3%
Net loss $ (22,341) -2.7% $ (25,760) $ (19,776) $ (5,877) $ (73,754) -9.0%
Net loss per share, diluted $ (0.10) $ (0.33)
Diluted shares used in computing net loss per share 224,888 224,888
(a) Amortization of acquisition-related intangible assets, primarily core and developed technology related to acquisitions of Matrix Semiconductor, Inc. (January 2006), msystems Ltd. (November 2006),
and MusicGremlin, Inc. (June 2008).


Product revenue $ 689,556 83.9% $ - $ - $ - $ 689,556 83.9%
Total revenues 821,497 100.0% - - - 821,497 100.0%

Product gross loss (120,628) -17.5% (2,648) (14,582) - (137,858) -20.0%

Gross profit (loss) 11,313 1.4% (2,648) (14,582) - (5,917) -0.7%

Operating loss (205,294) -25.0% (25,551) (19,348) - (250,193) -30.5%
Total other loss (450) -0.1% - - (12,451) (c) (12,901) -1.6%

Loss before taxes (205,744) -25.0% (25,551) (19,348) (12,451) (263,094) -32.0%
Benefit from income taxes (73,656) -9.0% (10,853) (b) (10,940) (b) (1,746) (b) (97,195) -11.8%
Net loss $ (132,088) -16.1% $ (14,698) $ (8,408) $ (10,705) $ (165,899) -20.2%


Non-GAAP Revenue Compensation Adjustments Interest Impairments GAAP (e) Revenue
Product revenue $ 742,128 85.9% $ - $ - $ - $ - $ 742,128 85.9%
License and royalty revenue 121,749 14.1% - - - - 121,749 14.1%
Total revenues 863,877 100.0% - - - - 863,877 100.0%
Cost of product revenues 1,191,270 137.9% 2,489 - - - 1,193,759 138.2%

Amortization of acquisition-related intangible assets - - - 10,766 (a) - - 10,766 1.2%
Total cost of product revenues 1,191,270 137.9% 2,489 10,766 - - 1,204,525 139.4%
Product gross loss (449,142) -60.5% (2,489) (10,766) - - (462,397) -62.3%

Gross loss (327,393) -37.9% (2,489) (10,766) - - (340,648) -39.4%
Research and development 91,651 10.6% 10,161 - - - 101,812 11.8%

Sales and marketing 77,839 9.0% 4,587 - - - 82,426 9.5%
General and administrative 39,509 4.6% 6,677 - - - 46,186 5.3%
Impairment of goodwill - 0.0% - - - 845,453 (d) 845,453 97.9%
Impairment of acquisition-related intangible assets - 0.0% - - - 175,785 (d) 175,785 20.3%
Amortization of acquisition-related intangible assets - 0.0% - 3,275 (a) - - 3,275 0.4%
Restructuring and other 31,382 3.6% - - - - 31,382 3.6%
Total operating expenses 240,381 27.8% 21,425 3,275 - 1,021,238 1,286,319 148.9%
Operating loss (567,774) -65.7% (23,914) (14,041) - (1,021,238) (1,626,967) -188.3%
Total other income 24,472 2.8% - - (12,673) (c) - 11,799 1.4%

Loss before taxes (543,302) -62.9% (23,914) (14,041) (12,673) (1,021,238) (1,615,168) -187.0%
Provision for (benefit from) income taxes (183,971) -21.3% (12,065) (b) (7,084) (b) (106,327) (b) 452,210 (b) 142,763 16.5%
Net loss $ (359,331) -41.6% $ (11,849) $ (6,957) $ 93,654 $ (1,473,448) $ (1,757,931) -203.5%
Effective tax rate 33.9% -8.8%
(b) Income taxes associated with certain non-GAAP adjustments and an allowance on deferred taxes.
(d) Impairment of goodwill and acquisition-related intangible assets primarily related to acquisitions of Matrix Semiconductor, Inc. (January 2006), msystems Ltd. (November 2006), MusicGremlin, Inc. (June 2008).
(e) As adjusted for the retrospective adoption of new accounting requirements, effective December 29, 2008, relating to non-cash economic interest expense associated with the Company's cash-settled convertible debt.


Non-GAAP Revenue Compensation Adjustments Interest Impairments GAAP (e) Revenue
Product revenue $ 2,843,243 84.8% $ - $ - $ - $ - $ 2,843,243 84.8%
License and royalty revenue 508,109 15.2% - - - - 508,109 15.2%
Total revenues 3,351,352 100.0% - - - - 3,351,352 100.0%
Cost of product revenues 3,222,978 96.2% 10,775 - - - 3,233,753 96.5%

Total cost of product revenues 3,222,978 96.2% 10,775 54,512 - - 3,288,265 98.1%

Gross profit 128,374 3.8% (10,775) (54,512) - - 63,087 1.9%

Impairment of goodwill - 0.0% - - - 845,453 (d) 845,453 25.2%
Impairment of acquisition-related intangible assets - 0.0% - - - 175,785 (d) 175,785 5.2%
Restructuring and other 35,467 1.1% - - - - 35,467 1.1%
Total operating expenses 911,236 27.2% 87,024 17,069 - 1,021,238 2,036,567 60.8%
Operating loss (782,862) -23.4% (97,799) (71,581) - (1,021,238) (1,973,480) -58.9%
Total other income 70,446 2.1% - - (49,340) (c) - 21,106 0.6%

Loss before taxes (712,416) -21.3% (97,799) (71,581) (49,340) (1,021,238) (1,952,374) -58.3%
Provision for (benefit from) income taxes (246,442) -7.4% (30,304) (b) (21,722) (b) (119,492) (b) 452,210 (b) 34,250 1.0%
Net loss $ (465,974) -13.9% $ (67,495) $ (49,859) $ 70,152 $ (1,473,448) $ (1,986,624) -59.3%
(b) Income taxes associated with certain non-GAAP adjustments and an allowance on deferred taxes.
(d) Impairment of goodwill and acquisition-related intangible assets primarily related to acquisitions of Matrix Semiconductor, Inc. (January 2006), msystems Ltd. (November 2006), MusicGremlin, Inc. (June 2008).
(e) As adjusted for the retrospective adoption of new accounting requirements, effective December 29, 2008, relating to non-cash economic interest expense associated with the Company's cash-settled convertible debt.

Three months ended March 29, 2009
Purchase Convertible
% of Share-based Accounting Debt % of
Non-GAAP Revenue Compensation Adjustments Interest Other GAAP Revenue
Product revenues $ 588,099 89.2% $ - $ - $ - $ - $ 588,099 89.2%
License and royalty revenues 71,372 10.8% - - - - 71,372 10.8%
Total revenues 659,471 100.0% - - - - 659,471 100.0%
Cost of product revenues 655,104 99.3% 2,374 - - - 657,478 99.7%

Total cost of product revenues 655,104 99.3% 2,374 3,132 - - 660,610 100.2%

Gross profit (loss) 4,367 0.7% (2,374) (3,132) - - (1,139) -0.2%

Amortization of acquisition-related intangible assets - - - 292 (a) - - 292 0.0%
Restructuring and other 765 0.1% - - - - 765 0.1%
Total operating expenses 149,948 22.8% 13,956 292 - - 164,196 24.9%
Operating loss (145,581) -22.1% (16,330) (3,424) - - (165,335) -25.1%
Other income/(expense) (5,767) -0.8% - - (12,926) (b) - (18,693) -2.8%

Loss before income taxes (151,348) -22.9% (16,330) (3,424) (12,926) - (184,028) -27.9%
Provision for (benefit from) income taxes (42,885) -6.5% (4,511) (1,268) (4,791) 77,422 (c) 23,967 3.6%
Net loss $ (108,463) -16.4% $ (11,819) $ (2,156) $ (8,135) $ (77,422) $ (207,995) -31.5%
(a) Amortization of acquisition-related intangible assets, primarily core and developed technology related to acquisitions of Matrix Semiconductor, Inc. (1/06) and MusicGremlin, Inc. (6/08).
(b) Incremental interest expense relating to the non-cash economic interest expense associated with the Company's cash-settled convertible debt.
(c) Income taxes associated with certain non-GAAP to GAAP adjustments.

Three months ended June 28, 2009
Total revenues 730,573 100.0% - - - - 730,573 100.0%
Cost of product revenues 475,998 65.2% 2,446 - - - 478,444 65.5%

Total cost of product revenues 475,998 65.2% 2,446 3,132 - - 481,576 65.9%
Product gross profit 134,434 22.0% (2,446) (3,132) - - 128,856 21.1%

Gross profit 254,575 34.8% (2,446) (3,132) - - 248,997 34.1%

Amortization of acquisition-related intangible assets - 0.0% - 291 (a) - - 291 0.0%
Operating income 94,219 12.9% (22,354) (3,423) - - 68,442 9.4%
Other income (expense) 17,875 2.4% - - (13,159) (b) - 4,716 0.6%

Income before income taxes 112,094 15.3% (22,354) (3,423) (13,159) - 73,158 10.0%
Provision for income taxes 29,146 3.9% (6,175) (1,270) (4,877) 3,827 (c) 20,651 2.8%
Net income $ 82,948 11.4% $ (16,179) $ (2,153) $ (8,282) $ (3,827) $ 52,507 7.2%
(a) Amortization of acquisition-related intangible assets, primarily core and developed technology related to acquisitions of Matrix Semiconductor, Inc. (1/06) and MusicGremlin, Inc. (6/08).
(b) Incremental interest expense relating to the non-cash economic interest expense associated with the Company's cash-settled convertible debt.
(c) Income taxes associated with certain non-GAAP to GAAP adjustments.

Total revenues 935,171 100.0% - - - - 935,171 100.0%
Cost of product revenues 493,422 60.6% (a) 2,347 - - - 495,769 60.9%

Amortization of acquisition-related intangible assets - 0.0% (a) - 3,132 (b) - - 3,132 0.4%
Total cost of product revenues 493,422 60.6% (a) 2,347 3,132 - - 498,901 61.3%
Product gross profit 320,389 39.4% (a) (2,347) (3,132) - - 314,910 38.7%
Total gross profit 441,749 47.2% (2,347) (3,132) - - 436,270 46.7% (a)
(a)
Research and development 87,788 9.4% 7,137 - - - 94,925 10.2% (a)
General and administrative 39,378 4.2% 5,972 - - - 45,350 4.8% (a)
Amortization of acquisition-related intangible assets - 0.0% - 292 (b) - - 292 0.0%
Other income (expense) 10,872 1.2% - - (13,410) (c) - (2,538) -0.3%

Provision for income taxes 98,112 10.5% (5,352) (1,270) (4,970) (80,398) (d) 6,122 0.7%
Net income $ 175,511 18.8% $ (14,022) $ (2,154) $ (8,440) $ 80,398 $ 231,293 24.7%
(a) Percent of revenue calculations for cost of product revenues and product gross profit are based on product revenues only (license and royalty revenues are excluded).
(b) Amortization of acquisition-related intangible assets, primarily core and developed technology related to acquisitions of Matrix Semiconductor, Inc. (1/06) and MusicGremlin, Inc. (6/08).
(d) Income taxes associated with certain non-GAAP to GAAP adjustments.

Three months ended January 3, 2010
Product revenues $ 1,141,972 92.0% $ - $ - $ - $ - $ 1,141,972 92.0%
Total revenues 1,241,591 100.0% - - - - 1,241,591 100.0%
Cost of product revenues 632,700 55.4% (a) 5,260 (b) - - - 637,960 55.9%
Amortization of acquisition-related intangible assets - 0.0% (a) - 3,133 (c) - - 3,133 0.2%
Total cost of product revenues 632,700 55.4% (a) 5,260 3,133 - - 641,093 56.1%
Total gross profit 608,891 49.0% (5,260) (3,133) - - 600,498 48.4% (a)
(a)
Research and development 97,020 7.8% 14,058 (b) - - - 111,078 8.9% (a)
Sales and marketing 56,383 4.5% 8,094 (b) - - - 64,477 5.2%
General and administrative 38,958 3.2% 10,090 (b) - - - 49,048 4.1% (a)
Amortization of acquisition-related intangible assets - 0.0% - 292 (c) - - 292 0.0%
Restructuring and other (727) -0.1% - - - - (727) -0.1%
Other income (expense) 15,885 1.3% - - (14,959) (d) - 926 0.1%

Provision for income taxes 155,931 12.6% (10,213) (1,342) (5,837) (100,788) (e) 37,751 3.1%
Net income $ 277,211 22.3% $ (27,289) $ (2,083) $ (9,122) $ 100,788 $ 339,505 27.3%
(b) Share-based compensation expense. The fourth quarter and full fiscal year 2009 include a one-time cumulative adjustment of $16.2 million to increase share-based compensation due to the way in which the Company's third-party software
(c) Amortization of acquisition-related intangible assets, primarily core and developed technology related to acquisitions of Matrix Semiconductor, Inc. (1/06) and MusicGremlin, Inc. (6/08).
(e) Income taxes associated with certain non-GAAP to GAAP adjustments.

For the year ended January 3, 2010
Product revenues $ 3,154,314 88.4% $ - $ - $ - $ - $ 3,154,314 88.4%
Total revenues 3,566,806 100.0% - - - - 3,566,806 100.0%
Cost of product revenues 2,257,224 71.6% (a) 12,427 (b) - - - 2,269,651 72.0%
Amortization of acquisition-related intangible assets - 0.0% (a) - 12,529 (c) - - 12,529 0.4%
Total cost of product revenues 2,257,224 71.6% (a) 12,427 12,529 - - 2,282,180 72.4%
Total gross profit 1,309,582 36.7% (12,427) (12,529) - - 1,284,626 36.0% (a)
(a)
Research and development 347,759 9.7% 36,399 (b) - - - 384,158 10.8% (a)
Sales and marketing 189,267 5.3% 19,247 (b) - - - 208,514 5.8%
General and administrative 143,872 4.1% 27,487 (b) - - - 171,359 4.8% (a)
Amortization of acquisition-related intangible assets - 0.0% - 1,167 (c) - - 1,167 0.0%
Restructuring and other 38 0.0% - - - - 38 0.0%
Total operating expenses 680,936 19.1% 83,133 1,167 - - 765,236 21.4%
Other income (expense) 38,865 1.1% - - (54,454) (d) - (15,589) -0.5%

Provision for income taxes 240,304 6.7% (26,251) (5,150) (20,475) (99,937) (e) 88,491 2.5%
Net income $ 427,207 12.0% $ (69,309) $ (8,546) $ (33,979) $ 99,937 $ 415,310 11.6%
(b) Share-based compensation expense. The fourth quarter and full fiscal year 2009 include a one-time cumulative adjustment of $16.2 million to increase share-based compensation due to the way in which the Company's third-party software
(c) Amortization of acquisition-related intangible assets, primarily core and developed technology related to acquisitions of Matrix Semiconductor, Inc. (1/06) and MusicGremlin, Inc. (6/08).
(e) Income taxes associated with certain non-GAAP to GAAP adjustments.

SUMMARY OF Q1 2010 AND FISCAL YEAR 2010
FORWARD NON-GAAP AND GAAP GUIDANCE
Provided on February 26, 2010 Investor Day Meeting (1)
(in millions, except for percentages)
Q1 2010 Fiscal Year 2010
Non-GAAP GAAP Non-GAAP GAAP
Product Revenue $845 - $910 $785 - $870 $3,640 - $4,080 $3,640 - $4,080
License & Royalty Revenue $80 - $ 90 $80 - $90 $320 - $360 $320 - $360
Total Revenue $925 - $1,000 $875 - $950 $4,000 - $4,400 $4,000 - $4,400
Product Gross Margin (2) (3) 34% +/- 2 points 33% +/- 2 points 31% +/- 3 points 30% +/- 3 points
Total Gross Margin 40% +/- 2 points 39% +/- 2 points 37% +/- 3 points 36% +/- 3 points
(4)
Operating Expenses $175 - $185 $190 - $205 $725 - $750 $785 - $830
(5)
Other Income (Expense) $10 ($4) $40 ($18)
(6) (6)
Tax Rate 37% 37%
(1) The information herein is qualified by and subject to the disclaimer, regarding forward-looking language statements,
that is included on our SanDisk Investor Relations web page at www.sandisk.com/ir.
(2)
Product gross margin reflects product revenues less total cost of product revenues.
Explanation of Difference Between Non-GAAP and GAAP:

(3)
Non-GAAP total cost of product revenues excludes estimated share-based compensation expenses and amortization
of acquisition-related intangible assets.
(4)
Non-GAAP operating expenses excludes estimated share-based compensation expenses and amortization of
acquisition-related intangible assets.
(5)
Non-GAAP excludes incremental interest expense relating to the non-cash economic interest expense associated with
the Company's cash-settled convertible debt.
(6)
Due to a partial valuation allowance on net deferred tax assets, no estimate of GAAP tax provision rate is possible at
this time.
RECONCILATION OF NON-GAAP TO GAAP FOR LONG-TERM
FINANCIAL MODEL
Provided on February 26, 2010 Investor Day Meeting
LTFM
Long-Term
Target
Financial Adjustments
Model To Reconcile
Non-GAAP To GAAP (1) GAAP
Revenue
Revenue Growth Y/Y
Product Revenue 92% - 93% - 92% - 93%

L&R Revenue 7% - 8% - 7% - 8%
Total Revenue 100% - 100%
Product Gross Margin 30% - 36% (1%) 29% - 35%

Total Gross Margin 35% - 41% (1%) 34% - 40%
R&D 7% - 9% 1% 8% - 9%
S&M ~5% 1% ~6%
G&A ~3% 1% ~4%
Oper Expenses 15% - 17% 2% 17% - 19%
Oper Income 20% - 24% 3% 17% - 21%
(1)
Estimated stock compensation expense and amortization of
acquisition-related intangible assets.

SanDisk, the SanDisk logo, CompactFlash, SanDisk Extreme, SanDisk Ultra and Sansa are trademarks of
SanDisk Corporation, registered in the United States and other countries. iNAND, SanDisk Extreme Pro, SanDisk
pSSD, and slotRadio mark and logo are trademarks of SanDisk Corporation. The SD, SDHC, SDXC, microSD,
microSDHC and miniSD marks and logos are trademarks of SD-3C, LLC. Memory Stick, Memory Stick Micro M2
and Memory Stick PRO marks and logos are trademarks and registered trademarks of Sony Corporation. Other
brand names mentioned herein are for identification purposes only and may be trademarks of their respective
holder(s).
* Read/Write performance based on internal testing; performance may vary depending upon host device.
1 megabyte (MB) = 1 million bytes; 1 gigabyte (GB) = 1 billion bytes. slotRadio cards contain songs pre-
programmed in music playlists for unlimited playback with slotRadio-compatible devices only. Visit slotRadio.org
for slotRadio compatible devices. Much like radio, these songs are played in sequence and cannot be rewound or
rearranged, yet individual songs can be skipped as often as you want. Song and playlist files cannot be copied or
viewed (for example on a PC). slotRadio content is subject to change. Titles feature songs from Billboard and
other music charts.
© 2010 SanDisk Corporation. All rights reserved.

SanDisk-2010 Investor Report

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INVESTOR DAY

FEBRUARY 26, 2010

SANJAY MEHROTRA DAN INBAR JUDY BRUNER

SHORT BREAK ELLIOT BROADWIN Q&A

Page 2 Investor Day | February 26, 2010

Page 3 Investor Day | February 26, 2010

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IN THE COMING DECADE,

Page 5 Investor Day | February 26, 2010

Page 6 Investor Day | February 26, 2010

 Remarkable turnaround for SanDisk

Page 7 Investor Day | February 26, 2010

Page 8 Investor Day | February 26, 2010

WE EXPECT TO SHIP MORE THAN

Page 9 Investor Day | February 26, 2010

2000–2009: DIGITAL CONSUMER REVOLUTION

Page 11 Investor Day | February 26, 2010

Page 12 Investor Day | February 26, 2010

Page 13 Investor Day | February 26, 2010

Gigabytes Sold (Y/Y Growth Rate)

Page 14 Investor Day | February 26, 2010

Page 15 Investor Day | February 26, 2010

2005–2009: 45%-55% annual cost reductions;

2010–2013: 25%-35% annual cost reductions;

Page 16 Investor Day | February 26, 2010

Source: SanDisk estimate 2010; ITRS 2008

Page 17 Investor Day | February 26, 2010

Page 18 Investor Day | February 26, 2010

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Page 20 Investor Day | February 26, 2010

Page 21 Investor Day | February 26, 2010

• We believe that growing demand should drive a healthy industry-wide

Page 22 Investor Day | February 26, 2010

Page 23 Investor Day | February 26, 2010

Page 24 Investor Day | February 26, 2010

Page 26 Investor Day | February 26, 2010

2006: Inflection Point

Notebook PCs Smartphones Desktop PCs

NAND LCD Baseband AP Camera Module DRAM Wifi RF

Page 28 Investor Day | February 26, 2010

Page 29 Investor Day | February 26, 2010

Music Video Photos Apps / Documents Shopping / Stuff

User Generated Content Professional Content

• SMARTPHONE = ―NEW PC‖ FLASH SSD

• ―MOBILE INTERNET IN EARLY INNINGS, WILL BE BIGGER THAN

• CLOUD COMPUTING: LAST NODE ON NETWORK, IN YOUR

• HIGHLY SCALED FLASH GETTING HARD TO DO WELL,

Page 32 Investor Day | February 26, 2010

Page 33 Investor Day | February 26, 2010

SanDisk well positioned in all these areas due to its Vertically

Page 34 Investor Day | February 26, 2010

SANDISK PRODUCT REVENUE MIX

Retail OEM Retail OEM

• Expanded OEM channels and customers

Page 35 Investor Day | February 26, 2010

• 242,000 storefronts world wide (Retail)

Page 36 Investor Day | February 26, 2010

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Page 39 Investor Day | February 26, 2010

Embedded Bundled Bundled Aftermarket Aftermarket

Page 40 Investor Day | February 26, 2010

Page 41 Investor Day | February 26, 2010